Document:

Exhibit 4.2

                              GEORGIA POWER COMPANY

                                       TO

                              THE BANK OF NEW YORK,
                                    TRUSTEE.

                      TWENTY-SEVENTH SUPPLEMENTAL INDENTURE

                          DATED AS OF DECEMBER 13, 2006

                                  $150,000,000

                SERIES 2006A 5.65% SENIOR INSURED QUARTERLY NOTES

                              DUE DECEMBER 15, 2040

<PAGE>

                              TABLE OF CONTENTS(1)

                                                                           PAGE

ARTICLE 1....................................................................1

    Series 2006A Senior Notes................................................1
    SECTION 101.  Establishment..............................................1
    SECTION 102.  Definitions................................................2
    SECTION 103.  Payment of Principal and Interest..........................3
    SECTION 104.  Denominations..............................................4
    SECTION 105.  Global Securities..........................................4
    SECTION 106.  Transfer...................................................4
    SECTION 107.  Redemption at the Company's Option.........................4
    SECTION 108.  Redemption Upon Death of a Beneficial Owner................5

ARTICLE 2....................................................................8

    Special Insurance Provisions.............................................8
    SECTION 201.  Supplemental Indentures....................................8
    SECTION 202.  Events of Default and Remedies.............................8
    SECTION 203.  Insurance Policy Payment Procedures........................8
    SECTION 204.  Application  of Term  "Outstanding"  to Series 2006A
             Notes..........................................................10
    SECTION 205.  Insurer as Third Party Beneficiary........................10
    SECTION 206.  Concerning the Special Insurance Provisions...............10

ARTICLE 3...................................................................10

    Miscellaneous Provisions................................................10
    SECTION 301.  Recitals by Company.......................................10
    SECTION 302.  Ratification and Incorporation of Original Indenture......10
    SECTION 303.  Executed in Counterparts..................................10

EXHIBIT A............................................Form of Series 2006A Note

EXHIBIT B........................................Certificate of Authentication

(1)This Table of Contents does not constitute part of the Indenture or have any
bearing upon the interpretation of any of its terms and provisions.

<PAGE>

     THIS TWENTY-SEVENTH SUPPLEMENTAL INDENTURE is made as of the 13th day of
December, 2006, by and between GEORGIA POWER COMPANY, a Georgia corporation, 241
Ralph McGill Boulevard, N.E., Atlanta, Georgia 30308-3374 (the "Company"), and
THE BANK OF NEW YORK, a New York banking corporation, 4 New York Plaza, New
York, New York 10004 (the "Trustee").

                              W I T N E S S E T H:

     WHEREAS, the Company has heretofore entered into a Senior Note Indenture,
dated as of January 1, 1998 (the "Original Indenture"), with The Bank of New
York (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase
Manhattan Bank)), as heretofore supplemented;

     WHEREAS, the Original Indenture is incorporated herein by this reference
and the Original Indenture, as heretofore supplemented and as further
supplemented by this Twenty-Seventh Supplemental Indenture, is herein called the
"Indenture";

     WHEREAS, under the Original Indenture, a new series of Senior Notes may at
any time be established by the Board of Directors of the Company in accordance
with the provisions of the Original Indenture and the terms of such series may
be described by a supplemental indenture executed by the Company and the
Trustee;

     WHEREAS, the Company proposes to create under the Indenture a new series of
Senior Notes;

     WHEREAS, additional Senior Notes of other series hereafter established,
except as may be limited in the Original Indenture as at the time supplemented
and modified, may be issued from time to time pursuant to the Indenture as at
the time supplemented and modified; and

     WHEREAS, all conditions necessary to authorize the execution and delivery
of this Twenty-Seventh Supplemental Indenture and to make it a valid and binding
obligation of the Company have been done or performed.

     NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as follows:

                                    ARTICLE 1

                            Series 2006A Senior Notes

     SECTION 101. Establishment. There is hereby established a new series of
Senior Notes to be issued under the Indenture, to be designated as the Company's
Series 2006A 5.65% Senior Insured Quarterly Notes due December 15, 2040 (the
"Series 2006A Notes").

     There are to be authenticated and delivered $150,000,000 principal amount
of Series 2006A Notes, and such principal amount of the Series 2006A Notes may
be increased from time to time pursuant to Section 301 of the Original
Indenture. All Series 2006A Notes need not be issued at the same time and such
series may be reopened at any time, without the consent of any Holder, for
issuances of additional Series 2006A Notes. Any such additional Series 2006A
Notes will have the same interest rate, maturity and other terms, including the
benefit of the Policy (appropriately increased to cover the principal amount of
and interest due on the additional Series 2006A Notes), as those initially
issued. No Series 2006A Notes shall be authenticated and delivered in excess of
the principal amount as so increased, except as provided by Sections 203, 303,
304, 907 or 1107 of the Original Indenture. The Series 2006A Notes shall be
issued in definitive fully registered form.

     The Series 2006A Notes shall be issued in the form of one or more Global
Securities in substantially the form set out in Exhibit A hereto. The Depositary
with respect to the Series 2006A Notes shall be The Depository Trust Company.

     The form of the Trustee's Certificate of Authentication for the Series
2006A Notes shall be in substantially the form set forth in Exhibit B hereto.

        Each Series 2006A Note shall be dated the date of authentication
thereof and shall bear interest from the date of original issuance thereof or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for.

     SECTION 102. Definitions. The following defined terms used herein shall,
unless the context otherwise requires, have the meanings specified below.
Capitalized terms used herein for which no definition is provided herein shall
have the meanings set forth in the Original Indenture.

     "Beneficial Owner" has the meaning set forth in Section 108 hereof.

     "Initial Period" has the meaning set forth in Section 108 hereof.

     "Insurer" means XL Capital Assurance Inc., a New York stock insurance
corporation.

     "Interest Payment Dates" means March 15, June 15, September 15 and December
15 of each year, commencing March 15, 2007.

     "Original Issue Date" means December 13, 2006.

     "Participants" has the meaning set forth in Section 108 hereof.

     "Policy" means the financial guaranty insurance policy issued by the
Insurer with respect to payments due for principal of and interest on the Series
2006A Notes as provided in such policy.

      "Redemption Request" has the meaning set forth in Section 108 hereof.

     "Regular Record Date" means, with respect to each Interest Payment Date,
the close of business on the 15th calendar day preceding such Interest Payment
Date (whether or not a Business Day).

     "Representatives" has the meaning set forth in Section 108 hereof.

     "Stated Maturity" means December 15, 2040.

     "Subsequent Period" has the meaning set forth in Section 108 hereof.

     SECTION 103. Payment of Principal and Interest. The principal of the Series
2006A Notes shall be due at Stated Maturity (unless earlier redeemed). The
unpaid principal amount of the Series 2006A Notes shall bear interest at the
rate of 5.65% per annum until paid or duly provided for. Interest shall be paid
quarterly in arrears on each Interest Payment Date to the Person in whose name
the Series 2006A Notes are registered on the Regular Record Date for such
Interest Payment Date, provided that interest payable at the Stated Maturity of
principal or on a Redemption Date as provided herein will be paid to the Person
to whom principal is payable. Any such interest that is not so punctually paid
or duly provided for will forthwith cease to be payable to the Holders on such
Regular Record Date and may either be paid to the Person or Persons in whose
name the Series 2006A Notes are registered at the close of business on a Special
Record Date for the payment of such defaulted interest to be fixed by the
Trustee, notice whereof shall be given to Holders of the Series 2006A Notes not
less than ten (10) days prior to such Special Record Date, or be paid at any
time in any other lawful manner not inconsistent with the requirements of any
securities exchange, if any, on which the Series 2006A Notes shall be listed,
and upon such notice as may be required by any such exchange, all as more fully
provided in the Original Indenture.

     Payments of interest on the Series 2006A Notes will include interest
accrued to but excluding the respective Interest Payment Dates. Interest
payments for the Series 2006A Notes shall be computed and paid on the basis of a
360-day year of twelve 30-day months. In the event that any date on which
interest is payable on the Series 2006A Notes is not a Business Day, then a
payment of the interest payable on such date will be made on the next succeeding
day that is a Business Day (and without any interest or other payment in respect
of any such delay), with the same force and effect as if made on the date the
payment was originally payable.

     Payment of the principal and interest due at the Stated Maturity or earlier
redemption of the Series 2006A Notes shall be made upon surrender of the Series
2006A Notes at the Corporate Trust Office of the Trustee. The principal of and
interest on the Series 2006A Notes shall be paid in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts. Payments of interest (including interest on any
Interest Payment Date) will be made, subject to such surrender where applicable,
at the option of the Company, (i) by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register or (ii)
by wire transfer or other electronic transfer at such place and to such account
at a banking institution in the United States as may be designated in writing to
the Trustee at least sixteen (16) days prior to the date for payment by the
Person entitled thereto.

     SECTION 104. Denominations. The Series 2006A Notes may be issued in the
denominations of $1,000, or any integral multiple thereof.

     SECTION 105. Global Securities. The Series 2006A Notes will be issued in
the form of one or more Global Securities registered in the name of the
Depositary (which shall be The Depository Trust Company) or its nominee. Except
under the limited circumstances described below, Series 2006A Notes represented
by one or more Global Securities will not be exchangeable for, and will not
otherwise be issuable as, Series 2006A Notes in definitive form. The Global
Securities described above may not be transferred except by the Depositary to a
nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or to a successor Depositary or its nominee.

     Owners of beneficial interests in such a Global Security will not be
considered the Holders thereof for any purpose under the Indenture, and no
Global Security representing a Series 2006A Note shall be exchangeable, except
for another Global Security of like denomination and tenor to be registered in
the name of the Depositary or its nominee or to a successor Depositary or its
nominee. The rights of Holders of such Global Security shall be exercised only
through the Depositary.

     Subject to the procedures of the Depositary, Global Security shall be
exchangeable for Series 2006A Notes registered in the names of persons other
than the Depositary or its nominee only if (i) the Depositary notifies the
Company that it is unwilling or unable to continue as a Depositary for such
Global Security and no successor Depositary shall have been appointed by the
Company, or if at any time the Depositary ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended, at a time when
the Depositary is required to be so registered to act as such Depositary and no
successor Depositary shall have been appointed by the Company, in each case
within 90 days after the Company receives such notice or becomes aware of such
cessation, (ii) the Company in its sole discretion determines that such Global
Security shall be so exchangeable, or (iii) there shall have occurred an Event
of Default with respect to the Series 2006A Notes. Any Global Security that is
exchangeable pursuant to the preceding sentence shall be exchangeable for Series
2006A Notes registered in such names as the Depositary shall direct.

     SECTION 106. Transfer. No service charge will be made for any transfer or
exchange of Series 2006A Notes, but payment will be required of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
therewith.

     The Company shall not be required (a) to issue, transfer or exchange any
Series 2006A Notes, except to the Insurer, during a period beginning at the
opening of business fifteen (15) days before the day of the mailing of a notice
pursuant to Section 1104 of the Original Indenture identifying the serial
numbers of the Series 2006A Notes to be called for redemption, and ending at the
close of business on the day of the mailing, or (b) to issue, transfer or
exchange any Series 2006A Notes theretofore selected for redemption in whole or
in part, except the unredeemed portion of any Series 2006A Note redeemed in
part.

     SECTION 107. Redemption at the Company's Option. The Series 2006A Notes
shall be subject to redemption at the option of the Company, in whole or in
part, without premium or penalty, at any time or from time to time on or after
December 15, 2011, at a Redemption Price equal to 100% of the principal amount
to be redeemed plus accrued but unpaid interest to the Redemption Date.

     In the event of redemption of the Series 2006A Notes in part only, a new
Series 2006A Note or Notes for the unredeemed portion will be issued in the name
or names of the Holders thereof upon the surrender thereof.

     The Series 2006A Notes will not have a sinking fund.

     Notice of redemption shall be given as provided in Section 1104 of the
Original Indenture.

     Any redemption of less than all of the Series 2006A Notes shall, with
respect to the principal thereof, be divisible by $1,000.

     SECTION 108. Redemption Upon Death of a Beneficial Owner. Unless the Series
2006A Notes have been declared due and payable prior to the Stated Maturity by
reason of an Event of Default, or have been previously redeemed or otherwise
repaid, the Representative (as hereinafter defined) of a deceased Beneficial
Owner (as hereinafter defined) of the Series 2006A Notes has the right, on or
after December 15, 2011, to request redemption prior to the Stated Maturity of
all or part of his or her interest in such Series 2006A Notes, and the Company
will redeem the same, subject to the limitations that the Company will not be
obligated to redeem, during the period from December 15, 2011 through and
including December 15, 2012 (the "Initial Period"), and, during any twelve-month
period that ends on and includes each December 15 thereafter (each such
twelve-month period being hereinafter referred to as a "Subsequent Period"), (i)
on behalf of a deceased Beneficial Owner any interest in the Series 2006A Notes
which exceeds $25,000 aggregate principal amount or (ii) interests in the Series
2006A Notes exceeding $3,000,000 in aggregate principal amount. A request for
redemption may be initiated by the Representative of a deceased Beneficial Owner
at any time, on or after December 15, 2011, and in any principal amount.

     The Company may, at its option, redeem interests of any deceased Beneficial
Owner in the Series 2006A Notes in the Initial Period or any Subsequent Period
in excess of the $25,000 limitation. Any such redemption by the Company, to the
extent that it exceeds the $25,000 limitation for any deceased Beneficial Owner,
shall not be included in the computation of the $3,000,000 aggregate limitation
for the Series 2006A Notes for such Initial Period and for such Subsequent
Period or for any succeeding Subsequent Period. The Company may, at its option,
redeem interests of deceased Beneficial Owners in the Series 2006A Notes in the
Initial Period or in any Subsequent Period in an aggregate principal amount
exceeding the $3,000,000 aggregate limitation. Any such redemption by the
Company, to the extent it exceeds the $3,000,000 aggregate limitation, shall not
reduce the $3,000,000 aggregate limitation for any succeeding Subsequent Period.
On any determination by the Company to redeem Series 2006A Notes in excess of
the $25,000 limitation or the $3,000,000 aggregate limitation, such Series 2006A
Notes shall be redeemed in the order of the receipt of Redemption Requests (as
hereinafter defined) by the Trustee.

     A request for redemption of an interest in the Series 2006A Notes may be
initiated by the personal representative or other person authorized to represent
the estate of the deceased Beneficial Owner or from a surviving joint tenant(s)
or tenant(s) by the entirety or the trustee of a trust (each, a
"Representative"). A Representative may initiate a request for redemption at any
time and in any principal amount, provided that the principal amount is in
integral multiples of $1,000. The Representative shall deliver its request to
the Participant (as hereinafter defined) through whom the deceased Beneficial
Owner owned such interest, in form satisfactory to the Participant, together
with evidence of the death of the Beneficial Owner, evidence of the authority of
the Representative satisfactory to the Participant, any waivers, notices or
certificates as may be required under applicable state or federal law and any
other evidence of the right to such redemption as the Participant requires.
Subject to the rules and arrangements applicable to the Depositary, the
Participant will then deliver to the Depositary a request for redemption
substantially in the form attached to the Series 2006A Notes as Annex A (a
"Redemption Request"). The Depositary will, upon receipt of a Redemption
Request, forward the same to the Trustee. The Trustee is required to maintain
records with respect to Redemption Requests received by it, including the date
of receipt, the name of the Participant filing the Redemption Request and the
status of each Redemption Request with respect to the $25,000 limitation and the
$3,000,000 aggregate limitation. The Trustee will promptly file with the Company
each Redemption Request it receives, together with the information regarding the
eligibility of the Redemption Request with respect to the $25,000 limitation and
the $3,000,000 aggregate limitation. The Company, the Depositary and the Trustee
may conclusively assume, without independent investigation, that the statements
contained in each Redemption Request are true and correct and shall have no
responsibility (a) for reviewing any documents submitted to the Participant by
the Representative or (b) for determining whether the applicable decedent is in
fact the Beneficial Owner of the interest in the Series 2006A Notes to be
redeemed or is in fact deceased and whether the Representative is duly
authorized to request redemption on behalf of the applicable Beneficial Owner.

     Subject to the $25,000 limitation and the $3,000,000 aggregate limitation,
on or after December 15, 2011, the Company will, after the death of any
Beneficial Owner, redeem the interest of such Beneficial Owner in the Series
2006A Notes on the next Interest Payment Date occurring not less than 30 days
following receipt by the Company of a Redemption Request from the Trustee. If
Redemption Requests exceed the aggregate principal amount of interests in Series
2006A Notes required to be redeemed during the Initial Period or any Subsequent
Period, then such excess Redemption Requests will be applied, in the order
received by the Trustee to successive Subsequent Periods, regardless of the
number of Subsequent Periods required to redeem such interests. The Company may,
at any time, notify the Trustee that it will redeem on the next Interest Payment
Date not less than 30 days thereafter, all or any lesser amount of Series 2006A
Notes for which Redemption Requests have been received but which are not then
eligible for redemption by reason of the $25,000 limitation or the $3,000,000
aggregate limitation. Any Series 2006A Notes so redeemed shall be redeemed in
the order of receipt of Redemption Requests by the Trustee.

     The price to be paid by the Company for the Series 2006A Notes to be
redeemed pursuant to a Redemption Request is 100% of the principal amount
thereof plus accrued and unpaid interest to the date of payment. Subject to
arrangements with the Depositary, payment for interests in the Series 2006A
Notes to be redeemed shall be made to the Depositary upon presentation of the
Series 2006A Notes to the Trustee for redemption in the aggregate principal
amount specified in the Redemption Requests submitted to the Trustee by the
Depositary which are to be fulfilled in connection with such payment. The
principal amount of any Series 2006A Notes acquired or redeemed by the Company
other than by redemption at the option of any Representative of a deceased
Beneficial Owner pursuant to this Section 108 shall not be included in the
computation of either the $25,000 limitation or the $3,000,000 aggregate
limitation for the Initial Period or any Subsequent Period.

     For purposes of this section, a "Beneficial Owner" means the person who has
the right to sell, transfer or otherwise dispose of an interest in a Series
2006A Note and the right to receive the proceeds therefrom, as well as the
interest and principal payable to the Holder thereof. In general, a
determination of beneficial ownership in the Series 2006A Notes will be subject
to the rules, regulations and procedures governing the Depositary and
institutions that have accounts with the Depositary or a nominee thereof
("Participants").

     For purposes of this section, an interest in a Series 2006A Note held in
tenancy by the entirety, by joint tenancy or by tenants in common will be deemed
to be held by a single Beneficial Owner, and the death of a tenant by the
entirety, joint tenant or tenant in common will be deemed the death of a
Beneficial Owner. The death of a person who, during his or her lifetime, was
entitled to substantially all of the rights of a Beneficial Owner of an interest
in the Series 2006A Notes will be deemed the death of the Beneficial Owner,
regardless of the recordation of such interest on the records of the
Participant, if such rights can be established to the satisfaction of the
Participant and the Company. Such interests shall be deemed to exist in typical
cases of nominee ownership, ownership under the Uniform Gifts to Minors Act or
the Uniform Transfers to Minors Act, community property or other similar joint
ownership arrangements, including individual retirement accounts or Keogh H.R.
10 plans maintained solely by or for the decedent or by or for the decedent and
any spouse, and trust and certain other arrangements where one person has
substantially all of the rights of a Beneficial Owner during such person's
lifetime.

     In the case of a Redemption Request that is presented on behalf of a
deceased Beneficial Owner and that has not been fulfilled at the time the
Company gives notice of its election to redeem the Series 2006A Notes in part
pursuant to Section 107 hereof, the Series 2006A Notes that are the subject of
such pending Redemption Request shall be redeemed pursuant to Section 107 hereof
prior to any other Series 2006A Notes.

     Any Redemption Request may be withdrawn by the person(s) presenting such
request upon delivery of a written request for such withdrawal given by the
Participant on behalf of such person(s) to the Depositary and by the Depositary
to the Trustee not less than 60 days prior to the Interest Payment Date on which
such Series 2006A Notes are eligible for redemption.

     The Company may, at its option, purchase any Series 2006A Notes for which
Redemption Requests have been received in lieu of redeeming such Series 2006A
Notes. Any Series 2006A Notes so purchased by the Company shall either be
reoffered for sale and sold within 180 days after the date of purchase or
presented to the Trustee for cancellation.

     During such time or times as the Series 2006A Notes are not represented by
a Global Security and are issued in definitive form, all references to
Participants and the Depositary, including the Depositary's governing rules,
regulations and procedures, shall be deemed deleted, all determinations which
under this Section the Participants are required to make shall be made by the
Company (including, without limitation, determining whether the applicable
decedent is in fact the Beneficial Owner of the interest in the Series 2006A
Notes to be redeemed or is in fact deceased and whether the Representative is
duly authorized to request redemption on behalf of the applicable Beneficial
Owner), all Redemption Requests, to be effective, shall be delivered by the
Representative to the Trustee, with a copy to the Company, and shall be in the
form of a Redemption Request (with appropriate changes mutually agreed to by the
Trustee and the Company to reflect the fact that such Redemption Request is
being executed by a Representative (including provision for signature
guarantees)) and, in addition to all documents that are otherwise required to
accompany a Redemption Request, shall be accompanied by the Series 2006A Note
that is the subject of such request and, if applicable, a properly executed
assignment or endorsement. If the record interest in the Series 2006A Note is
held by a nominee of the deceased Beneficial Owner, a certificate or letter from
such nominee attesting to the deceased's ownership of a beneficial interest in
the Series 2006A Note must also be delivered.

                                    ARTICLE 2

                          Special Insurance Provisions

         SECTION 201. Supplemental Indentures. The consent of the Insurer shall
be required with respect to any indenture or indentures supplemental to the
Original Indenture requiring the consent of the Holders of the Series 2006A
Notes pursuant to Section 902 of the Original Indenture.

         SECTION 202. Events of Default and Remedies. Subject to Section 107 of
the Original Indenture and to the Trust Indenture Act, including, without
limitation, Sections 316(a)(1) and 317(a) thereof, if an Event of Default occurs
and is continuing, the Insurer shall be entitled to control and direct the
enforcement of all rights and remedies granted to the Holders of the Series
2006A Notes or the Trustee for the benefit of the Holders of the Series 2006A
Notes under this Indenture, including, without limitation, (i) the right to
accelerate the principal of the Series 2006A Notes as provided in Section 502 of
the Original Indenture, and (ii) the right to annul any such declaration of
acceleration, and the Insurer shall also be entitled to approve any waiver of an
Event of Default with respect to the Series 2006A Notes, the obligation of the
Trustee to comply with any such direction to be subject to compliance with the
conditions set forth in Sections 512 and 603(e) of the Original Indenture (as if
references in those Sections to Holders were references to the Insurer) and the
protections provided to the Trustee by Section 601(c)(3) of the Original
Indenture shall be applicable with respect to any direction from the Insurer
given pursuant hereto (as if references in said Section to Holders were
references to the Insurer).

         SECTION 203. Insurance Policy Payment Procedures. (a) The Insurer will
make payments of principal or interest due on the Series 2006A Notes in
accordance with the Policy on or before the first Business Day next following
the date on which the Insurer shall have received notice of Nonpayment (as
defined in the Policy) from the Trustee.

         (b)      In the event of Nonpayment and notification thereof to the
Insurer, the Trustee shall make available to the Insurer the books kept by the
Trustee for the registration and for the registration of transfer of Series
2006A Notes as provided in this Indenture.

         (c)      The Trustee shall, at the time it provides notice to the
Insurer pursuant to (a) above, notify Holders of Series 2006A Notes entitled to
receive the payment of principal or interest thereon from the Insurer (i) as to
the fact of such entitlement, (ii) that the Insurer will remit to them all or a
part of the interest payments next coming due upon proof of Holder entitlement
to interest payments and delivery to the Insurer, in form satisfactory to the
Insurer, of an appropriate assignment of the Holder's right to payment, (iii)
that should they be entitled to receive full payment of principal from the
Insurer, they must surrender their Series 2006A Notes (along with an appropriate
instrument of assignment in form satisfactory to the Insurer to permit ownership
of such Series 2006A Notes to be registered in the name of the Insurer) for
payment to the Insurer, and not the Trustee or any paying agent, and (iv) that
should they be entitled to receive partial payment of principal from the
Insurer, they must surrender their Series 2006A Notes for payment thereon first
to the Trustee, who shall note on such Series 2006A Notes the portion of the
principal paid by the Trustee, and then, along with an appropriate instrument of
assignment in form satisfactory to the Insurer, to the Insurer, which will then
pay the unpaid portion of principal.

         (d)      In the event that the Trustee has notice that any payment of
principal of or interest on a Series 2006A Note which has become due for payment
(under the terms of the Policy) and which is made to a Holder by or on behalf of
the Company has been deemed a preferential transfer and theretofore recovered
from its Holder pursuant to the United States Bankruptcy Code by a trustee in
bankruptcy in accordance with a final, nonappealable order of a court having
competent jurisdiction, the Trustee shall, at the time the Insurer is notified
pursuant to (a) above, notify all Holders of the Series 2006A Notes that in the
event that any Holder's payment is so recovered, such Holder will be entitled to
payment from the Insurer to the extent of such recovery if sufficient funds are
not otherwise available, and the Trustee shall furnish to the Insurer its
records evidencing the payments of principal of and interest on the Series 2006A
Notes which have been made by the Trustee and subsequently recovered from
Holders and the dates on which such payments were made.

         (e)      In addition to those rights granted the Insurer under this
Indenture, the Insurer shall, to the extent it makes payment of principal of or
interest on Series 2006A Notes, become subrogated to the rights of the
recipients of such payments in accordance with the terms of the Policy, and to
evidence such subrogation (i) in the case of subrogation as to claims for past
due interest, the Trustee shall note the Insurer's rights as subrogee on the
registration books of the Company maintained by the Trustee upon receipt from
the Insurer of proof of the payment of interest thereon to the Holders of the
Series 2006A Notes, and (ii) in the case of subrogation as to claims for past
due principal, the Trustee shall note the Insurer's rights as subrogee on the
registration books of the Company maintained by the Trustee upon surrender of
the Series 2006A Notes by the Holders thereof together with proof of the payment
of principal thereof.

         SECTION 204. Application of Term "Outstanding" to Series 2006A Notes.
In the event that the principal and/or interest due on the Series 2006A Notes
shall be paid by the Insurer pursuant to the Policy, the Series 2006A Notes
shall remain Outstanding for all purposes of this Indenture, not be considered
defeased or otherwise satisfied and not be considered paid by the Company, and
the assignment and pledge of this Indenture and all covenants, agreements and
other obligations of the Company to the Holders of the Series 2006A Notes shall
continue to exist and shall run to the benefit of the Insurer, and the Insurer
shall be subrogated to the rights of such Holders to the extent of each such
payment.

         SECTION 205. Insurer as Third Party Beneficiary. To the extent that
this Indenture confers upon or gives or grants to the Insurer any right, remedy
or claim under or by reason of this Indenture, the Insurer is hereby explicitly
recognized as being a third-party beneficiary hereunder and may enforce any such
right, remedy or claim conferred, given or granted hereunder.

         SECTION 206. Concerning the Special Insurance Provisions. The
provisions of this Article 2 shall apply notwithstanding anything in this
Indenture to the contrary, but only so long as the Policy shall be in full force
and effect and the Insurer is not in default thereunder.

                                    ARTICLE 3

                            Miscellaneous Provisions

         SECTION 301. Recitals by Company. The recitals in this Twenty-Seventh
Supplemental Indenture are made by the Company only and not by the Trustee, and
all of the provisions contained in the Original Indenture in respect of the
rights, privileges, immunities, powers and duties of the Trustee shall be
applicable in respect of Series 2006A Notes and of this Twenty-Seventh
Supplemental Indenture as fully and with like effect as if set forth herein in
full.

         SECTION 302. Ratification and Incorporation of Original Indenture. As
heretofore supplemented and as supplemented hereby, the Original Indenture is in
all respects ratified and confirmed, and the Original Indenture as heretofore
supplemented and as supplemented by this Twenty-Seventh Supplemental Indenture
shall be read, taken and construed as one and the same instrument.

         SECTION 303. Executed in Counterparts. This Twenty-Seventh Supplemental
Indenture may be simultaneously executed in several counterparts, each of which
shall be deemed to be an original, and such counterparts shall together
constitute but one and the same instrument.

<PAGE>

                  IN WITNESS WHEREOF, each party hereto has caused this
instrument to be signed in its name and behalf by its duly authorized officers,
all as of the day and year first above written.

ATTEST:                        GEORGIA POWER COMPANY

By: /s/ Daniel Lowery          By: /s/ Cliff S. Thrasher
   --------------------------     --------------------------------------------
Name:    Daniel Lowery         Name:    Cliff S. Thrasher
Title:   Corporate Secretary   Title:   Executive Vice President,
                                        Chief Financial Officer and Treasurer

ATTEST:  .........             THE BANK OF NEW YORK, as Trustee

By: /s/ Francine Kincaid       By:  /s/ Carol Ng
   -------------------------      --------------------------------------------
Name:    Francine Kincaid      Name:    Carol Ng
Title:   Vice President                 Title:   Vice President

<PAGE>

                                    EXHIBIT A

                            FORM OF SERIES 2006A NOTE

<PAGE>

NO. ____                                                  CUSIP NO. 373334 GB 1

                              GEORGIA POWER COMPANY
                SERIES 2006A 5.65% SENIOR INSURED QUARTERLY NOTE
                              DUE DECEMBER 15, 2040

       Principal Amount:                      $____________

       Regular Record Date:                   15th  calendar day prior to
                                              Interest  Payment  Date  (whether
                                              or not a Business Day)

       Original Issue Date:                   December 13, 2006

       Stated Maturity:                       December 15, 2040

       Interest Payment Dates:                March 15, June 15, September 15
                                              and December 15

       Interest Rate:                         5.65% per annum

       Authorized Denominations:              $1,000 or any integral multiple
                                              thereof

       Initial Redemption Date:               December 15, 2011

         Georgia Power Company, a Georgia corporation (the "Company", which term
includes any successor corporation under the Indenture referred to on the
reverse hereof), for value received, hereby promises to pay to
_____________________, or registered assigns, the principal sum of
___________________________DOLLARS ($___________) on the Stated Maturity shown
above (or upon earlier redemption), and to pay interest thereon from the
Original Issue Date shown above, or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, quarterly in arrears on
each Interest Payment Date as specified above, commencing March 15, 2007, and on
the Stated Maturity (or upon earlier redemption) at the rate per annum shown
above until the principal hereof is paid or made available for payment and on
any overdue principal and on any overdue installment of interest. The interest
so payable, and punctually paid or duly provided for, on any Interest Payment
Date (other than an Interest Payment Date that is the Stated Maturity or on a
Redemption Date) will, as provided in such Indenture, be paid to the Person in
whose name this Note (the "Note") is registered at the close of business on the
Regular Record Date as specified above next preceding such Interest Payment
Date, provided that any interest payable at Stated Maturity or on any Redemption
Date will be paid to the Person to whom principal is payable. Except as
otherwise provided in the Indenture, any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this Note
is registered at the close of business on a Special Record Date for the payment
of such defaulted interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Notes of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange, if any, on which
the Notes of this series shall be listed, and upon such notice as may be
required by any such exchange, all as more fully provided in the Indenture.

         Payments of interest on this Note will include interest accrued to but
excluding the respective Interest Payment Dates. Interest payments for this Note
shall be computed and paid on the basis of a 360-day year of twelve 30-day
months. In the event that any date on which interest is payable on this Note is
not a Business Day, then payment of the interest payable on such date will be
made on the next succeeding day that is a Business Day (and without interest or
other payment in respect of any such delay), with the same force and effect as
if made on the date the payment was originally payable. A "Business Day" shall
mean any day other than a Saturday or a Sunday or a day on which banking
institutions in New York City are authorized or required by law or executive
order to remain closed or a day on which the Corporate Trust Office of the
Trustee is closed for business.

         Payment of the principal of and interest due at the Stated Maturity or
earlier redemption of the Series 2006A Notes shall be made upon surrender of the
Series 2006A Notes at the Corporate Trust Office of the Trustee. The principal
of and interest on the Series 2006A Notes shall be paid in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts. Payment of interest (including interest on
an Interest Payment Date) will be made, subject to such surrender where
applicable, at the option of the Company, (i) by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register or (ii) by wire transfer or other electronic transfer at such place and
to such account at a banking institution in the United States as may be
designated in writing to the Trustee at least 16 days prior to the date for
payment by the Person entitled thereto.

         XL Capital Assurance Inc. (the "Insurer"), New York, New York, has
delivered its financial guaranty insurance policy (the "Policy") with respect to
the scheduled payments due of principal of and interest on this Note to the
principal Corporate Trust Office of the Trustee. Said Policy is on file and
available for inspection at the principal Corporate Trust Office of the Trustee
and a copy thereof may be obtained from the Insurer or the Trustee.

         REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET
FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

         Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

                               GEORGIA POWER COMPANY

                               By:
                                  --------------------------------------
                               Title:

Attest:

Title:

                  {Seal of GEORGIA POWER COMPANY appears here}

<PAGE>

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Senior Notes referred to in the within-mentioned
Indenture.

                                       THE BANK OF NEW YORK,
                                       as Trustee

                                       By:
                                          -------------------------------------
                                                Authorized Signatory

<PAGE>

                             (Reverse Side of Note)

         This Note is one of a duly authorized issue of Senior Notes of the
Company (the "Notes"), issued and issuable in one or more series under a Senior
Note Indenture, dated as of January 1, 1998, as supplemented (the "Indenture"),
between the Company and The Bank of New York (as successor to JPMorgan Chase
Bank, N.A. (formerly known as The Chase Manhattan Bank)), Trustee (the
"Trustee," which term includes any successor trustee under the Indenture), to
which Indenture and all indentures incidental thereto reference is hereby made
for a statement of the respective rights, limitation of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Notes
issued thereunder and of the terms upon which said Notes are, and are to be,
authenticated and delivered. This Note is one of the series designated on the
face hereof as Series 2006A 5.65% Senior Insured Quarterly Notes due December
15, 2040 (the "Series 2006A Notes") which is unlimited in the aggregate
principal amount. Capitalized terms used herein for which no definition is
provided herein shall have the meanings set forth in the Indenture.

         The Company shall have the right, subject to the terms and conditions
of the Indenture, to redeem this Note at any time on or after December 15, 2011
at the option of the Company, without premium or penalty, in whole or in part,
at a Redemption Price equal to 100% of the principal amount to be redeemed plus
accrued but unpaid interest to the Redemption Date.

         Subject to the conditions and restrictions contained in the Indenture,
this Note may be redeemed in whole or in part at a Redemption Price equal to
100% of the principal amount to be redeemed plus accrued but unpaid interest to
the Redemption Date, at the request of the Representative of the deceased
beneficial owner of this Note pursuant to a Redemption Request attached hereto
as Annex A.

         In the event of redemption of this Note in part only, a new Note or
Notes of this series for the unredeemed portion hereof will be issued in the
name of the Holder hereof upon the surrender hereof. The Notes will not have a
sinking fund.

         If an Event of Default with respect to the Notes of this series shall
occur and be continuing, the principal of the Notes of this series may be
declared due and payable in the manner, with the effect and subject to the
conditions provided in the Indenture.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Notes of each series to be affected
under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of not less than a majority in principal amount of the Notes at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Notes of each series at the time Outstanding, on behalf of the Holders of
all Notes of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Note.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein prescribed.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registrable in the Security Register,
upon surrender of this Note for registration of transfer at the office or agency
of the Company for such purpose, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar and duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes of this series, of
authorized denominations and of like tenor and for the same aggregate principal
amount, will be issued to the designated transferee or transferees. No service
charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

         Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

         The Notes of this series are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Notes of this series are exchangeable for a like aggregate principal amount of
Notes of this series of a different authorized denomination, as requested by the
Holder surrendering the same upon surrender of the Note or Notes to be exchanged
at the office or agency of the Company.

         This Note shall be governed by, and construed in accordance with, the
internal laws of the State of New York.

<PAGE>

1730990_3.DOC
                                  ABBREVIATIONS

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

TEN COM- as tenants in          UNIF GIFT MIN ACT- _______ Custodian ________
         common                                    (Cust)            (Minor)
TEN ENT- as tenants by the
         entireties                          under Uniform Gifts to
JT TEN-  as joint tenants                          Minors Act
         with right of
         survivorship and                  ________________________
         not as tenants                            (State)
         in common

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

         FOR VALUE RECEIVED, the undersigned hereby sell(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 within Note and all rights thereunder, hereby irrevocably constituting and
appointing

agent to transfer said Note on the books of the Company, with full power of
substitution in the premises.

Dated:
       --------------------                 -----------------------------------

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within instrument in every particular without
alteration or enlargement, or any change whatever.

<PAGE>

                                     ANNEX A

                           FORM OF REDEMPTION REQUEST

                              Georgia Power Company
                Series 2006A 5.65% Senior Insured Quarterly Notes
                              due December 15, 2040
                           (the "Series 2006A Notes")

                              CUSIP NO. 373334 GB 1

         The undersigned, ____________________ (the "Participant"), does hereby
certify, pursuant to the provisions of that certain Senior Note Indenture, dated
as of January 1, 1998, as supplemented by the Twenty-Seventh Supplemental
Indenture, dated as of December 13, 2006 (the "Indenture") made by and between
Georgia Power Company (the "Company") and The Bank of New York (as successor to
JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), as
Trustee (the "Trustee"), to The Depository Trust Company (the "Depositary"), the
Company and the Trustee that:

         1.       [Name of deceased Beneficial Owner] is deceased.

         2.       [Name of deceased Beneficial Owner] had a $__________ interest
in the above referenced Series 2006A Notes.

         3.       [Name of Representative] is [Beneficial Owner's personal
representative/other person authorized to represent the estate of the Beneficial
Owner/surviving joint tenant/surviving tenant by the entirety/trustee of a
trust] of [Name of deceased Beneficial Owner] and has delivered to the
undersigned a request for redemption in form satisfactory to the undersigned,
requesting that $__________ principal amount of said Series 2006A Notes be
redeemed pursuant to said Indenture. The documents accompanying such request,
all of which are in proper form, are in all respects satisfactory to the
undersigned and [Name of Representative] is entitled to have the Series 2006A
Notes to which this Request relates redeemed.

         4.       The Participant holds the interest in the Series 2006A Notes
with respect to which this Request for Redemption is being made on behalf of
[Name of deceased Beneficial Owner].

         5.       The Participant hereby certifies that it will indemnify and
hold harmless the Depositary, the Trustee and the Company (including their
respective officers, directors, agents, attorneys and employees), against all
damages, loss, cost, expense (including reasonable attorneys' and accountants'
fees), obligations, claims or liability (collectively, the "Damages") incurred
by the indemnified party or parties as a result of or in connection with the
redemption of Series 2006A Notes to which this Request relates. The Participant
will, at the request of the Company, forward to the Company, a copy of the
documents submitted by [Name of Representative] in support of the request for
redemption.

     IN WITNESS WHEREOF, the undersigned has executed this Redemption Request as
of ____________, _____.

                                                  [PARTICIPANT NAME]

                                                  By:
                                                     ---------------------------
                                                  Name:
                                                       -------------------------
                                                  Title:
                                                        ------------------------

<PAGE>

                                    EXHIBIT B

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Senior Notes referred to in the within-mentioned
Indenture.

                                  THE BANK OF NEW YORK,
                                  as Trustee

                                  By:
                                     ------------------------------------------
                                           Authorized SignatoryUnassociated Document

     

    

      

      

      
        	 

      

      

      

      PHH
        MORTGAGE CAPITAL LLC,

      Depositor

       

       

      PHH
        MORTGAGE CORPORATION,

      Master
        Servicer

       

       

      CITIBANK
        N.A.,

      Trustee

       

       

      POOLING
        AND SERVICING AGREEMENT

       

      Dated
        as
        of November 1, 2006

       

      PHHMC
        Mortgage Pass-Through Certificates, Series 2006-4

       

      

      

      
        	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      TABLE
        OF
        CONTENTS

      

        
          
            	
                    ARTICLE
                      I 

                    DEFINITIONS

                     

                  
	
                    Section
                      1.01

                  	
                    Defined
                      Terms.

                  
	
                    Section
                      1.02

                  	
                    Accounting.

                     

                  
	
                    ARTICLE
                      II 

                    CONVEYANCE
                      OF MORTGAGE LOANS; ORIGINAL ISSUANCE OF CERTIFICATES

                     

                  
	
                    Section
                      2.01

                  	
                    Conveyance
                      of Mortgage Loans.

                  
	
                    Section
                      2.02

                  	
                    Acceptance
                      of Trust Fund by the Trustee.

                  
	
                    Section
                      2.03

                  	
                    Repurchase
                      or Substitution of Mortgage Loans by the Sellers- Assignment
                      of Interest
                      in Pledged Assets.

                  
	
                    Section
                      2.04

                  	
                    Representations,
                      Warranties and Covenants of the Master Servicer.

                  
	
                    Section
                      2.05

                  	
                    Representations
                      and Warranties of the Depositor.

                  
	
                    Section
                      2.06

                  	
                    Purpose
                      and Powers of the Trust.

                  
	
                    Section
                      2.07

                  	
                    Issuance
                      of Certificates.

                     

                  
	
                    ARTICLE
                      III 

                    ADMINISTRATION
                      AND SERVICING OF THE TRUST FUND

                     

                  
	
                    Section
                      3.01

                  	
                    Master
                      Servicer to Act as Master Servicer.

                  
	
                    Section
                      3.02

                  	
                    Sub-Servicing
                      Agreements Between the Master Servicer and
                      Sub-Servicers.

                  
	
                    Section
                      3.03

                  	
                    Successor
                      Sub-Servicers.

                  
	
                    Section
                      3.04

                  	
                    Liability
                      of the Master Servicer.

                  
	
                    Section
                      3.05

                  	
                    No
                      Contractual Relationship Between Sub-Servicers and Trustee
                      or
                      Certificateholders.

                  
	
                    Section
                      3.06

                  	
                    Assumption
                      or Termination of Sub-Servicing Agreements by Trustee.

                  
	
                    Section
                      3.07

                  	
                    Collection
                      of Certain Mortgage Loan Payments.

                  
	
                    Section
                      3.08

                  	
                    Sub-Servicing
                      Accounts.

                  
	
                    Section
                      3.09

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

                  
	
                    Section
                      3.10

                  	
                    Collection
                      Account and Distribution Account.

                  
	
                    Section
                      3.11

                  	
                    Withdrawals
                      from the Collection Account and Distribution Account.

                  
	
                    Section
                      3.12

                  	
                    Investment
                      of Funds in the Collection Account, Servicing Accounts and
                      the
                      Distribution Account.

                  
	
                    Section
                      3.13

                  	
                    Maintenance
                      of the Primary Insurance Policies; Collections
                      Thereunder.

                  
	
                    Section
                      3.14

                  	
                    Maintenance
                      of Hazard Insurance and Errors and Omissions and Fidelity
                      Coverage.

                  
	
                    Section
                      3.15

                  	
                    Enforcement
                      of Due-On-Sale Clauses; Assumption Agreements.

                  
	
                    Section
                      3.16

                  	
                    Realization
                      Upon Defaulted Mortgage Loans.

                  
	
                    Section
                      3.17

                  	
                    Trustee
                      to Cooperate; Release of Mortgage Files.

                  
	
                    Section
                      3.18

                  	
                    Servicing
                      Compensation.

                  
	
                    Section
                      3.19

                  	
                    Reports
                      to the Trustee; Collection Account Statements.

                  
	
                    Section
                      3.20

                  	
                    Annual
                      Statement as to Compliance.

                  
	
                    Section
                      3.21

                  	
                    Assessments
                      of Compliance and Attestation Reports.

                  
	
                    Section
                      3.22

                  	
                    Access
                      to Certain Documentation.

                  
	
                    Section
                      3.23

                  	
                    Title,
                      Management and Disposition of REO Property.

                  
	
                    Section
                      3.24

                  	
                    Obligations
                      of the Master Servicer in Respect of Prepayment Interest
                      Shortfalls.

                  
	
                    Section
                      3.25

                  	
                    Administration
                      of Buydown Funds.

                  
	
                    Section
                      3.26

                  	
                    Obligations
                      of the Master Servicer in Respect of Loan Rates and Monthly
                      Payments.

                     

                  
	
                    ARTICLE
                      IV 

                    PAYMENTS
                      TO CERTIFICATEHOLDERS

                     

                  
	
                    Section
                      4.01

                  	
                    Distribution
                      Account; Distributions.

                  
	
                    Section
                      4.02

                  	
                    Statements
                      to Certificateholders.

                  
	
                    Section
                      4.03

                  	
                    Remittance
                      Reports; Advances by the Master Servicer.

                  
	
                    Section
                      4.04

                  	
                    Allocation
                      of Realized Losses.

                  
	
                    Section
                      4.05

                  	
                    Information
                      Reports to Be Filed by the Master Servicer.

                  
	
                    Section
                      4.06

                  	
                    Compliance
                      with Withholding Requirements.

                  
	
                    Section
                      4.07

                  	
                    [Reserved].

                  
	
                    Section
                      4.08

                  	
                    Limited
                      Purpose Surety Bond.

                     

                  
	
                    ARTICLE
                      V 

                    THE
                      CERTIFICATES

                     

                  
	
                    Section
                      5.01

                  	
                    The
                      Certificates.

                  
	
                    Section
                      5.02

                  	
                    Registration
                      of Transfer and Exchange of Certificates.

                  
	
                    Section
                      5.03

                  	
                    Mutilated.
                      Destroyed. Lost or Stolen Certificates.

                  
	
                    Section
                      5.04

                  	
                    Persons
                      Deemed Owners.

                  
	
                    Section
                      5.05

                  	
                    Appointment
                      of Paying Agent.

                     

                  
	
                    ARTICLE
                      VI 

                    THE
                      MASTER SERVICER AND THE DEPOSITOR

                     

                  
	
                    Section
                      6.01

                  	
                    Liability
                      of the Master Servicer and the Depositor.

                  
	
                    Section
                      6.02

                  	
                    Merger
                      or Consolidation of or Assumption of the Obligations of the
                      Master
                      Servicer or the Depositor.

                  
	
                    Section
                      6.03

                  	
                    Limitation
                      on Liability of the Master Servicer and Others.

                  
	
                    Section
                      6.04

                  	
                    Master
                      Servicer Not to Resign.

                  
	
                    Section
                      6.05

                  	
                    Delegation
                      of Duties.

                     

                  
	
                    ARTICLE
                      VII 

                    DEFAULT

                     

                  
	
                    Section
                      7.01

                  	
                    Master
                      Servicer Events of Termination.

                  
	
                    Section
                      7.02

                  	
                    Trustee
                      to Act; Appointment of Successor.

                  
	
                    Section
                      7.03

                  	
                    Waiver
                      of Master Servicer Events of Termination.

                  
	
                    Section
                      7.04

                  	
                    Notification
                      to Certificateholders.

                  
	
                    Section
                      7.05

                  	
                    Survivability
                      of Master Servicer Liabilities.

                     

                  
	
                    ARTICLE
                      VIII 

                    THE
                      TRUSTEE

                     

                  
	
                    Section
                      8.01

                  	
                    Duties
                      of Trustee.

                  
	
                    Section
                      8.02

                  	
                    Certain
                      Matters Affecting the Trustee.

                  
	
                    Section
                      8.03

                  	
                    Trustee
                      Not Liable for Certificates or Mortgage Loans.

                  
	
                    Section
                      8.04

                  	
                    Trustee
                      May Own Certificates.

                  
	
                    Section
                      8.05

                  	
                    Master
                      Servicer to Pay Trustee Expenses; Trustee Fees.

                  
	
                    Section
                      8.06

                  	
                    Eligibility
                      Requirements for Trustee.

                  
	
                    Section
                      8.07

                  	
                    Resignation
                      or Removal of Trustee.

                  
	
                    Section
                      8.08

                  	
                    Successor
                      Trustee.

                  
	
                    Section
                      8.09

                  	
                    Merger
                      or Consolidation of Trustee.

                  
	
                    Section
                      8.10

                  	
                    Appointment
                      of Co-Trustee or Separate Trustee.

                  
	
                    Section
                      8.11

                  	
                    Limitation
                      of Liability.

                  
	
                    Section
                      8.12

                  	
                    Trustee
                      May Enforce Claims Without Possession of Certificates.

                  
	
                    Section
                      8.13

                  	
                    Suits
                      for Enforcement.

                  
	
                    Section
                      8.14

                  	
                    Waiver
                      of Bond Requirement.

                  
	
                    Section
                      8.15

                  	
                    Waiver
                      of Inventory. Accounting and Appraisal Requirement.

                  
	
                    Section
                      8.16

                  	
                    Right
                      of Trustee in Capacity of Certificate Registrar or Paying
                      Agent.

                  
	
                    Section
                      8.17

                  	
                    Periodic
                      Filings.

                  
	
                    Section
                      8.18

                  	
                    Intention
                      of the Parties and Interpretation.

                     

                  
	
                    ARTICLE
                      IX 

                    REMIC
                      ADMINISTRATION

                     

                  
	
                    Section
                      9.01

                  	
                    REMIC
                      Administration.

                  
	
                    Section
                      9.02

                  	
                    Prohibited
                      Transactions and Activities.

                  
	
                    Section
                      9.03

                  	
                    Master
                      Servicer and Trustee Indemnification.

                     

                  
	
                    ARTICLE
                      X 

                    TERMINATION

                     

                  
	
                    Section
                      10.01

                  	
                    Termination.

                  
	
                    Section
                      10.02

                  	
                    Additional
                      Termination Requirements.

                     

                  
	
                    ARTICLE
                      XI 

                    [RESERVED]

                     

                     

                  
	
                    ARTICLE
                      XII 

                    MISCELLANEOUS
                      PROVISIONS

                     

                  
	
                    Section
                      12.01

                  	
                    Amendment.

                  
	
                    Section
                      12.02

                  	
                    Recordation
                      of Agreement: Counterparts.

                  
	
                    Section
                      12.03

                  	
                    Limitation
                      on Rights of Certificateholders.

                  
	
                    Section
                      12.04

                  	
                    Governing
                      Law: Jurisdiction.

                  
	
                    Section
                      12.05

                  	
                    Notices.

                  
	
                    Section
                      12.06

                  	
                    Severability
                      of Provisions.

                  
	
                    Section
                      12.07

                  	
                    Article
                      and Section References.

                  
	
                    Section
                      12.08

                  	
                    Notice
                      to the Rating Agency.

                  
	
                    Section
                      12.09

                  	
                    Further
                      Assurances.

                  
	
                    Section
                      12.10

                  	
                    Benefits
                      of Agreement.

                  
	
                    Section
                      12.11

                  	
                    Acts
                          of Certificateholders.

                  
	 	 
	 	 
	 	 
	
                    EXHIBITS:

                  	 
	 	 
	
                    Exhibit
                      A

                  	
                    Form
                      of Class A Certificates

                  
	
                    Exhibit
                      B

                  	
                    [Reserved]

                  
	
                    Exhibit
                      C-1

                  	
                    Form
                      of Class R Certificates

                  
	
                    Exhibit
                      C-2

                  	
                    Form
                      of Class B Certificates

                  
	
                    Exhibit
                      D

                  	
                    Mortgage
                      Loan Schedule

                  
	
                    Exhibit
                      E

                  	
                    Form
                      of Request for Release

                  
	
                    Exhibit
                      F-1

                  	
                    Form
                      of Rule 144A Representation Letter

                  
	
                    Exhibit
                      F-2

                  	
                    Form
                      of Transferor Certificate

                  
	
                    Exhibit
                      F-3

                  	
                    Form
                      of Transferee Representation Letter

                  
	
                    Exhibit
                      F-4

                  	
                    Form
                      of Transfer Affidavit and Agreement and Form of Transferor
                      Affidavit

                  
	
                    Exhibit
                      G-1

                  	
                    Form
                      of ERISA Representation Letter (Class B-4, Class B-5 and Class
                      B-6)

                  
	
                    Exhibit
                      G-2

                  	
                    Form
                      of ERISA Representation Letter (Class A-3, Class A-8 and Class
                      A-9)

                  
	
                    Exhibit
                      H

                  	
                    Form
                      of Lost Note Affidavit

                  
	
                    Exhibit
                      I-1

                  	
                    Form
                      of Trustee’s Initial Certification

                  
	
                    Exhibit
                      I-2

                  	
                    Form
                      of Trustee’s Final Certification

                  
	
                    Exhibit
                      J

                  	
                    Mortgage
                      Loan Purchase Agreement

                  
	
                    Exhibit
                      K

                  	
                    Assignment,
                      Assumption and Recognition Agreement (Pledged Asset Servicing
                      Agreement)

                  
	
                    Exhibit
                      L

                  	
                    Planned
                      Principal Balances

                  
	
                    Exhibit
                      M

                  	
                    Form
                      of Form 10-K Certificate

                  
	
                    Exhibit
                      N

                  	
                    Form
                      of Back-up Certification to Form 10-K Certificate

                  
	
                    Exhibit
                      O

                  	
                    Servicing
                      Criteria to Be Addressed in Assessment of Compliance

                  
	
                    Exhibit
                      P

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

                  
	
                    Exhibit
                      Q

                  	
                    Transaction
                      Parties

                  

          

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      This
        Pooling and Servicing Agreement is dated as of November 1, 2006 (the
“Agreement”), among PHH MORTGAGE CAPITAL LLC, as depositor (the “Depositor”),
        PHH MORTGAGE CORPORATION, as master servicer (the “Master Servicer”) and
        CITIBANK, N.A., as trustee (the “Trustee”).

       

      PRELIMINARY
        STATEMENT:

       

      The
        Depositor intends to sell mortgage pass-through certificates (collectively,
        the
“Certificates”), to be issued hereunder in multiple classes, which in the
        aggregate will evidence the entire beneficial ownership interest in the Mortgage
        Loans (as defined herein). As provided herein, the Trustee will make, in
        accordance with Section 9.01, an election to treat the entire segregated
        pool of
        assets described in the definition of Trust Fund (as defined herein), and
        subject to this Agreement (including the Mortgage Loans), as two real estate
        mortgage investment conduits (each a “REMIC”) for federal income tax
        purposes.

       

      REMIC
        I

       

      The
        following table sets forth (or describes) the Class designation, Pass-Through
        Rate and Uncertificated Principal Balance, for each Class of REMIC I Regular
        Interest comprising the interests in REMIC I created hereunder:

       

       

      
        	
                REMIC
                  I Regular Interest

              	 	
                Uncertificated

                Principal
                  Balance

              	 	
                Uncertificated

                Pass-Through
                  Rate(1)

              	 	
                Assumed
                  Final

                Maturity
                  Date(2)

              	 
	
                A-1

              	 	
                $

              	
                15,459,431.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                A-2

              	 	
                $

              	
                493,386.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                A-3

              	 	
                $

              	
                1,125,865.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                A-4

              	 	
                $

              	
                31,959,229.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                A-6

              	 	
                $

              	
                52,835,718.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                A-7

              	 	
                $

              	
                10,002,821.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                A-8

              	 	
                $

              	
                2,955,739.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                A-9

              	 	
                $

              	
                16,804,740.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                R-II
                  Interest

              	 	
                $

              	
                100.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                B-1

              	 	
                $

              	
                6,371,797.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                B-2

              	 	
                $

              	
                770,217.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                B-3

              	 	
                $

              	
                490,138.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                B-4

              	 	
                $

              	
                280,079.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                B-5

              	 	
                $

              	
                280,079.00

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 
	
                B-6

              	 	
                $

              	
                210,060.07

              	 	
                Variable
                  Rate

              	 	
                December
                  18, 2036

              	 

      

      

      
        	
                (1)

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

              
	 	 
	
                (2)

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

              

      

      

      

      

      REMIC
        II

       

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

       

      
        	
                 Class

              	 	
                Original
                  Certificate

                Principal
                  Balance
                  or Original Notional Amount

              	 	
                Initial
                  Pass-

                Through
                  Rate

              	 	
                Assumed
                  Final

                Maturity
                  Dates(1)

              	 
	
                A-1

              	 	
                $

              	
                15,459,431.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                A-2

              	 	
                $

              	
                493,386.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                A-3

              	 	
                $

              	
                1,125,865.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                A-4

              	 	
                $

              	
                31,959,229.00

              	 	
                Variable
                  Rate(3)

              	 	
                December
                  18, 2036

              	 
	
                A-5(4)

              	 	
                $

              	
                31,959,229.00

              	 	
                0.92%

              	 	
                December
                  18, 2036

              	 
	
                A-6

              	 	
                $

              	
                52,835,718.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                A-7

              	 	
                $

              	
                10,002,821.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                A-8

              	 	
                $

              	
                2,955,739.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                A-9

              	 	
                $

              	
                16,804,740.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                R-I

              	 	
                $

              	
                100.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                R-II

              	 	
                $

              	
                100.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                B-1

              	 	
                $

              	
                6,371,797.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                B-2

              	 	
                $

              	
                770,217.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                B-3

              	 	
                $

              	
                490,138.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                B-4

              	 	
                $

              	
                280,079.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                B-5

              	 	
                $

              	
                280,079.00

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 
	
                B-6

              	 	
                $

              	
                210,060.07

              	 	
                Variable
                  Rate(2)

              	 	
                December
                  18, 2036

              	 

      

      

      
        	
                (1)

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

              
	 	 
	
                (2)

              	
                Varies
                  according to the weighted average of the Net Mortgage Rate on each
                  Mortgage Loan.

              
	 	 
	
                (3)

              	
                Varies
                  according to (i) the weighted average of the Net Mortgage Rate
                  on each
                  Mortgage Loan minus (ii) 0.92% per annum.

              
	 	 
	
                (4)

              	
                For
                  federal income tax purposes, the notional balance of the Class
                  A-5
                  Certificates will be equal the Uncertificated Principal Balance
                  of REMIC I
                  Regular Interest A-4.
                  Interest
                  will accrue on a Notional Amount as described herein. No principal
                  will be
                  paid on the Class A-5 Certificates.

              
	 	 

      

      

      ARTICLE
        I

      DEFINITIONS

       

      Section
        1.01 Defined
        Terms.

       

      Whenever
        used in this Agreement or in the Preliminary Statement, the following words
        and
        phrases, unless the context otherwise requires, shall have the meanings
        specified in this Article. Unless otherwise specified, interest will be
        calculated for all Certificates on the basis of a 360-day year consisting
        of
        twelve 30-day months.

       

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

       

      “Account”:
        Any of the Collection Account and Distribution Account.

       

      “Accretion
        Termination Date”: With respect to the Class A-3 Certificates, the Class A-3
        Accretion Termination Date, with respect to the Class A-8 Certificates, the
        Class A-8 Accretion Termination Date and with respect to the Class A-9
        Certificates, the Class A-9 Accretion Termination Date.

       

      “Accrual
        Distribution Amount”: With respect to the Class A-3 Certificates, the Class A-3
        Accrual Distribution Amount, with respect to the Class A-8 Certificates,
        the
        Class A-8 Accretion Termination Date and with respect to the Class A-9
        Certificates, the Class A-9 Accrual Distribution Amount.

       

      “Advance”:
        As to any Mortgage Loan or REO Property, any advance made by the Master Servicer
        in respect of any Distribution Date pursuant to Section 4.03.

       

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

       

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

       

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

       

      “Assessment
        of Compliance”: As defined in Section 3.21.

       

      “Attestation
        Report”: As defined in Section 3.21.

       

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

       

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

       

      “Available
        Distribution Amount”: With respect to any Distribution Date and the Mortgage
        Loans, an amount equal to the excess of (i) the sum of (a) the aggregate
        of the
        related Monthly Payments received on or prior to the related Determination
        Date,
        (b) Liquidation Proceeds, Insurance Proceeds, Subsequent Recoveries and other
        unscheduled recoveries of principal and interest in respect of the Mortgage
        Loans, and Principal Prepayments during the related Prepayment Period, (c)
        the
        aggregate of any amounts received in respect of a related REO Property withdrawn
        from any REO Account and deposited in the Collection Account for such
        Distribution Date, (d) the aggregate of any amounts deposited in the Collection
        Account by the Master Servicer in respect of related Prepayment Interest
        Shortfalls for such Distribution Date and (e) the aggregate of any related
        Advances made by the Master Servicer for such Distribution Date, over (ii)
        the
        sum of (a) related amounts reimbursable or payable to the Master Servicer
        pursuant to Section 3.10, (b) related Stayed Funds, (c) related amounts
        deposited in the Collection Account or the Distribution Account, as the case
        may
        be, in error, (d) any Extraordinary Trust Fund Expenses and (e) the Trustee
        Fee.
        The Available Distribution Amount shall also be increased by any Required
        Surety
        Payment.

       

      “Bankruptcy
        Amount”: As of any date of determination prior to the first anniversary of the
        Cut-off Date, an amount equal to the excess, if any, of (A) $50,000 over
        (B) the
        aggregate amount of Bankruptcy Losses allocated solely to one or more specific
        Classes of Certificates in accordance with Section 4.02. As of any date of
        determination on or after the first anniversary of the Cut-off Date, an amount
        equal to the excess, if any, of (1) the lesser of (a) the Bankruptcy Amount
        calculated as of the close of business on the Business Day immediately preceding
        the most recent anniversary of the Cut-off Date coinciding with or preceding
        such date of determination (or, if such date of determination is an anniversary
        of the Cut-off Date, the Business Day immediately preceding such date of
        determination) (for purposes of this definition, the “Relevant Anniversary”) and
        (b) the greater of:

       

      (A) the
        greater of (i) 0.0006 times the aggregate principal balance of all the Mortgage
        Loans in the Mortgage Pool as of the Relevant Anniversary having a Loan-to-Value
        Ratio at origination which exceeds 75% and (ii) $50,000; and (B) the greater
        of
        (i) the product of (x) an amount equal to the largest difference in the related
        Monthly Payment for any Non-Primary Residence Loan remaining in the Mortgage
        Pool which had an original Loan-to-Value Ratio greater than 80% that would
        result if the Net Mortgage Rate thereof was equal to the greater of (I) 5%
        or
        (II) the weighted average (based on the principal balance of the Mortgage
        Loans
        as of the Relevant Anniversary) of the Net Mortgage Rates of all Mortgage
        Loans
        as of the Relevant Anniversary less 1.25% per annum, (y) a number equal to
        the
        weighted average remaining term to maturity, in months, of all Mortgage Loans
        with a Loan-to-Value Ratio of greater than 80% remaining in the Mortgage
        Pool as
        of the Relevant Anniversary, and (z) one plus the quotient of the number
        of all
        Non-Primary Residence Loans with a Loan-to-Value Ratio of greater than 80%
        remaining in the Mortgage Pool divided by the total number of outstanding
        Mortgage Loans in the Mortgage Pool as of the Relevant Anniversary, and (ii)
        $50,000,

       

      over
        (2)
        the aggregate amount of Bankruptcy Losses allocated solely to one or more
        specific Classes of Certificates in accordance with Section 4.02 since the
        Relevant Anniversary.

       

      The
        Bankruptcy Amount may be further reduced by the Master Servicer (including
        accelerating the manner in which such coverage is reduced) provided that
        prior
        to any such reduction, the Master Servicer shall (i) obtain written confirmation
        from the Rating Agency that such reduction shall not reduce the rating assigned
        to any Class of Certificates by such Rating Agency below the lower of the
        then
        current rating or the rating assigned to such Certificates as of the Closing
        Date by such Rating Agency and (ii) provide a copy of such written confirmation
        to the Trustee.

       

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

       

      “Bankruptcy
        Losses”: Losses that are incurred as a result of Debt Service Reductions and
        Deficient Valuations.

       

      “Book-Entry
        Certificates”: Any of the Certificates that shall be registered in the name of
        the Depository or its nominee, the ownership of which is reflected on the
        books
        of the Depository or on the books of a Person maintaining an account with
        the
        Depository (directly, as a “Depository Participant”, or indirectly, as an
        indirect participant in accordance with the rules of the Depository and as
        described in Section 5.02 hereof). On the Closing Date, the Certificates
        (other
        than the Class R, Class B-4, Class B-5 and Class B-6 Certificates) shall
        be
        Book-Entry Certificates.

       

      “Business
        Day”: Any day other than (a) a Saturday or Sunday, (b) a legal holiday in the
        State of New Jersey or the State of New York, or (c) a day on which banking
        or
        savings and loan institutions in the State of New Jersey or the State of
        New
        York are authorized or obligated by law or executive order to be
        closed.

       

      “Buydown
        Account”: The custodial account or accounts created and maintained pursuant to
        Section 3.25.

       

      “Buydown
        Agreement”: An agreement between the applicable originator and a Mortgagor, or
        an agreement among such originator, a Mortgagor and an employer of a relocated
        Mortgagor which, in each case, provides for the application of Buydown
        Funds.

       

      “Buydown
        Funds”: In respect of any Buydown Mortgage Loan, any amount contributed by the
        related originator or the employer of a relocated borrower in order to enable
        the Mortgagor to reduce the payments required to be made from the Mortgagor’s
        funds during the Buydown Period. The Buydown Funds are not part of the Trust
        Fund prior to deposit into the Collection Account or the Distribution
        Account.

       

      “Buydown
        Mortgage Loan”: Any Mortgage Loan in respect of which, pursuant to a Buydown
        Agreement, (i) the Mortgagor pays less than the full monthly payment specified
        in the Mortgage Note during the Buydown Period and (ii) the difference between
        the payments required under such Buydown Agreement and the Mortgage Note
        is paid
        from the related Buydown Funds.

       

      “Buydown
        Period”: The period during which Buydown Funds are required to be applied to the
        related Buydown Mortgage Loans as provided in Section 3.25.

       

      “Cash-Out
        Refinancing”: A Refinanced Mortgage Loan the proceeds of which were more than 2%
        or $2,000 in excess of the principal balance of any existing first mortgage
        or
        seasoned subordinate mortgage on the related Mortgaged Property and related
        closing costs.

       

      “Cash
        Liquidation”: As to any defaulted Mortgage Loan other than REO Property which
        has been acquired by the Master Servicer on behalf of the Trustee for the
        benefit of the Certificateholders, a determination by the Master Servicer
        that
        it has received all Insurance Proceeds, Liquidation Proceeds and other payments
        or cash recoveries which the Master Servicer reasonably or in good faith
        expects
        to be finally recoverable with respect to such Mortgage Loan, plus, with
        respect
        to a defaulted Mortgage Loan that is a Pledged Asset Loan, the amount realized
        on the related Pledged Assets with respect to such Mortgage Loan in accordance
        with Section 3.16.

       

      “Certificate”:
        Any Regular Certificate or Class R Certificate.

       

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

       

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

       

      “Certificate
        Principal Balance”: With respect to any Certificate (other than any Class A-5
        Certificate) as of any date of determination, (x) the Certificate Principal
        Balance of such Certificate on the Distribution Date immediately prior to
        such
        date of determination, plus (y) (i) in the case of the Class A-3 Certificates,
        an amount equal to the Monthly Interest Distributable Amount added to the
        Certificate Principal Balance of the Class A-3 Certificates on the Distribution
        Date immediately prior to such date of determination on or prior to the Class
        A-3 Accretion Termination Date, (ii) in the case of the Class A-8 Certificates,
        an amount equal to the Monthly Interest Distributable Amount added to the
        Certificate Principal Balance of the Class A-8 Certificates on the Distribution
        Date immediately prior to such date of determination on or prior to the Class
        A-8 Accretion Termination Date and (iii) in the case of the Class A-9
        Certificates, an amount equal to the Monthly Interest Distributable Amount
        added
        to the Certificate Principal Balance of the Class A-9 Certificates on the
        Distribution Date immediately prior to such date of determination on or prior
        to
        the Class A-9 Accretion Termination Date plus (z) in the case of the Class
        B
        Certificates, any Subsequent Recoveries added to the Certificate Principal
        Balance of any such Certificate pursuant to Section 4.01(h), reduced by the
        aggregate of (a) all distributions of principal made thereon on such immediately
        prior Distribution Date and (b) without duplication of amounts described
        in
        clause (a) above, reductions in the Certificate Principal Balance thereof
        in
        connection with allocations thereto of Realized Losses on the Mortgage Loans
        and
        Extraordinary Trust Fund Expenses on such immediately prior Distribution
        Date
        (or, in the case of any date of determination up to and including the initial
        Distribution Date, the initial Certificate Principal Balance of such
        Certificate, as stated on the face thereon); provided, however, that, the
        Certificate Principal Balance of each Subordinate Certificate of the Class
        of
        Subordinate Certificates outstanding with the highest numerical designation
        at
        any given time shall be calculated to equal the Percentage Interest evidenced
        by
        such Certificate multiplied by the excess, if any, of (A) the then aggregate
        Stated Principal Balance of the Mortgage Loans over (B) the then aggregate
        Certificate Principal Balances of all other Classes of Certificates then
        outstanding. The Class A-5 Certificates shall not have a Certificate Principal
        Balance and shall not be entitled to any distributions of
        principal.

       

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

       

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

       

      “Class
        A
        Certificate”: Any of the Class A-1, Class A-2, Class A-3, Class A-4, Class A-5,
        Class A-6, Class A-7, Class A-8 or Class A-9 Certificates as designated on
        the
        face thereof substantially in the form annexed hereto as Exhibit A, executed
        by
        the Trustee and authenticated and delivered by the Trustee, representing
        the
        right to distributions as set forth herein and therein.

       

      “Class
        A
        Certificateholder”: Any Holder of a Class A Certificate.

       

      “Class
        A-3 Accretion Termination Date”: The earlier to occur of (i) the Distribution
        Date on which the aggregate Certificate Principal Balance of the Class A-1
        Certificates and Class A-2 Certificates has been reduced to zero and (ii)
        the
        Credit Support Depletion Date.

       

      “Class
        A-3 Accrual Distribution Amount”: With respect to each Distribution Date prior
        to the Class A-3 Accretion Termination Date, an amount equal to the aggregate
        amount of Monthly Interest Distributable Amount on the Class A-3 Certificates,
        for such date, to the extent added to the Certificate Principal Balance thereof
        pursuant to Section 4.01(j); provided that, with respect to each Distribution
        Date on or after the Class A-3 Accretion Termination Date, the Monthly Interest
        Distributable Amount on the Class A-3 Certificates for such date remaining
        after
        reduction of the aggregate Certificate Principal Balance of the Class A-1
        Certificates and Class A-2 Certificates to zero on the Class A-3 Accretion
        Termination Date will be payable to the Class A-3 Certificateholders pursuant
        to
        Section 4.01(c)(i) hereof; and provided further, that if the Class A-3 Accretion
        Termination Date is the Credit Support Depletion Date, the entire amount
        of
        Monthly Interest Distributable Amount on the Class A-3 Certificates for that
        date will be payable to the Class A-3 Certificateholders pursuant to Section
        4.01(c)(i) hereof.

       

      “Class
        A-8 Accretion Termination Date”: The earlier to occur of (i) the Distribution
        Date on which the aggregate Certificate Principal Balance of the Class
        A-1, Class A-2, Class A-3, Class A-4, Class A-6 and Class A-7 Certificates
        has
        been
        reduced to zero and (ii) the Credit Support Depletion Date.

       

      “Class
        A-8 Accrual Distribution Amount”: With respect to each Distribution Date prior
        to the Class A-8 Accretion Termination Date, an amount equal to the aggregate
        amount of Monthly Interest Distributable Amount on the Class A-8 Certificates,
        for such date, to the extent added to the Certificate Principal Balance thereof
        pursuant to Section 4.01(k); provided that, with respect to each Distribution
        Date on or after the Class A-8 Accretion Termination Date, the Monthly Interest
        Distributable Amount on the Class A-8 Certificates for such date remaining
        after
        reduction of the aggregate Certificate Principal Balance of the Class A-1,
        Class
        A-2, Class A-3, Class A-4, Class A-6 and Class A-7 Certificates to zero on
        the
        Class A-8 Accretion Termination Date will be payable to the Class A-8
        Certificateholders pursuant to Section 4.01(c)(i) hereof; and provided further,
        that if the Class A-8 Accretion Termination Date is the Credit Support Depletion
        Date, the entire amount of Monthly Interest Distributable Amount on the Class
        A-8 Certificates for that date will be payable to the Class A-8
        Certificateholders pursuant to Section 4.01(c)(i) hereof.

       

      “Class
        A-9 Accretion Termination Date”: The earliest to occur of (i) the Distribution
        Date on which the aggregate Certificate Principal Balance of the Class
        A-1, Class A-2, Class A-3, Class A-4, Class A-6, Class A-7 and Class A-8
        Certificates has
        been
        reduced to zero, (ii) the Credit Support Depletion Date and (iii) the
        Distribution Date occurring in December 2011.

       

      “Class
        A-9 Accrual Distribution Amount”: With respect to each Distribution Date prior
        to the Class A-9 Accretion Termination Date, an amount equal to the aggregate
        amount of Monthly Interest Distributable Amount on the Class A-9 Certificates,
        for such date, to the extent added to the Certificate Principal Balance thereof
        pursuant to Section 4.01(l); provided that, with respect to each Distribution
        Date on or after the Class A-9 Accretion Termination Date, the Monthly Interest
        Distributable Amount on the Class A-9 Certificates for such date remaining
        after
        reduction of the aggregate Certificate Principal Balance of the Class A-1,
        Class
        A-2, Class A-3, Class A-4, Class A-6, Class A-7 and Class A-8 Certificates
        to
        zero on the Class A-9 Accretion Termination Date will be payable to the Class
        A-9 Certificateholders pursuant to Section 4.01(c)(i) hereof; and provided
        further, that if the Class A-9 Accretion Termination Date is the Credit Support
        Depletion Date or the Distribution Date occurring in December 2011, the entire
        amount of Monthly Interest Distributable Amount on the Class A-9 Certificates
        for that date will be payable to the Class A-8 Certificateholders pursuant
        to
        Section 4.01(c)(i) hereof.

       

      “Class
        B
        Certificate”: Any one of the Class B-1, Class B-2, Class B-3, Class B-4, Class
        B-5 or Class B-6 Certificates as designated on the face thereof substantially
        in
        the form annexed hereto as Exhibit C-2, executed by the Trustee and
        authenticated and delivered by the Trustee, representing the right to
        distributions as set forth herein and therein.

       

      “Class
        B
        Certificateholder”: Any Holder of a Class B Certificate.

       

      “Class
        B
        Percentage”: The Class B-1 Percentage, Class B-2 Percentage, Class B-3
        Percentage, Class B-4 Percentage, Class B-5 Percentage or Class B-6
        Percentage.

       

      “Class
        B-1 Percentage”: With respect to any Distribution Date, the lesser of 100% and a
        fraction, expressed as a percentage, the numerator of which is the aggregate
        Certificate Principal Balance of the Class B-1 Certificates immediately prior
        to
        such Distribution Date and the denominator of which is the aggregate Stated
        Principal Balance of all of the Mortgage Loans (or related REO Properties)
        immediately prior to such Distribution Date. The initial Class B-1 Percentage
        is
        approximately 4.55%.

       

      “Class
        B-2 Percentage”: With respect to any Distribution Date, the lesser of 100% and a
        fraction, expressed as a percentage, the numerator of which is the aggregate
        Certificate Principal Balance of the Class B-2 Certificates immediately prior
        to
        such Distribution Date and the denominator of which is the aggregate Stated
        Principal Balance of all of the Mortgage Loans (or related REO Properties)
        immediately prior to such Distribution Date. The initial Class B-2 Percentage
        is
        approximately 0.55%.

       

      “Class
        B-3 Percentage”: With respect to any Distribution Date, the lesser of 100% and a
        fraction, expressed as a percentage, the numerator of which is the aggregate
        Certificate Principal Balance of the Class B-3 Certificates immediately prior
        to
        such Distribution Date and the denominator of which is the aggregate Stated
        Principal Balance of all of the Mortgage Loans (or related REO Properties)
        immediately prior to such Distribution Date. The initial Class B-3 Percentage
        is
        approximately 0.35%.

       

      “Class
        B-4 Percentage”: With respect to any Distribution Date, the lesser of 100% and a
        fraction, expressed as a percentage, the numerator of which is the aggregate
        Certificate Principal Balance of the Class B-4 Certificates immediately prior
        to
        such Distribution Date and the denominator of which is the aggregate Stated
        Principal Balance of all of the Mortgage Loans (or related REO Properties)
        immediately prior to such Distribution Date. The initial Class B-4 Percentage
        is
        approximately 0.20%.

       

      “Class
        B-5 Percentage”: With respect to any Distribution Date, the lesser of 100% and a
        fraction, expressed as a percentage, the numerator of which is the aggregate
        Certificate Principal Balance of the Class B-5 Certificates immediately prior
        to
        such Distribution Date and the denominator of which is the aggregate Stated
        Principal Balance of all of the Mortgage Loans (or related REO Properties)
        immediately prior to such Distribution Date. The initial Class B-5 Percentage
        is
        approximately 0.20%.

       

      “Class
        B-6 Percentage”: With respect to any Distribution Date, the lesser of 100% and a
        fraction, expressed as a percentage, the numerator of which is the aggregate
        Certificate Principal Balance of the Class B-6 Certificates immediately prior
        to
        such Distribution Date and the denominator of which is the aggregate Stated
        Principal Balance of all of the Mortgage Loans (or related REO Properties)
        immediately prior to such Distribution Date. The initial Class B-6 Percentage
        is
        approximately 0.15%.

       

      “Class
        R
        Certificates”: The Class R-I Certificates and Class R-II Certificates executed
        by the Trustee, and authenticated and delivered by the Certificate Registrar,
        substantially in the form annexed hereto as Exhibit C-1 and each evidencing
        the
        ownership of an interest designated as the Residual Interest in the related
        REMIC.

       

      “Class
        Subordination Percentage”: With respect to any Distribution Date and each Class
        of Subordinate Certificates, the fraction (expressed as a percentage) the
        numerator of which is the Certificate Principal Balance of such Class of
        Subordinate Certificates immediately prior to such Distribution Date and
        the
        denominator of which is the aggregate of the Certificate Principal Balances
        of
        all Classes of Certificates immediately prior to such Distribution
        Date.

       

      “Closing
        Date”: November 29, 2006.

       

      “Code”:
        The Internal Revenue Code of 1986, as amended.

       

      “Collection
        Account”: The account or accounts created and maintained by the Master Servicer
        pursuant to Section 3.10, which shall be entitled “PHH Mortgage Corporation, as
        Master Servicer for Citibank, N.A., as Trustee, in trust for registered Holders
        of PHHMC Mortgage Pass-Through Certificates, Series 2006-4”, and which must be
        an Eligible Account.

       

      “Commission”:
        The Securities and Exchange Commission.

       

      “Compensating
        Interest”: As defined in Section 3.24 hereof.

       

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

       

      “Control
        Agreement”: With respect to each Mortgage 100K
        Loan,
        the Merrill Lynch Pledged Collateral Account Control Agreement between the
        guarantor or mortgagor, as applicable, the Pledged Asset Servicer and Merrill
        Lynch, Pierce, Fenner & Smith Incorporated, pursuant to which the guarantor
        or mortgagor, as applicable, has granted a security interest in a Securities
        Account.

       

      “Cooperative”:
        A corporation that has been formed for the purpose of cooperative apartment
        ownership.

       

      “Cooperative
        Assets”: Shares issued by Cooperatives, the related Cooperative Lease and any
        other collateral securing the Cooperative Loans.

       

      “Cooperative
        Building”: The building and other property owned by a Cooperative.

       

      “Cooperative
        Lease”: With respect to a Cooperative Loan, the proprietary lease or occupancy
        agreement with respect to the Cooperative Apartment occupied by the Mortgagor
        and relating to the related Cooperative Assets, which lease or agreement
        confers
        an exclusive right to the holder of such Cooperative Assets to occupy such
        apartment.

       

      “Cooperative
        Loan”: The indebtedness of a Mortgagor evidenced by a Mortgage Note which is
        secured by Cooperative Assets and which is being sold to the Depositor pursuant
        to this Agreement, the Mortgage Loans so sold being identified in the Mortgage
        Loan Schedule.

       

      “Cooperative
        Unit”: A specific dwelling unit in a Cooperative Building as to which exclusive
        occupancy rights have been granted pursuant to a Lease.

       

      “Corporate
        Trust Office”: The principal corporate trust office of the Trustee at which at
        any particular time its corporate trust business in connection with this
        Agreement shall be administered, which office at the date of the execution
        of
        this instrument is located, for Certificate transfer purposes, at 111 Wall
        Street, 15th
        Floor,
        Attn: Securities Window, New York, New York 10005, Attn: PHHMC, Series 2006-4,
        or at such other address as the Trustee may designate from time to time by
        notice to the Certificateholders, the Depositor and the Master
        Servicer.

       

      “Corresponding
        Certificated Interests”: With respect to each REMIC I Regular Interest, the
        Class with the same designation.

       

      “Credit
        Support Depletion Date”: The first Distribution Date on which the Senior
        Percentage equals 100%.

       

      “Curtailment”:
        Any Principal Prepayment made by a Mortgagor which is not a Principal Prepayment
        in Full.

       

      “Cut-off
        Date”: November 1, 2006.

       

      “Cut-off
        Date Principal Balance”: With respect to any Mortgage Loan, the unpaid principal
        balance thereof as of the Cut-off Date (or as of the applicable date of
        substitution with respect to an Eligible Substitute Mortgage Loan).

       

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

       

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

       

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

       

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

       

      “Delinquent”:
        As used herein, a Mortgage Loan is considered to be: “one month” delinquent when
        a payment due on any scheduled due date remains unpaid as of the close of
        business on the last Business Day immediately prior to the next following
        monthly scheduled due date; “two months” delinquent when a payment due on any
        scheduled due date remains unpaid as of the close of business on the last
        Business Day immediately prior to the second following monthly scheduled
        due
        date; and so on. The determination as to whether a Mortgage Loan falls into
        these categories is made as of the close of business on the last Business
        Day of
        each month. For example, a Mortgage Loan with a payment due on July 1 that
        remained unpaid as of the close of business on July 31 would then be considered
        to be one month delinquent. Delinquency information as of the Cut-off Date
        is
        determined and prepared as of the close of business on the last Business
        Day
        immediately prior to the Cut-off Date.

       

      “Depositor”:
        PHH Mortgage Capital LLC, a Delaware limited liability company, or any successor
        in interest.

       

      “Depository”:
        The initial Depository shall be The Depository Trust Company, whose nominee
        is
        Cede & Co., or any other organization registered as a “clearing agency”
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended.
        The
        Depository shall initially be the registered Holder of the Book-Entry
        Certificates. The Depository shall at all times be a “clearing corporation” as
        defined in Section 8-102(3) of the Uniform Commercial Code of the State of
        New
        York.

       

      “Depository
        Agreement”: With respect to any Book-Entry Certificates, either of the
        agreements among the Depositor, the Trustee and the initial Depository, to
        be
        dated on or about the Closing Date.

       

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

       

      “Determination
        Date”: With respect to any Distribution Date, the 8th day of the calendar month
        in which such Distribution Date occurs or, if such 8th day is not a Business
        Day, the Business Day immediately preceding such 8th day.

       

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

       

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

       

      “Distribution
        Account”: The trust account or accounts created and maintained by the Trustee
        pursuant to Section 3.10(b) which shall be entitled “Distribution Account,
        Citibank, N.A., as Trustee, in trust for the registered Holders of the PHHMC
        Mortgage Pass-Through Certificates, Series 2006-4” and which must be an Eligible
        Account.

       

      “Distribution
        Date”: The 18th day of any calendar month, or if such 18th day is not a Business
        Day, the Business Day immediately following such 18th day, commencing in
        December 2006.

       

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

       

      “Due
        Period”: With respect to any Distribution Date, the period commencing on the
        second day of the month preceding the month in which such Distribution Date
        (or
        with respect to the first Due Period, the day following the Cut-off Date)
        occurs
        and ending on the first day of the month in which such Distribution Date
        occurs.

       

      “Effective
        Loan-to-Value Ratio”: With respect to a Pledged Asset Loan, the ratio, expressed
        as a percentage, of (A) the principal amount of the Mortgage Loan at origination
        less the value of any Pledged Assets securing the Mortgage Loan, to (B) the
        lesser of (1) the appraised value determined in an appraisal or other collateral
        assessment tool obtained at origination of the Mortgage Loan and (2) the
        sales
        price for the related Mortgaged Property.

       

      “Eligible
        Account”: Any of (i) an account or accounts maintained with a depository
        institution the short-term debt obligations of which have been rated by the
        Rating Agency in its highest rating available, (ii) in a depository institution
        in which such accounts are fully insured to the limits established by the
        FDIC,
        provided that any deposits not so insured shall, to the extent acceptable
        to the
        Rating Agency, as evidenced in writing, be maintained such that (as evidenced
        by
        an Opinion of Counsel delivered to the Trustee and the Rating Agency) the
        registered Holders of Certificates have a claim with respect to the funds
        in
        such account or a perfected first 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 with which such account is maintained, (iii) a trust account
        or
        accounts maintained with the trust department of a federal or state chartered
        depository institution, national banking association or trust company acting
        in
        its fiduciary capacity, (iv) an account or accounts of a depository institution
        acceptable to the Rating Agency (as evidenced in writing by the Rating Agency
        that use of any such account will not reduce the rating assigned to any Class
        of
        Certificates by such Rating Agency below the lower of the then-current rating
        or
        the rating assigned to such Certificates as of the Closing Date by such Rating
        Agency) or (v) an account or accounts maintained with a federal or state
        chartered depository institution or trust company that meet the depository
        requirements of Fannie Mae or Freddie Mac. Eligible Accounts may bear
        interest.

       

      “Eligible
        Substitute Mortgage Loan”: A mortgage loan substituted for a Defective Mortgage
        Loan pursuant to the terms of this Agreement which must, on the date of such
        substitution, (i) have an outstanding principal balance, after application
        of
        all scheduled payments of principal and interest due during or prior to the
        month of substitution, not in excess of the outstanding principal balance
        of the
        Defective Mortgage Loan as of the Due Date in the calendar month during which
        the substitution occurs, the amount of any shortfall to be deposited by the
        Master Servicer in the Collection Account in the month of substitution, (ii)
        have a Loan Rate, not less than the Loan Rate of the Defective Mortgage Loan
        and
        not more than 1% in excess of the Loan Rate of such Defective Mortgage Loan,
        (iii) have a remaining term to maturity not greater than (and not more than
        one
        year less than) that of the Defective Mortgage Loan, (iv) be current as of
        the
        date of substitution, (v) have a Loan-to-Value Ratio as of the date of
        substitution equal to or lower than the Loan-to-Value Ratio of the Defective
        Mortgage Loan as of such date and (vi) conform to each representation and
        warranty set forth in Section 2.04 hereof applicable to the Defective Mortgage
        Loan. In the event that one or more mortgage loans are substituted for one
        or
        more Defective Mortgage Loans, the amounts described in clause (i) hereof
        shall
        be determined on the basis of aggregate principal balances, the Loan Rates
        described in clause (ii) hereof shall be determined on the basis of weighted
        average Loan Rates, the terms described in clause (iii) hereof shall be
        determined on the basis of weighted average remaining term to maturity, the
        Loan-to-Value Ratios described in clause (v) hereof shall be satisfied as
        to
        each such mortgage loan and, except to the extent otherwise provided in this
        sentence, the representations and warranties described in clause (vi) hereof
        must be satisfied as to each Eligible Substitute Mortgage Loan or in the
        aggregate, as the case may be. Any Mortgage Loan substituted for a Mortgage
        Loan
        which has an arrearage due to the application of any related forbearance
        plan
        with respect to such Mortgage Loan, will be treated as having such an arrearage
        due to the application of any related forbearance plan with respect to such
        Mortgage Loan.

       

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

       

      “ERISA-Restricted
        Certificates”: Any of the Class B-4, Class B-5, Class B-6 and Class R
        Certificates.

       

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

       

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

       

      “Excess
        Losses”: (i) Special Hazard Losses in excess of the Special Hazard Amount, (ii)
        Bankruptcy Losses in excess of the Bankruptcy Amount, (iii) Fraud Losses
        in
        excess of the Fraud Loss Amount and (iv) Extraordinary Losses.

       

      “Excess
        Subordinate Principal Amount”: With respect to any Distribution Date on which
        the Certificate Principal Balance of the Class or Classes of Certificates
        then
        outstanding with the Lowest Priority is to be reduced to zero and on which
        Realized Losses are to be allocated to that Class or those Classes, the amount,
        if any, by which (i) the amount of principal that would otherwise be
        distributable on that Class or those Classes of Certificates on such
        Distribution Date is greater than (ii) the excess, if any, of the aggregate
        Certificate Principal Balance of that Class or those Classes of Certificates
        immediately prior to such Distribution Date over the aggregate amount of
        Realized Losses to be allocated to that Class or those Classes of Certificates
        on such Distribution Date.

       

      “Exchange
        Act”: The Securities and Exchange Act of 1934, as amended.

       

      “Extraordinary
        Loss”: Any Realized Loss or portion thereof caused by or resulting
        from:

       

      (i) 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”;

       

      (ii) hostile
        or warlike action in time of peace or war, including action in hindering,
        combating or defending against an actual, impending or expected attack by
        any
        government or sovereign power, de
        jure
        or
de
        facto,
        or by
        any authority maintaining or using military, naval or air forces, or by
        military, naval or air forces, or by an agent of any such government, power,
        authority or forces;

       

      (iii) any
        weapon of war employing atomic fission or radioactive forces whether in time
        of
        peace or war, and

       

      (iv) 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
        transactions or trade.

       

      “Extraordinary
        Trust Fund Expenses”: Any amounts reimbursable to the Master Servicer or the
        Depositor pursuant to Section 6.03, any amounts reimbursable to the Trustee
        from
        the Trust Fund pursuant to this Agreement, including but not limited to Section
        8.05, and any other costs, expenses, liabilities and losses borne by the
        Trust
        Fund (exclusive of any cost, expense, liability or loss that is specific
        to a
        particular Mortgage Loan or REO Property and is taken into account in
        calculating a Realized Loss in respect thereof) for which the Trust Fund
        has not
        and, in the reasonable good faith judgment of the Trustee, shall not, obtain
        reimbursement or indemnification from any other Person.

       

      “Fannie
        Mae”: Federal National Mortgage Association or any successor
        thereto.

       

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

       

      “Fidelity
        Bond”: Shall have the meaning assigned thereto in Section 3.14.

       

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

       

      “Fitch”:
        Fitch, Inc., doing business as Fitch Ratings, and any successor thereto or
        its
        successor in interest.

       

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

       

      “Foreclosure
        Profits”: As to any Distribution Date or related Determination Date and any
        Mortgage Loan, the excess, if any, of Liquidation Proceeds, Insurance Proceeds
        and proceeds from any REO Disposition (net of all amounts reimbursable therefrom
        pursuant to Section 3.11(a)(iii)) in respect of each Mortgage Loan or REO
        Property for which a Cash Liquidation or REO Disposition occurred in the
        related
        Prepayment Period over the sum of the unpaid principal balance of such Mortgage
        Loan or REO Property (determined, in the case of an REO Disposition, in
        accordance with Section 3.16) plus accrued and unpaid interest at the Mortgage
        Rate on such unpaid principal balance from the Due Date to which interest
        was
        last paid by the Mortgagor to the first day of the month following the month
        in
        which such Cash Liquidation or REO Disposition occurred.

       

      “Fraud
        Loss Amount”: As of any date of determination after the Cut-off Date, prior to
        the third anniversary of the Cut-off Date, an amount equal to 1.00% of the
        aggregate outstanding principal balance of all of the Mortgage Loans as of
        the
        Cut-off Date minus the Fraud Losses allocated solely to one or more specific
        Classes of Certificates in accordance with Section 4.02 since the most recent
        anniversary of the Cut-off Date up to such date of determination. On and
        after
        the third anniversary of the Cut-off Date, the Fraud Loss Amount shall be
        zero.

       

      The
        Fraud
        Loss Amount may be further reduced by the Master Servicer (including
        accelerating the manner in which such coverage is reduced) provided that
        prior
        to any such reduction, the Master Servicer shall (i) obtain written conformation
        from the Rating Agency that such reduction shall not reduce the rating assigned
        to any Class of Certificates by such Rating Agency below the lower of the
        then-current rating or the rating assigned to such Certificates as of the
        Closing Date by such Rating Agency and (ii) provide a copy of such written
        conformation to the Trustee.

       

      “Fraud
        Losses”: Losses sustained on a Liquidated Mortgage Loan by reason of a default
        arising from fraud, dishonesty or misrepresentation.

       

      “Freddie
        Mac”: Federal Home Loan Mortgage Corporation or any successor
        thereto.

       

      “Highest
        Priority”: As of any date of determination, the Class of Subordinate
        Certificates then outstanding with the earliest priority for payments pursuant
        to Section 4.01(c), in the following order: Class B-1, Class B-2, Class B-3,
        Class B-4, Class B-5 and Class B-6 Certificates.

       

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

       

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

       

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

       

      “Initial
        Certificate Principal Balance”: With respect to any Regular Certificate, other
        than the Class A-5 Certificates, the amount designated “Initial Certificate
        Principal Balance” on the face thereof.

       

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

       

      “Interest
        Accrual Period”: With respect to any Distribution Date and any Class of
        Certificates, the calendar month immediately preceding the month in which
        such
        Distribution Date occurs.

       

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

       

      “Limited
        Purpose Surety Bond”: The Limited Purpose Surety Bond (Policy No. AB0039BE),
        dated February 28, 1996 in respect to certain Pledged Asset Loans, issued
        by
        Ambac Assurance Corporation (f/k/a Ambac Indemnity Corporation) for the benefit
        of certain beneficiaries, including the Trustee for the benefit of the
        Certificateholders, but only to the extent that such Limited Purpose Surety
        Bond
        covers any Pledged Asset Loans.

       

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

       

      “Liquidation
        Event”: With respect to any Mortgage Loan, any of the following events: (i) such
        Mortgage Loan is paid in full; (ii) a Final Recovery Determination is made
        as to
        such Mortgage Loan; or (iii) such Mortgage Loan is removed from the Trust
        Fund
        by reason of its being purchased, sold or replaced pursuant to or as
        contemplated by Section 2.03 or Section 10.01. With respect to any REO Property,
        either of the following events: (i) a Final Recovery Determination is made
        as to
        such REO Property; or (ii) such REO Property is removed from the Trust Fund
        by
        reason of its being sold or purchased pursuant to Section 3.23 or Section
        10.01.

       

      “Liquidation
        Proceeds”: The amount (other than amounts received in respect of the rental of
        any REO Property prior to REO Disposition) received by the Master Servicer
        in
        connection with (i) the taking of all or a part of a Mortgaged Property by
        exercise of the power of eminent domain or condemnation, (ii) the liquidation
        of
        a defaulted Mortgage Loan by means of a trustee’s sale, foreclosure sale or
        otherwise (including, with respect to a defaulted Mortgage Loan that is a
        Pledged Asset Loan, the amount realized on the related Pledged Assets with
        respect to such Mortgage Loan in accordance with Section 3.16), or (iii)
        the
        repurchase, substitution or sale of a Mortgage Loan or an REO Property pursuant
        to or as contemplated by Section 2.03, Section 3.16 or Section
        10.01.

       

      “Loan
        Balance”: As of any date, the aggregate Stated Principal Balance of all of the
        Mortgage Loans as of such date.

       

      “Loan-to-Value
        Ratio”: As of any date and Mortgage Loan (other than a Pledged Asset Loan), the
        fraction, expressed as a percentage, the numerator of which is the Stated
        Principal Balance of the Mortgage Loan, and the denominator of which is the
        Value of the related Mortgaged Property. As of any date and any Pledged Asset
        Loan, the related Effective Loan-to-Value Ratio.

       

      “Loan
        Rate”: With respect to each Mortgage Loan, the annual rate at which interest
        accrues on such Mortgage Loan from time to time in accordance with the
        provisions of the related Mortgage Note, which rate shall remain constant
        at the
        rate set forth in the Mortgage Loan Schedule as the Loan Rate in effect
        immediately following the Cut-off Date. With respect to each Mortgage Loan
        that
        becomes an REO Property, as of any date of determination, the annual rate
        determined in accordance with the immediately preceding sentence as of the
        date
        such Mortgage Loan became an REO Property.

       

      “Lockout
        Percentage”: With respect to any Distribution Date, the Certificate Principal
        Balance of the Class A-9 Certificates, divided by the aggregate Certificate
        Principal Balance of the Senior Certificates, in each case immediately prior
        to
        any allocations of losses or distributions on that Distribution
        Date.

       

      “Lockout
        Prepayment Percentage”: With respect to any Distribution Date, the product of
        (i) the Lockout Percentage and (ii) the Stepdown Percentage.

       

      “Lockout
        Scheduled Percentage”: With respect to any Distribution Date (i) occurring prior
        to December 2011, 0% and (ii) occurring in or after December 2011, the Lockout
        Percentage.

       

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

       

      “Lower
        Priority”: As of any date of determination and with respect to any Class of
        Subordinate Certificates, any other Class of Subordinate Certificates then
        outstanding with a later priority for payments pursuant to Section
        4.01(c).

       

      “Lowest
        Priority”: As of any date of determination, the Class of Subordinate
        Certificates then outstanding with the latest priority for payments pursuant
        to
        Section 4.01(c), in the following order: Class B-6, Class B-5, Class B-4,
        Class
        B-3, Class B-2 and Class B-1 Certificates.

       

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

       

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

       

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

       

      “Master
        Servicer Remittance Date”: With respect to any Distribution Date, the Business
        Day prior to such Distribution Date.

       

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

       

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

       

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

       

      “MLCC”:
        Merrill Lynch Credit Corporation and its successors in interest.

       

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

       

      “Monthly
        Interest Distributable Amount”: An amount equal to the interest accrued during
        the related Interest Accrual Period on the Certificate Principal Balance
        or
        Notional Amount, as applicable, of each Class of Certificates at the
        then-applicable Pass-Through Rate. The Monthly Interest Distributable Amount
        on
        any Class of Certificates will be reduced by the amount of (i) Prepayment
        Interest Shortfalls (to the extent not offset by the Master Servicer with
        a
        payment of Compensating Interest as provided in Section 3.24), (ii) the interest
        portion (adjusted to the Net Mortgage Rate) of Realized Losses (including
        Excess
        Losses and Extraordinary Losses) not allocated solely to one or more specific
        Classes of Certificates pursuant to Section 4.02, (iii) the interest portion
        of
        Advances previously made with respect to a Mortgage Loan or REO Property
        which
        remained unreimbursed following the Cash Liquidation or REO Disposition of
        such
        Mortgage Loan or REO Property that were made with respect to delinquencies
        that
        were ultimately determined to be Excess Losses or Extraordinary Losses and
        (iv)
        any other interest shortfalls not covered by the subordination provided by
        the
        Class B Certificates, including Relief Act Shortfalls, with all such reductions
        allocated among all of the Certificates in proportion to their respective
        amounts of Monthly Interest Distributable Amount payable on such Distribution
        Date which would have resulted absent such reductions.

       

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

       

      “Moody’s”:
        Moody’s Investors Service, Inc., and its successors.

       

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

       

      “Mortgage
        100K
        Loan”: A
        Mortgage Loan secured by Pledged Assets in the form of a security interest
        in
        the Securities Account and the financial assets held therein and having a
        value,
        as of the date of origination of such Mortgage Loan, of at least equal to
        the
        related Original Pledged Asset Requirement.

       

      “Mortgage
        100K
        Pledge
        Agreement”: With respect to each Mortgage 100K
        Loan,
        the Pledge Agreement for Securities Account between the related mortgagor
        and
        the Pledged Asset Servicer pursuant to which such mortgagor granted a security
        interest in the related securities and other financial assets held
        therein.

       

      “Mortgage
        File”: The mortgage documents listed in Section 2.01(A) and (B) pertaining to
        a
        particular Mortgage Loan and any additional documents required to be added
        to
        the Mortgage File pursuant to this Agreement.

       

      “Mortgage
        Loan”: Each mortgage loan (including the Cooperative Loans) transferred and
        assigned to the Trustee pursuant to Section 2.01 or Section 2.03(d) as from
        time
        to time held as a part of the Trust Fund, the Mortgage Loans so held being
        identified in the Mortgage Loan Schedule.

       

      “Mortgage
        Loan Purchase Agreement”: The mortgage loan purchase agreement, dated as of
        November 1, 2006, among the Sellers and the Depositor, regarding the transfer
        of
        the Mortgage Loans.

       

      “Mortgage
        Loan Schedule”: As of any date, the list of Mortgage Loans identifying the
        Mortgage Loans transferred from the Sellers, and attached hereto as Exhibit
        D.
        The Mortgage Loan Schedule shall set forth the following information with
        respect to each Mortgage Loan:

       

      
        	 	
                (i)

              	
                the
                  Sellers’ Mortgage Loan identifying number;

              
	 	 	 
	 	
                (ii)

              	
                [reserved];

              
	 	 	 
	 	
                (iii)

              	
                the
                  zip code of the related Mortgaged Property;

              
	 	 	 
	 	
                (iv)

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

              
	 	 	 
	 	
                (v)

              	
                the
                  type of Residential Dwelling constituting the Mortgaged
                  Property;

              
	 	 	 
	 	
                (vi)

              	
                the
                  original months to maturity;

              
	 	 	 
	 	
                (vii)

              	
                the
                  original date of the mortgage;

              
	 	 	 
	 	
                (viii)

              	
                the
                  Loan-to-Value Ratio or Effective Loan-to-Value Ratio, as applicable,
                  at
                  origination;

              
	 	 	 
	 	
                (ix)

              	
                the
                  loan rate;

              
	 	 	 
	 	
                (x)

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

              
	 	 	 
	 	
                (xi)

              	
                the
                  stated maturity date;

              
	 	 	 
	 	
                (xii)

              	
                the
                  amount of the Monthly Payment at origination;

              
	 	 	 
	 	
                (xiii)

              	
                the
                  amount of the Monthly Payment as of the Cut-off Date;

              
	 	 	 
	 	
                (xiv)

              	
                the
                  next Due Date on which a Monthly Payment is due;

              
	 	 	 
	 	
                (xv)

              	
                the
                  original principal amount of the Mortgage Loan;

              
	 	 	 
	 	
                (xvi)

              	
                the
                  unpaid principal balance of the Mortgage Loan as of the close of
                  business
                  on the Cut-off Date;

              
	 	 	 
	 	
                (xvii)

              	
                a
                  code indicating the purpose of the Mortgage Loan (i.e., purchase
                  financing, Rate/Term Refinancing, Cash-Out
                  Refinancing);

              
	 	 	 
	 	
                (xviii)

              	
                a
                  code indicating the documentation style (i.e., full, alternative
                  or
                  reduced);

              
	 	 	 
	 	
                (xix)

              	
                a
                  code indicating if the Mortgage Loan is subject to a Primary Insurance
                  Policy;

              
	 	 	 
	 	
                (xx)

              	
                the
                  name of the Qualified Insurer and the certificate number for any
                  Primary
                  Insurance Policy, if applicable;

              
	 	 	 
	 	
                (xxi)

              	
                the
                  depth of coverage of any Primary Insurance Policy, if
                  applicable;

              
	 	 	 
	 	
                (xxii)

              	
                the
                  Value of the Mortgaged Property;

              
	 	 	 
	 	
                (xxiii)

              	
                the
                  sale price of the Mortgaged Property, if applicable;

              
	 	 	 
	 	
                (xxiv)

              	
                the
                  Servicing Fee;

              
	 	 	 
	 	
                (xxv)

              	
                whether
                  the Mortgage Loan is a Buydown Mortgage Loan; and

              
	 	 	 
	 	
                (xxvi)

              	
                the
                  amount of the Original Pledged Asset Requirement, if
                  any.

              

      

       

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

       

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

       

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

       

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

       

      “Mortgagor”:
        The obligor on a Mortgage Note.

       

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

       

      “Net
        Mortgage Rate”: With respect to any Mortgage Loan, (x) the Loan Rate minus (y)
        the Servicing Fee Rate and the Trustee Fee Rate.

       

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

       

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

       

      “Notional
        Amount”: With respect to the Class A-5 Certificates and any Distribution Date,
        the Certificate Principal Balance of the Class A-4 Certificates immediately
        prior to that Distribution Date. For federal income tax purposes, the Notional
        Amount of the Class A-5 Certificates shall be equal to the Uncertificated
        Principal Balance of REMIC I Regular Interest A-4.

       

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

       

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

       

      “Optional
        Termination Date”: The first Distribution Date on which the Master Servicer may
        opt to terminate the Trust Fund pursuant to Section 10.01.

       

      “Original
        Certificate Principal Balance”: With respect to each Class of the Certificates
        other than the Class A-5 Certificates, the Certificate Principal Balance
        thereof
        on the Closing Date, as set forth opposite such Class above in the Preliminary
        Statement.

       

      “Original
        Notional Amount”: With respect to the Class A-5 Certificates,
        $31,959,229.00.

       

      “Original
        Pledged Asset Requirement’: With respect to any Pledged Asset Loan, an amount
        equal to the Pledged Assets required at the time of the origination of such
        Pledged Asset Loan in order to achieve an Effective Loan-to-Value Ratio for
        such
        Pledged Asset Loan, generally equal to seventy percent (70%); for purposes
        of
        the Required Surety Payment, in no event shall the Original Pledged Asset
        Requirement for a Pledged Asset Loan exceed thirty percent (30%) of its original
        principal balance.

       

      “Original
        Subordinated Principal Balance”: The aggregate of the Certificate Principal
        Balances of the Subordinate Certificates as of the Cut-off Date.

       

      “Other
        Insurance Proceeds”: Proceeds of any title policy, hazard policy or other
        insurance policy covering a Mortgage Loan, other than the Primary Insurance
        Policy, if any, to the extent such proceeds are not to be applied to the
        restoration of the related Mortgaged Property or released to the Mortgagor
        in
        accordance with the procedures that the Master Servicer would follow in
        servicing mortgage loans held for its own account.

       

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

       

      “Parent
        Power® Agreement”: With respect to each Parent Power® Mortgage Loan, a Parent
        Power® Guaranty and Security Agreement for Securities Account.

       

      “Parent
        Power® Guaranty and Security Agreement for Securities Account”: With respect to
        a Parent Power® Mortgage Loan, an agreement between the Pledged Asset Servicer
        and a guarantor on behalf of the mortgagor under such Parent Power® Mortgage
        Loan pursuant to which such guarantor guarantees the payment of certain losses
        under such Parent Power® Mortgage Loan and has granted a security interest to
        the Pledged Asset Servicer in certain marketable securities to collateralize
        such guaranty. The required amount of such collateral is at least equal to
        the
        Original Pledged Asset Requirement for such Parent Power® Mortgage
        Loan.

       

      “Parent
        Power® Mortgage Loan”: A Mortgage Loan having at the time of origination a
        Loan-to-Value Ratio generally in excess of the Master Servicer’s maximum
        acceptable Loan-to-Value Ratio for such Mortgage Loan as set forth in the
        Underwriting Guide, which Mortgage Loan is supported by a Parent Power®
Agreement.

       

      “Pass-Through
        Rate”: With respect to the Certificates (other than the Class A-4 Certificates
        and Class A-5 Certificates) and any Distribution Date, a per annum rate equal
        to
        the weighted average of the Net Mortgage Rate on each Mortgage Loan. For
        federal
        income tax purposes, the equivalent of the foregoing shall be expressed as
        the
        weighted average of the Uncertificated Pass-Through Rate on each REMIC I
        Regular
        Interest, weighted on the basis of the Uncertificated Principal Balance of
        each
        such REMIC I Regular Interest. With respect to the Class A-4 Certificates
        and
        any Distribution Date, a per annum rate equal to (i) the weighted average
        of the
        Net Mortgage Rate on each Mortgage Loan minus (ii) 0.92%. For federal income
        tax
        purposes, however, the Class A-4 Certificates will have a per annum rate
        equal
        to (i) the Uncertificated Pass-Through Rate on the REMIC I Regular Interest
        A-4
        minus (ii) 0.92%. With respect to any Distribution Date and the Class A-5
        Certificates, a per annum rate equal to 0.92%. 

      

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

       

      “Percentage
        Interest”: With respect to any Certificate (other than a Class R Certificate), a
        fraction, expressed as a percentage, the numerator of which is the Initial
        Certificate Principal Balance or Initial Notional Amount, represented by
        such
        Certificate and the denominator of which is the Original Certificate Principal
        Balance or original Notional Amount, as the case may be, of the related Class.
        With respect to any Class of Class R Certificates, the portion of such Class
        evidenced thereby, expressed as a percentage, as stated on the face of such
        Certificate; provided, however, that the sum of all such percentages for
        each
        such Class totals 100%.

       

      “Permitted
        Investments”: Any one or more of the following obligations or securities
        acquired at a purchase price of not greater than par, regardless of whether
        issued or managed by the Depositor, the Master Servicer, the Trustee or any
        of
        their respective Affiliates or for which an Affiliate of the Trustee serves
        as
        an advisor:

       

      (i) obligations
        of or guaranteed as to principal and interest by the United States or any
        agency
        or instrumentality thereof when such obligations are backed by the full faith
        and credit of the United States;

       

      (ii) repurchase
        agreements on obligations specified in clause (i) maturing not more than
        one
        month from the date of acquisition thereof, provided that the unsecured
        obligations of the party agreeing to repurchase such obligations are at the
        time
        rated by the Rating Agency in its highest short-term rating
        available;

       

      (iii) federal
        funds, certificates of deposit, demand deposits, time deposits and bankers’
acceptances (which shall each have an original maturity of not more than
        90 days
        and, in the case of bankers’ acceptances, shall in no event have an original
        maturity of more than 365 days or a remaining maturity of more than 30 days)
        denominated in United States dollars of any U.S. depository institution or
        trust
        company incorporated under the laws of the United States or any state thereof
        or
        of any domestic branch of a foreign depository institution or trust company;
        provided that the debt obligations of such depository institution or trust
        company (or, if the only Rating Agency is S&P, in the case of the principal
        depository institution in a depository institution holding company, debt
        obligations of the depository institution holding company) at the date of
        acquisition thereof have been rated by the Rating Agency in its highest
        short-term rating available; and provided further that, if the only Rating
        Agency is S&P and if the depository or trust company is a principal
        subsidiary of a bank holding company and the debt obligations of such subsidiary
        are not separately rated, the applicable rating shall be that of the bank
        holding company; and, provided further that, if the original maturity of
        such
        short-term obligations of a domestic branch of a foreign depository institution
        or trust company shall exceed 30 days, the short-term rating of such institution
        shall be A-1+ in the case of S&P if S&P is the Rating
        Agency;

       

      (iv) commercial
        paper and demand notes (having original maturities of not more than 365 days)
        of
        any corporation incorporated under the laws of the United States or any state
        thereof which on the date of acquisition has been rated by the Rating Agency
        in
        its highest short-term rating available; provided that such commercial paper
        shall have a remaining maturity of not more than 30 days;

       

      (v) a
        money
        market fund or a qualified investment fund rated by the Rating Agency in its
        highest long-term rating available; and

       

      (vi) other
        obligations or securities that are acceptable to the Rating Agency as a
        Permitted Investment hereunder and will not reduce the rating assigned to
        any
        Class of Certificates by such Rating Agency below the lower of the then-current
        rating or the rating assigned to such Certificates as of the Closing Date
        by
        such Rating Agency, as evidenced in writing;

       

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

       

      “Permitted
        Transferee”: Any Person other than a Disqualified Organization, an “electing
        large partnership” as defined in Section 775(a) of the Code, or a non-U.S.
        Person.

       

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

       

      “Planned
        Principal Balance”: With respect to the Class A-4 Certificates and each
        Distribution Date, the amount set forth for such Distribution Date on Exhibit
        L
        hereto.

       

      “Pledged
        Assets”: (i) With respect to any Mortgage 100K
        Loan,
        the Securities Account and the financial assets held therein subject to a
        security interest pursuant to the related Mortgage 100K
        Pledge
        Agreement, or (ii) with respect to any Parent Power® Mortgage Loan, the related
        Parent Power® Agreement and collateral pledged pursuant thereto.

       

      “Pledged
        Asset Agreements”: Each Mortgage 100K
        Pledge
        Agreement, Parent Power® Guaranty and Security Agreement for Securities Account
        and Control Agreement, as applicable, for each Pledged Asset Loan.

       

      “Pledged
        Asset Loan”: A Mortgage Loan that is supported by Pledged Assets.

       

      “Pledged
        Asset Servicer”: MLCC.

       

      “Pledged
        Asset Servicing Agreement”: The Additional Collateral Transfer and Servicing
        Agreement, dated as of November 1, 2001, between MLCC and the Master
        Servicer.

       

      “Prepayment
        Distribution Trigger”: With respect to any Distribution Date and any Class of
        Subordinate Certificates (other than the Class B-1 Certificates), a test
        that
        shall be satisfied if the fraction (expressed as a percentage) equal to the
        sum
        of the Certificate Principal Balances of such Class and each Class of
        Subordinate Certificates with a Lower Priority than such Class immediately
        prior
        to such Distribution Date divided by the aggregate Stated Principal Balance
        of
        all of the Mortgage Loans (or related REO Properties) immediately prior to
        such
        Distribution Date is greater than or equal to the sum of the related initial
        Class B Percentages of such Classes of Subordinate Certificates.

       

      “Prepayment
        Interest Shortfall”: As to any Distribution Date and any Mortgage Loan (other
        than a Mortgage Loan relating to an REO Property) that was the subject of
        (a) a
        Principal Prepayment in Full during the related Prepayment Period, an amount
        equal to the excess of one month’s interest at the Net Mortgage Rate on the
        Stated Principal Balance of such Mortgage Loan over the amount of interest
        (adjusted to the Net Mortgage Rate) paid by the Mortgagor for such Prepayment
        Period to the date of such Principal Prepayment in Full or (b) a Curtailment
        during the prior calendar month, an amount equal to one month’s interest at the
        Net Mortgage Rate on the amount of such Curtailment. The obligations of the
        Master Servicer in respect of any Prepayment Interest Shortfall are set forth
        in
        Section 3.24.

       

      “Prepayment
        Period”: With respect to any Distribution Date, the calendar month preceding the
        month in which such Distribution Date occurs.

       

      “Primary
        Insurance Policy”: Each policy of primary guaranty mortgage insurance issued by
        a Qualified Insurer in effect with respect to any Mortgage Loan, or any
        replacement policy therefor obtained by the Master Servicer pursuant to Section
        3.13.

       

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

       

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

       

      “Private
        Certificates”: Any of the Class A-3, Class A-8, Class A-9, Class B-4, Class B-5
        and Class B-6 Certificates.

       

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

       

      “Purchase
        Price”: With respect to any Mortgage Loan or REO Property to be purchased
        pursuant to or as contemplated by Section 2.03 or 10.01, and as confirmed
        by an
        Officers’ Certificate from the Master Servicer to the Trustee, an amount equal
        to the sum of (i) 100% of the Stated Principal Balance thereof as of the
        date of
        purchase (or such other price as provided in Section 10.01), (ii) in the
        case of
        (x) a Mortgage Loan, accrued interest on such Stated Principal Balance at
        the
        applicable Loan Rate in effect from time to time from the Due Date as to
        which
        interest was last covered by a payment by the Mortgagor or an advance by
        the
        Master Servicer, which payment or advance had as of the date of purchase
        been
        distributed pursuant to Section 4.01, through the end of the calendar month
        in
        which the purchase is to be effected, and (y) an REO Property, the sum of
        (1)
        accrued interest on such Stated Principal Balance at the applicable Loan
        Rate in
        effect from time to time from the Due Date as to which interest was last
        covered
        by a payment by the Mortgagor or an advance by the Master Servicer through
        the
        end of the calendar month immediately preceding the calendar month in which
        such
        REO Property was acquired, plus (2) REO Imputed Interest for such REO Property
        for each calendar month commencing with the calendar month in which such
        REO
        Property was acquired and ending with the calendar month in which such purchase
        is to be effected, net of the total of all net rental income, Insurance
        Proceeds, Liquidation Proceeds and Advances that as of the date of purchase
        had
        been distributed as or to cover REO Imputed Interest pursuant to Section
        4.07,
        (iii) any unreimbursed Servicing Advances and Advances and any unpaid Servicing
        Fees allocable to such Mortgage Loan or REO Property, (iv) any amounts
        previously withdrawn from the Collection Account in respect of such Mortgage
        Loan or REO Property pursuant to Section 3.23, and (v) in the case of a Mortgage
        Loan required to be purchased pursuant to Section 2.03, expenses reasonably
        incurred or to be incurred by the Master Servicer or the Trustee in respect
        of
        the breach or defect giving rise to the purchase obligation.

       

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

       

      “Rate/Term
        Refinancing”: A Refinanced Mortgage Loan which is not a Cash-Out
        Refinancing.

       

      “Rating
        Agency”: Fitch or its successors. If such agency or its successors are no longer
        in existence, “Rating Agency” shall be such nationally recognized statistical
        rating agency, or other comparable Person, designated by the Depositor, notice
        of which designation shall be given to the Trustee and Master
        Servicer.

       

      “Realized
        Loss”: With respect to a Liquidated Mortgage Loan, the amount by which the
        remaining unpaid principal balance of the Mortgage Loan exceeds the amount
        of
        Liquidation Proceeds applied to the principal balance of the related Mortgage
        Loan. To the extent the Master Servicer receives Subsequent Recoveries with
        respect to any Mortgage Loan, the amount of the Realized Loss with respect
        to
        that Mortgage Loan will be reduced to the extent such recoveries are applied
        to
        reduce the Certificate Principal Balance of any Class of Certificates on
        any
        Distribution Date.

       

      “Record
        Date”: With respect to all of the Certificates, the last Business Day of the
        month immediately preceding the month in which the related Distribution Date
        occurs.

       

      “Refinanced
        Mortgage Loan”: A Mortgage Loan the proceeds of which were used to satisfy an
        existing mortgage loan on the Mortgaged Property.

       

      “Regular
        Certificate”: Any of the Class A Certificates and Class B
        Certificates.

       

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

       

      “Relief
        Act”: The Servicemembers Civil Relief Act.

       

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

       

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

       

      “REMIC
        I”: The segregated pool of assets, with respect to which a REMIC election is
        to
        be made, consisting of: (i) each Mortgage Loan (exclusive of payments of
        principal and interest due on or before the Cut-off Date, if any, received
        by
        the Master Servicer which shall not constitute an asset of the Trust Fund)
        as
        from time to time are subject to this Agreement and all payments under and
        proceeds of such Mortgage Loans (exclusive of any prepayment fees and late
        payment charges received on the Mortgage Loans), together with all documents
        included in the related Mortgage File, subject to Section 2.01; (ii) such
        funds
        or assets as from time to time are deposited in the Collection Account or
        the
        Distribution Account and belonging to the Trust Fund; (iii) any REO Property;
        (iv) the Primary Hazard Insurance Policies, if any, the Primary Insurance
        Policies, if any, and all other Insurance Policies with respect to the Mortgage
        Loans; (v) the Depositor’s rights in respect of the Pledged Assets and the
        Limited Purpose Surety Bond, including the assignment of the Depositor’s rights
        under the Pledged Asset Servicing Agreement; and (vi) the Depositor’s interest
        in respect of the representations and warranties made by the Sellers in the
        Mortgage Loan Purchase Agreement as assigned to the Trustee pursuant to Section
        2.04 hereof. The Trust Fund shall not include the Buydown Account.

       

      “REMIC
        I
        Regular Interests”: The uncertificated partial undivided beneficial ownership
        interests in REMIC I, designated as REMIC I Regular Interests A-1, A-2, A-3,
        A-4, A-6, A-7, A-8, A-9, B-1, B-2, B-3, B-4, B-5, B-6 and R-II, with respect
        to
        which a REMIC election is to be made.

       

      “REMIC
        II”: The segregated pool of assets consisting of the REMIC I Regular Interests
        conveyed in trust to the Trustee for the benefit of the holders of the Class
        A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class A-6, Class A-7, Class
        A-8, Class A-9, Class B-1, Class B-2, Class B-3, Class B-4, Class B-5, Class
        B-6
        and Class R-II Certificates pursuant to Section 9.01, with respect to which
        a
        separate REMIC election is to be made pursuant to Section 9.01.

       

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

       

      “Remittance
        Report”: A report prepared by the Master Servicer and delivered to the Trustee
        pursuant to Section 4.03.

       

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

       

      “REO
        Account”: The account or accounts maintained by the Master Servicer in respect
        of an REO Property pursuant to Section 3.23.

       

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

       

      “REO
        Imputed Interest”: As to any REO Property, for any calendar month during which
        such REO Property was at any time part of the Trust Fund, one month’s interest
        at the applicable Net Mortgage Rate on the Stated Principal Balance of such
        REO
        Property (or, in the case of the first such calendar month, of the related
        Mortgage Loan if appropriate) as of the close of business on the Distribution
        Date in such calendar month.

       

      “REO
        Principal Amortization”: With respect to any REO Property, for any calendar
        month, the excess, if any, of (a) the aggregate of all amounts received in
        respect of such REO Property during such calendar month, whether in the form
        of
        rental income, sale proceeds (including, without limitation, that portion
        of the
        Termination Price paid in connection with a purchase of all of the Mortgage
        Loans and REO Properties pursuant to Section 10.01 that is allocable to such
        REO
        Property) or otherwise, net of any portion of such amounts (i) payable pursuant
        to Section 3.23 in respect of the proper operation, management and maintenance
        of such REO Property or (ii) payable or reimbursable to the Master Servicer
        pursuant to Section 3.23 for unpaid Servicing Fees in respect of the related
        Mortgage Loan and unreimbursed Servicing Advances and Advances in respect
        of
        such REO Property or the related Mortgage Loan, over (b) the REO Imputed
        Interest in respect of such REO Property for such calendar month.

       

      “REO
        Property”: A Mortgaged Property acquired by the Master Servicer on behalf of the
        Trust Fund through foreclosure or deed-in-lieu of foreclosure, as described
        in
        Section 3.23 hereto.

       

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

       

      “Required
        Surety Payment”: With respect to any Pledged Asset Loan that becomes a
        Liquidated Mortgage Loan, the lesser of (i) the principal portion of the
        Realized Loss with respect to such Mortgage Loan and (ii) the excess, if
        any, of
        (a) the Original Pledged Asset Requirement with respect to such Mortgage
        Loan
        over (b) the net proceeds realized by the Pledged Asset Servicer from the
        related Pledged Assets as set forth in Section 3.16.

       

      “Residential
        Dwelling”: Any one of the following: (i) an attached or detached one-family
        dwelling unit, (ii) two- to four-family dwelling unit, (iii) condominium,
        (iv)
        townhouse, (v) row house, or (vi) individual unit in a planned unit
        development.

       

      “Residual
        Certificate”: Any of the Class R Certificates.

       

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

       

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

       

      “Restricted
        Classes”: With respect to any Class of Certificates, any Classes of Certificates
        with a lower priority of payment relative to such Class.

       

      “S&P”:
        Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and its
        successors.

       

      “Securities
        Account”: With respect to any Pledged Asset Loans, the account, together with
        the financial assets held therein, that is the subject of the related Mortgage
        100K
        Pledge
        Agreement.

       

      “Security
        Agreement”: With respect to a Cooperative Loan, the agreement creating a
        security interest in favor of the originator in the related Cooperative
        Assets.

       

      “Seller”:
        Either of (i) PHH Mortgage Corporation, a New Jersey corporation, or any
        successor in interest or (ii) Bishop’s Gate Residential Mortgage Trust, a
        Delaware business trust, or any successor in interest.

       

      “Senior
        Certificates”: The Class A-1, Class A-2, Class A-3, Class A-4, Class A-5, Class
        A-6, Class A-7, Class A-8, Class A-9 and Class R Certificates.

       

      “Senior
        Interest Distribution Amount”: With respect to each Distribution Date, the
        aggregate amount of the Monthly Interest Distributable Amount to be distributed
        to the Holders of the Senior Certificates for such Distribution
        Date.

       

      “Senior
        Percentage”: As of any Distribution Date, the lesser of 100% and a fraction,
        expressed as a percentage, the numerator of which is the aggregate Certificate
        Principal Balance of the Class A Certificates and Class R Certificates
        immediately prior to such Distribution Date and the denominator of which
        is the
        aggregate Stated Principal Balance of all of the Mortgage Loans or related
        REO
        Properties immediately prior to such Distribution Date.

       

      “Senior
        Prepayment Percentage”: With respect to any Distribution Date, the percentage
        indicated below:

       

      
        	
                Distribution
                  Date

              	
                Senior
                  Prepayment Percentage

              
	
                December
                  2006
                  through November
                  2011

              	
                100%

              
	
                December
                  2011 through
                  November
                  2012

              	
                Senior
                  Percentage, plus 70% of the Subordinate Percentage

              
	
                December
                  2012 through
                  November
                  2013

              	
                Senior
                  Percentage, plus 60% of the Subordinate Percentage

              
	
                December
                  2013
                  through November
                  2014

              	
                Senior
                  Percentage, plus 40% of the Subordinate Percentage

              
	
                December
                  2014
                  through November
                  2015

              	
                Senior
                  Percentage, plus 20% of the Subordinate Percentage

              
	
                December
                  2015
                  and thereafter

              	
                Senior
                  Percentage

              

      

      

      provided,
        however, (i) that any scheduled reduction to the Senior Prepayment Percentage
        described above shall not occur as of any Distribution Date unless either
        (a)(1)(x) the outstanding principal balance of Mortgage Loans Delinquent
        60 days
        or more (including Mortgage Loans in foreclosure and REO Property) averaged
        over
        the last six months as a percentage of the aggregate outstanding Certificate
        Principal Balance of the Class B Certificates as of such Distribution Date,
        is
        less than 50%, or (y) the outstanding principal balance of Mortgage Loans
        Delinquent 60 days or more (including Mortgage Loans in foreclosure and REO
        Property) averaged over the last six months, as a percentage of the aggregate
        outstanding principal balance of all Mortgage Loans as of such Distribution
        Date, does not exceed 2% and (2) Realized Losses on the Mortgage Loans to
        date
        for such Distribution Date if occurring during the sixth, seventh, eighth,
        ninth
        or tenth year (or any year thereafter) after the Closing Date are less than
        30%,
        35%, 40%, 45% or 50%, respectively, of the sum of the Initial Certificate
        Principal Balances of the Class B Certificates or (b) (1) the aggregate
        outstanding principal balance of the Mortgage Loans Delinquent 60 days or
        more
        (including Mortgage Loans in foreclosure and REO Property) averaged over
        the
        last six months, as a percentage of the aggregate outstanding principal balance
        of all Mortgage Loans as of such Distribution Date, does not exceed 4% and
        (2)
        Realized Losses on the Mortgage Loans to date for such Distribution Date
        if
        occurring during the sixth, seventh, eighth, ninth or tenth year (or any
        year
        thereafter) after the Closing Date are less than 10%, 15%, 20%, 25% or 30%,
        respectively, of the sum of the Initial Certificate Principal Balances of
        the
        Class B Certificates and (ii) that for any Distribution Date on which the
        Senior
        Percentage is greater than the Original Senior Percentage, the Senior Prepayment
        Percentage for such Distribution Date shall be 100%. Notwithstanding the
        foregoing, upon the reduction of the aggregate Certificate Principal Balance
        of
        the Senior Certificates to zero, the Senior Prepayment Percentage will equal
        0%.

       

      “Senior
        Principal Distribution Amount”: As to any Distribution Date, the lesser of (a)
        the balance of the Available Distribution Amount remaining after the
        distribution of all amounts required to be distributed pursuant to Section
        4.01(c)(i) and (b) the sum of the following:

       

      (A) the
        Senior Percentage for such Distribution Date times the sum of the
        following:

       

      (1) the
        principal portion of each Monthly Payment due during the related Due Period
        on
        each Outstanding Mortgage Loan whether or not received on or prior to the
        related Determination Date, minus the principal portion of any Debt Service
        Reduction, which together with other Bankruptcy Losses exceeds the Bankruptcy
        Amount;

       

      (2) the
        Stated Principal Balance of any Mortgage Loan repurchased during the related
        Prepayment Period pursuant to Section 2.02, 2.03, 3.15 or 3.16; and

       

      (3) the
        principal portion of all other unscheduled collections (other than Principal
        Prepayments in Full and Curtailments and amounts received in connection with
        a
        Cash Liquidation or REO Disposition of a Mortgage Loan, including without
        limitation Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries
        and
        REO Proceeds), received during the related Prepayment Period to the extent
        applied by the Master Servicer as recoveries of principal of the related
        Mortgage Loan pursuant to Section 3.16;

       

      (B) with
        respect to each Mortgage Loan for which a Cash Liquidation or a REO Disposition
        occurred during the related Prepayment Period and did not result in any Excess
        Special Hazard Losses, Excess Fraud Losses, Excess Bankruptcy Losses or
        Extraordinary Losses, an amount equal to the lesser of (a) the Senior Percentage
        for such Distribution Date times the Stated Principal Balance of such Mortgage
        Loan and (b) the Senior Prepayment Percentage for such Distribution Date
        times
        the related unscheduled collections (including without limitation Insurance
        Proceeds, Liquidation Proceeds and REO Proceeds) to the extent applied by
        the
        Master Servicer as recoveries of principal of the related Mortgage Loan pursuant
        to Section 3.16;

       

      (C) the
        Senior Prepayment Percentage for such Distribution Date times the aggregate
        of
        all Principal Prepayments in Full and Curtailments received in the related
        Prepayment Period with respect to the Mortgage Loans;

       

      (D) any
        Excess Subordinate Principal Amount for such Distribution Date; and

       

      (E) any
        amounts described in clauses (A), (B) or (C) of this definition, as determined
        for any previous Distribution Date, which remain unpaid after application
        of
        amounts previously distributed pursuant to this clause (E) to the extent
        that
        such amounts are not attributable to Realized Losses which have been allocated
        to the Class B Certificates;

       

      “Servicing
        Account”: The account or accounts created and maintained pursuant to Section
        3.09.

       

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

       

      “Servicing
        Advances”: The reasonable “out-of-pocket” costs and expenses incurred by the
        Master Servicer in connection with a default, delinquency or other unanticipated
        event by the Master Servicer in the performance of its servicing obligations,
        including, but not limited to, (a) reasonable attorneys’ fees and (b) the cost
        of (i) the preservation, restoration and protection of a Mortgaged Property,
        (ii) any enforcement or judicial proceedings, including foreclosures, in
        respect
        of a particular Mortgage Loan, including any expenses incurred in relation
        to
        any such proceedings that result from the Mortgage Loan being registered
        on the
        MERS System, (iii) the management (including reasonable fees in connection
        therewith) and liquidation of any REO Property, and (iv) the performance
        of its
        obligations under Section 3.01, Section 3.09, Section 3.13, Section 3.14,
        Section 3.16 and Section 3.23. The Master Servicer shall not be required
        to make
        any Servicing Advance in respect of a Mortgage Loan or REO Property that,
        in the
        good faith business judgment of the Master Servicer, would not be ultimately
        recoverable from related Insurance Proceeds or Liquidation Proceeds on such
        Mortgage Loan or REO Property as provided herein.

       

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

       

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

       

      “Servicing
        Fee Rate”: With respect to each Mortgage Loan, a rate equal to 0.25% per
        annum.

       

      “Special
        Hazard Amount”: As of any Distribution Date, an amount equal to
        $840,237 minus
        the
        sum of (i) the aggregate amount of Special Hazard Losses allocated solely
        to one
        or more specific Classes of Certificates in accordance with Section 4.02
        and
        (ii) the Adjustment Amount (as defined below) as most recently calculated.
        For
        each anniversary of the Cut-off Date, the Adjustment Amount shall be equal
        to
        the amount, if any, by which the amount calculated in accordance with the
        preceding sentence (without giving effect to the deduction of the Adjustment
        Amount for such anniversary) exceeds the greater of (A) the greatest of (i)
        twice the outstanding principal balance of the Mortgage Loan in the Trust
        Fund
        which has the largest outstanding principal balance on the Distribution Date
        immediately preceding such anniversary, (ii) the product of 1.00% multiplied by
        the outstanding principal balance of all Mortgage Loans on the Distribution
        Date
        immediately preceding such anniversary and (iii) the aggregate outstanding
        principal balance (as of the immediately preceding Distribution Date) of
        the
        Mortgage Loans in any single five-digit California zip code area with the
        largest amount of Mortgage Loans by aggregate principal balance as of such
        anniversary and (B) the greater of (i) the product of 0.50% multiplied by
        the
        outstanding principal balance of all Mortgage Loans on the Distribution Date
        immediately preceding such anniversary multiplied by a fraction, the numerator
        of which is equal to the aggregate outstanding principal balance (as of the
        immediately preceding Distribution Date) of all of the Mortgage Loans secured
        by
        Mortgaged Properties located in the State of California divided by the aggregate
        outstanding principal balance (as of the immediately preceding Distribution
        Date) of all of the Mortgage Loans, expressed as a percentage, and the
        denominator of which is equal to 19.89% (which percentage is equal to the
        percentage of Mortgage Loans initially secured by Mortgaged Properties located
        in the State of California) and (ii) the aggregate outstanding principal
        balance
        (as of the immediately preceding Distribution Date) of the largest Mortgage
        Loan
        secured by a Mortgaged Property located in the State of California.

       

      The
        Special Hazard Amount may be further reduced by the Master Servicer (including
        accelerating the manner in which coverage is reduced) provided that prior
        to any
        such reduction, the Master Servicer shall (i) obtain written confirmation
        from
        the Rating Agency that such reduction shall not reduce the rating assigned
        to
        any Class of Certificates by such Rating Agency below the lower of the
        then-current rating or the rating assigned to such Certificates as of the
        Closing Date by such Rating Agency and (ii) provide a copy of such written
        confirmation to the Trustee.

       

      “Special
        Hazard Losses”: Realized Losses in respect of Special Hazard Mortgage
        Loans.

       

      “Special
        Hazard Mortgage Loan”: A Liquidated Mortgage Loan as to which the ability to
        recover the full amount due thereunder was substantially unpaired by a hazard
        not insured against under a standard hazard insurance policy.

       

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

       

      “Stated
        Principal Balance”: With respect 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 prepayments and
        Liquidation Proceeds received and to the payment of principal due on such
        Due
        Date and irrespective of any delinquency in payment by the related
        Mortgagor.

       

      “Stayed
        Funds”: If the Master Servicer is the subject of a proceeding under the federal
        Bankruptcy Code and the mailing of a remittance by the Master Servicer pursuant
        to this Agreement is prohibited by Section 362 of the federal Bankruptcy
        Code,
        funds which are in the custody of the Master Servicer, a trustee in bankruptcy
        or a federal bankruptcy court and should have been the subject of such
        remittance absent such prohibition.

       

      “Stepdown
        Percentage”: With respect to any Distribution Date, the percentage indicated
        below:

       

      
        	
                Distribution
                  Date

              	
                Stepdown
                  Percentage

              
	
                December
                  2006
                  through November
                  2011

              	
                0%

              
	
                December
                  2011
                  through November
                  2012

              	
                30%

              
	
                December
                  2012
                  through November
                  2013

              	
                40%

              
	
                December
                  2013
                  through November
                  2014

              	
                60%

              
	
                December
                  2014
                  through November
                  2015

              	
                80%

              
	
                December
                  2015
                  and thereafter

              	
                100%

              

      

      

      “Subordinate
        Certificates”: The Class B-1, Class B-2, Class B-3, Class B-4, Class B-5 and
        Class B-6 Certificates.

       

      “Subordinate
        Percentage”: For any Distribution Date, the difference between 100% and the
        Senior Percentage for such date.

       

      “Subordinate
        Prepayment Percentage”: With respect to any Distribution Date and each Class of
        Subordinate Certificates, under the applicable circumstances set forth below,
        the respective percentages set forth below:

       

      (i) For
        any
        Distribution Date prior to the Distribution Date in December 2011,
        0%.

       

      (ii) For
        any
        Distribution Date for which clause (i) does not apply, and on which any Class
        of
        Subordinate Certificates are outstanding:

       

      (a) in
        the
        case of the Class of Subordinate Certificates then outstanding with the Highest
        Priority and each other Class of Subordinate Certificates for which the related
        Prepayment Distribution Trigger has been satisfied, a fraction, expressed
        as a
        percentage, the numerator of which is the Certificate Principal Balance of
        such
        Class immediately prior to such date and the denominator of which is the
        sum of
        the Certificate Principal Balances immediately prior to such date of (1)
        the
        Class of Subordinate Certificates then outstanding with the Highest Priority
        and
        (2) all other Classes of Subordinate Certificates for which the respective
        Prepayment Distribution Triggers have been satisfied; and

       

      (b) in
        the
        case of each other Class of Subordinate Certificates for which the Prepayment
        Distribution Triggers have not been satisfied, 0%; and

       

      (iii) Notwithstanding
        the foregoing, if the application of the foregoing percentages on any
        Distribution Date as provided in Section 4.01(c) of this Agreement (determined
        without regard to the proviso to the definition of “Subordinate Principal
        Distribution Amount”) would result in a distribution in respect of principal of
        any Class or Classes of Subordinate Certificates in an amount greater than
        the
        remaining Certificate Principal Balance thereof (any such class, a “Maturing
        Class”), then: (a) the Subordinate Prepayment Percentage of each Maturing Class
        shall be reduced to a level that, when applied as described above, would
        exactly
        reduce the Certificate Principal Balance of such Class to zero; (b) the
        Subordinate Prepayment Percentage of each other Class of Subordinate
        Certificates (any such Class, a “Non-Maturing Class”) shall be recalculated in
        accordance with the provisions in paragraph (ii) above, as if the Certificate
        Principal Balance of each Maturing Class had been reduced to zero (such
        percentage as recalculated, the “Recalculated Percentage”); (c) the total amount
        of the reductions in the Subordinate Prepayment Percentages of the Maturing
        Class or Classes pursuant to clause (a) of this sentence, expressed as an
        aggregate percentage, shall be allocated among the Non-Maturing Classes in
        proportion to their respective Recalculated Percentages (the portion of such
        aggregate reduction so allocated to any Non-Maturing Class, the “Adjustment
        Percentage”); and (d) for purposes of such Distribution Date, the Subordinate
        Prepayment Percentage of each Non-Maturing Class shall be equal to the sum
        of
        (1) the Subordinate Prepayment Percentage thereof, calculated in accordance
        with
        the provisions in paragraph (ii) above as if the Certificate Principal Balance
        of each Maturing Class had not been reduced to zero, plus (2) the related
        Adjustment Percentage.

       

      “Subordinate
        Principal Distribution Amount”: With respect to any Distribution Date and each
        Class of Class B Certificates, the sum of the following:

       

      (i) the
        product of (x) the related Class B Percentage for such Class and (y) the
        aggregate of the following amounts:

       

      (1) the
        principal portion of each Monthly Payment due during the related Due Period
        on
        each Outstanding Mortgage Loan, whether or not received on or prior to the
        related Determination Date minus the principal portion of any Debt Service
        Reduction, which together with other Bankruptcy Losses exceeds the Bankruptcy
        Amount;

       

      (2) the
        Stated Principal Balance of any Mortgage Loan repurchased during the related
        Prepayment Period pursuant to Section 2.02, 2.03, 3.15 or 3.16; and

       

      (3) the
        principal portion of all other unscheduled collections (other than Principal
        Prepayments in Full and Curtailments and amounts received in connection with
        a
        Cash Liquidation or REO Disposition of a Mortgage Loan, including without
        limitation Insurance Proceeds, Liquidation Proceeds, Subsequent Recoveries
        and
        REO Proceeds) received during the related Prepayment Period to the extent
        applied by the Master Servicer as recoveries of principal of the related
        Mortgage Loan pursuant to Section 3.16;

       

      (ii) such
        Class’s pro rata share, based on the Certificate Principal Balance of each Class
        of Class B Certificates then outstanding, of, with respect to each Mortgage
        Loan, for which a Cash Liquidation or a REO Disposition occurred during the
        related Prepayment Period and did not result in any Excess Special Hazard
        Losses, Excess Fraud Losses, Excess Bankruptcy Losses or Extraordinary Losses,
        an amount equal to the related unscheduled collections (including without
        limitation Insurance Proceeds, Liquidation Proceeds and REO Proceeds) to
        the
        extent applied by the Master Servicer as recoveries of principal of the related
        Mortgage Loan pursuant to Section 3.16, to the extent such collections are
        not
        otherwise distributed to the Senior Certificates;

       

      (iii) the
        product of (x) the related Subordinate Prepayment Percentage for such
        Distribution Date and (y) the aggregate of all Principal Prepayments in Full
        and
        Curtailments on the Mortgage Loans received in the related Prepayment Period,
        to
        the extent not payable to the Senior Certificates; and

       

      (iv) if
        such
        Class is the Class of Class B Certificates then outstanding with the Highest
        Priority, an amount equal to the Excess Subordinate Principal Amount;
        and

       

      (v) any
        amounts described in clauses (i), (ii) and (iii) as determined for any previous
        Distribution Date, that remain undistributed to the extent that such amounts
        are
        not attributable to Realized Losses which have been allocated to a Class
        of
        Subordinate Certificates;

       

      provided,
        however, that such amount shall in no event exceed the outstanding Certificate
        Principal Balance of such Class of Certificates immediately prior to such
        date.

       

      “Subsequent
        Recoveries”: Any amount recovered by the Master Servicer (net of reimbursable
        expenses) with respect to a Liquidated Mortgage Loan with respect to which
        a
        Realized Loss was incurred after the liquidation or disposition of such Mortgage
        Loan.

       

      “Sub-Servicer”:
        Any Person with which the Master Servicer has entered into a Sub-Servicing
        Agreement and which meets the qualifications of a Sub-Servicer pursuant to
        Section 3.02.

       

      “Sub-Servicing
        Account”: An account established by a Sub-Servicer which meets the requirements
        set forth in Section 3.08 and is otherwise acceptable to the Master
        Servicer.

       

      “Sub-Servicing
        Agreement”: The written contract between the Master Servicer and a Sub-Servicer
        relating to servicing and administration of certain Mortgage Loans as provided
        in Section 3.02.

       

      “Substitution
        Shortfall Amount”: As defined in Section 2.03(c) hereof.

       

      “Super
        Senior Optimal Percentage”: As to any Distribution Date on and after the Credit
        Support Depletion Date and the Class A-1 Certificates, a percentage expressed
        as
        a fraction, the numerator of which is the Certificate Principal Balance of
        the
        Class A-1 Certificates immediately prior to that Distribution Date and the
        denominator of which is the aggregate Certificate Principal Balance of the
        Senior Certificates immediately prior to that Distribution Date.

       

      “Super
        Senior Optimal Principal Distribution Amount”: As to any Distribution Date on
        and after the Credit Support Depletion Date and the Class A-1 Certificates,
        an
        amount equal to the product of (a) the then-applicable Super Senior Optimal
        Percentage and (b) the Senior Principal Distribution Amount.

       

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

       

      “Tax
        Returns”: The federal income tax return on Internal Revenue Service Form 1066,
        U.S. Real Estate Mortgage Investment Conduit Income Tax Return, including
        Schedule Q thereto, Quarterly Notice to Residual Interest Holders of the
        REMIC
        Taxable Income or Net Loss Allocation, or any successor forms, to be filed
        on
        behalf of the Trust in its capacity as a REMIC under the REMIC Provisions,
        together with any and all other information reports or returns that may be
        required to be famished to the Certificateholders or filed with the Internal
        Revenue Service or any other governmental taxing authority under any applicable
        provisions of federal, state or local tax laws.

       

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

       

      “Transition
        Cost: Any documented fees, expenses and allocated costs reasonably incurred
        by a
        successor master servicer or the Trustee in connection with a transfer of
        servicing from the Master Servicer to a successor master servicer, including
        without limitation, any costs or expenses associated with the complete transfer
        of all master servicing data and the completion, correction or manipulation
        of
        such master servicing data as may be required by the Trustee to correct any
        errors or insufficiencies in the master servicing data or otherwise to enable
        the Trustee to master service the Mortgage Loans properly and
        effectively.

       

      “Trustee
        Fee”: With respect to each Mortgage Loan and for any calendar month, an amount
        equal to one month’s interest at the applicable Trustee Fee Rate on the same
        principal amount on which interest on such Mortgage Loan accrues for such
        calendar month. Notwithstanding the foregoing, in no event shall the aggregate
        Trustee Fee in a calendar year be less than $7,000.

       

      “Trustee
        Fee Rate”: With respect to any Mortgage Loan, a rate equal to 0.0125% per
        annum.

       

      “Trust
        Fund”: REMIC I, REMIC II and the Buydown Account, if any.

       

      “Uncertificated
        Monthly Interest Distributable Amount”: An amount equal to the interest accrued
        during the related Interest Accrual Period on the Uncertificated Principal
        Balance of each Class of REMIC I Regular Interest at the then-applicable
        Uncertificated Pass-Through Rate. The Uncertificated Monthly Interest
        Distributable Amount on any Class of REMIC I Regular Interest will be reduced
        by
        the amount of (i) Prepayment Interest Shortfalls (to the extent not offset
        by
        the Master Servicer with a payment of Compensating Interest as provided in
        Section 3.24), (ii) the interest portion (adjusted to the Net Mortgage Rate)
        of
        Realized Losses (including Excess Losses) not allocated solely to one or
        more
        specific Classes of Certificates pursuant to Section 4.02, (iii) the interest
        portion of Advances previously made with respect to a Mortgage Loan or REO
        Property which remained unreimbursed following the Cash Liquidation or REO
        Disposition of such Mortgage Loan or REO Property that were made with respect
        to
        delinquencies that were ultimately determined to be Excess Losses and (iv)
        any
        other interest shortfalls not covered by the subordination provided by the
        Class
        B Certificates, including Relief Act Shortfalls, with all such reductions
        allocated among all of the REMIC I Regular Interests in proportion to their
        respective amounts of Uncertificated Monthly Interest Distributable Amount
        payable on such Distribution Date which would have resulted absent such
        reductions.

       

      “Uncertificated
        Pass-Through Rate”: With respect to each REMIC I Regular Interest and any
        Distribution Date, a per annum rate equal to the weighted average of the
        Net
        Mortgage Rate on each mortgage loan as of the Due Date in the related Due
        Period, weighted on the basis of the respective Stated Principal Balances
        of
        such Mortgage Loans as of the day immediately preceding such Distribution
        Date
        (or, with respect to the initial Distribution Date, at the close of business
        on
        the Cut-off Date).

       

      “Uncertificated
        Principal Balance”: The principal amount of any REMIC I Regular Interest
        outstanding as of any date of determination. The Uncertificated Principal
        Balance of each REMIC I Regular Interest initially shall be equal to the
        amount
        set forth in the Preliminary Statement with respect to such REMIC I Regular
        Interest, and thereafter shall be reduced by all distributions of principal
        made
        on such REMIC I Regular Interest and shall be further reduced by Realized
        Losses
        allocated thereto. The Uncertificated Principal Balance of each REMIC I Regular
        Interest shall never be less than zero.

       

      “Underwriting
        Guide”: The underwriting guide of the Master Servicer, as revised from time to
        time.

       

      “Uninsured
        Cause” Any cause of damage to property subject to a Mortgage such that the
        complete restoration of such property is not fully reimbursable by the hazard
        insurance policies.

       

      “United
        States Person” or “U.S. Person”: A citizen or resident of the United States, a
        corporation or partnership (including an entity treated as a corporation
        or
        partnership for federal income tax purposes) created or organized in, or
        under
        the laws of, the United States or any state thereof or the District of Columbia
        (except, in the case of a partnership, to the extent provided in regulations),
        provided that, for purposes solely of the Class R Certificates, no partnership
        or other entity treated as a partnership for United States federal income
        tax
        purposes shall be treated as a United States Person unless all persons that
        own
        an interest in such partnership either directly or through any entity that
        is
        not a corporation for United States federal income tax purposes are United
        States Persons, or an estate whose income is subject to United States federal
        income tax regardless of its source, or a trust if (i) a court within the
        United
        States is able to exercise primary supervision over the administration of
        the
        trust and one or more such United States Persons have the authority to control
        all substantial decisions of the trust or (ii) it is a trust which was in
        existence on August 20, 1996, and was treated as a United States person,
        for
        federal income tax purposes, on the previous day, and elected to continue
        to be
        so treated.

       

      “Value”:
        With respect to any Mortgaged Property, the value thereof as determined by
        an
        independent appraisal (or other collateral assessment, permitted by the
        Underwriting Guide) made at the time of the origination of the related Mortgage
        Loan; except that, with respect to any Mortgage Loan that is a purchase money
        mortgage loan, the lesser of (i) the value thereof as determined by an
        independent appraisal (or other collateral assessment, permitted by the
        Underwriting Guide) made at the time of the origination of such Mortgage
        Loan,
        if any, and (ii) the sales price of the related Mortgaged Property.

       

      “Voting
        Rights”: The portion of the voting rights of all of the Certificates which is
        allocated to any Certificate. The Voting Rights allocated among Holders of
        such
        Certificates outstanding shall be the fraction, expressed as a percentage,
        the
        numerator of which is the aggregate Certificate Principal Balance of all
        the
        Certificates of such Class then outstanding and the denominator of which
        is the
        aggregate Certificate Principal Balance of all the Certificates then
        outstanding. 98% of all Voting Rights will be allocated among all holders
        of the
        Certificates (other than the Class R Certificates and Class A-5 Certificates)
        in
        proportion to their then outstanding Certificate Principal Balances. 1.0%
        of all
        Voting Rights will be allocated to the holders of the Class A-5 Certificates.
        0.50% and 0.50% of all Voting Rights will be allocated to the holders of
        the
        Class R-I Certificates and Class R-II Certificates, respectively, in proportion
        to the Percentage Interests evidenced by their respective Certificates;
        provided, however, that any Certificate registered in the name of the Master
        Servicer, the Depositor or the Trustee or any of their respective affiliates
        shall not be included in the calculation of Voting Rights.

       

      “Written
        Order to Authenticate”: A written order by which the Depositor directs the
        Trustee to issue the Certificates.

       

      Section
        1.02 Accounting.

       

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

       

      

      ARTICLE
        II

      CONVEYANCE
        OF MORTGAGE LOANS;

      ORIGINAL
        ISSUANCE OF CERTIFICATES

       

      Section
        2.01 Conveyance
        of Mortgage Loans.

       

      The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey to the Trustee without recourse
        for the benefit of the Certificateholders all the right, title and interest
        of
        the Depositor, including any security interest therein for the benefit of
        the
        Depositor, in and to the Mortgage Loans identified on the Mortgage Loan
        Schedule, the rights of the Depositor under the Mortgage Loan Purchase Agreement
        (except Section 3.2 thereof), the interest in the Limited Purpose Surety
        Bond
        transferred to the Trustee pursuant to Section 2.03(e) and all other assets
        included or to be included in the Trust Fund. Such assignment includes all
        interest and principal received by the Depositor or the Master Servicer on
        or
        with respect to the Mortgage Loans (but excluding any payments of principal
        and
        interest due on or prior to the Cut-off Date). The Depositor herewith delivers
        to the Trustee an executed copy of the Mortgage Loan Purchase
        Agreement.

       

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

       

      In
        connection with the transactions contemplated by this Agreement, PHH Mortgage
        Corporation and the Trustee shall enter into an Assignment, Assumption and
        Recognition Agreement with MLCC, in the form of Exhibit K hereto, pursuant
        to
        which PHH Mortgage Corporation shall assign to the Trustee, for the benefit
        of
        the Certificateholders, all of its right, title and interest in and to the
        Pledged Asset Servicing Agreement with respect to the Pledged Asset Loans,
        and
        the Trustee shall assume all of PHH Mortgage Corporation’s obligations under the
        Pledged Asset Servicing Agreement with respect to the Pledged Asset Loans
        from
        and after the date hereof.

       

      In
        connection with the transfer and assignment described herein, the Master
        Servicer on behalf of the Depositor, shall deliver to, and deposit with,
        the
        Trustee, the following documents or instruments:

       

      (A) with
        respect to each Mortgage Loan, other than a Cooperative Loan:

       

      (i) the
        original Mortgage Note endorsed “Pay to the order of Citibank, N.A., as Trustee
        for the registered holders of the PHHMC Mortgage Pass-Through Certificates,
        Series 2006-4, without recourse”, or endorsed “Pay to the order
        of_____________________ without recourse,” and signed in the name of the last
        named endorsee by an authorized officer, together with all prior and intervening
        endorsements showing a complete chain of endorsement from the originator
        to the
        Person so endorsing to the last endorsee;

       

      (ii) the
        original Mortgage, noting 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 thereon which have been recorded,
        with
        evidence of recording thereon or a copy of the Mortgage certified by the
        public
        recording office in which such Mortgage has been recorded;

       

      (iii) Unless
        the Mortgage Loan is registered on the MERS® System, an original Assignment of
        the Mortgage (A) executed in the following form “Citibank, N.A., as Trustee for
        the registered holders of the PHHMC Mortgage Pass-Through Certificates, Series
        2006-4”, or (B) in blank, which assignment appears to be in form and substance
        acceptable for recording;

       

      (iv) the
        original recorded Assignment or Assignments of the Mortgage showing a complete
        chain of assignment from the originator to the Person assigning the Mortgage
        to
        the Trustee (or to MERS, if the Mortgage Loan is registered on the MERS® System
        and noting the presence of a MIN) as contemplated by the immediately preceding
        clause (iii), if applicable and only to the extent available to the Depositor
        with evidence of recording thereon;

       

      (v) the
        originals of all assumption, modification, consolidation or extension
        agreements, with evidence of recording thereon, if any;

       

      (vi) a
        copy of
        any guarantee (other than Pledged Assets) executed in connection with the
        Mortgage Note;

       

      (vii) the
        original of any security agreement, chattel mortgage or equivalent document
        executed in connection with the Mortgage;

       

      (viii) the
        original power of attorney, if applicable; and

       

      (ix) if
        such
        Mortgage Loan is a Buydown Mortgage Loan (as shown in the Mortgage Loan
        Schedule), the original Buydown Agreement or a copy thereof; and

       

      (B) in
        addition, with respect to each Mortgage Loan that is a Pledged Asset Loan
        (as
        indicated on the Mortgage Loan Schedule):

       

      (i) a
        copy of
        the related Mortgage 100K
        Pledge
        Agreement or Parent Power Agreement, as applicable; and

       

      (ii) a
        copy of
        the related UCC-1, to the extent that MLCC was required to deliver such UCC-1
        to
        the Master Servicer, and an original form UCC-3, if applicable, to the extent
        that MLCC was required to deliver such UCC-3 to the Master Servicer;
        or

       

      (C) with
        respect to each Mortgage Loan that is a Cooperative Loan (as indicated on
        the
        Mortgage Loan Schedule):

       

      (i) the
        original Mortgage Note endorsed “Pay to the order of Citibank, N.A., as Trustee
        for the registered holders of the PHHMC Mortgage Pass-Through Certificates,
        Series 2006-4, without recourse”, or endorsed “Pay to the order of
        _____________________ without recourse,” and signed in the name of the last
        named endorsee by an authorized officer, together with all prior and intervening
        endorsements showing a complete chain of endorsement from the originator
        to the
        Person so endorsing to the last endorsee;

       

      (ii) the
        original duly executed assignment of Security Agreement to the
        Trustee;

       

      (iii) the
        acknowledgment copy of the original executed Form UCC-1 (or certified copy
        thereof) with respect to the Security Agreement, and any required continuation
        statements;

       

      (iv) the
        acknowledgment copy of the original executed Form UCC-3 with respect to the
        security agreement, indicating the Trustee as the assignee of the secured
        party;

       

      (v) the
        stock
        certificate representing the Cooperative Assets allocated to the cooperative
        unit, with a stock power in blank attached;

       

      (vi) the
        original collateral assignment of the proprietary lease by Mortgagor to the
        originator;

       

      (vii) a
        copy of
        the recognition agreement;

       

      (viii) if
        applicable and to the extent available, the original intervening assignments,
        including warehousing assignments, if any, showing, to the extent available,
        an
        unbroken chain of the related Mortgage Loan to the Trustee, together with
        a copy
        of the related Form UCC-3 with evidence of filing thereon; and

       

      (ix) the
        originals of each assumption, modification or substitution agreement, if
        any,
        relating to the Mortgage Loan;

       

      provided,
        however, that in lieu of the foregoing, the Depositor may deliver the following
        documents, under the circumstances set forth below: (x) in lieu of the original
        Mortgage, assignments to the Trustee or intervening assignments thereof which
        have been delivered, are being delivered or will, upon receipt of recording
        information relating to the Mortgage required to be included thereon, be
        delivered to recording offices for recording and have not been returned to
        the
        Depositor within 270 days of the Closing Date, the Depositor may deliver
        a true
        copy thereof with an Officer’s Certificate certifying that such Mortgage,
        assignment to the Trustee or intervening assignment has been delivered to
        the
        appropriate recording office for recording; and (y) in lieu of the Mortgage,
        assignment to the Trustee or intervening assignments thereof, if the applicable
        jurisdiction retains the originals of such documents (as evidenced by a
        certification from the Depositor or the Master Servicer, to such effect)
        the
        Depositor may deliver photocopies of such documents containing an original
        certification by the judicial or other governmental authority of the
        jurisdiction where such documents were recorded; and provided, further, however,
        that in the case of Mortgage Loans which have been prepaid in full after
        the
        Cut-off Date and prior to the Closing Date, the Depositor, in lieu of delivering
        the above documents, may deliver to the Trustee a certification to such effect
        and shall deposit all amounts paid in respect of such Mortgage Loans in the
        Distribution Account on the Closing Date. The Depositor shall deliver such
        original documents (including any original documents as to which certified
        copies had previously been delivered) to the Trustee promptly after they
        are
        received.

       

      The
        Depositor may, in lieu of delivering the original of the documents set forth
        in
        Section 2.01(A), (B) and (C) (other than Section 2.01(A)(i) and Section
        2.01(C)(i)) (or copies thereof as permitted by this Section 2.01) to the
        Trustee, deliver such documents to the Master Servicer, and the Master Servicer
        shall hold such documents in trust for the use and benefit of all present
        and
        future Certificateholders until such time as is set forth in the next sentence.
        Within 60 days following the earlier of (i) the receipt of the original of
        all
        of the documents or instruments set forth in Section 2.01(A), (B) and (C)
        (other
        than Section 2.01(A)(i) and Section 2.01(C)(i)) (or copies thereof as permitted
        by such Section) for any Mortgage Loan and (ii) a written request by the
        Trustee
        to deliver those documents with respect to any or all of the Mortgage Loans
        then
        being held by the Master Servicer, the Master Servicer shall deliver a complete
        set of such documents to the Trustee.

       

      The
        Depositor shall, at its expense, cause the Assignment of the Mortgage to
        the
        Trustee to be recorded not later than 270 days after the Closing Date, unless
        (a) such recordation is not required by the Rating Agency or an Opinion of
        Counsel has been provided as set forth below in this Section 2.01 or (b)
        MERS is
        identified on the Mortgage or on a properly recorded assignment of the Mortgage
        as the mortgagee of record. With respect to the Cooperative Loans, the Depositor
        will, promptly after the Closing Date, cause the related financing statements
        (if not yet filed) and an assignment thereof from the Depositor to the Trustee
        to be filed in the appropriate offices. The Depositor need not cause to be
        recorded any assignment in any jurisdiction under the laws of which, as
        evidenced by an Opinion of Counsel delivered by the Depositor to the Trustee
        and
        the Rating Agency, the recordation of such assignment is not necessary to
        protect the Trustee’s interest in the related Mortgage Loan; provided, however,
        notwithstanding the delivery of any Opinion of Counsel, each assignment shall
        be
        submitted for recording by the Depositor in the manner described above, at
        no
        expense to the Trust Fund or the Trustee, upon the earliest to occur of:
        (i)
        reasonable direction by the Holders of Certificates evidencing Fractional
        Undivided Interests aggregating not less than 25% of the Trust Fund, (ii)
        the
        occurrence of a Master Servicer Event of Termination, (iii) the occurrence
        of a
        bankruptcy, insolvency or foreclosure relating to the Depositor, (iv) the
        occurrence of a servicing transfer as described in Section 7.02 hereof and
        (v)
        with respect to any one assignment, the occurrence of a bankruptcy, insolvency
        or foreclosure relating to the Mortgagor under the related Mortgage.
        Notwithstanding the foregoing, if the Depositor fails to pay the cost of
        recording the assignments, such expense will be paid by the Trustee and the
        Trustee shall be reimbursed for such expenses by the Trust Fund in accordance
        with Section 8.05.

       

      In
        connection with the assignment of any Mortgage Loan registered on the MERS®
System, the Depositor further agrees that it will cause, at the Depositor’s own
        expense, within 30 Business Days after the Closing Date, the MERS® System to
        indicate that such Mortgage Loans have been assigned by the Depositor to
        the
        Trustee in accordance with this Agreement for the benefit of the
        Certificateholders by including (or deleting, in the case of Mortgage Loans
        which are repurchased in accordance with this Agreement) in such computer
        files
        (a) the code in the field which identifies the specific Trustee and (b) the
        code
        in the field “Pool Field” which identifies the series of the Certificates issued
        in connection with such Mortgage Loans. The Depositor further agrees that
        it
        will not, and will not permit the Master Servicer to, and the Master Servicer
        agrees that it will not, alter the codes referenced in this paragraph with
        respect to any Mortgage Loan during the term of this Agreement unless and
        until
        such Mortgage Loan is repurchased in accordance with the terms of this
        Agreement.

       

      If
        any
        original Mortgage Note referred to in Section 2.01(A)(i) or 2.01(C)(i) above
        cannot be located, the obligations of the Depositor to deliver such documents
        shall be deemed to be satisfied upon delivery to the Trustee of a photocopy
        of
        such Mortgage Note, if available, with a Lost Note Affidavit. If any of the
        original Mortgage Notes for which a Lost Note Affidavit was delivered to
        the
        Trustee is subsequently located, such original Mortgage Note shall be delivered
        to the Trustee within three Business Days.

       

      Section
        2.02 Acceptance
        of Trust Fund by the Trustee.

       

      Subject
        to the provisions of Section 2.01 and subject to any exceptions noted on
        the
        exception report described in the next paragraph below, the Trustee acknowledges
        receipt of the documents referred to in Section 2.01 above and declares that
        it
        holds and will hold such documents and the other documents delivered to it
        constituting the Mortgage File, and that it holds or will hold all such assets
        and such other assets included in the definition of the “Trust Fund” and the
        rights of the Sellers with respect to any Pledged Assets and the Limited
        Purpose
        Surety Bond assigned to the Trustee pursuant to Section 2.03(e) in trust
        for the
        exclusive use and benefit of all present and future
        Certificateholders.

       

      The
        Trustee agrees, for the benefit of the Certificateholders, to review each
        Mortgage File on or before the Closing Date and to certify on the Closing
        Date
        in substantially the form attached hereto as Exhibit I-1 that, as to each
        Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
        Loan
        paid in full or any Mortgage Loan specifically identified in the exception
        report annexed thereto as not being covered by such certification), (i) all
        documents constituting part of such Mortgage File required to be delivered
        to it
        pursuant to this Agreement are in its possession, provided that with respect
        to
        the documents described in Section 2.01(A)(v), (vi) and (vii) and 2.01(C)(ix)
        to
        the extent the Trustee has actual knowledge that such documents exist, (ii)
        such
        documents have been reviewed by it and are not torn, mutilated, defaced or
        otherwise altered (except if initialed by the obligor) and relate to such
        Mortgage Loan, (iii) based on its examination and only as to the foregoing,
        the
        information set forth in the Mortgage Loan Schedule that corresponds to items
        (i) through (iii) (except the ZIP Code), (ix) and (xv) of the definition
        of
“Mortgage Loan Schedule” accurately reflects information set forth in the
        Mortgage File. Notwithstanding anything to the contrary in this Agreement,
        it is
        herein acknowledged that, in conducting such review, the Trustee is under
        no
        duty or obligation to inspect, review or examine any such documents,
        instruments, certificates or other papers to determine whether they are genuine,
        enforceable, or appropriate for the represented purpose or whether they have
        actually been recorded or that they are other than what they purport to be
        on
        their face, or to determine whether any Person executing any documents is
        authorized to do so or whether any signature is genuine.

       

      The
        Trustee agrees, for the benefit of the Certificateholders, to review each
        Mortgage File within 60 days following the Closing Date and to certify in
        substantially the form attached hereto as Exhibit I-2 that, as to each Mortgage
        Loan listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid
        in
        full or any Mortgage Loan specifically identified in the exception report
        annexed thereto as not being covered by such certification), (i) all documents
        constituting part of such Mortgage File (other than such documents described
        in
        Section 2.01(A)(v)) required to be delivered to it pursuant to this Agreement
        are in its possession, provided that with respect to the documents described
        in
        Section 2.01(A)(v), (vi) and (vii) and 2.01(C)(ix) to the extent the Trustee
        has
        actual knowledge that such documents exist, (ii) such documents have been
        reviewed by it and are not torn, mutilated, defaced or otherwise altered
        (except
        if initialed by the obligor) and appear regular on their face and relate
        to such
        Mortgage Loan, (iii) based on its examination and only as to the foregoing,
        the
        information set forth in the Mortgage Loan Schedule that corresponds to items
        (i) through (iii)(except the ZIP code), (ix) and (xv) of the definition of
        “Mortgage Loan Schedule” accurately reflects information set forth in the
        Mortgage File. It is herein acknowledged that, in conducting such review,
        the
        Trustee is under no duty or obligation (i) to inspect, review or examine
        any
        such documents, instruments, certificates or other papers to determine whether
        they are genuine, enforceable, or appropriate for the represented purpose
        or
        whether they have actually been recorded or that they are other than what
        they
        purport to be on their face, or to determine whether any Person executing
        any
        documents is authorized to do so or whether any signature is
        genuine.

       

      Prior
        to
        the first anniversary date of this Agreement the Trustee shall deliver to
        the
        Depositor and the Master Servicer a final certification in the form annexed
        hereto as Exhibit I-2 evidencing the completeness of the Mortgage Files,
        with
        any applicable exceptions noted thereon, except with respect to the documents
        described in Section 2.01(A)(v), (vi) and (vii) and 2.01(C)(ix), to the extent
        the Trustee has actual knowledge that such documents exist.

       

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

       

      The
        Trustee shall, at the written request and expense of any Certificateholder,
        provide a written report to such Certificateholder of all Mortgage Files
        released to the Master Servicer for servicing purposes.

       

      Section
        2.03 Repurchase
        or Substitution of Mortgage Loans by the Sellers- Assignment of Interest
        in
        Pledged Assets.

       

      (a) Upon
        discovery or receipt of notice of any materially defective document in, or
        that
        a document is missing from, a Mortgage File or of the breach by a Seller
        of any
        representation, warranty or covenant under the Mortgage Loan Purchase Agreement
        in respect of any Mortgage Loan which materially adversely affects the value
        of
        such Mortgage Loan or the interest therein of the Certificateholders, by
        the
        Trustee, the Master Servicer or the Depositor shall promptly notify such
        Seller
        and the Trustee, the Master Servicer and the Depositor of such defect, missing
        document or breach and request that such Seller deliver such missing document
        or
        cure such defect or breach within 90 days from the date such Seller was notified
        of such missing document, defect or breach, and if such Seller does not deliver
        such missing document or cure such defect or breach in all material respects
        during such period, the Master Servicer (or, in accordance with Section 3.02(b),
        the Trustee) shall enforce the obligations of such Seller under the Mortgage
        Loan Purchase Agreement to repurchase such Mortgage Loan from the Trust Fund
        at
        the Purchase Price within 90 days after the date on which such Seller was
        notified (subject to Section 2.03(d)) of such missing document, defect or
        breach, if and to the extent that such Seller is obligated to do so under
        the
        Mortgage Loan Purchase Agreement. If such defect or breach can ultimately
        be
        cured but is not reasonably expected to be cured within the 90-day period,
        then
        the applicable Seller shall have such additional time, if any, as is reasonable,
        to cure such defect or breach, provided that the applicable Seller has commenced
        curing or correcting such defect or breach and is diligently pursuing same.
        The
        Purchase Price for the repurchased Mortgage Loan shall be deposited in the
        Collection Account, within three Business Days of expiration of the applicable
        time period referred to above, and the Trustee, upon receipt of written
        certification from the Master Servicer of such deposit, shall release to
        the
        applicable Seller the related Mortgage File and shall execute and deliver
        such
        instruments of transfer or assignment, in each case without recourse, as
        such
        Seller shall furnish to it and as shall be necessary to vest in such Seller
        any
        Mortgage Loan released pursuant hereto, and the Trustee shall have no further
        responsibility with regard to such Mortgage File. In lieu of repurchasing
        any
        such Mortgage Loan as provided above, if so provided in the related Mortgage
        Loan Purchase Agreement, a Seller may cause such Mortgage Loan to be removed
        from the Trust Fund (in which case it shall become a Defective Mortgage Loan)
        and substitute one or more Eligible Substitute Mortgage Loans in the manner
        and
        subject to the limitations set forth in Section 2.03(d). If the breach of
        representation and warranty that gave rise to the obligation to repurchase
        or
        substitute a Mortgage Loan pursuant to Section 3.2 of the Mortgage Loan Purchase
        Agreement was the representation and warranty set forth in clause (xlvi)
        of
        Section 3.1 thereof, then the Master Servicer shall request that PHH Mortgage
        pay to the Trust Fund, concurrently with and in addition to the remedies
        provided in the preceding four sentences, an amount equal to any liability,
        penalty or expense that was actually incurred and paid out of or on behalf
        of
        the Trust Fund, and that directly resulted from such breach, or if incurred
        and
        paid by the Trust Fund thereafter, concurrently with such payment. In
        furtherance of the foregoing, if the Seller that repurchases the Mortgage
        Loan
        is not a member of MERS and the Mortgage is registered on the MERS® System, the
        Master Servicer, at its own expense and without any right of reimbursement,
        shall cause MERS to execute and deliver an assignment of the Mortgage in
        recordable form to transfer the Mortgage from MERS to such Seller and shall
        cause such Mortgage to be removed from registration on the MERS® System in
        accordance with MERS’ rules and regulations. It is understood and agreed that
        the obligation of a Seller to cure or to repurchase (or to substitute for)
        any
        Mortgage Loan as to which a document is missing, a material defect in a
        constituent document exists or as to which such a breach has occurred and
        is
        continuing shall constitute the sole remedy respecting such omission, defect
        or
        breach available to the Depositor, the Master Servicer or the Trustee on
        behalf
        of the Certificateholders.

       

      (b) Within
        90
        days of the earlier of discovery by the Master Servicer or receipt of notice
        by
        the Master Servicer of the breach of any representation, warranty or covenant
        of
        the Master Servicer set forth in Section 2.04 which materially and adversely
        affects the interests of the Certificateholders in any Mortgage Loan, the
        Master
        Servicer shall cure such breach in all material respects.

       

      (c) Any
        substitution of Eligible Substitute Mortgage Loans for Defective Mortgage
        Loans
        made pursuant to Section 2.03(a), in the case of a Seller, must be effected
        prior to the date which is two years after the Closing Date.

       

      As
        to any
        Defective Mortgage Loan for which a Seller substitutes a Eligible Substitute
        Mortgage Loan or Loans, such substitution shall be effected by such Seller
        delivering to the Trustee, for such Eligible Substitute Mortgage Loan or
        Loans,
        the Mortgage Note, the Mortgage, the Assignment to the Trustee, and such
        other
        documents and agreements, with all necessary endorsements thereon, as are
        required by Section 2.01, together with an Officers’ Certificate providing that
        each such Eligible Substitute Mortgage Loan satisfies the definition thereof
        and
        specifying the Substitution Shortfall Amount (as described below), if any,
        in
        connection with such substitution. The Trustee shall acknowledge receipt
        of the
        original Mortgage Note for such Eligible Substitute Mortgage Loan or Loans
        and,
        within ten Business Days thereafter, review such documents in the manner
        specified in Section 2.02 and deliver to the Depositor and the Master Servicer,
        with respect to such Eligible Substitute Mortgage Loan or Loans, a certification
        substantially in the form attached hereto as Exhibit I-1, with any applicable
        exceptions noted thereon. Within one year of the date of substitution, the
        Trustee shall deliver to the Depositor and the Master Servicer a certification
        substantially in the form of Exhibit I-2 hereto with respect to such Eligible
        Substitute Mortgage Loan or Loans, with any applicable exceptions noted thereon.
        Monthly Payments due with respect to Eligible Substitute Mortgage Loans in
        the
        month of substitution are not part of the Trust Fund and will be retained
        by the
        related Seller. For the month of substitution, distributions to
        Certificateholders will reflect the Monthly Payment due on such Defective
        Mortgage Loan on or before the Due Date in the month of substitution, and
        the
        related Seller shall thereafter be entitled to retain all amounts subsequently
        received in respect of such Defective Mortgage Loan. The Depositor shall
        give or
        cause to be given written notice to the Certificateholders that such
        substitution has taken place, shall amend the Mortgage Loan Schedule to reflect
        the removal of such Defective Mortgage Loan from the terms of this Agreement
        and
        the substitution of the Eligible Substitute Mortgage Loan or Loans and shall
        deliver a copy of such amended Mortgage Loan Schedule to the Trustee. Upon
        such
        substitution, such Eligible Substitute Mortgage Loan or Loans shall constitute
        part of the Mortgage Pool and shall be subject in all respects to the terms
        of
        this Agreement and, in the case of a substitution effected by a Seller, the
        Mortgage Loan Purchase Agreement, including, in the case of a substitution
        effected by a Seller, all applicable representations and warranties thereof
        included in the Mortgage Loan Purchase Agreement in each case as of the date
        of
        substitution.

       

      For
        any
        month in which a Seller substitutes one or more Eligible Substitute Mortgage
        Loans for one or more Defective Mortgage Loans, the Master Servicer will
        determine the amount (the “Substitution Shortfall Amount”), if any, by which the
        aggregate principal balance of all such Eligible Substitute Mortgage Loans
        as of
        the date of substitution is less than the aggregate Stated Principal Balance
        of
        all such Defective Mortgage Loans (in each case after application of the
        principal portion of the Monthly Payments due in the month of substitution
        that
        are to be distributed to the Certificateholders in the month of substitution).
        On the date of such substitution, the applicable Seller will deliver or cause
        to
        be delivered to the Master Servicer for deposit in the Collection Account
        an
        amount equal to the Substitution Shortfall Amount, if any, and the Trustee,
        upon
        receipt of the related Eligible Substitute Mortgage Loan or Loans and
        certification by the Master Servicer of such deposit, shall release to the
        applicable Seller the related Mortgage File or Files and shall execute and
        deliver such instruments of transfer or assignment, in each case without
        recourse, as such Seller shall deliver to it and as shall be necessary to
        vest
        therein any Defective Mortgage Loan released pursuant hereto.

       

      In
        addition, the applicable Seller shall obtain at its own expense and deliver
        to
        the Trustee an Opinion of Counsel to the effect that such substitution will
        not
        cause (a) any federal tax to be imposed on the Trust Fund, including without
        limitation, any federal tax imposed on “prohibited transactions” under Section
        860F(a)(1) of the Code or on “contributions after the startup date” under
        Section 860G(d)(1) of the Code, or (b) any REMIC to fail to qualify as a
        REMIC
        at any time that any Certificate is outstanding.

       

      (d) Upon
        discovery by the Depositor, a Seller, 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
        within
        two Business Days give written notice thereof to the other parties. In
        connection therewith, the related Seller shall repurchase or, subject to
        the
        limitations set forth in Section 2.03(c), substitute one or more Eligible
        Substitute Mortgage Loans for the affected Mortgage Loan within 60 days of
        the
        earlier of discovery or receipt of such notice with respect to such affected
        Mortgage Loan. Such repurchase or substitution shall be made by the related
        Seller, as the case may be, if the affected Mortgage Loan’s status as a
        non-qualified mortgage is or results from a breach of any representation,
        warranty or covenant made by the related Seller under the Mortgage Loan Purchase
        Agreement. Any such repurchase or substitution shall be made in the same
        manner
        as set forth in Sections 2.03(a), if made by the related Seller. The Trustee
        shall reconvey to the related 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.

       

      (e) The
        Depositor hereby assigns to the Trustee its security interest in and to any
        Pledged Assets, its right to receive amounts due or to become due in respect
        of
        any Pledged Assets, all of its rights in each Pledged Asset Agreement, and
        its
        rights as beneficiary under the Limited Purpose Surety Bond in respect of
        any
        Pledged Asset Loans. With respect to any Pledged Asset Loan, the Pledged
        Asset
        Servicer shall cause to be filed in the appropriate recording office a Form
        UCC-3 giving notice of the assignment of the related security interest to
        the
        Trust Fund and shall thereafter cause the timely filing of all necessary
        continuation statements with regard to such financing statements.

       

      Section
        2.04 Representations,
        Warranties and Covenants of the Master Servicer.

       

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

       

      (i) The
        Master Servicer is a corporation duly organized, validly existing and in
        good
        standing under the laws of the State of New Jersey and is duly authorized
        and
        qualified to transact any and all business contemplated by this Agreement
        to be
        conducted by the Master Servicer 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 and to service the Mortgage Loans in accordance with the terms
        of
        this Agreement;

       

      (ii) The
        Master Servicer 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 this Agreement and has duly
        authorized by all necessary corporate action on the part of the Master Servicer
        the execution, delivery and performance of this Agreement; and this Agreement,
        assuming the due authorization, execution and delivery thereof by the Depositor
        and the Trustee, constitutes a legal, valid and binding obligation of the
        Master
        Servicer, enforceable against the Master Servicer in accordance with its
        terms,
        except to the extent 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 the equitable
        defenses and to the discretion of the court before which any proceeding therefor
        may be brought;

       

      (iii) The
        execution and delivery of this Agreement by the Master Servicer, the servicing
        of the Mortgage Loans by the Master Servicer hereunder, the consummation
        of any
        other of the transactions herein contemplated, and the fulfillment of or
        compliance with the terms hereof are in the ordinary course of business of
        the
        Master Servicer and will not (A) result in a breach of any term or provision
        of
        the charter or by-laws of the Master Servicer or (B) conflict with, result
        in a
        breach, violation or acceleration of, or result in a default under, the terms
        of
        any other material agreement or instrument to which the Master Servicer is
        a
        party or by which it may be bound, or any statute, order or regulation
        applicable to the Master Servicer of any court, regulatory body, administrative
        agency or governmental body having jurisdiction over the Master Servicer;
        and
        the Master Servicer is not a party to, bound by, or in breach or violation
        of
        any indenture or other agreement or instrument, or subject to or in violation
        of
        any statute, order or regulation of any court, regulatory body, administrative
        agency or governmental body having jurisdiction over it, which materially
        and
        adversely affects or, to the Master Servicer’s knowledge, would in the future
        materially and adversely affect, (x) the ability of the Master Servicer to
        perform its obligations under this Agreement or (y) the business, operations,
        financial condition, properties or assets of the Master Servicer taken as
        a
        whole;

       

      (iv) The
        Master Servicer is an approved seller/servicer for Fannie Mae or Freddie
        Mac in
        good standing and is a HUD approved mortgagee pursuant to Section 203 of
        the
        National Housing Act;

       

      (v) No
        litigation is pending against the Master Servicer that would materially and
        adversely affect the execution, delivery or enforceability of this Agreement
        or
        the ability of the Master Servicer to service the Mortgage Loans or to perform
        any of its other obligations hereunder in accordance with the terms
        hereof;

       

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

       

      (vii) The
        Master Servicer is a member of MERS in good standing, and will comply in
        all
        material respects with the rules and procedures of MERS in connection with
        the
        servicing of the Mortgage Loans that are registered with MERS.

       

      It
        is
        understood and agreed that the representations, warranties and covenants
        set
        forth in this Section 2.04 shall survive delivery of the Mortgage Files to
        the
        Trustee and shall inure to the benefit of the Trustee, the Depositor and
        the
        Certificateholders. Upon discovery by any of the Depositor, the Master Servicer
        or the Trustee of a breach of any of the foregoing representations, warranties
        and covenants which materially and adversely affects the value of any Mortgage
        Loan or the interests therein of the Certificateholders, the party discovering
        such breach shall give prompt written notice (but in no event later than
        two
        Business Days following such discovery) to the Trustee. Subject to Section
        7.01,
        the obligation of the Master Servicer set forth in Section 2.03(c) to cure
        breaches shall constitute the sole remedies against the Master Servicer
        available to the Certificateholders, the Depositor or the Trustee on behalf
        of
        the Certificateholders respecting a breach of the representations, warranties
        and covenants contained in this Section 2.04.

       

      Section
        2.05 Representations
        and Warranties of the Depositor.

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      Section
        2.06 Purpose
        and Powers of the Trust.

       

      The
        purpose of the common law trust, as created hereunder, is to engage in the
        following activities:

       

      (i) acquire
        and hold the Mortgage Loans and the other assets of the Trust Fund and the
        proceeds therefrom;

       

      (ii) to
        issue
        the Certificates to or at the direction of the Depositor in exchange for
        the
        Mortgage Loans;

       

      (iii) to
        make
        payments on the Certificates;

       

      (iv) to
        engage
        in those activities that are reasonably necessary, suitable or convenient
        to
        accomplish the foregoing or are incidental thereto or connected therewith;
        and

       

      (v) subject
        to compliance with this Agreement, to engage in such other activities as
        may be
        required in connection with conservation of the Trust Fund and the making
        of
        distributions to the Certificateholders.

       

      The
        trust
        is hereby authorized to engage in the foregoing activities. The Trustee shall
        not cause the trust to engage in any activity other than in connection with
        the
        foregoing or other than as required or authorized by the terms of this Agreement
        while any Certificate is outstanding.

       

      Section
        2.07 Issuance
        of Certificates.

       

      (a) The
        Trustee acknowledges the assignment to it on behalf of the Trust Fund of
        the
        Mortgage Loans and the other assets comprising the Trust Fund and, concurrently
        therewith, has signed, and authenticated and delivered to the Depositor,
        in
        exchange therefor, Certificates in such authorized denominations representing
        such Percentage Interests as the Depositor has requested. The Trustee agrees
        that it will hold the Mortgage Loans and such other assets as may from time
        to
        time be delivered to it segregated on the books of the Trustee in trust for
        the
        benefit of the Certificateholders.

       

      (b) The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey in trust to the Trustee without
        recourse all the right, title and interest of the Depositor in and to the
        assets
        of REMIC I for the benefit of the holders of the REMIC I Regular Interests.
        The
        Trustee acknowledges receipt of the assets of REMIC I and declares that it
        holds
        and will hold the same in trust for the exclusive use and benefit of the
        holders
        of the REMIC I Regular Interests.

       

      (c) The
        Depositor, concurrently with the execution and delivery hereof, does hereby
        transfer, assign, set over and otherwise convey in trust to the Trustee without
        recourse all the right, title and interest of the Depositor in and to the
        REMIC
        I Regular Interests and the other assets of REMIC II for the benefit of the
        Certificateholders. The Trustee acknowledges receipt of the REMIC I Regular
        Interests (which are uncertificated) and the other assets of REMIC II and
        declares that it holds and will hold the same in trust for the exclusive
        use and
        benefit of the Certificateholders.

       

      

      ARTICLE
        III

      ADMINISTRATION
        AND SERVICING OF THE TRUST FUND

       

      Section
        3.01 Master
        Servicer to Act as Master Servicer.

       

      The
        Master Servicer shall service and administer the Mortgage Loans on behalf
        of the
        Trustee and in the best interests of and for the benefit of the
        Certificateholders (as determined by the Master Servicer in its reasonable
        judgment) in accordance with the terms of this Agreement and the respective
        Mortgage Loans and, to the extent consistent with such terms, in the same
        manner
        in which it services and administers similar mortgage loans for its own
        portfolio, giving due consideration to customary and usual standards of practice
        of prudent mortgage lenders and loan servicers administering similar mortgage
        loans but without regard to:

       

      (i) any
        relationship that the Master Servicer, any Sub-Servicer or any Affiliate
        of the
        Master Servicer or any Sub-Servicer may have with the related
        Mortgagor;

       

      (ii) the
        ownership of any Certificate by the Master Servicer or any Affiliate of the
        Master Servicer;

       

      (iii) the
        Master Servicer’s obligation to make Advances or Servicing Advances;
        or

       

      (iv) the
        Master Servicer’s or any Sub-Servicer’s right to receive compensation for its
        services hereunder or with respect to any particular transaction.

       

      To
        the
        extent consistent with the foregoing, the Master Servicer shall also seek
        to
        maximize the timely and complete recovery of principal and interest on the
        Mortgage Notes. Subject only to the above-described servicing standards and
        the
        terms of this Agreement and of the respective Mortgage Loans, the Master
        Servicer shall have full power and authority, acting alone or through
        Sub-Servicers as provided in Section 3.02, to do or cause to be done any
        and all
        things in connection with such servicing and administration which it may
        deem
        necessary or desirable. Without limiting the generality of the foregoing,
        the
        Master Servicer in its own name or in the name of a Sub-Servicer is hereby
        authorized and empowered by the Trustee when the Master Servicer believes
        it
        appropriate in its best judgment in accordance with the servicing standards
        set
        forth above, to execute and deliver, on behalf of the Certificateholders
        and the
        Trustee, and upon notice to the Trustee, 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 the Mortgaged
        Properties and to institute foreclosure proceedings or obtain a deed-in-lieu
        of
        foreclosure so as to convert the ownership of such properties, and to hold
        or
        cause to be held title to such properties, on behalf of the Trustee and
        Certificateholders. The Master Servicer shall service and administer the
        Mortgage Loans in accordance with applicable state and federal law and shall
        provide to the Mortgagors any reports required to be provided to them thereby.
        The Master Servicer shall also comply in the performance of this Agreement
        with
        all reasonable rules and requirements of each insurer under each Primary
        Insurance Policy and any standard hazard insurance policy. Subject to Section
        3.17, the Trustee shall execute, at the written request of the Master Servicer,
        and furnish to the Master Servicer and any Sub-Servicer such documents as
        are
        necessary or appropriate to enable the Master Servicer or any Sub-Servicer
        to
        carry out their servicing and administrative duties hereunder, and the Trustee
        hereby grants to the Master Servicer a power of attorney to carry out such
        duties. The Trustee shall not be liable for the actions of the Master Servicer
        or any Sub-Servicers under such powers of attorney.

       

      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 timely payment of taxes and assessments on the Mortgaged
        Properties, which advances shall be Servicing Advances reimbursable in the
        first
        instance from related collections from the Mortgagors pursuant to Section
        3.09,
        and further as provided in Section 3.11. Any cost incurred by the Master
        Servicer or by Sub-Servicers in effecting the timely payment of taxes and
        assessments on a Mortgaged Property shall not, for the purpose of calculating
        distributions to Certificateholders, be added to the unpaid principal balance
        of
        the related Mortgage Loan, notwithstanding that the terms of such Mortgage
        Loan
        so permit.

       

      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
        Sub-Servicer, when the Master Servicer or the Sub-Servicer, as the case may
        be,
        believes it is appropriate in its best judgment to register any Mortgage
        Loan on
        the MERS® System, or cause the removal from the registration of any Mortgage
        Loan on the MERS® System, to execute and deliver, on behalf of the Trustee and
        the Certificateholders or any of them, any and all instruments of assignment
        and
        other comparable instruments with respect to such assignment or re-recording
        of
        a Mortgage in the name of MERS, solely as nominee for the Trustee and its
        successors and assigns. Any expenses incurred in connection with the actions
        described in the preceding sentence shall be borne by the Master Servicer
        in
        accordance with Section 3.18, with no right of reimbursement; provided, that
        if,
        as a result of MERS discontinuing or becoming unable to continue operations
        in
        connection with the MERS System, it becomes necessary to remove any Mortgage
        Loan from registration on the MERS System and to arrange for the assignment
        of
        the related Mortgages to the Trustee, then any related expenses shall be
        reimbursable to the Master Servicer.

       

      Notwithstanding
        anything in this Agreement to the contrary, the Master Servicer may not make
        any
        future advances with respect to a Mortgage Loan (except as provided in Section
        4.06) and the Master Servicer shall not (i) permit any modification with
        respect
        to any Mortgage Loan that would change the Loan Rate, reduce or increase
        the
        principal balance (except for reductions resulting from actual payments of
        principal) or change the final maturity date on such Mortgage Loan (unless,
        as
        provided in Section 3.07, the Mortgagor is in default with respect to the
        Mortgage Loan or such default is, in the judgment of the Master Servicer,
        reasonably foreseeable) or (ii) permit any modification, waiver or amendment
        of
        any term of any Mortgage Loan that would both (A) effect an exchange or
        reissuance of such Mortgage Loan under Section 1001 of the Code (or final,
        temporary or proposed Treasury regulations promulgated thereunder) and (B)
        cause
        either the Trust Fund to fail to qualify as a REMIC under the Code or the
        imposition of any tax on “prohibited transactions” or “contributions after the
        startup date” under the REMIC Provisions.

       

      Notwithstanding
        any other provision of this Agreement or the Pledged Asset Servicing Agreement
        to the contrary, except as provided below, the Master Servicer shall have
        no
        duty or obligation to service and administer the Pledged Assets and the Master
        Servicer shall not be deemed to be the Pledged Asset Servicer, unless and
        until
        MLCC’s obligations to administer the Pledged Assets under the Pledged Asset
        Servicing Agreement have been terminated with respect to the Pledged Asset
        Loans, in which case, the Master Servicer shall be bound to service and
        administer the Pledged Assets and the Limited Purpose Surety Bond in accordance
        with the provisions of this Agreement and the related Pledged Asset Agreements
        from the date of such termination. The Trustee, as assignee of the Pledged
        Asset
        Servicing Agreement, shall enforce the obligations of MLCC to service and
        administer the Pledged Assets as provided in the Pledged Asset Servicing
        Agreement, and shall take appropriate action thereunder if MLCC fails to
        substantially comply with its obligations to administer the Pledged Assets.
        In
        the event the Trustee receives an indemnification payment from MLCC under
        Section 3 of the Pledged Asset Servicing Agreement that is attributable to
        losses resulting from MLCC’s failure to administer the Pledged Assets in
        accordance with the terms of the Pledged Asset Servicing Agreement in connection
        with Pledged Asset Loans, the Trustee shall deposit such amount in the
        Collection Account.

       

      The
        Master Servicer may delegate its responsibilities under this Agreement;
        provided, however, that no such delegation shall release the Master Servicer
        from the responsibilities or liabilities arising under this
        Agreement.

       

      Section
        3.02 Sub-Servicing
        Agreements Between the Master Servicer and Sub-Servicers.

       

      (a) The
        Master Servicer may enter into Sub-Servicing Agreements (provided that such
        agreements would not result in a withdrawal or a downgrading by the Rating
        Agency of the rating on any Class of Certificates) with Sub-Servicers, for
        the
        servicing and administration of the Mortgage Loans. Notwithstanding any other
        provision of this Agreement, the Master Servicer shall not be precluded from
        selling all or part of the Servicing Fee relating to any Mortgage Loans to
        any
        Sub-Servicer, provided that with respect to any Mortgage Loan as to which
        the
        Master Servicer sells all or a part of the related Servicing Fee, the Master
        Servicer shall retain full responsibility under this Agreement for the servicing
        activities relating to such Mortgage Loan.

       

      Each
        Sub-Servicer shall be (i) authorized to transact business in the state or
        states
        in which the related Mortgaged Properties it is to service are situated,
        if and
        to the extent required by applicable law to enable the Sub-Servicer to perform
        its obligations hereunder and under the Sub-Servicing Agreement, (ii) an
        institution approved as a mortgage loan originator by the Federal Housing
        Administration or an institution the deposit accounts of which are insured
        by
        the FDIC and (iii) a Freddie Mac or Fannie Mae approved mortgage servicer.
        Each
        Sub-Servicing Agreement must impose on the Sub-Servicer requirements conforming
        to the provisions set forth in Section 3.08 and provide for servicing of
        the
        Mortgage Loans consistent with the terms of this Agreement. The Master Servicer
        will examine each Sub-Servicing Agreement and will be familiar with the terms
        thereof. The terms of any Sub-Servicing Agreement will not be inconsistent
        with
        any of the provisions of this Agreement. The Master Servicer and the
        Sub-Servicers may enter into and make amendments to the Sub-Servicing Agreements
        or enter into different forms of Sub-Servicing Agreements; provided, however,
        that any such amendments or different forms shall be consistent with and
        not
        violate the provisions of this Agreement, and that no such amendment or
        different form shall be made or entered into which could be reasonably expected
        to be materially adverse to the interests of the Certificateholders, without
        the
        consent of the Holders of Certificates entitled to at least 66% of the Voting
        Rights. Any variation without the consent of the Holders of Certificates
        entitled to at least 66% of the Voting Rights from the provisions set forth
        in
        Section 3.08 relating to insurance or priority requirements of Sub-Servicing
        Accounts, or credits and charges to the Sub-Servicing Accounts or the timing
        and
        amount of remittances by the Sub-Servicers to the Master Servicer, are
        conclusively deemed to be inconsistent with this Agreement and therefore
        prohibited. The Master Servicer shall deliver to the Trustee copies of all
        Sub-Servicing Agreements, and any amendments or modifications thereof, promptly
        upon the Master Servicer’s execution and delivery of such
        instruments.

       

      (b) As
        part
        of its servicing activities hereunder, the Master Servicer (except as otherwise
        provided in the last sentence of this paragraph), for the benefit of the
        Trustee
        and the Certificateholders, shall enforce the obligations of each Sub-Servicer
        under the related Sub-Servicing Agreement and of each Seller under the Mortgage
        Loan Purchase Agreement, including, without limitation, any obligation to
        make
        advances in respect of delinquent payments as required by a Sub-Servicing
        Agreement, or to purchase a Mortgage Loan on account of missing or defective
        documentation or on account of a breach of a representation, warranty or
        covenant, as described in Section 2.03(a). Such enforcement, including, without
        limitation, the legal prosecution of claims, termination of Sub-Servicing
        Agreements, and the pursuit of other appropriate remedies, shall be in such
        form
        and carried out to such an extent and at such time as the Master Servicer,
        in
        its good faith business judgment, would require were it the owner of the
        related
        Mortgage Loans. The Master Servicer shall pay the costs of such enforcement
        at
        its own expense, and shall be reimbursed therefor only (i) from a general
        recovery resulting from such enforcement, to the extent, if any, that such
        recovery exceeds all amounts due in respect of the related Mortgage Loans,
        or
        (ii) from a specific recovery of costs, expenses or attorneys’ fees against the
        party against whom such enforcement is directed. Enforcement of the obligations
        under the Mortgage Loan Purchase Agreement against the Sellers shall be effected
        by the Master Servicer, in accordance with the foregoing provisions of this
        paragraph.

       

      Section
        3.03 Successor
        Sub-Servicers.

       

      The
        Master Servicer shall be entitled to terminate any Sub-Servicing Agreement
        and
        the rights and obligations of any Sub-Servicer pursuant to any Sub-Servicing
        Agreement in accordance with the terms and conditions of such Sub-Servicing
        Agreement. In the event of termination of any Sub Servicer, all servicing
        obligations of such Sub-Servicer shall be assumed simultaneously by the Master
        Servicer without any act or deed on the part of such Sub-Servicer or the
        Master
        Servicer, and the Master Servicer either shall service directly the related
        Mortgage Loans or shall enter into a Sub-Servicing Agreement with a successor
        Sub-Servicer which qualifies under Section 3.02.

       

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

       

      Section
        3.04 Liability
        of the Master Servicer.

       

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

       

      Section
        3.05 No
        Contractual Relationship Between Sub-Servicers and Trustee or
        Certificateholders.

       

      Any
        Sub-Servicing Agreement that may be entered into and any transactions or
        services relating to the Mortgage Loans involving a Sub-Servicer in its capacity
        as such shall be deemed to be between the Sub-Servicer and the Master Servicer
        alone, and the Trustee and Certificateholders shall not be deemed parties
        thereto and shall have no claims, rights, obligations, duties or liabilities
        with respect to the Sub-Servicer except as set forth in Section 3.06. The
        Master
        Servicer shall be solely liable for all fees owed by it to any Sub-Servicer,
        irrespective of whether the Master Servicer’s compensation pursuant to this
        Agreement is sufficient to pay such fees.

       

      Section
        3.06 Assumption
        or Termination of Sub-Servicing Agreements by Trustee.

       

      In
        the
        event the Master Servicer shall for any reason no longer be the master servicer
        (including by reason of the occurrence of a Master Servicer Event of
        Termination), the Trustee or its designee or the successor master servicer
        as
        appointed pursuant to Section 7.02 herein, shall thereupon assume all of
        the
        rights and obligations of the Master Servicer under each Sub-Servicing Agreement
        that the Master Servicer may have entered into, unless the Trustee elects
        to
        terminate any Sub-Servicing Agreement in accordance with its terms as provided
        in Section 3.03. Upon such assumption, the Trustee, its designee or the
        successor servicer for the Trustee appointed pursuant to Section 7.02 shall
        be
        deemed, subject to Section 3.03, to have assumed all of the Master Servicer’s
        interest therein and to have replaced the Master Servicer as a party to each
        Sub-Servicing Agreement to the same extent as if each Sub-Servicing Agreement
        had been assigned to the assuming party, except that (i) the Master Servicer
        shall not thereby be relieved of any liability or obligations under any
        Sub-Servicing Agreement and (ii) none of the Trustee, its designee or any
        successor master servicer shall be deemed to have assumed any liability or
        obligation of the Master Servicer that arose before it ceased to be the Master
        Servicer.

       

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

       

      Section
        3.07 Collection
        of Certain Mortgage Loan Payments.

       

      The
        Master Servicer shall make reasonable efforts to collect all payments called
        for
        under the terms and provisions of the Mortgage Loans, and shall, to the extent
        such procedures shall be consistent with this Agreement and the terms and
        provisions of any related Primary Insurance Policy and any other applicable
        insurance policies, follow such collection procedures as it would follow
        with
        respect to mortgage loans comparable to the Mortgage Loans and held for its
        own
        account. Consistent with the foregoing, the Master Servicer may in its
        discretion (i) waive any late payment charge or, if applicable, penalty
        interest, only upon determining that the coverage of such Mortgage Loan by
        the
        related Primary Insurance Policy, if any, will not be affected, or (ii) extend
        the due dates for Monthly Payments due on a Mortgage Note for a period of
        not
        greater than 180 days; provided that any extension pursuant to clause (ii)
        above
        shall not affect the amortization schedule of any Mortgage Loan for purposes
        of
        any computation hereunder, except as provided below. In the event of any
        such
        arrangement pursuant to clause (ii) above, the Master Servicer shall make
        timely
        advances on such Mortgage Loan during such extension pursuant to Section
        4.06
        and in accordance with the amortization schedule of such Mortgage Loan without
        modification thereof by reason of such arrangements. Notwithstanding the
        foregoing, in the event that any Mortgage Loan is in default or, in the judgment
        of the Master Servicer, such default is reasonably foreseeable, the Master
        Servicer, consistent with the standards set forth in Section 3.01, may also,
        waive, modify or vary any term of such Mortgage Loan (including modifications
        that would change the Loan Rate, forgive the payment of principal or interest
        or
        extend the final maturity date of such Mortgage Loan), accept payment from
        the
        related Mortgagor of an amount less than the Stated Principal Balance in
        final
        satisfaction of such Mortgage Loan (such payment, a “Short Pay-off”) or consent
        to the postponement of strict compliance with any such term or otherwise
        grant
        indulgence to any Mortgagor.

       

      Section
        3.08 Sub-Servicing
        Accounts.

       

      In
        those
        cases where a Sub-Servicer is servicing a Mortgage Loan pursuant to a
        Sub-Servicing Agreement, the Sub-Servicer will be required to establish and
        maintain one or more accounts (collectively, the “Sub-Servicing Account”). The
        Sub-Servicing Account shall be an Eligible Account and shall comply with
        all
        requirements of this Agreement relating to the Collection Account. The
        Sub-Servicer shall deposit in the clearing account (which account must be
        an
        Eligible Account) in which it customarily deposits payments and collections
        on
        mortgage loans in connection with its mortgage loan servicing activities
        on a
        daily basis, and in no event more than one Business Day after the Sub-Servicer’s
        receipt thereof, all proceeds of Mortgage Loans received by the Sub-Servicer
        less its servicing compensation to the extent permitted by the Sub-Servicing
        Agreement, and shall thereafter deposit such amounts in the Sub-Servicing
        Account, in no event more than two Business Days after the deposit of such
        funds
        into the clearing account. The Sub-Servicer shall thereafter deposit such
        proceeds in the Collection Account or remit such proceeds to the Master Servicer
        for deposit in the Collection Account not later than two Business Days after
        the
        deposit of such amounts in the Sub-Servicing Account. For purposes of this
        Agreement, the Master Servicer shall be deemed to have received payments
        on the
        Mortgage Loans when the Sub-Servicer receives such payments.

       

      Section
        3.09 Collection
        of Taxes, Assessments and Similar Items; Servicing Accounts.

       

      The
        Master Servicer shall establish and maintain one or more accounts (the
“Servicing Accounts”), into which all collections from the Mortgagors (or
        related advances from Sub-Servicers) for the payment of ground rents, taxes,
        assessments, fire and hazard insurance premiums, Primary Insurance Policy
        premiums, water charges, sewer rents and comparable items for the account
        of the
        Mortgagors (“Escrow Payments”) shall be deposited and retained. Servicing
        Accounts shall be Eligible Accounts. The Master Servicer shall deposit in
        the
        clearing account (which account must be an Eligible Account) in which it
        customarily deposits payments and collections on mortgage loans in connection
        with its mortgage loan servicing activities on a daily basis, and in no event
        more than one Business Day after the Master Servicer’s receipt thereof, all
        Escrow Payments collected on account of the Mortgage Loans and shall thereafter
        deposit such Escrow Payments in the Servicing Accounts, in no event more
        than
        two Business Days after the deposit of such funds in the clearing account,
        for
        the purpose of effecting the payment of any such items as required under
        the
        terms of this Agreement. Withdrawals of amounts from a Servicing Account
        may be
        made only to (i) effect payment of Escrow Payments; (ii) reimburse the Master
        Servicer (or a Sub-Servicer to the extent provided in the related Sub-Servicing
        Agreement) out of related collections for any advances made pursuant to Section
        3.01 (with respect to taxes and assessments) and Section 3.14 (with respect
        to
        hazard insurance); (iii) refund to Mortgagors any sums as may be determined
        to
        be overages; (iv) make Permitted Investments as provided in Section 3.12;
        (v)
        pay interest, to the Master Servicer or to the Mortgagor if required and
        as
        described below, on balances in the Servicing Account; (vi) clear and terminate
        the Servicing Account at the termination of the Master Servicer’s obligations
        and responsibilities in respect of the Mortgage Loans under this Agreement
        in
        accordance with Article IX; or (vii) recover amounts deposited in error.
        As part
        of its servicing duties, the Master Servicer or Sub-Servicers shall pay to
        the
        Mortgagors interest on funds in Servicing Accounts, to the extent required
        by
        law and, to the extent that interest earned on funds in the Servicing Accounts
        is insufficient, to pay such interest from its or their own funds, without
        any
        reimbursement therefor. To the extent that a Mortgage does not provide for
        Escrow Payments, the Master Servicer shall determine whether any such payments
        are made by the Mortgagor in a manner and at a time that avoids the loss
        of the
        Mortgaged Property due to a tax sale or the foreclosure of a tax lien. The
        Master Servicer assumes full responsibility for the payment of all such bills
        and shall effect payments of all such bills irrespective of the Mortgagor’s
        faithful performance in the payment of same or the making of the Escrow Payments
        and shall make advances from its own funds to effect such payments. The Master
        Servicer shall be entitled to retain any interest paid on funds deposited
        in the
        Servicing Account to effect Escrow Payments other than interest on escrowed
        funds required by law to be paid to the Mortgagor.

       

      Section
        3.10 Collection
        Account and Distribution Account.

       

      (a) On
        behalf
        of the Trust Fund, the Master Servicer shall establish and maintain one or
        more
        accounts (such account or accounts, the “Collection Account”), held in trust for
        the benefit of the Trustee and the Certificateholders. On behalf of the Trust
        Fund, the Master Servicer shall deposit or cause to be deposited in the clearing
        account (which account must be an Eligible Account) in which it customarily
        deposits payments and collections on mortgage loans in connection with its
        mortgage loan servicing activities on a daily basis, and in no event more
        than
        one Business Day after the Master Servicer’s receipt thereof, and shall
        thereafter deposit in the Collection Account, in no event more than two Business
        Days after the deposit of such funds into the clearing account, as and when
        received or as otherwise required hereunder, the following payments and
        collections received or made by it subsequent to the Cut-off Date (other
        than in
        respect of principal or interest on the related Mortgage Loans due on or
        before
        the Cut-off Date), or payments (other than Principal Prepayments) received
        by it
        on or prior to the Cut-off Date but allocable to a Due Period subsequent
        thereto:

       

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

       

      (ii) all
        payments on account of interest (net of the related Servicing Fee) on each
        Mortgage Loan;

       

      (iii) all
        Insurance Proceeds, Liquidation Proceeds and Subsequent Recoveries (other
        than
        proceeds collected in respect of any particular REO Property and amounts
        paid by
        the Master Servicer in connection with a purchase of Mortgage Loans and REO
        Properties pursuant to Section 9.01);

       

      (iv) any
        amounts required to be deposited pursuant to Section 3.12 in connection with
        any
        losses realized on Permitted Investments with respect to funds held in the
        Collection Account;

       

      (v) any
        amounts required to be deposited by the Master Servicer pursuant to the second
        paragraph of Section 3.14(a) in respect of any blanket policy
        deductibles;

       

      (vi) all
        proceeds of any Mortgage Loan repurchased or purchased in accordance with
        Section 2.03 or Section 9.01;

       

      (vii) all
        amounts required to be deposited in connection with shortfalls in principal
        amount of Eligible Substitute Mortgage Loans pursuant to Section
        2.03;

       

      (viii) any
        amounts required to be transferred from any Buydown Account pursuant to Section
        3.25; and

       

      (ix) any
        (x)
        amounts realized by MLCC or (y) Required Surety Payments received by the
        Trustee
        or the Master Servicer in respect of any Pledged Assets.

       

      For
        purposes of the immediately preceding sentence, the Cut-off Date with respect
        to
        any Eligible Substitute Mortgage Loan shall be deemed to be the date of
        substitution.

       

      The
        foregoing requirements for deposit in the Collection Account shall be exclusive,
        it being understood and agreed that, without limiting the generality of the
        foregoing, payments in the nature of late payment charges or assumption fees
        need not be deposited by the Master Servicer in the Collection Account and
        shall
        be retained by the Master Servicer as additional servicing compensation.
        In the
        event the Master Servicer shall deposit in the Collection Account any amount
        not
        required to be deposited therein, it may at any time withdraw such amount
        from
        the Collection Account, any provision herein to the contrary
        notwithstanding.

       

      (b) On
        behalf
        of the Trust Fund, the Trustee shall establish and maintain one or more accounts
        (such account or accounts, the “Distribution Account”), held in trust for the
        benefit of the Certificateholders. On behalf of the Trust Fund, the Master
        Servicer shall deliver to the Trustee in immediately available funds for
        deposit
        in the Distribution Account on or before 5:00 p.m. New York time on the Master
        Servicer Remittance Date, that portion of the Available Distribution Amount
        for
        the related Distribution Date then on deposit in the Collection
        Account.

       

      (c) Funds
        in
        the Collection Account and the Distribution Account may be invested in Permitted
        Investments in accordance with the provisions set forth in Section 3.12.
        The
        Master Servicer shall give notice to the Trustee and the Depositor of the
        location of the Collection Account maintained by it when established and
        prior
        to any change thereof. The Trustee shall give notice to the Master Servicer
        and
        the Depositor of the location of the Distribution Account when established
        and
        prior to any change thereof.

       

      (d) Funds
        held in the Collection Account at any time may be delivered by the Master
        Servicer to the Trustee for deposit in an account (which may be the Distribution
        Account and must satisfy the standards for the Distribution Account as set
        forth
        in the definition thereof) and for all purposes of this Agreement shall be
        deemed to be a part of the Collection Account; provided, however, that the
        Trustee shall have the sole authority to withdraw any funds held pursuant
        to
        this subsection (d). In the event the Master Servicer shall deliver to the
        Trustee for deposit in the Distribution Account any amount not required to
        be
        deposited therein, it may at any time request that the Trustee withdraw such
        amount from the Distribution Account and remit to it any such amount, any
        provision herein to the contrary notwithstanding. In addition, the Master
        Servicer shall deliver to the Trustee from time to time for deposit, and
        upon
        written notification from the Master Servicer, the Trustee shall so deposit,
        in
        the Distribution Account:

       

      (i) any
        Advances, as required pursuant to Section 4.06;

       

      (ii) any
        amounts required to be deposited pursuant to Section 3.23(d) or (f) in
        connection with any REO Property;

       

      (iii) any
        amounts to be paid by the Master Servicer in connection with a purchase of
        Mortgage Loans and REO Properties pursuant to Section 9.01;

       

      (iv) any
        amounts required to be deposited pursuant to Section 3.24 in connection with
        any
        Prepayment Interest Shortfalls; and

       

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

       

      (e) Promptly
        upon receipt of any Stayed Funds, whether from the Master Servicer, a trustee
        in
        bankruptcy, or federal bankruptcy court or other source, the Trustee shall
        deposit such funds in the Distribution Account.

       

      Section
        3.11 Withdrawals
        from the Collection Account and Distribution Account.

       

      (a) The
        Master Servicer shall, from time to time, make withdrawals from the Collection
        Account for any of the following purposes or as described in Section
        4.06:

       

      (i) to
        remit
        to the Trustee for deposit in the Distribution Account the amounts required
        to
        be so remitted pursuant to Section 3.10(b) or permitted to be so remitted
        pursuant to the first sentence of Section 3.10(d);

       

      (ii) subject
        to Section 3.16(d), to reimburse the Master Servicer for Advances;

       

      (iii) subject
        to Section 3.16(d), to pay the Master Servicer or any Sub-Servicer any unpaid
        Servicing Fees and reimburse any unreimbursed Servicing Advances with respect
        to
        each Mortgage Loan, but only to the extent of any Liquidation Proceeds,
        Insurance Proceeds or other amounts as may be collected by the Master
        Servicer;

       

      (iv) to
        pay to
        the Master Servicer as servicing compensation (in addition to the Servicing
        Fee)
        on the Master Servicer Remittance Date any interest or investment income
        earned
        on funds deposited in the Collection Account, any Foreclosure Profits and
        any
        prepayment penalties or premiums relating to any Principal Prepayments;
        provided, however, that no such amounts shall be payable as servicing
        compensation to the extent they relate to a Mortgage Loan with respect to
        which
        a default, breach, violation or event of acceleration exists or would exist
        but
        for the lapse of time, the giving of notice, or both;

       

      (v) to
        pay to
        the Master Servicer, the Depositor or a Seller, as the case may be, with
        respect
        to each Mortgage Loan that has previously been purchased or replaced pursuant
        to
        Section 2.03 or Section 3.16(c) all amounts received thereon subsequent to
        the
        date of purchase or substitution, as the case may be;

       

      (vi) to
        reimburse the Master Servicer for any Advance previously made which the Master
        Servicer has determined to be a Nonrecoverable Advance in accordance with
        the
        provisions of Section 4.06;

       

      (vii) to
        reimburse the Master Servicer or the Depositor for expenses incurred by or
        reimbursable to the Master Servicer or the Depositor, as the case may be,
        pursuant to Section 6.03;

       

      (viii) to
        reimburse the Master Servicer or the Trustee, as the case may be, for expenses
        reasonably incurred in respect of the breach or defect giving rise to the
        purchase obligation under Section 2.03 or Section 2.04 of this Agreement
        that
        were included in the Purchase Price of the Mortgage Loan, including any expenses
        arising out of the enforcement of the purchase obligation;

       

      (ix) to
        pay,
        or to reimburse the Master Servicer for advances in respect of, expenses
        incurred in connection with any Mortgage Loan pursuant to Section 3.16(b);
        and

       

      (x) to
        clear
        and terminate the Collection Account pursuant to Section 10.01;

       

      (xi) to
        reimburse the Master Servicer for amounts deposited in error.

       

      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
        Collection Account, to the extent held by or on behalf of it, pursuant to
        subclauses (ii), (iii), (iv), (v), (vi), (viii) and (ix) above. The Master
        Servicer shall provide written notification to the Trustee, on or prior to
        the
        next succeeding Master Servicer Remittance Date, upon making any withdrawals
        from the Collection Account pursuant to subclause (vii) above.

       

      (b) The
        Trustee shall, from time to time, make withdrawals from the Distribution
        Account, for any of the following purposes, without priority:

       

      (i) to
        make
        distributions to Certificateholders in accordance with Section
        4.01;

       

      (ii) to
        pay to
        itself amounts to which it is entitled pursuant to Section 8.05;

       

      (iii) to
        pay
        itself any interest income earned on funds deposited in the Distribution
        Account
        pursuant to Section 3.12(c);

       

      (iv) to
        reimburse itself pursuant to Section 7.02 and 7.01(b);

       

      (v) to
        pay
        any amounts in respect of taxes pursuant to 10.01(g)(iii); and

       

      (vi) to
        clear
        and terminate the Distribution Account pursuant to Section 10.01.

       

      Section
        3.12 Investment
        of Funds in the Collection Account, Servicing Accounts and the Distribution
        Account.

       

      (a) The
        Master Servicer may direct any depository institution maintaining the Collection
        Account or Servicing Accounts (for purposes of this Section 3.12, an “Investment
        Account’), and the Trustee, in its individual capacity, may direct any
        depository institution maintaining the Distribution Account (for purposes
        of
        this Section 3.12, also an “Investment Account’), to invest the funds in such
        Investment Account in one or more Permitted Investments bearing interest
        or sold
        at a discount, and maturing, unless payable on demand, (i) no later than
        the
        Business Day immediately preceding the date on which such funds are required
        to
        be withdrawn from such account pursuant to this Agreement, if a Person other
        than the Trustee is the obligor thereon, and (ii) no later than the date
        on
        which such funds are required to be withdrawn from such account pursuant
        to this
        Agreement, if the Trustee is the obligor thereon. All such Permitted Investments
        shall be held to maturity, unless payable on demand. Any investment of funds
        in
        an Investment Account shall be made in the name of the Trustee (in its capacity
        as such) or in the name of a nominee of the Trustee. The Trustee shall be
        entitled to sole possession (except with respect to investment direction
        of
        funds held in the Collection Account or Servicing Accounts, as applicable,
        and
        any income and gain realized thereon) over each such investment, and any
        certificate or other instrument evidencing any such investment shall be
        delivered directly to the Trustee or its agent, together with any document
        of
        transfer necessary to transfer title to such investment to the Trustee or
        its
        nominee. In the event amounts on deposit in an Investment Account are at
        any
        time invested in a Permitted Investment payable on demand, the Trustee
        shall:

       

      
        	 	
                (x)

              	
                consistent
                  with any notice required to be given thereunder, demand that payment
                  thereon be made on the last day such Permitted Investment may otherwise
                  mature hereunder in an amount equal to the lesser of (1) all amounts
                  then
                  payable thereunder and (2) the amount required to be withdrawn
                  on such
                  date; and

              

      

       

      
        	 	
                (y)

              	
                demand
                  payment of all amounts due thereunder promptly upon determination
                  by a
                  Responsible Officer of the Trustee that such Permitted Investment
                  would
                  not constitute a Permitted Investment in respect of funds thereafter
                  on
                  deposit in the Investment Account.

              

      

       

      (b) All
        income and gain realized from the investment of funds deposited in the
        Collection Account or Servicing Accounts, as applicable, held by or on behalf
        of
        the Master Servicer, shall be for the benefit of the Master Servicer and
        shall
        be subject to its withdrawal in accordance with Section 3.11. The Master
        Servicer shall deposit in the Collection Account or Servicing Accounts, as
        applicable, the amount of any loss of principal incurred in respect of any
        such
        Permitted Investment made with funds in such accounts immediately upon
        realization of such loss.

       

      (c) All
        income and gain realized from the investment of funds deposited in the
        Distribution Account held by or on behalf of the Trustee, shall be for the
        benefit of the Trustee and shall be subject to its withdrawal at any time.
        The
        Trustee shall deposit in the Distribution Account, the amount of any loss
        of
        principal incurred in respect of any such Permitted Investment made with
        funds
        in such accounts immediately upon realization of such loss.

       

      (d) Except
        as
        otherwise expressly provided in this Agreement, if any default occurs in
        the
        making of a payment due under any Permitted Investment, or if a default occurs
        in any other performance required under any Permitted Investment, the Trustee
        may and, subject to Section 8.01 and Section 8.02(a)(v), upon the request
        of the
        Holders of Certificates representing more than 50% of the Voting Rights
        allocated to any Class of Certificates, shall take such action as may be
        appropriate to enforce such payment or performance, including the institution
        and prosecution of appropriate proceedings.

       

      Section
        3.13 Maintenance
        of the Primary Insurance Policies; Collections Thereunder.

       

      The
        Master Servicer will maintain or cause the related Sub-Servicer, if any,
        to
        maintain in full force and effect, if required under the Mortgage Loan Purchase
        Agreement and to the extent available, a Primary Insurance Policy conforming
        in
        all respects to the description set forth in Section 2(vii) of the Mortgage
        Loan
        Purchase Agreement with respect to each Mortgage Loan so insured as of the
        Closing Date (or, in the case of a Eligible Substitute Mortgage Loan, on
        the
        date of substitution). Such coverage will be maintained with respect to each
        such Mortgage Loan for so long as it is outstanding, subject to any applicable
        laws or until the related Loan-to-Value Ratio is reduced to less than or
        equal
        to 80% based on Mortgagor payments. The Master Servicer shall cause the premium
        for each Primary Insurance Policy to be paid on a timely basis and shall
        pay
        such premium out of its own funds if it is not otherwise paid. The Master
        Servicer or the related Sub-Servicer, if any, will not cancel or refuse to
        renew
        any such Primary Insurance Policy in effect on the Closing Date (or, in the
        case
        of a Eligible Substitute Mortgage Loan, on the date of substitution) that
        is
        required to be kept in force under this Agreement unless a replacement Primary
        Insurance Policy for such canceled or non-renewed policy is obtained from
        and
        maintained with an insurer.

       

      The
        Master Servicer shall not take, or permit any Sub-Servicer to 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 or Sub-Servicer,
        would have been covered thereunder. The Master Servicer will comply in the
        performance of this Agreement with all reasonable rules and requirements
        of each
        insurer under each Primary Insurance Policy. In connection with any assumption
        and modification agreement or substitution of liability agreement entered
        into
        or to be entered into pursuant to Section 3.15, the Master Servicer shall
        promptly notify the insurer under the related Primary Insurance Policy, if
        any,
        of such assumption in accordance with the terms of such policies and shall
        take
        all actions which may be required by such insurer as a condition to the
        continuation of coverage under the Primary Insurance Policy. If any such
        Primary
        Insurance Policy is terminated as a result of such assumption, the Master
        Servicer or the related Sub-Servicer shall obtain a replacement Primary
        Insurance Policy as provided above.

       

      In
        connection with its activities as administrator and servicer of the Mortgage
        Loans, the Master Servicer agrees to prepare and present, on behalf of itself,
        the Trustee and the Certificateholders, claims to the insurer under any Primary
        Insurance Policy in a timely fashion in accordance with the terms of such
        policies and, in this regard, to take such action as shall be necessary to
        permit recovery under any Primary Insurance Policy respecting a defaulted
        Mortgage Loan. Any amounts collected by the Master Servicer under any Primary
        Insurance Policy shall be deposited in the Collection Account, subject to
        withdrawal pursuant to Section 3.11; and any amounts collected by the Master
        Servicer under any Primary Insurance Policy in respect of any REO Property
        shall
        be deposited in the Collection Account, subject to withdrawal pursuant to
        Section 3.23. In those cases in which a Mortgage Loan is serviced by a
        Sub-Servicer, the Sub-Servicer, on behalf of itself, the Trustee, and the
        Certificateholders, will present claims to the insurer under any Primary
        Insurance Policy and all collections thereunder shall be deposited initially
        in
        the Sub-Servicing Account.

       

      Section
        3.14 Maintenance
        of Hazard Insurance and Errors and Omissions and Fidelity Coverage.

       

      (a) The
        Master Servicer shall cause to be maintained for each Mortgage Loan fire
        insurance with extended coverage on the related Mortgaged Property in an
        amount
        which is at least equal to the least of (i) the current principal balance
        of
        such Mortgage Loan, (ii) the amount necessary to fully compensate for any
        damage
        or loss to the improvements that are a part of such property on a replacement
        cost basis and (iii) the maximum insurable value of the improvements which
        are a
        part of such Mortgaged Property, in each case in an amount not less than
        such
        amount as is necessary to avoid the application of any coinsurance clause
        contained in the related hazard insurance policy. The Master Servicer shall
        also
        cause to be maintained fire insurance with extended coverage on each REO
        Property in an amount which is at least equal to the lesser of (i) the maximum
        insurable value of the improvements which are a part of such property and
        (ii)
        the outstanding principal balance of the related Mortgage Loan at the time
        it
        became an REO Property, plus accrued interest at the Loan Rate and related
        Servicing Advances. The Master Servicer will comply in the performance of
        this
        Agreement with all reasonable rules and requirements of each insurer under
        any
        such hazard policies. Any amounts to be collected by the Master Servicer
        under
        any such policies (other than amounts to be applied to the restoration or
        repair
        of the property subject to the related Mortgage or amounts to be released
        to the
        Mortgagor in accordance with the procedures that the Master Servicer would
        follow in servicing loans held for its own account, subject to the terms
        and
        conditions of the related Mortgage and Mortgage Note) shall be deposited
        in the
        Collection Account, within two Business Days after receipt thereof, subject
        to
        withdrawal pursuant to Section 3.11, if received in respect of a Mortgage
        Loan,
        or in the REO Account, subject to withdrawal pursuant to Section 3.23, if
        received in respect of an REO Property. Any cost incurred by the Master Servicer
        in maintaining any such insurance shall not, for the purpose of calculating
        distributions to Certificateholders, be added to the unpaid principal balance
        of
        the related Mortgage Loan, notwithstanding that the terms of such Mortgage
        Loan
        so permit. It is understood and agreed that no earthquake, windstorm or other
        additional insurance is to be required of any Mortgagor other than pursuant
        to
        such applicable laws and regulations as shall at any time be in force and
        as
        shall require such additional insurance. If the Mortgaged Property or REO
        Property is at any time in an area identified in the Federal Register by
        the
        Federal Emergency Management Agency as having special flood hazards, the
        Master
        Servicer will cause to be maintained a flood insurance policy in respect
        thereof. Such flood insurance shall be in an amount equal to the lesser of
        (i)
        the unpaid principal balance of the related Mortgage Loan and (ii) the maximum
        amount of such insurance available for the related Mortgaged Property under
        the
        national flood insurance program (assuming that the area in which such Mortgaged
        Property is located is participating in such program).

       

      If
        the
        Master Servicer shall obtain and maintain a blanket fire insurance policy
        with
        extended coverage 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 two sentences of this Section 3.14, it being understood and
        agreed
        that such policy may contain a deductible clause, in which case the Master
        Servicer shall, in the event that there shall not have been maintained on
        the
        related Mortgaged Property or REO Property a policy complying with the first
        two
        sentences of this Section 3.14, and there shall have been one or more losses
        which would have been covered by such policy, deposit to the Collection Account
        from its own funds the amount not otherwise payable under the blanket policy
        because of such deductible clause. In connection with its activities as
        administrator and servicer of the Mortgage Loans, the Master Servicer agrees
        to
        prepare and present, on behalf of itself, the Trustee and Certificateholders,
        claims under any such blanket policy in a timely fashion in accordance with
        the
        terms of such policy.

       

      (b) The
        Master Servicer shall keep in force during the term of this Agreement a policy
        or policies of insurance covering errors and omissions for failure in the
        performance of the Master Servicer’s obligations under this Agreement, which
        policy or policies shall be in such form and amount that would meet the
        requirements of Fannie Mae or Freddie Mac if it were the purchaser of the
        Mortgage Loans, unless the Master Servicer has obtained a waiver of such
        requirements from Fannie Mae or Freddie Mac. The Master Servicer shall also
        maintain a fidelity bond in the form and amount that would meet the requirements
        of Fannie Mae or Freddie Mac, unless the Master Servicer has obtained a waiver
        of such requirements from Fannie Mae or Freddie Mac. The Master Servicer
        shall
        provide the Trustee (upon the Trustee’s reasonable request) with copies of any
        such insurance policies and fidelity bond. The Master Servicer shall be deemed
        to have complied with this provision if an Affiliate of the Master Servicer
        has
        such errors and omissions and fidelity bond coverage and, by the terms of
        such
        insurance policy or fidelity bond, the coverage afforded thereunder extends
        to
        the Master Servicer. Any such errors and omissions policy and fidelity bond
        shall by its terms not be cancelable without thirty days’ prior written notice
        to the Trustee. The Master Servicer shall also cause each Sub-Servicer to
        maintain a policy of insurance covering errors and omissions and a fidelity
        bond
        which would meet such requirements.

       

      Section
        3.15 Enforcement
        of Due-On-Sale Clauses; Assumption Agreements.

       

      The
        Master Servicer will, to the extent it has knowledge of any conveyance or
        prospective conveyance of any Mortgaged Property by any Mortgagor (whether
        by
        absolute conveyance or by contract of sale, and whether or not the Mortgagor
        remains or is to remain liable under the Mortgage Note and/or the Mortgage),
        exercise its rights to accelerate the maturity of such Mortgage Loan under
        the
“due-on-sale” clause, if any, applicable thereto; provided, however, that the
        Master Servicer shall not exercise any such rights if prohibited by law from
        doing so or if the exercise of such rights would impair or threaten to impair
        any recovery under the related Primary Insurance Policy or Limited Purpose
        Surety Bond, if any. If the Master Servicer reasonably believes it is unable
        under applicable law to enforce such “due-on-sale” clause, or if any of the
        other conditions set forth in the proviso to the preceding sentence apply,
        the
        Master Servicer will enter into an assumption and modification agreement
        from or
        with the person to whom such property has been conveyed or is proposed to
        be
        conveyed, pursuant to which such person becomes liable under the Mortgage
        Note
        and, to the extent permitted by applicable state law, the Mortgagor remains
        liable thereon. The Master Servicer is also authorized to enter into a
        substitution of liability agreement with such person, pursuant to which the
        original Mortgagor is released from liability and such person is substituted
        as
        the Mortgagor and becomes liable under the Mortgage Note, provided that no
        such
        substitution shall be effective unless such person satisfies the underwriting
        criteria of the Master Servicer and has a credit risk rating at least equal
        to
        that of the original Mortgagor. In connection with any assumption or
        substitution, the Master Servicer shall apply such underwriting standards
        and
        follow such practices and procedures as shall be normal and usual in its
        general
        mortgage servicing activities and as it applies to other mortgage loans owned
        solely by it. The Master Servicer shall not take or enter into any assumption
        and modification agreement, however, unless (to the extent practicable in
        the
        circumstances) it shall have received confirmation, in writing, of the continued
        effectiveness of any applicable Primary Insurance Policy or hazard insurance
        policy, or a new policy meeting the requirements of this Section is obtained.
        Any fee collected by the Master Servicer in respect of an assumption or
        substitution of liability agreement will be retained by the Master Servicer
        as
        additional servicing compensation. In connection with any such assumption,
        no
        material term of the Mortgage Note (including but not limited to the related
        Loan Rate and the amount of the Monthly Payment) may be amended or modified,
        except as otherwise required pursuant to the terms thereof. The Master Servicer
        shall notify the Trustee that any such substitution or assumption agreement
        has
        been completed by forwarding to the Trustee the executed original of such
        substitution or assumption agreement, which document shall be added to the
        related Mortgage File and shall, for all purposes, be considered a part of
        such
        Mortgage File to the same extent as all other documents and instruments
        constituting a part thereof.

       

      Notwithstanding
        the foregoing paragraph or any other provision of this Agreement, the Master
        Servicer shall not be deemed to be in default, breach or any other violation
        of
        its obligations hereunder by reason of any assumption of a Mortgage Loan
        by
        operation of law or by the terms of the Mortgage Note or any assumption which
        the Master Servicer may be restricted by law from preventing, for any reason
        whatever. For purposes of this Section 3.15, the term “assumption” is deemed to
        also include a sale (of the Mortgaged Property) subject to the Mortgage that
        is
        not accompanied by an assumption or substitution of liability
        agreement.

       

      Section
        3.16 Realization
        Upon Defaulted Mortgage Loans.

       

      (a) The
        Master Servicer shall, consistent with the servicing standard set forth in
        Section 3.01, foreclose upon or otherwise comparably convert the ownership
        of
        properties securing such of the Mortgage Loans as come into and continue
        in
        default and as to which no satisfactory arrangements can be made for collection
        of delinquent payments pursuant to Section 3.07. The Master Servicer shall
        be
        responsible for all costs and expenses incurred by it in any such proceedings;
        provided, however, that such costs and expenses will be recoverable as Servicing
        Advances by the Master Servicer as contemplated in Section 3.11 and Section
        3.23. The foregoing is subject to the provision that, in any case in which
        Mortgaged Property shall have suffered damage from an Uninsured Cause, the
        Master Servicer shall not be required to expend its own funds toward the
        restoration of such property unless it shall determine in its discretion
        that
        such restoration will increase the proceeds of liquidation of the related
        Mortgage Loan after reimbursement to itself for such expenses.

       

      (b) Notwithstanding
        the foregoing provisions of this Section 3.16 or any other provision of this
        Agreement, with respect to any Mortgage Loan as to which the Master Servicer
        has
        received actual notice of, or has actual knowledge of, the presence of any
        toxic
        or hazardous substance on the related Mortgaged Property, the Master Servicer
        shall not, on behalf of the Trustee, either (i) obtain title to such Mortgaged
        Property as a result of or in lieu of foreclosure or otherwise, or (ii)
        otherwise acquire possession of, or take any other action with respect to,
        such
        Mortgaged Property, if, as a result of any such action, the Trustee, the
        Trust
        Fund or the Certificateholders would be considered to hold title to, to be
        a
“mortgagee-in-possession” of, or to be an “owner” or “operator” of such
        Mortgaged Property within the meaning of the Comprehensive Environmental
        Response, Compensation and Liability Act of 1980, as amended from time to
        time,
        or any comparable law, unless the Master Servicer has also previously
        determined, based on its reasonable judgment and a report prepared by a Person
        who regularly conducts environmental audits using customary industry standards,
        that:

       

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

       

      (2) there
        are
        no circumstances present at such Mortgaged Property relating to the use,
        management or disposal of any hazardous substances, hazardous materials,
        hazardous wastes, or petroleum-based materials for which investigation, testing,
        monitoring, containment, clean-up or remediation could be required under
        any
        federal, state or local law or regulation, or that if any such materials
        are
        present for which such action could be required, that it would be in the
        best
        economic interest of the Trust Fund to take such actions with respect to
        the
        affected Mortgaged Property.

       

      The
        cost
        of the environmental audit report contemplated by this Section 3.23 shall
        be
        advanced by the Master Servicer, subject to the Master Servicer’s right to be
        reimbursed therefor from the Collection Account as provided in Section
        3.11(a)(ix), such right of reimbursement being prior to the rights of
        Certificateholders to receive any amount in the Collection Account received
        in
        respect of the affected Mortgage Loan or other Mortgage Loans.

       

      If
        the
        Master Servicer determines, as described above, that it is in the best economic
        interest of the Trust Fund to take such actions as are necessary to bring
        any
        such Mortgaged Property into compliance with applicable environmental laws,
        or
        to take such action with respect to the containment, clean-up or remediation
        of
        hazardous substances, hazardous materials, hazardous wastes or petroleum
        based
        materials affecting any such Mortgaged Property, then the Master Servicer
        shall
        take such action as it deems to be in the best economic interest of the Trust
        Fund. The cost of any such compliance, containment, cleanup or remediation
        shall
        be advanced by the Master Servicer, subject to the Master Servicer’s right to be
        reimbursed therefor from the Collection Account as provided in Section
        3.11(a)(ix), such right of reimbursement being prior to the rights of
        Certificateholders to receive any amount in the Collection Account received
        in
        respect of the affected Mortgage Loan or other Mortgage Loans.

       

      (c) The
        Master Servicer may at its option purchase from the Trust Fund any Mortgage
        Loan
        that is 90 days or more Delinquent, which the Master Servicer determines
        in good
        faith will otherwise become subject to foreclosure proceedings (evidence
        of such
        determination to be delivered in writing to the Trustee prior to purchase),
        at a
        price equal to the sum of the outstanding Stated Principal Balance of such
        Mortgage Loan and accrued and unpaid interest thereon at the Loan Rate through
        the end of the Due Period preceding the last Distribution Date, less
        unreimbursed Servicing Advances, Advances and any unpaid Servicing Fees
        allocable to such Mortgage Loan. The purchase price for any Mortgage Loan
        purchased hereunder shall be deposited in the Collection Account, and the
        Trustee, upon receipt of written certification from the Master Servicer of
        such
        deposit, shall release or cause to be released to the Master Servicer the
        related Mortgage File and shall execute and deliver such instruments of transfer
        or assignment, in each case without recourse, as the Master Servicer shall
        furnish and as shall be necessary to vest in the Master Servicer title to
        any
        Mortgage Loan released pursuant hereto.

       

      (d) Proceeds
        received in connection with any Final Recovery Determination, as well as
        any
        recovery resulting from a partial collection of Insurance Proceeds or
        Liquidation Proceeds, in respect of any Mortgage Loan, will be applied in
        the
        following order of priority: first, to reimburse the Master Servicer or any
        Sub-Servicer for any related unreimbursed Servicing Advances and Advances,
        pursuant to Section 3.11(a)(ii) or (a)(iii); second, to accrued and unpaid
        interest on the Mortgage Loan, to the date of the Final Recovery Determination,
        or to the Due Date prior to the Distribution Date on which such amounts are
        to
        be distributed if not in connection with a Final Recovery Determination;
        third,
        as a recovery of principal of the Mortgage Loan; and fourth, to Foreclosure
        Profits. If the amount of the recovery so allocated to interest is less than
        the
        full amount of accrued and unpaid interest due on such Mortgage Loan, the
        amount
        of such recovery will be allocated by the Master Servicer as follows: first,
        to
        unpaid Servicing Fees; and second, to the balance of the interest then due
        and
        owing. The portion of the recovery so allocated to unpaid Servicing Fees
        shall
        be reimbursed to the Master Servicer or any Sub-Servicer pursuant to Section
        3.11(a)(iii).

       

      (e) In
        addition to the foregoing, the Trustee, as assignee of the Pledged Asset
        Servicing Agreement, shall enforce the obligations of the Pledged Asset Servicer
        to use its best reasonable efforts to realize upon any Pledged Assets for
        such
        of the Pledged Asset Loans as come into and continue in default and as to
        which
        no satisfactory arrangements can be made for collection of delinquent payments
        pursuant to Section 3.11; provided that pursuant to the Pledged Asset Servicing
        Agreement, the Pledged Asset Servicer shall not, on behalf of the Trustee,
        obtain title to any such Pledged Assets as a result of or in lieu of the
        disposition thereof or otherwise; and provided further that (i) the Pledged
        Asset Servicer, pursuant to the Pledged Asset Servicing Agreement, shall
        not
        proceed with respect to such Pledged Assets in any manner that would impair
        the
        ability to recover against the related Mortgaged Property, and (ii) the Master
        Servicer shall proceed with any acquisition of REO Property in a manner that
        preserves the ability to apply the proceeds of such Pledged Assets against
        amounts owed under the defaulted Mortgage Loan. Any proceeds realized from
        such
        Pledged Assets (other than amounts to be released to the Mortgagor or the
        related guarantor in accordance with procedures that the Master Servicer
        would
        follow in servicing loans held for its own account, subject to the terms
        and
        conditions of the related Mortgage and Mortgage Note and to the terms and
        conditions of any security agreement, guarantee agreement, mortgage or other
        agreement governing the disposition of the proceeds of such Pledged Assets)
        shall be deposited in the Distribution Account, subject to withdrawal pursuant
        to Section 3.11; provided, that such proceeds shall not be so deposited if
        the
        Required Surety Payment in respect of such Pledged Asset Loan has been deposited
        in the Collection Account (except to the extent of any such proceeds taken
        into
        account in calculating the amount of the Required Surety Payment). Any other
        payment received by a Seller in respect of such Pledged Assets shall be
        deposited in the Distribution Account subject to withdrawal pursuant to Section
        3.11.

       

      Section
        3.17 Trustee
        to Cooperate; Release of Mortgage Files.

       

      (a) Upon
        the
        payment in full of any Mortgage Loan, or the receipt by the Master Servicer
        of a
        notification that payment in full shall be escrowed in a manner customary
        for
        such purposes, the Master Servicer will immediately notify the Trustee by
        delivering a certification in duplicate (one of which will be returned to
        the
        Master Servicer with the Mortgage File) in the form of Exhibit E which shall
        be
        signed by a Servicing Officer or in a mutually agreeable electronic format
        which
        will in lieu of a signature be deemed to originate from a Servicing Officer
        (which certification shall include a statement to the effect that all amounts
        received or to be received in connection with such payment which are required
        to
        be deposited in the Collection Account pursuant to Section 3.10 have been
        or
        will be so deposited) of a Servicing Officer and shall request delivery to
        it of
        the Mortgage File. Upon receipt of such certification and request, the Trustee
        shall promptly release the related Mortgage File to the Master Servicer.
        No
        expenses incurred in connection with any instrument of satisfaction or deed
        of
        reconveyance shall be chargeable to the Collection Account or the Distribution
        Account.

       

      (b) From
        time
        to time and as appropriate for the servicing or foreclosure of any Mortgage
        Loan, including, for this purpose, collection under any Primary Insurance
        Policy
        or any other insurance policy relating to the Mortgage Loans, the Trustee
        shall,
        upon request of the Master Servicer and delivery to the Trustee in duplicate
        (one of which will be returned to the Master Servicer with the Mortgage File)
        of
        a Request for Release in the form of Exhibit E, which shall be signed by
        a
        Servicing Officer or in a mutually agreeable electronic format which will
        in
        lieu of a signature be deemed to originate from a Servicing Officer release
        the
        related Mortgage File to the Master Servicer, and the Trustee shall, at the
        direction of the Master Servicer, and in the form provided by the Master
        Servicer execute such documents as shall be necessary to the prosecution
        of any
        such proceedings. Such Request for Release shall obligate the Master Servicer
        to
        return each and every document previously requested from the Mortgage File
        to
        the Trustee when the need therefor by the Master Servicer no longer exists,
        unless the Mortgage Loan has been liquidated and the Liquidation Proceeds
        relating to the Mortgage Loan have been deposited in the Collection Account
        or
        the Mortgage File or such document has been delivered to an attorney, or
        to a
        public trustee or other public official as required by law, for purposes
        of
        initiating or pursuing legal action or other proceedings for the foreclosure
        of
        the Mortgaged Property either judicially or non-judicially, and the Master
        Servicer has delivered to the Trustee a certificate of a Servicing Officer
        certifying as to the name and address of the Person to which such Mortgage
        File
        or such document was delivered and the purpose or purposes of such delivery.
        Upon receipt of a certificate of a Servicing Officer stating that such Mortgage
        Loan was liquidated and that all amounts received or to be received in
        connection with such liquidation that are required to be deposited into the
        Collection Account have been so deposited, or that such Mortgage Loan has
        become
        an REO Property, the Master Servicer shall no longer be obligated to return
        the
        documents released by the Trustee pursuant to the related Request for Release
        and a copy of the Request for Release shall be released by the Trustee to
        the
        Master Servicer.

       

      (c) Upon
        written certification of a Servicing Officer, the Trustee shall execute and
        deliver to the Master Servicer any court pleadings, requests for trustee’s sale
        or other documents reasonably necessary to the foreclosure or trustee’s sale in
        respect of a Mortgaged Property or to any legal action brought to obtain
        judgment against any Mortgagor on the Mortgage Note or Mortgage or to obtain
        a
        deficiency judgment, or to enforce any other remedies or rights provided
        by the
        Mortgage Note or Mortgage or otherwise available at law or inequity. Each
        such
        certification shall include a request that such pleadings or documents be
        executed by the Trustee and a statement as to the reason such documents or
        pleadings are required and that the execution and delivery thereof by the
        Trustee will not invalidate or otherwise affect the lien of the Mortgage,
        except
        for the termination of such a lien upon completion of the foreclosure or
        trustee’s sale.

       

      Section
        3.18 Servicing
        Compensation.

       

      As
        compensation for the activities of the Master Servicer hereunder, the Master
        Servicer shall be entitled to the Servicing Fee with respect to each Mortgage
        Loan payable solely from payments of interest and Buydown Funds in respect
        of
        such Mortgage Loan, subject to Section 3.24. In addition, the Master Servicer
        shall be entitled to recover unpaid Servicing Fees out of Insurance Proceeds
        or
        Liquidation Proceeds to the extent permitted by Section 3.11(a)(iii) and
        out of
        amounts derived from the operation and sale of an REO Property to the extent
        permitted by Section 3.23. The right to receive the Servicing Fee may not
        be
        transferred in whole or in part except in connection with the transfer of
        all of
        the Master Servicer’s responsibilities and obligations under this Agreement. In
        the event that Liquidation Proceeds, Insurance Proceeds and proceeds from
        any
        REO Disposition (net of amounts reimbursable therefrom pursuant to Section
        3.11(a)(iii)) in respect of a Cash Liquidation or REO Disposition exceed
        the
        unpaid principal balance of such Mortgage Loan plus unpaid interest accrued
        thereon (including REO Imputed Interest) at a per annum rate equal to the
        related Net Mortgage Rate, the Master Servicer shall be entitled to retain
        therefrom and to pay to itself any Foreclosure Profits and any Servicing
        Fee
        considered to be accrued but unpaid.

       

      Additional
        servicing compensation in the form of assumption fees, late payment charges
        and
        other similar fees and charges shall be retained by the Master Servicer (subject
        to Section 3.24) only to the extent such fees or charges are received by
        the
        Master Servicer. The Master Servicer shall also be entitled pursuant to Section
        3.11(a)(iv) to withdraw from the Collection Account, and pursuant to Section
        3.23(b) to withdraw from any REO Account, as additional servicing compensation,
        interest or other income earned on deposits therein, subject to Section 3.12
        and
        Section 3.24. The Master Servicer shall be required to pay all expenses incurred
        by it in connection with its servicing activities hereunder (including premiums
        for the insurance required by Section 3.14, to the extent such premiums are
        not
        paid by the related Mortgagors or by a Sub-Servicer, servicing compensation
        of
        each Sub-Servicer, and to the extent provided herein in Section 8.05, the
        fees
        and expenses of the Trustee) and shall not be entitled to reimbursement therefor
        except as specifically provided herein.

       

      Section
        3.19 Reports
        to the Trustee; Collection Account Statements.

       

      Upon
        request from the Trustee, the Master Servicer shall forward to the Trustee
        and
        the Depositor a statement prepared by the Master Servicer setting forth the
        status of the Collection Account as of the close of business on such
        Distribution Date and showing, for the period covered by such statement,
        the
        aggregate amount of deposits into and withdrawals from the Collection Account
        of
        each category of deposit specified in Section 3.10(a) and each category of
        withdrawal specified in Section 3.11. Such statement may be in the form of
        the
        then current Fannie Mae Monthly Accounting Report for its Guaranteed Mortgage
        Pass-Through Program with appropriate additions and changes, and shall also
        include information as to the aggregate of the outstanding principal balances
        of
        all of the Mortgage Loans as of the last day of the calendar month immediately
        preceding such Distribution Date. Copies of such statement shall be provided
        by
        the Trustee to any Certificateholder and to any Person identified to the
        Trustee
        as a prospective transferee of a Certificate, upon request at the expense
        of the
        requesting party, provided such statement is delivered by the Master Servicer
        to
        the Trustee.

       

      Section
        3.20 Annual
        Statement as to Compliance.

       

      The
        Master Servicer will deliver to the Trustee and the Depositor, not later
        than
        February 28 of each calendar year beginning in 2007 (and
        no
        later than April 15 of any calendar year in which the Trust Fund is no longer
        subject to the Exchange Act reporting requirements),
        an
        Officers’ Certificate (an “Annual Statement of Compliance”) stating, as to each
        signatory thereof, that (i) a review of the activities of the Master Servicer
        during the preceding calendar year and of performance under this Agreement
        has
        been made under such officers’ supervision and (ii) to the best of such
        officers’ knowledge, based on such review, the Master Servicer has fulfilled all
        of its obligations under this Agreement or other applicable servicing agreement
        in all material respects throughout such year, or, if there has been a failure
        to fulfill any such obligation in any material respect, specifying each such
        failure known to such officer and the nature and status thereof. Such Annual
        Statement of Compliance shall contain no restrictions or limitations on its
        use.
        In the event that the Master Servicer has delegated any servicing
        responsibilities with respect to the Mortgage Loans to a Sub-Servicer, the
        Master Servicer shall deliver a similar Annual Statement of Compliance by
        that
        Sub-Servicer to the Trustee and Depositor as described above as and when
        required with respect to the Master Servicer.

       

      

       

      If
        the
        Master Servicer cannot deliver the related Annual Statement of Compliance
        by
        February 28th of such year, the Trustee, at its sole option, may permit a
        cure
        period for the Master Servicer to deliver such Annual Statement of Compliance,
        but in no event later than March 10th of such year.

       

      Section
        3.21 Assessments
        of Compliance and Attestation Reports.

       

      Pursuant
        to Rules 13a-18 and 15d-18 of the Exchange Act and Item 1123 of Regulation
        AB,
        the Master Servicer shall deliver to the Trustee on or before February 28
        of
        each calendar year beginning in 2007 (and no later than April 15 of any calendar
        year in which the Trust Fund is no longer subject to the Exchange Act reporting
        requirements), a report regarding the Master Servicer’s assessment of compliance
        (an “Assessment of Compliance”) with the Servicing Criteria during the preceding
        calendar year. The Assessment of Compliance must be as set forth in Regulation
        AB, the Assessment of Compliance must contain the following:

       

      (a) A
        statement by such officer of its responsibility for assessing compliance
        with
        the Servicing Criteria applicable to the Master Servicer;

       

      (b) A
        statement by such officer that such officer used the Servicing Criteria attached
        as Exhibit O hereto, and which will also be attached to the Assement of
        Compliance, to assess compliance with the Servicing Criteria applicable to
        the
        Master Servicer;

       

      (c) An
        assessment by such officer of the Master Servicer’s compliance with the
        applicable Servicing Criteria for the period consisting of the preceding
        calendar year, including disclosure of any material instance of noncompliance
        with respect thereto during such period, which assessment shall be based
        on the
        activities it performs with respect to asset-backed securities transactions
        taken as a whole involving the Master Servicer, that are backed by the same
        asset type as the Mortgage Loans;

       

      (d) A
        statement that a registered public accounting firm has issued an attestation
        report on the Master Servicer’s Assessment of Compliance for the period
        consisting of the preceding calendar year; and

       

      (e) A
        statement as to which of the Servicing Criteria, if any, are not applicable
        to
        the Master Servicer, which statement shall be based on the activities it
        performs with respect to asset-backed securities transactions taken as a
        whole
        involving the Master Servicer, that are backed by the same asset type as
        the
        Mortgage Loans.

       

      Such
        report at a minimum shall address each of the Servicing Criteria specified
        on
        Exhibit O hereto which are indicated as applicable to the Master
        Servicer.

       

      On
        or
        before February 28 of each calendar year beginning in 2007 (and no later
        than
        April 15 of any calendar year in which the Trust Fund is no longer subject
        to
        the Exchange Act reporting requirements), the Master Servicer shall furnish
        to
        the Trustee a report (an “Attestation Report”) by a registered public accounting
        firm that attests to, and reports on, the Assessment of Compliance made by
        the
        Company, as required by Rules 13a-18 and 15d-18 of the Exchange Act and Item
        1122(b) of Regulation AB, which Attestation Report must be made in accordance
        with standards for attestation reports issued or adopted by the Public Company
        Accounting Oversight Board. 

       

      The
        Master Servicer shall cause any Sub-Servicer, and each subcontractor determined
        by the Master Servicer to be “participating in the servicing function” within
        the meaning of Item 1122 of Regulation AB, to deliver to the Trustee and
        the
        Depositor an Assessment of Compliance and Attestation Report as and when
        provided above.

       

      Such
        Assessment of Compliance, as to any Sub-Servicer, shall at a minimum address
        each of the Servicing Criteria specified on Exhibit O hereto which are indicated
        as applicable to any “primary servicer” to the extent they are applicable to
        such Sub-servicer. Notwithstanding the foregoing, as to any subcontractor,
        an
        Assessment of Compliance is not required to be delivered unless it is required
        as part of a Form 10-K with respect to the Trust Fund.

       

      If
        the
        Master Servicer cannot deliver any Assessment of Compliance or Attestation
        Report by February 28th of such year, the Trustee, at its sole option, may
        permit a cure period for the Master Servicer to deliver such Assessment of
        Compliance or Attestation Report, but in no event later than March 10th of
        such
        year.

       

      On
        or
        before March 15th
        of each
        calendar year (unless a Form 15 Suspension Notice shall have been filed),
        the
        Trustee shall provide an Assessment of Compliance and Attestation Report,
        as and
        when provided above, which shall at a minimum address each of the Servicing
        Criteria specified on Exhibit O hereto which are indicated as applicable
        to the
“trustee.” The Trustee shall cause any subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
        Regulation AB to deliver to the Depositor an Assessment of Compliance and
        Attestation Report as and when provided above. 

       

      For
        as
        long as the Depositor is subject to Exchange Act reporting with respect to
        the
        Trust Fund, the Trustee shall notify the Depositor and the Master Servicer
        within three (3) Business Days of the related Distribution Date (i) of any
        legal
        proceedings pending against the Trustee of the type described in Item 1117
        (§
229.1117) of Regulation AB and (ii) if the Trustee shall become (but only
        to the
        extent not previously disclosed) at any time an affiliate of any of the parties
        listed on Exhibit Q hereto, together with a description thereof. Should the
        identification of any of the parties set forth on Exhibit Q change, the
        Depositor shall promptly notify the Trustee.

       

      Section
        3.22 Access
        to
        Certain Documentation.

       

      The
        Master Servicer shall provide to the Office of Thrift Supervision, the FDIC,
        and
        any other federal or state banking or insurance regulatory authority that
        may
        exercise authority over any Certificateholder, access to the documentation
        regarding the Mortgage Loans required by applicable laws and regulations.
        Such
        access shall be afforded without charge, but only upon reasonable request
        and
        during normal business hours at the offices of the Master Servicer designated
        by
        it. In addition, access to the documentation regarding the Mortgage Loans
        will
        be provided to any Certificateholder, the Trustee and to any Person identified
        to the Master Servicer as a prospective transferee of a Certificate, upon
        reasonable request during normal business hours at the offices of the Master
        Servicer designated by it at the expense of the Person requesting such
        access.

       

      Section
        3.23 Title,
        Management and Disposition of REO Property.

       

      (a) The
        deed
        or certificate of sale of any REO Property shall be taken in the name of
        the
        Trustee, or its nominee, in trust for the benefit of the Certificateholders.
        The
        Master Servicer, on behalf of the Trust Fund, shall either sell any REO Property
        within three years after the end of the calendar year in which the Trust
        Fund
        acquires ownership of such REO Property for purposes of Section 860G(a)(8)
        of
        the Code or request from the Internal Revenue Service, no later than 60 days
        before the day on which the three-year grace period would otherwise expire,
        an
        extension of the three-year grace period, unless the Master Servicer shall
        have
        delivered to the Trustee and the Depositor an Opinion of Counsel, addressed
        to
        the Trustee and the Depositor, to the effect that the holding by the Trust
        Fund
        of such REO Property subsequent to the three-year grace period after its
        acquisition will not result in the imposition on the Trust Fund of taxes
        on
“prohibited transactions” thereof, as defined in Section 860F of the Code, or
        cause the Trust Fund to fail to qualify as a REMIC under Federal law at any
        time
        that any Certificates are outstanding. The Master Servicer shall manage,
        conserve, protect and operate each REO Property for the Certificateholders
        solely for the purpose of its prompt disposition and sale in a manner which
        does
        not cause such REO Property to fail to qualify as “foreclosure property” within
        the meaning of Section 860G(a)(8) of the Code or result in the receipt by
        the
        Trust Fund of any “income from non-permitted assets” within the meaning of
        Section 860F(a)(2)(B) of the Code, or any “net income from foreclosure property”
which is subject to taxation under the REMIC Provisions.

       

      (b) The
        Master Servicer shall segregate and hold all funds collected and received
        in
        connection with the operation of any REO Property separate and apart from
        its
        own funds and general assets and shall establish and maintain with respect
        to
        REO Properties an account held in trust for the Trustee for the benefit of
        the
        Certificateholders (the “REO Account”), which shall be an Eligible Account. The
        Master Servicer shall be permitted to allow the Collection Account to serve
        as
        the REO Account, subject to separate ledgers for each REO Property. The Master
        Servicer shall be entitled to retain or withdraw any interest income paid
        on
        funds deposited in the REO Account.

       

      (c) The
        Master Servicer shall have full power and authority, subject only to the
        specific requirements and prohibitions of this Agreement, to do any and all
        things in connection with any REO Property as are consistent with the manner
        in
        which the Master Servicer manages and operates similar property owned by
        the
        Master Servicer or any of its Affiliates, all on such terms and for such
        period
        as the Master Servicer deems to be in the best interests of Certificateholders.
        In connection therewith, the Master Servicer shall deposit, or cause to be
        deposited in the clearing account (which account must be an Eligible Account)
        in
        which it customarily deposits payments and collections on mortgage loans
        in
        connection with its mortgage loan servicing activities on a daily basis,
        and in
        no event more than one Business Day after the Master Servicer’s receipt thereof,
        and shall thereafter deposit in the REO Account, in no event more than two
        Business Days after the deposit of such funds into the clearing account,
        all
        revenues received by it with respect to an REO Property and shall withdraw
        therefrom funds necessary for the proper operation, management and maintenance
        of such REO Property including, without limitation:

       

      (i) all
        insurance premiums due and payable in respect of such REO Property;

       

      (ii) all
        real
        estate taxes and assessments in respect of such REO Property that may result
        in
        the imposition of a lien thereon; and

       

      (iii) all
        costs
        and expenses necessary to maintain such REO Property.

       

      To
        the
        extent that amounts on deposit in the REO Account with respect to an REO
        Property are insufficient for the purposes set forth in clauses (i) through
        (iii) above with respect to such REO Property, the Master Servicer shall
        advance
        from its own funds such amount as is necessary for such purposes if, but
        only
        if, the Master Servicer would make such advances if the Master Servicer owned
        the REO Property and if in the Master Servicer’s judgment, the payment of such
        amounts will be recoverable from the rental or sale of the REO
        Property.

       

      Notwithstanding
        the foregoing, neither the Master Servicer nor the Trustee shall:

       

      (i) authorize
        the Trust Fund to enter into, renew or extend any New Lease with respect
        to any
        REO Property, if the New Lease by its terms will give rise to any income
        that
        does not constitute Rents from Real Property;

       

      (ii) authorize
        any amount to be received or accrued under any New Lease other than amounts
        that
        will constitute Rents from Real Property;

       

      (iii) authorize
        any construction on any REO Property, other than the completion of a building
        or
        other improvement thereon, and then only if more than ten percent of the
        construction of such building or other improvement was completed before default
        on the related Mortgage Loan became imminent, all within the meaning of Section
        856(e)(4)(B) of the Code; or

       

      (iv) authorize
        any Person to Directly Operate any REO Property on any date more than 90
        days
        after its date of acquisition by the Trust Fund;

       

      unless,
        in any such case, the Master Servicer has obtained an Opinion of Counsel,
        provided to the Trustee, to the effect that such action will not cause such
        REO
        Property to fail to qualify as “foreclosure property” within the meaning of
        Section 860G(a)(8) of the Code at any time that it is held by the Trust Fund,
        in
        which case the Master Servicer may take such actions as are specified in
        such
        Opinion of Counsel.

       

      The
        Master Servicer may contract with any Independent Contractor for the operation
        and management of any REO Property, provided that:

       

      (i) the
        terms
        and conditions of any such contract shall not be inconsistent
        herewith;

       

      (ii) any
        such
        contract shall require, or shall be administered to require, that the
        Independent Contractor pay all costs and expenses incurred in connection
        with
        the operation and management of such REO Property, including those listed
        above
        and remit all related revenues (net of such costs and expenses) to the Master
        Servicer as soon as practicable, but in no event later than thirty days
        following the receipt thereof by such Independent Contractor;

       

      (iii) none
        of
        the provisions of this Section 3.23(c) relating to any such contract or to
        actions taken through any such Independent Contractor shall be deemed to
        relieve
        the Master Servicer of any of its duties and obligations to the Trustee on
        behalf of the Certificateholders with respect to the operation and management
        of
        any such REO Property; and

       

      (iv) the
        Master Servicer shall be obligated with respect thereto to the same extent
        as if
        it alone were performing all duties and obligations in connection with the
        operation and management of such REO Property.

       

      The
        Master Servicer shall be entitled to enter into any agreement with any
        Independent Contractor performing services for it related to its duties and
        obligations hereunder for indemnification of the Master Servicer by such
        Independent Contractor, and nothing in this Agreement shall be deemed to
        limit
        or modify such indemnification. The Master Servicer shall be solely liable
        for
        all fees owed by it to any such Independent Contractor, irrespective of whether
        the Master Servicer’s compensation pursuant to Section 3.18 is sufficient to pay
        such fees; provided that the fees of any Independent Contractor engaged to
        manage, dispose, conserve and protect any REO Property shall be reimbursable
        as
        a Servicing Advance out of the proceeds of the related Mortgage Loan in
        accordance with Section 3.11(a)(iii).

       

      (d) In
        addition to the withdrawals permitted under Section 3.23(c), the Master Servicer
        may from time to time make withdrawals from the REO Account for any REO
        Property: (i) to pay itself or any Sub-Servicer unpaid Servicing Fees in
        respect
        of the related Mortgage Loan; and (ii) to reimburse itself or any Sub-Servicer
        for unreimbursed Servicing Advances and Advances made in respect of such
        REO
        Property or the related Mortgage Loan. On the Master Servicer Remittance
        Date,
        the Master Servicer shall withdraw from each REO Account maintained by it
        and
        deposit into the Distribution Account in accordance with Section 3.10(d)(ii),
        far distribution on the related Distribution Date in accordance with Section
        4.01, the income from the related REO Property received during the prior
        calendar month, net of any withdrawals made pursuant to Section 3.23(c) or
        this
        Section 3.23(d).

       

      (e) Subject
        to the time constraints set forth in Section 3.23(a), and further subject
        to
        obtaining the approval of the insurer under any related Primary Insurance
        Policy
        (if and to the extent that such approvals are necessary to make claims under
        such policies in respect of the affected REO Property), each REO Disposition
        shall be carried out by the Master Servicer at such price and upon such terms
        and conditions as the Master Servicer shall deem necessary or advisable,
        as
        shall be normal and usual in its general servicing activities for similar
        properties.

       

      (f) The
        proceeds from the REO Disposition, net of any amount required by law to be
        remitted to the Mortgagor under the related Mortgage Loan and net of any
        payment
        or reimbursement to the Master Servicer or any Sub-Servicer as provided above
        including fees paid by the Master Servicer to any such Independent Contractor
        engaged to manage, dispose, conserve and protect such REO Property by the
        Master
        Servicer, shall be deposited in the Distribution Account in accordance with
        Section 3.10(d)(ii) on the Master Servicer Remittance Date in the month
        following the receipt thereof for distribution on the related Distribution
        Date
        in accordance with Section 4.01. Any REO Disposition shall be for cash only
        (unless changes in the REMIC Provisions made subsequent to the Startup Day
        allow
        a sale for other consideration).

       

      (g) The
        Master Servicer shall file information returns with respect to the receipt
        of
        mortgage interest received in a trade or business, reports of foreclosures
        and
        abandonments of any Mortgaged Property and cancellation of indebtedness income
        with respect to any Mortgaged Property as required by Sections 6050H, 6050J
        and
        6050P of the Code, respectively. Such reports shall be in form and substance
        sufficient to meet the reporting requirements imposed by such Sections 6050H,
        6050J and 6050P of the Code.

       

      Section
        3.24 Obligations
        of the Master Servicer in Respect of Prepayment Interest
        Shortfalls.

       

      The
        Master Servicer shall deliver to the Trustee for deposit into the Distribution
        Account on or before 5:00 p.m. New York time on the Master Servicer Remittance
        Date from its own funds an amount equal to the lesser of (i) the aggregate
        of
        the Prepayment Interest Shortfalls for the related Distribution Date resulting
        from Principal Prepayments in Full or Curtailments during the related Prepayment
        Period and (ii) the portion of its aggregate Servicing Fee which accrued
        at a
        Servicing Fee Rate for the most recently ended calendar month (“Compensating
        Interest”).

       

      Section
        3.25 Administration
        of Buydown Funds.

       

      The
        Buydown Account established and maintained by the Master Servicer with respect
        to each Buydown Mortgage Loan shall be an Eligible Account. Upon receipt
        from
        the Mortgagor of the amount due on a Due Date for each Buydown Mortgage Loan,
        the Master Servicer will withdraw from the related Buydown Account the
        predetermined amount that, when added to the amount due on such date from
        the
        Mortgagor, equals the Monthly Payment and will deposit that amount together
        with
        the related payment made by the Mortgagor in the Collection Account. The
        Buydown
        Account shall not be an asset of any REMIC and for federal income tax purposes
        shall be owned by the Master Servicer.

       

      If
        any
        Mortgagor on a Buydown Mortgage Loan prepays such Mortgage Loan in its entirety
        during the Buydown Period, when Buydown Funds are required to be applied
        to such
        Buydown Mortgage Loan, the Master Servicer will withdraw from the related
        Buydown Account and remit to such Mortgagor or any other Person in accordance
        with the related Buydown Agreement any Buydown Funds remaining in the Buydown
        Account. If a Principal Prepayment by a Mortgagor during the Buydown Period,
        together with any Buydown Funds in the related Buydown Account, will result
        in a
        Principal Prepayment in Full, the Master Servicer will withdraw from the
        related
        Buydown Account for deposit in the Collection Account the Buydown Funds,
        which
        together with such Principal Prepayment, will result in a Principal Prepayment
        in Full. If a Mortgagor defaults during the Buydown Period with respect to
        a
        Buydown Mortgage Loan and the Mortgaged Property is sold at foreclosure or
        title
        thereto is acquired on behalf of the Certificateholders, the Master Servicer
        will withdraw from the Buydown Account the Buydown Funds (which shall thereupon
        constitute “Liquidation Proceeds” for purposes of this Agreement) for deposit in
        the Collection Account.

       

      Section
        3.26 Obligations
        of the Master Servicer in Respect of Loan Rates and Monthly
        Payments.

       

      In
        the
        event that a shortfall in any collection on or liability with respect to
        any
        Mortgage Loan results from or is attributable to a calculation of the principal
        balance of a Mortgage Loan that was made by the Master Servicer in a manner
        not
        consistent with the terms of the related Mortgage Note and this Agreement,
        the
        Master Servicer, upon discovery or receipt of notice thereof, immediately
        shall
        deliver to the Trustee for deposit in the Distribution Account from its own
        funds the amount of any such shortfall and shall indemnify and hold harmless
        the
        Trust Fund, the Trustee, the Depositor and any successor master servicer
        in
        respect of any such liability. Such indemnities shall survive the termination
        or
        discharge of this Agreement.

       

      
 

      ARTICLE
        IV

      PAYMENTS
        TO CERTIFICATEHOLDERS

       

      Section
        4.01 Distribution
        Account; Distributions.

       

      (a) The
        Master Servicer shall remit to the Trustee for deposit into the Distribution
        Account on or before 5:00 P.M. New York time on each Master Servicer Remittance
        Date by wire transfer of immediately available funds an amount equal to the
        sum
        of (i) any Advance for the immediately succeeding Distribution Date, (ii)
        any
        amount required to be deposited in the Distribution Account pursuant to Sections
        3.10, 3.11, 3.14 or 3.24 and (iii) all other amounts constituting the Available
        Distribution Amount for the immediately succeeding Distribution
        Date.

       

      (b) [reserved]

       

      (c) On
        each
        Distribution Date the Trustee shall distribute to each Certificateholder
        of
        record as of the next preceding Record Date (other than as provided in Section
        10.01 respecting the final distribution) either in immediately available
        funds
        (by wire transfer or otherwise) to the account of such Certificateholder
        at a
        bank or other entity having appropriate facilities therefor, if such
        Certificateholder has so notified the Trustee at least five (5) Business
        Days
        prior to the related Record Date, or otherwise by check mailed to such
        Certificateholder at the address of such Holder appearing in the Certificate
        Register, such Certificateholder’s share (based on the aggregate of the
        Percentage Interests represented by Certificates of the applicable Class
        held by
        such Holder) of the following amounts, in the following order of
        priority:

       

      (i) to
        the
        Senior Certificates, on a pro rata basis based on the Monthly Interest
        Distributable Amount payable on such Certificates with respect to such
        Distribution Date, the Monthly Interest Distributable Amount on such Classes
        of
        Certificates for such Distribution Date, plus any Monthly Interest Distributable
        Amount thereon remaining unpaid from any previous Distribution Date except
        as
        provided in the last paragraph of this Section 4.01(c) (the “Senior Interest
        Distribution Amount”); provided that the Monthly Interest Distributable Amount
        on the Class A-3, Class A-8 and Class A-9 Certificates shall be distributed
        as
        provided in Section 4.01(j) through (l);

       

      (ii) to
        the
        Senior Certificates (other than the Class A-5 Certificates) in the priorities
        and amounts set forth in Section 4.01(d)(i) through (v), the Senior Principal
        Distribution Amount and the Accrual Distribution Amounts (applied to reduce
        the
        Certificate Principal Balances of such Senior Certificates, as
        applicable);

       

      (iii) if
        the
        Certificate Principal Balances of the Subordinate Certificates have not been
        reduced to zero, to the Master Servicer, by remitting for deposit to the
        Collection Account, to the extent of and in reimbursement for any Advances
        previously made with respect to any Mortgage Loan or REO Property which remain
        unreimbursed in whole or in part following the Cash Liquidation or REO
        Disposition of such Mortgage Loan or REO Property, minus any such Advances
        that
        were made with respect to delinquencies that ultimately constituted Excess
        Special Hazard Losses, Excess Fraud Losses, Excess Bankruptcy Losses or
        Extraordinary Losses;

       

      (iv) to
        the
        Holders of the Class B-1 Certificates, the Monthly Interest Distributable
        Amount
        thereon for such Distribution Date, plus any Monthly Interest Distributable
        Amount thereon remaining unpaid from any previous Distribution Date, except
        as
        provided below;

       

      (v) to
        the
        Holders of the Class B-1 Certificates, an amount equal to the Subordinate
        Principal Distribution Amount for such Class of Certificates for such
        Distribution Date, applied in reduction of the Certificate Principal Balance
        of
        the Class B-1 Certificates;

       

      (vi) to
        the
        Holders of the Class B-2 Certificates, the Monthly Interest Distributable
        Amount
        thereon for such Distribution Date, plus any Monthly Interest Distributable
        Amount thereon remaining unpaid from any previous Distribution Date, except
        as
        provided below;

       

      (vii) to
        the
        Holders of the Class B-2 Certificates, an amount equal to the Subordinate
        Principal Distribution Amount for such Class of Certificates for such
        Distribution Date, applied in reduction of the Certificate Principal Balance
        of
        the Class B-2 Certificates;

       

      (viii) to
        the
        Holders of the Class B-3 Certificates, the Monthly Interest Distributable
        Amount
        thereon for such Distribution Date, plus any Monthly Interest Distributable
        Amount thereon remaining unpaid from any previous Distribution Date, except
        as
        provided below;

       

      (ix) to
        the
        Holders of the Class B-3 Certificates, an amount equal to the Subordinate
        Principal Distribution Amount for such Class of Certificates for such
        Distribution Date, applied in reduction of the Certificate Principal Balance
        of
        the Class B-3 Certificates;

       

      (x) to
        the
        Holders of the Class B-4 Certificates, the Monthly Interest Distributable
        Amount
        thereon for such Distribution Date, plus any Monthly Interest Distributable
        Amount thereon remaining unpaid from any previous Distribution Date, except
        as
        provided below;

       

      (xi) to
        the
        Holders of the Class B-4 Certificates, an amount equal to the Subordinate
        Principal Distribution Amount for such Class of Certificates for such
        Distribution Date, applied in reduction of the Certificate Principal Balance
        of
        the Class B-4 Certificates;

       

      (xii) to
        the
        Holders of the Class B-5 Certificates, the Monthly Interest Distributable
        Amount
        thereon for such Distribution Date, plus any Monthly Interest Distributable
        Amount thereon remaining unpaid from any previous Distribution Date, except
        as
        provided below;

       

      (xiii) to
        the
        Holders of the Class B-5 Certificates, an amount equal to the Subordinate
        Principal Distribution Amount for such Class of Certificates for such
        Distribution Date, applied in reduction of the Certificate Principal Balance
        of
        the Class B-5 Certificates;

       

      (xiv) to
        the
        Holders of the Class B-6 Certificates, an amount equal to the Monthly Interest
        Distributable Amount thereon for such Distribution Date, plus any Monthly
        Interest Distributable Amount thereon remaining unpaid from any previous
        Distribution Date, except as provided below;

       

      (xv) to
        the
        Holders of the Class B-6 Certificates, an amount equal to the Subordinate
        Principal Distribution Amount for such Class of Certificates for such
        Distribution Date, applied in reduction of the Certificate Principal Balance
        of
        the Class B-6 Certificates;

       

      (xvi) to
        the
        Senior Certificates, in the priority set forth in Section 4.01(d) of this
        Agreement, the portion, if any, of the Available Distribution Amount remaining
        after the foregoing distributions, applied to reduce the Certificate Principal
        Balances of such Senior Certificates, but in no event more than the aggregate
        of
        the outstanding Certificate Principal Balances of each such Class of Senior
        Certificates, and thereafter, to each Class of Subordinate Certificates then
        outstanding beginning with such Class with the Highest Priority, any portion
        of
        the Available Distribution Amount remaining after the Senior Certificates
        have
        been retired, applied to reduce the Certificate Principal Balance of each
        such
        Class of Subordinate Certificates, but in no event more than the outstanding
        Certificate Principal Balance of each such Class of Subordinate Certificates;
        and

       

      (xvii) to
        the
        Class R-II Certificates, the balance, if any, of the Available Distribution
        Amount.

       

      Notwithstanding
        the foregoing, on any Distribution Date, with respect to the Class of
        Subordinate Certificates outstanding on such Distribution Date with the Lowest
        Priority, or in the event the Subordinate Certificates are no longer
        outstanding, the Senior Certificates, the Monthly Interest Distributable
        Amount
        thereon remaining unpaid from any previous Distribution Date will be
        distributable only to the extent that such unpaid Monthly Interest Distributable
        Amount was attributable to interest shortfalls relating to the failure of
        the
        Master Servicer to make any required Advance, or the determination by the
        Master
        Servicer that any proposed Advance would be a Nonrecoverable Advance with
        respect to the related Mortgage Loan where such Mortgage Loan has not yet
        been
        the subject of a Cash Liquidation or REO Disposition or the related Liquidation
        Proceeds, Insurance Proceeds and REO Proceeds have not yet been distributed
        to
        the Certificateholders.

       

      (d) The
        Senior Principal Distribution Amount and Accrual Distribution Amounts shall
        be
        distributed to the Senior Certificates (other than the Class A-5 Certificates)
        as follows:

       

      (i) an
        amount
        equal to the Class A-3 Accrual Distribution Amount shall be distributed to
        the
        Class A-1 Certificates and Class A-2 Certificates, concurrently on a pro
        rata
        basis, until the Certificate Principal Balances thereof have been reduced
        to
        zero;

       

      (ii)
        an
        amount equal to the Class A-8 Accrual Distribution Amount shall be distributed
        to the Class A-1, Class A-2, Class A-3, Class A-4, Class A-6 and Class A-7
        Certificates, in accordance with the priorities set forth below in clause
        (v)(B)
        below, in each case until the Certificate Principal Balance thereof has been
        reduced to zero;

       

      (iii)
        an
        amount equal to the Class A-9 Accrual Distribution Amount shall be distributed
        to the Class A-1, Class A-2, Class A-3, Class A-4, Class A-6, Class A-7 and
        Class A-8 Certificates, in accordance with the priorities set forth below
        in
        clauses (v)(B) and (v)(C) below, in each case until the Certificate Principal
        Balance thereof has been reduced to zero;

       

      (iv)
        the
        Senior Principal Distribution Amount shall be distributed to the Class R-I
        Certificates and Class R-II Certificates, concurrently on a pro rata basis,
        until the Certificate Principal Balances thereof have been reduced to
        zero;

       

      (v)
        the
        balance of the Senior Principal Distribution Amount remaining after the
        distributions, if any, described in clause (iv) above shall be distributed
        in
        the following manner and priority:

       

      (A)
        first,
        to the
        Class A-9 Certificates, in reduction of the Certificate Principal Balance
        thereof, until the Certificate Principal Balance thereof has been reduced
        to
        zero, in an amount equal to the sum of (a) the Lockout Scheduled Percentage
        of
        the aggregate of the collections described in clauses (A), (B) and (E) (to
        the
        extent clause (E) relates to clauses (A) and (B)) of the definition of Senior
        Principal Distribution Amount and (b) the Lockout Prepayment Percentage of
        the
        aggregate of the collections described in clauses (C) and (E) (to the extent
        clause (E) relates to clause (C)) of the definition of Senior Principal
        Distribution Amount;

       

      (B)
        second,
        concurrently as follows:

       

      (1)
        15.2656631489%
        of the
        Senior Principal Distribution Amount distributable under this clause (v)(B)
        in
        the following manner and priority:

       

      (a)
        first,
        to the
        Class A-1 Certificates and Class A-2 Certificates, concurrently on a pro
        rata
        basis, until the Certificate Principal Balances thereof have been reduced
        to
        zero; and 

       

      (b)
        second,
        to the
        Class A-3 Certificates, until the Certificate Principal Balance thereof has
        been
        reduced to zero; 

       

      (2)
        75.7933836835% of the Senior Principal Distribution Amount distributable
        under
        this clause (v)(B) to the Class A-4 Certificates and Class A-6 Certificates,
        in
        the following manner and priority:

       

      (a)
        first,
        to the
        Class A-4 Certificates, until the Certificate Principal Balance thereof has
        been
        reduced to the Planned Principal Balance for such Distribution
        Date;

       

      (b)
        second,
        to the
        Class A-6 Certificates, until the Certificate Principal Balance thereof has
        been
        reduced to zero; and

       

      (c)
        third,
        to the
        Class A-4 Certificates, without regard to the Planned Principal Balance for
        such
        Distribution Date, until the Certificate Principal Balance thereof has been
        reduced to zero; and

       

      (3)
        8.9409531675% of the Senior Principal Distribution Amount distributable under
        this clause (v)(B) to the Class A-7 Certificates, until the Certificate
        Principal Balance thereof has been reduced to zero;

       

      (C)
        third,
        to the
        Class A-8 Certificates, until the Certificate Principal Balance thereof has
        been
        reduced to zero; and

       

      (D)
        fourth,
        to the
        Class A-9 Certificates, until the Certificate Principal Balance thereof has
        been
        reduced to zero.

       

      (e) On
        or
        after the Credit Support Depletion Date but prior to the reduction of the
        Class
        A-2 Certificates to zero, all priorities relating to distributions as described
        in Section 4.01 (d) above in respect of principal among the various classes
        of
        Senior Certificates (other than the Class A-5 Certificates) will be disregarded,
        and, the Senior Principal Distribution Amount will be distributed to the
        remaining Senior Certificates (other than the Class A-5 Certificates), pro
        rata
        in accordance with their respective outstanding Certificate Principal Balances,
        and the Senior Interest Distribution Amount will be distributed as set forth
        in
        Section 4.01(c)(i); provided that the aggregate amount distributable to the
        Class A-1 Certificates and Class A-2 Certificates in respect of the aggregate
        Monthly Interest Distributable Amount thereon and in respect of their aggregate
        pro rata portion of the Senior Principal Distribution Amount will be distributed
        among those Classes of Certificates in the following priority: first, to
        the
        Class A-1 Certificates, up to an amount equal to the Monthly Interest
        Distributable Amount on the Class A-1 Certificates; second, to the Class
        A-1
        Certificates, up to an amount equal to the related Super Senior Optimal
        Principal Distribution Amount, in reduction of the Certificate Principal
        Balance
        thereof, until the Certificate Principal Balance thereof has been reduced
        to
        zero; third, to the Class A-2 Certificates, up to an amount equal to the
        Monthly
        Interest Distributable Amount thereon; and fourth, to the Class A-2
        Certificates, the remainder, until the Certificate Principal Balance thereof
        has
        been reduced to zero.

       

      (f) On
        or
        after the occurrence of the Credit Support Depletion Date and upon reduction
        of
        the Certificate Principal Balance of the Class A-2 Certificates to zero,
        all
        priorities relating to distributions as described in Section 4.01(d) above
        relating to principal among the Senior Certificates (other than the Class
        A-5
        Certificates) will be disregarded. Instead, the Senior Principal Distribution
        Amount will be distributed to the remaining Senior Certificates (other than
        the
        Class A-5 Certificates), pro rata in accordance with their respective
        outstanding Certificate Principal Balances and the Senior Interest Distribution
        Amount will be distributed as described in Section 4.01(c)(i).

       

      (g) After
        the
        reduction of the Certificate Principal Balances of the Senior Certificates
        to
        zero but prior to the Credit Support Depletion Date, the Senior Certificates
        will be entitled to no further distributions of principal thereon and the
        Available Distribution Amount will be paid solely to the holders of the Class
        B
        Certificates, as described herein.

       

      (h) In
        addition to the foregoing distributions, with respect to any Subsequent
        Recoveries, the Master Servicer shall deposit such amounts into the Collection
        Account pursuant to Section 3.10(a). If, after taking into account such
        Subsequent Recoveries, the amount of a Realized Loss is reduced, the amount
        of
        such Subsequent Recoveries will be applied to increase the Certificate Principal
        Balance of the Class of Class B Certificates with the Highest Priority to
        which
        Realized Losses have been allocated, but not by more than the amount of Realized
        Losses previously allocated to that Class of Class B Certificates pursuant
        to
        Section 4.04. The amount of any remaining Subsequent Recoveries will be applied
        to increase the Certificate Principal Balance of the Class of Class B
        Certificates with the next Highest Priority, up to the amount of such Realized
        Losses previously allocated to that Class of Class B Certificates pursuant
        to
        Section 4.04, and so on. Subsequent Recoveries will be applied to increase,
        from
        zero, the Certificate Principal Balance of a Class of Class B Certificates
        pursuant to the previous sentence if the Certificate Principal Balance of
        such
        Class was reduced to zero due to the application of Realized Losses. Holders
        of
        such Certificates will not be entitled to any payment in respect of Monthly
        Interest Distributable Amount on the amount of such increases for any Interest
        Accrual Period preceding the Distribution Date on which such increase occurs.
        Any such increases shall be applied to the Certificate Principal Balance
        of each
        Certificate of such Class in accordance with its respective Percentage
        Interest.

       

      (i) Each
        distribution with respect to a Book-Entry Certificate shall be paid to the
        Depository, as Holder thereof, and the Depository shall be responsible for
        crediting the amount of such distribution to the accounts of its Depository
        Participants in accordance with its normal procedures. Each Depository
        Participant shall be responsible for disbursing such distribution to the
        Certificate Owners that it represents and to each indirect participating
        brokerage firm (a “brokerage firm” or “indirect participating firm”) for which
        it acts as agent. Each brokerage firm shall be responsible for disbursing
        funds
        to the Certificate Owners that it represents. None of the Trustee, the Depositor
        or the Master Servicer shall have any responsibility therefor except as
        otherwise provided by this Agreement or applicable law.

       

      (j) On
        each
        Distribution Date prior to the Class A-3 Accretion Termination Date, an amount
        equal to the Monthly Interest Distributable Amount that would otherwise be
        distributed on the Class A-3 Certificates shall be added to Certificate
        Principal Balance of the Class A-3 Certificates. On or after the related
        Accretion Termination Date, the entire amount of Monthly Interest Distributable
        Amount on the Class A-3 Certificates for such Distribution Date shall be
        payable
        to the Class A-3 Certificateholders pursuant to Section 4.01(c)(i) of this
        Agreement to the extent not required to reduce the aggregate Certificate
        Principal Balance of the Class A-1 Certificates and Class A-2 Certificates
        to
        zero on such Class A-3 Accretion Termination Date; provided that if the Class
        A-3 Accretion Termination Date is the Credit Support Depletion Date, the
        entire
        amount of Monthly Interest Distributable Amount on the Class A-3 Certificates
        for such Distribution Date will be paid to the Class A-3 Certificateholders.
        Any
        such Monthly Interest Distributable Amount on the Class A-3 Certificates
        which
        is required to be paid to the holders of the Class A-1 Certificates and Class
        A-2 Certificates on such Class A-3 Accretion Termination Date will be added
        to
        the Certificate Principal Balance of the Class A-3 Certificates in the manner
        described in the first sentence of this Section 4.01(j).

       

      (k) On
        each
        Distribution Date prior to the Class A-8 Accretion Termination Date, an amount
        equal to the Monthly Interest Distributable Amount that would otherwise be
        distributed on the Class A-8 Certificates shall be added to Certificate
        Principal Balance of the Class A-8 Certificates. On or after the related
        Accretion Termination Date, the entire amount of Monthly Interest Distributable
        Amount on the Class A-8 Certificates for such Distribution Date shall be
        payable
        to the Class A-8 Certificateholders pursuant to Section 4.01(c)(i) of this
        Agreement to the extent not required to reduce the aggregate Certificate
        Principal Balance of the Class A-1, Class A-2, Class A-3, Class A-4, Class
        A-6
        and Class A-7 Certificates to zero on such Class A-8 Accretion Termination
        Date;
        provided that if the Class A-8 Accretion Termination Date is the Credit Support
        Depletion Date, the entire amount of Monthly Interest Distributable Amount
        on
        the Class A-8 Certificates for such Distribution Date will be paid to the
        Class
        A-8 Certificateholders. Any such Monthly Interest Distributable Amount on
        the
        Class A-8 Certificates which is required to be paid to the holders of the
        Class
        A-1, Class A-2, Class A-3, Class A-4, Class A-6 and Class A-7 Certificates
        on
        such Class A-8 Accretion Termination Date will be added to the Certificate
        Principal Balance of the Class A-8 Certificates in the manner described in
        the
        first sentence of this Section 4.01(k).

       

      (l) On
        each
        Distribution Date prior to the Class A-9 Accretion Termination Date, an amount
        equal to the Monthly Interest Distributable Amount that would otherwise be
        distributed on the Class A-9 Certificates shall be added to Certificate
        Principal Balance of the Class A-9 Certificates. On or after the related
        Accretion Termination Date, the entire amount of Monthly Interest Distributable
        Amount on the Class A-9 Certificates for such Distribution Date shall be
        payable
        to the Class A-9 Certificateholders pursuant to Section 4.01(c)(i) of this
        Agreement to the extent not required to reduce the aggregate Certificate
        Principal Balance of the Class A-1, Class A-2, Class A-3, Class A-4, Class
        A-6,
        Class A-7 and Class A-8 Certificates to zero on such Class A-9 Accretion
        Termination Date; provided that if the Class A-9 Accretion Termination Date
        is
        the Credit Support Depletion Date or the Distribution Date occurring in December
        2011, the entire amount of Monthly Interest Distributable Amount on the Class
        A-9 Certificates for such Distribution Date will be paid to the Class A-9
        Certificateholders. Any such Monthly Interest Distributable Amount on the
        Class
        A-9 Certificates which is required to be paid to the holders of the Class
        A-1,
        Class A-2, Class A-3, Class A-4, Class A-6, Class A-7 and Class A-8 Certificates
        on such Class A-9 Accretion Termination Date will be added to the Certificate
        Principal Balance of the Class A-9 Certificates in the manner described in
        the
        first sentence of this Section 4.01(l).

       

      (m) Except
        as
        otherwise provided in Section 10.01, if the Master Servicer anticipates that
        a
        final distribution with respect to any Class of Certificates will be made
        on the
        next Distribution Date, the Master Servicer shall, no later than the
        Determination Date in the month of such final distribution, notify the Trustee
        and the Trustee shall, no later than two (2) Business Days after such
        Determination Date, mail on such date to each Holder of such Class of
        Certificates a notice to the effect that: (i) the Trustee anticipates that
        the
        final distribution with respect to such Class of Certificates will be made
        on
        such Distribution Date but only upon presentation and surrender of such
        Certificates at the office of the Trustee or as otherwise specified therein,
        and
        (ii) no interest shall accrue on such Certificates from and after the end
        of the
        prior calendar month.

       

      Any
        funds
        not distributed to any Holder or Holders of Certificates of such Class on
        such
        Distribution Date because of the failure of such Holder or Holders to tender
        their Certificates shall, on such date, be set aside and held in trust and
        credited to the account of the appropriate non-tendering Holder or Holders.
        If
        any Certificates as to which notice has been given pursuant to this Section
        4.01(m) shall not have been surrendered for cancellation within six months
        after
        the time specified in such notice, the Trustee shall mail a second notice
        to the
        remaining non-tendering Certificateholders to surrender their Certificates
        for
        cancellation in order to receive the final distribution with respect thereto.
        If
        within six months after the second notice all such Certificates shall not
        have
        been surrendered for cancellation, the Trustee shall take reasonable steps
        as
        directed by the Depositor, or appoint an agent to take reasonable steps,
        to
        contact the remaining non-tendering Certificateholders concerning surrender
        of
        their Certificates. The costs and expenses of maintaining the fiends in trust
        and of contacting such Certificateholders shall be paid out of the assets
        remaining in the Trust Fund. If within nine months after the second notice
        any
        such Certificates shall not have been surrendered for cancellation, the Class
        R
        Certificateholders shall be entitled to all unclaimed funds and other assets
        which remain subject hereto. No interest shall accrue or be payable to any
        Certificateholder on any amount held in trust as a result of such
        Certificateholder’s failure to surrender its Certificate(s) for final payment
        thereof in accordance with this Section 4.01(m).

       

      (n) Distributions
        of interest shall be deemed to be made to each REMIC I Regular Interest in
        an
        amount equal to the related Uncertificated Monthly Interest Distributable
        Amount. Distributions of principal shall be deemed to be made to each of
        the
        REMIC I Regular Interests in the same manner and priority as principal payments
        are made to Corresponding Certificated Interests.

       

      Section
        4.02 Statements
        to Certificateholders.

       

      On
        each
        Distribution Date the Trustee shall make available to each Holder of a
        Certificate and to the Depositor, the Master Servicer and the Rating Agency,
        a
        statement based on information contained in the Remittance Report:

       

      (i) the
        amount of the distribution made on such Distribution Date to the Holders
        of each
        Class of Certificates, separately identified, allocable to
        principal;

       

      (ii) the
        amount of the distribution made on such Distribution Date to the Holders
        of each
        Class of Certificates allocable to interest, separately identified;

       

      (iii) the
        aggregate amount of servicing compensation received by the Master Servicer
        during the related Due Period and such other customary information as the
        Trustee deems necessary or desirable, or which a Certificateholder reasonably
        requests, to enable Certificateholders to prepare their tax
        returns;

       

      (iv) the
        aggregate amount of Advances for the related Due Period (including the general
        purpose of such Advances), the aggregate amount of unreimbursed Advances
        at the
        close of business on the Distribution Date, and the general source of funds
        for
        reimbursements;

       

      (v) the
        aggregate Stated Principal Balance of the Mortgage Loans at the close of
        business at the end of the related Due Period;

       

      (vi) the
        number, average balance, weighted average remaining term to maturity and
        weighted average Loan Rate of the Mortgage Loans as of the related Due
        Date;

       

      (vii) the
        number and Stated Principal Balance of the Mortgage Loans in respect of which
        (A) one Monthly Payment is Delinquent, (B) two Monthly Payments are Delinquent,
        (C) three or more Monthly Payments are Delinquent and (D) foreclosure
        proceedings have been commenced, in each case as of the close of business
        on the
        last day of the calendar month preceding such Distribution Date;

       

      (viii) with
        respect to any Mortgage Loan that became an REO Property during the preceding
        calendar month, the unpaid principal balance and the Stated Principal Balance
        of
        such Mortgage Loan as of the date it became an REO Property;

       

      (ix) the
        book
        value of any REO Property as of the close of business on the last Business
        Day
        of the calendar month preceding the Distribution Date, and, cumulatively,
        the
        total number and cumulative principal balance of all REO Properties as of
        the
        close of business of the last day of the preceding due period;

       

      (x) the
        aggregate amount of Principal Prepayments made during the related Prepayment
        Period;

       

      (xi) the
        aggregate amount of Realized Losses incurred during the related Due Period
        and
        the cumulative amount of Realized Losses;

       

      (xii) the
        aggregate amount of Extraordinary Trust Fund Expenses withdrawn from the
        Collection Account for such Distribution Date;

       

      (xiii) the
        Certificate Principal Balance or Notional Amount, as the case may be, of
        each
        Class of Certificates, after giving effect to the distributions made on such
        Distribution Date;

       

      (xiv) the
        Pass-Through Rate for each Class of Certificates and the aggregate amount
        of
        interest accrued at the related Pass-Through Rate with respect to each Class
        during the related Interest Accrual Period and the respective portions thereof,
        if any, remaining unpaid following the distributions made in respect of such
        Certificates on such Distribution Date;

       

      (xv) the
        aggregate amount of any Prepayment Interest Shortfalls for such Distribution
        Date, to the extent not covered by payments of Compensating Interest by the
        Master Servicer pursuant to Section 3.24;

       

      (xvi) the
        Available Distribution Amount;

       

      (xvii) the
        aggregate Stated Principal Balance of Mortgage Loans purchased by the Master
        Servicer during the related Due Period and indicating the Section of this
        Agreement requiring or allowing the purchase of each such Mortgage
        Loan;

       

      (xviii) the
        applicable Record Dates, Interest Accrual Periods and Determination Date
        for
        calculating distributions and general Distribution Dates;

       

      (xix) the
        Servicing Fee paid to or retained by the Master Servicer and the Trustee
        Fee
        paid to the Trustee, in each case for the related Due Period;

       

      (xx) the
        total
        cash flows received and the general sources thereof;

       

      (xxi) the
        cumulative amount of Realized Losses applied to the Certificates to
        date;

       

      (xxii) if
        applicable, material modifications, extensions or waivers to Mortgage Loan
        terms, fees, penalties or payments during the preceding calendar month or
        that
        have become material over time; and

       

      (xxiii) information
        about any additions of, substitutions for or removal of any Mortgage Loans
        from
        the Trust Fund, and any changes in the underwriting, acquisition or selection
        criteria as to any Mortgage Loans added to the Trust Fund.

       

      The
        Trustee will make the monthly statements described above (and, at its option,
        any additional files containing the same information in an alternative format)
        available on each Distribution Date to Certificateholders, and other parties
        to
        the Pooling and Servicing Agreement via the Trustee’s internet website and its
        fax-on-demand service. The Trustee’s internet website shall initially be located
        at “www.sf.citidirect.com”. Assistance in using the website can be obtained by
        calling the Trustee’s customer service desk at (212) 816-5681. Parties that are
        unable to use the above distribution options are entitled to have a paper
        copy
        mailed to them via first class mail by calling the customer service desk
        and
        indicating such. The Trustee shall have the right to change the way monthly
        statements are distributed in order to make such distribution more convenient
        and/or more accessible to the above parties and the Trustee shall provide
        timely
        and adequate notification to all above parties regarding any such
        changes.

       

      On
        each
        Distribution Date, the Trustee shall provide Bloomberg Financial Markets,
        L.P.
        (“Bloomberg”) CUSIP level information for each Class of Certificates as of such
        Distribution Date, using a format and media mutually acceptable to the Trustee
        and Bloomberg.

       

      In
        addition, the Trustee will make available, as a convenience for interested
        parties (and not in furtherance of the distribution of any related prospectus
        or
        prospectus supplement under the securities laws), this Agreement, the related
        prospectus and prospectus supplement via the Trustee’s internet
        website.

       

      The
        Trustee will make no representations or warranties as to the accuracy of
        completeness of such documents and will assume no responsibility
        therefor.

       

      In
        connection with providing access to the Trustee’s website, the Trustee may
        require registration and the acceptance of a disclaimer. The Trustee shall
        not
        be liable for the dissemination of information in accordance with this Agreement
        which is not due to an error on the part of the Trustee with respect to such
        information.

       

      In
        the
        case of information furnished pursuant to subclauses (i)-(iii) above, the
        amounts shall also be expressed as a dollar amount per Single
        Certificate.

       

      The
        Trustee shall provide to each Certificateholder any written reports or other
        information required by the Code and regulations thereunder as from time
        to time
        are in force. In addition, upon written request, within a reasonable period
        of
        time after the end of each calendar year, the Trustee shall prepare and forward,
        to each Person who at any time during the calendar year was a Certificateholder,
        a statement containing the information set forth in subclauses (i) - (iii)
        above, aggregated for such calendar year or applicable portion thereof during
        which such person was a Certificateholder.

       

      Section
        4.03 Remittance
        Reports; Advances by the Master Servicer.

       

      (a) On
        the
        second Business Day following each Determination Date but in no event less
        than
        five Business Days prior to the related Distribution Date, the Master Servicer
        shall deliver to the Trustee by telecopy (or by such other means as the Master
        Servicer and the Trustee may agree from time to time) a Remittance Report,
        and
        other data mutually agreed upon, with respect to the related Distribution
        Date.
        On the same date, the Master Servicer shall make available to the Trustee
        a
        computer readable magnetic tape or diskette or in such other medium as may
        be
        agreed between the Master Servicer and the Trustee containing the information
        set forth in such Remittance Report with respect to the related Distribution
        Date. The Master Servicer shall deliver or cause to be delivered to the Trustee
        in addition to the information provided on the Remittance Report, such other
        information reasonably available to it with respect to the Mortgage Loans
        as the
        Trustee may reasonably require to perform the calculations necessary to make
        the
        distributions contemplated by Section 4.01 and 4.06 and to prepare the
        statements to Certificateholders contemplated by Section 4.02. The Master
        Servicer shall make a good faith effort to deliver any such additional
        information to the Trustee within two Business Days of any such request,
        provided that in no event shall the Master Servicer be required to provide
        any
        such additional information to the Trustee to the extent the Trustee makes
        such
        request prior to five Business Days prior to the Master Servicer Remittance
        Date. The Trustee shall not be responsible to recompute, recalculate or verify
        any information provided to it by the Master Servicer.

       

      (b) The
        amount of Advances to be made by the Master Servicer for any Distribution
        Date
        shall equal the sum of (i) the aggregate amount of Monthly Payments (net
        of the
        related Servicing Fee), due during the related Due Period in respect of the
        Mortgage Loans, which Monthly Payments were delinquent on a contractual basis
        as
        of the close of business on the related Determination Date and (ii) with
        respect
        to each REO Property, which REO Property was acquired during or prior to
        the
        related Due Period and as to which REO Property an REO Disposition did not
        occur
        during the related Due Period, an amount equal to the excess, if any, of
        the REO
        Imputed Interest on such REO Property for the most recently ended calendar
        month, over the net income from such REO Property transferred to the
        Distribution Account pursuant to Section 4.01 for distribution on such
        Distribution Date, less amounts held for future distributions.

       

      Before
        the close of business New York time on the Master Servicer Remittance Date,
        the
        Master Servicer shall remit in immediately available funds to the Trustee
        for
        deposit in the Distribution Account an amount equal to the aggregate amount
        of
        Advances, if any, to be made in respect of the Mortgage Loans and REO Properties
        for the related Distribution Date either (i) from its own funds or (ii) from
        the
        Collection Account, to the extent of funds held therein for future distribution
        (in which case it will cause to be made an appropriate entry in the records
        of
        Collection Account that amounts held for future distribution have been, as
        permitted by this Section 4.03, used by the Master Servicer in discharge
        of any
        such Advance) or (iii) in the form of any combination of (i) and (ii)
        aggregating the total amount of Advances to be made by the Master Servicer
        with
        respect to the Mortgage Loans and REO Properties. Any amounts held for future
        distribution and so used shall be appropriately reflected in the Master
        Servicer’s records and replaced by the Master Servicer by deposit in the
        Collection Account on or before any future Master Servicer Remittance Date
        to
        the extent that the Available Distribution Amount for the related Distribution
        Date (determined without regard to Advances to be made on the Master Servicer
        Remittance Date) shall be less than the total amount that would be distributed
        to the Classes of Certificateholders pursuant to Section 4.01 on such
        Distribution Date if such amounts held for future distributions had not been
        so
        used to make Advances. The Trustee will provide notice to the Master Servicer
        by
        telecopy on any Master Servicer Remittance Date or within one Business Day
        in
        the event that the amount remitted by the Master Servicer to the Trustee
        on such
        date is less than the Advances required to be made by the Master Servicer
        for
        the related Distribution Date, less amounts held for future distributions,
        as
        set forth in the related Remittance Report.

       

      (c) The
        obligation of the Master Servicer to make such Advances is mandatory,
        notwithstanding any other provision of this Agreement but subject to (d)
        below,
        and, with respect to any Mortgage Loan, shall continue until the Mortgage
        Loan
        is paid in full or until the recovery of all Liquidation Proceeds thereon;
        provided, however, that such obligation will cease if title to the Mortgaged
        Property is acquired by the Trust Fund in foreclosure or by deed in lieu
        of
        foreclosure.

       

      (d) Notwithstanding
        anything herein to the contrary, no Advance shall be required to be made
        hereunder by the Master Servicer if such Advance would, if made, constitute
        a
        Nonrecoverable Advance. The determination by the Master Servicer that it
        has
        made a Nonrecoverable Advance or that any proposed Advance, if made, would
        constitute a Nonrecoverable Advance, shall be evidenced by an Officers’
Certificate of the Master Servicer delivered to the Depositor and the
        Trustee.

       

      Section
        4.04 Allocation
        of Realized Losses.

       

      Prior
        to
        each Distribution Date, the Master Servicer shall determine the total amount
        of
        Realized Losses, if any, that resulted from any Cash Liquidation, Debt Service
        Reduction, Deficient Valuation or REO Disposition that occurred during the
        related Prepayment Period. The amount of each Realized Loss shall be evidenced
        by an Officers’ Certificate. All Realized Losses, other than Excess Special
        Hazard Losses, Extraordinary Losses, Excess Bankruptcy Losses or Excess Fraud
        Losses, shall be allocated as follows: first, to the Class B-6 Certificates
        until the Certificate Principal Balance thereof has been reduced to zero;
        second, to the Class B-5 Certificates until the Certificate Principal Balance
        thereof has been reduced to zero; third, to the Class B-4 Certificates until
        the
        Certificate Principal Balance thereof has been reduced to zero; fourth, to
        the
        Class B-3 Certificates until the Certificate Principal Balance thereof has
        been
        reduced to zero; fifth, to the Class B-2 Certificates until the Certificate
        Principal Balance thereof has been reduced to zero; sixth, to the Class B-1
        Certificates until the Certificate Principal Balance thereof has been reduced
        to
        zero; and thereafter such Realized Losses will be allocated among all the
        Senior
        Certificates on a pro rata basis, as described below, provided that any of
        such
        Realized Losses allocable to the Class A-2 Certificates will be allocated
        to the
        Class A-1 Certificates, until the Certificate Principal Balance thereof has
        been
        reduced to zero. Any Excess Special Hazard Losses, Excess Bankruptcy Losses,
        Excess Fraud Losses, Extraordinary Losses on the Mortgage Loans will be
        allocated among the Senior Certificates and Subordinate Certificates, on
        a pro
        rata basis, as described below.

       

      As
        used
        herein, an allocation of a Realized Loss on a “pro rata basis” among two or more
        specified Classes of Certificates means an allocation on a pro rata basis,
        among
        the various Classes so specified, to each such Class of Certificates on the
        basis of their then outstanding Certificate Principal Balances prior to giving
        effect to distributions to be made on such Distribution Date in the case
        of the
        principal portion of a Realized Loss or based on the Monthly Interest
        Distributable Amount thereon payable on such Distribution Date (without regard
        to any Compensating Interest for such Distribution Date) in the case of an
        interest portion of a Realized Loss. Any allocation of the principal portion
        of
        Realized Losses (other than Debt Service Reductions) to the Class B Certificates
        then outstanding with the highest numerical designation shall be made by
        operation of the definition of “Certificate Principal Balance” and by operation
        of the provisions of Section 4.01. Allocations of the interest portions of
        Realized Losses shall be made by operation of the definition of “Monthly
        Interest Distributable Amount” and by operation of the provisions of Section
        4.01. Allocations of the principal portion of Debt Service Reductions shall
        be
        made by operation of the provisions of Section 4.01. All Realized Losses
        and all
        other losses allocated to a Class of Certificates hereunder will be allocated
        among the Certificates of such Class in proportion to the Percentage Interests
        evidenced thereby. Realized Losses allocated to the Regular Certificates
        shall
        be deemed allocated to the REMIC I Regular Interests in the same amount and
        priority allocated to Corresponding Certificated Interests. 

       

      Section
        4.05 Information
        Reports to Be Filed by the Master Servicer.

       

      The
        Master Servicer or the Sub-Servicers shall file information reports with
        respect
        to the receipt of mortgage interest received in a trade or business,
        foreclosures and abandonments of any Mortgaged Property and the information
        returns relating to cancellation of indebtedness income with respect to any
        Mortgaged Property required by Sections 6050H, 6050J and 6050P of the Code,
        respectively, and deliver to the Trustee an Officers’ Certificate stating that
        such reports have been filed. Such reports shall be in form and substance
        sufficient to meet the reporting requirements imposed by such Sections 6050H,
        6050J and 6050P of the Code.

       

      Section
        4.06 Compliance
        with Withholding Requirements.

       

      Notwithstanding
        any other provision of this Agreement, the Trustee shall comply with all
        federal
        withholding requirements respecting payments to Certificateholders of interest
        or original issue discount on the Mortgage Loans, that the Trustee reasonably
        believes are applicable under the Code. The consent of Certificateholders
        shall
        not be required for such withholding. In the event the Trustee withholds
        any
        amount from interest or original issue discount payments or advances thereof
        to
        any Certificateholder pursuant to federal withholding requirements, the Trustee
        shall, together with its monthly report to such Certificateholders pursuant
        to
        Section 4.03 hereof, indicate such amount withheld.

       

      Section
        4.07 [Reserved].

       

      Section
        4.08 Limited
        Purpose Surety Bond.

       

      If
        a
        Required Surety Payment is payable pursuant to the Limited Purpose Surety
        Bond
        with respect to any Pledged Asset Loans, as determined by the Master Servicer
        and the Pledged Asset Servicer, the Master Servicer shall so notify the Trustee
        as soon as reasonably practicable and the Trustee shall promptly complete
        the
        notice in the form of Attachment 1 to the Limited Purpose Surety Bond and
        shall
        promptly submit such notice to the surety as a claim for a Required Surety
        Payment. The Master Servicer shall upon request assist the Trustee in completing
        such notice and shall provide any information requested by the Trustee in
        connection therewith.

       

      Upon
        receipt of a Required Surety Payment from the surety on behalf of the
        Certificateholders, the Trustee shall deposit such Required Surety Payment
        in
        the Distribution Account and shall distribute such Required Surety Payment,
        or
        the proceeds thereof, in accordance with the provisions of Section
        4.01.

       

      The
        Trustee shall (i) receive as attorney-in-fact of each Holder of a Certificate
        any Required Surety Payment from the surety and (ii) disburse the same to
        the
        Holders of such Certificates as set forth in Section 4.01.

       

      

      ARTICLE
        V

      THE
        CERTIFICATES

       

      Section
        5.01 The
        Certificates.

       

      Each
        of
        the Class A, Class B and Class R Certificates shall be substantially in the
        forms annexed hereto as exhibits, and shall, on original issue, be executed,
        authenticated and delivered by the Trustee to or upon the receipt of a Written
        Order to Authenticate from the Depositor concurrently with the sale and
        assignment to the Trustee of the Trust Fund. Each Class of the Certificates
        (other than the Class R Certificates) shall be initially evidenced by one
        or
        more Certificates representing a Percentage Interest with a minimum dollar
        denomination of $25,000 and integral dollar multiples of $1 in excess thereof.
        Each Class of Residual Certificates will be issued in registered, certificated
        form in minimum denominations of a 20% Percentage Interest except in the
        case of
        one of each of the Class R-I Certificates and Class R-II Certificates. Provided
        however, that one Certificate of each such Class of Certificates may be in
        a
        different denomination so that the sum of the denominations of all outstanding
        Certificates of such Class shall equal the Certificate Principal Balance
        or
        Notional Amount of such Class on the Closing Date.

       

      The
        Certificates shall be executed on behalf of the Trust by manual or facsimile
        signature on behalf of the Trustee by a Responsible Officer. Certificates
        bearing the manual or facsimile signatures of individuals who were, at the
        time
        when such signatures were affixed, authorized to sign on behalf of the Trustee
        shall bind the Trust, notwithstanding that such individuals or any of them
        have
        ceased to be so authorized prior to the authentication and delivery of such
        Certificates or did not hold such offices at the date of such Certificate.
        No
        Certificate shall be entitled to any benefit under this Agreement or be valid
        for any purpose, unless such Certificate shall have been manually authenticated
        by the Trustee substantially in the form provided for herein, and such
        authentication upon any Certificate shall be conclusive evidence, and the
        only
        evidence, that such Certificate has been duly authenticated and delivered
        hereunder. All Certificates shall be dated the date of their authentication.
        Subject to Section 5.02(c), the Certificates, other than the Class R, Class
        B-4,
        Class B-5 and Class B-6 Certificates, shall be Book-Entry
        Certificates.

       

      Section
        5.02 Registration
        of Transfer and Exchange of Certificates.

       

      (a) The
        Certificate Registrar shall cause to be kept at the Corporate Trust Office
        a
        Certificate Register in which, subject to such reasonable regulations as
        it may
        prescribe, the Certificate Registrar shall provide for the registration of
        Certificates and of transfers and exchanges of Certificates as herein provided.
        The Trustee shall initially serve as Certificate Registrar for the purpose
        of
        registering Certificates and transfers and exchanges of Certificates as herein
        provided.

       

      Upon
        surrender for registration of transfer of any Certificate at any office or
        agency of the Certificate Registrar maintained for such purpose pursuant
        to the
        foregoing paragraph and, in the case of a Class R Certificate, upon satisfaction
        of the conditions set forth below, the Trustee on behalf of the Trust shall
        execute, authenticate and deliver, in the name of the designated transferee
        or
        transferees, one or more new Certificates of the same aggregate Percentage
        Interest.

       

      At
        the
        option of the Certificateholders, Certificates may be exchanged for other
        Certificates in authorized denominations and the same aggregate Percentage
        Interests, upon surrender of the Certificates to be exchanged at any such
        office
        or agency. Whenever any Certificates are so surrendered for exchange, the
        Trustee shall execute on behalf of the Trust and authenticate and deliver
        the
        Certificates which the Certificateholder making the exchange is entitled
        to
        receive. Every Certificate presented or surrendered for registration of transfer
        or exchange shall (if so required by the Trustee or the Certificate Registrar)
        be duly endorsed by, or be accompanied by a written instrument of transfer
        satisfactory to the Trustee and the Certificate Registrar duly executed by,
        the
        Holder thereof or his attorney duly authorized in writing.

       

      (b) Except
        as
        provided in paragraphs (c) and (d) below, the Book-Entry Certificates shall
        at
        all times remain registered in the name of the Depository or its nominee
        and at
        all times: (i) registration of such Certificates may not be transferred by
        the
        Trustee except to another Depository; (ii) the Depository shall maintain
        book-entry records with respect to the Certificate Owners and with respect
        to
        ownership and transfers of such Certificates; (iii) ownership and transfers
        of
        registration of such Certificates on the books of the Depository shall be
        governed by applicable rules established by the Depository; (iv) the Depository
        may collect its usual and customary fees, charges and expenses from its
        Depository Participants; (v) the Trustee shall for all purposes deal with
        the
        Depository as representative of the Certificate Owners of the Certificates
        for
        purposes of exercising the rights of Holders under this Agreement, and requests
        and directions for and votes of such representative shall not be deemed to
        be
        inconsistent if they are made with respect to different Certificate Owners;
        (vi)
        the Trustee may rely and shall be fully protected in relying upon information
        furnished by the Depository with respect to its Depository Participants and
        furnished by the Depository Participants with respect to indirect participating
        firms and Persons shown on the books of such indirect participating firms
        as
        direct or indirect Certificate Owners; and (vii) the direct participants
        of the
        Depository shall have no rights under this Agreement under or with respect
        to
        any of the Certificates held on their behalf by the Depository, and the
        Depository may be treated by the Trustee and its agents, employees, officers
        and
        directors as the absolute owner of the Certificates for all purposes
        whatsoever.

       

      All
        transfers by Certificate Owners of Book-Entry Certificates shall be made
        in
        accordance with the procedures established by the Depository Participant
        or
        brokerage firm representing such Certificate Owners. Each Depository Participant
        shall only transfer Book-Entry Certificates of Certificate Owners that it
        represents or of brokerage firms for which it acts as agent in accordance
        with
        the Depository’s normal procedures. The parties hereto are hereby authorized to
        execute Letters of Representations with the Depository or take such other
        action
        as may be necessary or desirable to register a Book-Entry Certificate to
        the
        Depository. In the event of any conflict between the terms of any such Letter
        of
        Representation and this Agreement, the terms of this Agreement shall
        control.

       

      (c) If
        (i)(x)
        the Depository or the Depositor advises the Trustee in writing that the
        Depository is no longer willing or able to discharge properly its
        responsibilities as Depository and (y) the Trustee or the Depositor is unable
        to
        locate a qualified successor, (ii) the Depositor, at its sole option, with
        the
        consent of the Depository Participants and the Trustee, elects to terminate
        the
        book-entry system through the Depository (with respect to some or all of
        the
        Book-Entry Certificates) or (iii) after the occurrence of a Master Servicer
        Event of Termination, the Certificate Owners of each Class of Book-Entry
        Certificates representing Percentage Interests of such Classes aggregating
        not
        less than 51% advises the Trustee and the Depository Participants in writing
        that the continuation of a book-entry system through the Depository to the
        exclusion of definitive, fully registered certificates (the “Definitive
        Certificates”) to Certificate Owners is no longer in the best interests of the
        Certificate Owners. Upon surrender to the Certificate Registrar of the
        Book-Entry Certificates by the Depository, accompanied by registration
        instructions from the Depository for registration, the Trustee shall, at
        the
        Depositor’s expense, in the case of (ii) above, or the related Seller’s expense,
        in the case of (i) and (iii) above, execute on behalf of the Trust and
        authenticate the Definitive Certificates.

       

      In
        addition, if a Master Servicer Event of Termination has occurred and is
        continuing, each Certificate Owner materially adversely affected thereby
        may at
        its option request a Definitive Certificate evidencing such Certificate Owner’s
        Percentage Interest in the related Class of Certificates. In order to make
        such
        request, such Certificate Owner shall, subject to the rules and procedures
        of
        the Depository, provide the Depository or the related Depository Participant
        with directions for the Trustee to exchange or cause the exchange of the
        Certificate Owner’s interest in such Class of Certificates for an equivalent
        Percentage Interest in fully registered definitive form. Upon receipt by
        the
        Trustee of instruction from the Depository directing the Trustee to effect
        such
        exchange (such instructions to contain information regarding the Class of
        Certificates and the Certificate Principal Balance being exchanged, the
        Depository Participant account to be debited with the decrease, the registered
        holder of and delivery instructions for the Definitive Certificates and any
        other information reasonable required by the Trustee), (i) the Trustee shall
        instruct the Depository to reduce the related Depository Participant’s account
        by the aggregate Certificate Principal Balance of the Definitive Certificates,
        (ii) the Trustee shall execute, authenticate and deliver, in accordance with
        the
        registration and delivery instructions provided by the Depository, a Definitive
        Certificate evidencing such Certificate Owner’s Percentage Interest in such
        Class of Certificates and (iii) the Trustee shall execute and authenticate
        a new
        Book-Entry Certificate reflecting the reduction in the aggregate Certificate
        Principal Balance of such Class of Certificates by the amount of the Definitive
        Certificates.

       

      Neither
        the Depositor nor the Trustee shall be liable for any delay in delivery of
        any
        instruction required under this section and may conclusively rely on, and
        shall
        be protected in relying on, such instructions. Upon the issuance of Definitive
        Certificates, the Trustee, the Certificate Registrar, the Master Servicer,
        any
        Paying Agent and the Depositor shall recognize the Holders of the Definitive
        Certificates as Certificateholders hereunder.

       

      (d) No
        transfer, sale, pledge or other disposition of any Private Certificate shall
        be
        made unless such disposition is exempt from the registration requirements
        of the
        Securities Act of 1933, as amended (the “1933 Act”), and any applicable state
        securities laws or is made in accordance with the 1933 Act and
        laws.

       

      (i) In
        the
        event of any such transfer, (A) if such transfer is made in reliance upon
        Rule
        144A under the 1933 Act, the Trustee shall require the transferor to execute
        a
        transferor certificate in substantially the form attached hereto as Exhibit
        F-2
        and the transferee to execute an investment letter in substantially the form
        attached hereto as Exhibit F-1, or (B) (1) (x) if such transfer is made to
        an
        institutional “accredited investor” within the meaning of within the meaning of
        Rule 501(a) promulgated pursuant to the 1933 Act (in the case of a Class
        A-3,
        Class A-8, Class A-9, Class B-4 or Class B-5 Certificate) or (y) if such
        transfer is made to an “accredited investor” within the meaning of Rule 501(a)
        promulgated pursuant to the 1933 Act (in the case of a Class B-6 Certificate),
        the Trustee shall require the transferor to execute a transferor certificate
        (in
        substantially the form attached hereto as Exhibit F-2) and the transferee
        to
        execute an investment letter (in substantially the form attached hereto as
        Exhibit F-3) acceptable to and in form and substance reasonably satisfactory
        to
        the Depositor and the Trustee certifying to the Depositor and the Trustee
        the
        facts surrounding such transfer, which investment letter shall not be an
        expense
        of the Trustee or the Depositor and (2) the Trustee and the Depositor shall
        require a written Opinion of Counsel (which may be in-house counsel) acceptable
        to and in form and substance reasonably satisfactory to the Trustee and the
        Depositor that such transfer may be made pursuant to an exemption, describing
        the applicable exemption and the basis therefor, from the 1933 Act or is
        being
        made pursuant to the 1933 Act, which Opinion of Counsel shall not be an expense
        of the Trustee or the Depositor. The Holder of a Private Certificate 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.

       

      (ii) If
        any
        such transfer of a Private Certificate held by the related transferor and
        also
        to be held by the related transferee in the form of a Book-Entry Certificate
        is
        to be made without registration under the Securities Act, the transferor
        will be
        deemed to have made as of the transfer date each of the representations and
        warranties set forth on Exhibit F-2 hereto in respect of such Private
        Certificate and the transferee will be deemed to have made as of the transfer
        date each of the representations and warranties set forth on Exhibit F-1
        hereto
        in respect of such Private Certificate.

       

      (iii) No
        transfer of any Private Certificate that is a Book-Entry Certificate or interest
        therein shall be made by any related Certificate Owner except (A) in the
        manner
        set forth in clause (ii) above and in reliance on Rule 144A under the 1933
        Act
        to a “qualified institutional buyer” that is acquiring such Book-Entry
        Certificate for its own account or for the account of another “qualified
        institutional buyer” or (B) in the manner set forth in clause (i) above and in
        the form of a Definitive Certificate.

       

      If
        any
        Certificate Owner that is required under this Section 5.02(d) to transfer
        its
        Book-Entry Certificates in the form of Definitive Certificates, (i) notifies
        the
        Trustee of such transfer or exchange and (ii) transfers such Book-Entry
        Certificates to the Trustee, in its capacity as such, through the book-entry
        facilities of the Depository, then the Trustee shall decrease the balance
        of
        such Book-Entry Certificates or, the Trustee shall use reasonable efforts
        to
        cause the surrender to the Certificate Registrar of such Book-Entry Certificates
        by the Depository, and thereupon, the Trustee shall execute, authenticate
        and
        deliver to such Certificate Owner or its designee one or more Definitive
        Certificates in authorized denominations and with a like aggregate principal
        amount.

       

      Subject
        to the provisions of this Section 5.02(d) governing registration of transfer
        and
        exchange, Private Certificates (i) held as Definitive Certificates may be
        transferred in the form of Book-Entry Certificates in reliance on Rule 144A
        under the 1933 Act to one or more “qualified institutional buyers” that are
        acquiring such Definitive Certificates for their own accounts or for the
        accounts of other “qualified institutional buyers” and (ii) held as Definitive
        Certificates by a “qualified institutional buyer” for its own account or for the
        account of another “qualified institutional buyer” may be exchanged for
        Book-Entry Certificates, in each case upon surrender of such Private
        Certificates for registration of transfer or exchange at the offices of the
        Trustee maintained for such purpose. Whenever any such Private Certificates
        are
        so surrendered for transfer or exchange, either the Trustee shall increase
        the
        balance of the related Book-Entry Certificates or the Trustee shall execute,
        authenticate and deliver the Book-Entry Certificates for which such Private
        Certificates were transferred or exchanged, as necessary and appropriate.
        No
        Holder of Definitive Certificates other than a “qualified institutional buyer”
holding such Certificates for its own account or for the account of another
        “qualified institutional buyer” may exchange such Private Certificates for
        Book-Entry Certificates. Further, any Certificate Owner of a Book-Entry
        Certificate other than any such “qualified institutional buyers” shall notify
        the Trustee of its status as such and shall transfer such Book-Entry Certificate
        to the Trustee, through the book-entry facilities of the Depository, whereupon,
        and also upon surrender to the Trustee of such Book-Entry Certificate by
        the
        Depository, (which surrender the Trustee shall use reasonable efforts to
        cause
        to occur), the Trustee shall execute, authenticate and deliver to such
        Certificate Owner or such Certificate Owner’s nominee one or more Definitive
        Certificates in authorized denominations and with a like aggregate principal
        amount.

       

      (e) No
        purchase or transfer of an ERISA-Restricted Certificate shall be made unless
        the
        Trustee shall have received (i) a representation from the transferee of such
        Certificate, acceptable to and in form and substance satisfactory to the
        Trustee
        and the Depositor, (such requirement is satisfied only by the Trustee’s receipt
        of a representation letter from the transferee (in the case of a Class B-4,
        Class B-5 or Class B-6 Certificate) substantially in the form of Exhibit
        G-1
        hereto or receipt of a representation from the transferee (in the case of
        a
        Class R Certificate) substantially in the form of paragraph (xvii) of Exhibit
        F-4, as appropriate), to the effect that either (a) such transferee is not
        an
        employee benefit plan or arrangement subject to Section 406 of ERISA or a
        plan
        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 (each, a “Plan Investor”) or (b) in the case of a Class
        B-4, Class B-5 or Class B-6 Certificate, the purchase of such Certificate
        by or
        on behalf of such Plan is permissible under applicable law, will not subject
        the
        Depositor, the Trustee or the Master Servicer to any obligation in addition
        to
        those undertaken in the Agreement and the following conditions are satisfied:
        (I) the transferee is an insurance company, (II) the source of funds used
        to
        purchase such Certificates is an “insurance company general account” (as such
        term is defined in Prohibited Transaction Class Exemption (“PTCE”) 95-60) and
        (III) the conditions set forth in Section III of PTCE 95-60 and all other
        applicable conditions of PTCE 95-60 have been satisfied and as a result the
        acquisition and holding of such Certificates will not constitute or result
        in a
        non-exempt prohibited transaction under ERISA or Section 4975 of the Code
        or
        (ii) 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 addressed to the Depositor, the
        Trustee and the Master Servicer, satisfactory to such entities, which Opinion
        of
        Counsel shall not be an expense of such entities, to the effect that the
        purchase or holding of such ERISA-Restricted Certificate is permissible under
        applicable law, will not result in a non-exempt prohibited transaction
        provisions of ERISA or Section 4975 of the Code and will not subject the
        Trustee, the Master Servicer or the Depositor to any obligation or liability
        in
        addition to those expressly undertaken in this Agreement. 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 either a
        representation in the form of Exhibit G-1 (in the case of a Class B-4, Class
        B-5
        or Class B-6 Certificate) or paragraph (xvii) of Exhibit F-4 (in the case
        of a
        Class R Certificate) hereto or an Opinion of Counsel as described above shall
        be
        void and of no effect.

       

      Any
        Holder of a Class
        A-3, Class A-8 or Class A-9 Certificate or
        any
        interest therein that is a Definitive Certificate shall represent in the
        form of
        Exhibit G-2 with respect to such Certificates, that either (i) such Holder
        is
        not a Plan Investor or (ii) such Holder is an “accredited investor” within the
        meaning of Rule 501(a) promulgated pursuant to the 1933 Act. Any Holder of
        a
        Class A-3, Class A-8 or Class A-9 Certificate or any interest therein that
        is a
        Book-Entry Certificate shall be deemed to have made the representations
        described in the preceding sentence.

       

      If
        any
        Book-Entry Certificate (or any interest therein) is acquired or held in
        violation of the provisions of Section 5.02(e) above, then the last preceding
        Transferee that either (i) is not a Plan Investor or (ii) is in compliance
        with
        Section 5.02(e)(i)(b) shall be restored, to the extent permitted by law,
        to all
        rights and obligations as Certificate Owner thereof retroactive to the date
        of
        such Transfer of such Certificate. The Trustee shall be under no liability
        to
        any Person for making any payments due on such Certificate to such preceding
        Transferee.

       

      Any
        purported Certificate Owner whose acquisition or holding of any Book-Entry
        Certificate (or interest therein) was effected in violation of the restrictions
        in this Section 5.02(e) shall indemnify and hold harmless the Depositor,
        the
        Trustee, the Master Servicer and the Trust Fund from and against any and
        all
        liabilities, claims, costs or expenses incurred by such parties as a result
        of
        such acquisition or holding.

       

      (f) Each
        Person who has or who acquires any Ownership Interest in a Class R Certificate
        shall be deemed by the acceptance or acquisition of such Ownership Interest
        to
        have agreed to be bound by the following provisions and to have irrevocably
        appointed the Depositor or its designee as its attorney-in-fact to negotiate
        the
        terms of any mandatory sale under clause (v) below and to execute all
        instruments of transfer and to do all other things necessary in connection
        with
        any such sale, and the rights of each Person acquiring any Ownership Interest
        in
        a Class R Certificate are expressly subject to the following
        provisions:

       

      (i) Each
        Person holding or acquiring any Ownership Interest in a Class R 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
        Person
        shall acquire an Ownership Interest in a Class R Certificate unless such
        Ownership Interest is a pro rata undivided interest.

       

      (iii) In
        connection with any proposed transfer of any Ownership Interest in a Class
        R
        Certificate, the Trustee shall as a condition to registration of the transfer,
        require delivery to it, in form and substance satisfactory to it, of each
        of the
        following:

       

      A. an
        affidavit in the form of Exhibit F-4 hereto from the proposed transferee
        to the
        effect that such transferee is a Permitted Transferee and that it is not
        acquiring its Ownership Interest in the Class R Certificate that is the subject
        of the proposed transfer as a nominee, trustee or agent for any Person who
        is
        not a Permitted Transferee; and

       

      B. covenant
        of the proposed transferee to the effect that the proposed transferee agrees
        to
        be bound by and to abide by the transfer restrictions applicable to the Class
        R
        Certificates.

       

      (iv) Any
        attempted or purported transfer of any Ownership Interest in a Class R
        Certificate in violation of the provisions of this Section shall be absolutely
        null and void and shall vest no rights in the purported transferee. If any
        purported transferee shall, in violation of the provisions of this Section,
        become a Holder of a Class R Certificate, then the prior Holder of such Class
        R
        Certificate that is a Permitted Transferee shall, upon discovery that the
        registration of transfer of such Class R Certificate was not in fact permitted
        by this Section, be restored to all rights as Holder thereof retroactive
        to the
        date of registration of transfer of such Class R Certificate. The Trustee
        shall
        be under no liability to any Person for any registration of transfer of a
        Class
        R Certificate that is in fact not permitted by this Section or for malting
        any
        distributions due on such Class R Certificate to the Holder thereof or tatting
        any other action with respect to such Holder under the provisions of this
        Agreement so long as the Trustee received the documents specified in clause
        (iii). The Trustee shall be entitled to recover from any Holder of a Class
        R
        Certificate that was in fact not a Permitted Transferee at the time such
        distributions were made all distributions made on such Class R Certificate.
        Any
        such distributions so recovered by the Trustee shall be distributed and
        delivered by the Trustee to the prior Holder of such Class R Certificate
        that is
        a Permitted Transferee.

       

      (v) If
        any
        Person other than a Permitted Transferee acquires any Ownership Interest
        in a
        Class R Certificate in violation of the restrictions in this Section, then
        the
        Trustee shall have the right but not the obligation, without notice to the
        Holder of such Class R Certificate or any other Person having an Ownership
        Interest therein, to notify the Depositor to arrange for the sale of such
        Class
        R Certificate. The proceeds of such sale, net of commissions (which may include
        commissions payable to the Depositor or its affiliates in connection with
        such
        sale), expenses and taxes due, if any, will be remitted by the Trustee to
        the
        previous Holder of such Class R Certificate that is a Permitted Transferee,
        except that in the event that the Trustee determines that the Holder of such
        Class R Certificate may be liable for any amount due under this Section or
        any
        other provisions of this Agreement, the Trustee may withhold a corresponding
        amount from such remittance as security for such claim. The terms and conditions
        of any sale under this clause (v) shall be determined in the sole discretion
        of
        the Trustee and it shall not be liable to any Person having an Ownership
        Interest in a Class R Certificate as a result of its exercise of such
        discretion.

       

      (vi) If
        any
        Person other than a Permitted Transferee acquires any Ownership Interest
        in a
        Class R Certificate in violation of the restrictions in this Section, then
        the
        Trustee upon receipt of reasonable compensation will provide to the Internal
        Revenue Service, and to the persons specified in Sections 860E(e)(3) and
        (6) of
        the Code, information needed to compute the tax imposed under Section 860E(e)(5)
        of the Code on transfers of residual interests to disqualified
        organizations.

       

      The
        foregoing provisions of this Section shall cease to apply to transfers occurring
        on or after the date on which there shall have been delivered to the Trustee,
        in
        form and substance satisfactory to the Trustee, (i) written notification
        from
        the Rating Agency that the removal of the restrictions on Transfer set forth
        in
        this Section will not cause such Rating Agency to downgrade its rating of
        the
        Certificates and (ii) an Opinion of Counsel to the effect that such removal
        will
        not cause any REMIC hereunder to fail to qualify as a REMIC.

       

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

       

      All
        Certificates surrendered for registration of transfer or exchange shall be
        cancelled by the Certificate Registrar and disposed of pursuant to its standard
        procedures.

       

      Section
        5.03 Mutilated.
        Destroyed. Lost or Stolen Certificates.

       

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

       

      Section
        5.04 Persons
        Deemed Owners.

       

      The
        Master Servicer, the Depositor, the Trustee, the Certificate Registrar, any
        Paying Agent and any agent of the Master Servicer, the Depositor, the
        Certificate Registrar, any Paying Agent or the Trustee may treat the Person,
        including a Depository, in whose name any Certificate is registered as the
        owner
        of such Certificate for the purpose of receiving distributions pursuant to
        Section 4.01 and for all other purposes whatsoever, and none of the Master
        Servicer, the Trust, the Trustee nor any agent of any of them shall be affected
        by notice to the contrary.

       

      To
        the
        extent the Trustee, Certificate Registrar or any Paying Agent is required
        pursuant to this Agreement to determine the identity of the beneficial owner
        of
        a Book-Entry Certificate, any costs assessed by the Depository in making
        such
        determination shall be an expense of the party making such request, but in
        no
        event shall such cost be an expense of the Trust Fund.

       

      Section
        5.05 Appointment
        of Paying Agent.

       

      (a) The
        Paying Agent shall make distributions to Certificateholders from the
        Distribution Account pursuant to Section 4.01 and shall report the amounts
        of
        such distributions to the Trustee. The duties of the Paying Agent may include
        the obligation (i) to withdraw funds from the Distribution Account pursuant
        to
        Sections 3.10 and 3.11 and for the purpose of making the distributions referred
        to above and (ii) to distribute statements and provide information to
        Certificateholders as required hereunder. The Paying Agent hereunder shall
        at
        all times be an entity duly incorporated and validly existing under the laws
        of
        the United States of America or any state thereof, authorized under such
        laws to
        exercise corporate trust powers and subject to supervision or examination
        by
        federal or state authorities. The Paying Agent shall initially be the Trustee.
        The Trustee may appoint a successor to act as Paying Agent, which appointment
        shall be reasonably satisfactory to the Depositor and the Rating
        Agency.

       

      (b) The
        Trustee shall cause the Paying Agent (if other than the Trustee) to execute
        and
        deliver to the Trustee an instrument in which such Paying Agent shall agree
        with
        the Trustee that such Paying Agent shall hold all sums, if any, held by it
        for
        payment to the Certificateholders in trust for the benefit of the
        Certificateholders entitled thereto until such sums shall be paid to such
        Certificateholders and shall agree that it shall comply with all requirements
        of
        the Code regarding the withholding of payments in respect of Federal income
        taxes due from Certificate Owners and otherwise comply with the provisions
        of
        this Agreement applicable to it.

       

      

      ARTICLE
        VI

      THE
        MASTER SERVICER AND THE DEPOSITOR

       

      Section
        6.01 Liability
        of the Master Servicer and the Depositor.

       

      The
        Master Servicer shall be liable in accordance herewith only to the extent
        of the
        obligations specifically imposed upon and undertaken by the Master Servicer,
        as
        the case may be, herein. The Depositor shall be liable in accordance herewith
        only to the extent of the obligations specifically imposed upon and undertaken
        by the Depositor.

       

      Section
        6.02 Merger
        or
        Consolidation of or Assumption of the Obligations of the Master Servicer
        or the
        Depositor.

       

      Any
        entity into which the Master Servicer or Depositor may be merged or
        consolidated, or any entity resulting from any merger, conversion or
        consolidation to which the Master Servicer or the Depositor shall be a party,
        or
        any corporation succeeding to the business of the Master Servicer or the
        Depositor, shall be the successor of the Master Servicer or the Depositor,
        as
        the case may be, hereunder, without the execution or filing of any paper
        or any
        further act on the part of any of the parties hereto, anything herein to
        the
        contrary notwithstanding; provided, however, that the successor master servicer
        shall satisfy all the requirements of Section 7.02 with respect to the
        qualifications of a successor master servicer. In addition, the Master Servicer
        may assign the servicing rights with respect to any Mortgage Loans to a third
        party, provided that any such third party shall be an entity that satisfies
        all
        the requirements of Section 7.02 that would be applicable to a successor
        master
        servicer.

       

      Section
        6.03 Limitation
        on Liability of the Master Servicer and Others.

       

      Neither
        the Master Servicer nor any of the directors or officers or employees or
        agents
        of the Master Servicer shall be under any liability to the Trust or the
        Certificateholders for any action taken or for refraining from the taking
        of any
        action by the Master Servicer in good faith pursuant to this Agreement, or
        for
        errors in judgment; provided, however, that this provision shall not protect
        the
        Master Servicer or any such Person against any liability which would otherwise
        be imposed by reason of its willful misfeasance, bad faith or negligence
        in the
        performance of duties of the Master Servicer or by reason of its reckless
        disregard of its obligations and duties of the Master Servicer hereunder;
        provided, further, that this provision shall not be construed to entitle
        the
        Master Servicer to indemnity in the event that amounts advanced by the Master
        Servicer to retire any senior lien exceed Liquidation Proceeds (in excess
        of
        related liquidation expenses) realized with respect to the related Mortgage
        Loan. The Master Servicer and any director or officer or employee or agent
        of
        the Master Servicer may rely in good faith on any document of any kind prima
        facie properly executed and submitted by any Person respecting any matters
        arising hereunder. The Master Servicer and any director or officer or employee
        or agent of the Master Servicer shall be indemnified by the Trust and held
        harmless against any loss, liability or expense incurred in connection with
        any
        legal action relating to this Agreement or the Certificates, other than any
        loss, liability or expense 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 its willful misfeasance, bad faith or negligence in
        the
        performance of duties hereunder or by reason of its reckless disregard of
        obligations and duties hereunder. The Master Servicer may undertake any such
        action which it may deem necessary or desirable in respect of this Agreement,
        and the rights and duties of the parties hereto and the interests of the
        Certificateholders hereunder. In such event, the reasonable legal expenses
        and
        costs of such action and any liability resulting therefrom shall be expenses,
        costs and liabilities of the Trust and the Master Servicer shall be entitled
        to
        be reimbursed therefor only pursuant to Section 3.11. The Master Servicer’s
        right to indemnity or reimbursement pursuant to this Section shall survive
        any
        resignation or termination of the Master Servicer pursuant to Section 6.04
        or
        7.01 with respect to any losses, expenses, costs or liabilities arising prior
        to
        such resignation or termination (or arising from events that occurred prior
        to
        such resignation or termination). This paragraph shall apply to the Master
        Servicer solely in its capacity as Master Servicer hereunder and in no other
        capacities.

       

      Section
        6.04 Master
        Servicer Not to Resign.

       

      Subject
        to the provisions of Section 7.01 and Section 6.02, the Master Servicer shall
        not resign from the obligations and duties hereby imposed on it except (i)
        upon
        determination that the performance of its obligations or duties hereunder
        are no
        longer permissible under applicable law or are in material conflict by reason
        of
        applicable law with any other activities carried on by it or its subsidiaries
        or
        Affiliates, the other activities of the Master Servicer so causing such a
        conflict being of a type and nature carried on by the Master Servicer or
        its
        subsidiaries or Affiliates at the date of this Agreement or (ii) upon
        satisfaction of the following condition: the Rating Agency shall have delivered
        a letter to the Trustee prior to the appointment of the successor master
        servicer stating that the proposed appointment of such successor master servicer
        as Master Servicer hereunder will not result in the reduction or withdrawal
        of
        the then current rating of the Regular Certificates or the ratings that are
        in
        effect; provided, however, that no such resignation by the Master Servicer
        shall
        become effective until such successor master servicer or, in the case of
        (i)
        above, the Trustee shall have assumed the Master Servicer’s responsibilities and
        obligations hereunder or the Trustee shall have designated a successor master
        servicer in accordance with Section 7.02. Any such resignation shall not
        relieve
        the Master Servicer of responsibility for any of the obligations specified
        in
        Sections 7.01 and 7.02 as obligations that survive the resignation or
        termination of the Master Servicer. Any such determination permitting the
        resignation of the Master Servicer shall be evidenced by an Opinion of Counsel
        to such effect delivered to the Trustee.

       

      Section
        6.05 Delegation
        of Duties.

       

      In
        the
        ordinary course of business, the Master Servicer at any time may delegate
        any of
        its duties hereunder to any Person, including any of its Affiliates, who
        agrees
        to conduct such duties in accordance with standards comparable to those set
        forth in Section 3.01, including entering into Sub-Servicing Agreements with
        Sub-Servicers, for the servicing and administration of the Mortgage Loans,
        in
        accordance with the provisions of Section 3.02. Such delegation shall not
        relieve the Master Servicer of its liabilities and responsibilities with
        respect
        to such duties and shall not constitute a resignation within the meaning
        of
        Section 6.04. The Master Servicer shall provide the Trustee and the Rating
        Agency with 60 days prior written notice prior to the delegation of any of
        its
        duties to any Person other than any of the Master Servicer’s Affiliates or their
        respective successors and assigns.

       

       

      
 

      ARTICLE
        VII

      DEFAULT

       

      Section
        7.01 Master
        Servicer Events of Termination.

       

      (a) If
        any
        one of the following events (“Master Servicer Events of Termination’ ) shall
        occur and be continuing:

       

      (i) (A)
        The
        failure by the Master Servicer to make any Advance (other than a Nonrecoverable
        Advance); or (B) any other failure by the Master Servicer to deposit in the
        Collection Account or Distribution Account any deposit required to be made
        under
        the terms of this Agreement which continues unremedied for a period of (i)
        one
        Business Day in the case of any such Advance that was required to be remitted
        to
        the Trustee or (ii) five Business Days in the case of any such deposit that
        was
        required to be remitted to the Trustee, provided, that, if the Master Servicer
        cures such failure within the applicable grace period, the amounts remitted
        shall include interest calculated at the applicable federal funds rate;
        or

       

      (ii) The
        failure by the Master Servicer duly to observe or perform, in any material
        respect, any other covenants, obligations or agreements of the Master Servicer
        as set forth in this Agreement, which failure continues unremedied for a
        period
        of 30 days, after the date (A) on which written notice of such failure,
        requiring the same to be remedied, shall have been given to the Master Servicer
        by the Trustee or by any Holder of a Regular Certificate evidencing at least
        25%
        of the Voting Rights or (B) actual knowledge of such failure by a Servicing
        Officer of the Master Servicer; or

       

      (iii) The
        entry
        against the Master Servicer of a decree or order by a court or agency or
        supervisory authority having jurisdiction in the premises for the appointment
        of
        a trustee, conservator, receiver or liquidator in any insolvency,
        conservatorship, receivership, readjustment of debt, marshalling of assets
        and
        liabilities or similar proceedings, or for the winding up or liquidation
        of its
        affairs, and the continuance of any such decree or order unstayed and in
        effect
        for a period of 60 days; or

       

      (iv) The
        Master Servicer shall voluntarily go into liquidation, consent to the
        appointment of a conservator or receiver or liquidator or similar person
        in any
        insolvency, readjustment of debt, marshalling of assets and liabilities or
        similar proceedings of or relating to the Master Servicer or of or relating
        to
        all or substantially all of its property; or a decree or order of a court
        or
        agency or supervisory authority having jurisdiction in the premises for the
        appointment of a conservator, receiver, liquidator or similar person in any
        insolvency, readjustment of debt, marshalling of assets and liabilities or
        similar proceedings, or for the winding-up or liquidation of its affairs,
        shall
        have been entered against the Master Servicer and such decree or order shall
        have remained in force undischarged, unbonded or unstayed for a period of
        60
        days; or the Master Servicer shall admit in writing its inability to pay
        its
        debts generally as they become due, file a petition to take advantage of
        any
        applicable insolvency or reorganization statute, make an assignment for the
        benefit of its creditors or voluntarily suspend payment of its
        obligations;

       

      (b) then,
        and
        in each and every such case, so long as a Master Servicer Event of Termination
        shall not have been remedied within the applicable grace period, (x) with
        respect solely to clause (i)(A) above, if such Advance is not made by 11:00
        A.M., New York time, on the Business Day immediately following the Master
        Servicer Remittance Date (provided the Trustee shall give the Master Servicer,
        and the Master Servicer shall have received, notice of such failure to above
        by
        5:00 P.M. New York time on the Master Servicer Remittance Date), the Trustee
        shall terminate all of the rights and obligations of the Master Servicer
        under
        this Agreement and the Trustee, or a successor master servicer appointed
        in
        accordance with Section 7.02, shall immediately make such Advance and assume,
        pursuant to the terms of Section 7.02, the duties of a successor master servicer
        and (y) in the case of (i)(B), (ii), (iii) and (iv) above, the Trustee shall,
        at
        the direction of the Holders of each Class of Regular Certificates evidencing
        Percentage Interests aggregating not less than 51%, by notice then given
        in
        writing to the Master Servicer (and to the Trustee if given by Holders of
        Certificates), terminate all of the rights and obligations of the Master
        Servicer as servicer under this Agreement, to the extent permitted by law,
        and
        in and to the Mortgage Loans and the proceeds thereof. Any such notice to
        the
        Master Servicer shall also be given to the Rating Agency and the Depositor.
        On
        or after the receipt by the Master Servicer (and by the Trustee if such notice
        is given by the Holders) of such written notice, all authority and power
        of the
        Master Servicer under this Agreement, whether with respect to the Certificates
        or the Mortgage Loans or otherwise, shall pass to and be vested in the Trustee
        or duly appointed successor master servicer pursuant to and under this Section;
        and, without limitation, the Trustee or duly appointed successor master servicer
        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 of each Mortgage Loan and Related
        Documents or otherwise. The Master Servicer agrees to cooperate with the
        Trustee
        (or the applicable successor master servicer) in effecting the termination
        of
        the responsibilities and rights of the Master Servicer hereunder, including,
        without limitation, the delivery to the Trustee of all documents and records
        requested by it to enable it to assume the Master Servicer’s functions under
        this Agreement within ten Business Days subsequent to such notice, the transfer
        within one Business Day subsequent to such notice to the Trustee (or the
        applicable successor master servicer) for the administration by it of all
        cash
        amounts that shall at the time be held by the Master Servicer and to be
        deposited by it in the Collection Account, the Distribution Account, any
        REO
        Account or any Servicing Account or that have been deposited by the Master
        Servicer in such accounts or thereafter received by the Master Servicer with
        respect to the Mortgage Loans or any REO Property received by the Master
        Servicer. All Transition Costs incurred in connection with transferring the
        Mortgage Files to the successor master servicer and amending this Agreement
        to
        reflect such succession as Master Servicer pursuant to this Section shall
        be
        paid by the predecessor Master Servicer (or if the predecessor Master Servicer
        is the Trustee, the initial Master Servicer) or by the Trust pursuant to
        Section
        3.11(b)(iv) herein if the Master Servicer does not fulfill its obligations
        hereunder within 45 days of presentation of reasonable documentation of such
        costs and expenses. For purposes of this Section 7.01, the Trustee shall
        not be
        deemed to have knowledge of a Master Servicer Event of Termination unless
        a
        Responsible Officer of the Trustee assigned to and working in the Trustee’s
        Corporate Trust Office has actual knowledge thereof or unless written notice
        of
        any event which is in fact such a Master Servicer Event of Termination is
        received by the Trustee and such notice references the Certificates, the
        Trust
        Fund or this Agreement.

       

      Section
        7.02 Trustee
        to Act; Appointment of Successor.

       

      (a) Within
        90
        days of the time the Master Servicer (and the Trustee, if notice is sent
        by the
        Holders) receives a notice of termination pursuant to Section 7.01 or 6.04,
        the
        Trustee (or such other successor master servicer as is approved in accordance
        with this Agreement) shall be the successor in all respects to the Master
        Servicer in its capacity as servicer under this Agreement and the transactions
        set forth or provided for herein and shall be subject to all the
        responsibilities, duties and liabilities relating thereto placed on the Master
        Servicer by the terms and provisions hereof arising on and after its succession;
        provided, however, that if the Trustee is prohibited by law or regulation
        from
        obligating itself to make advances regarding delinquent mortgage loans, then
        the
        Trustee shall not be obligated to make Advances pursuant to Section 4.06;
        and
        provided further, it is understood and acknowledged that by the parties hereto
        that there will be a period of transition (not to exceed 90 days) before
        the
        transfer of servicing obligations is fully effected and that the Trustee
        (i)
        shall be under no obligation to purchase any Mortgage Loan, and (ii) shall
        have
        no obligation whatsoever with respect to any liability (other than advances
        deemed recoverable and not previously made) incurred by the Master Servicer
        at
        or prior to the time of termination. As compensation therefor, the Trustee
        (or
        such other successor master servicer) shall be entitled to such compensation
        as
        the Master Servicer would have been entitled to hereunder if no such notice
        of
        termination had been given. Notwithstanding the above, (i) if the Trustee
        is
        unwilling to act as successor master servicer or (ii) if the Trustee is legally
        unable so to act, or if the Holders of Certificates entitled to at least
        51% of
        the Voting Rights so request in writing to the Trustee, the Trustee shall
        appoint or petition a court of competent jurisdiction to appoint, any
        established housing and home finance institution, bank or other mortgage
        loan or
        home equity loan servicer having a net worth of not less than $50,000,000
        as the
        successor to the Master Servicer hereunder in the assumption of all or any
        part
        of the responsibilities, duties or liabilities of the Master Servicer hereunder,
        provided, that the appointment of any such successor master servicer will
        not
        result in the qualification, reduction or withdrawal of the ratings assigned
        to
        the Certificates or the ratings that are in effect by the Rating Agency as
        evidenced by a letter to such effect from the Rating Agency. Pending appointment
        of a successor to the Master Servicer hereunder, unless the Trustee is
        prohibited by law from so acting, the Trustee shall act in such capacity
        as
        herein above provided. In connection with such appointment and assumption,
        the
        successor shall be entitled to receive compensation out of payments on Mortgage
        Loans in an amount equal to the compensation which the Master Servicer would
        otherwise have received pursuant to Section 3.18 (or such other compensation
        as
        the Trustee and such successor shall agree, not to exceed the Servicing Fee).
        The appointment of a successor master servicer shall not affect any liability
        of
        the predecessor Master Servicer which may have arisen under this Agreement
        prior
        to its termination as Master Servicer to pay any deductible under an insurance
        policy pursuant to Section 3.13 or to indemnify the Trustee pursuant to Section
        8.05, nor shall any successor master servicer be liable for any acts or
        omissions of the predecessor Master Servicer or for any breach by such Master
        Servicer of any of its representations or warranties contained herein or
        in any
        related document or agreement. The Trustee and such successor shall take
        such
        action, consistent with this Agreement, as shall be necessary to effectuate
        any
        such succession.

       

      (b) Any
        successor, including the Trustee, to the Master Servicer as servicer shall
        during the term of its service as master servicer continue to master service
        and
        administer the Mortgage Loans for the benefit of Certificateholders, and
        maintain in force a policy or policies of insurance covering errors and
        omissions in the performance of its obligations as Master Servicer hereunder
        and
        a Fidelity Bond in respect of its officers, employees and agents to the same
        extent as the Master Servicer is so required pursuant to Section
        3.14.

       

      (c) 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, in which case the
        predecessor Master Servicer shall cooperate with the successor Master Servicer
        in causing MERS to revise its records to reflect the transfer of servicing
        to
        the successor Master Servicer as necessary under MERS’ rules and regulations, or
        (ii) the predecessor Master Servicer shall cooperate with the successor Master
        Servicer 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. The
        predecessor Master Servicer shall file or cause to be filed any such assignment
        in the appropriate recording office. The predecessor Master Servicer shall
        bear
        any and all fees of MERS, costs of preparing any assignments of Mortgage,
        and
        fees and costs of filing any assignments of Mortgage that may be required
        under
        this subsection (c). 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
        7.03 Waiver
        of
        Master Servicer Events of Termination.

       

      The
        Majority Certificateholders may, on behalf of all Certificateholders, waive
        any
        events permuting removal of the Master Servicer as servicer pursuant to this
        Article VII, provided, however, that the Majority Certificateholders may
        not
        waive such events or a Master Servicer Event of Termination in making a required
        distribution on a Certificate without the consent of the Holder of such
        Certificate. Upon any waiver of a past default, such default shall cease
        to
        exist and any Master Servicer Event of Termination arising therefrom shall
        be
        deemed to have been remedied for every purpose of this Agreement. No such
        waiver
        shall extend to any subsequent or other default or impair any right consequent
        thereto except to the extent expressly so waived. Notice of any such waiver
        shall be given by the Trustee to the Rating Agency.

       

      Section
        7.04 Notification
        to Certificateholders.

       

      (a) Upon
        any
        termination or appointment of a successor the Master Servicer pursuant to
        this
        Article VII or Section 6.04, the Trustee shall give prompt written notice
        thereof to the Certificateholders at their respective addresses appearing
        in the
        Certificate Register and each Rating Agency.

       

      (b) No
        later
        than 60 days after the occurrence of any event which constitutes or which,
        with
        notice or a lapse of time or both, would constitute a Master Servicer Event
        of
        Termination the Trustee shall be deemed to have actual knowledge of such
        Master
        Servicer Event of Termination five Business Days after a Responsible Officer
        of
        the Trustee becomes aware of the occurrence of such an event and the Trustee
        shall transmit by mail to all Certificateholders notice of such occurrence
        unless such default or Master Servicer Event of Termination shall have been
        waived or cured. Such notice shall be given to the Rating Agency promptly
        after
        any such occurrence.

       

      Section
        7.05 Survivability
        of Master Servicer Liabilities.

       

      Notwithstanding
        anything herein to the contrary, upon termination of the Master Servicer
        hereunder, any liabilities of the Master Servicer which accrued prior to
        such
        termination shall survive such termination.

       

      

      ARTICLE
        VIII

      THE
        TRUSTEE

       

      Section
        8.01 Duties
        of
        Trustee.

       

      The
        Trustee, prior to the occurrence of a Master Servicer Event of Termination
        of
        which a Responsible Officer of the Trustee shall have actual knowledge and
        after
        the curing of all Master Servicer Events of Termination which may have occurred,
        undertakes to perform such duties and only such duties as are specifically
        set
        forth in this Agreement. If a Master Servicer Event of Termination has occurred
        (which has not been cured) of which a Responsible Officer has actual knowledge,
        the Trustee shall exercise such of the rights and powers vested in it by
        this
        Agreement, and use the same degree of care and skill in their exercise, as
        a
        prudent person would exercise or use under the circumstances in the conduct
        of
        such person’s own affairs.

       

      As
        provided in Section 4.02 hereof, on each Distribution Date, the Trustee shall
        provide Bloomberg Financial Markets, L.P. (“Bloomberg”) CUSIP level information
        for each Class of Certificates as of such Distribution Date, using a format
        and
        media mutually acceptable to the Trustee and Bloomberg.

       

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

       

      The
        Trustee shall prepare and file or cause to be filed on behalf of the Trust
        Fund
        any tax return that is required with respect to the Trust Fund pursuant to
        applicable federal, state or local tax laws.

       

      The
        Trustee covenants and agrees that it shall perform its obligations hereunder
        in
        a manner so as to maintain the status of the Trust Fund as two REMICs under
        the
        REMIC Provisions and to prevent the imposition of any federal, state or local
        income, prohibited transaction, contribution or other tax on the Trust Fund
        to
        the extent that maintaining such status and avoiding such taxes are within
        the
        control of the Trustee and are within the commercially reasonable scope of
        specific responsibilities under this Agreement.

       

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

       

      (i) prior
        to
        the occurrence of a Master Servicer Event of Termination, and after the curing
        of all such Master Servicer Events of Termination which may have occurred,
        the
        duties and obligations of the Trustee shall be determined solely by the express
        provisions of this Agreement, the Trustee shall not be liable except for
        the
        performance of such duties and obligations as are specifically set forth
        in this
        Agreement, no implied covenants or obligations shall be read into this Agreement
        against the Trustee and, in the absence of bad faith on the part of the Trustee,
        the Trustee may conclusively rely, as to the truth of the statements and
        the
        correctness of the opinions expressed therein, upon any certificates or opinions
        furnished to the Trustee and conforming to the requirements of this
        Agreement;

       

      (ii) the
        Trustee shall not be personally liable for an error of judgment made in good
        faith by a Responsible Officer of the Trustee, unless it shall be proved
        by a
        court of competent jurisdiction that the Trustee was negligent in ascertaining
        or investigating the facts related thereto;

       

      (iii) the
        Trustee shall not be personally liable with respect to any action taken,
        suffered or omitted to be taken by it in good faith in accordance with the
        direction of the Majority Certificateholders relating to the time, method
        and
        place of conducting any proceeding for any remedy available to the Trustee,
        or
        exercising or omitting to exercise any trust or power conferred upon the
        Trustee, under this Agreement; and

       

      (iv) the
        Trustee shall not be charged with knowledge of any failure by the Master
        Servicer to comply with the obligations of the Master Servicer referred to
        in
        clauses (i) and (ii) of Section 7.01 or any Master Servicer Event of Termination
        unless a Responsible Officer of the Trustee at the Corporate Trust Office
        obtains actual knowledge of such failure or the Trustee receives written
        notice
        of such failure from the Master Servicer or the Majority Certificateholders.
        In
        the absence of such receipt of such notice, the Trustee may conclusively
        assume
        that there is no Master Servicer Event of Termination.

       

      The
        Trustee shall not be required to expend or risk its own funds or otherwise
        incur
        financial liability in the performance of any of its duties hereunder, or
        in the
        exercise of any of its rights or powers, if there is reasonable ground for
        believing that the repayment of such funds or adequate indemnity against
        such
        risk or liability is not reasonably assured to it, and none of the provisions
        contained in this Agreement shall in any event require the Trustee to perform,
        or be responsible for the manner of performance of, any of the obligations
        of
        the Master Servicer or Pledged Asset 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
        in
        accordance with the terms of this Agreement.

       

      The
        Trustee shall not complete foreclosure proceedings, or accept a deed in lieu
        of
        foreclosure, with respect to any Mortgage Loan, unless the Trustee has been
        supplied with an Opinion of Counsel to the effect that if the related Mortgaged
        Property is acquired by the Trust, such Mortgaged Property from such Mortgage
        will qualify as “foreclosure property” within the meaning of Section 860G(a)(8)
        of the Code. In the event that the Trustee acquires possession of any Mortgaged
        Property in spite of the foregoing, the Trustee shall dispose of the acquired
        Mortgaged Property as expeditiously as possible.

       

      The
        Trustee shall have no duty (A) to see any recording, filing, or depositing
        of
        this Agreement or any agreement referred to herein or any financing statement
        or
        continuation statement evidencing a security interest, or to see to the
        maintenance of any such recording or filing or depositing or to any rerecording,
        refiling or redepositing of any thereof, (B) to see to any insurance or (C)
        to
        see to the payment or discharge of any tax, assessment, or other governmental
        charge or any lien or encumbrance of any kind owing with respect to, assessed
        or
        levied against, any part of the Trust Fund other than from funds available
        in
        the Distribution Account to confirm or verify the contents of any reports
        or
        certificates of the Master Servicer or the Pledged Asset 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
        8.02 Certain
        Matters Affecting the Trustee.

       

      (a) Except
        as
        otherwise provided in Section 8.01:

       

      (i) the
        Trustee may request and conclusively rely upon, and shall be fully protected
        in
        acting or refraining from acting upon, any resolution, Officer’s Certificate,
        certificate of auditors or any other certificate, statement, instrument,
        opinion, report, notice, request, consent, order, appraisal, bond or other
        paper
        or document reasonably believed by it to be genuine and to have been signed
        or
        presented by the proper party or parties;

       

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

       

      (iii) the
        Trustee shall be under no obligation to exercise any of the rights or powers
        vested in it by this Agreement, or to institute, conduct or defend any
        litigation hereunder or in relation hereto, at the request, order or direction
        of the Certificateholders pursuant to the provisions of this Agreement, unless
        such Certificateholders shall have offered to the Trustee reasonable security
        or
        indemnity against the costs, expenses and liabilities which may be incurred
        therein or thereby; the right of the Trustee to perform any discretionary
        act
        enumerated in this Agreement shall not be construed as a duty, and the Trustee
        shall not be answerable for other than its negligence or willful misconduct
        in
        the performance of any such act;

       

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

       

      (v) prior
        to
        the occurrence of a Master Servicer Event of Termination and after the curing
        of
        all Master Servicer Events of Termination which may have occurred, the Trustee
        shall not be bound to make any investigation into the facts or matters stated
        in
        any resolution, certificate, statement, instrument, opinion, report, notice,
        request, consent, order, approval, bond or other paper or documents, unless
        requested in writing to do so by the Majority Certificateholder; provided,
        however, that if the payment within a reasonable time to the Trustee of the
        costs, expenses or liabilities likely to be incurred by it in the making
        of such
        investigation is, in the opinion of the Trustee, not reasonably assured to
        the
        Trustee by the security afforded to it by the terms of this Agreement, the
        Trustee may require reasonable indemnity against such cost, expense or liability
        as a condition to such proceeding. The reasonable expense of every such
        examination shall be paid by the Master Servicer or, if paid by the Trustee,
        shall be reimbursed by the Master Servicer upon demand. Nothing in this clause
        (v) shall derogate from the obligation of the Master Servicer to observe
        any
        applicable law prohibiting disclosure of information regarding the
        Mortgagors;

       

      (vi) the
        Trustee shall not be accountable, shall have no liability and makes no
        representation as to any acts or omissions hereunder of the Master Servicer
        until such time as the Trustee may be required to act as Master Servicer
        pursuant to Section 7.02;

       

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

       

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

       

      Section
        8.03 Trustee
        Not Liable for Certificates or Mortgage Loans.

       

      The
        recitals contained herein and in the Certificates (other than the authentication
        of the Trustee on the Certificates) shall be taken as the statements of the
        Master Servicer, and the Trustee assumes no responsibility for the correctness
        of the same. The Trustee makes no representations as to the validity or
        sufficiency of this Agreement or of the Certificates (other than the signature
        and authentication of the Trustee on the Certificates) or of any Mortgage
        Loan
        or Related Document, or of MERS or the MERS® System. The Trustee shall not be
        accountable for the use or application by the Master Servicer, or for the
        use or
        application of any funds paid to the Master Servicer in respect of the Mortgage
        Loans or deposited in or withdrawn from the Collection Account by the Master
        Servicer. The Trustee shall at no time have any responsibility or liability
        for
        or with respect to the legality, validity and enforceability of any Mortgage
        or
        any Mortgage Loan, or the perfection and priority of any Mortgage or the
        maintenance of any such perfection and priority, or for or with respect to
        the
        sufficiency of the Trust or its ability to generate the payments to be
        distributed to Certificateholders under this Agreement, including, without
        limitation: the existence, condition and ownership of any Mortgaged Property;
        the existence and enforceability of any hazard insurance thereon (other than
        if
        the Trustee shall assume the duties of the Master Servicer pursuant to Section
        7.02); the validity of the assignment of any Mortgage Loan to the Trustee
        or of
        any intervening assignment; the completeness of any Mortgage Loan; the
        performance or enforcement of any Mortgage Loan (other than if the Trustee
        shall
        assume the duties of the Master Servicer pursuant to Section 7.02); the
        compliance by the Depositor or the Master Servicer with any warranty or
        representation made under this Agreement or in any related document or the
        accuracy of any such warranty or representation prior to the Trustee’s receipt
        of notice or other discovery of any noncompliance therewith or any breach
        thereof, any investment of monies by or at the direction of the Master Servicer
        or any loss resulting therefrom, it being understood that the Trustee shall
        remain responsible for any Trust property that it may hold in its individual
        capacity; the acts or omissions of any of the Master Servicer (other than
        if the
        Trustee shall assume the duties of the Master Servicer pursuant to Section
        7.02), any Sub-Servicer or any Mortgagor, any action of the Master Servicer
        (other than if the Trustee shall assume the duties of the Master Servicer
        pursuant to Section 7.02), or any Sub-Servicer taken in the name of the Trustee;
        the failure of the Master Servicer or any Sub-Servicer to act or perform
        any
        duties required of it as agent of the Trustee hereunder; or any action by
        the
        Trustee taken at the instruction of the Master Servicer (other than if the
        Trustee shall assume the duties of the Master Servicer pursuant to Section
        7.02); provided, however, that the foregoing shall not relieve the Trustee
        of
        its obligation to perform its duties under this Agreement. The Trustee shall
        have no responsibility for filing any financing or continuation statement
        in any
        public office at any time or to otherwise perfect or maintain the perfection
        of
        any security interest or lien granted to it hereunder (unless the Trustee
        shall
        have become the successor master servicer).

       

      Section
        8.04 Trustee
        May Own Certificates.

       

      The
        Trustee in its individual or any other capacity may become the owner or pledgee
        of Certificates with the same rights as it would have if it were not Trustee
        and
        may transact any banking and trust business with the Master Servicer, the
        Depositor or their Affiliates.

       

      Section
        8.05 Master
        Servicer to Pay Trustee Expenses; Trustee Fees.

       

      On
        each
        Distribution Date, the Trustee shall be entitled to withdraw from the
        Distribution Account as compensation hereunder the Trustee Fees. The Master
        Servicer will pay or reimburse the Trustee (or, if the Master Servicer does
        not
        fulfill its obligations hereunder, the Trust Fund will reimburse pursuant
        to
        Section 3.11(b)(ii) herein) within 30 days upon its request for all reasonable
        expenses, disbursements and advances incurred or made by the Trustee in
        accordance with any of the provisions of this Agreement (including the
        reasonable compensation and the expenses and disbursements of its counsel
        and of
        all persons not regularly in its employ) except any such expense, disbursement
        or advance as may arise from its negligence or bad faith or which is the
        responsibility of the Trustee hereunder. In addition, the Master Servicer
        covenants and agrees to indemnify the Trustee (or, if the Master Servicer
        does
        not fulfill its obligations hereunder within 30 days upon the Trustee’s request,
        the Trust Fund will indemnify pursuant to Section 3.11(b)(ii) herein) and
        its
        officers, directors, employees and agents from, and hold it harmless against,
        any and all losses, liabilities, damages, claims or expenses incurred in
        connection with any legal action relating to this Agreement or the Certificates,
        other than any loss, liability or expense incurred by reason of willful
        misfeasance, bad faith or negligence of the Trustee in the performance of
        its
        duties hereunder or by reason of the Trustee’s reckless disregard of obligations
        and duties hereunder. Anything in this Agreement to the contrary
        notwithstanding, in no event shall the Trustee be liable for special, indirect
        or consequential loss or damage of any kind whatsoever (including but not
        limited to lost profits), even if the Trustee has been advised of the likelihood
        of such loss or damage and regardless of the form of action. The Trustee
        and any
        director, officer, employee or agent of the Trustee shall be indemnified,
        by the
        Trust Fund and held harmless against any loss, liability or expense (not
        including expenses, disbursements and advances incurred or made by the Trustee,
        including the compensation and the expenses and disbursements of its agents
        and
        its counsel, in the ordinary course of the Trustee’s performance of its regular
        duties in accordance with the provisions of this Agreement) incurred by the
        Trustee or such party arising out of or in connection with the acceptance
        or
        administration of its duties under this Agreement, other than any loss,
        liability or expense incurred by reason of willful misfeasance, bad faith
        or
        negligence in the performance by the Trustee of its duties under this Agreement
        or by reason of the reckless disregard of the Trustee’s obligations and duties
        under this Agreement. This section shall survive termination of this Agreement
        or the resignation or removal of any Trustee hereunder.

       

      Section
        8.06 Eligibility
        Requirements for Trustee.

       

      The
        Trustee hereunder shall be a corporation or a national banking association,
        and
        duly organized and validly existing under the laws of the United States of
        America or any state thereof, authorized under such laws to exercise corporate
        trust powers, having a combined capital and surplus of at least $50,000,000
        and
        a minimum long-term debt rating of Baa3 by Moody’s and a short-term rating of at
        least A-1 by S&P and A by Fitch, and subject to supervision or examination
        by federal or state authority. If such entity publishes reports of condition
        at
        least annually, pursuant to law or to the requirements of the aforesaid
        supervising or examining authority, then for the purposes of this Section
        8.06,
        the combined capital and surplus of such entity shall be deemed to be its
        combined capital and surplus as set forth in its most recent report of condition
        so published. The principal office of the Trustee (other than the initial
        Trustee) shall be in a state with respect to which an Opinion of Counsel
        has
        been delivered to such Trustee at the time such Trustee is appointed Trustee
        to
        the effect that the Trust will not be a taxable entity under the laws of
        such
        state. In case at any time the Trustee shall cease to be eligible in accordance
        with the provisions of this Section 8.06, the Trustee shall resign immediately
        in the manner and with the effect specified in Section 8.07.

       

      Section
        8.07 Resignation
        or Removal of Trustee.

       

      The
        Trustee may at any time resign and be discharged from the trusts hereby created
        by giving written notice thereof to the Depositor, the Master Servicer and
        the
        Rating Agency. Upon receiving such notice of resignation, the Depositor shall
        promptly appoint a successor Trustee by written instrument, in duplicate,
        one
        copy of which instrument shall be delivered to the resigning Trustee and
        one
        copy to the successor Trustee. If no successor Trustee shall have been so
        appointed and having accepted appointment within 60 days after the giving
        of
        such notice of resignation, the resigning Trustee may petition any court
        of
        competent jurisdiction for the appointment of a successor Trustee.

       

      If
        at any
        time the Trustee shall cease to be eligible in accordance with the provisions
        of
        Section 8.06 and shall fail to resign after written request therefor by the
        Depositor, or if at any time the Trustee shall be legally unable to act,
        or
        shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or
        of
        its property shall be appointed, or any public officer shall take charge
        or
        control of the Trustee or of its property or affairs for the purpose of
        rehabilitation, conservation or liquidation, then the Depositor may remove
        the
        Trustee. If the Depositor or the Master Servicer removes the Trustee under
        the
        authority of the immediately preceding sentence, the Depositor shall promptly
        appoint a successor Trustee by written instrument, in duplicate, one copy
        of
        which instrument shall be delivered to the Trustee so removed and one copy
        to
        the successor Trustee.

       

      The
        Majority Certificateholders may at any time remove the Trustee by written
        instrument or instruments delivered to the Master Servicer, the Depositor
        and
        the Trustee; the Depositor shall thereupon use its best efforts to appoint
        a
        successor Trustee in accordance with this Section.

       

      Any
        resignation or removal of the Trustee and appointment of a successor Trustee
        pursuant to any of the provisions of this Section 8.07 shall not become
        effective until acceptance of appointment by the successor Trustee as provided
        in Section 8.08.

       

      Section
        8.08 Successor
        Trustee.

       

      Any
        successor Trustee appointed as provided in Section 8.07 shall execute,
        acknowledge and deliver to the Depositor, the Rating Agency, the Master Servicer
        and to its predecessor Trustee an instrument accepting such appointment
        hereunder, and thereupon the resignation or removal of the predecessor Trustee
        shall become effective, and such successor Trustee, without any further act,
        deed or conveyance, shall become fully vested with all the rights, powers,
        duties and obligations of its predecessor hereunder, with like effect as
        if
        originally named as Trustee. The Depositor, the Master Servicer and the
        predecessor Trustee shall execute and deliver such instruments and do such
        other
        things as may reasonably be required for fully and certainly vesting and
        confirming in the successor Trustee all such rights, powers, duties and
        obligations.

       

      No
        successor Trustee shall accept appointment as provided in this Section 8.08
        unless at the time of such acceptance such successor Trustee shall be eligible
        under the provisions of Section 8.06 and the appointment of such successor
        Trustee shall not result in a downgrading of the Regular Certificates by
        the
        Rating Agency, as evidenced by a letter from the Rating Agency.

       

      Upon
        acceptance of appointment by a successor Trustee as provided in this Section
        8.08, the successor Trustee shall mail notice of the appointment of a successor
        Trustee hereunder to all Holders of Certificates at their addresses as shown
        in
        the Certificate Register and to the Rating Agency.

       

      Section
        8.09 Merger
        or
        Consolidation of Trustee.

       

      Any
        entity into which the Trustee may be merged or converted or with which it
        may be
        consolidated, or any entity resulting from any merger, conversion or
        consolidation to which the Trustee shall be a party, or any entity succeeding
        to
        the business of the Trustee, shall be the successor of the Trustee hereunder,
        provided such entity shall be eligible under the provisions of Section 8.06
        and
        8.08, without the execution or filing of any paper or any further act on
        the
        part of any of the parties hereto, anything herein to the contrary
        notwithstanding.

       

      Section
        8.10 Appointment
        of Co-Trustee or Separate Trustee.

       

      Notwithstanding
        any other provisions of this Agreement, at anytime, for the purpose of meeting
        any legal requirements of any jurisdiction in which any part of the Trust
        or any
        Mortgaged Property may at the time be located, the Depositor and the Trustee
        acting jointly shall have the power and shall execute and deliver all
        instruments to appoint one or more Persons approved by the Trustee to act
        as
        co-trustee or co-trustees, jointly with the Trustee, or separate trustee
        or
        separate trustees, of all or any part of the Trust, and to vest in such Person
        or Persons, in such capacity and for the benefit of the Certificateholders,
        such
        title to the Trust, or any part thereof, and, subject to the other provisions
        of
        this Section 8.10, such powers, duties, obligations, rights and trusts as
        the
        Master Servicer and the Trustee may consider necessary or desirable. Any
        such
        co-trustee or separate trustee shall be subject to the written approval of
        the
        Master Servicer. If the Master Servicer shall not have joined in such
        appointment within 15 days after the receipt by it of a request so to do,
        or in
        the case a Master Servicer Event of Termination shall have occurred and be
        continuing, the Trustee alone shall have the power to make such appointment.
        No
        co-trustee or separate trustee hereunder shall be required to meet the terms
        of
        eligibility as a successor Trustee under Section 8.06, and no notice to
        Certificateholders of the appointment of any co-trustee or separate trustee
        shall be required under Section 8.08. The Master Servicer shall be responsible
        for the fees of any co-trustee or separate trustee appointed
        hereunder.

       

      Every
        separate trustee and co-trustee shall, to the extent permitted by law, be
        appointed and act subject to the following provisions and
        conditions:

       

      (i) all
        rights, powers, duties and obligations conferred or imposed upon the Trustee
        shall be conferred or imposed upon and exercised or performed by the Trustee
        and
        such separate trustee or co-trustee jointly (it being understood that such
        separate trustee or co-trustee is not authorized to act separately without
        the
        Trustee joining in such act), except to the extent that under any law of
        any
        jurisdiction in which any particular act or acts are to be performed (whether
        as
        Trustee hereunder or as successor to the 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 Trust or any portion thereof in any such jurisdiction) shall be exercised
        and performed singly by such separate trustee or co-trustee, but solely at
        the
        direction of the Trustee;

       

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

       

      (iii) the
        Master Servicer and the Trustee, acting jointly may at any time accept the
        resignation of or remove any separate trustee or co-trustee except that
        following the occurrence of a Master Servicer Event of Termination, the Trustee
        acting alone may accept the resignation or remove any separate trustee or
        co-trustee.

       

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

       

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

       

      Section
        8.11 Limitation
        of Liability.

       

      The
        Certificates are executed by the Trustee, not in its individual capacity
        but
        solely as Trustee of the Trust, in the exercise of the powers and authority
        conferred and vested in it by the Trust Agreement. Each of the undertakings
        and
        agreements made on the part of the Trustee in the Certificates is made and
        intended not as a personal undertaking or agreement by the Trustee but is
        made
        and intended for the purpose of binding only the Trust.

       

      Section
        8.12 Trustee
        May Enforce Claims Without Possession of Certificates.

       

      (a) All
        rights of action and claims under this Agreement or the Certificates may
        be
        prosecuted and enforced by the Trustee without the possession of any of the
        Certificates or the production thereof in any proceeding relating thereto,
        and
        such proceeding instituted by the Trustee shall be brought in its own name
        or in
        its capacity as Trustee for the benefit of all Holders of such Certificates,
        subject to the provisions of this Agreement. Any recovery of judgment shall,
        after provision for the payment of the reasonable compensation, expenses,
        disbursement and advances of the Trustee, its agents and counsel, be for
        the
        ratable benefit of the Certificateholders in respect of which such judgment
        has
        been recovered.

       

      (b) The
        Trustee shall afford the Depositor, the Master Servicer and each
        Certificateholder upon reasonable notice during normal business hours, access
        to
        all records maintained by the Trustee in respect of its duties hereunder
        and
        access to officers of the Trustee responsible for performing such duties.
        The
        Trustee shall cooperate fully with the Master Servicer, the Depositor and
        such
        Certificateholder and shall make available to the Master Servicer, the Depositor
        and such Certificateholder for review and copying at the expense of the party
        requesting such copies, such books, documents or records as may be requested
        with respect to the Trustee’s duties hereunder. The Depositor, the Master
        Servicer and the Certificateholders shall not have any responsibility or
        liability for any action or failure to act by the Trustee and are not obligated
        to supervise the performance of the Trustee under this Agreement or
        otherwise.

       

      Section
        8.13 Suits
        for
        Enforcement.

       

      In
        case a
        Master Servicer Event of Termination or other default by the Master Servicer
        or
        the Depositor hereunder shall occur and be continuing, the Trustee may proceed
        to protect and enforce its rights and the rights of the Certificateholders
        under
        this Agreement by a suit, action or proceeding in equity or at law or otherwise,
        whether for the specific performance of any covenant or agreement contained
        in
        this Agreement or in aid of the execution of any power granted in this Agreement
        or for the enforcement of any other legal, equitable or other remedy, as
        the
        Trustee, being advised by counsel, and subject to the foregoing, shall deem
        most
        effectual to protect and enforce any of the rights of the Trustee and the
        Certificateholders.

       

      Section
        8.14 Waiver
        of
        Bond Requirement.

       

      The
        Trustee shall be relieved of, and each Certificateholder hereby waives, any
        requirement of any jurisdiction in which the Trust, or any part thereof,
        may be
        located that the Trustee post a bond or other surety with any court, agency
        or
        body whatsoever.

       

      Section
        8.15 Waiver
        of
        Inventory. Accounting and Appraisal Requirement.

       

      The
        Trustee shall be relieved of, and each Certificateholder hereby waives, any
        requirement of any jurisdiction in which the Trust, or any part thereof,
        may be
        located that the Trustee file any inventory, accounting or appraisal of the
        Trust with any court, agency or body at any time or in any manner
        whatsoever.

       

      Section
        8.16 Right
        of
        Trustee in Capacity of Certificate Registrar or Paying Agent.

       

      In
        the
        event that the Trustee is also acting in the capacity of Paying Agent or
        Certificate Registrar hereunder, the rights, protections, indemnities and
        immunities afforded to the Trustee pursuant to this Article VIII shall also
        be
        afforded to the Trustee in its capacity as Paying Agent or Certificate
        Registrar.

       

      Section
        8.17 Periodic
        Filings.

       

      (a)  (i)
        Within 15 days after each Distribution Date, the Trustee shall, in accordance
        with industry standards, file with the Commission via the Electronic Data
        Gathering and Retrieval System (“EDGAR”), a Distribution Report on Form 10-D,
        signed by the Master Servicer, with a copy of the monthly statement to be
        furnished by the Trustee to the Certificateholders for such Distribution
        Date.
        Any disclosure in addition to the monthly statement required to be included
        on
        the Form 10-D (“Additional Form 10-D Disclosure”) shall be determined and
        prepared by the entity that is indicated in Exhibit P as the responsible
        party
        for providing that information, if other than the Trustee, and the Trustee
        will
        have no duty or liability to verify the accuracy or sufficiency of any such
        Additional Form 10-D Disclosure and the Trustee shall have no liability with
        respect to any failure to properly prepare or file such Form 10-D resulting
        from
        or relating to the Trustee’s inability or failure to obtain any information in a
        timely manner from the party responsible for delivery of such Additional
        Form
        10-D Disclosure.

       

      Within
        5
        calendar days after the related Determination Date, each entity that is
        indicated in Exhibit P as the responsible party for providing Additional
        Form
        10-D Disclosure shall be required to provide to the Trustee and the Master
        Servicer, to the extent known, clearly identifying which item of Form 10-D
        the
        information relates to, any Additional Form 10-D Disclosure, if applicable.
        The
        Trustee shall compile the information provided to it, prepare the Form 10-D
        and
        forward the Form 10-D to the Master Servicer for verification. The Master
        Servicer will approve, as to form and substance, or disapprove, as the case
        may
        be, the Form 10-D. No later than three Business Days prior to the 15th calendar
        day after the related Distribution Date, an officer of the Master Servicer
        shall
        sign the Form 10-D and return an electronic or fax copy of such signed Form
        10-D
        (with an original executed hard copy to follow by overnight mail) to the
        Trustee.

       

      (ii)
        Within four (4) Business Days after the occurrence of an event requiring
        disclosure on Form 8-K (each such event, a “Reportable Event”), the Depositor
        shall prepare and file any Form 8-K, as required by the Exchange Act, in
        addition to the initial Form 8-K in connection with the issuance of the
        Certificates. Any disclosure or information related to a Reportable Event
        or
        that is otherwise required to be included on Form 8-K (“Form 8-K Disclosure
        Information”) shall be determined and prepared by the entity that is indicated
        in Exhibit P as the responsible party for providing that
        information.

       

      For
        so
        long as the Trust is subject to the Exchange Act reporting requirements,
        no
        later than the end of business on the second Business Day after the occurrence
        of a Reportable Event, the entity that is indicated in Exhibit P as the
        responsible party for providing Form 8-K Disclosure Information shall be
        required to provide to the Depositor, to the extent known, the form and
        substance of any Form 8-K Disclosure Information, if applicable. The Depositor
        shall compile the information provided to it, and prepare and file the Form
        8-K,
        which shall be signed by an officer of the Depositor.

       

      (iii)
        Prior to January 30 of the first year in which the Trustee is able to do
        so
        under applicable law, the Trustee shall, in accordance with industry standards,
        file a Form 15 Suspension Notice with respect to the Trust Fund, if applicable.
        Prior to (x) February 28, 2007 and (y) unless and until a Form 15 Suspension
        Notice shall have been filed, prior to February 28 of each year thereafter,
        the
        Master Servicer shall provide the Trustee with an Annual Compliance Statement,
        together with a copy of the Assessment of Compliance and Attestation Report
        to
        be delivered by the Master Servicer pursuant to Sections 3.20 and 3.21
        (including with respect to any Sub-Servicer or subcontractor, if required
        to be
        filed). Prior to (x) March 31, 2007 and (y) unless and until a Form 15
        Suspension Notice shall have been filed, March 31 of each year thereafter,
        the
        Trustee shall file a Form 10-K, in substance as required by applicable law
        or
        applicable Securities and Exchange Commission staff’s interpretations and
        conforming to industry standards, with respect to the Trust Fund. Such Form
        10-K
        shall include the Assessment of Compliance, Attestation Report, Annual
        Compliance Statements and other documentation provided by the Master Servicer
        pursuant to Sections 3.20 and 3.21 (including with respect to any Sub-Servicer
        or subcontractor, if required to be filed) and Section 3.21 with respect
        to the
        Trustee (including with respect to any subcontractor, if required to be filed),
        and the Form 10-K certification in the form attached hereto as Exhibit M
        (the
“Form 10-K Certification”). The Trustee shall receive the items described in the
        preceding sentence no later than March 15 of each calendar year prior to
        the
        filing deadline for the Form 10-K.

       

      Any
        disclosure or information in addition to that described in the preceding
        paragraph that is required to be included on Form 10-K (“Additional Form 10-K
        Disclosure”) shall be determined and prepared by the entity that is indicated in
        Exhibit P as the responsible party for providing that information, if other
        than
        the Trustee, and the Trustee will have no duty or liability to verify the
        accuracy or sufficiency of any such Additional Form 10-K
        Disclosure.

       

      If
        information, data and exhibits to be included in the Form 10-K are not so
        timely
        delivered, the Trustee shall file, at the Depositor’s direction, an amended
        Form 10-K including such documents as exhibits reasonably promptly after
        they are delivered to the Trustee. The Trustee shall have no liability with
        respect to any failure to properly prepare or file such periodic reports
        resulting from or relating to the Trustee’s inability or failure to timely
        obtain any information from any other party.

       

      Prior
        to
        (x) March 10, 2007 and (y) unless and until a Form 15 Suspension Notice shall
        have been filed, prior to March 10 of each year thereafter, each entity that
        is
        indicated in Exhibit P as the responsible party for providing Additional
        Form
        10-K Disclosure shall be required to provide to the Trustee and the Master
        Servicer, to the extent known, the form and substance of any Additional Form
        10-K Disclosure Information, if applicable. The Trustee shall compile the
        information provided to it, prepare the Form 10-K and forward the Form 10-K
        to
        the Master Servicer for verification. The Master Servicer will approve, as
        to
        form and substance, or disapprove, as the case may be, the Form 10-K by no
        later
        than March 25 of the relevant year (or the immediately preceding Business
        Day if
        March 25 is not a Business Day), an officer of the Master Servicer shall
        sign
        the Form 10-K and return an electronic or fax copy of such signed Form 10-K
        (with an original executed hard copy to follow by overnight mail) to the
        Trustee.

       

      The
        Master Servicer shall be responsible for determining the pool concentration
        applicable to any subservicer to which the Master Servicer delegated any
        of its
        responsibilities with respect to the Mortgage Loans at any time, for purposes
        of
        disclosure as required by Items 1117 and 1119 of Regulation AB. The Trustee
        will
        provide electronic or paper copies of all Form 10-D, 8-K and 10-K filings
        free
        of charge to any Certificateholder upon written request. Any expenses incurred
        by the Trustee in connection with the previous sentence shall be reimbursable
        to
        the Trustee out of the Trust Fund.

       

      (b)  The
        Trustee shall sign a certification (in the form attached hereto as
        Exhibit N) for the benefit of the Depositor and its officers, directors and
        Affiliates in respect of items 1 through 3 of the Form 10-K Certification
        (provided, however, that the Trustee shall not undertake an analysis of the
        Attestation Report attached as an exhibit to the Form 10-K). Such certification
        shall be delivered to the Master Servicer by March 20th of each year (or
        if not
        a Business Day, the immediately preceding Business Day). The Form 10-K
        Certification attached hereto as Exhibit M shall be delivered to the
        Trustee by March 25th for filing on or prior to March 30th of each year (or
        if
        not a Business Day, the immediately preceding Business Day).

       

      The
        Trustee shall indemnify the Depositor and its officers and directors from
        and
        against any losses, damages, penalties, fines, forfeitures, reasonable and
        necessary legal fees and related costs, judgments and other costs and expenses
        arising out of or based upon the failure to deliver its Assessment of Compliance
        as required by the last paragraph of Section 3.21; provided,
        however,
        that in
        no event shall the Trustee be liable for any special, consequential, indirect
        or
        punitive damages pursuant to this Section, even if advised of the possibility
        of
        such damages. The Trustee shall have no liability with respect to any failure
        to
        timely file any Form 10-D or Form 10-K resulting from or relating to the
        Trustee’s inability or failure to obtain any information from a party other than
        itself.

      

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

       

      Section
        8.18 Intention
        of the Parties and Interpretation.

       

      Each
        of
        the parties hereto acknowledges and agrees that the purpose of Sections 3.20,
        3.21 and 8.17 of this Agreement is to facilitate compliance by the Sponsor,
        the
        Master Servicer, the Depositor and the Trustee with the provisions of Regulation
        AB, as such may be amended or clarified from time to time. Therefore, each
        of
        the parties agrees that (a) the obligations of the parties hereunder shall
        be
        interpreted in such a manner as to accomplish compliance with Regulation
        AB, (b)
        the parties’ obligations hereunder will be supplemented and modified as
        necessary to be consistent with any such amendments, interpretive advice
        or
        guidance from the Commission, convention or consensus among active participants
        in the asset-backed securities markets, or otherwise in respect of the
        requirements of Regulation AB and (c) the parties shall comply with reasonable
        requests made by the Master Servicer, the Depositor or the Trustee for delivery
        of additional or different information, to the extent such information is
        available or reasonably attainable, as the Master Servicer, the Depositor
        or the
        Trustee may determine in good faith is necessary to comply with the provisions
        of Regulation AB.

       

      

       

      ARTICLE
        IX

      REMIC
        ADMINISTRATION

       

      Section
        9.01 REMIC
        Administration.

       

      (a) The
        Trustee shall make elections to treat the Trust Fund as two REMICs under
        the
        Code and, if necessary, under applicable state law. Each such election will
        be
        made on Form 1066 or other appropriate federal tax or information return
        or any
        appropriate state return for the taxable year ending on the last day of the
        calendar year in which the Certificates are issued. For the purposes of the
        REMIC elections in respect of the Trust Fund, the REMIC I Regular Interests
        shall be designated as the “regular interests” in REMIC I, the Class R-I
        Certificates shall be designated as the sole class of “residual interests” in
        REMIC I, the Regular Certificates shall be designated as the “regular interests”
in REMIC II, and the Class R-II Certificates shall be designated as the sole
        class of “residual interests” in REMIC II. The Master Servicer and the Trustee
        shall not permit the creation of any “interests” (within the meaning of Section
        860G of the Code) in any REMIC other than the Regular Certificates and the
        Class
        R Certificates. Within 30 days after the Closing Date, the Trustee shall
        prepare
        and file with the Internal Revenue Service Form 8811, “Information Return for
        Real Estate Mortgage Investment Conduits (REMIC) and Issuers of Collateralized
        Debt Obligations” for each REMIC.

       

      The
        Trustee will apply for an Employee Identification Number from the IRS via
        form
        SS-4 or any other acceptable method for all tax entities.

       

      (b) The
        Closing Date is hereby designated as the “Startup Day” of each REMIC created
        hereunder within the meaning of Section 860G(a)(9) of the Code.

       

      (c) The
        Trustee shall pay out of its own funds, without any right of reimbursement,
        any
        and all expenses relating to any tax audit of the Trust Fund other than the
        expense of obtaining any tax related Opinion of Counsel except as specified
        herein and except that the Trustee shall be entitled to be reimbursed from
        the
        Collection Account for any professional fees and expenses related to any
        non-routine audits or any administrative or judicial proceedings that do
        not
        result from any breach of its tax duties under this Section 9.01. The Trustee,
        as agent for the Trust Fund’s Tax Matters Person, shall (i) act on behalf of the
        Trust Fund in relation to any tax matter or controversy involving the Trust
        Fund
        and (ii) represent the Trust Fund in any administrative or judicial proceeding
        relating to an examination or audit by any governmental taxing authority
        with
        respect thereto. By their acceptance thereof, the holder of the largest
        Percentage Interest of the Residual Certificates of each REMIC shall be
        designated as the Tax Matters Person (as defined in the REMIC Provisions)
        hereby
        agrees to irrevocably appoint the Trustee or an Affiliate as its agent to
        perform all of the duties of the Tax Matters Person for each REMIC.

       

      (d) The
        Trustee shall prepare, sign and file all of the Tax Returns in respect of
        each
        REMIC created hereunder. The expenses of preparing and filing such returns
        shall
        be borne by the Trustee without any right of reimbursement therefor. The
        Master
        Servicer shall provide on a timely basis to the Trustee or its designee such
        information with respect to the assets of the Trust Fund as is in its possession
        and reasonably required by the Trustee to enable it to perform its obligations
        under this Article IX.

       

      (e) The
        Trustee shall perform on behalf of the Trust Fund all reporting and other
        tax
        compliance duties that are the responsibility of the Trust Fund under the
        Code,
        the REMIC Provisions or other compliance guidance issued by the Internal
        Revenue
        Service or any state or local taxing authority. Among its other duties, as
        required by the Code, the REMIC Provisions or other such compliance guidance,
        the Trustee shall provide (i) to any Transferor of a Residual Certificate,
        at
        such Transferor’s expense, such information as is necessary for the application
        of any tax relating to the transfer of a Residual Certificate to any Person
        who
        is not a Permitted Transferee, (ii) to the Certificateholders such information
        or reports as are required by the Code or the REMIC Provisions including
        reports
        relating to interest, original issue discount and market discount or premium
        and
        (iii) to the Internal Revenue Service the name, title, address and telephone
        number of the person who will serve as the representative of the Trust Fund.
        The
        Master Servicer shall provide on a timely basis to the Trustee such information
        with respect to the assets of the Trust Fund, including, without limitation,
        the
        Mortgage Loans, as is in its possession and reasonably required by the Trustee
        to enable it to perform its obligations under this subsection. In addition,
        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 reasonably
        determines to be relevant for tax purposes as to the valuations and issue
        prices
        of the Certificates, including, without limitation, the price, yield, prepayment
        assumption and projected cash flow of the Certificates.

       

      (f) To
        the
        extent that the affairs of the Trust Fund are within its control and the
        scope
        of its specific responsibilities under this Agreement, the Trustee shall
        take
        such action and shall cause the Trust Fund created hereunder to take such
        action
        as shall be necessary to create or maintain the status thereof as two REMICs
        under the REMIC Provisions (and the Master Servicer shall assist it, to the
        extent reasonably requested by it). The Trustee shall not knowingly take
        any
        action, cause the Trust Fund to take any action or fail to take (or fail
        to
        cause to be taken) any action that, under the REMIC Provisions, if taken
        or not
        taken, as the case may be, could (i) endanger the status of the Trust Fund
        as
        two REMICs or (ii) result in the imposition of a tax upon the Trust Fund
        (including but not limited to the tax on prohibited transactions as defined
        in
        Section 860F(a)(2) of the Code and the tax on contributions to a REMIC set
        forth
        in Section 860G(d) of the Code) (either such event, an “Adverse REMIC Event”)
        unless the Trustee has received an Opinion of Counsel, addressed to the Trustee
        (at the expense of the party seeking to take such action but in no event
        at the
        expense of the Trustee) to the effect that the contemplated action will not,
        with respect to the Trust Fund created hereunder, endanger such status or
        result
        in the imposition of such a tax, nor shall the Master Servicer take or fail
        to
        take any action (whether or not authorized hereunder) as to which the Trustee
        has advised it in writing that it has received an Opinion of Counsel to the
        effect that an Adverse REMIC Event could occur with respect to such action.
        In
        addition, prior to taking any action with respect to the Trust Fund or the
        assets of the Trust Fund, or causing the Trust Fund to take any action, which
        is
        not contemplated under the terms of this Agreement, the Master Servicer will
        consult with counsel with respect to whether such action could cause an Adverse
        REMIC Event to occur with respect to the Trust Fund, and the Master Servicer
        shall not take any such action or cause the Trust Fund to take any such action
        as to which counsel has advised it in writing that an Adverse REMIC Event
        could
        occur. The Trustee may consult with counsel to make such written advice,
        and the
        cost of same shall be borne by the party seeking to take the action not
        permitted by this Agreement, but in no event shall such cost be an expense
        of
        the Trustee.

       

      (g) In
        the
        event that any tax is imposed on “prohibited transactions” of the Trust Fund
        created hereunder as defined in Section 860F(a)(2) of the Code, on the “net
        income from foreclosure property” of either REMIC as defined in Section 860G(c)
        of the Code, on any contributions to the Trust Fund after the Startup Day
        therefor pursuant to Section 860G(d) of the Code, or any other tax is imposed
        by
        the Code or any applicable provisions of state or local tax laws, such tax
        shall
        be charged (i) to the Trustee pursuant to Section 9.03 hereof, if such tax
        arises out of or results from a breach by the Trustee of any of its obligations
        under this Article IX, (ii) to the Master Servicer pursuant to Section 9.03
        hereof, if such tax arises out of or results from a breach by the Master
        Servicer of any of its obligations under Article III or this Article IX,
        or
        otherwise, (iii) to the Master Servicer as provided in Section 3.05 and (iv)
        against amounts on deposit in the Distribution Account and shall be paid
        by
        withdrawal therefrom to the extent not required to be paid by the Master
        Servicer or the Trustee pursuant to another provision of this
        Agreement.

       

      (h) On
        or
        before April 15 of each calendar year, commencing April 15, 2007, the Trustee
        shall deliver to the Master Servicer and the Rating Agency a Certificate
        from a
        Responsible Officer of the Trustee stating (without regard to any action
        taken
        by any party other than the Trustee) the Trustee’s compliance with this Article
        IX.

       

      (i) The
        Trustee shall, for federal income tax purposes, maintain books and records
        with
        respect to the Trust Fund on a calendar year and on an accrual
        basis.

       

      (j) Following
        the Startup Day, the Trustee shall not accept any contributions of assets
        to the
        Trust Fund other than in connection with any Eligible Substitute Mortgage
        Loan
        delivered in accordance with Section 2.03 unless it shall have received an
        Opinion of Counsel (which shall be at the expense of the party requesting
        to
        make such contribution and not at the expense of the Trustee) to the effect
        that
        the inclusion of such assets in the Trust Fund will not cause the Trust Fund
        to
        fail to qualify as two REMICs at any time that any Certificates are outstanding
        or subject the Trust Fund to any tax under the REMIC Provisions or other
        applicable provisions of federal, state and local law or
        ordinances.

       

      (k) Neither
        the Trustee nor the Master Servicer shall enter into any arrangement by which
        the Trust Fund will receive a fee or other compensation for services nor
        knowingly permit the Trust Fund to receive any income from assets other than
        “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
        investments” as defined in Section 860G(a)(5) of the Code.

       

      Section
        9.02 Prohibited
        Transactions and Activities.

       

      None
        of
        the Depositor, the Master Servicer or the Trustee shall sell, dispose of
        or
        substitute for any of the Mortgage Loans (except in connection with (i) the
        foreclosure of a Mortgage Loan, including but not limited to, the acquisition
        or
        sale of a Mortgaged Property acquired by deed in lieu of foreclosure, (ii)
        the
        bankruptcy of the Trust Fund, (iii) the termination of the Trust Fund pursuant
        to Article X of this Agreement, (iv) a substitution pursuant to Article II
        of
        this Agreement or (v) a purchase of Mortgage Loans pursuant to Article II
        or III
        of this Agreement), nor acquire any assets for the Trust Fund (other than
        REO
        Property acquired in respect of a defaulted Mortgage Loan), nor sell or dispose
        of any investments in the Custodial Account or the Distribution Account for
        gain, nor accept any contributions to the Trust Fund after the Closing Date
        (other than an Eligible Substitute Mortgage Loan delivered in accordance
        with
        Section 2.03), unless it has received an Opinion of Counsel, addressed to
        the
        Trustee (at the expense of the party seeking to cause such sale, disposition,
        substitution, acquisition or contribution but in no event at the expense
        of the
        Trustee) that such sale, disposition, substitution, acquisition or contribution
        will not (a) affect adversely the status of the Trust Fund as two REMICs
        or (b)
        cause the Trust Fund to be subject to a tax on “prohibited transactions” or
“contributions” pursuant to the REMIC Provisions.

       

      Section
        9.03 Master
        Servicer and Trustee Indemnification.

       

      (a) The
        Trustee agrees to indemnify the Trust Fund, the Depositor, and the Master
        Servicer for any taxes and costs including, without limitation, any reasonable
        attorneys fees imposed on or incurred by the Trust Fund, the Depositor or
        the
        Master Servicer, as a result of a breach of the Trustee’s covenants set forth in
        this Article IX, subject, however, to the provision of Sections 8.01 and
        8.02 of
        this Agreement.

       

      (b) The
        Master Servicer agrees to indemnify the Trust Fund, the Depositor and the
        Trustee for any taxes and costs including, without limitation, any reasonable
        attorneys’ fees imposed on or incurred by the Trust Fund, the Depositor or the
        Trustee, as a result of a breach of the Master Servicer’s covenants set forth in
        Article III or this Article IX.

       

      

       

      ARTICLE
        X

      TERMINATION

       

      Section
        10.01 Termination.

       

      (a) The
        respective obligations and responsibilities of the Master Servicer, the
        Depositor and the Trustee created hereby (other than the obligation of the
        Trustee to make certain payments to Certificateholders after the final
        Distribution Date and the obligation of the Master Servicer to send certain
        notices as hereinafter set forth) shall terminate upon notice to the Trustee
        upon the earliest of (i) the Distribution Date on which the Certificate
        Principal Balance of each Class of Certificates has been reduced to zero,
        (ii)
        the final payment or other liquidation of the last Mortgage Loan in the Trust,
        and (iii) the optional purchase by the Master Servicer of the Mortgage Loans
        as
        described below. Notwithstanding the foregoing, in no event shall the trust
        created hereby continue beyond the earlier of (i) December 18, 2036 and (ii)
        the
        expiration of 21 years from the death of the last survivor of the descendants
        of
        Joseph P. Kennedy, the late ambassador of the United States to the Court
        of St.
        James’s, living on the date hereof.

       

      The
        Master Servicer may, at its option, terminate this Agreement on any date
        on
        which the Loan Balance is less than 10% of the aggregate Stated Principal
        Balance of the Mortgage Loans as of the Cut-off Date or by purchasing, on
        the
        next succeeding Distribution Date, all of the outstanding Mortgage Loans
        and REO
        Properties at a price equal to the sum of the outstanding Stated Principal
        Balance of the Mortgage Loans (or the fair market value of the related
        underlying Mortgaged Property with respect to any REO Properties, if such
        fair
        market value is less than such outstanding Stated Principal Balance) and
        accrued
        and unpaid interest thereon at the weighted average of the Loan Rates through
        the end of the Due Period preceding the final Distribution Date plus
        unreimbursed Servicing Advances, Advances and any unpaid Servicing Fees
        allocable to such Mortgage Loans and REO Properties (the “Termination Price”).
        The Termination Price paid by the Master Servicer shall also include any
        amounts
        owed by PHH Mortgage pursuant to the last paragraph of Section 3.2(a) of
        the
        Mortgage Loan Purchase Agreement in respect of any liability, penalty or
        expense
        that resulted from a breach of the representation and warranty set forth
        in
        clause (xlvi) of such Section, that remain unpaid on the date of such
        purchase.

       

      In
        connection with any such purchase pursuant to the preceding paragraph, the
        Master Servicer shall deposit in the Distribution Account all amounts then
        on
        deposit in the Collection Account (less amounts permitted to be withdrawn
        by the
        Master Servicer pursuant to Section 3.10), which deposit shall be deemed
        to have
        occurred immediately preceding such purchase.

       

      Any
        such
        purchase shall be accomplished by deposit into the Distribution Account on
        the
        Determination Date before such Distribution Date of the Termination Price
        and
        the delivery of an opinion of counsel that such termination is a “qualified
        liquidation” under Section 860F of the Code.

       

      (b) Notice
        of
        any termination, specifying the Distribution Date (which shall be a date
        that
        would otherwise be a Distribution Date) upon which the Certificateholders
        may
        surrender their Certificates to the Trustee for payment of the final
        distribution and cancellation, shall be given promptly by the Trustee upon
        the
        Trustee receiving notice of such date from the Master Servicer, by letter
        to the
        Certificateholders mailed not earlier than the 15th day and not later than
        the
        25th day of the month next preceding the month of such final distribution
        specifying (1) the Distribution Date upon which final distribution of the
        Certificates will be made upon presentation and surrender of such Certificates
        at the office or agency of the Trustee therein designated, (2) the amount
        of any
        such final distribution and (3) that the Record Date otherwise applicable
        to
        such Distribution Date is not applicable, distributions being made only upon
        presentation and surrender of the Certificates at the office or agency of
        the
        Trustee therein specified.

       

      (c) Upon
        presentation and surrender of the Certificates, the Trustee shall cause to
        be
        distributed to the Holder of the Certificates on the Distribution Date for
        such
        final distribution, in proportion to the Percentage Interests of their
        respective Class and to the extent that funds are available for such purpose,
        an
        amount equal to the amount required to be distributed to such Holders in
        accordance with the provisions of Section 4.01 for such Distribution
        Date.

       

      (d) In
        the
        event that all Certificateholders shall not surrender their Certificates
        for
        final payment and cancellation on or before such final Distribution Date,
        the
        Trustee shall promptly following such date cause all funds in the Distribution
        Account not distributed in final distribution to Certificateholders to be
        withdrawn therefrom and credited to the remaining Certificateholders by
        depositing such funds in a separate servicing account for the benefit of
        such
        Certificateholders, and the Master Servicer (if the Master Servicer has
        exercised its right to purchase the Mortgage Loans) or the Trustee (in any
        other
        case) shall give a second written notice to the remaining Certificateholders,
        to
        surrender their Certificates for cancellation and receive the final distribution
        with respect thereto. If within nine months after the second notice all the
        Certificates shall not have been surrendered for cancellation, the Class
        R
        Certificateholders shall be entitled to all unclaimed funds and other assets
        which remain subject hereto, and the Trustee upon transfer of such funds
        shall
        be discharged of any responsibility for such funds, and the Certificateholders
        shall look to the Class R Certificateholders for payment.

       

      Section
        10.02 Additional
        Termination Requirements.

       

      (a) In
        the
        event that the Master Servicer exercises its purchase option as provided
        in
        Section 10.01, the Trust Fund shall be terminated in accordance with the
        following additional requirements, unless the Trustee shall have been furnished
        with an Opinion of Counsel to the effect that the failure of the Trust to
        comply
        with the requirements of this Section will not (i) result in the imposition
        of
        taxes on “prohibited transactions” of the Trust as defined in Section 860F of
        the Code or (ii) cause the Trust Fund constituting part of the Trust Fund
        to
        fail to qualify as two REMICs at any time that any Certificates are
        outstanding:

       

      (i) Within
        90
        days prior to the final Distribution Date, the Trustee shall adopt and sign
        a
        plan of complete liquidation of the Trust Fund meeting the requirements of
        a
“qualified liquidation” under Section 860F of the Code and any regulations
        thereunder;

       

      (ii) At
        or
        after the time of adoption of such a plan of complete liquidation and at
        or
        prior to the final Distribution Date, the Trustee shall sell all of the assets
        of the Trust to the Master Servicer for cash pursuant to the terms of the
        plan
        of complete liquidation; and

       

      (iii) At
        the
        time of the making of the final payment on the Certificates, the Trustee
        shall
        distribute or credit, or cause to be distributed or credited (A) to the Holders
        of each of the Class A Certificates and Class B Certificates, an amount equal
        to
        the sum of the related Certificate Principal Balance and one month’s interest
        thereon at the applicable Pass-Through Rate, (B) to the Holder of the Class
        A-5
        Certificates one month’s interest on the Notional Amount thereof at the
        applicable Pass-Through Rate, and (C) to the Class R Certificateholders,
        all
        cash on hand after such payment to the Class A Certificateholders and Class
        B
        Certificateholders (other than cash retained to meet claims) and the Trust
        shall
        terminate at such time.

       

      (b) By
        their
        acceptance of Certificates, the Holder thereof hereby agree to appoint the
        Trustee as their attorney in fact to: (i) adopt such a plan of complete
        liquidation (and the Certificateholders hereby appoint the Trustee as their
        attorney in fact to sign such plan) as appropriate and (ii) to take such
        other
        action in connection therewith as may be reasonably required to carry out
        such
        plan of complete liquidation all in accordance with the terms
        hereof.

       

      

       

      ARTICLE
        XI

      [RESERVED]

       

       

      
 

      ARTICLE
        XII

      MISCELLANEOUS
        PROVISIONS

       

      Section
        12.01 Amendment.

       

      This
        Agreement may be amended from time to time by the Depositor, the Master Servicer
        and the Trustee; and without the consent of the Certificateholders, (i) to
        cure
        any ambiguity, (ii) to correct or supplement any provisions herein which
        may be
        defective or inconsistent with any other provisions herein or (iii) to make
        any
        other provisions with respect to matters or questions arising under this
        Agreement, which shall not be inconsistent with the provisions of this
        Agreement; provided, however, that any such action listed in clause (i) through
        (iii) above shall not adversely affect in any respect the interests of any
        Certificateholder, as evidenced by (i) notice in writing to the Depositor,
        the
        Master Servicer and the Trustee from the Rating Agency that such action will
        not
        result in the reduction or withdrawal of the rating of any outstanding Class
        of
        Certificates with respect to which it is a Rating Agency, or (ii) an Opinion
        of
        Counsel delivered to the Master Servicer and the Trustee.

       

      In
        addition, this Agreement may be amended from time to time by the Depositor,
        the
        Master Servicer and the Trustee, with the consent of the Majority
        Certificateholders for the purpose of adding any provisions to or changing
        in
        any manner or eliminating any of the provisions of this Agreement or of
        modifying in any manner the rights of the Holders of Certificates; provided,
        however, that no such amendment or waiver shall (x) reduce in any manner
        the
        amount of, or delay the timing of, payments on the Certificates which are
        required to be made on any Certificate without the consent of the Holder
        of such
        Certificate, (y) adversely affect in any material respect the interests of
        the
        Holders of any Class of Certificates in a manner other than as described
        in
        clause (x) above, without the consent of the Holders of Certificates of such
        Class evidencing at least a 66% Percentage Interest in such Class, or (z)
        reduce
        the percentage of Voting Rights required by clause (y) above without the
        consent
        of the Holders of all Certificates of such Class then outstanding. Upon approval
        of an amendment, a copy of such amendment shall be sent to the Rating Agency.
        Prior to the execution of any amendment to this Agreement, the Trustee shall
        be
        entitled to receive and rely upon an Opinion of Counsel (at the expense of
        the
        Person seeking such amendment) stating that the execution of such amendment
        is
        authorized or permitted by this Agreement. The Trustee may, but shall not
        be
        obligated to, enter into any such amendment which affects the Trustee’s own
        rights, duties or immunities under this Agreement.

       

      Notwithstanding
        any provision of this Agreement to the contrary, the Trustee shall not consent
        to any amendment to this Agreement unless it shall have first received an
        Opinion of Counsel, delivered by (and at the expense of) the Person seeking
        such
        Amendment, to the effect that such amendment will not result in the imposition
        of a federal tax on the Trust Fund pursuant to the REMIC Provisions or cause
        the
        Trust Fund constituting part of the Trust to fail to qualify as two REMICs
        at
        any time that any Certificates are outstanding and that the amendment is
        being
        made in accordance with the terms hereof.

       

      Promptly
        after the execution of any such amendment the Trustee shall furnish, at the
        expense of the Person that requested the amendment if such Person is the
        Master
        Servicer (but in no event at the expense of the Trustee), otherwise at the
        expense of the Trust, a copy of such amendment and the Opinion of Counsel
        referred to in the immediately preceding paragraph to the Master Servicer
        and
        the Rating Agency.

       

      It
        shall
        not be necessary for the consent of Certificateholders under this Section
        11.01
        to approve the particular form of any proposed amendment; instead it shall
        be
        sufficient if such consent shall approve the substance thereof. The manner
        of
        obtaining such consents and of evidencing the authorization of the execution
        thereof by Certificateholders shall be subject to such reasonable regulations
        as
        the Trustee may prescribe.

       

      The
        Trustee may, but shall not be obligated to, enter into any amendment pursuant
        to
        this 11.01 Section that affects its rights, duties and immunities under this
        Agreement or otherwise.

       

      Section
        12.02 Recordation
        of Agreement: Counterparts.

       

      To
        the
        extent permitted by applicable law, this Agreement is subject to recordation
        in
        all appropriate public offices for real property records in all the counties
        or
        other comparable jurisdictions in which any or all of the properties subject
        to
        the Mortgages are situated, and in any other appropriate public recording
        office
        or elsewhere, such recordation to be effected by the Master Servicer at the
        expense of the Trust, but only upon direction of Certificateholders, accompanied
        by an Opinion of Counsel to the effect that such recordation materially and
        beneficially affects the interests of the Certificateholders.

       

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

       

      Section
        12.03 Limitation
        on Rights of Certificateholders.

       

      The
        death
        or incapacity of any Certificateholder shall not (i) operate to terminate
        this
        Agreement or the Trust, (ii) entitle such Certificateholder’s legal
        representatives or hens to claim an accounting or to take any action or
        proceeding in any court for a partition or winding up of the Trust, or (iii)
        otherwise affect the rights, obligations and liabilities of the parties hereto
        or any of them.

       

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

       

      No
        Certificateholder shall have any right by virtue of any provision of this
        Agreement to institute any suit, action or proceeding in equity or at law
        upon
        or under or with respect to this Agreement, unless such Holder previously
        shall
        have given to the Trustee a written notice of default and of the continuance
        thereof, as hereinbefore provided, and unless also the Holders of Certificates
        entitled to at least 25% of the Voting Rights shall have made written request
        upon the Trustee to institute such action, suit or proceeding in its own
        name as
        Trustee hereunder and shall have offered to the Trustee such reasonable
        indemnity as it may require against the costs, expenses and liabilities to
        be
        incurred therein or thereby, and the Trustee for 15 days after its receipt
        of
        such notice, request and offer of indemnity, shall have neglected or refused
        to
        institute any such action, suit or proceeding. It is understood and intended,
        and expressly covenanted by each Certificateholder with every other
        Certificateholder and the Trustee, that no one or more Holders of Certificates
        shall have any right in any manner whatever by virtue of any provision of
        this
        Agreement to affect, disturb or prejudice the rights of the Holders of any
        other
        of such Certificates, or to obtain or seek to obtain priority over or preference
        to any other such Holder, which priority or preference is not otherwise provided
        for herein, or to enforce any right under this Agreement, except in the manner
        herein provided and for the equal, ratable and common benefit of all
        Certificateholders. For the protection and enforcement of the provisions
        of this
        Section 11.03 each and every Certificateholder and the Trustee shall be entitled
        to such relief as can be given either at law or in equity.

       

      Section
        12.04 Governing
        Law: Jurisdiction.

       

      This
        Agreement shall be construed in accordance with the laws of the State of
        New
        York, and the obligations, rights and remedies of the parties hereunder shall
        be
        determined in accordance with such laws. With respect to any claim arising
        out
        of this Agreement, each party irrevocably submits to the exclusive jurisdiction
        of the courts of the State of New York and the United States District Court
        located in the Borough of Manhattan in The City of New York, and each party
        irrevocably waives any objection which it may have at any time to the laying
        of
        venue of any suit, action or proceeding arising out of or relating hereto
        brought in any such courts, irrevocably waives any claim that any such suit,
        action or proceeding brought in any such court has been brought in any
        inconvenient forum and further irrevocably waives the light to object, with
        respect to such claim, suit, action or proceeding brought in any such court,
        that such court does not have jurisdiction over such party, provided that
        service of process has been made by any lawful means.

       

      Section
        12.05 Notices.

       

      All
        directions, demands and notices hereunder shall be in writing and shall be
        deemed to have been duly given if personally delivered at or mailed by first
        class mail, postage prepaid, or by express delivery service, to (a) in the
        case
        of the Sellers: (i) PHH Mortgage Corporation, 3000 Leadenhall Road, Mt. Laurel,
        New Jersey 08054 or (ii) Bishop’s Gate Residential Mortgage Trust, c/o PHH
        Mortgage Corporation, 3000 Leadenhall Road, Mt. Laurel, New Jersey 08054,
        or
        such other address or telecopy number as may be furnished to the Master Servicer
        and the Trustee in writing by either Seller; (b) in the case of the Trustee:
        Citibank, N.A., 388 Greenwich Street, 14th
        Floor,
        New York, New York 10013, Attention: PHHMC Series 2006-4, or such other address
        as may hereafter be furnished to the Depositor, the Sellers and the Master
        Servicer in writing by the Trustee; (c) in the case of the Depositor: PHH
        Mortgage Capital LLC, 3000 Leadenhall Road, Mail Stop LGL, Mt. Laurel, New
        Jersey 08054, Attention: General Counsel, or such other address or telecopy
        number as may be furnished to the Sellers, the Master Servicer and the Trustee
        in writing by the Depositor; (d) in the case of the Master Servicer: PHH
        Mortgage Corporation, 3000 Leadenhall Road, Mail Stop LGL, Mt. Laurel, New
        Jersey 08054, or such other address as maybe furnished to the Sellers, the
        Depositor and the Trustee in writing by the Master Servicer; and (e) in the
        case
        of Fitch, Fitch Ratings, One State Street Plaza, New York, New York 10004.
        Any
        notice required or permitted to be mailed to a Certificateholder shall be
        given
        by first class mail, postage prepaid, at the address of such Holder as shown
        in
        the Certificate Register. Notice of any Master Servicer Default shall be
        given
        by telecopy and by certified mail. Any notice so mailed within the time
        prescribed in this Agreement shall be conclusively presumed to have duly
        been
        given when mailed, whether or not the Certificateholder receives such notice.
        A
        copy of any notice required to be telecopied hereunder shall also be mailed
        to
        the appropriate party in the manner set forth above.

       

      Section
        12.06 Severability
        of Provisions.

       

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

       

      Section
        12.07 Article
        and Section References.

       

      All
        article and section references used in this Agreement, unless otherwise
        provided, are to articles and sections in this Agreement.

       

      Section
        12.08 Notice
        to
        the Rating Agency.

       

      (a) Each
        of
        the Trustee and the Master Servicer shall be obligated to use its best
        reasonable efforts promptly to provide notice to the Rating Agency with respect
        to each of the following of which a Responsible Officer of the Trustee or
        Master
        Servicer, as the case may be, has actual knowledge:

       

      (i) any
        material change or amendment to this Agreement;

       

      (ii) the
        occurrence of any Master Servicer Event of Termination that has not been
        cured
        or waived;

       

      (iii) the
        resignation or termination of the Master Servicer or the Trustee;

       

      (iv) the
        final
        payment to Holders of the Certificates of any Class;

       

      (v) any
        change in the location of any Account; and

       

      (vi) if
        the
        Trustee is acting as successor master servicer pursuant to Section 7.02 hereof,
        any event that would result in the inability of the Trustee to make
        Advances.

       

      (b) In
        addition, (i) the Trustee shall promptly furnish to the Rating Agency copies
        of
        each Statement to Certificateholders described in Section 4.06 hereof;
        and

       

      (i) the
        Master Servicer shall promptly furnish to the Rating Agency copies of the
        following:

       

      (A) each
        annual statement as to compliance described in Section 3.19 hereof;

       

      (B) each
        annual independent public accountants’ servicing report described in Section
        3.20 hereof; and

       

      (C) each
        notice delivered pursuant to Section 7.01 (a) hereof which relates to the
        fact
        that the Master Servicer has not made an Advance.

       

      Any
        such
        notice pursuant to this Section 11.08 shall be in writing and shall be deemed
        to
        have been duly given if personally delivered or mailed by first class mail,
        postage prepaid, or by express delivery service to Fitch Ratings, One State
        Street Plaza, New York, New York 10004.

       

      Section
        12.09 Further
        Assurances.

       

      Notwithstanding
        any other provision of this Agreement, neither the Regular Certificateholders
        nor the Trustee shall have any obligation to consent to any amendment or
        modification of this Agreement unless they have been provided reasonable
        security or indemnity against their out-of-pocket expenses (including reasonable
        attorneys’ fees) to be incurred in connection therewith.

       

      Section
        12.10 Benefits
        of Agreement.

       

      Nothing
        in this Agreement or in the Certificates, expressed or implied, shall give
        to
        any Person, other than the Certificateholders and the parties hereto and
        their
        successors hereunder, any benefit or any legal or equitable right, remedy
        or
        claim under this Agreement.

       

      Section
        12.11 Acts
        of
        Certificateholders.

       

      (a) Any
        request, demand, authorization, direction, notice, consent, waiver or other
        action provided by this Agreement to be given or taken by the Certificateholders
        may be embodied in and evidenced by one or more instruments of substantially
        similar tenor signed by such Certificateholders in person or by agent duly
        appointed in writing; and such action shall become effective when such
        instrument or instruments are delivered to the Trustee and the Master Servicer.
        Such instrument or instruments (and the action embodied therein and evidenced
        thereby) are herein sometimes referred to as the “act” of the Certificateholders
        signing such instrument or instruments. Proof of execution of any such
        instrument or of a writing appointing any such agent shall be sufficient
        for any
        purpose of this Agreement and conclusive in favor of the Trustee and the
        Trust,
        if made in the manner provided in this Section 12.11.

       

      (b) The
        fact
        and date of the execution by any Person of any such instrument or writing
        may be
        proved by the affidavit of a witness of such execution or by the certificate
        of
        a notary public or other officer authorized by law to take acknowledgments
        of
        deeds, certifying that the individual signing such instrument or writing
        acknowledged to him the execution thereof. Whenever such execution is by
        a
        signer acting in a capacity other than his or her individual capacity, such
        certificate or affidavit shall also constitute sufficient proof of his
        authority.

       

      (c) Any
        request, demand, authorization, direction, notice, consent, waiver or other
        action by any Certificateholder shall bind every future Holder of such
        Certificate and the Holder of every Certificate issued upon the registration
        of
        transfer thereof or in exchange therefor or in lieu thereof, in respect of
        anything done, omitted or suffered to be done by the Trustee or the Trust
        in
        reliance thereon, whether or not notation of such action is made upon such
        Certificate.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

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

       

      
        	 	 	 	 	 	 	 	
                PHH
                  MORTGAGE CAPITAL LLC, as Depositor

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	/s/
Richard
                J.
                Bradfield 
	 	 	 	 	 	 	 	 	
                Name: Richard
                  J. Bradfield

              
	 	 	 	 	 	 	 	 	
                Title: Senior
                  Vice President

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                PHH
                  MORTGAGE CORPORATION, as Master Servicer

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	/s/
Richard
                J. Bradfield
	 	 	 	 	 	 	 	 	
                Name: Richard
                  J. Bradfield

              
	 	 	 	 	 	 	 	 	
                Title: Senior
                  Vice President

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                CITIBANK
                  N.A., as Trustee

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	/s/
Kristen
                Driscoll 
	 	 	 	 	 	 	 	 	
                Name: Kristen
                  Driscoll

              
	 	 	 	 	 	 	 	 	
                Title: Vice
                  President

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                STATE
                  OF NEW JERSEY

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF BURLINGTON

              	
                )

              	 

      

      

      On
        the
        __th
        day of
        ______________ before me, a notary public in and for said State, personally
        appeared Richard J. Bradfield known to me to be a Senior Vice President of
        PHH
        Mortgage Capital LLC, a Delaware limited liability company that executed
        the
        within instrument, and also known to me to be the person who executed it
        on
        behalf of said limited liability company, and acknowledged to me that such
        limited liability company executed the within instrument.

       

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

       

      

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      
        	
                STATE
                  OF NEW JERSEY

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF BURLINGTON

              	
                )

              	 

      

      

       

      On
        the
        __th
        day of
        ______________ before me, a notary public in and for said State, personally
        appeared Richard J. Bradfield known to me to be a Senior Vice President of
        PHH
        Mortgage Corporation, a New Jersey corporation, that executed the within
        instrument, and also known to me to be the person who executed it on behalf
        of
        said limited liability company, and acknowledged to me that such limited
        liability company executed the within instrument.

       

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

       

      

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      

       

      On
        the
        __th
        day of
        ______________ before me, a notary public in and for said State, personally
        appeared ______________ known to me to be a Vice President of ______________,
        a
        corporation that executed the within instrument, and also known to me to
        be the
        person who executed it on behalf of said limited liability company, and
        acknowledged to me that such limited liability company executed the within
        instrument.

       

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

       

      

       

      
        	 	 
	 	
                Notary
                  Public

              

      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    EXHIBIT
      A

     

    FORM
      OF
      CLASS A 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
      (THE “CODE”).

     

    UNLESS
      THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
      TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO 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.

     

    [[FOR
      CLASS A-3, CLASS A-8 AND CLASS A-9 CERTIFICATES ONLY:] NO TRANSFER OF THIS
      CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH
      A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
      AMENDED (“ERISA”), OR THE CODE WILL BE REGISTERED EXCEPT IN ACCORDANCE WITH
      SECTION 5.02(E) OF THE AGREEMENT.]

     

    [[FOR
      CLASS A-3, CLASS A-8 AND CLASS A-9 CERTIFICATES ONLY:] NOTWITHSTANDING THE
      PREVIOUS PARAGRAPH, A CERTIFICATION WILL NOT BE REQUIRED WITH RESPECT TO THE
      TRANSFER OF THIS CERTIFICATE TO A DEPOSITORY, OR FOR ANY SUBSEQUENT TRANSFER
      OF
      THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS A BOOK-ENTRY CERTIFICATE.
      ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE REPRESENTED BY VIRTUE
      OF ITS PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST HEREIN) THAT SUCH
      TRANSFEREE IS EITHER (I) NOT A PLAN INVESTOR OR (II) AN “ACCREDITED INVESTOR”
WITHIN THE MEANING OF RULE 501(A) PROMULGATED PURSUANT TO THE 1933
      ACT.]

     

    [[FOR
      CLASS A-3, CLASS A-8 AND CLASS A-9 CERTIFICATES ONLY:] THIS CERTIFICATE HAS
      NOT
      BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS
      IT
      IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN
      TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER
      APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF
      SECTION 5.02(D) OF THE AGREEMENT.]

     

    [[FOR
      CLASS A-3, CLASS A-8 AND CLASS A-9 CERTIFICATES ONLY:] NOTWITHSTANDING THE
      PREVIOUS PARAGRAPH, A CERTIFICATION WILL NOT BE REQUIRED WITH RESPECT TO THE
      TRANSFER OF THIS CERTIFICATE TO A DEPOSITORY, OR FOR ANY SUBSEQUENT TRANSFER
      OF
      THIS CERTIFICATE FOR SO LONG AS THIS CERTIFICATE IS A BOOK-ENTRY CERTIFICATE.
      ANY TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO HAVE REPRESENTED BY VIRTUE
      OF ITS PURCHASE OR HOLDING OF THIS CERTIFICATE (OR INTEREST HEREIN) THAT SUCH
      TRANSFEREE IS A “QUALIFIED INSTITUTIONAL BUYER” WITHIN THE MEANING OF RULE 144A
      UNDER THE 1933 ACT.]

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              PHHMC
                Mortgage Pass-Through

              Certificates,
                Series 2006-4, Class A-__

              Pass-Through
                Rate:

              [Variable][__%
                per annum]

            	
              [Aggregate
                Certificate Principal

              Balance][Aggregate
                Notional Amount] of Class A-__ Certificates as of the Issue Date:
                $______________

            
	
               

              Date
                of Agreement and Cut-off Date:

              November
                1, 2006 

            	
              [Denomination][Notional
                Amount]:

              $______________

            
	 	
              Master
                Servicer:

              PHH
                Mortgage Corporation

            
	
              First
                Distribution Date: December 18, 2006

            	
              Trustee:
                Citibank, N.A.

            
	 	
              Issue
                Date: November 29, 2006

            
	
              No.
                _

            	
              CUSIP:
                ___________

            

    

    

    DISTRIBUTIONS
      IN REDUCTION OF THE [CERTIFICATE PRINCIPAL BALANCE][NOTIONAL AMOUNT] OF THIS
      CERTIFICATE MAY BE MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING [CERTIFICATE PRINCIPAL BALANCE] [NOTIONAL AMOUNT] HEREOF AT ANY
      TIME
      MAY BE LESS THAN THE AMOUNT SHOWN ABOVE AS THE DENOMINATION OF THIS
      CERTIFICATE.]

     

    MORTGAGE
      PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional, one- to four-family, fixed-rate, first
      lien
      mortgage loans (the “Mortgage Loans”) formed and sold by

     

    PHH
      MORTGAGE CAPITAL LLC

     

    PHHMC
      MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-4

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN PHH MORTGAGE
      CAPITAL LLC, THE MASTER SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE
      AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE
      GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

     

    This
      certifies that __________ is the registered owner of a Percentage Interest
      (obtained by dividing the [denomination][Notional Amount] of this Certificate
      by
      the aggregate [Certificate Principal Balance][Notional Amount] of the Class
      A-_
      Certificates as of the Issue Date) in that certain beneficial ownership interest
      evidenced by all the Class A-_ Certificates in the Trust Fund created pursuant
      to a Pooling and Servicing Agreement, dated as specified above (the
“Agreement”), among PHH Mortgage Capital LLC (hereinafter called the
“Depositor,” which term includes any successor entity under the Agreement), the
      Master Servicer and the Trustee, a summary of certain of the pertinent
      provisions of which is set forth hereafter. To the extent not defined herein,
      the capitalized terms used herein have the meanings assigned in the Agreement.
      This Certificate is issued under and is subject to the terms, provisions and
      conditions of the Agreement, to which Agreement the Holder of this Certificate
      by virtue of the acceptance hereof assents and by which such Holder is
      bound.

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 18th day of
      each month or, if such 18th day is not a Business Day, the Business Day
      immediately following (a “Distribution Date”), commencing on the First
      Distribution Date specified above, to the Person in whose name this Certificate
      is registered on the Record Date, in an amount equal to the product of the
      Percentage Interest evidenced by this Certificate and the amount required to
      be
      distributed to the Holders of Class A-_ Certificates on such Distribution Date
      pursuant to the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by or on behalf of the Trustee by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Trustee in writing at least five Business
      Days prior to the Record Date immediately prior to such Distribution Date and
      is
      the registered owner of Class A-_ Certificates, the aggregate initial
      [Certificate Principal Balance][Notional Amount] of which is in excess of the
      lesser of (i) $5,000,000 or (ii) two-thirds of the aggregate initial
      [Certificate Principal Balance][Notional Amount] of the Class A-_ Certificates,
      or otherwise by check mailed by first class mail to the address of the Person
      entitled thereto, as such name and address shall appear on the Certificate
      Register. Notwithstanding the above, the final distribution on this Certificate
      will be made after due notice by the Trustee of the pendency of such
      distribution and only upon the presentation and surrender of this Certificate
      at
      the office or agency appointed by the Trustee for that purpose as provided
      in
      the Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Mortgage Pass-Through Certificates of the Series specified on the face hereof
      (hereinafter called the “Certificates”) and representing a Percentage Interest
      in the Class of Certificates specified on the face hereof equal to the
      [denomination][Notional Amount] specified on the face hereof divided by the
      aggregate [Certificate Principal Balance][Notional Amount] of the Class of
      Certificates specified on the face hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the related Mortgage Loans, all as more specifically
      set
      forth herein and in the Agreement. As provided in the Agreement, withdrawals
      from the Collection Account and the Distribution Account may be made from time
      to time for purposes other than distributions to Holders of the Certificates,
      such purposes including reimbursement of advances made, or certain expenses
      incurred, with respect to the Mortgage Loans.

     

    The
      Agreement permits, with certain exceptions and conditions provided therein,
      the
      amendment thereof and the modification of the rights and obligations of the
      Depositor, the Master Servicer and the Trustee and the rights of the Holders
      of
      the Certificates under the Agreement at any time by the Depositor, the Master
      Servicer and the Trustee, with the consent of the Holders of Certificates
      entitled to at least 66%, in some cases 100%, of the Voting Rights. Any such
      consent by the Holder of this Certificate shall be conclusive and binding on
      such Holder and upon all future Holders of this Certificate and of any
      Certificate issued upon the transfer hereof or in exchange herefor or in lieu
      hereof whether or not notation of such consent is made upon this Certificate.
      The Agreement also permits the amendment thereof, in certain limited
      circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations set forth therein,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Trustee as provided in the Agreement, duly endorsed
      by, or accompanied by an assignment in the form below or other written
      instrument of transfer in form satisfactory to the 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 evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

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

     

    [[For
      Class A-3, Class A-8 and Class A-9 Certificates Only:]
      No
      transfer of this Certificate shall be made unless the transfer is made pursuant
      to an effective registration statement under the Securities Act of 1933, as
      amended (the “1933 Act”), and an effective registration or qualification under
      applicable state securities laws, or is made in a transaction that does not
      require such registration or qualification. In the event that such a transfer
      of
      this Certificate is to be made without registration or qualification, (i) if
      such transfer is made in reliance upon Rule 144A under the 1933 Act, the Trustee
      shall require the transferor to execute a transferor certificate in
      substantially the same form attached to the Agreement as Exhibit F-2 and the
      transferee to execute an investment letter in substantially the form attached
      to
      the Agreement as Exhibit F-1 or (ii) (A) the Trustee shall require the
      transferor to execute a transferor certificate (in substantially the form
      attached to the Agreement as Exhibit F-2) and the transferee to execute an
      investment letter (in substantially the form attached to the Agreement as
      Exhibit F-3) acceptable to and in form and substance reasonably satisfactory
      to
      the Depositor and the Trustee certifying to the Depositor and the Trustee the
      facts surrounding such transfer, which investment letter shall not be an expense
      of the Trustee or the Depositor and (B) the Trustee and the Depositor shall
      require a written Opinion of Counsel (which may be in-house counsel) acceptable
      to and in form and substance reasonably satisfactory to the Trustee and the
      Depositor that such transfer may be made pursuant to an exemption, describing
      the applicable exemption and the basis therefor, from the 1933 Act or is being
      made pursuant to the 1933 Act, which Opinion of Counsel shall not be an expense
      of the Trustee or the Depositor. None of the Depositor, the Certificate
      Registrar or the Trustee is obligated to register or qualify the Class of
      Certificates specified on the face hereof under the 1933 Act or any other
      securities law or to take any action not otherwise required under the Agreement
      to permit the transfer of such Certificates without registration or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Certificate
      Registrar 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.]

     

    [[For
      Class A-3, Class A-8 and Class A-9 Certificates Only:] No transfer of this
      Certificate to a Plan subject to ERISA or Section 4975 of the Code, any Person
      acting, directly or indirectly, on behalf of any such Plan or any person using
      Plan Assets to acquire this Certificate shall be made except in accordance
      with
      Section 5.02(e) of the Agreement.]

     

    [[For
      Class A-3, Class A-8 and Class A-9 Certificates Only:] Notwithstanding the
      foregoing, the certifications described in the previous two paragraphs will
      not
      be required with respect to the transfer of this Certificate to a Depository,
      or
      for any subsequent transfer of this Certificate for so long as this Certificate
      is a Book-Entry Certificate. Any Transferee of this Certificate will be deemed
      to have represented by virtue of its purchase or holding of this Certificate
      (or
      interest herein) that (i) either (a) such Transferee is not a Plan Investor
      or
      (b) such Transferee is an “accredited investor” within the meaning of Rule
      501(a) promulgated pursuant to the 1933 Act and (ii) such Transferee is a
“qualified institutional buyer” within the meaning of Rule 144A under the 1933
      Act.]

     

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

     

    The
      Depositor, the Master Servicer, the Trustee and the Certificate Registrar and
      any agent of the Depositor, the Master Servicer, the Trustee or the Certificate
      Registrar may treat the Person in whose name this Certificate is registered
      as
      the owner hereof for all purposes, and none of the Depositor, the Master
      Servicer, the Trustee, the Certificate Registrar nor any such agent shall be
      affected by notice to the contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment (or provision for payment) to the Holders of the
      Certificates of all amounts held by or on behalf of the Trustee and required
      to
      be paid to them pursuant to the Agreement following the earlier of (i) the
      Distribution Date on which the Certificate Principal Balance of each Class
      of
      Certificates has been reduced to zero, (ii) the final payment (or any advance
      with respect thereto) on or other liquidation of the last Mortgage Loan
      remaining in the Trust Fund and (iii) the optional purchase by the party
      designated in the Agreement at a price determined as provided in the Agreement
      from the Trust Fund of all the Mortgage Loans and all property acquired in
      respect of such Mortgage Loans remaining therein. The Agreement permits, but
      does not require, the party designated in the Agreement to purchase from the
      Trust Fund all the related Mortgage Loans and all property acquired in respect
      of any related Mortgage Loan remaining therein at a price determined as provided
      in the Agreement. The exercise of such right will effect early retirement of
      the
      Certificates; however, such right to purchase is subject to the aggregate Loan
      Balance of the related Mortgage Loans at the time of purchase being less than
      10% of the aggregate principal balance of the related Mortgage Loans as of
      the
      Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      the
      Trustee assumes no responsibility for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Certificate
      Registrar, by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement or be valid for any purpose.

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

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

     

    Dated:
      November 29, 2006

     

    
      	 	 	 	 	 	 	 	
              CITIBANK,
                N.A.

              as
                Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            

    

    

    

    

    

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class A-_ Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              CITIBANK,
                N.A.

              as
                Certificate Registrar

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

     

    
      	
              TEN
                COM -

            	 	
              as
                tenants in common

            	 	
              UNIF
                GIFT MIN ACT -

            	 	
              CUSTODIAN

            
	
              TEN
                ENT -

            	 	
              as
                tenants by the entireties

            	 	 	 	
              (Cust)
                (Minor)

            
	 	 	 	 	 	 	
              under
                Uniform Gifts to

              Minors
                Act

            
	
              JT
                TEN -

            	 	
              as
                joint tenants with right of survivorship and not as tenants in
                common

            	 	 	 	
              ______________

              (State)

            

    

    

     

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

     

    

     

    ASSIGNMENT

     

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

    
      	
              .

            

    

    (Please
      print or typewrite name, address including postal zip code, and Taxpayer
      Identification Number of assignee)

     

    the
      Percentage Interest evidenced by the within Mortgage Pass-Through Certificate
      and hereby authorize(s) the registration of transfer of such interest to
      assignee on the Certificate Register of the Trust Fund.

     

    I
      (we)
      further direct the Certificate Registrar to issue a new Certificate of a like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address: 

    
      	
              .

            

    

    

     

    
      	
              Dated:

            	 
	 	
              Signature
                by or on behalf of assignor

            
	 	 
	 	 
	 	
              Signature
                Guaranteed

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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.

            	 	 

    

    

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      B

     

    [RESERVED]

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      C-1

     

    FORM
      OF
      CLASS R CERTIFICATE

     

    THIS
      CERTIFICATE MAY NOT BE TRANSFERRED TO A NON-UNITED STATES PERSON.

     

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

     

    ANY
      RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
      IN
      ACCORDANCE WITH THE PROVISIONS OF SECTION 5.02 OF THE AGREEMENT REFERRED TO
      HEREIN.

     

    NO
      TRANSFER OF THIS CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT
      ARRANGEMENT (EACH A “PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY
      ACT OF 1974, AS AMENDED (“ERISA”), OR THE CODE WILL BE REGISTERED EXCEPT IN
      ACCORDANCE WITH SECTION 5.02(E) OF THE AGREEMENT.

     

    ANY
      RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
      IF
      THE PROPOSED TRANSFEREE PROVIDES (I) AN AFFIDAVIT TO THE TRUSTEE THAT (A) SUCH
      TRANSFEREE IS NOT (1) THE UNITED STATES OR ANY POSSESSION THEREOF, ANY STATE
      OR
      POLITICAL SUBDIVISION THEREOF, ANY FOREIGN GOVERNMENT, ANY INTERNATIONAL
      ORGANIZATION, OR ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, (2)
      ANY
      ORGANIZATION (OTHER THAN A COOPERATIVE DESCRIBED IN SECTION 521 OF THE CODE)
      THAT IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH
      ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE, (3)
      ANY
      ORGANIZATION DESCRIBED IN SECTION 1381(A)(2)(C) OF THE CODE (ANY SUCH PERSON
      DESCRIBED IN THE FOREGOING CLAUSES (1), (2) OR (3) SHALL HEREINAFTER BE REFERRED
      TO AS A “DISQUALIFIED ORGANIZATION”) OR (4) AN AGENT OF A DISQUALIFIED
      ORGANIZATION AND (B) NO PURPOSE OF SUCH TRANSFER IS TO IMPEDE THE ASSESSMENT
      OR
      COLLECTION OF TAX, AND (II) SUCH TRANSFEREE SATISFIES CERTAIN ADDITIONAL
      CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE PROPOSED TRANSFEREE.
      NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE REGISTER OF ANY TRANSFER,
      SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO A DISQUALIFIED ORGANIZATION
      OR
      AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH REGISTRATION SHALL BE DEEMED
      TO BE
      OF NO LEGAL FORCE OR EFFECT WHATSOEVER AND SUCH PERSON SHALL NOT BE DEEMED
      TO BE
      A CERTIFICATEHOLDER FOR ANY PURPOSE HEREUNDER, INCLUDING, BUT NOT LIMITED TO,
      THE RECEIPT OF DISTRIBUTIONS ON THIS CERTIFICATE. EACH HOLDER OF THIS
      CERTIFICATE BY ACCEPTANCE HEREOF SHALL BE DEEMED TO HAVE CONSENTED TO THE
      PROVISIONS OF THIS PARAGRAPH AND THE PROVISIONS OF SECTION 5.02(F) OF THE
      AGREEMENT REFERRED TO HEREIN. ANY PERSON THAT IS A DISQUALIFIED ORGANIZATION
      IS
      PROHIBITED FROM ACQUIRING BENEFICIAL OWNERSHIP OF THIS CERTIFICATE.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Certificate
                No. ___

            	 
	
              PHHMC
                Mortgage Pass-Through Certificates, Series 2006-4, Class
                R-_

            	
              Percentage
                Interest: Variable Rate

            
	
              Pass-Through
                Rate: Variable

            	
              Master
                Servicer:

              PHH
                Mortgage Corporation

            
	
              Date
                of Agreement and Cut-off Date:

              November
                1, 2006

            	
              Trustee:
                Citibank, N.A.

            
	
              First
                Distribution Date: December 18, 2006

            	
              Issue
                Date: November 29, 2006

            
	
              No.
                _

            	
              CUSIP:
                ___________

            

    

    

    MORTGAGE
      PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional, one- to four-family, fixed-rate, first
      lien
      mortgage loans (the “Mortgage Loans”) formed and sold by

     

    PHH
      MORTGAGE CAPITAL LLC

     

    PHHMC
      MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-4

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN PHH MORTGAGE
      CAPITAL LLC, THE MASTER SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE
      AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE
      GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

     

    This
      certifies that ___________________ is the registered owner of a Percentage
      Interest (obtained by dividing the denomination of this Certificate by the
      aggregate Certificate Principal Balance of the Class R-_ Certificates as of
      the
      Issue Date) in that certain beneficial ownership interest evidenced by all
      the
      Class R-_ Certificates in The Trust Fund created pursuant to a Pooling and
      Servicing Agreement, dated as specified above (the “Agreement”), among PHH
      Mortgage Capital LLC (hereinafter called the “Depositor,” which term includes
      any successor entity under the Agreement), the Master Servicer and the Trustee,
      a summary of certain of the pertinent provisions of which is set forth
      hereafter. To the extent not defined herein, the capitalized terms used herein
      have the meanings assigned in the Agreement. This Certificate is issued under
      and is subject to the terms, provisions and conditions of the Agreement, to
      which Agreement the Holder of this Certificate by virtue of the acceptance
      hereof assents and by which such Holder is bound.

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 18th day of
      each month or, if such 18th day is not a Business Day, the Business Day
      immediately following (a “Distribution Date”), commencing on the First
      Distribution Date specified above, to the Person in whose name this Certificate
      is registered on the Record Date, in an amount equal to the product of the
      Percentage Interest evidenced by this Certificate and the amount required to
      be
      distributed to the Holders of Class R-_ Certificates on such Distribution Date
      pursuant to the Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Mortgage Pass-Through Certificates of the Series specified on the face hereof
      (hereinafter called the “Certificates”) and representing a Percentage Interest
      in the Class of Certificates specified on the face hereof equal to the
      denomination specified on the face hereof divided by the aggregate Certificate
      Principal Balance of the Class of Certificates specified on the face
      hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Holders of the Certificates, such
      purposes including reimbursement of advances made, or certain expenses incurred,
      with respect to the Mortgage Loans.

     

    The
      Agreement permits, with certain exceptions and conditions provided therein,
      the
      amendment thereof and the modification of the rights and obligations of the
      Depositor, the Master Servicer and the Trustee and the rights of the Holders
      of
      the Certificates under the Agreement at any time by the Depositor, the Master
      Servicer and the Trustee, with the consent of the Holders of Certificates
      entitled to at least 66%, in some cases 100%, of the Voting Rights. Any such
      consent by the Holder of this Certificate shall be conclusive and binding on
      such Holder and upon all future Holders of this Certificate and of any
      Certificate issued upon the transfer hereof or in exchange herefor or in lieu
      hereof whether or not notation of such consent is made upon this Certificate.
      The Agreement also permits the amendment thereof, in certain limited
      circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations set forth therein,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Trustee as provided in the Agreement, duly endorsed
      by, or accompanied by an assignment in the form below or other written
      instrument of transfer in form satisfactory to the 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 evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

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

     

    No
      transfer of this Certificate to a Plan subject to ERISA or Section 4975 of
      the
      Code, any Person acting, directly or indirectly, on behalf of any such Plan
      or
      any person using Plan Assets to acquire this Certificate shall be made except
      in
      accordance with Section 5.02(e) of the Agreement.

     

    Prior
      to
      registration of any transfer, sale or other disposition of this Certificate,
      the
      proposed transferee shall provide to the Trustee (i) an affidavit to the effect
      that such transferee is any Person other than a Disqualified Organization or
      the
      agent (including a broker, nominee or middleman) of a Disqualified Organization,
      and (ii) a certificate that acknowledges that (A) the Class R-_ Certificates
      have been designated as a residual interest in a REMIC, (B) it will include
      in
      its income a pro
      rata
      share of
      the net income of the Trust Fund and that such income may be an “excess
      inclusion,” as defined in the Code, that, with certain exceptions, cannot be
      offset by other losses or benefits from any tax exemption, and (C) it expects
      to
      have the financial means to satisfy all of its tax obligations including those
      relating to holding the Class R-_ Certificates. Notwithstanding the registration
      in the Certificate Register of any transfer, sale or other disposition of this
      Certificate to a Disqualified Organization or an agent (including a broker,
      nominee or middleman) of a Disqualified Organization, such registration shall
      be
      deemed to be of no legal force or effect whatsoever and such Person shall not
      be
      deemed to be a Certificateholder for any purpose, including, but not limited
      to,
      the receipt of distributions in respect of this Certificate.

     

    The
      Holder of this Certificate, by its acceptance hereof, shall be deemed to have
      consented to the provisions of Section 5.02 of the Agreement and to any
      amendment of the Agreement deemed necessary by counsel of the Depositor to
      ensure that the transfer of this Certificate to any Person other than a
      Permitted Transferee or any other Person will not cause the Trust Fund to cease
      to qualify as a REMIC or cause the imposition of a tax upon the
      REMIC.

     

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

     

    The
      Depositor, the Master Servicer, the Trustee and the Certificate Registrar and
      any agent of the Depositor, the Master Servicer, the Trustee or the Certificate
      Registrar may treat the Person in whose name this Certificate is registered
      as
      the owner hereof for all purposes, and none of the Depositor, the Master
      Servicer, the Trustee, the Certificate Registrar nor any such agent shall be
      affected by notice to the contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment (or provision for payment) to the Holders of the
      Certificates of all amounts held by or on behalf of the Trustee and required
      to
      be paid to them pursuant to the Agreement following the earlier of (i) the
      Distribution Date on which the Certificate Principal Balance of each Class
      of
      Certificates has been reduced to zero, (ii) the final payment (or any advance
      with respect thereto) on or other liquidation of the last Mortgage Loan
      remaining in The Trust Fund and (iii) the optional purchase by the party
      designated in the Agreement at a price determined as provided in the Agreement
      from The Trust Fund of all the Mortgage Loans and all property acquired in
      respect of such Mortgage Loans remaining therein. The Agreement permits, but
      does not require, the party designated in the Agreement to purchase from the
      Trust Fund all the related Mortgage Loans and all property acquired in respect
      of any related Mortgage Loan remaining therein at a price determined as provided
      in the Agreement. The exercise of such right will effect early retirement of
      the
      Certificates; however, such right to purchase is subject to the aggregate Loan
      Balance of the related Mortgage Loans at the time of purchase being less than
      10% of the aggregate principal balance of the related Mortgage Loans as of
      the
      Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      the
      Trustee assumes no responsibility for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Certificate
      Registrar, by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement or be valid for any purpose.

     

    

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

    executed.

     

    Dated:
      November 29, 2006

     

    
      	 	 	 	 	 	 	 	
              CITIBANK,
                N.A.

              as
                Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            

    

    

    

    

    

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class R-_ Certificates referred to in the within-mentioned
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              CITIBANK,
                N.A.

              as
                Certificate Registrar

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

     

    
       

      
        	
                TEN
                  COM -

              	 	
                as
                  tenants in common

              	 	
                UNIF
                  GIFT MIN ACT -

              	 	
                CUSTODIAN

              
	
                TEN
                  ENT -

              	 	
                as
                  tenants by the entireties

              	 	 	 	
                (Cust)
                  (Minor)

              
	 	 	 	 	 	 	
                under
                  Uniform Gifts to

                Minors
                  Act

              
	
                JT
                  TEN -

              	 	
                as
                  joint tenants with right of survivorship and not as tenants in
                  common

              	 	 	 	
                ______________

                (State)

              

      

       

    

     

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

     

    

     

    ASSIGNMENT

     

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

    
      	
              .

            

    

    (Please
      print or typewrite name, address including postal zip code, and
      Taxpayer

     

    Identification
      Number of assignee)

     

    the
      Percentage Interest evidenced by the within Mortgage Pass-Through Certificate
      and hereby authorize(s) the registration of transfer of such interest to
      assignee on the Certificate Register of the Trust Fund.

     

    I
      (we)
      further direct the Certificate Registrar to issue a new Certificate of a like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address: 

    
      	
              .

            

    

    

     

    
      	
              Dated:

            	 
	 	
              Signature
                by or on behalf of assignor

            
	 	 
	 	 
	 	
              Signature
                Guaranteed

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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.

            	 	 

    

    

     

    

    EXHIBIT
      C-2

     

    FORM
      OF
      CLASS B 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
      (THE “CODE”).

     

    [[FOR
      CLASS B-1, CLASS B-2 AND CLASS B-3 CERTIFICATES ONLY:] UNLESS THIS CERTIFICATE
      IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
      A
      NEW YORK CORPORATION (“DTC”), TO 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.]

     

    THIS
      CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES, THE RESIDUAL
      CERTIFICATES, [THE CLASS B-1 CERTIFICATES], [THE CLASS B-2 CERTIFICATES], [THE
      CLASS B-3 CERTIFICATES], [THE CLASS B-4 CERTIFICATES] [AND THE CLASS B-5
      CERTIFICATES] TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO
      HEREIN.

     

    [[FOR
      THE
      CLASS B-4, CLASS B-5 AND CLASS B-6 CERTIFICATES ONLY:] NO TRANSFER OF THIS
      CERTIFICATE TO AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT (EACH
      A
“PLAN”) SUBJECT TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
      AMENDED (“ERISA”), OR THE CODE WILL BE REGISTERED EXCEPT IN ACCORDANCE WITH
      SECTION 5.02(E) OF THE AGREEMENT.]

     

    [[FOR
      THE
      CLASS B-4, CLASS B-5 AND CLASS B-6 CERTIFICATES ONLY:] THIS CERTIFICATE HAS
      NOT
      BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE RESOLD OR TRANSFERRED UNLESS
      IT
      IS REGISTERED PURSUANT TO SUCH ACT AND LAWS OR IS SOLD OR TRANSFERRED IN
      TRANSACTIONS THAT ARE EXEMPT FROM REGISTRATION UNDER SUCH ACT AND UNDER
      APPLICABLE STATE LAW AND IS TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF
      SECTION 5.02(D) OF THE AGREEMENT.]

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	 
	
              PHHMC
                Mortgage Pass-Through Certificates, Series 2006-4, Class
                B-__

            	
              Aggregate
                Certificate Principal

              Balance
                of Class B-__

              Certificates as of the Issue Date:
                $__________

            
	
              Pass-Through
                Rate: Variable

            	
              Denomination:
                $__________

            
	
              Date
                of Agreement and Cut-off Date:

              November
                1, 2006

            	
              Master
                Servicer:

              PHH
                Mortgage Corporation

            
	
              First
                Distribution Date: December 18, 2006

            	 
	 	
              Trustee:
                Citibank, N.A.

            
	
              No.
                1

            	
              Issue
                Date: November 29, 2006

            
	 	
              CUSIP:
                ____________

            

    

    

    DISTRIBUTIONS
      IN REDUCTION OF THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE MAY BE
      MADE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING CERTIFICATE
      PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE
      AS
      THE DENOMINATION OF THIS CERTIFICATE.

     

    MORTGAGE
      PASS-THROUGH CERTIFICATE

     

    evidencing
      a beneficial ownership interest in a Trust Fund (the “Trust Fund”) consisting
      primarily of a pool of conventional, one- to four-family, fixed-rate, first
      lien
      mortgage loans (the “Mortgage Loans”) formed and sold by

     

    PHH
      MORTGAGE CAPITAL LLC

     

    PHHMC
      MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-4

     

    THIS
      CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN PHH MORTGAGE
      CAPITAL LLC, THE MASTER SERVICER, THE TRUSTEE OR ANY OF THEIR RESPECTIVE
      AFFILIATES. NEITHER THIS CERTIFICATE NOR THE UNDERLYING MORTGAGE LOANS ARE
      GUARANTEED BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES.

     

    This
      certifies that _______________ is the registered owner of a Percentage Interest
      (obtained by dividing the denomination of this Certificate by the aggregate
      Certificate Principal Balance of the Class B-__ Certificates as of the Issue
      Date) in that certain beneficial ownership interest evidenced by all the Class
      B-__ Certificates in the Trust Fund created pursuant to a Pooling and Servicing
      Agreement, dated as specified above (the “Agreement”), among PHH Mortgage
      Capital LLC (hereinafter called the “Depositor,” which term includes any
      successor entity under the Agreement), the Master Servicer and the Trustee,
      a
      summary of certain of the pertinent provisions of which is set forth hereafter.
      To the extent not defined herein, the capitalized terms used herein have the
      meanings assigned in the Agreement. This Certificate is issued under and is
      subject to the terms, provisions and conditions of the Agreement, to which
      Agreement the Holder of this Certificate by virtue of the acceptance hereof
      assents and by which such Holder is bound.

     

    Pursuant
      to the terms of the Agreement, distributions will be made on the 18th day of
      each month or, if such 18th day is not a Business Day, the Business Day
      immediately following (a “Distribution Date”), commencing on the First
      Distribution Date specified above, to the Person in whose name this Certificate
      is registered on the Record Date, in an amount equal to the product of the
      Percentage Interest evidenced by this Certificate and the amount required to
      be
      distributed to the Holders of Class B-__ Certificates on such Distribution
      Date
      pursuant to the Agreement.

     

    All
      distributions to the Holder of this Certificate under the Agreement will be
      made
      or caused to be made by or on behalf of the Trustee by wire transfer in
      immediately available funds to the account of the Person entitled thereto if
      such Person shall have so notified the Trustee in writing at least five Business
      Days prior to the Record Date immediately prior to such Distribution Date and
      is
      the registered owner of Class B-__ Certificates, the aggregate initial
      Certificate Principal Balance of which is in excess of the lesser of (i)
      $5,000,000 or (ii) two-thirds of the aggregate initial Certificate Principal
      Balance of the Class B-__ Certificates, or otherwise by check mailed by first
      class mail to the address of the Person entitled thereto, as such name and
      address shall appear on the Certificate Register. Notwithstanding the above,
      the
      final distribution on this Certificate will be made after due notice by the
      Trustee of the pendency of such distribution and only upon the presentation
      and
      surrender of this Certificate at the office or agency appointed by the Trustee
      for that purpose as provided in the Agreement.

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Mortgage Pass-Through Certificates of the Series specified on the face hereof
      (hereinafter called the “Certificates”) and representing a Percentage Interest
      in the Class of Certificates specified on the face hereof equal to the
      denomination specified on the face hereof divided by the aggregate Certificate
      Principal Balance of the Class of Certificates specified on the face
      hereof.

     

    The
      Certificates are limited in right of payment to certain collections and
      recoveries respecting the Mortgage Loans, all as more specifically set forth
      herein and in the Agreement. As provided in the Agreement, withdrawals from
      the
      Collection Account and the Distribution Account may be made from time to time
      for purposes other than distributions to Holders of the Certificates, such
      purposes including reimbursement of advances made, or certain expenses incurred,
      with respect to the Mortgage Loans.

     

    The
      Agreement permits, with certain exceptions and conditions provided therein,
      the
      amendment thereof and the modification of the rights and obligations of the
      Depositor, the Master Servicer and the Trustee and the rights of the Holders
      of
      the Certificates under the Agreement at any time by the Depositor, the Master
      Servicer and the Trustee, with the consent of the Holders of Certificates
      entitled to at least 66%, in some cases 100%, of the Voting Rights. Any such
      consent by the Holder of this Certificate shall be conclusive and binding on
      such Holder and upon all future Holders of this Certificate and of any
      Certificate issued upon the transfer hereof or in exchange herefor or in lieu
      hereof whether or not notation of such consent is made upon this Certificate.
      The Agreement also permits the amendment thereof, in certain limited
      circumstances, without the consent of the Holders of any of the
      Certificates.

     

    As
      provided in the Agreement and subject to certain limitations set forth therein,
      the transfer of this Certificate is registrable in the Certificate Register
      upon
      surrender of this Certificate for registration of transfer at the offices or
      agencies appointed by the Trustee as provided in the Agreement, duly endorsed
      by, or accompanied by an assignment in the form below or other written
      instrument of transfer in form satisfactory to the 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 evidencing the same aggregate Percentage
      Interest will be issued to the designated transferee or
      transferees.

     

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

     

    [[For
      the
      Class B-4, Class B-5 and Class B-6 Certificates only:] No transfer of this
      Certificate shall be made unless the transfer is made pursuant to an effective
      registration statement under the Securities Act of 1933, as amended (the “1933
      Act”), and an effective registration or qualification under applicable state
      securities laws, or is made in a transaction that does not require such
      registration or qualification. In the event that such a transfer of this
      Certificate is to be made without registration or qualification, (i) if such
      transfer is made in reliance upon Rule 144A under the 1933 Act, the Trustee
      shall require the transferor to execute a transferor certificate in
      substantially the same form attached to the Agreement as Exhibit F-2 and the
      transferee to execute an investment letter in substantially the form attached
      to
      the Agreement as Exhibit F-1 or (ii) (A) the Trustee shall require the
      transferor to execute a transferor certificate (in substantially the form
      attached to the Agreement as Exhibit F-2) and the transferee to execute an
      investment letter (in substantially the form attached to the Agreement as
      Exhibit F-3) acceptable to and in form and substance reasonably satisfactory
      to
      the Depositor and the Trustee certifying to the Depositor and the Trustee the
      facts surrounding such transfer, which investment letter shall not be an expense
      of the Trustee or the Depositor and (B) the Trustee and the Depositor shall
      require a written Opinion of Counsel (which may be in-house counsel) acceptable
      to and in form and substance reasonably satisfactory to the Trustee and the
      Depositor that such transfer may be made pursuant to an exemption, describing
      the applicable exemption and the basis therefor, from the 1933 Act or is being
      made pursuant to the 1933 Act, which Opinion of Counsel shall not be an expense
      of the Trustee or the Depositor. None of the Depositor, the Certificate
      Registrar or the Trustee is obligated to register or qualify the Class of
      Certificates specified on the face hereof under the 1933 Act or any other
      securities law or to take any action not otherwise required under the Agreement
      to permit the transfer of such Certificates without registration or
      qualification. Any Holder desiring to effect a transfer of this Certificate
      shall be required to indemnify the Trustee, the Depositor, the Certificate
      Registrar 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.]

     

    [[For
      the
      Class B-4, Class B-5 and Class B-6 Certificates only:] No transfer of this
      Certificate to a Plan subject to ERISA or Section 4975 of the Code, any Person
      acting, directly or indirectly, on behalf of any such Plan or any person using
      Plan Assets to acquire this Certificate shall be made except in accordance
      with
      Section 5.02(e) of the Agreement.]

     

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

     

    The
      Depositor, the Master Servicer, the Trustee and the Certificate Registrar and
      any agent of the Depositor, the Master Servicer, the Trustee or the Certificate
      Registrar may treat the Person in whose name this Certificate is registered
      as
      the owner hereof for all purposes, and none of the Depositor, the Master
      Servicer, the Trustee, the Certificate Registrar nor any such agent shall be
      affected by notice to the contrary.

     

    The
      obligations created by the Agreement and the Trust Fund created thereby shall
      terminate upon payment (or provision for payment) to the Holders of the
      Certificates of all amounts held by or on behalf of the Trustee and required
      to
      be paid to them pursuant to the Agreement following the earlier of (i) the
      Distribution Date on which the Certificate Principal Balance of each Class
      of
      Certificates has been reduced to zero, (ii) the final payment (or any advance
      with respect thereto) on or other liquidation of the last Mortgage Loan
      remaining in The Trust Fund and (iii) the optional purchase by the party
      designated in the Agreement at a price determined as provided in the Agreement
      from The Trust Fund of all the Mortgage Loans and all property acquired in
      respect of such Mortgage Loans remaining therein. The Agreement permits, but
      does not require, the party designated in the Agreement to purchase from the
      Trust Fund all the related Mortgage Loans and all property acquired in respect
      of any related Mortgage Loan remaining therein at a price determined as provided
      in the Agreement. The exercise of such right will effect early retirement of
      the
      Certificates; however, such right to purchase is subject to the aggregate Loan
      Balance of the related Mortgage Loans at the time of purchase being less than
      10% of the aggregate principal balance of the related Mortgage Loans as of
      the
      Cut-off Date.

     

    The
      recitals contained herein shall be taken as statements of the Depositor and
      the
      Trustee assumes no responsibility for their correctness.

     

    Unless
      the certificate of authentication hereon has been executed by the Certificate
      Registrar, by manual signature, this Certificate shall not be entitled to any
      benefit under the Agreement or be valid for any purpose.

     

    

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

     

    Dated:
      November 29, 2006

     

    
      	 	 	 	 	 	 	 	
              CITIBANK,
                N.A.

              as
                Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Officer

            

    

    

    CERTIFICATE
      OF AUTHENTICATION

     

    This
      is
      one of the Class B-__ Certificates referred to in the within-mentioned
      Agreement.

    

    

    

    

    
      	 	 	 	 	 	 	 	
              CITIBANK,
                N.A.

              as
                Certificate Registrar

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	 	
              Authorized
                Signatory

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

     

     

    
      
        	
                TEN
                  COM -

              	 	
                as
                  tenants in common

              	 	
                UNIF
                  GIFT MIN ACT -

              	 	
                CUSTODIAN

              
	
                TEN
                  ENT -

              	 	
                as
                  tenants by the entireties

              	 	 	 	
                (Cust)
                  (Minor)

              
	 	 	 	 	 	 	
                under
                  Uniform Gifts to

                Minors
                  Act

              
	
                JT
                  TEN -

              	 	
                as
                  joint tenants with right of survivorship and not as tenants in
                  common

              	 	 	 	
                ______________

                (State)

              

      

       

    

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

     

    

     

    ASSIGNMENT

     

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

    
      	
              .

            

    

    (Please
      print or typewrite name, address including postal zip code, and
      Taxpayer

     

    Identification
      Number of assignee)

     

    the
      Percentage Interest evidenced by the within Mortgage Pass-Through Certificate
      and hereby authorize(s) the registration of transfer of such interest to
      assignee on the Certificate Register of the Trust Fund.

     

    I
      (we)
      further direct the Certificate Registrar to issue a new Certificate of a like
      Percentage Interest and Class to the above named assignee and deliver such
      Certificate to the following address: 

    
      	
              .

            

    

    

     

    
      	
              Dated:

            	 
	 	
              Signature
                by or on behalf of assignor

            
	 	 
	 	 
	 	
              Signature
                Guaranteed

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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.

            	 	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      D

     

    MORTGAGE
      LOAN SCHEDULE

     

    

==============================================================================================================================
    Loan ID             Zip            Occupancy           Property Type       Original        Closing            Loan To
                                                                               Term to           Date             Value at
                                                                               Maturity                         Origination
==============================================================================================================================
      0029096450      92131        O/O                    PUDDT                    360          7/20/2005               52.71
      0029450178      20132        O/O                    SFD                      360          4/11/2005               80.00
      0031035983      31569        O/O                    SFD                      240          8/11/2005               87.74
      0031155302      40324        O/O                    SFD                      360           8/3/2005               80.00
      0032842213      78006        O/O                    PUDDT                    360         11/15/2005               67.08
      0034372011      55408        O/O                    SFD                      360         12/15/2005               78.36
      0034577767      87508        O/O                    PUDDT                    360          9/20/2006               75.31
      0034717678      01864        O/O                    SFD                      360         10/20/2006               80.00
      0034781864      23838        O/O                    PUDDT                    360          9/15/2006               80.00
      0034796383      07834        O/O                    CONDO                    360          9/15/2006               70.54
      0034824862      60540        O/O                    SFD                      360          9/26/2006               72.63
      0034827089      11791        O/O                    SFD                      360          9/22/2006               80.00
      0035071489      60647        O/O                    SFD                      360          9/14/2006               80.00
      0035071851      60035        O/O                    SFD                      360          9/18/2006               51.05
      0035074418      55123        O/O                    SFD                      360           9/1/2006               80.00
      0035090604      60015        O/O                    SFD                      360         10/13/2006               50.84
      0035092931      60022        O/O                    SFD                      360           9/8/2006               50.91
      0035103167      55436        O/O                    SFD                      360           9/5/2006               80.00
      0035103175      60126        O/O                    SFD                      360          10/2/2006               78.58
      0035103456      92610        O/O                    PUDDT                    240          8/23/2006               69.95
      0035104132      14527        SEC                    SFD                      360          9/15/2006               94.16
      0035104660      55422        O/O                    PUDDT                    360          8/29/2006               80.00
      0035109701      91311        O/O                    SFD                      360          10/2/2006               61.73
      0035110923      55391        O/O                    SFD                      360          9/28/2006               80.00
      0035113125      55449        O/O                    PUDDT                    360         10/11/2006               80.00
      0035114172      60045        O/O                    PUDDT                    360          9/20/2006               80.00
      0035115245      98311        O/O                    SFD                      360           9/7/2006               75.22
      0035115815      60614        O/O                    CONDO                    360         10/19/2006               69.77
      0035118488      60035        O/O                    SFD                      360          10/5/2006               63.86
      0035121821      55419        O/O                    SFD                      360         10/23/2006               80.00
      0035122498      92648        O/O                    SFD                      360         10/19/2006               66.76
      0035122944      34110        O/O                    PUDDT                    360         10/27/2006               91.67
      0035123306      93004        O/O                    SFD                      360         10/19/2006               80.00
      0035123330      92646        O/O                    SFD                      360         10/18/2006               70.59
      0035349539      11951        SEC                    SFD                      360          9/26/2006               79.51
      0035617299      94566        O/O                    SFD                      360          9/15/2006               70.00
      0035652544      93444        O/O                    PUDDT                    360          10/4/2006               80.00
      0035704600      95616        O/O                    SFD                      360          9/14/2006               80.00
      0038649075      21403        O/O                    SFD                      360          8/31/2006               39.22
      0038650776      23220        SEC                    SFA                      360          6/30/2006               74.27
      0038668471      21078        O/O                    PUDDT                    360          9/25/2006               80.00
      0038684312      85255        O/O                    PUDDT                    360          8/30/2006               58.82
      0038708707      06812        O/O                    SFD                      360          9/29/2006               72.49
      0038766358      20155        O/O                    PUDDT                    360           9/1/2006               80.00
      0038794558      60047        O/O                    PUDDT                    360          8/23/2006               71.08
      0038824041      75087        O/O                    SFD                      360          9/22/2006               90.00
      0038849469      92009        O/O                    PUDDT                    360           8/7/2006               52.26
      0038869798      92651        O/O                    SFD                      360           8/7/2006               70.00
      0038909982      91042        O/O                    SFD                      360          9/13/2006               80.00
      0038928248      34202        O/O                    PUDDT                    360          8/31/2006               80.00
      0038943809      21842        SEC                    PUDDT                    360          7/21/2006               41.09
      0038955555      11694        O/O                    SFD                      360          9/12/2006               76.24
      0038980694      92270        O/O                    SFD                      360          10/5/2006               63.80
      0038982617      06117        O/O                    SFD                      360          9/29/2006               60.67
      0038988580      22015        O/O                    PUDDT                    360          7/20/2006               46.53
      0038992160      22901        O/O                    SFD                      360         10/13/2006               80.00
      0039005178      04429        O/O                    SFD                      360         10/13/2006               78.01
      0039008339      07045        O/O                    SFD                      360          9/26/2006               80.00
      0039021480      07645        O/O                    SFD                      360          9/29/2006               78.37
      0039032446      07945        O/O                    SFD                      360          9/12/2006               80.00
      0039039995      20176        O/O                    PUDDT                    360           9/1/2006               80.00
      0039049556      80303        O/O                    PUDDT                    360           9/1/2006               80.00
      0039052436      10520        O/O                    SFD                      360         10/17/2006               80.00
      0039071683      20619        O/O                    SFD                      360          8/18/2006               77.84
      0039097860      89144        O/O                    PUDDT                    360          8/25/2006               74.18
      0039101100      91601        O/O                    SFD                      360          8/17/2006               80.00
      0039108055      16505        O/O                    SFD                      360           9/1/2006               80.00
      0039109509      02889        O/O                    SFD                      240          8/22/2006               78.69
      0039114210      86001        O/O                    PUDDT                    360          8/22/2006               67.67
      0039114665      90065        O/O                    SFD                      360          9/20/2006               65.22
      0039117213      85935        O/O                    PUDDT                    360          8/23/2006               80.00
      0039126529      01845        O/O                    SFD                      360          9/28/2006               80.00
      0039134937      22152        O/O                    SFD                      360         10/27/2006               79.97
      0039136734      33467        O/O                    PUDDT                    360                                  66.15
      0039136817      21035        O/O                    PUDDT                    360          8/11/2006               58.39
      0039139118      07646        O/O                    SFD                      360          9/27/2006               70.02
      0039143490      07090        O/O                    SFD                      360          9/15/2006               80.00
      0039151840      64112        O/O                    PUDDT                    360           9/8/2006               72.41
      0039154612      10567        O/O                    SFD                      360         10/18/2006               80.00
      0039156377      07090        O/O                    SFD                      360          9/29/2006               80.00
      0039164561      02669        O/O                    SFD                      360          9/27/2006               75.00
      0039183850      76092        O/O                    PUDDT                    360           9/1/2006               66.48
      0039192448      94901        O/O                    CONDO                    360         10/12/2006               80.00
      0039206081      98029        O/O                    PUDDT                    360           9/1/2006               80.00
      0039210083      06880        O/O                    SFD                      360          8/29/2006               40.00
      0039213947      07078        O/O                    SFD                      360         10/27/2006               80.00
      0039233176      91108        O/O                    SFD                      360         10/11/2006               55.97
      0039244900      45220        O/O                    SFD                      360          9/22/2006               55.11
      0039249446      07417        O/O                    SFD                      360         10/30/2006               76.44
      0039254651      01983        O/O                    SFD                      360           9/5/2006               71.43
      0039257894      60564        O/O                    PUDDT                    360          9/15/2006               80.00
      0039258918      10504        O/O                    SFD                      360          10/4/2006               80.00
      0039269071      90623        O/O                    SFD                      360         10/10/2006               63.01
      0039277637      22192        O/O                    PUDDT                    360         10/30/2006               80.00
      0039279252      02331        O/O                    SFD                      360         10/30/2006               80.00
      0039281639      33308        O/O                    SFD                      360           9/1/2006               66.67
      0039294343      92870        O/O                    SFD                      360           9/6/2006               72.50
      0039297973      93444        O/O                    SFD                      360           9/7/2006               69.44
      0039298732      92027        O/O                    SFD                      360          9/20/2006               78.67
      0039303391      91104        O/O                    SFD                      360          10/2/2006               46.43
      0039307483      63122        O/O                    SFD                      360          9/15/2006               70.00
      0039309851      60515        O/O                    SFD                      360          9/21/2006               80.00
      0039317466      26753        O/O                    SFD                      360          9/27/2006               80.00
      0039319306      06897        O/O                    SFD                      360          10/6/2006               80.00
      0039325469      48167        O/O                    SFD                      240          9/25/2006               43.89
      0039327135      95035        O/O                    SFD                      360          9/21/2006               51.84
      0039327374      92008        O/O                    SFD                      360          8/24/2006               80.00
      0039330139      07401        O/O                    SFD                      360          9/28/2006               80.00
      0039340864      02138        SEC                    SFD                      360          9/29/2006               43.95
      0039343553      91307        O/O                    SFD                      360          9/21/2006               80.00
      0039344577      95124        O/O                    SFD                      360          9/15/2006               51.90
      0039349220      22911        O/O                    PUDDT                    360          9/28/2006               80.00
      0039351077      20878        O/O                    SFD                      360         10/17/2006               80.00
      0039354139      91710        O/O                    SFD                      360          9/18/2006               76.67
      0039356209      22153        O/O                    PUDDT                    360         10/10/2006               78.83
      0039361258      89135        O/O                    PUDDT                    360          9/25/2006               80.00
      0039368105      49085        O/O                    SFD                      360          9/22/2006               80.00
      0039371257      22301        O/O                    SFD                      360          8/30/2006               80.00
      0039372479      06903        O/O                    SFD                      360          9/12/2006               80.00
      0039382361      19380        O/O                    SFD                      360          9/29/2006               52.38
      0039383070      33931        SEC                    SFD                      360          9/14/2006               80.00
      0039392592      06883        O/O                    SFD                      300           9/6/2006               80.00
      0039393798      75056        O/O                    PUDDT                    360          9/28/2006               80.00
      0039395439      06830        O/O                    CONDO                    360           9/8/2006               59.48
      0039396858      85259        O/O                    CONDO                    360          9/15/2006               80.00
      0039402821      11570        O/O                    SFD                      360          9/19/2006               60.25
      0039404629      94306        O/O                    CONDO                    360          9/20/2006               80.00
      0039407960      33647        O/O                    PUDDT                    360          9/29/2006               80.00
      0039409552      34695        O/O                    PUDDT                    360          9/29/2006               80.00
      0039422787      07666        O/O                    SFD                      360         10/19/2006               80.00
      0039426812      11959        SEC                    SFD                      360          9/29/2006               44.78
      0039434907      07719        O/O                    SFD                      360          9/18/2006               70.14
      0039445911      15044        O/O                    SFD                      360          9/21/2006               62.50
      0039447024      33027        O/O                    PUDDT                    360                                  80.00
      0039451570      11706        SEC                    SFD                      240         10/16/2006               79.44
      0039464482      84098        O/O                    SFD                      360          10/6/2006               80.00
      0039467758      32563        O/O                    PUDDT                    360           9/5/2006               80.00
      0039479936      20171        O/O                    PUDDT                    360          9/21/2006               80.00
      0039485495      49735        O/O                    SFD                      360          9/25/2006               75.00
      0039493978      92064        O/O                    PUDDT                    360          10/6/2006               80.00
      0039494000      07726        O/O                    SFD                      360          9/29/2006               80.00
      0039496773      98074        O/O                    PUDDT                    360           9/8/2006               80.00
      0039498241      80908        O/O                    SFD                      360         10/20/2006               90.00
      0039500269      60564        O/O                    PUDDT                    360           9/7/2006               80.00
      0039507181      92506        O/O                    SFD                      360         10/17/2006               50.91
      0039515077      11721        O/O                    SFD                      360         10/12/2006               70.55
      0039520267      07940        O/O                    SFD                      360          9/12/2006               90.00
      0039521596      08534        O/O                    SFD                      360          10/5/2006               68.52
      0039525530      93551        O/O                    PUDDT                    360          9/21/2006               80.00
      0039525647      97701        O/O                    SFD                      360          10/4/2006               80.00
      0039532718      07057        O/O                    SFD                      360         10/27/2006               77.78
      0039538939      92130        O/O                    SFD                      360          10/3/2006               80.00
      0039539069      02061        O/O                    SFD                      360          9/28/2006               63.38
      0039542378      98006        O/O                    SFD                      360          9/26/2006               80.00
      0039546718      11743        O/O                    SFD                      360          9/29/2006               74.68
      0039551064      20112        O/O                    SFD                      360         10/16/2006               80.00
      0039555362      22207        O/O                    SFD                      360          9/26/2006               80.00
      0039556212      20169        O/O                    SFD                      360          10/2/2006               86.84
      0039557210      95124        O/O                    SFD                      360          9/13/2006               80.00
      0039565593      91104        O/O                    SFD                      360         10/12/2006               72.45
      0039566450      94305        O/O                    SFD                      360          10/1/2006               28.57
      0039569900      80919        O/O                    PUDDT                    360         10/19/2006               80.00
      0039573191      94941        SEC                    PUDAT                    360          10/9/2006               80.00
      0039574686      93012        O/O                    PUDDT                    360          10/4/2006               80.00
      0039576772      46032        O/O                    SFD                      360         10/26/2006               80.00
      0039581780      75287        O/O                    SFD                      360         10/16/2006               80.00
      0039587191      21042        O/O                    SFD                      360          9/22/2006               79.68
      0039589726      92104        O/O                    SFD                      360          10/3/2006               80.00
      0039590864      98466        O/O                    PUDDT                    360          9/22/2006               80.00
      0039590872      02748        O/O                    SFD                      360         10/18/2006               48.39
      0039592332      95762        O/O                    PUDDT                    360          9/22/2006               66.91
      0039594437      60563        O/O                    PUDDT                    360         10/26/2006               80.00
      0039599493      20880        O/O                    SFD                      360         10/20/2006               80.00
      0039599642      07023        O/O                    SFD                      360         10/17/2006               68.45
      0039600416      95030        O/O                    SFD                      360          10/2/2006               80.00
      0039600523      12211        O/O                    SFD                      360         10/12/2006               89.93
      0039606884      97062        O/O                    SFD                      360         10/11/2006               80.00
      0039626205      89143        O/O                    PUDDT                    360          9/27/2006               78.90
      0039629738      01721        O/O                    SFD                      360         10/27/2006               95.00
      0039630389      96161        SEC                    PUDDT                    360         10/11/2006               80.00
      0039642947      07046        O/O                    SFD                      360         10/25/2006               78.62
      0039648340      33183        O/O                    PUDDT                    360         10/26/2006               54.41
      0039657150      22152        O/O                    SFD                      360         10/12/2006               80.00
      0039664453      60525        O/O                    SFD                      360         10/19/2006               80.00
      0039676812      02144        O/O                    SFD                      360         10/25/2006               74.24
      0039677703      98102        O/O                    SFD                      360         10/10/2006               65.10
      0039682869      07079        O/O                    SFD                      360         10/30/2006               57.80
      0039685607      07040        O/O                    SFD                      360         10/18/2006               80.00
      0039690086      92027        O/O                    PUDDT                    360         10/13/2006               74.87
      0039690474      98052        O/O                    PUDDT                    360          10/2/2006               80.00
      0039754957      33626        O/O                    PUDDT                    360           9/1/2006               85.37
      0039764949      11791        O/O                    SFD                      360          9/22/2006               80.00
      0040002511      07704        O/O                    SFD                      360         10/20/2006               60.53
      0040002529      19930        SEC                    PUDDT                    360         10/19/2006               56.52
      0040003386      08844        O/O                    SFD                      360         10/27/2006               79.26
      0040012858      94024        O/O                    SFD                      360         10/19/2006               40.26
      0040019382      22203        O/O                    PUDAT                    360         10/13/2006               80.00
      0040038598      32169        O/O                    SFD                      360         10/23/2006               80.00
      0040088569      17057        O/O                    SFD                      360         10/19/2006               88.55
      7100010789      95747        O/O                    SFD                      360          5/31/2005               47.98
      7100107098      22101        O/O                    SFD                      360          5/13/2005               62.97
      7101449226      11516        O/O                    SFD                      360           6/5/2006              100.00
      7101611551      75038        O/O                    PUDDT                    360         10/10/2006               79.58
      7101615347      22152        INV                    PUDDT                    360         10/27/2006               43.67
      7101615602      89135        O/O                    PUDDT                    360         10/24/2006               62.93
      7101621295      08402        O/O                    SFD                      360         10/26/2006               73.33
      7101622061      44139        O/O                    SFD                      360         10/16/2006               80.00
      7101622632      19009        O/O                    SFD                      360         10/26/2006               80.00
      7101622830      32561        SEC                    CONDO                    240         10/27/2006               75.00
      7102157695      68022        O/O                    PUDDT                    360         10/19/2006               79.87
      7102523680      10019        SEC                    COOP                     240          12/7/2005               44.69
      7102927139      06475        O/O                    SFD                      360         10/25/2006               21.05
      7103043456      10707        O/O                    SFD                      360          10/3/2006               77.70
      7104615633      87501        O/O                    SFD                      360          9/11/2006               71.22
      7104634493      08816        O/O                    SFD                      360          9/25/2006               80.00
      7104636035      75214        O/O                    SFD                      360          9/22/2006               78.26
      7104636183      02186        O/O                    SFD                      360          9/25/2006               67.64
      7104718494      01944        O/O                    SFD                      360         10/19/2006               70.00
      7104768630      19002        O/O                    PUDDT                    360          9/29/2006              100.00
      7104955120      99205        INV                    SFD                      360          9/25/2006              100.00
      7105023076      10591        O/O                    PUDAT                    360          10/6/2006               79.33
      7105329317      08738        O/O                    PUDDT                    360         10/25/2006               22.32
      7105329556      80134        O/O                    PUDDT                    360          9/29/2006               69.39
      7105481704      23225        INV                    SFD                      360          10/6/2006              100.00
      7105686245      06880        O/O                    SFD                      360          9/28/2006               68.64
      7106401248      21601        SEC                    SFD                      240           9/8/2006               76.19
      7106545440      84770        INV                    PUDAT                    360          9/28/2006              100.00
      7108026845      10011        SEC                    CONDO                    360         10/12/2006               84.66

====================================================================================================================================
    Loan ID                ELTV / LTV           Gross           First            Stated            Monthly             Monthly
                          at Origination         Rate           Payment          Maturity          Payment at        Payment as of
                                                                Date             Date           Origination        Cut-off Date
====================================================================================================================================
      0029096450                 52.71        7.0000          7/1/2006         6/1/2036            $4,909.94              $4,909.94
      0029450178                   80.        7.2500         11/1/2006        10/1/2036            $5,522.90              $5,522.90
      0031035983                 87.74        6.6700         11/1/2006        10/1/2026            $3,182.45              $3,182.45
      0031155302                   80.        6.8750         11/1/2006        10/1/2036            $3,416.03              $3,416.03
      0032842213                 67.08        7.1700         11/1/2006        10/1/2036            $2,910.07              $2,910.07
      0034372011                 78.36        6.9700         11/1/2006        10/1/2036            $5,821.55              $5,821.55
      0034577767                 75.31        6.6250         11/1/2006        10/1/2036            $3,125.68              $3,125.68
      0034717678                   80.        6.3750         12/1/2006        11/1/2036            $2,882.28              $2,882.28
      0034781864                   80.        6.2830         11/1/2006        10/1/2036            $3,699.29              $3,699.29
      0034796383                 70.54        6.8750         11/1/2006        10/1/2036            $3,146.69              $3,146.69
      0034824862                 72.63        6.1050         11/1/2006        10/1/2036            $6,032.87              $6,032.87
      0034827089                   80.        6.7500         11/1/2006        10/1/2036            $3,113.28              $3,113.28
      0035071489                   80.        6.6250         11/1/2006        10/1/2036            $5,345.32              $5,345.32
      0035071851                 51.05        6.6250         11/1/2006        10/1/2036            $4,674.28              $4,674.28
      0035074418                   80.        6.5000         10/1/2006         9/1/2036            $3,052.58              $3,052.58
      0035090604                 50.84        6.5000         12/1/2006        11/1/2036            $3,602.79              $3,602.79
      0035092931                 50.91        6.1250         11/1/2006        10/1/2036            $4,253.28              $4,253.28
      0035103167                   80.        6.7500         10/1/2006         9/1/2036            $5,085.01              $5,085.01
      0035103175                 78.58        6.6250         11/1/2006        10/1/2036            $6,402.79              $6,402.79
      0035103456                 69.95        7.0000         10/1/2006         9/1/2026            $4,961.92              $4,961.92
      0035104132                 94.16        6.8750         11/1/2006        10/1/2036            $3,587.49              $3,587.49
      0035104660                   80.        6.7500         10/1/2006         9/1/2036            $5,188.79              $5,188.79
      0035109701                 61.73        6.0000         12/1/2006        11/1/2036            $4,196.86              $4,196.86
      0035110923                   80.        6.3750         11/1/2006        10/1/2036            $3,992.77              $3,992.77
      0035113125                   80.        6.6250         12/1/2006        11/1/2036            $3,559.49              $3,559.49
      0035114172                   80.        6.5000         11/1/2006        10/1/2036            $5,182.96              $5,182.96
      0035115245                 75.22        6.3750         11/1/2006        10/1/2036            $2,651.45              $2,651.45
      0035115815                 69.77        6.2500         12/1/2006        11/1/2036            $3,694.31              $3,694.31
      0035118488                 63.86        6.3750         12/1/2006        11/1/2036            $3,207.01              $3,207.01
      0035121821                   80.        6.3750         12/1/2006        11/1/2036            $3,843.04              $3,843.04
      0035122498                 66.76        6.2500         12/1/2006        11/1/2036            $5,960.15              $5,960.15
      0035122944                 91.67        6.2500         12/1/2006        11/1/2036            $2,709.16              $2,709.16
      0035123306                   80.        6.2500         12/1/2006        11/1/2036            $2,709.16              $2,709.16
      0035123330                 70.59        6.3750         12/1/2006        11/1/2036            $4,117.55              $4,117.55
      0035349539                 79.51        6.3750         11/1/2006        10/1/2036            $4,042.68              $4,042.68
      0035617299                   70.        6.1050         11/1/2006        10/1/2036            $3,395.38              $3,395.38
      0035652544                   80.        6.5000         12/1/2006        11/1/2036            $3,164.90              $3,164.90
      0035704600                   80.        6.4920         11/1/2006        10/1/2036            $2,905.10              $2,905.10
      0038649075                 39.22        6.8750         10/1/2006         9/1/2036            $6,569.29              $6,569.29
      0038650776                 74.27        7.2500          8/1/2006         7/1/2036            $3,820.19              $3,820.19
      0038668471                   80.        6.5000         11/1/2006        10/1/2036            $2,861.31              $2,861.31
      0038684312                 58.82        6.2280         10/1/2006         9/1/2036            $3,071.44              $3,071.44
      0038708707                 72.49        6.2500         11/1/2006        10/1/2036            $3,294.09              $3,294.09
      0038766358                   80.        6.3750         11/1/2006        10/1/2036            $3,343.95              $3,343.95
      0038794558                 71.08        6.1250         10/1/2006         9/1/2036            $2,688.68              $2,688.68
      0038824041                   90.        6.7200         11/1/2006        10/1/2036            $3,375.28              $3,375.28
      0038849469                 52.26        6.4650         10/1/2006         9/1/2036            $3,570.79              $3,570.79
      0038869798                   70.        7.6250         10/1/2006         9/1/2036           $18,455.73             $18,455.73
      0038909982                   80.        6.7500         11/1/2006        10/1/2036            $3,217.05              $3,217.05
      0038928248                   80.        6.3010         10/1/2006         9/1/2036            $4,457.08              $4,457.08
      0038943809                 41.09        6.7500          9/1/2006         8/1/2036            $3,664.58              $3,664.58
      0038955555                 76.24        6.8750         11/1/2006        10/1/2036            $5,859.81              $5,859.81
      0038980694                  63.8        7.1250         12/1/2006        11/1/2036            $3,438.66              $3,438.66
      0038982617                 60.67        5.9050         11/1/2006        10/1/2036            $4,320.37              $4,320.37
      0038988580                 46.53        6.6550          9/1/2006         8/1/2036            $3,018.80              $3,018.80
      0038992160                   80.        6.7500         12/1/2006        11/1/2036            $2,853.84              $2,853.84
      0039005178                 78.01        6.6200         12/1/2006        11/1/2036            $3,519.90              $3,519.90
      0039008339                   80.        6.6250         11/1/2006        10/1/2036            $3,278.40              $3,278.40
      0039021480                 78.37        6.6900         11/1/2006        10/1/2036            $6,188.31              $6,188.31
      0039032446                   80.        6.6250         11/1/2006        10/1/2036            $4,226.06              $4,226.06
      0039039995                   80.        6.5000         11/1/2006        10/1/2036            $2,882.24              $2,882.24
      0039049556                   80.        6.8750         11/1/2006        10/1/2036            $3,232.09              $3,232.09
      0039052436                   80.        6.8750         12/1/2006        11/1/2036            $3,967.86              $3,967.86
      0039071683                 77.84        6.7500         10/1/2006         9/1/2036            $2,801.94              $2,801.94
      0039097860                 74.18        7.0000         10/1/2006         9/1/2036            $5,428.87              $5,428.87
      0039101100                   80.        6.7500         10/1/2006         9/1/2036            $3,694.42              $3,694.42
      0039108055                   80.        6.8750         11/1/2006        10/1/2036            $4,335.74              $4,335.74
      0039109509                 78.69        6.7500         10/1/2006         9/1/2026            $4,577.40              $4,577.40
      0039114210                 67.67        6.8750         10/1/2006         9/1/2036            $8,540.08              $8,540.08
      0039114665                 65.22        6.7500         11/1/2006        10/1/2036            $2,918.70              $2,918.70
      0039117213                   80.        6.7500         10/1/2006         9/1/2036            $3,569.88              $3,569.88
      0039126529                   80.        6.2020         11/1/2006        10/1/2036            $3,074.12              $3,074.12
      0039134937                 79.97        6.7500         12/1/2006        11/1/2036            $3,144.38              $3,144.38
      0039136734                 66.15        5.9250         12/1/2006        11/1/2036            $2,557.37              $2,557.37
      0039136817                 58.39        6.7500         10/1/2006         9/1/2036            $4,118.60              $4,118.60
      0039139118                 70.02        6.8300         11/1/2006        10/1/2036            $6,410.43              $6,410.43
      0039143490                   80.        6.5000         11/1/2006        10/1/2036            $3,033.30              $3,033.30
      0039151840                 72.41        6.6150         11/1/2006        10/1/2036            $3,358.17              $3,358.17
      0039154612                   80.        6.9200         12/1/2006        11/1/2036            $2,798.14              $2,798.14
      0039156377                   80.        6.9600         11/1/2006        10/1/2036            $3,604.65              $3,604.65
      0039164561                   75.        6.8750         11/1/2006        10/1/2036            $3,547.42              $3,547.42
      0039183850                 66.48        6.2500         11/1/2006        10/1/2036            $3,694.31              $3,694.31
      0039192448                   80.        6.2030         12/1/2006        11/1/2036            $3,185.86              $3,185.86
      0039206081                   80.        6.0650         11/1/2006        10/1/2036            $3,066.98              $3,066.98
      0039210083                   40.        6.3350         10/1/2006         9/1/2036            $3,727.54              $3,727.54
      0039213947                   80.        6.6250         12/1/2006        11/1/2036            $3,734.30              $3,734.30
      0039233176                 55.97        6.2900         12/1/2006        11/1/2036            $4,845.03              $4,845.03
      0039244900                 55.11        6.7500         11/1/2006        10/1/2036            $3,567.29              $3,567.29
      0039249446                 76.44        6.7500         12/1/2006        11/1/2036            $4,106.25              $4,106.25
      0039254651                 71.43        6.9600         11/1/2006        10/1/2036            $2,981.79              $2,981.79
      0039257894                   80.        6.3750         11/1/2006        10/1/2036            $3,443.77              $3,443.77
      0039258918                   80.        6.0650         12/1/2006        11/1/2036            $4,395.20              $4,395.20
      0039269071                 63.01        6.3500         12/1/2006        11/1/2036            $2,883.96              $2,883.96
      0039277637                   80.        6.2500         12/1/2006        11/1/2036            $2,886.48              $2,886.48
      0039279252                   80.        6.3750         12/1/2006        11/1/2036            $4,916.09              $4,916.09
      0039281639                 66.67        6.2500         10/1/2006         9/1/2036            $4,310.03              $4,310.03
      0039294343                  72.5        6.7500         11/1/2006        10/1/2036            $2,610.00              $2,610.00
      0039297973                 69.44        6.7500         11/1/2006        10/1/2036            $4,215.89              $4,215.89
      0039298732                 78.67        6.6250         11/1/2006        10/1/2036            $3,777.83              $3,777.83
      0039303391                 46.43        6.2500         12/1/2006        11/1/2036            $3,201.73              $3,201.73
      0039307483                   70.        6.5000         11/1/2006        10/1/2036            $3,318.36              $3,318.36
      0039309851                   80.        6.3750         11/1/2006        10/1/2036            $2,695.12              $2,695.12
      0039317466                   80.        6.0000         11/1/2006        10/1/2036            $2,829.88              $2,829.88
      0039319306                   80.        6.8000         12/1/2006        11/1/2036            $3,989.79              $3,989.79
      0039325469                 43.89        6.6250         11/1/2006        10/1/2026            $4,216.53              $4,216.53
      0039327135                 51.84        6.6100         11/1/2006        10/1/2036            $2,966.21              $2,966.21
      0039327374                   80.        6.7050         10/1/2006         9/1/2036            $3,464.25              $3,464.25
      0039330139                   80.        6.6000         11/1/2006        10/1/2036            $5,104.17              $5,104.17
      0039340864                 43.95        6.6250         11/1/2006        10/1/2036            $7,907.84              $7,907.84
      0039343553                   80.        6.2500         11/1/2006        10/1/2036            $2,856.93              $2,856.93
      0039344577                  51.9        6.5000         11/1/2006        10/1/2036            $2,952.08              $2,952.08
      0039349220                   80.        6.6250         11/1/2006        10/1/2036            $3,252.78              $3,252.78
      0039351077                   80.        6.7500         12/1/2006        11/1/2036            $4,176.92              $4,176.92
      0039354139                 76.67        6.6250         12/1/2006        11/1/2036            $3,174.48              $3,174.48
      0039356209                 78.83        6.5000         12/1/2006        11/1/2036            $2,989.68              $2,989.68
      0039361258                   80.        6.1550         11/1/2006        10/1/2036            $2,962.43              $2,962.43
      0039368105                   80.        6.0780         11/1/2006        10/1/2036            $2,660.13              $2,660.13
      0039371257                   80.        5.9550         10/1/2006         9/1/2036            $3,460.64              $3,460.64
      0039372479                   80.        6.0950         11/1/2006        10/1/2036            $3,607.39              $3,607.39
      0039382361                 52.38        6.4690         11/1/2006        10/1/2036            $3,465.17              $3,465.17
      0039383070                   80.        6.6250         11/1/2006        10/1/2036            $6,402.79              $6,402.79
      0039392592                   80.        6.6700         11/1/2006        10/1/2031            $3,813.43              $3,813.43
      0039393798                   80.        6.1050         11/1/2006        10/1/2036            $3,274.12              $3,274.12
      0039395439                 59.48        6.2050         11/1/2006        10/1/2036            $4,902.35              $4,902.35
      0039396858                   80.        6.6700         11/1/2006        10/1/2036            $3,202.68              $3,202.68
      0039402821                 60.25        6.8350         11/1/2006        10/1/2036            $2,877.43              $2,877.43
      0039404629                   80.        6.5000         11/1/2006        10/1/2036            $3,286.76              $3,286.76
      0039407960                   80.        6.8500         11/1/2006        10/1/2036            $3,276.30              $3,276.30
      0039409552                   80.        6.3750         11/1/2006        10/1/2036            $2,984.60              $2,984.60
      0039422787                   80.        6.7500         12/1/2006        11/1/2036            $3,466.11              $3,466.11
      0039426812                 44.78        6.5900         11/1/2006        10/1/2036            $3,828.00              $3,828.00
      0039434907                 70.14        6.5250         11/1/2006        10/1/2036            $3,244.62              $3,244.62
      0039445911                  62.5        5.9750         11/1/2006        10/1/2036            $3,587.67              $3,587.67
      0039447024                   80.        6.5000         12/1/2006        11/1/2036            $3,944.11              $3,944.11
      0039451570                 79.44        6.2500         12/1/2006        11/1/2026            $6,212.89              $6,212.89
      0039464482                   80.        6.3300         12/1/2006        11/1/2036            $3,587.00              $3,587.00
      0039467758                   80.        6.1550         11/1/2006        10/1/2036            $2,774.69              $2,774.69
      0039479936                   80.        6.0500         11/1/2006        10/1/2036            $3,459.90              $3,459.90
      0039485495                   75.        7.2500         11/1/2006        10/1/2036            $4,425.62              $4,425.62
      0039493978                   80.        5.7140         12/1/2006        11/1/2036            $4,914.04              $4,914.04
      0039494000                   80.        6.7500         11/1/2006        10/1/2036            $4,306.70              $4,306.70
      0039496773                   80.        6.3150         11/1/2006        10/1/2036            $3,161.75              $3,161.75
      0039498241                   90.        6.3330         12/1/2006        11/1/2036            $2,599.42              $2,599.42
      0039500269                   80.        6.1050         11/1/2006        10/1/2036            $4,391.30              $4,391.30
      0039507181                 50.91        6.7500         12/1/2006        11/1/2036            $3,268.94              $3,268.94
      0039515077                 70.55        6.2500         12/1/2006        11/1/2036            $2,866.78              $2,866.78
      0039520267                   90.        6.8750         11/1/2006        10/1/2036            $6,414.91              $6,414.91
      0039521596                 68.52        6.6250         12/1/2006        11/1/2036            $2,895.85              $2,895.85
      0039525530                   80.        6.5000         11/1/2006        10/1/2036            $3,539.59              $3,539.59
      0039525647                   80.        6.5000         12/1/2006        11/1/2036            $3,787.36              $3,787.36
      0039532718                 77.78        6.5000         12/1/2006        11/1/2036            $3,318.36              $3,318.36
      0039538939                   80.        6.3750         12/1/2006        11/1/2036            $3,318.99              $3,318.99
      0039539069                 63.38        6.3500         11/1/2006        10/1/2036            $2,800.07              $2,800.07
      0039542378                   80.        5.9750         11/1/2006        10/1/2036            $3,109.31              $3,109.31
      0039546718                 74.68        6.1500         11/1/2006        10/1/2036            $3,594.45              $3,594.45
      0039551064                   80.        6.1250         12/1/2006        11/1/2036            $2,576.27              $2,576.27
      0039555362                   80.        6.2500         11/1/2006        10/1/2036            $4,310.03              $4,310.03
      0039556212                 86.84        6.3750         12/1/2006        11/1/2036            $2,654.60              $2,654.60
      0039557210                   80.        6.3750         11/1/2006        10/1/2036            $2,760.38              $2,760.38
      0039565593                 72.45        6.1250         12/1/2006        11/1/2036            $3,561.35              $3,561.35
      0039566450                 28.57        6.2500         12/1/2006        11/1/2036            $3,078.59              $3,078.59
      0039569900                   80.        6.3750         12/1/2006        11/1/2036            $3,743.22              $3,743.22
      0039573191                   80.        6.2500         12/1/2006        11/1/2036            $3,571.16              $3,571.16
      0039574686                   80.        6.1250         12/1/2006        11/1/2036            $2,940.84              $2,940.84
      0039576772                   80.        6.5000         12/1/2006        11/1/2036            $3,354.00              $3,354.00
      0039581780                   80.        6.2900         12/1/2006        11/1/2036            $3,141.08              $3,141.08
      0039587191                 79.68        6.5000         11/1/2006        10/1/2036            $3,172.99              $3,172.99
      0039589726                   80.        6.0600         12/1/2006        11/1/2036            $2,775.71              $2,775.71
      0039590864                   80.        6.5000         11/1/2006        10/1/2036            $2,847.62              $2,847.62
      0039590872                 48.39        6.3750         12/1/2006        11/1/2036            $4,679.03              $4,679.03
      0039592332                 66.91        6.2000         11/1/2006        10/1/2036            $3,429.83              $3,429.83
      0039594437                   80.        5.8550         12/1/2006        11/1/2036            $3,366.85              $3,366.85
      0039599493                   80.        6.0000         12/1/2006        11/1/2036            $4,551.79              $4,551.79
      0039599642                 68.45        6.3750         12/1/2006        11/1/2036            $2,775.80              $2,775.80
      0039600416                   80.        6.2500         12/1/2006        11/1/2036            $5,875.00              $5,875.00
      0039600523                 89.93        6.8750         12/1/2006        11/1/2036            $4,519.67              $4,519.67
      0039606884                   80.        6.2500         12/1/2006        11/1/2036            $2,610.64              $2,610.64
      0039626205                  78.9        6.7500         11/1/2006        10/1/2036            $3,326.52              $3,326.52
      0039629738                   95.        6.6250         12/1/2006        11/1/2036            $3,254.39              $3,254.39
      0039630389                   80.        6.5000         12/1/2006        11/1/2036            $4,348.63              $4,348.63
      0039642947                 78.62        6.7050         12/1/2006        11/1/2036            $3,184.88              $3,184.88
      0039648340                 54.41        6.8000         12/1/2006        11/1/2036            $2,466.67              $2,466.67
      0039657150                   80.        6.7500         12/1/2006        11/1/2036            $2,475.00              $2,475.00
      0039664453                   80.        6.6250         12/1/2006        11/1/2036            $3,503.79              $3,503.79
      0039676812                 74.24        6.7050         12/1/2006        11/1/2036            $3,594.79              $3,594.79
      0039677703                  65.1        5.9750         12/1/2006        11/1/2036            $3,737.16              $3,737.16
      0039682869                  57.8        6.2500         12/1/2006        11/1/2036            $3,078.59              $3,078.59
      0039685607                   80.        6.3750         12/1/2006        11/1/2036            $2,869.81              $2,869.81
      0039690086                 74.87        6.4500         12/1/2006        11/1/2036            $3,413.00              $3,413.00
      0039690474                   80.        6.0650         12/1/2006        11/1/2036            $3,347.88              $3,347.88
      0039754957                 85.37        6.2890         11/1/2006        10/1/2036            $3,245.85              $3,245.85
      0039764949                   80.        7.1250         11/1/2006        10/1/2036            $3,206.91              $3,206.91
      0040002511                 60.53        6.6250         12/1/2006        11/1/2036            $3,258.14              $3,258.14
      0040002529                 56.52        6.3750         12/1/2006        11/1/2036            $5,677.22              $5,677.22
      0040003386                 79.26        6.6700         12/1/2006        11/1/2036            $2,906.31              $2,906.31
      0040012858                 40.26        6.6450         12/1/2006        11/1/2036            $4,042.30              $4,042.30
      0040019382                   80.        5.9550         12/1/2006        11/1/2036            $3,389.04              $3,389.04
      0040038598                   80.        6.2900         12/1/2006        11/1/2036            $4,080.92              $4,080.92
      0040088569                 88.55        6.5600         12/1/2006        11/1/2036            $4,674.75              $4,674.75
      7100010789                 47.98        6.7900         10/1/2006         9/1/2036            $3,012.08              $3,012.08
      7100107098                 62.97        7.1250         10/1/2006         9/1/2036           $10,576.96             $10,576.96
      7101449226                   70.        6.7820          8/1/2006         7/1/2036            $5,401.04              $5,401.04
      7101611551                 79.58        6.2900         12/1/2006        11/1/2036            $3,709.93              $3,709.93
      7101615347                 43.67        6.5350         12/1/2006        11/1/2036            $1,662.05              $1,662.05
      7101615602                 62.93        6.7090         12/1/2006        11/1/2036            $3,515.76              $3,515.76
      7101621295                 73.33        6.2500         12/1/2006        11/1/2036            $4,063.73              $4,063.73
      7101622061                   80.        6.0000         12/1/2006        11/1/2036            $4,340.75              $4,340.75
      7101622632                   80.        6.2500         12/1/2006        11/1/2036            $3,411.07              $3,411.07
      7101622830                   75.        6.5400         12/1/2006        11/1/2026            $3,982.73              $3,982.73
      7102157695                 79.87        6.6990         12/1/2006        11/1/2036            $3,839.01              $3,839.01
      7102523680                 44.69        6.3100          2/1/2006         1/1/2026            $2,937.72              $2,937.72
      7102927139                 21.05        6.8750         12/1/2006        11/1/2036            $5,729.17              $5,729.17
      7103043456                  77.7        6.7050         12/1/2006        11/1/2036            $3,661.90              $3,661.90
      7104615633                 71.22        6.7900         11/1/2006        10/1/2036            $3,223.74              $3,223.74
      7104634493                   80.        6.3750         11/1/2006        10/1/2036            $2,819.90              $2,819.90
      7104636035                 78.26        6.4340         11/1/2006        10/1/2036            $3,389.77              $3,389.77
      7104636183                 67.64        6.5600         11/1/2006        10/1/2036            $2,989.81              $2,989.81
      7104718494                   70.        6.7950         12/1/2006        11/1/2036           $10,034.52             $10,034.52
      7104768630                   70.        6.7300         11/1/2006        10/1/2036            $4,123.11              $4,123.11
      7104955120                   70.        6.5000         11/1/2006        10/1/2036            $1,264.14              $1,264.14
      7105023076                 79.33        6.5600         12/1/2006        11/1/2036            $3,027.46              $3,027.46
      7105329317                 22.32        6.7250         12/1/2006        11/1/2036            $5,343.71              $5,343.71
      7105329556                 69.39        6.5900         11/1/2006        10/1/2036            $3,183.62              $3,183.62
      7105481704                   70.        6.3750         12/1/2006        11/1/2036            $2,807.42              $2,807.42
      7105686245                 68.64        6.7500         11/1/2006        10/1/2036            $4,896.92              $4,896.92
      7106401248                   70.        6.1250         11/1/2006        10/1/2026            $5,789.29              $5,789.29
      7106545440                   70.        6.7500         11/1/2006        10/1/2036              $972.25                $972.25
      7108026845                 61.15        6.5000         12/1/2006        11/1/2036           $11,371.54             $11,371.54

======================================================================================================
    Loan ID               Next Due          Loan Amount             Unpaid Principal        Purpose
                            Date              Original             Balance as of Cut-
                                                                        off Date
======================================================================================================
      0029096450        12/1/2006            $738,000.00                  $734,634.91      REFI
      0029450178        12/1/2006            $809,600.00                  $808,968.43      PURCH
      0031035983        12/1/2006            $421,173.00                  $416,866.79      PURCH
      0031155302        12/1/2006            $520,000.00                  $486,479.17      PURCH
      0032842213        12/1/2006            $430,000.00                  $429,659.18      PURCH
      0034372011        12/1/2006            $877,679.00                  $876,955.30      REFI
      0034577767        12/1/2006            $488,150.00                  $487,619.31      PURCH
      0034717678        12/1/2006            $462,000.00                  $462,000.00      PURCH
      0034781864        12/1/2006            $598,720.00                  $598,155.51      PURCH
      0034796383        12/1/2006            $479,000.00                  $478,597.58      PURCH
      0034824862        12/1/2006            $995,000.00                  $993,729.03      PURCH
      0034827089        12/1/2006            $480,000.00                  $479,586.72      PURCH
      0035071489        12/1/2006            $834,800.00                  $834,063.47      PURCH
      0035071851        12/1/2006            $730,000.00                  $729,355.93      PURCH
      0035074418        12/1/2006            $482,950.00                  $482,074.43      PURCH
      0035090604        12/1/2006            $570,000.00                  $570,000.00      PURCH
      0035092931        12/1/2006            $700,000.00                  $598,809.22      PURCH
      0035103167        12/1/2006            $784,000.00                  $782,646.18      PURCH
      0035103175        12/1/2006            $999,950.00                  $998,747.69      PURCH
      0035103456        12/1/2006            $640,000.00                  $637,535.66      REFI
      0035104132        12/1/2006            $546,100.00                  $545,625.28      PURCH
      0035104660        12/1/2006            $800,000.00                  $798,618.55      CASHO
      0035109701        12/1/2006            $700,000.00                  $700,000.00      PURCH
      0035110923        12/1/2006            $640,000.00                  $639,407.23      PURCH
      0035113125        12/1/2006            $555,900.00                  $555,900.00      PURCH
      0035114172        12/1/2006            $820,000.00                  $819,258.71      PURCH
      0035115245        12/1/2006            $425,000.00                  $424,606.36      CASHO
      0035115815        12/1/2006            $600,000.00                  $600,000.00      PURCH
      0035118488        12/1/2006            $514,050.00                  $514,050.00      REFI
      0035121821        12/1/2006            $616,000.00                  $616,000.00      PURCH
      0035122498        12/1/2006            $968,000.00                  $968,000.00      REFI
      0035122944        12/1/2006            $440,000.00                  $440,000.00      PURCH
      0035123306        12/1/2006            $440,000.00                  $440,000.00      PURCH
      0035123330        12/1/2006            $660,000.00                  $660,000.00      REFI
      0035349539        12/1/2006            $648,000.00                  $647,399.82      PURCH
      0035617299        12/1/2006            $560,000.00                  $559,453.62      PURCH
      0035652544        12/1/2006            $500,720.00                  $500,720.00      PURCH
      0035704600        12/1/2006            $460,000.00                  $459,583.50      PURCH
      0038649075        12/1/2006          $1,000,000.00                  $998,314.94      PURCH
      0038650776        12/1/2006            $560,000.00                  $558,236.67      CASHO
      0038668471        12/1/2006            $452,690.00                  $452,280.76      PURCH
      0038684312        12/1/2006            $500,000.00                  $499,044.65      PURCH
      0038708707        12/1/2006            $535,000.00                  $534,492.37      PURCH
      0038766358        12/1/2006            $536,000.00                  $535,453.55      PURCH
      0038794558        12/1/2006            $442,500.00                  $441,637.63      PURCH
      0038824041        12/1/2006            $522,000.00                  $521,547.92      PURCH
      0038849469        12/1/2006            $567,000.00                  $565,965.06      PURCH
      0038869798        12/1/2006          $2,607,500.00                $2,600,791.34      PURCH
      0038909982        12/1/2006            $496,000.00                  $495,572.95      CASHO
      0038928248        12/1/2006            $720,000.00                  $718,643.49      PURCH
      0038943809        12/1/2006            $565,000.00                  $563,532.42      PURCH
      0038955555        12/1/2006            $892,000.00                  $891,250.61      PURCH
      0038980694        12/1/2006            $510,400.00                  $510,400.00      CASHO
      0038982617        12/1/2006            $728,000.00                  $727,262.00      PURCH
      0038988580        12/1/2006            $470,000.00                  $468,743.44      PURCH
      0038992160        12/1/2006            $440,000.00                  $440,000.00      PURCH
      0039005178        12/1/2006            $550,000.00                  $550,000.00      CASHO
      0039008339        12/1/2006            $512,000.00                  $511,548.27      PURCH
      0039021480        12/1/2006            $960,000.00                  $959,163.69      PURCH
      0039032446        12/1/2006            $660,000.00                  $659,417.69      PURCH
      0039039995        12/1/2006            $456,000.00                  $455,587.76      PURCH
      0039049556        12/1/2006            $492,000.00                  $491,425.09      PURCH
      0039052436        12/1/2006            $604,000.00                  $604,000.00      PURCH
      0039071683        12/1/2006            $432,000.00                  $431,254.03      CASHO
      0039097860        12/1/2006            $816,000.00                  $814,658.36      CASHO
      0039101100        12/1/2006            $569,600.00                  $568,616.40      PURCH
      0039108055        12/1/2006            $660,000.00                  $659,445.51      PURCH
      0039109509        12/1/2006            $602,000.00                  $599,611.00      CASHO
      0039114210        12/1/2006          $1,300,000.00                $1,297,809.42      CASHO
      0039114665        12/1/2006            $450,000.00                  $449,612.55      CASHO
      0039117213        12/1/2006            $550,400.00                  $549,191.95      CASHO
      0039126529        12/1/2006            $594,800.00                  $594,800.00      PURCH
      0039134937        12/1/2006            $559,000.00                  $559,000.00      PURCH
      0039136734        12/1/2006            $430,000.00                  $430,000.00      PURCH
      0039136817        12/1/2006            $635,000.00                  $633,903.48      PURCH
      0039139118        12/1/2006            $980,300.00                  $979,469.11      CASHO
      0039143490        12/1/2006            $479,900.00                  $479,350.09      PURCH
      0039151840        12/1/2006            $525,000.00                  $524,535.89      PURCH
      0039154612        12/1/2006            $424,000.00                  $424,000.00      PURCH
      0039156377        12/1/2006            $544,000.00                  $543,550.55      PURCH
      0039164561        12/1/2006            $540,000.00                  $539,439.94      CASHO
      0039183850        12/1/2006            $600,000.00                  $599,430.69      PURCH
      0039192448        12/1/2006            $520,000.00                  $520,000.00      PURCH
      0039206081        12/1/2006            $508,000.00                  $507,500.54      PURCH
      0039210083        12/1/2006            $600,000.00                  $598,876.96      PURCH
      0039213947        12/1/2006            $583,200.00                  $583,200.00      PURCH
      0039233176        12/1/2006            $783,577.78                  $783,577.78      CASHO
      0039244900        12/1/2006            $550,000.00                  $549,526.46      PURCH
      0039249446        12/1/2006            $730,000.00                  $730,000.00      PURCH
      0039254651        12/1/2006            $450,000.00                  $449,628.21      CASHO
      0039257894        12/1/2006            $552,000.00                  $551,488.73      PURCH
      0039258918        12/1/2006            $728,000.00                  $728,000.00      PURCH
      0039269071        12/1/2006            $545,000.00                  $545,000.00      PURCH
      0039277637        12/1/2006            $468,800.00                  $468,800.00      PURCH
      0039279252        12/1/2006            $788,000.00                  $788,000.00      PURCH
      0039281639        12/1/2006            $700,000.00                  $696,618.66      PURCH
      0039294343        12/1/2006            $464,000.00                  $459,449.38      CASHO
      0039297973        12/1/2006            $650,000.00                  $649,440.36      PURCH
      0039298732        12/1/2006            $590,000.00                  $589,479.46      CASHO
      0039303391        12/1/2006            $520,000.00                  $520,000.00      PURCH
      0039307483        12/1/2006            $525,000.00                  $524,525.39      PURCH
      0039309851        12/1/2006            $432,000.00                  $431,599.88      PURCH
      0039317466        12/1/2006            $472,000.00                  $471,530.12      PURCH
      0039319306        12/1/2006            $612,000.00                  $612,000.00      PURCH
      0039325469        12/1/2006            $560,000.00                  $558,875.14      REFI
      0039327135        12/1/2006            $463,962.50                  $463,551.95      REFI
      0039327374        12/1/2006            $620,000.00                  $618,237.37      PURCH
      0039330139        12/1/2006            $799,200.00                  $798,491.43      PURCH
      0039340864        12/1/2006          $1,235,000.00                $1,233,910.39      PURCH
      0039343553        12/1/2006            $464,000.00                  $463,416.67      PURCH
      0039344577        12/1/2006            $545,000.00                  $544,952.08      PURCH
      0039349220        12/1/2006            $508,000.00                  $507,535.29      CASHO
      0039351077        12/1/2006            $643,992.00                  $643,992.00      PURCH
      0039354139        12/1/2006            $575,000.00                  $567,800.72      PURCH
      0039356209        12/1/2006            $473,000.00                  $473,000.00      CASHO
      0039361258        12/1/2006            $486,000.00                  $485,530.35      PURCH
      0039368105        12/1/2006            $440,000.00                  $439,568.47      PURCH
      0039371257        12/1/2006            $580,000.00                  $578,832.33      PURCH
      0039372479        12/1/2006            $595,600.00                  $595,017.76      PURCH
      0039382361        12/1/2006            $550,000.00                  $549,499.79      PURCH
      0039383070        12/1/2006            $999,950.00                  $998,747.69      PURCH
      0039392592        12/1/2006            $556,000.00                  $555,277.00      PURCH
      0039393798        12/1/2006            $540,000.00                  $539,473.13      PURCH
      0039395439        12/1/2006            $800,000.00                  $799,234.32      PURCH
      0039396858        12/1/2006            $497,860.00                  $497,424.59      PURCH
      0039402821        12/1/2006            $439,800.00                  $439,427.60      REFI
      0039404629        12/1/2006            $520,000.00                  $519,529.91      PURCH
      0039407960        12/1/2006            $500,000.00                  $499,577.87      PURCH
      0039409552        12/1/2006            $478,400.00                  $477,956.90      PURCH
      0039422787        12/1/2006            $534,400.00                  $534,400.00      PURCH
      0039426812        12/1/2006            $600,000.00                  $599,467.00      PURCH
      0039434907        12/1/2006            $512,000.00                  $511,539.38      CASHO
      0039445911        12/1/2006            $600,000.00                  $599,399.83      PURCH
      0039447024        12/1/2006            $624,000.00                  $624,000.00      PURCH
      0039451570        12/1/2006            $850,000.00                  $850,000.00      PURCH
      0039464482        12/1/2006            $680,000.00                  $679,243.52      PURCH
      0039467758        12/1/2006            $455,200.00                  $454,760.11      PURCH
      0039479936        12/1/2006            $574,000.00                  $573,434.02      PURCH
      0039485495        12/1/2006            $648,750.00                  $648,243.91      CASHO
      0039493978        12/1/2006          $1,032,000.00                $1,032,000.00      PURCH
      0039494000        12/1/2006            $664,000.00                  $663,428.30      PURCH
      0039496773        12/1/2006            $510,000.00                  $509,522.13      PURCH
      0039498241        12/1/2006            $418,500.00                  $418,500.00      CASHO
      0039500269        12/1/2006            $724,256.00                  $723,549.35      PURCH
      0039507181        12/1/2006            $504,000.00                  $504,000.00      CASHO
      0039515077        12/1/2006            $465,600.00                  $465,600.00      PURCH
      0039520267        12/1/2006            $976,500.00                  $975,679.62      PURCH
      0039521596        12/1/2006            $452,255.56                  $452,255.56      CASHO
      0039525530        12/1/2006            $560,000.00                  $559,493.74      CASHO
      0039525647        12/1/2006            $599,200.00                  $599,200.00      PURCH
      0039532718        12/1/2006            $525,000.00                  $525,000.00      PURCH
      0039538939        12/1/2006            $532,000.00                  $532,000.00      PURCH
      0039539069        12/1/2006            $450,000.00                  $449,581.18      PURCH
      0039542378        12/1/2006            $520,000.00                  $519,479.86      PURCH
      0039546718        12/1/2006            $590,000.00                  $589,429.30      PURCH
      0039551064        12/1/2006            $424,000.00                  $424,000.00      PURCH
      0039555362        12/1/2006            $700,000.00                  $699,335.80      PURCH
      0039556212        12/1/2006            $425,505.00                  $425,505.00      CASHO
      0039557210        12/1/2006            $519,600.00                  $519,600.00      PURCH
      0039565593        12/1/2006            $586,124.00                  $586,124.00      REFI
      0039566450        12/1/2006            $500,000.00                  $500,000.00      PURCH
      0039569900        12/1/2006            $600,000.00                  $600,000.00      PURCH
      0039573191        12/1/2006            $580,000.00                  $580,000.00      PURCH
      0039574686        12/1/2006            $484,000.00                  $484,000.00      PURCH
      0039576772        12/1/2006            $619,200.00                  $617,824.14      PURCH
      0039581780        12/1/2006            $508,000.00                  $508,000.00      PURCH
      0039587191        12/1/2006            $502,000.00                  $501,546.18      REFI
      0039589726        12/1/2006            $460,000.00                  $460,000.00      PURCH
      0039590864        12/1/2006            $450,524.00                  $450,116.72      PURCH
      0039590872        12/1/2006            $750,000.00                  $750,000.00      CASHO
      0039592332        12/1/2006            $560,000.00                  $559,463.50      PURCH
      0039594437        12/1/2006            $570,400.00                  $570,400.00      PURCH
      0039599493        12/1/2006            $759,200.00                  $759,200.00      PURCH
      0039599642        12/1/2006            $444,933.00                  $444,933.00      CASHO
      0039600416        12/1/2006          $1,128,000.00                $1,128,000.00      PURCH
      0039600523        12/1/2006            $688,000.00                  $688,000.00      PURCH
      0039606884        12/1/2006            $424,000.00                  $424,000.00      CASHO
      0039626205        12/1/2006            $512,878.00                  $512,436.42      CASHO
      0039629738        12/1/2006            $508,250.00                  $508,250.00      PURCH
      0039630389        12/1/2006            $688,000.00                  $688,000.00      PURCH
      0039642947        12/1/2006            $570,000.00                  $566,742.04      CASHO
      0039648340        12/1/2006            $435,295.37                  $434,269.05      CASHO
      0039657150        12/1/2006            $440,000.00                  $439,027.30      PURCH
      0039664453        12/1/2006            $547,200.00                  $547,200.00      PURCH
      0039676812        12/1/2006            $556,806.09                  $556,806.09      CASHO
      0039677703        12/1/2006            $625,000.00                  $625,000.00      PURCH
      0039682869        12/1/2006            $500,000.00                  $500,000.00      PURCH
      0039685607        12/1/2006            $460,000.00                  $460,000.00      PURCH
      0039690086        12/1/2006            $542,792.70                  $542,792.70      CASHO
      0039690474        12/1/2006            $662,400.00                  $660,539.72      PURCH
      0039754957        12/1/2006            $525,000.00                  $524,505.59      PURCH
      0039764949        12/1/2006            $476,000.00                  $475,555.23      PURCH
      0040002511        12/1/2006            $590,154.05                  $590,154.05      REFI
      0040002529        12/1/2006            $910,000.00                  $910,000.00      PURCH
      0040003386        12/1/2006            $451,787.71                  $451,787.71      REFI
      0040012858        12/1/2006            $630,000.00                  $630,000.00      CASHO
      0040019382        12/1/2006            $568,000.00                  $568,000.00      PURCH
      0040038598        12/1/2006            $660,000.00                  $660,000.00      PURCH
      0040088569        12/1/2006            $735,000.00                  $735,000.00      PURCH
      7100010789        12/1/2006            $462,500.00                  $459,701.91      REFI
      7100107098        12/1/2006          $1,569,937.50                $1,567,419.13      PURCH
      7101449226        12/1/2006            $830,000.00                  $827,135.19      PURCH
      7101611551        12/1/2006            $600,000.00                  $600,000.00      PURCH
      7101615347        12/1/2006            $262,000.00                  $262,000.00      CASHO
      7101615602        12/1/2006            $544,339.44                  $544,339.44      CASHO
      7101621295        12/1/2006            $660,000.00                  $660,000.00      CASHO
      7101622061        12/1/2006            $724,000.00                  $724,000.00      CASHO
      7101622632        12/1/2006            $554,000.00                  $554,000.00      REFI
      7101622830        12/1/2006            $532,500.00                  $532,500.00      PURCH
      7102157695        12/1/2006            $595,000.00                  $595,000.00      PURCH
      7102523680        12/1/2006            $400,000.00                  $391,455.89      CASHO
      7102927139        12/1/2006          $1,000,000.00                $1,000,000.00      CASHO
      7103043456        12/1/2006            $567,200.00                  $567,200.00      PURCH
      7104615633        12/1/2006            $495,000.00                  $494,577.13      CASHO
      7104634493        12/1/2006            $452,000.00                  $451,581.35      PURCH
      7104636035        12/1/2006            $540,000.00                  $538,017.70      PURCH
      7104636183        12/1/2006            $470,081.47                  $469,661.44      CASHO
      7104718494        12/1/2006          $1,540,000.00                $1,540,000.00      PURCH
      7104768630        12/1/2006            $637,000.00                  $635,612.84      PURCH
      7104955120        12/1/2006            $200,000.00                  $199,819.19      PURCH
      7105023076        12/1/2006            $476,000.00                  $476,000.00      PURCH
      7105329317        12/1/2006            $826,000.00                  $826,000.00      CASHO
      7105329556        12/1/2006            $499,000.00                  $498,440.34      PURCH
      7105481704        12/1/2006            $450,000.00                  $450,000.00      PURCH
      7105686245        12/1/2006            $755,000.00                  $754,349.96      CASHO
      7106401248        12/1/2006            $800,000.00                  $798,294.04      PURCH
      7106545440        12/1/2006            $149,900.00                  $149,770.94      PURCH
      7108026845        12/1/2006          $1,799,100.00                $1,799,100.00      PURCH

==========================================================================================================================
    Loan ID                                Doc                            MI Flag        MI Company           MI Cert
==========================================================================================================================
      0029096450      Full                                               N              XX
      0029450178      Full                                               N              XX
      0031035983      Full                                               Y              GEMICO            3874976777
      0031155302      Full                                               N              XX
      0032842213      Full                                               N              XX
      0034372011      Full                                               N              XX
      0034577767      Full                                               N              XX
      0034717678      Full                                               N              XX
      0034781864      Full                                               N              XX
      0034796383      Full                                               N              XX
      0034824862      Full                                               N              XX
      0034827089      Reduced - Alt Income Verified Assets               N              XX
      0035071489      Full                                               N              XX
      0035071851      Full                                               N              XX
      0035074418      Full                                               N              XX
      0035090604      Reduced - Alt Income Verified Assets               N              XX
      0035092931      Full                                               N              XX
      0035103167      Full                                               N              XX
      0035103175      Full                                               N              XX
      0035103456      Full                                               N              XX
      0035104132      Full                                               Y              GEMICO            6300899543
      0035104660      Full                                               N              XX
      0035109701      Full                                               N              XX
      0035110923      Full                                               N              XX
      0035113125      Full                                               N              XX
      0035114172      Full                                               N              XX
      0035115245      Full                                               N              XX
      0035115815      Full                                               N              XX
      0035118488      Full                                               N              XX
      0035121821      Full                                               N              XX
      0035122498      Full                                               N              XX
      0035122944      Reduced - Alt Income Verified Assets               Y              UGI               10890408
      0035123306      Full                                               N              XX
      0035123330      Full                                               N              XX
      0035349539      Reduced - Alt Income Verified Assets               N              XX
      0035617299      Full                                               N              XX
      0035652544      Full                                               N              XX
      0035704600      Full                                               N              XX
      0038649075      Full                                               N              XX
      0038650776      Full                                               N              XX
      0038668471      Full                                               N              XX
      0038684312      Full                                               N              XX
      0038708707      Full                                               N              XX
      0038766358      Full                                               N              XX
      0038794558      Full                                               N              XX
      0038824041      Full                                               Y              GEMICO            3876046688
      0038849469      Stated Income / Stated Assets                      N              XX
      0038869798      Full                                               N              XX
      0038909982      Full                                               N              XX
      0038928248      Full                                               N              XX
      0038943809      Stated Income / Stated Assets                      N              XX
      0038955555      Full                                               N              XX
      0038980694      Full                                               N              XX
      0038982617      Full                                               N              XX
      0038988580      Stated Income / Stated Assets                      N              XX
      0038992160      Full                                               N              XX
      0039005178      Full                                               N              XX
      0039008339      Reduced - Alt Income Verified Assets               N              XX
      0039021480      Full                                               N              XX
      0039032446      Full                                               N              XX
      0039039995      Full                                               N              XX
      0039049556      Full                                               N              XX
      0039052436      Full                                               N              XX
      0039071683      Full                                               N              XX
      0039097860      Full                                               N              XX
      0039101100      Full                                               N              XX
      0039108055      Full                                               N              XX
      0039109509      Full                                               N              XX
      0039114210      Full                                               N              XX
      0039114665      Full                                               N              XX
      0039117213      Full                                               N              XX
      0039126529      Reduced - Alt Income Verified Assets               N              XX
      0039134937      Full                                               N              XX
      0039136734      Full                                               N              XX
      0039136817      Stated Income / Stated Assets                      N              XX
      0039139118      Full                                               N              XX
      0039143490      Full                                               N              XX
      0039151840      Full                                               N              XX
      0039154612      Full                                               N              XX
      0039156377      Full                                               N              XX
      0039164561      Full                                               N              XX
      0039183850      Full                                               N              XX
      0039192448      Full                                               N              XX
      0039206081      Full                                               N              XX
      0039210083      Full                                               N              XX
      0039213947      Full                                               N              XX
      0039233176      Full                                               N              XX
      0039244900      Full                                               N              XX
      0039249446      Full                                               N              XX
      0039254651      Limited Doc - Stated Income Full Asset             N              XX
      0039257894      Full                                               N              XX
      0039258918      Full                                               N              XX
      0039269071      Full                                               N              XX
      0039277637      Full                                               N              XX
      0039279252      Full                                               N              XX
      0039281639      Full                                               N              XX
      0039294343      Full                                               N              XX
      0039297973      Full                                               N              XX
      0039298732      Full                                               N              XX
      0039303391      Full                                               N              XX
      0039307483      Full                                               N              XX
      0039309851      Full                                               N              XX
      0039317466      Full                                               N              XX
      0039319306      Full                                               N              XX
      0039325469      Full                                               N              XX
      0039327135      Stated Income / Stated Assets                      N              XX
      0039327374      Full                                               N              XX
      0039330139      Full                                               N              XX
      0039340864      Full                                               N              XX
      0039343553      Full                                               N              XX
      0039344577      Full                                               N              XX
      0039349220      Full                                               N              XX
      0039351077      Full                                               N              XX
      0039354139      Full                                               N              XX
      0039356209      Full                                               N              XX
      0039361258      Full                                               N              XX
      0039368105      Full                                               N              XX
      0039371257      Full                                               N              XX
      0039372479      Full                                               N              XX
      0039382361      Full                                               N              XX
      0039383070      Full                                               N              XX
      0039392592      Reduced - Alt Income Verified Assets               N              XX
      0039393798      Full                                               N              XX
      0039395439      Full                                               N              XX
      0039396858      Full                                               N              XX
      0039402821      Full                                               N              XX
      0039404629      Full                                               N              XX
      0039407960      Full                                               N              XX
      0039409552      Full                                               N              XX
      0039422787      Full                                               N              XX
      0039426812      Stated Income / Stated Assets                      N              XX
      0039434907      Full                                               N              XX
      0039445911      Full                                               N              XX
      0039447024      Full                                               N              XX
      0039451570      Full                                               N              XX
      0039464482      Full                                               N              XX
      0039467758      Full                                               N              XX
      0039479936      Full                                               N              XX
      0039485495      Full                                               N              XX
      0039493978      Full                                               N              XX
      0039494000      Full                                               N              XX
      0039496773      Full                                               N              XX
      0039498241      Full                                               Y              UGI               10842164
      0039500269      Reduced - Alt Income Verified Assets               N              XX
      0039507181      Full                                               N              XX
      0039515077      Full                                               N              XX
      0039520267      Full                                               Y              GEMICO            3876228093
      0039521596      Full                                               N              XX
      0039525530      Full                                               N              XX
      0039525647      Full                                               N              XX
      0039532718      Full                                               N              XX
      0039538939      Full                                               N              XX
      0039539069      Full                                               N              XX
      0039542378      Full                                               N              XX
      0039546718      Full                                               N              XX
      0039551064      Full                                               N              XX
      0039555362      Full                                               N              XX
      0039556212      Full                                               Y              UGI               10857807
      0039557210      Full                                               N              XX
      0039565593      Full                                               N              XX
      0039566450      Full                                               N              XX
      0039569900      Full                                               N              XX
      0039573191      Full                                               N              XX
      0039574686      Full                                               N              XX
      0039576772      Full                                               N              XX
      0039581780      Full                                               N              XX
      0039587191      Full                                               N              XX
      0039589726      Full                                               N              XX
      0039590864      Full                                               N              XX
      0039590872      Full                                               N              XX
      0039592332      Stated Income / Stated Assets                      N              XX
      0039594437      Full                                               N              XX
      0039599493      Full                                               N              XX
      0039599642      Full                                               N              XX
      0039600416      Full                                               N              XX
      0039600523      Full                                               Y              GEMICO            6300924491
      0039606884      Full                                               N              XX
      0039626205      Full                                               N              XX
      0039629738      Full                                               Y              UGI               10921036
      0039630389      Full                                               N              XX
      0039642947      Full                                               N              XX
      0039648340      Full                                               N              XX
      0039657150      Full                                               N              XX
      0039664453      Full                                               N              XX
      0039676812      Full                                               N              XX
      0039677703      Stated Income / Stated Assets                      N              XX
      0039682869      Stated Income / Stated Assets                      N              XX
      0039685607      Full                                               N              XX
      0039690086      Full                                               N              XX
      0039690474      Full                                               N              XX
      0039754957      Full                                               Y              UGI               10801444
      0039764949      Full                                               N              XX
      0040002511      Limited Doc - Stated Income Full Asset             N              XX
      0040002529      Full                                               N              XX
      0040003386      Full                                               N              XX
      0040012858      Full                                               N              XX
      0040019382      Full                                               N              XX
      0040038598      Full                                               N              XX
      0040088569      Full                                               Y              GEMICO            3876354641
      7100010789      Full                                               N              XX
      7100107098      Full                                               N              XX
      7101449226      Loan Star 3/Alt Income Verified Assets             N
      7101611551      Full                                               N              XX
      7101615347      Full                                               N              XX
      7101615602      Loan Star 3/Alt Income Verified Assets             N              XX
      7101621295      Full                                               N              XX
      7101622061      Full                                               N              XX
      7101622632      Full                                               N              XX
      7101622830      Full                                               N              XX
      7102157695      Loan Star 3/Alt Income Verified Assets             N              XX
      7102523680      Full                                               N              XX
      7102927139      Full                                               N              XX
      7103043456      Full                                               N              XX
      7104615633      Full                                               N              XX
      7104634493      Full                                               N              XX
      7104636035      Full                                               N              XX
      7104636183      Full                                               N              XX
      7104718494      Full                                               N              XX
      7104768630      Loan Star 5/No Income Verified Assets              N
      7104955120      Full                                               N
      7105023076      Full                                               N              XX
      7105329317      Loan Star 5/No Income Verified Assets              N              XX
      7105329556      Full                                               N              XX
      7105481704      Full                                               N
      7105686245      Loan Star 3/Alt Income Verified Assets             N              XX
      7106401248      Full                                               N
      7106545440      Full                                               N
      7108026845      Full                                               N

=======================================================================================================================================
    Loan ID                MI                Appraised          Purchase         Servicing             Lender / Seller       Lender
                        Coverage               Value             Price              Fee                    Funded            Funded
                                                                                                           Buydown             MI
==============================================================================================     ------------------------============
      0029096450                           $1,400,000                 $0                0.250      N                       0.000000
      0029450178                           $1,012,000         $1,026,495                0.250      N                       0.000000
      0031035983                12%          $480,000           $514,896                0.250      N                       0.000000
      0031155302                             $650,000           $696,156                0.250      N                       0.000000
      0032842213                             $649,000           $641,000                0.250      N                       0.000000
      0034372011                           $1,120,000                 $0                0.250      N                       0.000000
      0034577767                             $650,000           $648,150                0.250      N                       0.000000
      0034717678                             $580,000           $577,500                0.250      N                       0.000000
      0034781864                             $765,000           $748,400                0.250      N                       0.000000
      0034796383                             $679,000           $679,000                0.250      N                       0.000000
      0034824862                           $1,403,000         $1,370,000                0.250      N                       0.000000
      0034827089                             $600,000           $600,000                0.250      N                       0.000000
      0035071489                           $1,045,000         $1,043,500                0.250      N                       0.000000
      0035071851                           $1,435,000         $1,430,000                0.250      N                       0.000000
      0035074418                             $604,000           $603,700                0.250      N                       0.000000
      0035090604                           $1,150,000         $1,121,216                0.250      N                       0.000000
      0035092931                           $1,380,000         $1,375,000                0.250      N                       0.000000
      0035103167                           $1,030,000           $980,000                0.250      N                       0.000000
      0035103175                           $1,300,000         $1,272,500                0.250      N                       0.000000
      0035103456                             $915,000                 $0                0.250      N                       0.000000
      0035104132                30%          $580,000           $575,000                0.250      N                       0.000000
      0035104660                           $1,000,000                 $0                0.250      N                       0.000000
      0035109701                           $1,140,000         $1,134,000                0.250      N                       0.000000
      0035110923                             $807,000           $800,000                0.250      N                       0.000000
      0035113125                             $700,000           $694,900                0.250      N                       0.000000
      0035114172                           $1,025,000         $1,025,000                0.250      N                       0.000000
      0035115245                             $565,000                 $0                0.250      N                       0.000000
      0035115815                             $860,000           $860,000                0.250      N                       0.000000
      0035118488                             $805,000                 $0                0.250      N                       0.000000
      0035121821                             $770,000           $770,000                0.250      N                       0.000000
      0035122498                           $1,450,000                 $0                0.250      N                       0.000000
      0035122944                30%          $485,000           $480,000                0.250      N                       0.000000
      0035123306                             $600,000           $550,000                0.250      N                       0.000000
      0035123330                             $935,000                 $0                0.250      N                       0.000000
      0035349539                             $815,000           $810,000                0.250      N                       0.000000
      0035617299                             $800,000           $800,000                0.250      N                       0.000000
      0035652544                             $626,000           $625,900                0.250      N                       0.000000
      0035704600                             $575,000           $575,000                0.250      N                       0.000000
      0038649075                           $2,550,000         $2,768,705                0.250      N                       0.000000
      0038650776                             $754,000                 $0                0.250      N                       0.000000
      0038668471                             $570,000           $565,865                0.250      Y                       0.000000
      0038684312                             $925,000           $850,000                0.250      N                       0.000000
      0038708707                             $741,000           $738,000                0.250      N                       0.000000
      0038766358                             $675,000           $670,000                0.250      N                       0.000000
      0038794558                             $623,000           $622,500                0.250      N                       0.000000
      0038824041                25%          $600,000           $580,000                0.250      N                       0.000000
      0038849469                           $1,100,000         $1,084,900                0.250      Y                       0.000000
      0038869798                           $3,725,000         $3,725,000                0.250      N                       0.000000
      0038909982                             $620,000                 $0                0.250      N                       0.000000
      0038928248                             $915,000           $900,000                0.250      N                       0.000000
      0038943809                           $1,375,000         $1,375,000                0.250      N                       0.000000
      0038955555                           $1,170,000         $1,115,000                0.250      N                       0.000000
      0038980694                             $800,000                 $0                0.250      N                       0.000000
      0038982617                           $1,200,000         $1,200,000                0.250      N                       0.000000
      0038988580                           $1,050,000         $1,010,000                0.250      N                       0.000000
      0038992160                             $550,000           $550,000                0.250      N                       0.000000
      0039005178                             $705,000                 $0                0.250      N                       0.000000
      0039008339                             $645,000           $640,000                0.250      N                       0.000000
      0039021480                           $1,225,000         $1,225,000                0.250      N                       0.000000
      0039032446                             $851,000           $825,000                0.250      N                       0.000000
      0039039995                             $575,000           $570,000                0.250      Y                       0.000000
      0039049556                             $620,000           $615,000                0.250      N                       0.000000
      0039052436                             $755,000           $755,000                0.250      N                       0.000000
      0039071683                             $555,000                 $0                0.250      N                       0.000000
      0039097860                           $1,100,000                 $0                0.250      N                       0.000000
      0039101100                             $712,000           $712,000                0.250      N                       0.000000
      0039108055                             $850,000           $825,000                0.250      N                       0.000000
      0039109509                             $765,000                 $0                0.250      N                       0.000000
      0039114210                           $1,921,125                 $0                0.250      N                       0.000000
      0039114665                             $690,000                 $0                0.250      N                       0.000000
      0039117213                             $688,000                 $0                0.250      N                       0.000000
      0039126529                             $870,000           $743,512                0.250      N                       0.000000
      0039134937                             $700,000           $699,000                0.250      N                       0.000000
      0039136734                             $665,000           $650,000                0.250      N                       0.000000
      0039136817                           $1,100,000         $1,087,500                0.250      N                       0.000000
      0039139118                           $1,400,000                 $0                0.250      N                       0.000000
      0039143490                             $610,000           $599,900                0.250      N                       0.000000
      0039151840                             $735,000           $725,000                0.250      N                       0.000000
      0039154612                             $530,000           $540,000                0.250      N                       0.000000
      0039156377                             $760,000           $680,000                0.250      N                       0.000000
      0039164561                             $720,000                 $0                0.250      N                       0.000000
      0039183850                             $925,000           $902,500                0.250      N                       0.000000
      0039192448                             $665,000           $650,000                0.250      N                       0.000000
      0039206081                             $635,000           $635,000                0.250      N                       0.000000
      0039210083                           $1,720,000         $1,500,000                0.250      N                       0.000000
      0039213947                             $735,000           $729,000                0.250      N                       0.000000
      0039233176                           $1,400,000                 $0                0.250      N                       0.000000
      0039244900                           $1,040,000           $998,000                0.250      N                       0.000000
      0039249446                             $970,000           $955,000                0.250      N                       0.000000
      0039254651                             $630,000                 $0                0.250      N                       0.000000
      0039257894                             $690,000           $690,000                0.250      N                       0.000000
      0039258918                             $910,000           $905,000                0.250      N                       0.000000
      0039269071                             $865,000           $875,000                0.250      N                       0.000000
      0039277637                             $600,000           $586,000                0.250      N                       0.000000
      0039279252                             $990,000           $985,000                0.250      N                       0.000000
      0039281639                           $1,100,000         $1,050,000                0.250      N                       0.000000
      0039294343                             $640,000                 $0                0.250      N                       0.000000
      0039297973                             $936,000           $936,000                0.250      N                       0.000000
      0039298732                             $750,000                 $0                0.250      N                       0.000000
      0039303391                           $1,120,000         $1,120,000                0.250      N                       0.000000
      0039307483                             $750,000           $750,000                0.250      N                       0.000000
      0039309851                             $540,000           $540,000                0.250      N                       0.000000
      0039317466                             $590,000           $600,000                0.250      N                       0.000000
      0039319306                             $772,000           $765,000                0.250      N                       0.000000
      0039325469                           $1,276,000                 $0                0.250      N                       0.000000
      0039327135                             $895,000                 $0                0.250      N                       0.000000
      0039327374                             $785,000           $775,000                0.250      N                       0.000000
      0039330139                           $1,000,000           $999,000                0.250      N                       0.000000
      0039340864                           $2,850,000         $2,810,000                0.250      N                       0.000000
      0039343553                             $580,000           $580,000                0.250      N                       0.000000
      0039344577                           $1,050,000         $1,050,000                0.250      N                       0.000000
      0039349220                             $635,000                 $0                0.250      N                       0.000000
      0039351077                             $810,000           $804,990                0.250      N                       0.000000
      0039354139                             $750,008           $750,000                0.250      N                       0.000000
      0039356209                             $600,000                 $0                0.250      N                       0.000000
      0039361258                             $608,000           $607,500                0.250      N                       0.000000
      0039368105                             $550,000           $550,000                0.250      N                       0.000000
      0039371257                             $730,000           $725,000                0.250      Y                       0.000000
      0039372479                             $744,500           $744,500                0.250      N                       0.000000
      0039382361                           $1,050,000         $1,050,000                0.250      N                       0.000000
      0039383070                           $1,325,000         $1,250,000                0.250      N                       0.000000
      0039392592                             $704,000           $695,000                0.250      N                       0.000000
      0039393798                             $680,000           $675,000                0.250      N                       0.000000
      0039395439                           $1,375,000         $1,345,000                0.250      N                       0.000000
      0039396858                             $625,000           $622,325                0.250      N                       0.000000
      0039402821                             $730,000                 $0                0.250      N                       0.000000
      0039404629                             $650,000           $650,000                0.250      N                       0.000000
      0039407960                             $660,000           $625,000                0.250      N                       0.000000
      0039409552                             $599,000           $598,000                0.250      N                       0.000000
      0039422787                             $675,000           $668,000                0.250      N                       0.000000
      0039426812                           $1,340,000         $1,338,000                0.250      N                       0.000000
      0039434907                             $730,000                 $0                0.250      N                       0.000000
      0039445911                           $1,040,000           $960,000                0.250      N                       0.000000
      0039447024                             $780,000           $780,000                0.250      N                       0.000000
      0039451570                           $1,070,000         $1,200,000                0.250      N                       0.000000
      0039464482                             $850,000           $850,000                0.250      N                       0.000000
      0039467758                             $717,500           $569,000                0.250      N                       0.000000
      0039479936                             $718,000           $717,500                0.250      N                       0.000000
      0039485495                             $865,000                 $0                0.250      N                       0.000000
      0039493978                           $1,290,000         $1,290,000                0.250      N                       0.000000
      0039494000                             $850,000           $830,000                0.250      N                       0.000000
      0039496773                             $638,000           $637,500                0.250      N                       0.000000
      0039498241                25%          $465,000                 $0                0.250      N                       0.000000
      0039500269                             $915,000           $905,320                0.250      Y                       0.000000
      0039507181                             $990,000                 $0                0.250      N                       0.000000
      0039515077                             $660,000           $582,000                0.250      N                       0.000000
      0039520267                25%        $1,095,000         $1,085,000                0.250      N                       0.000000
      0039521596                             $660,000                 $0                0.250      N                       0.000000
      0039525530                             $700,000                 $0                0.250      N                       0.000000
      0039525647                             $750,000           $749,000                0.250      N                       0.000000
      0039532718                             $675,000           $675,000                0.250      N                       0.000000
      0039538939                             $685,000           $665,000                0.250      N                       0.000000
      0039539069                             $714,000           $710,000                0.250      N                       0.000000
      0039542378                             $675,000           $650,000                0.250      N                       0.000000
      0039546718                             $790,000           $790,000                0.250      N                       0.000000
      0039551064                             $540,000           $530,000                0.250      N                       0.000000
      0039555362                             $883,000           $875,000                0.250      N                       0.000000
      0039556212                25%          $490,000                 $0                0.250      N                       0.000000
      0039557210                             $650,000           $649,500                0.250      N                       0.000000
      0039565593                             $809,000                 $0                0.250      N                       0.000000
      0039566450                           $1,750,000         $1,750,000                0.250      N                       0.000000
      0039569900                             $800,000           $750,000                0.250      N                       0.000000
      0039573191                             $728,000           $725,000                0.250      N                       0.000000
      0039574686                             $620,000           $605,000                0.250      N                       0.000000
      0039576772                             $785,000           $774,000                0.250      N                       0.000000
      0039581780                             $650,000           $635,000                0.250      N                       0.000000
      0039587191                             $630,000                 $0                0.250      N                       0.000000
      0039589726                             $595,000           $575,000                0.250      N                       0.000000
      0039590864                             $572,000           $563,155                0.250      N                       0.000000
      0039590872                           $1,550,000                 $0                0.250      N                       0.000000
      0039592332                             $837,000           $837,000                0.250      N                       0.000000
      0039594437                             $713,900           $713,000                0.250      N                       0.000000
      0039599493                             $953,000           $949,000                0.250      N                       0.000000
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      0039600416                           $1,410,000         $1,410,000                0.250      N                       0.000000
      0039600523                25%          $765,000           $765,000                0.250      N                       0.000000
      0039606884                             $530,000                 $0                0.250      N                       0.000000
      0039626205                             $650,000                 $0                0.250      N                       0.000000
      0039629738                30%          $560,000           $535,000                0.250      N                       0.000000
      0039630389                             $860,000           $860,000                0.250      N                       0.000000
      0039642947                             $725,000                 $0                0.250      N                       0.000000
      0039648340                             $800,000                 $0                0.250      N                       0.000000
      0039657150                             $589,000           $550,000                0.250      N                       0.000000
      0039664453                             $685,000           $684,000                0.250      N                       0.000000
      0039676812                             $750,000                 $0                0.250      N                       0.000000
      0039677703                           $1,010,000           $960,000                0.250      Y                       0.000000
      0039682869                             $875,000           $865,000                0.250      N                       0.000000
      0039685607                             $575,000           $575,000                0.250      N                       0.000000
      0039690086                             $725,000                 $0                0.250      N                       0.000000
      0039690474                             $840,000           $828,000                0.250      N                       0.000000
      0039754957                25%          $620,000           $615,000                0.250      N                       0.000000
      0039764949                             $595,000           $595,000                0.250      N                       0.000000
      0040002511                             $975,000                 $0                0.250      N                       0.000000
      0040002529                           $1,617,000         $1,610,000                0.250      N                       0.000000
      0040003386                             $570,000                 $0                0.250      N                       0.000000
      0040012858                           $1,565,000                 $0                0.250      N                       0.000000
      0040019382                             $710,000           $710,000                0.250      N                       0.000000
      0040038598                           $1,050,000           $825,000                0.250      N                       0.000000
      0040088569                25%          $830,000                 $0                0.250      N                       0.000000
      7100010789                             $964,000                 $0                0.250      N                       0.000000
      7100107098                           $2,500,000         $2,493,250                0.250      N                       0.000000
      7101449226                             $830,000           $830,000                0.250      N                       0.000000
      7101611551                             $760,000           $754,000                0.250      N                       0.000000
      7101615347                             $600,000                 $0                0.250      N                       0.000000
      7101615602                             $865,000                 $0                0.250      N                       0.000000
      7101621295                             $900,000                 $0                0.250      N                       0.000000
      7101622061                             $905,000                 $0                0.250      N                       0.000000
      7101622632                             $692,500                 $0                0.250      N                       0.000000
      7101622830                             $725,000           $710,000                0.250      N                       0.000000
      7102157695                             $745,000           $746,236                0.250      N                       0.000000
      7102523680                             $895,000                 $0                0.250      N                       0.000000
      7102927139                           $4,750,000                 $0                0.250      N                       0.000000
      7103043456                             $730,000           $709,000                0.250      N                       0.000000
      7104615633                             $695,000                 $0                0.250      N                       0.000000
      7104634493                             $571,000           $565,000                0.250      N                       0.000000
      7104636035                             $700,000           $690,000                0.250      N                       0.000000
      7104636183                             $695,000                 $0                0.250      N                       0.000000
      7104718494                           $2,200,000         $2,200,000                0.250      N                       0.000000
      7104768630                             $637,000           $675,000                0.250      N                       0.000000
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      7105023076                             $600,000           $595,000                0.250      N                       0.000000
      7105329317                           $3,700,000                 $0                0.250      N                       0.000000
      7105329556                             $725,000           $719,094                0.250      N                       0.000000
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      7105686245                           $1,100,000                 $0                0.250      N                       0.000000
      7106401248                           $1,100,000         $1,050,000                0.250      N                       0.000000
      7106545440                             $150,000           $149,900                0.250      N                       0.000000
      7108026845                           $2,125,000         $1,999,000                0.250      N                       0.000000

==================================
    Loan ID            Original
                        Pledge
                        Amount
==================================
      0029096450               0.
      0029450178               0.
      0031035983               0.
      0031155302               0.
      0032842213               0.
      0034372011               0.
      0034577767               0.
      0034717678               0.
      0034781864               0.
      0034796383               0.
      0034824862               0.
      0034827089               0.
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      0035071851               0.
      0035074418               0.
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      0035092931               0.
      0035103167               0.
      0035103175               0.
      0035103456               0.
      0035104132               0.
      0035104660               0.
      0035109701               0.
      0035110923               0.
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      0035114172               0.
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      0035115815               0.
      0035118488               0.
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      0035123306               0.
      0035123330               0.
      0035349539               0.
      0035617299               0.
      0035652544               0.
      0035704600               0.
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      0038650776               0.
      0038668471               0.
      0038684312               0.
      0038708707               0.
      0038766358               0.
      0038794558               0.
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      0038849469               0.
      0038869798               0.
      0038909982               0.
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      0038955555               0.
      0038980694               0.
      0038982617               0.
      0038988580               0.
      0038992160               0.
      0039005178               0.
      0039008339               0.
      0039021480               0.
      0039032446               0.
      0039039995               0.
      0039049556               0.
      0039052436               0.
      0039071683               0.
      0039097860               0.
      0039101100               0.
      0039108055               0.
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      0039114210               0.
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      0039257894               0.
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      0040019382               0.
      0040038598               0.
      0040088569               0.
      7100010789               0.
      7100107098               0.
      7101449226         249,000.
      7101611551               0.
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      7101621295               0.
      7101622061               0.
      7101622632               0.
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      7102523680               0.
      7102927139               0.
      7103043456               0.
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      7104634493               0.
      7104636035               0.
      7104636183               0.
      7104718494               0.
      7104768630         191,100.
      7104955120          60,000.
      7105023076               0.
      7105329317               0.
      7105329556               0.
      7105481704         135,000.
      7105686245               0.
      7106401248          65,000.
      7106545440          44,970.
      7108026845         499,750.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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    REQUEST
      FOR RELEASE OF DOCUMENTS

     

    To: Citibank,
      N.A.

     

    Attn: Inventory
      Control

     

    Re:
      Pooling and Servicing Agreement dated as of November 1, 2006, among

    PHH
      Mortgage Capital LLC, as Depositor, PHH Mortgage Corporation,

    as
      Master
      Servicer and Citibank, N.A., as Trustee

     

    In
      connection with the administration of the Mortgage Loans held by you as Trustee
      for the Owner pursuant to the above-captioned Pooling and Servicing Agreement,
      we request the release, and hereby acknowledge receipt, of the Trustee’s
      Mortgage File for the Mortgage Loan described below, for the reason
      indicated.

     

    MORTGAGE
      LOAN NUMBER:

     

    MORTGAGOR
      NAME, ADDRESS & ZIP CODE:

     

    REASON
      FOR REQUESTING DOCUMENTS (check one):

     

    
      	
              _____

            	 	
              1.

            	 	
              Mortgage
                Paid in Full

            
	 	 	 	 	 
	
              _____

            	 	
              2.

            	 	
              Foreclosure

            
	 	 	 	 	 
	
              _____

            	 	
              3.

            	 	
              Substitution

            
	 	 	 	 	 
	
              _____

            	 	
              4.

            	 	
              Other
                Liquidation (Repurchases, etc.)

            
	 	 	 	 	 
	
              _____

            	 	
              5.

            	 	
              Nonliquidation         Reason:
                ________________________

            
	 	 	 	 	
               

            

    

    

     

    
      	
              Address
                to which Trustee should

              Deliver
                the Trustee’s Mortgage File:

            	 	 	
               

            	 
	 	 	 	
               

            	 
	 	 	 	
               

            	 
	 	 	 	 	 
	 	
              By:

            	 	
               

            	 
	 	 	 	
              (authorized
                signer)

            	 
	 	 	 	 	 
	 	
              Issuer:

            	 	
               

            	 
	 	
              Address:

            	 	
               

            	 
	 	 	 	
               

            	 
	 	
              Date:

            	 	
               

            	 

    

    

    

    EXHIBIT
      F-1

     

    FORM
      OF
      RULE 144A REPRESENTATION LETTER

     

    ______
      __, 2006

     

    Citibank,
      N.A.

    111
      Wall
      Street, 14th
      Floor /
      Zone 3

    New
      York,
      New York 10005

     

    [Certificate
      Registrar]

    ________________________

    ________________________

     

    
      	 	
              Re:

            	
              PHH
                Mortgage Capital LLC

              PHHMC
                Mortgage Pass-Through Certificates, Series 2006-4,

              Class
                ___, Representing a ___% Class ___ Percentage
                Interest

            

    

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the purchase from ______________________ (the “Transferor”) on
      the date hereof of the captioned trust certificates (the “Certificates”),
      _______________ (the “Transferee”) hereby certifies as follows:

     

    1. The
      Transferee is a “qualified institutional buyer” as that term is defined in Rule
      144A (“Rule 144A”) under the Securities Act of 1933 (the “1933 Act”) and has
      completed either of the forms of certification to that effect attached hereto
      as
      Annex 1 or Annex 2. The Transferee is aware that the sale to it is being made
      in
      reliance on Rule 144A. The Transferee is acquiring the Certificates for its
      own
      account or for the account of a qualified institutional buyer, and understands
      that such Certificate may be resold, pledged or transferred only (i) to a person
      reasonably believed to be a qualified institutional buyer that purchases for
      its
      own account or for the account of a qualified institutional buyer to whom notice
      is given that the resale, pledge or transfer is being made in reliance on Rule
      144A, or (ii) pursuant to another exemption from registration under the 1933
      Act.

     

    2. The
      Transferee has been furnished with all information regarding (a) the
      Certificates and distributions thereon, (b) the nature, performance and
      servicing of the Mortgage Loans, (c) the Pooling and Servicing Agreement
      referred to below, and (d) any credit enhancement mechanism associated with
      the
      Certificates, that it has requested.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    All
      capitalized terms used but not otherwise defined herein have the respective
      meanings assigned thereto in the Pooling and Servicing Agreement, dated as
      of
      November 1, 2006, among PHH Mortgage Capital LLC as Depositor, PHH Mortgage
      Corporation as Master Servicer and Citibank, N.A. as Trustee, pursuant to which
      the Certificates were issued.

     

    
      	 	 	 	 	 	 	 	
              [TRANSFEREE]

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      1 TO EXHIBIT F-1

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees Other Than Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Citibank, N.A., as Trustee and Certificate Registrar, with
      respect to the mortgage pass-through certificates (the “Certificates”) described
      in the Transferee Certificate to which this certification relates and to which
      this certification is an Annex:

     

    1.  As
      indicated below, the undersigned is the President, Chief Financial Officer,
      Senior Vice President or other executive officer of the entity purchasing the
      Certificates (the “Transferee”).

     

    2.  In
      connection with purchases by the Transferee, the Transferee is a “qualified
      institutional buyer” as that term is defined in Rule 144A under the Securities
      Act of 1933 (“Rule 144A”) because (i) the Transferee owned and/or invested on a
      discretionary basis $______________________1 in
      securities (except for the excluded securities referred to below) as of the
      end
      of the Transferee’s most recent fiscal year (such amount being calculated in
      accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in
      the
      category marked below.

     

    
      	 	
              ___

            	
              Corporation,
                etc.
                The Transferee is a corporation (other than a bank, savings and loan
                association or similar institution), Massachusetts or similar business
                trust, partnership, or any organization described in Section 501(c)(3)
                of
                the Internal Revenue Code of 1986.

            
	 	 	 
	 	
              ___

            	
              Bank.
                The Transferee (a) is a national bank or banking institution organized
                under the laws of any State, territory or the District of Columbia,
                the
                business of which is substantially confined to banking and is supervised
                by the State or territorial banking commission or similar official
                or is a
                foreign bank or equivalent institution, and (b) has an audited net
                worth
                of at least $25,000,000 as demonstrated in its latest annual financial
                statements, a
                copy of which is attached hereto.

            
	 	 	 
	
            	
              ___

            	
              Savings
                and Loan.
                The Transferee (a) is a savings and loan association, building and
                loan
                association, cooperative bank, homestead association or
                similar

            
	 	 	
              institution,
                which is supervised and examined by a State or Federal authority
                having
                supervision over any such institutions or is a foreign savings and
                loan
                association or equivalent institution and (b) has an audited net
                worth of
                at least $25,000,000 as demonstrated in its latest annual financial
                statements, a
                copy of which is attached hereto.

            
	 	 	 
	 	
              ___

            	
              Broker-Dealer.
                The Transferee is a dealer registered pursuant to Section 15 of the
                Securities Exchange Act of 1934.

            
	 	 	 
	 	
              ___

            	
              Insurance
                Company.
                The Transferee is an insurance company whose primary and predominant
                business activity is the writing of insurance or the reinsuring of
                risks
                underwritten by insurance companies and which is subject to supervision
                by
                the insurance commissioner or a similar official or agency of a State,
                territory or the District of Columbia.

            
	 	 	 
	 	
              ___

            	
              State
                or Local Plan.
                The Transferee is a plan established and maintained by a State, its
                political subdivisions, or any agency or instrumentality of the State
                or
                its political subdivisions, for the benefit of its
                employees.

            
	 	 	 
	 	
              ___

            	
              ERISA
                Plan.
                The Transferee is an employee benefit plan within the meaning of
                Title I
                of the Employee Retirement Income Security Act of 1974.

            
	 	 	 
	 	
              ___

            	
              Investment
                Advisor.
                The Transferee is an investment advisor registered under the Investment
                Advisers Act of 1940.

            
	 	 	 

    

    3.  The
      term
“Securities”
      as used
      herein Does
      Not Include
      (i)
      securities of issuers that are affiliated with the Transferee, (ii) securities
      that are part of an unsold allotment to or subscription by the Transferee,
      if
      the Transferee is a dealer, (iii) securities issued or guaranteed by the U.S.
      or
      any instrumentality thereof, (iv) bank deposit notes and certificates of
      deposit, (v) loan participations, (vi) repurchase agreements, (vii) securities
      owned but subject to a repurchase agreement and (viii) currency, interest rate
      and commodity swaps.

     

    4.  For
      purposes of determining the aggregate amount of securities owned and/or invested
      on a discretionary basis by the Transferee, the Transferee used the cost of
      such
      securities to the Transferee and did not include any of the securities referred
      to in the preceding paragraph. Further, in determining such aggregate amount,
      the Transferee may have included securities owned by subsidiaries of the
      Transferee, but only if such subsidiaries are consolidated with the Transferee
      in its financial statements prepared in accordance with generally accepted
      accounting principles and if the investments of such subsidiaries are managed
      under the Transferee’s direction. However, such securities were not included if
      the Transferee is a majority-owned, consolidated subsidiary of another
      enterprise and the Transferee is not itself a reporting company under the
      Securities Exchange Act of 1934.

     

    5.  The
      Transferee acknowledges that it is familiar with Rule 144A and understands
      that
      the Transferor and other parties related to the Certificates are relying and
      will continue to rely on the statements made herein because one or more sales
      to
      the Transferee may be in reliance on Rule 144A.

     

    
      	
              ___
                

            	
              ___
                

            	
              Will
                the Transferee be purchasing the Certificates

            
	
              Yes

            	
              No

            	
              only
                for the Transferee’s own account?

            

    

     

    6.  If
      the
      answer to the foregoing question is “no”, the Transferee agrees that, in
      connection with any purchase of securities sold to the Transferee for the
      account of a third party (including any separate account) in reliance on Rule
      144A, the Transferee will only purchase for the account of a third party that
      at
      the time is a “qualified institutional buyer” within the meaning of Rule 144A.
      In addition, the Transferee agrees that the Transferee will not purchase
      securities for a third party unless the Transferee has obtained a current
      representation letter from such third party or taken other appropriate steps
      contemplated by Rule 144A to conclude that such third party independently meets
      the definition of “qualified institutional buyer” set forth in Rule
      144A.

     

    7.  The
      Transferee will notify each of the parties to which this certification is made
      of any changes in the information and conclusions herein. Until such notice
      is
      given, the Transferee’s purchase of the Certificates will constitute a
      reaffirmation of this certification as of the date of such purchase. In
      addition, if the Transferee is a bank or savings and loan as provided above,
      the
      Transferee agrees that it will furnish to such parties updated annual financial
      statements promptly after they become available.

     

    Dated:

     

    
      	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Print
                Name of Transferee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 

    

    

      

      
        1
          Transferee must own and/or invest on a discretionary basis at least $100,000,000
          in securities unless Transferee is a dealer, and, in that case, Transferee
          must
          own and/or invest on a discretionary basis at least $10,000,000 in
          securities.

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      2 TO EXHIBIT F-1

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees That Are Registered Investment Companies]

     

    The
      undersigned hereby certifies as follows to [name of Transferor] (the
“Transferor”) and Citibank, N.A., as Trustee and Certificate Registrar, with
      respect to the mortgage pass-through certificates (the “Certificates”) described
      in the Transferee Certificate to which this certification relates and to which
      this certification is an Annex:

     

    1.  As
      indicated below, the undersigned is the President, Chief Financial Officer
      or
      Senior Vice President of the entity purchasing the Certificates (the
“Transferee”) or, if the Transferee is a “qualified institutional buyer” as that
      term is defined in Rule 144A under the Securities Act of 1933 (“Rule 144A”)
      because the Transferee is part of a Family of Investment Companies (as defined
      below), is such an officer of the investment adviser (the
“Adviser”).

     

    2.  In
      connection with purchases by the Transferee, the Transferee is a “qualified
      institutional buyer” as defined in Rule 144A because (i) the Transferee is an
      investment company registered under the Investment Company Act of 1940, and
      (ii)
      as marked below, the Transferee alone, or the Transferee’s Family of Investment
      Companies, owned at least $100,000,000 in securities (other than the excluded
      securities referred to below) as of the end of the Transferee’s most recent
      fiscal year. For purposes of determining the amount of securities owned by
      the
      Transferee or the Transferee’s Family of Investment Companies, the cost of such
      securities was used.

     

    
      	 	
              ____
                

            	
              The
                Transferee owned $___________________ in securities (other than the
                excluded securities referred to below) as of the end of the Transferee’s
                most recent fiscal year (such amount being calculated in accordance
                with
                Rule 144A).

            
	 	 	 
	 	
              ____

            	
              The
                Transferee is part of a Family of Investment Companies which owned
                in the
                aggregate $______________ in securities (other than the excluded
                securities referred to below) as of the end of the Transferee’s most
                recent fiscal year (such amount being calculated in accordance with
                Rule
                144A).

            
	 	 	 

    

    3.  The
      term
“Family
      of Investment Companies”
      as used
      herein means two or more registered investment companies (or series thereof)
      that have the same investment adviser or investment advisers that are affiliated
      (by virtue of being majority owned subsidiaries of the same parent or because
      one investment adviser is a majority owned subsidiary of the
      other).

     

    4.  The
      term
“Securities”
      as
      used
      herein does not include (i) securities of issuers that are affiliated with
      the
      Transferee or are part of the Transferee’s Family of Investment Companies, (ii)
      securities issued or guaranteed by the U.S. or any instrumentality thereof,
      (iii) bank deposit notes and certificates of deposit, (iv) loan participations,
      (v) repurchase agreements, (vi) securities owned but subject to a repurchase
      agreement and (vii) currency, interest rate and commodity swaps.

     

    5.  The
      Transferee is familiar with Rule 144A and understands that the parties to which
      this certification is being made are relying and will continue to rely on the
      statements made herein because one or more sales to the Transferee will be
      in
      reliance on Rule 144A. In addition, the Transferee will only purchase for the
      Transferee’s own account.

     

    6.  The
      undersigned will notify the parties to which this certification is made of
      any
      changes in the information and conclusions herein. Until such notice, the
      Transferee’s purchase of the Certificates will constitute a reaffirmation of
      this certification by the undersigned as of the date of such
      purchase.

     

    Dated:

     

    
      	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Print
                Name of Transferee or Advisor

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              IF
                AN ADVISER:

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              Print
                Name of Transferee

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      undersigned hereby certifies on behalf of the purchaser named below (the
“Purchaser”) as follows:

     

    1.  I
      am an
      executive officer of the Purchaser.

     

    2.  The
      Purchaser is a “qualified institutional buyer”, as defined in Rule 144A, (“Rule
      144A”) under the Securities Act of 1933, as amended.

     

    3.  As
      of the
      date specified below (which is not earlier than the last day of the Purchaser’s
      most recent fiscal year), the amount of “securities”, computed for purposes of
      Rule 144A, owned and invested on a discretionary basis by the Purchaser was
      in
      excess of $100,000,000.

     

    
      	
              Name
                of Purchaser 

            	 
	 	 
	
              By:
                (Signature)

            	 
	 	 
	
              Name
                of Signatory 

            	 
	 	 
	
              Title
                

            	 
	 	 
	
              Date
                of this certificate 

            	 
	 	 
	
              Date
                of information provided in paragraph 3 

            	 

    

    

    

    

    

    EXHIBIT
      F-2

     

    FORM
      OF
      TRANSFEROR CERTIFICATE

     

    _____
      __,
      2006

     

    Citibank,
      N.A.

    111
      Wall
      Street, 14th
      Floor /
      Zone 3

    New
      York,
      New York 10005

     

    [Certificate
      Registrar]

    ________________________

    ________________________

     

    
      	 	
              Re:

            	
              PHH
                Mortgage Capital LLC,

              PHHMC
                Mortgage Pass-Through Certificates, Series 2006-4,

              Class
                ___, Representing a ___% Class ___ Percentage
                Interest

            

    

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ________________ (the “Transferor”) to
      ________________ (the “Transferee”) of the captioned mortgage pass-through
      certificates (the “Certificates”), the Transferor hereby certifies as
      follows:

     

    Neither
      the Transferor nor anyone acting on its behalf has (a) offered, pledged, sold,
      disposed of or otherwise transferred any Certificate, any interest in any
      Certificate or any other similar security to any person in any manner, (b)
      has
      solicited any offer to buy or to accept a pledge, disposition or other transfer
      of any Certificate, any interest in any Certificate or any other similar
      security from any person in any manner, (c) has otherwise approached or
      negotiated with respect to any Certificate, any interest in any Certificate
      or
      any other similar security with any person in any manner, (d) has made any
      general solicitation by means of general advertising or in any other manner,
      (e)
      has taken any other action, that (in the case of each of subclauses (a) through
      (e) above) would constitute a distribution of the Certificates under the
      Securities Act of 1933, as amended (the “1933 Act”), or would render the
      disposition of any Certificate a violation of Section 5 of the 1933 Act or
      any
      state securities law or would require registration or qualification pursuant
      thereto. The Transferor will not act, nor has it authorized or will it authorize
      any person to act, in any manner set forth in the foregoing sentence with
      respect to any Certificate. The Transferor will not sell or otherwise transfer
      any of the Certificates, except in compliance with the provisions of that
      certain Pooling and Servicing Agreement, dated as of November 1, 2006, among
      PHH
      Mortgage Capital LLC as Depositor, PHH Mortgage Corporation as Master Servicer
      and Citibank, N.A. as Trustee (the “Pooling and Servicing Agreement”), pursuant
      to which Pooling and Servicing Agreement the Certificates were
      issued.

     

    Capitalized
      terms used but not defined herein shall have the meanings assigned thereto
      in
      the Pooling and Servicing Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	 	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              [Transferor]

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 

    

    

    

    

    

    EXHIBIT
      F-3

     

    FORM
      OF
      TRANSFEREE REPRESENTATION LETTER

     

    _____
      __,
      2006

     

    Citibank,
      N.A.

    111
      Wall
      Street, 14th
      Floor /
      Zone 3

    New
      York,
      New York 10005

     

    [Certificate
      Registrar]

    ________________________

    ________________________

     

    
      	 	
              Re:

            	
              PHH
                Mortgage Capital LLC,

              PHHMC
                Mortgage Pass-Through Certificates, Series 2006-4,

              Class
                ___, Representing a ___% Class ___ Percentage
                Interest

            

    

    

     

    Ladies
      and Gentlemen:

     

    In
      connection with the transfer by ________________ (the “Transferor”) to
      ________________ (the “Transferee”) of the captioned mortgage pass-through
      certificates (the “Certificates”), the Transferee hereby certifies as
      follows:

     

    1.  The
      Transferee understands that (a) the Certificates have not been and will not
      be
      registered or qualified under the Securities Act of 1933 (the “1933 Act”) or any
      state securities law, (b) the Depositor is not required to so register or
      qualify the Certificates, (c) the Certificates may be resold only if registered
      and qualified pursuant to the provisions of the Act or any state securities
      law,
      or if an exemption from such registration and qualification is available, (d)
      the Pooling and Servicing Agreement contains restrictions regarding the transfer
      of the Certificates and (e) the Certificates will bear a legend to the foregoing
      effect.

     

    2.  The
      Transferee is acquiring the Certificates for its own account for investment
      only
      and not with a view to or for sale in connection with any distribution thereof
      in any manner that would violate the 1933 Act or any applicable state securities
      laws.

     

    3.  The
      Transferee is (a) a substantial, sophisticated [[For Class A-3, Class A-8,
      Class
      A-9, Class B-4 and Class B-5 Certificates Only:] institutional] investor having
      such knowledge and experience in financial and business matters, and, in
      particular, in such matters related to securities similar to the Certificates,
      such that it is capable of evaluating the merits and risks of investment in
      the
      Certificates, (b) able to bear the economic risks of such an investment and
      (c)
      an “accredited investor” within the meaning of Rule 501(a) promulgated pursuant
      to the 1933 Act.

     

    4.  The
      Transferee has been furnished with all information regarding (a) the
      Certificates and distributions thereon, (b) the nature, performance and
      servicing of the Mortgage Loans, (c) the Pooling and Servicing Agreement
      referred to below, and (d) any credit enhancement mechanism associated with
      the
      Certificates, that it has requested.

     

    5.  The
      Transferee has not and will not nor has it authorized or will it authorize
      any
      person to (a) offer, pledge, sell, dispose of or otherwise transfer any
      Certificate, any interest in any Certificate or any other similar security
      to
      any person in any manner, (b) solicit any offer to buy or to accept a pledge,
      disposition or other transfer of any Certificate, any interest in any
      Certificate or any other similar security from any person in any manner, (c)
      otherwise approach or negotiate with respect to any Certificate, any interest
      in
      any Certificate or any other similar security with any person in any manner,
      (d)
      make any general solicitation by means of general advertising or in any other
      manner, (e) take any other action, that (in the case of each of subclauses
      (a)
      through (e) above) would constitute a distribution of the Certificates under
      the
      1933 Act, or would render the disposition of any Certificate a violation of
      Section 5 of the 1933 Act or any state securities law or would require
      registration or qualification pursuant thereto. The Transferee will not sell
      or
      otherwise transfer any of the Certificates, except in compliance with the
      provisions of that certain Pooling and Servicing Agreement, dated as of November
      1, 2006, among PHH Mortgage Capital LLC as Depositor, PHH Mortgage Corporation
      as Master Servicer and Citibank, N.A. as Trustee (the “Pooling and Servicing
      Agreement”), pursuant to which Pooling and Servicing Agreement the Certificates
      were issued.

     

    Capitalized
      terms used but not defined herein shall have the meanings assigned thereto
      in
      the Pooling and Servicing Agreement.

     

    

     

    
      	 	 	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              [Transferee]

            	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 

    

    

     

    

    

    EXHIBIT
      F-4

     

    FORM
      OF
      TRANSFER AFFIDAVIT AND AGREEMENT

     

    

     

    
      	
              STATE
                OF_____________

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

     

    ________________________,
      being duly sworn, deposes, represents and warrants as follows:

     

    (i)
      I am
      a ______________________ of ____________________________ (the “Owner”) a
      corporation duly organized and existing under the laws of ______________, the
      record owner of or ______% Percentage Interest in the PHH Mortgage Capital
      LLC,
      PHHMC Mortgage Pass-Through Certificates, Series 2006-4, Class R-I Certificates
      and Class R-II Certificates (together, the “Class R Certificates”), on behalf of
      whom I make this affidavit and agreement. Capitalized terms used but not defined
      herein have the respective meanings assigned thereto in the Pooling and
      Servicing Agreement pursuant to which the Class R Certificates were
      issued.

     

    (ii)
      The
      Owner (i) is and will be a “Permitted Transferee” as of ____________________,
      200___ and (ii) is acquiring the Class R Certificates for its own account or
      for
      the account of another Owner from which it has received an affidavit in
      substantially the same form as this affidavit. A “Permitted Transferee” is any
      person other than a “disqualified organization” or a possession of the United
      States. For this purpose, a “disqualified organization” means the United States,
      any state or political subdivision thereof, any agency or instrumentality of
      any
      of the foregoing (other than an instrumentality all of the activities of which
      are subject to tax and, except for the Federal Home Loan Mortgage Corporation,
      a
      majority of whose board of directors is not selected by any such governmental
      entity) or any foreign government, international organization or any agency
      or
      instrumentality of such foreign government or organization, any rural electric
      or telephone cooperative, or any organization (other than certain farmers’
cooperatives) that is generally exempt from federal income tax unless such
      organization is subject to the tax on unrelated business taxable
      income.

     

    (iii)
      The
      Owner is aware (i) of the tax that would be imposed on transfers of the Class
      R
      Certificates to disqualified organizations under the Internal Revenue Code
      of
      1986 that applies to all transfers of the Class R Certificates after May 31,
      1988; (ii) that such tax would be on the transferor or, if such transfer is
      through an agent (which person includes a broker, nominee or middleman) for
      a
      non-Permitted Transferee, on the agent; (iii) that the person otherwise liable
      for the tax shall be relieved of liability for the tax if the transferee
      furnishes to such person an affidavit that thetransferee is a Permitted
      Transferee and, at the time of transfer, such person does not have actual
      knowledge that the affidavit is false; and (iv) that each of the Class R
      Certificates may be a “noneconomic residual interest” within the meaning of
      proposed Treasury regulations promulgated under the Code and that the transferor
      of a “noneconomic residual interest” will remain liable for any taxes due with
      respect to the income on such residual interest, unless no significant purpose
      of the transfer is to impede the assessment or collection of tax.

     

    (iv)
      The
      Owner is aware of the tax imposed on a “pass-through entity” holding the Class R
      Certificates if, at any time during the taxable year of the pass-through entity,
      a non-Permitted Transferee is the record holder of an interest in such entity.
      (For this purpose, a “pass-through entity” includes a regulated investment
      company, a real estate investment trust or common trust fund, a partnership,
      trust or estate, and certain cooperatives.)

     

    (v)
      The
      Owner is aware that the Trustee will not register the transfer of any Class
      R
      Certificate unless the transferee, or the transferee’s agent, delivers to the
      Trustee, among other things, an affidavit in substantially the same form as
      this
      affidavit. The Owner expressly agrees that it will not consummate any such
      transfer if it knows or believes that any of the representations contained
      in
      such affidavit and agreement are false.

     

    (vi)
      The
      Owner consents to any additional restrictions or arrangements that shall be
      deemed necessary upon advice of counsel to constitute a reasonable arrangement
      to ensure that the Class R Certificates will only be owned, directly or
      indirectly, by an Owner that is a Permitted Transferee.

     

    (vii)
      The
      Owner’s taxpayer identification number is _________________.

     

    (viii)
      The Owner has reviewed the restrictions set forth on the face of the Class
      R
      Certificates and the provisions of Section 5.02(f) of the Pooling and Servicing
      Agreement under which the Class R Certificates were issued (in particular,
      clauses (iii)(A) and (iii)(B) of Section 5.02(f) which authorize the Trustee
      to
      deliver payments to a person other than the Owner and negotiate a mandatory
      sale
      by the Trustee in the event that the Owner holds such Certificate in violation
      of Section 5.02(f)); and that the Owner expressly agrees to be bound by and
      to
      comply with such restrictions and provisions.

     

    (ix)
      The
      Owner is not acquiring and will not transfer the Class R Certificates in order
      to impede the assessment or collection of any tax.

     

    (x)
      The
      Owner anticipates that it will, so long as it holds the Class R Certificates,
      have sufficient assets to pay any taxes owed by the holder of such Class R
      Certificates, and hereby represents to and for the benefit of the person from
      whom it acquired the Class R Certificates that the Owner intends to pay taxes
      associated with holding such Class R Certificates as they become due, fully
      understanding that it may incur tax liabilities in excess of any cash flows
      generated by the Class R Certificates.

     

    (xi)
      The
      Owner has no present knowledge that it may become insolvent or subject to a
      bankruptcy proceeding for so long as it holds the Class R
      Certificates.

     

    (xii)
      The
      Owner has no present knowledge or expectation that it will be unable to pay
      any
      United States taxes owed by it so long as any of the Certificates remain
      outstanding.

     

    (xiii)
      The Owner is not acquiring the Class R Certificates with the intent to transfer
      the Class R Certificates to any person or entity that will not have sufficient
      assets to pay any taxes owed by the holder of such Class R Certificates, or
      that
      may become insolvent or subject to a bankruptcy proceeding, for so long as
      the
      Class R Certificates remain outstanding.

     

    (xiv)
      The
      Owner will, in connection with any transfer that it makes of the Class R
      Certificates, obtain from its transferee the representations required by Section
      5.02(f) of the Pooling and Servicing Agreement under which the Class R
      Certificates were issued and will not consummate any such transfer if it knows,
      or knows facts that should lead it to believe, that any such representations
      are
      false.

     

    (xv)
      The
      Owner will, in connection with any transfer that it makes of the Class R
      Certificates, deliver to the Trustee an affidavit, which represents and warrants
      that it is not transferring the Class R Certificates to impede the assessment
      or
      collection of any tax and that it has no actual knowledge that the proposed
      transferee: (i) has insufficient assets to pay any taxes owed by such transferee
      as holder of the Class R Certificates; (ii) may become insolvent or subject
      to a
      bankruptcy proceeding for so long as the Class R Certificates remains
      outstanding; and (iii) is not a “Permitted Transferee”.

     

    (xvi)
      The
      Owner is a citizen or resident of the United States, a corporation, partnership
      or other entity created or organized in, or under the laws of, the United States
      or any political subdivision thereof, or an estate or trust whose income from
      sources without the United States may be included in gross income for United
      States federal income tax purposes regardless of its connection with the conduct
      of a trade or business within the United States.

     

    (xvii)
      (a) The Owner is not an employee benefit plan or other plan subject to the
      prohibited transaction provisions of the Employee Retirement Income Security
      Act
      of 1974, as amended (“ERISA”), or Section 4975 of the Internal Revenue Code of
      1986, as amended (the “Code”), or an investment manager, named fiduciary or a
      trustee of any such plan, or any other Person acting, directly or indirectly,
      on
      behalf of or purchasing any Certificate with “plan assets” of any such plan;
      or

     

    (b)
      The
      Owner will provide the Trustee, the Company and the Master Servicer with an
      opinion of counsel acceptable to and in form and substance satisfactory to
      such
      entities to the effect that the purchase of Certificates is permissible under
      applicable law, will not constitute or result in any non-exempt prohibited
      transaction under ERISA or Section 4975 of the Code and will not subject the
      Trustee, the Depositor or the Master Servicer to any obligation or liability
      (including obligations or liabilities under ERISA or Section 4975 of the Code)
      in addition to those undertaken in the Pooling and Servicing
      Agreement.

     

    In
      addition, the Owner hereby certifies, represents and warrants to, and covenants
      with, the Depositor, the Trustee and the Master Servicer that the Owner will
      not
      transfer such Certificates to any Plan or person unless either such Plan or
      person meets the requirements set forth in either (a) or (b) above.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
      behalf, pursuant to the authority of its Board of Directors, by its [Vice]
      President, attested by its [Assistant] Secretary, this ____ day of __________,
      200___.

     

    
      	 	 	 	 	 	 	 	
              [OWNER]

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	
              [Vice]
                President

            
	 	 	 	 	 	 	 	 	 
	
              ATTEST:

            	 	 	 	 	 
	
              By:

            	 	 	 	 
	
              Name:

            	 	 	 	 
	
              Title:

            	
              [Assistant]
                Secretary

            	 	 	 

    

    

     

    Personally
      appeared before me the above-named , known or proved to me to be the same person
      who executed the foregoing instrument and to be a [Vice] President of the Owner,
      and acknowledged to me that [he/she] executed the same as [his/her] free act
      and
      deed and the free act and deed of the Owner.

     

    Subscribed
      and sworn before me this ____ day of __________, 200___.

     

    
      	 	 
	 	
              Notary
                Public

            
	 	 
	 	
              County
                of _____________________________

            
	 	
              State
                of _______________________________

            
	 	 
	 	
              My
                Commission expires:

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    FORM
      OF
      TRANSFEROR AFFIDAVIT

     

    
      	
              STATE
                OF_____________

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF___________

            	
              )

            	 

    

    

    ________________________,
      being duly sworn, deposes, represents and

    warrants
      as follows:

     

    1.  I
      am a
      ____________________ of _____________________________ (the “Owner”), a
      corporation duly organized and existing under the laws of ______________, on
      behalf of whom I make this affidavit.

     

    2.  The
      Owner
      is not transferring the Class R Certificates (the “Residual Certificates”) to
      impede the assessment or collection of any tax.

     

    3.  The
      Owner
      has no actual knowledge that the Person that is the proposed transferee (the
      “Purchaser”) of the Residual Certificates: (i) has insufficient assets to pay
      any taxes owed by such proposed transferee as holder of the Residual
      Certificates; (ii) may become insolvent or subject to a bankruptcy proceeding
      for so long as the Residual Certificates remain outstanding and (iii) is not
      a
      Permitted Transferee.

     

    4.  The
      Owner
      understands that the Purchaser has delivered to the Trustee a transfer affidavit
      and agreement in the form attached to the Pooling and Servicing Agreement as
      Exhibit F-4. The Owner does not know or believe that any representation
      contained therein is false.

     

    5.  At
      the
      time of transfer, the Owner has conducted a reasonable investigation of the
      financial condition of the Purchaser as contemplated by Treasury Regulations
      Section 1.860E-1(c)(4)(i) and, as a result of that investigation, the Owner
      has
      determined that the Purchaser has historically paid its debts as they became
      due
      and has found no significant evidence to indicate that the Purchaser will not
      continue to pay its debts as they become due in the future. The Owner
      understands that the transfer of a Residual Certificate may not be respected
      for
      United States income tax purposes (and the Owner may continue to be liable
      for
      United States income taxes associated therewith) unless the Owner has conducted
      such an investigation.

     

    6.  Capitalized
      terms not otherwise defined herein shall have the meanings ascribed to them
      in
      the Pooling and Servicing Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Owner has caused this instrument to be executed on its
      behalf, pursuant to the authority of its Board of Directors, by its [Vice]
      President, attested by its [Assistant] Secretary, this ____ day of ___________,
      200___.

     

    
      	 	 	 	 	 	 	 	
              [OWNER]

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	
              [Vice]
                President

            
	 	 	 	 	 	 	 	 	 
	
              ATTEST:

            	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	 	 
	
              Name:

            	 	 	 	 
	
              Title:

            	
              [Assistant]
                Secretary

            	 	 	 

    

    

     

    Personally
      appeared before me the above-named , known or proved to me to be the same person
      who executed the foregoing instrument and to be a [Vice] President of the Owner,
      and acknowledged to me that [he/she] executed the same as [his/her] free act
      and
      deed and the free act and deed of the Owner.

     

    Subscribed
      and sworn before me this ____ day of __________, 200___.

     

    
      	 	 
	 	
              Notary
                Public

            
	 	 
	 	
              County
                of _____________________________

            
	 	
              State
                of _______________________________

            
	 	 
	 	
              My
                Commission expires:

            

    

    

     

    

    

    EXHIBIT
      G-1

     

    FORM
      OF
      ERISA REPRESENTATION LETTER

     

    (CLASS
      B-4, CLASS B-5 AND CLASS B-6)

     

    ______
      __, 2006

     

    PHH
      Mortgage Capital LLC

    3000
      Leadenhall Road

    Mount
      Laurel, New Jersey 08054

     

    Citibank,
      N.A.

    111
      Wall
      Street, 14th
      Floor /
      Zone 3

    New
      York,
      New York 10005

     

    PHH
      Mortgage Corporation

    3000
      Leadenhall Road

    Mount
      Laurel, New Jersey 08054

     

    
      	 	
              Re:

            	
              PHH
                Mortgage Capital LLC 

              PHHMC
                Mortgage Pass-Through Certificates, Series 2006-4, 

              Class
                [B-4][B-5][B-6]

            

    

    

    Ladies
      and Gentlemen:

     

    __________________________________
      (the “Transferee”) intends to acquire from _____________________ (the
“Transferor”) $____________ Initial Certificate Principal Balance of PHH
      Mortgage Capital LLC, PHHMC Mortgage Pass-Through Certificates, Series 2006-4,
      Class ___ (the “Certificates”), issued pursuant to a Pooling and Servicing
      Agreement (the “Pooling and Servicing Agreement”) dated as of November 1, 2006
      among PHH Mortgage Capital LLC as depositor (the “Depositor”), PHH Mortgage
      Corporation as master servicer (the “Master Servicer”) and Citibank, N.A. as
      trustee (the “Trustee”). Capitalized terms used herein and not otherwise defined
      shall have the meanings assigned thereto in the Pooling and Servicing Agreement.
      

     

    The
      Transferee hereby certifies, represents and warrants to, and covenants with
      the
      Depositor, the Trustee and the Master Servicer that the following statements
      in
      either (1), (2) or (3) below are accurate (please mark the applicable statement
      with a check (ü)):

     

    _____
      (1)
      The Certificates (i) are not being acquired by, and will not be transferred
      to,
      any employee benefit plan within the meaning of section 3(3) of the Employee
      Retirement Income Security Act of 1974, as amended (“ERISA”), or other
      retirement arrangement, including individual retirement accounts and annuities,
      Keogh plans and bank collective investment funds and insurance company general
      or separate accounts in which such plans, accounts or arrangements are invested,
      that is subject to Section 406 of ERISA or Section 4975 of the Internal Revenue
      Code of 1986 (the “Code”) (any of the foregoing, a “Plan”), (ii) are not being
      acquired with “plan assets” of a Plan within the meaning of the Department of
      Labor (“DOL”) regulation, 29 C.F.R. ss. 2510.3-101, and (iii) will not be
      transferred to any entity that is deemed to be investing in plan assets within
      the meaning of the DOL regulation at 29 C.F.R.ss.2510.3-101, as modified by
      Section 3(42) of ERISA; or

     

    _____
      (2)
      The purchase of Certificates is permissible under applicable law, will not
      subject the Depositor, the Trustee or the Master Servicer to any obligation
      in
      addition to those undertaken in the Pooling and Servicing Agreement and (i)
      the
      Transferee is an insurance company, (ii) the source of funds used to purchase
      such Certificates is an “insurance company general account” (as such term is
      defined in Prohibited Transaction Class Exemption (“PTCE”) 95-60) and (iii) the
      conditions set forth in Section III of PTCE 95-60 and all other applicable
      conditions of PTCE 95-60 have been satisfied and as a result, the acquisition
      and holding of the Certificates will not constitute or result in any prohibited
      transaction under ERISA or Section 4975 of the Code; or

     

    _____
      (3)
      The Transferee has provided the Trustee and the Master Servicer with an Opinion
      of Counsel, subject to the satisfaction of the Depositor in form and substance,
      that purchase of the Certificates (i) is permissible under applicable law,
      (ii)
      will not constitute or result in a non-exempt prohibited transaction under
      ERISA
      or Section 4975 of the Code, and (iii) will not subject the Depositor, the
      Trustee or the Master Servicer to any obligation or liability (including
      obligations or liabilities arising under ERISA or Section 4975 of the Code)
      in
      addition to those undertaken in the Pooling and Servicing
      Agreement.

     

    
      	 	 	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name: 

            
	 	 	 	 	 	 	 	
              Title: 

            

    

    

     

    

    

    

    

    EXHIBIT
      G-2

    

    FORM
      OF
      ERISA REPRESENTATION LETTER

    (CLASS
      A-3, CLASS A-8 AND CLASS A-9)

    

    _____
      __,
      2006

    

    PHH
      Mortgage Capital LLC

    3000
      Leadenhall Road

    Mount
      Laurel, New Jersey 08054

    

    Citibank,
      N.A.

    111
      Wall
      Street, 14th
      Floor /
      Zone 3

    New
      York,
      New York 10005

     

    PHH
      Mortgage Corporation

    3000
      Leadenhall Road

    Mount
      Laurel, New Jersey 08054

    

    
      	 	
              Re:

            	
              PHH
                Mortgage Capital LLC 

              PHHMC
                Mortgage Pass-Through Certificates, Series 2006-4, Class [A-3] [A-8]
                [A-9]

            

    

    

    Ladies
      and Gentlemen:

    

    __________________________________
      (the “Transferee”) intends to acquire from _____________________ (the
“Transferor”) $____________ Initial Certificate Principal Balance of PHH
      Mortgage Capital LLC, PHHMC Mortgage Pass-Through Certificates, Series 2006-4,
      Class ____ (the “Certificates”), issued pursuant to a Pooling and Servicing
      Agreement (the “Pooling and Servicing Agreement”) dated as of November 1, 2006
      among PHH Mortgage Capital LLC as depositor (the “Depositor”), PHH Mortgage
      Corporation as master servicer (the “Master Servicer”) and Citibank, N.A. as
      trustee (the “Trustee”). Capitalized terms used herein and not otherwise defined
      shall have the meanings assigned thereto in the Pooling and Servicing Agreement.
      

    

    The
      Transferee hereby certifies, represents and warrants to, and covenants with
      the
      Depositor, the Trustee and the Master Servicer that the following statements
      in
      either (1) or (2) below are accurate (please mark the applicable statement
      with
      a check (T)):

    

    _____
      (1)
      The Certificates (1) are not being acquired by, and will not be transferred
      to,
      any employee benefit plan with the meaning of section 3(3) of the Employee
      Retirement Income Security Act of 1974, as amended (“ERISA”), or other
      retirement arrangement, including individual retirement accounts and annuities,
      Keogh plans and bank collective investment funds and insurance company general
      or separate accounts in which such plans, accounts or arrangements are invested,
      that is subject to Section 406 of ERISA or Section 4975 of the Internal Revenue
      Code of 1986 (the “Code”) (any of the foregoing, a “Plan”), (ii) are not being
      acquired with “plan assets” of a Plan within the meaning of the Department of
      Labor (“DOL”) regulation, 29 C.F.R. ss. 2510.3-101, and (iii) will not be
      transferred to any entity that is deemed to be investing in plan assets within
      the meaning of the DOL regulation at 29 C.F.R. ss. 2510.3-101 as modified by
      Section 3(42) of ERISA; or

    

    _____
      (2)
      The Transferee is an “accredited investor” as defined in Rule 501(a)(1) of
      Regulation D of the Securities and Exchange Commission under the Securities
      Act
      of 1933 (the “Securities Act”) and, so long as the Transferee (or any transferee
      of the Transferee’s Certificates) is required to obtain from its transferee a
      representation regarding compliance with the Securities Act, the Transferee
      will
      require its transferee to make such representation in writing.

    

    
      	 	 	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name: 

            
	 	 	 	 	 	 	 	
              Title: 

            

    

    

     

    

     

    

     

    EXHIBIT
      H

     

    FORM
      OF
      LOST NOTE AFFIDAVIT

     

    [Name
      of
      Seller], a ______________ corporation (the “Mortgage Loan Seller”), by its
      undersigned authorized representative, hereby certifies:

     

    Pursuant
      to the Mortgage Loan Purchase Agreement, dated _______________, between the
      Seller [PHH Mortgage Corporation] [Bishop’s Gate Residential Mortgage Trust] and
      PHH Mortgage Capital LLC (the “Depositor”), the Seller is granting all of its
      right, title and interest in and to the Mortgage Loan identified below to the
      Depositor. Terms used but not defined herein have the respective meanings
      assigned to them in the Mortgage Loan Purchase Agreement.

     

    Mortgage
      Loan Number:

    Maker:

    Original
      Principal Amount:

    Original
      Mortgage Note Date:

    Maturity
      Date:

     

    The
      Seller is the current owner and holder of the indebtedness evidenced by the
      original Mortgage Note.

     

    After
      diligent search, the Seller has been unable to locate the original Mortgage
      Note
      and believes it to be lost or misplaced.

     

    A
      true,
      complete and correct photocopy of the original Mortgage Note is attached
      hereto.

     

    If
      at any
      time the Seller locates the original Mortgage Note, the Mortgage Loan Seller
      shall endorse such original Mortgage Note in the following form: “Pay to the
      order of [Name of Trustee], as Trustee for the registered holders of PHH
      Mortgage Capital LLC, Mortgage Pass-Through Certificates, PHHMC Series 2006-4,
      without recourse,” and shall promptly deliver to the Trustee the original
      Mortgage Note so endorsed, with all prior and intervening endorsements showing
      a
      complete chain of endorsement from the originator to the Seller.

     

    The
      Seller hereby indemnifies the Depositor, the Trustee and the Certificateholders
      from and against any and all losses, liabilities, damages, claims or expenses
      of
      whatever kind (including without limitation attorneys’ fees and disbursements)
      arising from or in connection with the Seller’s failure to have delivered the
      original Mortgage Note (as required under the Mortgage Loan Purchase Agreement)
      to the Trustee as designee of the Depositor, including without limitation any
      such losses, liabilities, damages, claims or expenses arising from or in
      connection with any claim by any third party who is the holder of such
      indebtedness by virtue of its possession of such original Mortgage
      Note.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
      Lost
      Note Affidavit shall inure to the benefit of the Depositor, the Trustee and
      the
      Certificateholders and their respective successors and permitted
      assigns.

     

    Dated:

     

    
      	 	 	 	 	 	 	 	
              [Seller]

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 

    

    

     

    

    

    EXHIBIT
      I-1

     

    FORM
      OF
      TRUSTEE’S INITIAL CERTIFICATION

     

    _________
      __, 2006

     

    PHH
      Mortgage Capital LLC

    3000
      Leadenhall Road

    Mount
      Laurel, New Jersey 08054

     

    PHH
      Mortgage Corporation

    3000
      Leadenhall Road

    Mount
      Laurel, New Jersey 08054

     

    
      	 	
              Re:

            	
              Pooling
                and Servicing Agreement, dated as of November 1, 2006, among
                PHH Mortgage Capital LLC, as depositor, PHH Mortgage Corporation
                as master servicer and Citibank, N.A., as Trustee, PHHMC Mortgage
                Pass-Through Certificates, Series
                2006-4

            

    

    

    Ladies
      and Gentlemen:

     

    Attached
      is the Trustee’s preliminary exception report delivered in accordance with
      Section 2.02 of the referenced Pooling and Servicing Agreement (the “Pooling and
      Servicing Agreement”). Capitalized terms used but not otherwise defined herein
      shall have the meanings set forth in the Pooling and Servicing
      Agreement.

     

    The
      Trustee has made no independent examination of any documents contained in each
      Mortgage File beyond the review specifically required in the Pooling and
      Servicing Agreement. The Trustee makes no representations as to (i) the
      validity, legality, sufficiency, enforceability or genuineness of any of the
      documents contained in the Mortgage File pertaining to the Mortgage Loans
      identified on the Mortgage Loan Schedule, (ii) the collectability, insurability,
      effectiveness or suitability of any such Mortgage Loan or (iii) whether any
      Mortgage File included any of the documents specified in Section 2.01 of the
      Pooling and Servicing Agreement.

     

    
      	 	 	 	 	 	 	 	
              [______________]

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name: 

            
	 	 	 	 	 	 	 	
              Title: 

            

    

    

    

    

    EXHIBIT
      I-2

     

    FORM
      OF
      TRUSTEE FINAL CERTIFICATION

     

    _________________,
      2006

     

    PHH
      Mortgage Capital LLC

    3000
      Leadenhall Road

    Mount.
      Laurel, New Jersey 08054

     

    PHH
      Mortgage Corporation

    3000
      Leadenhall Road

    Mount
      Laurel, New Jersey 08054

     

    
      	 	
              Re:

            	
              Pooling
                and Servicing Agreement, dated as of November 1, 2006, among PHH
                Mortgage
                Capital LLC, as depositor, PHH Mortgage Corporation, as master servicer
                and Citibank, N.A., as Trustee, PHHMC Mortgage Pass-Through Certificates,
                Series 2006-4

            

    

    

     

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.02 of the above-captioned Pooling and Servicing
      Agreement, the undersigned, hereby certifies that, except as noted on the
      Schedule of Exceptions attached hereto, for each Mortgage Loan listed on the
      Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed
      on
      the attachment hereto), it has received a complete Mortgage File which includes
      the documents required to be included in the Mortgage File as set forth in
      the
      Pooling and Servicing Agreement.

     

    The
      undersigned has made no independent examination of any documents contained
      in
      each Mortgage File beyond the review specifically required in the
      above-referenced Pooling and Servicing Agreement. The undersigned makes no
      representation as to: (i) the validity, legality, sufficiency, enforceability
      or
      genuineness of any documents contained in any Mortgage File for any of the
      Mortgage Loans listed on the Mortgage Loan Schedule to the Pooling and Servicing
      Agreement, (ii) the collectability, insurability, effectiveness or suitability
      of any such Mortgage Loan or (iii) whether any Mortgage File should include
      any
      flood insurance policy, any rider, addenda, surety or guaranty agreement, power
      of attorney, buy down agreement, assumption agreement, modification agreement,
      written assurance or substitution agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	 	 	 	 	 	
              [______________],
                as Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            
	 	 	 	 	 	 	 	
              Title:

            

    

    

     

    

     

    

    EXHIBIT
      J

     

    MORTGAGE
      LOAN PURCHASE AGREEMENT

     

     

    This
      MORTGAGE LOAN PURCHASE AGREEMENT (this “Agreement”), dated as of November 1,
      2006, is made among PHH Mortgage Capital LLC (the “Purchaser”), PHH Mortgage
      Corporation (“PHH Mortgage”) and Bishop’s Gate Residential Mortgage Trust
      (“BGRMT,” together with PHH Mortgage, the “Sellers” and individually, each a
“Seller”).

     

    W I T N E
      S S E T H:

     

    WHEREAS,
      the Sellers own the Mortgage Loans indicated on the Mortgage Loan Schedule
      attached as Exhibit 1 hereto (the “Mortgage Loans”), including rights to (a) any
      property acquired by foreclosure or deed in lieu of foreclosure or otherwise,
      and (b) the proceeds of any insurance policies covering the Mortgage
      Loans;

     

    WHEREAS,
      the parties hereto desire that the Sellers sell the Mortgage Loans to the
      Purchaser (other than the servicing rights with respect thereto), effective
      as
      of the Closing Date, and that the Sellers make certain representations and
      warranties and undertake certain obligations with respect to the Mortgage
      Loans;

     

    WHEREAS,
      pursuant to the terms of a Pooling and Servicing Agreement (the “Pooling and
      Servicing Agreement”) dated as of November 1, 2006 (the “Cut-off Date”), among
      the Purchaser, as depositor, PHH Mortgage Corporation, as master servicer (the
      “Master Servicer”) and Citibank, N.A., as trustee (the “Trustee”), the Purchaser
      will issue the PHHMC Mortgage Pass-Through Certificates, Series 2006-4 (the
      “Certificates”);

     

    NOW,
      THEREFORE, in consideration of the mutual covenants herein contained, the
      parties hereto agree as follows:

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    I. 

    DEFINITIONS

     

    A.  Definitions.
      For all
      purposes of this Mortgage Loan Purchase Agreement, except as otherwise expressly
      provided herein or unless the context otherwise requires, capitalized terms
      not
      otherwise defined herein shall have the meanings assigned to such terms in
      the
      Pooling and Servicing Agreement. All other capitalized terms used herein shall
      have the meanings specified herein.

     

      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    II.

    SALE
      OF
      MORTGAGE LOANS AND RELATED PROVISIONS

     

    A.  Sale
      of Mortgage Loans.

     

    1.  The
      Sellers, by the execution and delivery of this Agreement, do hereby sell, and
      in
      connection therewith hereby assign, to the Purchaser, effective as of the
      Closing Date, without recourse but subject to the terms of this Agreement,
      all
      of its right, title and interest in, to and under the Mortgage Loans identified
      on Exhibit 1 as of the Closing Date, whether now existing or hereafter acquired
      and wherever located, on the Closing Date and as of the Cut-off Date. In
      addition, PHH Mortgage hereby assigns to the Purchaser all of its right, title
      and interest in and to the Additional Collateral Servicing Agreement with
      respect to the Additional Collateral Mortgage Loans, which right, title and
      interest shall be assigned by the Purchaser to the Trustee, for the benefit
      of
      the Certificateholders, pursuant to the Pooling and Servicing
      Agreement.

     

    2.  In
      connection with such conveyances by each Seller, the applicable Seller shall
      on
      behalf of the Purchaser deliver to, and deposit with the Trustee (or the Master
      Servicer, in which case the Master Servicer shall hold such documents in trust
      for the use and benefit of all present and future Certificateholders until
      such
      time as set forth in Section 2.01 of the Pooling and Servicing Agreement),
      on or
      before the Closing Date, the following documents or instruments with respect
      to
      each Mortgage Loan:

     

    (i)  with
      respect to each Mortgage Loan, other than a Cooperative Loan:

     

    (a)  the
      original Mortgage Note, endorsed “Pay to the order of Citibank, N.A., as Trustee
      for the registered holders of the PHHMC Mortgage Pass-Through Certificates,
      Series 2006-4, without recourse”, or endorsed “Pay to the order of _______
      without recourse”, and signed in the name of the last named endorsee by an
      authorized officer together with all prior and intervening endorsements showing
      a complete chain of endorsement from the originator to the last
      endorsee;

     

    (b)  the
      original Mortgage, noting 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 thereon which have been recorded, with
      evidence of recording thereon or a copy of the Mortgage certified by the public
      recording office in which such Mortgage has been recorded;

     

    (c)  Unless
      the Mortgage Loan is registered on the MERS® System, an original Assignment of
      the Mortgage (A) executed in the following form “Citibank, N.A., as Trustee for
      the registered holders of the PHHMC Mortgage Pass-Through Certificates, Series
      2006-4”, or (B) in the blank, which assignment appears to be in form and
      substance acceptable for recording;

     

    (d)  the
      original recorded Assignment or Assignments of the Mortgage showing a complete
      chain of assignment from the originator to the Person assigning the Mortgage
      to
      the Trustee (or to MERS, if the Mortgage Loan is registered on the MERS® System
      and noting the presence of a MIN) as contemplated by the immediately preceding
      clause (C), if applicable and only to the extent available to the Depositor
      with
      evidence of recording thereon;

     

    (e)  the
      originals of all assumption, modification, consolidation or extension
      agreements, with evidence of recording thereon, if any;

     

    (f)  a
      copy of
      any guarantee (other than Additional Collateral) executed in connection with
      the
      Mortgage Note;

     

    (g)  the
      original of any security agreement, chattel mortgage or equivalent document
      executed in connection with the Mortgage;

     

    (h)  the
      original power of attorney, if applicable; and

     

    (i)  if
      such
      Mortgage Loan is a Buydown Mortgage Loan (as shown in the Mortgage Loan
      Schedule), the original Buydown Agreement or a copy thereof;

     

    (ii)  in
      addition, with respect to each Mortgage Loan that is an Additional Collateral
      Mortgage Loan:

     

    (a)  a
      copy of
      the related Mortgage 100K
      Pledge
      Agreement or Parent Power Agreement, as applicable; and

     

    (b)  a
      copy of
      the related UCC-1, to the extent that MLCC was required to deliver such UCC-1
      to
      the Master Servicer, and an original form UCC-3, if applicable, to the extent
      that MLCC was required to deliver such UCC-3 to the Master Servicer;
      or

     

    (iii)  with
      respect to each Mortgage Loan that is a Cooperative Loan:

     

    (a)  the
      original Mortgage Note, endorsed “Pay to the order of Citibank, N.A., as Trustee
      for the registered holders of the PHHMC Mortgage Pass-Through Certificates,
      Series 2006-4, without recourse”, or endorsed “Pay to the order of _______
      without recourse”, and signed in the name of the last named endorsee by an
      authorized officer together with all prior and intervening endorsements showing
      a complete chain of endorsement from the originator to the last
      endorsee;

     

    (b)  the
      original duly executed assignment of Security Agreement to the
      Trustee;

     

    (c)  the
      acknowledgment copy of the original executed Form UCC-1 (or certified copy
      thereof) with respect to the Security Agreement, and any required continuation
      statements;

     

    (d)  the
      acknowledgment copy of the original executed Form UCC-3 with respect to the
      Security Agreement, indicating the Trustee as the assignee of the secured
      party;

     

    (e)  the
      stock
      certificate representing the Cooperative Assets allocated to the cooperative
      unit, with a stock power in blank attached;

     

    (f)  the
      original collateral assignment of the proprietary lease by Mortgagor to the
      originator;

     

    (g)  a
      copy of
      the recognition agreement;

     

    (h)  if
      applicable and to the extent available, the original intervening assignments,
      including warehousing assignments, if any, showing, to the extent available,
      an
      unbroken chain of the related Mortgage Loan to the Trustee, together with a
      copy
      of the related Form UCC-3 with evidence of filing thereon; and

     

    (i)  the
      originals of each assumption, modification or substitution agreement, if any,
      relating to the Mortgage Loan;

     

    provided,
      however, that in lieu of the foregoing, the applicable Seller may deliver the
      following documents, under the circumstances set forth below: (x) in lieu of
      the
      original Mortgage, assignments to the Trustee or intervening assignments thereof
      which have been delivered, are being delivered or will, upon receipt of
      recording information relating to the Mortgage required to be included thereon,
      be delivered to recording offices for recording and have not been returned
      to
      applicable Seller within 270 days of the Closing Date, applicable Seller may
      deliver a true copy thereof with an Officer’s Certificate certifying that such
      Mortgage, assignment to the Trustee or intervening assignment has been delivered
      to the appropriate recording office for recording; and (y) in lieu of the
      Mortgage, assignment to the Trustee or intervening assignments thereof, if
      the
      applicable jurisdiction retains the originals of such documents (as evidenced
      by
      a certification from applicable Seller, to such effect) the applicable Seller
      may deliver photocopies of such documents containing an original certification
      by the judicial or other governmental authority of the jurisdiction where such
      documents were recorded; and provided, further, however, that in the case of
      Mortgage Loans which have been prepaid in full after the Cut-off Date and prior
      to the Closing Date, the applicable Seller, in lieu of delivering the above
      documents, may deliver to the Trustee a certification to such effect and shall
      pay all amounts paid in respect of such Mortgage Loans to the Trustee on the
      Closing Date. The applicable Seller shall deliver such original documents
      (including any original documents as to which certified copies had previously
      been delivered) to the Trustee promptly after they are received.

     

    The
      applicable Seller may, in lieu of delivering the original of the documents
      set
      forth in Section 2.1(b)(i), (ii) and (iii) (other than Section 2.1(b)(i)(A)
      and
      Section 2.1(b)(iii)(A)) (or copies thereof as permitted by Section 2.1) to
      the
      Trustee, deliver such documents to the Master Servicer, and the Master Servicer
      shall hold such documents in trust for the use and benefit of all present and
      future Certificateholders until such time as is set forth in the next sentence.
      Within 60 days following the earlier of (i) the receipt of the original of
      all
      of the documents or instruments set forth in Section 2.1(b)(i), (ii) and (iii)
      (other than Section 2.1(b)(i)(A) and Section 2.1(b)(iii)(A)) (or copies thereof
      as permitted by such Section) for any Mortgage Loan and (ii) a written request
      by the Trustee to deliver those documents with respect to any or all of the
      Mortgage Loans then being held by the Master Servicer, the Master Servicer
      shall
      deliver a complete set of such documents to the Trustee.

     

    The
      applicable Seller shall, at its expense, cause the Assignment of the Mortgage
      to
      the Trustee to be recorded not later than 270 days after the Closing Date,
      unless (a) such recordation is not required by the Rating Agencies or an Opinion
      of Counsel has been provided as set forth below in this Section 2.1 or (b)
      MERS
      is identified on the Mortgage or on a properly recorded assignment of the
      Mortgage as the mortgagee of record. The applicable Seller need not cause to
      be
      recorded any assignment in any jurisdiction under the laws of which, as
      evidenced by an Opinion of Counsel delivered by the applicable Seller to the
      Trustee and the Rating Agencies, the recordation of such assignment is not
      necessary to protect the Trustee’s interest in the related Mortgage Loan;
      provided, however, notwithstanding the delivery of any Opinion of Counsel,
      each
      assignment shall be submitted for recording by the Seller in the manner
      described above, at no expense to the Trust Fund or the Trustee, upon the
      earliest to occur of: (i) reasonable direction by the Holders of Certificates
      evidencing Fractional Undivided Interests aggregating not less than 25% of
      the
      Trust Fund, (ii) the occurrence of a Master Servicer Event of Termination,
      (iii)
      the occurrence of a bankruptcy, insolvency or foreclosure relating to the
      applicable Seller, (iv) the occurrence of a servicing transfer as described
      in
      Section 7.02 of the Pooling and Servicing Agreement and (v) with respect to
      any
      one assignment, the occurrence of a bankruptcy, insolvency or foreclosure
      relating to the Mortgagor under the related Mortgage.

     

    If
      any
      original Mortgage Note referred to in Section 2.1(b)(i)(A) or 2.1(b)(iii)(A)
      above cannot be located, the obligations of the applicable Seller to deliver
      such documents shall be deemed to be satisfied upon delivery to the Trustee
      of a
      photocopy of such Mortgage Note, if available, with a Lost Note Affidavit.
      If
      any of the original Mortgage Notes for which a Lost Note Affidavit was delivered
      to the Trustee is subsequently located, such original Mortgage Note shall be
      delivered to the Trustee within three Business Days.

     

    The
      Purchaser hereby acknowledges its acceptance of all right, title and interest
      to
      the Mortgage Loans and other property, now existing and hereafter created,
      conveyed to it pursuant to this Section 2.1.

     

    B.  Payment
      of Purchase Price for the Mortgage Loans.

     

    In
      consideration of the sale of the Mortgage Loans from the Sellers to the
      Purchaser on the Closing Date, (i) PHH Mortgage shall receive (a) the Class
      R-I
      Certificates and Class R-II Certificates (other than a de minimis portion of
      each such class) and (b) $[ ] by wire transfer of immediately available funds
      to
      a bank account designated by PHH Mortgage and (ii) BGRMT shall receive $[ ]
      by
      wire transfer of immediately available funds to a bank account designated by
      BGRMT.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    III. 

    REPRESENTATIONS
      AND WARRANTIES;

    REMEDIES
      FOR BREACH

     

    A.  Sellers
      Representations and Warranties.

     

    1.  Each
      Seller, as to itself, represents, warrants and covenants to the Purchaser that
      as of the Closing Date (or as of such date specifically provided herein)
      that:

     

    (i)  Due
      Organization.
      The
      Seller is an entity duly organized, validly existing and in good standing under
      the laws of its jurisdiction of organization, and has all licenses necessary
      to
      carry on its business now being conducted and is licensed, qualified and in
      good
      standing under the laws of each state where a Mortgaged Property is located
      or
      is otherwise exempt under applicable law from such qualification or is otherwise
      not required under applicable law to effect such qualification; no demand for
      such qualification has been made upon the Seller by any state having
      jurisdiction and in any event the Seller is or will be in compliance with the
      laws of any such state to the extent necessary to enforce each Mortgage
      Loan;

     

    (ii)  Due
      Authority.
      The
      Seller had the full power and authority and legal right to originate the
      Mortgage Loans that it originated, if any, and to acquire the Mortgage Loans
      that it acquired. The Seller has the full power and authority to hold each
      Mortgage Loan, to sell each Mortgage Loan and to execute, deliver and perform,
      and to enter into and consummate, all transactions contemplated by this
      Agreement. The Seller has duly authorized the execution, delivery and
      performance of this Agreement, has duly executed and delivered this Agreement,
      and this Agreement, assuming due authorization, execution and delivery by the
      Purchaser, constitutes a legal, valid and binding obligation of the Seller,
      enforceable against it in accordance with its terms, subject to applicable
      bankruptcy, reorganization, receivership, conservatorship, insolvency,
      moratorium and other laws relating to or affecting creditors’ rights generally
      or the rights of creditors of banks and to the general principles of equity
      (whether such enforceability is considered in a proceeding in equity or at
      law);

     

    (iii)  No
      Conflict.
      The
      execution and delivery of this Agreement, the acquisition or origination, as
      applicable, of the Mortgage Loans by the Seller, the sale of the Mortgage Loans,
      the consummation of the transactions contemplated hereby, or the fulfillment
      of
      or compliance with the terms and conditions of this Agreement, will not conflict
      with or result in a breach of any of the terms, conditions or provisions of
      the
      Seller’s organizational documents and bylaws or any legal restriction or any
      agreement or instrument to which the Seller is now a party or by which it is
      bound, or constitute a default or result in an acceleration under any of the
      foregoing, or result in the violation of any law, rule, regulation, order,
      judgment or decree to which the Seller or its property is subject, or impair
      the
      ability of the Purchaser to realize on the Mortgage Loans;

     

    (iv)  Ability
      to Perform.
      The
      Seller does not believe, nor does it have any reason or cause to believe, that
      it cannot perform each and every covenant contained in this
      Agreement;

     

    (v)  No
      Material Default.
      Neither
      the Seller nor any of its Affiliates is in material default under any agreement,
      contract, instrument or indenture of any nature whatsoever to which the Seller
      or any of its Affiliates is a party or by which it (or any of its assets) is
      bound, which default would have a material adverse effect on the ability of
      the
      Seller to perform under this Agreement, nor, to the best of the Seller’s
      knowledge, has any event occurred which, with notice, lapse of time or both,
      would constitute a default under any such agreement, contract, instrument or
      indenture and have a material adverse effect on the ability of the Seller to
      perform its obligations under this Agreement;

     

    (vi)  No
      Litigation Pending.
      There
      is no action, suit, proceeding or investigation pending or, to the best of
      the
      Seller’s knowledge, threatened, against the Seller, which, either in any one
      instance or in the aggregate, if determined adversely to the Seller would
      adversely affect the sale of the Mortgage Loans to the Purchaser or the
      execution, delivery or enforceability of this Agreement or result in any
      material liability of the Seller, or draw into question the validity of this
      Agreement, or have a material adverse effect on the financial condition of
      the
      Seller or the ability of the Seller to perform its obligations under this
      Agreement;

     

    (vii)  No
      Consent Required.
      No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Seller
      of or
      compliance by the Seller with this Agreement, the delivery of the Mortgage
      Files
      to the Purchaser, the sale of the Mortgage Loans to the Purchaser or the
      consummation of the transactions contemplated by this Agreement or, if required,
      such approval has been obtained prior to the Closing Date;

     

    (viii)  Ordinary
      Course of Business.
      The
      consummation of the transactions contemplated by this Agreement is in the
      ordinary course of business of the Seller, and the transfer, assignment and
      conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant to
      this Agreement are not subject to the bulk transfer or any similar statutory
      provisions in effect in any applicable jurisdiction;

     

    (ix)  No
      Broker.
      The
      Seller has not dealt with any broker or agent or anyone else who might be
      entitled to a fee or commission in connection with this transaction;
      and

     

    (x)  No
      Untrue Information.
      Neither
      this Agreement nor any statement, report or other agreement, document or
      instrument furnished or to be furnished pursuant to this Agreement contains
      or
      will contain any materially untrue statement of fact or omits or will omit
      to
      state a fact necessary to make the statements contained therein, in light of
      the
      circumstances under which they were made, not misleading.

     

    2.  With
      respect to each Mortgage Loan, the applicable Seller hereby makes the following
      representations and warranties to the Purchaser on which the Purchaser
      specifically relies in purchasing such Mortgage Loan. Such representations
      and
      warranties speak as of the Closing Date (unless otherwise indicated), but shall
      survive any subsequent transfer, assignment or conveyance of such Mortgage
      Loans:

     

    (i)  Such
      Mortgage Loan complies with the terms and conditions set forth herein, and
      all
      of the information set forth with respect thereto on the Mortgage Loan Schedule
      is true and correct in all material respects;

     

    (ii)  The
      instruments and documents specified in Section 2.1 with respect to such Mortgage
      Loan have been delivered to the Purchaser in accordance with the requirements
      of
      Section 2.1(b). The applicable Seller is in possession of a Mortgage File
      respecting such Mortgage Loan, except for such documents as have been previously
      delivered to the Purchaser;

     

    (iii)  The
      Mortgage relating to such Mortgage Loan has been duly recorded in the
      appropriate recording office, and the applicable Seller is the owner of record
      of such Mortgage Loan and the indebtedness evidenced by the related Mortgage
      Note;

     

    (iv)  All
      payments required to be made up to and including the Closing Date for such
      Mortgage Loan under the terms of the Mortgage Note have been made, such that
      such Mortgage Loan is not delinquent 30 days or more on the Cut-off Date. Unless
      otherwise disclosed in the prospectus supplement, dated November 27, 2006,
      relating to the public offering of the Certificates (the “Prospectus
      Supplement”) or the Mortgage Loan Schedule, there has been no delinquency,
      exclusive of any period of grace, in any payment by the Mortgagor thereunder
      during the twelve months preceding the Closing Date; and, if the Mortgage Loan
      is a Cooperative Loan, no foreclosure action or private or public sale under
      the
      Uniform Commercial Code has ever been overtly threatened or commenced with
      respect to the Cooperative Loan;

     

    (v)  There
      are
      no delinquent taxes, insurance premiums, assessments, including assessments
      payable in future installments, or other outstanding charges affecting the
      Mortgaged Property related to such Mortgage Loan;

     

    (vi)  The
      terms
      of the Mortgage Note and the Mortgage related to such Mortgage Loan (and the
      proprietary lease, the stock power, the Assignment of the proprietary lease,
      the
      Assignment of the Mortgage Note and the acceptance of assignment and assumption
      of lease agreement with respect to each Cooperative Loan), have not been
      impaired, waived, altered or modified in any material respect, except as
      specifically set forth in the Mortgage Loan Schedule;

     

    (vii)  The
      Mortgage Note and the Mortgage related to such Mortgage Loan (and the acceptance
      of assignment and assumption of lease agreement related to each Cooperative
      Loan) are not subject to any right of rescission, set-off or defense, including
      the defense of usury, nor will the operation of any of the terms of such
      Mortgage Note and such Mortgage, or the exercise of any right thereunder, render
      such Mortgage unenforceable, in whole or in part, or subject to any right of
      rescission, set-off or defense, including the defense of usury and no such
      right
      of rescission, set-off or defense has been asserted with respect
      thereto;

     

    (viii)  
      (a) All
      buildings upon the Mortgaged Property related to such Mortgage Loan are insured
      by a Qualified Insurer against loss by fire, hazards of extended coverage and
      such other hazards as are customary in the area where such Mortgaged Property
      is
      located. All such insurance policies (collectively, the “hazard insurance
      policy”) are in full force and effect and contain a standard mortgagee clause
      naming the originator of such Mortgage Loan, its successors and assigns, as
      mortgagee. If the Mortgaged Property is in an area identified in the Federal
      Register by the Federal Emergency Management Agency (“FEMA”) as having special
      flood hazards, a flood insurance policy is in effect which met the requirements
      of FEMA at the time such policy was issued. Such policies are the valid and
      binding obligations of the insurer, and all premiums thereon due to date have
      been paid. The related Mortgage obligates the Mortgagor thereunder to maintain
      all such insurance at such Mortgagor’s cost and expense, and on such Mortgagor’s
      failure to do so, authorizes the holder of such Mortgage to maintain such
      insurance at such Mortgagor’s cost and expense and to seek reimbursement
      therefor from such Mortgagor; or (b) in the case of a condominium or unit in
      a
      planned unit development (“PUD”) project that is not covered by an individual
      policy, the condominium or PUD project is covered by a “master” or “blanket”
policy and there exists and is in the Mortgage File a certificate of insurance
      showing that the individual unit that secures the first mortgage is covered
      under such policy. The insurance policy contains a standard mortgagee clause
      naming the originator of such Mortgage Loan (and its successors and assigns),
      as
      insured mortgagee. Such policies are the valid and binding obligations of the
      insurer, and all premiums thereon have been paid. The insurance policy provides
      for advance notice to the applicable Seller or Master Servicer if the policy
      is
      canceled or not renewed, or if any other change that adversely affects the
      applicable Seller’s interests is made; the certificate includes the types and
      amounts of coverage provided, describes any endorsements that are part of the
      “master” policy and would be acceptable pursuant to the Fannie Mae
      Guide;

     

    (ix)  All
      requirements of any federal, state or local law (including usury, truth in
      lending, real estate settlement procedures, consumer credit protection, equal
      credit opportunity or disclosure laws) applicable to the origination and
      servicing of such Mortgage Loan have been complied with in all material
      respects;

     

    (x)  The
      Mortgage related to such Mortgage Loan has not been satisfied, canceled or
      subordinated, in whole or in part, or rescinded, and the related Mortgaged
      Property has not been released from the lien of such Mortgage, in whole or
      in
      part, nor has any instrument been executed that would effect any such release,
      cancellation, subordination or rescission;

     

    (xi)  The
      Mortgage related to such Mortgage Loan is a valid, subsisting and enforceable
      perfected first lien on the related Mortgaged Property, including all
      improvements on the related Mortgaged Property, which Mortgaged Property is
      free
      and clear of any encumbrances and liens having priority over the first lien
      of
      the Mortgage subject only to (a) the lien of current real estate taxes and
      special assessments not yet due and payable, (b) covenants, conditions and
      restrictions, rights of way, easements and other matters of the public record
      as
      of the date of recording of such Mortgage which are acceptable to mortgage
      lending institutions generally, are referred to in the lender’s title insurance
      policy and do not adversely affect the market value or intended use of the
      related Mortgaged Property, and (c) other matters to which like properties
      are
      commonly subject which do not individually or in the aggregate materially
      interfere with the benefits of the security intended to be provided by such
      Mortgage or the use, enjoyment, or market value of the related Mortgaged
      Property; with respect to each Cooperative Loan, each acceptance of assignment
      and assumption of lease agreement creates a valid, enforceable and subsisting
      first security interest in the collateral securing the related Mortgage Note
      subject only to (x) the lien of the related Cooperative for unpaid assessments
      representing the obligor’s pro rata share of the Cooperative’s payments for its
      blanket mortgage, current and future real property taxes, insurance premiums,
      maintenance fees and other assessments to which like collateral is commonly
      subject and (y) other matters to which like collateral is commonly subject
      which
      do not materially interfere with the benefits of the security intended to be
      provided by the acceptance of assignment and assumption of lease agreement;
      provided, however, that the appurtenant proprietary lease may be subordinated
      or
      otherwise subject to the lien of any mortgage on the cooperative
      project;

     

    (xii)  The
      Mortgage Note and the Mortgage related to such Mortgage Loan (and the acceptance
      of assignment and assumption of lease agreement with respect to each Cooperative
      Loan) are genuine and each is the legal, valid and binding obligation of the
      maker thereof, enforceable in accordance with its terms, except as such
      enforcement may be limited by bankruptcy, insolvency, reorganization or other
      similar laws affecting the enforcement of creditors’ rights generally and
      general equitable principles (regardless whether such enforcement is considered
      in a proceeding in equity or at law);

     

    (xiii)  All
      parties to the Mortgage Note and the Mortgage related to such Mortgage Loan
      had
      legal capacity to enter into such Mortgage Loan and to execute and deliver
      the
      related Mortgage Note and the related Mortgage and the related Mortgage Note
      and
      the related Mortgage have been duly and properly executed by such parties;
      with
      respect to each Cooperative Loan, all parties to the Mortgage Note and the
      Mortgage Loan had legal capacity to execute and deliver the Mortgage Note,
      the
      acceptance of assignment and assumption of lease agreement, the proprietary
      lease, the stock power, the recognition agreement, the financing statement
      and
      the Assignment of proprietary lease and such documents have been duly and
      properly executed by such parties; each stock power (i) has all signatures
      guaranteed or (ii) if all signatures are not guaranteed, then such Cooperative
      Assets will be transferred by the stock transfer agent of the Cooperative if
      the
      applicable Seller undertakes to convert the ownership of the collateral securing
      the related Cooperative Loan;

     

    (xiv)  Such
      Mortgage Loan has closed and the proceeds of such Mortgage Loan have been fully
      disbursed prior to the Closing Date; provided that, with respect to any Mortgage
      Loan originated within the previous 150 days, alterations and repairs with
      respect to the related Mortgaged Property or any part thereof may have required
      an escrow of funds in an amount sufficient to pay for all outstanding work
      within 150 days of the origination of such Mortgage Loan, and, if so, such
      funds
      are held in escrow by the applicable Seller, a title company or other escrow
      agent;

     

    (xv)  The
      Mortgage Note and the Mortgage related to such Mortgage Loan have not been
      assigned, pledged or otherwise transferred by the applicable Seller, in whole
      or
      in part, and the applicable Seller has good and marketable title thereto, and
      the applicable Seller is the sole owner thereof (and with respect to any
      Cooperative Loan, the sole owner of the related acceptance of assignment and
      assumption of lease agreement) and has full right and authority to transfer
      and
      sell such Mortgage Loan, and is transferring such Mortgage Loan to the Purchaser
      free and clear of any encumbrance, equity, lien, pledge, charge, claim or
      security interest;

     

    (xvi)  All
      parties that have had any interest in such Mortgage Loan, whether as mortgagee,
      assignee, pledgee or otherwise, are (or, during the period in which they held
      and disposed of such interest, were) in compliance with any and all applicable
      licensing requirements of the laws of the state wherein the related Mortgaged
      Property is located;

     

    (xvii)  (a)
      Such
      Mortgage Loan is covered by an American Land Title Association (“ALTA”) lender’s
      title insurance policy or short form title policy acceptable to Fannie Mae
      and
      Freddie Mac (or, in jurisdictions where ALTA policies are not generally approved
      for use, a lender’s title insurance policy acceptable to Fannie Mae and Freddie
      Mac), issued by a title insurer acceptable to Fannie Mae and Freddie Mac and
      qualified to do business in the jurisdiction where the related Mortgaged
      Property is located, insuring (subject to the exceptions contained in clauses
      (xi)(a), (b) and (x) above) the applicable Seller or Master Servicer, its
      successors and assigns as to the first priority lien of the related Mortgage
      in
      the original principal amount of such Mortgage Loan. Additionally, either such
      lender’s title insurance policy affirmatively insures that there is ingress and
      egress to and from the Mortgaged Property or the applicable Seller warrants
      that
      there is ingress and egress to and from the Mortgaged Property and the lender’ s
      title insurance policy affirmatively insures against encroachments by or upon
      the related Mortgaged Property or any interest therein or any other adverse
      circumstance that either is disclosed or would have been disclosed by an
      accurate survey. The applicable Seller or Master Servicer is the sole insured
      of
      such lender’s title insurance policy, and such lender’s title insurance policy
      is in full force and effect and will be in full force and effect upon the
      consummation of the transactions contemplated by this Agreement and will inure
      to the benefit of the Purchaser without any further act. No claims have been
      made under such lender’s title insurance policy, neither the applicable Seller,
      nor to the best of the applicable Seller’s knowledge, any prior holder of the
      related Mortgage has done, by act or omission, anything that would impair the
      coverage of such lender’s insurance policy, and there is no act, omission,
      condition, or information that would impair the coverage of such lender’s
      insurance policy; (b) The mortgage title insurance policy covering each unit
      mortgage in a condominium or PUD project related to such Mortgage Loan meets
      all
      requirements of Fannie Mae and Freddie Mac;

     

    (xviii)  
      (a)
      There is no default, breach, violation or event of acceleration existing under
      the Mortgage, the Mortgage Note, or any other agreements, documents, or
      instruments related to such Mortgage Loan; (b) to the best of the applicable
      Seller’s knowledge, there is no event that, with the lapse of time, the giving
      of notice, or both, would constitute such a default, breach, violation or event
      of acceleration; (c) the Mortgagor(s) with respect to such Mortgage Loan is
      (1)
      not in default under any other Mortgage Loan or (2) the subject of an insolvency
      proceeding; (d) no event of acceleration has previously occurred, and no notice
      of default has been sent, with respect to such Mortgage Loan; and (e) in no
      event has the applicable Seller waived any of its rights or remedies in respect
      of any default, breach, violation or event of acceleration under the Mortgage,
      the Mortgage Note, or any other agreements, documents, or instruments related
      to
      such Mortgage Loan; and (f) with respect to each Cooperative Loan, there is
      no
      default in complying with the terms of the Mortgage Note, the acceptance of
      assignment and assumption of lease agreement and the proprietary lease and
      all
      maintenance charges and assessments (including assessments payable in the future
      installments, which previously became due and owing) have been paid, and the
      applicable Seller has the right under the terms of the Mortgage Note, acceptance
      of assignment and assumption of lease agreement and recognition agreement to
      pay
      any maintenance charges or assessments owed by the Mortgagor;

     

    (xix)  As
      of the
      date of origination of such Mortgage Loan, there were no mechanics’ or similar
      liens, except such liens as are expressly insured against by a title insurance
      policy, or claims that have been filed for work, labor or material (and no
      rights are outstanding that under law could give rise to such lien) affecting
      the related Mortgaged Property that are or may be liens prior to, or equal
      or
      coordinate with, the lien of the related Mortgage;

     

    (xx)  As
      of the
      date of origination of such Mortgage Loan, to the best of the applicable
      Seller’s knowledge, all improvements that were considered in determining the
      Value of the related Mortgaged Property lay wholly within the boundaries and
      building restriction lines of such Mortgaged Property (and wholly within the
      project in the case of a condominium unit), and no improvements on adjoining
      properties encroach upon such Mortgaged Property except as permitted under
      the
      terms of the Fannie Mae Guide and the Freddie Mac Selling Guide or those which
      are insured against by the title insurance policy referred to in clause (xvii)
      above; to the best of the applicable Seller’s knowledge, no improvement located
      on or part of any Mortgaged Property is in violation of any applicable zoning
      law or regulation, and all inspections, licenses and certificates required
      to be
      made or issued with respect to all occupied portions of such Mortgaged Property,
      and with respect to the use and occupancy of the same, including certificates
      of
      occupancy, have been made or obtained from the appropriate
      authorities;

     

    (xxi)  Except
      with respect to approximately 8.06% and 0.71% of the Mortgage Loans for which
      the related Mortgage Note provides for an initial interest-only period for
      the
      first 10 years or 15 years, respectively, principal payments on such Mortgage
      Loan commenced or will commence no more than 60 days after funds were disbursed
      in connection with such Mortgage Loan. The related Mortgage Note is payable
      on
      the first day of each month in arrears, in accordance with the payment terms
      described on the related Mortgage Loan Schedule;

     

    (xxii)  Except
      as
      noted otherwise on the Mortgage Loan Schedule, the related Mortgage contains
      the
      usual and customary “due-on-sale” clause or other similar provision for the
      acceleration of the payment of the unpaid principal balance of such Mortgage
      Loan if the related Mortgaged Property or any interest therein is sold or
      transferred without the prior consent of the mortgagee thereunder;

     

    (xxiii)  Except
      as
      noted otherwise on the Mortgage Loan Schedule, such Mortgage Loan is not subject
      to any prepayment penalty;

     

    (xxiv)  To
      the
      best of the applicable Seller’s knowledge, as of the Closing Date, the related
      Mortgaged Property (and with respect to a Cooperative Loan, the related
      cooperative project and Cooperative Unit) is free of material damage and waste
      and there is no proceeding pending for the total or partial condemnation
      thereof;

     

    (xxv)  The
      related Mortgage contains customary and enforceable provisions that render
      the
      rights and remedies of the holder thereof adequate for the realization against
      the related Mortgaged Property of the benefits of the security provided thereby,
      including, (a) in the case of a Mortgage designated as a deed of trust, by
      trustee’s sale, and (b) in the case of a Mortgage, otherwise by judicial
      foreclosure;

     

    (xxvi)  Such
      Mortgage Loan was underwritten in accordance with the Underwriting
      Guide;

     

    (xxvii)  The
      Mortgage File contains an appraisal (or other collateral assessment, permitted
      by the Underwriting Guide) of the related Mortgaged Property on forms and with
      riders approved by Fannie Mae and Freddie Mac, signed prior to the approval
      of
      such Mortgage Loan application by an appraiser, duly appointed by the originator
      of such Mortgage Loan, whose compensation is not affected by the approval or
      disapproval of such Mortgage Loan and who met the minimum qualifications of
      Fannie Mae and Freddie Mac for appraisers. Each appraisal of the Mortgage Loan
      was made in accordance with the relevant provisions of the Financial
      Institutions Reform, Recovery, and Enforcement Act of 1989;

     

    (xxviii)  If
      the
      related Mortgage constitutes a deed of trust, then a trustee, duly qualified
      under applicable law to serve as such, has been properly designated and
      currently so serves and is named in such Mortgage, and no fees or expenses
      are
      or will become payable by the Purchaser to the trustee under such deed of trust,
      except in connection with a trustee’s sale after default by the related
      Mortgagor;

     

    (xxix)  Except
      with respect to Additional Collateral Mortgage Loans, if such Mortgage Loan
      had
      a Loan-to-Value Ratio of more than 80% at origination, such Mortgage Loan is
      and
      will be subject to a Primary Insurance Policy issued by a Qualified Insurer,
      which insures the applicable Seller or Master Servicer, its successors and
      assigns and insureds in the amount set forth on the Mortgage Loan Schedule
      provided that, a Primary Insurance Policy will not be required for any
      Cooperative Loan if (i) the proceeds of such Cooperative Loan were used to
      purchase a Cooperative Unit at the “insider’s price” when the building was
      converted to a Cooperative, (ii) the value of the Cooperative Unit for purposes
      of establishing the Loan-to-Value Ratio at origination was such “insider’s
      price”, (iii) the principal amount of the Cooperative Loan at origination was
      not more than 100% of such “insider’s price” and (iv) the Loan-to-Value Ratio at
      origination, as calculated using the Value at origination, was less than or
      equal to 80%. All provisions of such Primary Insurance Policy have been and
      are
      being complied with, such policy is in full force and effect, and all premiums
      due thereunder have been paid. Any related Mortgage subject to any such Primary
      Insurance Policy (other than a “lender-paid” Primary Insurance Policy) obligates
      the Mortgagor thereunder to maintain such insurance for the time period required
      by law and to pay all premiums and charges in connection therewith. As of the
      date of origination, the Loan-to-Value Ratio of such Mortgage Loan is as
      specified in the applicable Mortgage Loan Schedule;

     

    (xxx)  As
      of the
      date of origination of such Mortgage Loan, to the best of the applicable
      Seller’s knowledge, the related Mortgaged Property (or with respect to a
      Cooperative Loan, the related Cooperative Unit) is lawfully occupied under
      applicable law and all inspections, licenses and certificates required to be
      made or issued with respect to all occupied portions of the Mortgaged Property
      (or with respect to a Cooperative Loan, the related Cooperative Unit) and,
      with
      respect to the use and occupancy of the same, including but not limited to
      certificates of occupancy, have been made or obtained from the appropriate
      authorities;

     

    (xxxi)  Each
      Mortgage Loan either was (a) closed in the name of PHH Mortgage or in the name
      of another entity that is either a savings and loan association, a savings
      bank,
      a commercial bank, credit union, insurance company or an institution which
      is
      supervised and examined by a federal or state authority, or a mortgagee approved
      by the Secretary of Housing and Urban Development pursuant to Sections 203
      and
      211 of the National Housing Act (any such entity and PHH Mortgage, a “HUD
      Approved Mortgagee”), and was so at the time such Mortgage Loan was originated
      (PHH Mortgage or such other entity, the “Originator”) or (b) closed in the name
      of a correspondent lender under the circumstances described in the following
      sentence. If such Mortgage Loan was originated through a correspondent lender,
      such Mortgage Loan met the Originator’s underwriting criteria at the time of
      origination and was originated in accordance with the Originator’s policies and
      procedures and the Originator acquired such Mortgage Loan from the correspondent
      lender contemporaneously with the origination thereof. The Mortgage Loans that
      BGRMT is selling to Purchaser were originated by or on behalf of PHH Mortgage
      and subsequently assigned to BGRMT;

     

    (xxxii)  All
      of
      the terms of the related Mortgage Note pertaining to interest rate adjustments,
      payment adjustments and adjustments of the outstanding principal balance, if
      any, are enforceable and such adjustments will not affect the priority of the
      lien of the related Mortgage; all such adjustments on such Mortgage Loan have
      been made properly and in accordance with the provisions of such Mortgage
      Loan;

     

    (xxxiii)  To
      the
      best of the applicable Seller’s knowledge, the related Mortgagor is not the
      subject of any insolvency proceeding;

     

    (xxxiv)  Unless
      otherwise disclosed in the Prospectus Supplement or the Mortgage Loan Schedule,
      no Mortgage Loan contains provisions pursuant to which Monthly Payments are
      (a)
      paid or partially paid with funds deposited in any separate account established
      by the applicable Seller, the Mortgagor, or anyone on behalf of the Mortgagor,
      (b) paid by any source other than the Mortgagor or (c) contains any other
      similar provisions which may constitute a “buydown” provision. The Mortgage Loan
      is not a graduated payment mortgage loan and the Mortgage Loan does not have
      a
      shared appreciation or other contingent interest feature;

     

    (xxxv)  The
      Assignment is in recordable form and is acceptable for recording under the
      laws
      of the jurisdiction in which the Mortgaged Property is located;

     

    (xxxvi)  Any
      principal advances made to the Mortgagor prior to the Cut-off Date have been
      consolidated with the outstanding principal amount secured by the Mortgage,
      and
      the secured principal amount, as consolidated, bears a single interest rate
      and
      single repayment term. The consolidated principal amount does not exceed the
      original principal amount of the Mortgage Loan;

     

    (xxxvii)  Unless
      otherwise disclosed in the Prospectus Supplement or the Mortgage Loan Schedule,
      no Mortgage Loan has a balloon payment feature. With respect to any Mortgage
      Loan with a balloon payment feature, the Mortgage Note is payable in Monthly
      Payments based on a thirty year amortization schedule and has a final Monthly
      Payment substantially greater than the preceeding Monthly Payment which is
      sufficient to amortize the remaining principal balance of the Mortgage
      Loan;

     

    (xxxviii)  If
      the
      residential dwelling on the Mortgaged Property is a condominium unit or a unit
      in a planned unit development (other than a de minimis planned unit development)
      such condominium or planned unit development project meets the eligibility
      requirements of the Underwriting Guide;

     

    (xxxix)  No
      Mortgage Loan is subject to the provisions of the Homeownership and Equity
      Protection Act of 1994;

     

    (xl)  Unless
      otherwise disclosed in the Prospectus Supplement or the Mortgage Loan Schedule,
      no Mortgage Loan was made in connection with (a) the construction or
      rehabilitation of a Mortgaged Property or (b) facilitating the trade-in or
      exchange of a Mortgaged Property;

     

    (xli)  The
      applicable Seller has no knowledge of any circumstances or condition with
      respect to the Mortgage, the Mortgaged Property (or with respect to a
      Cooperative Loan, the acceptance of assignment and assumption of lease
      agreement, the Cooperative Unit or the cooperative project), the Mortgagor
      or
      the Mortgagor’s credit standing that can reasonably be expected to cause the
      Mortgage Loan to be an unacceptable investment, cause the Mortgage Loan to
      become delinquent, or adversely affect the value of the Mortgage
      Loan;

     

    (xlii)  Unless
      otherwise disclosed in the Prospectus Supplement or the Mortgage Loan Schedule,
      interest on each Mortgage Loan is calculated on the basis of a 360-day year
      consisting of twelve 30-day months;

     

    (xliii)  To
      the
      best of applicable Seller’s knowledge, the Mortgaged Property is in material
      compliance with all applicable environmental laws pertaining to environmental
      hazards including, without limitation, asbestos, and neither the applicable
      Seller nor, to the applicable Seller’s knowledge, the related Mortgagor, has
      received any notice of any violation or potential violation of such
      law;

     

    (xliv)  No
      Mortgage Loan is subject to negative amortization;

     

    (xlv)  No
      Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home
      Ownership Act effective November 27, 2003;

     

    (xlvi)  Each
      Mortgage Loan, at the time it was made, complied in all material respects with
      applicable local, state and federal laws, including, but not limited to, all
      applicable predatory and abusive lending laws;

     

    (xlvii)  Each
      Mortgage Loan is a “qualified mortgage” as defined under Section 860G(a)(3) of
      the Code and Treasury Regulation Section 1.860G-2(a)(1);

     

    (xlviii)  None
      of
      the Mortgage Loans are “high cost loans” as defined by the applicable predatory-
      and abusive- lending laws;

     

    (xlix)  With
      respect to each Cooperative Loan, a cooperative lien search has been made by
      a
      company competent to make the same which company is acceptable to FNMA and
      qualified to do business in the jurisdiction where the Cooperative Unit is
      located;

     

    (l)  With
      respect to each Cooperative Loan, (i) the terms of the related proprietary
      lease
      is longer than the terms of the Cooperative Loan, (ii) there is no provision
      in
      any proprietary lease which requires the Mortgagor to offer for sale the
      Cooperative Assets owned by such Mortgagor first to the Cooperative, (iii)
      there
      is no prohibition in any proprietary lease against pledging the Cooperative
      Assets or assigning the proprietary lease and (iv) the recognition agreement
      is
      on a form of agreement published by the Aztech Document Systems, Inc. or
      includes provisions which are no less favorable to the lender than those
      contained in such agreement;

     

    (li)  With
      respect to each Cooperative Loan, each original UCC financing statement,
      continuation statement or other governmental filing or recordation necessary
      to
      create or preserve the perfection and priority of the first priority lien and
      security interest in the Cooperative Assets and proprietary lease has been
      timely and properly made. Any security agreement, chattel mortgage or equivalent
      document related to the Cooperative Loan and delivered to the Mortgagor or
      its
      designee establishes in the Mortgagor a valid and subsisting perfected first
      lien on and security interest in the Mortgaged Property described therein,
      and
      the Mortgagor has full right to sell and assign the same; and

     

    (lii)  With
      respect to each Cooperative Loan, each acceptance of assignment and assumption
      of lease agreement contains enforceable provisions such as to render the rights
      and remedies of the holder thereof adequate for the realization of the benefits
      of the security provided thereby. The acceptance of assignment and assumption
      of
      lease agreement contains an enforceable provision for the acceleration of the
      payment of the unpaid principal balance of the Mortgage Note in the event the
      Cooperative Unit is transferred or sold without the consent of the holder
      thereof.

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 3.1 will inure to the benefit of the Purchaser, its successors and
      assigns, notwithstanding any restrictive or qualified endorsement on any
      Mortgage Note or assignment of Mortgage or the examination of any Mortgage
      File.

     

    B.  Remedies
      for Breach.

     

    1.  With
      respect to the representations and warranties contained herein that are made
      to
      the knowledge or the best knowledge of the related Seller or as to which the
      related Seller has no knowledge, if it is discovered that the substance of
      any
      such representation and warranty is inaccurate and the inaccuracy materially
      and
      adversely affects the value of the related Mortgage Loan, or the interest
      therein of the Purchaser or the Certificateholders, then notwithstanding the
      related Seller’s lack of knowledge with respect to the substance of such
      representation and warranty being inaccurate at the time the representation
      and
      warranty was made, such inaccuracy shall be deemed a breach of the applicable
      representation and warranty and the related Seller shall take such action
      described in the following paragraph of this Section 3.2(a) in respect of such
      Mortgage Loan.

     

    Upon
      discovery or receipt of notice of any materially defective document in, or
      that
      a document is missing from, a Mortgage File or of the breach by either Seller
      of
      any representation, warranty or covenant in Section 3.1(b) hereof in respect
      of
      any Mortgage Loan which materially adversely affects the value of such Mortgage
      Loan or the interest therein of the Purchaser or the Certificateholders, the
      applicable Seller shall deliver such missing document or cure such defect or
      breach within 90 days from the date such Seller was notified of such missing
      document, defect or breach, and if such Seller does not deliver such missing
      document or cure such defect or breach in all material respects during such
      period, the applicable Seller shall repurchase such Mortgage Loan from the
      Trust
      Fund at the Purchase Price within 90 days after the date on which such Seller
      was notified (subject to Section 3.2(c)) of such missing document, defect or
      breach. If such defect or breach can ultimately be cured but is not reasonably
      expected to be cured within the 90-day period, then the applicable Seller shall
      have such additional time, if any, as is reasonable, to cure such defect or
      breach, provided that the applicable Seller has commenced curing or correcting
      such defect or breach and is diligently pursuing the same. In lieu of
      repurchasing any such Mortgage Loan as provided above, the applicable Seller
      may
      cause such Mortgage Loan to be removed from the Trust Fund (in which case it
      shall become a Defective Mortgage Loan) and substitute one or more Eligible
      Substitute Mortgage Loans in the manner and subject to the limitations set
      forth
      in Section 3.2(c). If the breach of representation and warranty that gave rise
      to the obligation to repurchase or substitute a Mortgage Loan pursuant to this
      Section 3.2 was the representation and warranty set forth in clause (xlvi)
      of
      Section 3.1, then PHH Mortgage shall pay to the Trust Fund, concurrently with
      and in addition to the remedies provided in the preceding three sentences,
      an
      amount equal to any liability, penalty or expense that was actually incurred
      and
      paid out of or on behalf of the Trust Fund, and that directly resulted from
      such
      breach, or if incurred and paid by the Trust Fund thereafter, concurrently
      with
      such payment. It is understood and agreed that the obligation of the applicable
      Seller to cure or to repurchase (or to substitute for) any Mortgage Loan as
      to
      which a document is missing, a material defect in a constituent document exists
      or as to which such a breach has occurred and is continuing shall constitute
      the
      sole remedy respecting such omission, defect or breach available to the
      Purchaser. Notwithstanding the foregoing, in recognition of the Trust’s rights
      against PHH Mortgage with respect to the Mortgage Loans acquired by it from
      PHH
      Mortgage and conveyed to the Purchaser hereunder, the Purchaser shall have
      the
      right to cause PHH Mortgage to repurchase directly any Defective Mortgage Loan
      (other than as a result of a breach by BGRMT of Section 3.1(b)(iii) or
      3.1(b)(xv) hereof, in which case the Purchaser shall have the right to cause
      BGRMT to repurchase directly the Defective Mortgage Loan) acquired hereunder
      by
      the Purchaser from BGRMT.

     

    2.  Any
      substitution of Eligible Substitute Mortgage Loans for Defective Mortgage Loans
      made pursuant to Section 3.2(a), must be effected prior to the date which is
      two
      years after the Closing Date and in accordance with Section 2.03 of the Pooling
      and Servicing Agreement.

     

    In
      addition, the applicable Seller shall obtain at its own expense and deliver
      to
      the Trustee an Opinion of Counsel to the effect that such substitution will
      not
      cause (a) any federal tax to be imposed on the Trust Fund, including without
      limitation, any federal tax imposed on “prohibited transactions” under Section
      860F(a)(1) of the Code or on “contributions after the startup date” under
      Section 860G(d)(1) of the Code, or (b) any REMIC to fail to qualify as a REMIC
      at any time that any Certificate is outstanding.

     

    3.  Upon
      discovery by the Purchaser, a Seller, 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 within
      two Business Days give written notice thereof to the other parties. In
      connection therewith, the applicable Seller shall repurchase such Mortgage
      Loan
      from the Trust Fund at the Purchase Price or, subject to the limitations set
      forth in Section 2.03 of the Pooling and Servicing Agreement, substitute one
      or
      more Eligible Substitute Mortgage Loans for the affected Mortgage Loan within
      60
      days of the earlier of discovery or receipt of such notice with respect to
      such
      affected Mortgage Loan. Such repurchase or substitution shall be made by the
      applicable Seller if the affected Mortgage Loan’s status as a non-qualified
      mortgage is or results from a breach of any representation, warranty or covenant
      made by the applicable Seller. Any such repurchase or substitution shall be
      made
      in the same manner as set forth in Section 3.2(a).

     

    C.  Purchaser
      Representations and Warranties.
      The
      Purchaser hereby represents and warrants to the Sellers as of the Closing Date
      (or if otherwise specified below, as of the date so specified)
      that:

     

    1.  the
      Purchaser is a limited liability company duly organized, validly existing and
      in
      good standing under the laws of the State of Delaware;

     

    2.  the
      Purchaser has full corporate power to own its property, to carry on its business
      as presently conducted and to enter into and perform its obligations under
      this
      Agreement;

     

    3.  the
      execution and delivery by the Purchaser of this Agreement have been duly
      authorized by all necessary corporate action on the part of the Purchaser;
      and
      neither the execution and delivery of this Agreement, nor the consummation
      of
      the transactions herein contemplated hereby, nor compliance with the provisions
      hereof, will conflict with or result in a breach of, or constitute a default
      under, any of the provisions of any law, governmental rule, regulation,
      judgment, decree or order binding on the Purchaser or its properties or the
      certificate of formation or limited liability company agreement of the
      Purchaser, except those conflicts, breaches or defaults which would not
      reasonably be expected to have a material adverse effect on the Purchaser’s
      ability to enter into this Agreement and to consummate the transactions
      contemplated hereby;

     

    4.  the
      execution, delivery and performance by the Purchaser of this Agreement and
      the
      consummation of the transactions contemplated hereby do not require the consent
      or approval of, the giving of notice to, the registration with, or the taking
      of
      any other action in respect of, any state, federal or other governmental
      authority or agency, except those consents, approvals, notices, registrations
      or
      other actions as have already been obtained, given or made;

     

    5.  this
      Agreement has been duly executed and delivered by the Purchaser and, assuming
      due authorization, execution and delivery by the Sellers, constitutes a valid
      and binding obligation of the Purchaser enforceable against it in accordance
      with its terms (subject to applicable bankruptcy and insolvency laws and other
      similar laws affecting the enforcement of the rights of creditors generally);
      and

     

    6.  except
      as
      previously disclosed in the Prospectus Supplement, there are no actions, suits
      or proceedings pending or, to the knowledge of the Purchaser, threatened against
      the Purchaser, before or by any court, administrative agency, arbitrator or
      governmental body (i) with respect to any of the transactions contemplated
      by
      this Agreement or (ii) with respect to any other matter which in the judgment
      of
      the Purchaser if determined adversely to the Purchaser would reasonably be
      expected to materially and adversely affect the Purchaser’s ability to perform
      its obligations under this Agreement; and the Purchaser is not in default with
      respect to any order of any court, administrative agency, arbitrator or
      governmental body so as to materially and adversely affect the transactions
      contemplated by this Agreement;

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IV. 

    SELLER’S
      COVENANTS

     

    A.  Covenants
      of the Sellers.
      Each
      Seller hereby covenants that, except for the transfer hereunder with respect
      to
      the Mortgage Loans, each Seller will not sell, pledge, assign or transfer to
      any
      other Person, or grant, create, incur or assume any Lien on, any Mortgage Loan,
      whether now existing or hereafter created, or any interest therein; each Seller
      will notify the Trustee, on behalf of the Trust Fund, of the existence of any
      Lien (other than as provided above) on any Mortgage Loan immediately upon
      discovery thereof; and each Seller will defend the right, title and interest
      of
      the Trustee, on behalf of the Trust Fund, in, to and under the Mortgage Loans,
      whether now existing or hereafter created, against all claims of third parties
      claiming through or under the respective Seller.

     

      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    V.

    INDEMNIFICATION
      BY PHH MORTGAGE

    WITH
      RESPECT TO THE MORTGAGE LOANS

     

    A.  Indemnification
      With Respect to the Mortgage Loans.
      PHH
      Mortgage shall indemnify and hold harmless the Purchaser from and against any
      loss, liability or expense arising from the breach by either Seller of its
      representations and warranties in Section 3.1 of this Agreement (other than
      as a
      result of a breach by BGRMT of Section 3.1(b)(iii) or 3.1(b)(xv) hereof, in
      which case BGRMT shall indemnify and hold harmless the Purchaser from and
      against any loss, liability or expense arising from such breach) which
      materially and adversely affects the Purchaser’s interest in any Mortgage Loan
      or from the failure by either Seller to perform its obligations under this
      Agreement in any material respect, provided that neither PHH Mortgage nor BGRMT
      shall have any obligation to indemnify the Purchaser in respect of any loss,
      liability or expense that arises as a result of the Purchaser’s willful
      malfeasance, bad faith or gross negligence or as a result of the breach by
      the
      Purchaser of its obligations hereunder.

     

    B.  Limitation
      on Liability of the Sellers.
      None of
      the directors, officers, employees or agents of either Seller shall be under
      any
      liability to the Purchaser, it being expressly understood that all such
      liability is expressly waived and released as a condition of, and as
      consideration for, the execution of this Agreement. Except as and to the extent
      expressly provided in the Pooling and Servicing Agreement or this Agreement,
      the
      Sellers shall not be under any liability to the Trust Fund, the Trustee or
      the
      Certificateholders. The Sellers and any director, officer, employee or agent
      of
      each Seller 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.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    VI.

    TERMINATION

     

    A.  Termination.
      The
      respective obligations and responsibilities of each Seller and the Purchaser
      created hereby shall terminate, except for each Seller’s indemnity obligations
      as provided herein, upon the termination of the Trust Fund pursuant to the
      terms
      of the Pooling and Servicing Agreement.

     

      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    VII.

    MISCELLANEOUS
      PROVISIONS

     

    A.  Amendment.
      This
      Agreement may be amended from time to time by the Sellers and the Purchaser
      by
      written agreement signed by the Sellers and the Purchaser.

     

    B.  Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York and the obligations, rights and remedies of the parties
      hereunder shall be determined in accordance with such laws.

     

    C.  Notices.
      All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given if personally delivered at or mailed by
      registered mail, postage prepaid, addressed as follows:

     

    (i)  if
      to the
      PHH Mortgage:

     

    PHH
      Mortgage Corporation

    3000
      Leadenhall Road

    Mail
      Stop
      LGL

    Mt.
      Laurel, NJ 08054

    Attention:
      General Counsel

     

    or,
      such
      other address as may hereafter be furnished to the Purchaser and BGRMT in
      writing by PHH Mortgage.

     

    (ii)  if
      to
      BGRMT:

     

    c/o
      PHH
      Mortgage Corporation, as Administrator

    3000
      Leadenhall Road

    Mail
      Stop
      LGL

    Mt.
      Laurel, NJ 08054

    Attention:
      General Counsel

     

    or,
      such
      other address as may hereafter be furnished to the Purchaser and PHH Mortgage
      in
      writing by Trust.

     

    (iii)  if
      to the
      Purchaser:

     

    PHH
      Mortgage Capital LLC

    3000
      Leadenhall Road

    Mail
      Stop
      LGL

    Mt.
      Laurel, New Jersey 08054

    Attention:
      General Counsel

     

    or
      such
      other address as
      may
      hereafter be furnished to the Sellers in writing by the Purchaser.

     

    D.  Severability
      of Provisions.
      If any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be held invalid for any reason whatsoever. 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.

     

    E.  Relationship
      of Parties.
      Nothing
      herein contained shall be deemed or construed to create a partnership or joint
      venture between the parties hereto, and the services of each Seller shall be
      rendered as an independent contractor and not as agent for the
      Purchaser.

     

    F.  Counterparts.
      This
      Agreement may be executed in two or more counterparts and by the different
      parties hereto on separate counterparts, each of which, when so executed, shall
      be deemed to be an original and such counterparts together shall constitute
      one
      and the same Agreement.

     

    G.  Further
      Agreements.
      The
      Purchaser and the Sellers each agree to execute and deliver to the other such
      additional documents, instruments or agreements as may be necessary or
      appropriate to effectuate the purposes of this Agreement. The Purchaser and
      each
      Seller agrees to use its best reasonable efforts to take all actions necessary
      to be taken by it to cause the Certificates to be issued and rated in the
      highest rating category by each of the Rating Agencies, with the Certificates
      to
      be offered pursuant to the Purchaser’s shelf registration statement, and each
      party will cooperate with the other in connection therewith.

     

    H.  Intention
      of the Parties.
      It is
      the intention of the parties that the Purchaser is purchasing, and the Sellers
      are selling, the Mortgage Loans, rather than a loan by the Purchaser to the
      Sellers secured by the Mortgage Loans. Accordingly, the parties hereto each
      intend to treat this transaction with respect to the Mortgage Loans for federal
      income tax purposes as a sale by the Sellers, and a purchase by the Purchaser,
      of the Mortgage Loans. The Purchaser will have the right to review the Mortgage
      Loans and the related documents to determine the characteristics of the Mortgage
      Loans which will affect the federal income tax consequences of owning the
      Mortgage Loans and the Sellers will cooperate with all reasonable requests
      made
      by the Purchaser in the course of such review.

     

    I.  Successors
      and Assigns; Assignment of Purchase Agreement.
      This
      Agreement shall bind and inure to the benefit of and be enforceable by the
      Sellers, the Purchaser and their respective successors and assigns. The
      obligations of the Sellers under this Agreement cannot be assigned or delegated
      to a third party without the consent of the Purchaser, which consent shall
      be at
      the Purchaser’s sole discretion. The parties hereto acknowledge that the
      Purchaser is acquiring the Mortgage Loans for the purpose of assigning the
      Mortgage Loans to the Trustee, on behalf of the Trust Fund, for the benefit
      of
      the Certificateholders. As an inducement to the Purchaser to purchase the
      Mortgage Loans, each Seller acknowledges and consents to the assignment by
      the
      Purchaser to the Trustee, on behalf of the Trust Fund of all of the Purchaser’s
      rights against the Sellers pursuant to this Agreement and to the enforcement
      or
      exercise of any right or remedy against the Sellers pursuant to this Agreement
      by the Purchaser. Such enforcement of a right or remedy by the Trustee, on
      behalf of the Trust Fund, shall have the same force and effect as if the right
      or remedy had been enforced or exercised by the Purchaser directly.

     

    J.  Survival.
      The
      representations and warranties made herein by each Seller and the provisions
      of
      Article V hereof shall survive the purchase of the Mortgage Loans
      hereunder.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, the Seller and the Purchaser have caused their names to be
      signed to this Mortgage Loan Purchase Agreement by their respective officers
      thereunto duly authorized as of the day and year first above
      written.

     

    
      	 	 	 	 	 	 	 	
              PHH
                MORTGAGE CAPITAL LLC

            
	 	 	 	 	 	 	 	 	
              as
                Purchaser

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              PHH
                MORTGAGE CORPORATION

            
	 	 	 	 	 	 	 	 	
              as
                Seller

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              BISHOP’S
                GATE RESIDENTIAL MORTGAGE TRUST

            
	 	 	 	 	 	 	 	 	
              as
                Seller

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	
              PHH
                MORTGAGE CORPORATION,

              as
                Administrator

            
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 

    

    

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    Exhibit
      1

     

    MORTGAGE
      LOAN SCHEDULE

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      K

     

    ASSIGNMENT,
      ASSUMPTION AND RECOGNITION AGREEMENT

    (ADDITIONAL
      COLLATERAL SERVICING AGREEMENT)

     

    (Available
      Upon Request)

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      L

     

    PLANNED
      PRINCIPAL BALANCES

    

    

    
      	
              Distribution
                Date

            	
              Planned
                Principal

              Balance
                for Class A-4 Certificates

            
	
              Initial
                Balance

            	
              $31,959,229.00

            
	
              December
                18, 2006

            	
              31,959,229.00

            
	
              January
                18, 2007

            	
              31,959,229.00

            
	
              February
                18, 2007

            	
              31,959,229.00

            
	
              March
                18, 2007

            	
              31,959,229.00

            
	
              April
                18, 2007

            	
              31,959,229.00

            
	
              May
                18, 2007

            	
              31,959,229.00

            
	
              June
                18, 2007

            	
              31,959,229.00

            
	
              July
                18, 2007

            	
              31,959,229.00

            
	
              August
                18, 2007

            	
              31,959,229.00

            
	
              September
                18, 2007

            	
              31,959,229.00

            
	
              October
                18, 2007

            	
              31,959,229.00

            
	
              November
                18, 2007

            	
              31,959,229.00

            
	
              December
                18, 2007

            	
              31,959,229.00

            
	
              January
                18, 2008

            	
              31,959,229.00

            
	
              February
                18, 2008

            	
              31,959,229.00

            
	
              March
                18, 2008

            	
              31,959,229.00

            
	
              April
                18, 2008

            	
              31,959,229.00

            
	
              May
                18, 2008

            	
              31,959,229.00

            
	
              June
                18, 2008

            	
              31,959,229.00

            
	
              July
                18, 2008

            	
              31,959,229.00

            
	
              August
                18, 2008

            	
              31,959,229.00

            
	
              September
                18, 2008

            	
              31,390,087.83

            
	
              October
                18, 2008

            	
              30,805,009.74

            
	
              November
                18, 2008

            	
              30,204,212.43

            
	
              December
                18, 2008

            	
              29,587,921.21

            
	
              January
                18, 2009

            	
              28,956,368.81

            
	
              February
                18, 2009

            	
              28,309,795.26

            
	
              March
                18, 2009

            	
              27,648,447.65

            
	
              April
                18, 2009

            	
              26,973,133.63

            
	
              May
                18, 2009

            	
              26,298,861.97

            
	
              June
                18, 2009

            	
              25,627,154.53

            
	
              July
                18, 2009

            	
              24,957,993.52

            
	
              August
                18, 2009

            	
              24,291,361.28

            
	
              September
                18, 2009

            	
              23,627,240.17

            
	
              October
                18, 2009

            	
              22,965,612.64

            
	
              November
                18, 2009

            	
              22,306,461.19

            
	
              December
                18, 2009

            	
              21,649,768.41

            
	
              January
                18, 2010

            	
              20,995,516.94

            
	
              February
                18, 2010

            	
              20,343,689.48

            
	
              March
                18, 2010

            	
              19,694,268.80

            
	
              April
                18, 2010

            	
              19,047,237.74

            
	
              May
                18, 2010

            	
              18,402,579.19

            
	
              June
                18, 2010

            	
              17,760,276.11

            
	
              July
                18, 2010

            	
              17,120,311.53

            
	
              August
                18, 2010

            	
              16,482,668.53

            
	
              September
                18, 2010

            	
              15,847,330.27

            
	
              October
                18, 2010

            	
              15,214,279.94

            
	
              November
                18, 2010

            	
              14,583,500.81

            
	
              December
                18, 2010

            	
              13,954,976.22

            
	
              January
                18, 2011

            	
              13,328,689.55

            
	
              February
                18, 2011

            	
              12,704,624.26

            
	
              March
                18, 2011

            	
              12,082,763.84

            
	
              April
                18, 2011

            	
              11,463,091.87

            
	
              May
                18, 2011

            	
              10,845,591.96

            
	
              June
                18, 2011

            	
              10,230,247.80

            
	
              July
                18, 2011

            	
              9,617,043.13

            
	
              August
                18, 2011

            	
              9,005,961.74

            
	
              September
                18, 2011

            	
              8,396,987.48

            
	
              October
                18, 2011

            	
              7,790,104.27

            
	
              November
                18, 2011

            	
              7,185,296.06

            
	
              December
                18, 2011

            	
              6,733,373.17

            
	
              January
                18, 2012

            	
              6,283,939.13

            
	
              February
                18, 2012

            	
              5,836,980.74

            
	
              March
                18, 2012

            	
              5,392,484.84

            
	
              April
                18, 2012

            	
              4,950,438.35

            
	
              May
                18, 2012

            	
              4,510,828.26

            
	
              June
                18, 2012

            	
              4,073,641.61

            
	
              July
                18, 2012

            	
              3,638,865.52

            
	
              August
                18, 2012

            	
              3,206,487.17

            
	
              September
                18, 2012

            	
              2,776,493.79

            
	
              October
                18, 2012

            	
              2,348,872.70

            
	
              November
                18, 2012

            	
              1,923,611.26

            
	
              December
                18, 2012

            	
              1,519,740.97

            
	
              January
                18, 2013

            	
              1,128,392.27

            
	
              February
                18, 2013

            	
              749,240.73

            
	
              March
                18, 2013

            	
              381,969.73

            
	
              April
                18, 2013

            	
                
                26,270.29

            
	
              May
                18, 2013 and thereafter

            	
                        
                0.00

            

    

     

    
 

    EXHIBIT
      M

     

    FORM
      OF
      FORM 10-K CERTIFICATE

     

    I,
      [identify the certifying individual], certify that:

     

    1.  I
      have
      reviewed this 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 the trust
      (the “Trust”) created pursuant to the Pooling and Servicing Agreement dated
      November 1, 2006 (the “Agreement”) among PHH Mortgage Capital LLC (the
“Depositor”), PHH Mortgage Corporation (the “Master Servicer”) and Citibank,
      N.A. (the “Trustee”) (the “Exchange Act periodic reports”);

     

    2.  Based
      on
      my knowledge, the Exchange Act periodic 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;

     

    3.  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 periodic reports;

     

    4.  I
      am
      responsible for reviewing the activities performed by the Master Servicer and
      based on my knowledge and the compliance review conducted in preparing the
      servicer compliance statement required in this report under Item 1123 of
      Regulation AB, and except as disclosed in the Exchange Act periodic reports,
      the
      Master Servicer has fulfilled its obligations under the Agreement in all
      material respects; and

     

    5.  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 the information provided
      to me by the following unaffiliated parties: the Trustee.

     

    Date:____________

     

    _________________________________*

     

    [Signature]

     

    Name:

     

    Title:

     

    *
      - to be
      signed by the Chief Executive Officer of the Master Servicer

     

    

    EXHIBIT
      N

     

    FORM
      OF
      BACK-UP CERTIFICATION TO FORM 10-K CERTIFICATE

     

    PHH
      Mortgage Corporation

    3000
      Leadenhall Road

    Mt.
      Laurel, New Jersey 08054

     

    
      	 	
              Re:

            	
               PHHMC
                Mortgage Pass-Through Certificates, Series
                2006-4

            

    

    

     

    Reference
      is made to the Pooling and Servicing Agreement, dated as of November 1, 2006
      (the “Pooling and Servicing Agreement”), by and among Citibank, N.A., as trustee
      (the “Trustee”), PHH Mortgage Corporation, as master servicer (the “Master
      Servicer”) and PHH Mortgage Capital LLC, as depositor (the “Depositor”). The
      Trustee, hereby certifies to the Master Servicer, and its officers, directors
      and affiliates, and with the knowledge and intent that they will rely upon
      this
      certification, that:

     

    
      	 	
              (i)

            	
              The
                Trustee has reviewed the annual report on Form 10-K for the fiscal
                year
                _____, and all reports on Form 10-D containing distribution reports
                filed
                in respect of periods included in the year covered by that annual
                report,
                relating to the above-referenced
                trust;

            

    

     

    
      	 	
              (ii)

            	
              Based
                on my knowledge, the information set forth in the reports on Form
                10-K and
                Form 10-D referenced in (i) above (including the distribution reports)
                does not contain any untrue statement of material fact subject to
                the
                accuracy of the information provided to us by the Master Servicer
                and
                includes all information required to be stated therein;
                and

            

    

     

    
      	 	
              (iii)

            	
              Based
                on my knowledge, all distribution information required to be provided
                by
                the Trustee under the Pooling and Servicing Agreement is included
                in these
                reports.

            

    

     

    Date:

     

    
      	 	 	 	 	 	 	 	
              [______________],
                as Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name:

            	 
	 	 	 	 	 	 	 	
              Title:

            	 

    

    

     

    

     

    EXHIBIT
      O

     

    SERVICING
      CRITERIA TO BE ADDRESSED

    IN
      ASSESSMENT OF COMPLIANCE

    Key:

    X
      -
      obligation

    [X]
      - under
      consideration for obligation

    

    Where
      there are multiple checks for criteria the attesting party will identify in
      their management assertion that they are attesting only to the portion of the
      distribution chain they are responsible for in the related transaction
      agreements.

    

    

    
      	
              Reg
                AB Reference

            	
              Servicing
                Criteria

            	
              Primary
                Servicer

            	
              Master
                Servicer

            	
              Trustee

            
	 	 	 	 	 
	
              1122(d)(1)(i)

            	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements.

            	
              X

            	
              X

            	 
	
              1122(d)(1)(ii)

            	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities.

            	
              X

            	
              X

            	
              X

            
	
              1122(d)(1)(iii)

            	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the Pool Assets are maintained. 

            	 	 	 
	
              1122(d)(1)(iv)

            	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements. 

            	
              X

            	
              X

            	 
	 	
              Cash
                Collection and Administration

            	 	 	 
	
              1122(d)(2)(i)

            	
              Payments
                on pool assets are deposited into the appropriate custodial bank
                accounts
                and related bank clearing accounts no more than two business days
                following receipt, or such other number of days specified in the
                transaction agreements. 

            	
              X

            	
              X

            	
              X

            
	
              1122(d)(2)(ii)

            	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel. 

            	
              X

            	
              X

            	
              X

            
	
              1122(d)(2)(iii)

            	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances, are made,
                reviewed and approved as specified in the transaction agreements.
                

            	
              X

            	
              X

            	 
	
              1122(d)(2)(iv)

            	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of over collateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements. 

            	 	 	
              X

            
	
              1122(d)(2)(v)

            	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institution” with respect to
                a foreign financial institution means a foreign financial institution
                that
                meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                Act.
                

            	
              X

            	
              X

            	 
	
              1122(d)(2)(vi)

            	
              Unissued
                checks are safeguarded so as to prevent unauthorized access.
                

            	
              X

            	
              X

            	 
	
              1122(d)(2)(vii)
                

            	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within 30 calendar days after the bank statement cutoff
                date, or
                such other number of days specified in the transaction agreements;
                (C)
                reviewed and approved by someone other than the person who prepared
                the
                reconciliation; and (D) contain explanations for reconciling items.
                These
                reconciling items are resolved within 90 calendar days of their original
                identification, or such other number of days specified in the transaction
                agreements. 

            	
              X

            	
              X

            	
              X

            
	 	
              Investor
                Remittances and Reporting

            	 	 	 
	
              1122(d)(3)(i)

            	
              Reports
                to investors, including those to be filed with the Commission, are
                maintained in accordance with the transaction agreements and applicable
                Commission requirements. Specifically, such reports (A) are prepared
                in
                accordance with timeframes and other terms set forth in the transaction
                agreements; (B) provide information calculated in accordance with
                the
                terms specified in the transaction agreements; (C) are filed with
                the
                Commission as required by its rules and regulations; and (D) agree
                with
                investors’ or the trustee’s records as to the total unpaid principal
                balance and number of Pool Assets serviced by the Servicer.
                

            	
              X

            	
              X

            	
              X

            
	
              1122(d)(3)(ii)

            	
              Amounts
                due to investors are allocated and remitted in accordance with timeframes,
                distribution priority and other terms set forth in the transaction
                agreements. 

            	
              X

            	
              X

            	
              X

            
	
              1122(d)(3)(iii)

            	
              Disbursements
                made to an investor are posted within two business days to the Servicer’s
                investor records, or such other number of days specified in the
                transaction agreements. 

            	
              X

            	
              X

            	
              X

            
	
              1122(d)(3)(iv)

            	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank statements.
                

            	
              X

            	
              X

            	
              X

            
	 	
              Pool
                Asset Administration

            	 	 	 
	
              1122(d)(4)(i)
                

            	
              Collateral
                or security on pool assets is maintained as required by the transaction
                agreements or related pool asset documents. 

            	
              X

            	
              X

            	
              X*

            
	
              1122(d)(4)(ii)

            	
              Pool
                assets and related documents are safeguarded as required by the
                transaction agreements 

            	
              X

            	
              X

            	
              X*

            
	
              1122(d)(4)(iii)

            	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements. 

            	
              X

            	
              X

            	 
	
              1122(d)(4)(iv)

            	
              Payments
                on pool assets, including any payoffs, made in accordance with the
                related
                pool asset 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 pool asset documents. 

            	
              X

            	
              X

            	 
	
              1122(d)(4)(v)

            	
              The
                Servicer’s records regarding the pool assets agree with the Servicer’s
                records with respect to an obligor’s unpaid principal balance.
                

            	
              X

            	
              X

            	 
	
              * The
                Trustee or its subcontractor shall provide assessment regarding these
                criteria.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              1122(d)(4)(vi)

            	
              Changes
                with respect to the terms or status of an obligor's pool assets (e.g.,
                loan modifications or re-agings) are made, reviewed and approved
                by
                authorized personnel in accordance with the transaction agreements
                and
                related pool asset documents. 

            	
              X

            	
              X

            	 
	
              1122(d)(4)(vii)

            	
              Loss
                mitigation or recovery actions (e.g., forbearance plans, modifications
                and
                deeds in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                agreements. 

            	
              X

            	
              X

            	 
	
              1122(d)(4)(viii)

            	
              Records
                documenting collection efforts are maintained during the period a
                pool
                asset 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 pool assets including, for example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or unemployment).
                

            	
              X

            	
              X

            	 
	
              1122(d)(4)(ix)

            	
              Adjustments
                to interest rates or rates of return for pool assets with variable
                rates
                are computed based on the related pool asset documents. 

            	
              X

            	
              X

            	 
	
              1122(d)(4)(x)

            	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s pool asset 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 pool asset documents and
                state
                laws; and (C) such funds are returned to the obligor within 30 calendar
                days of full repayment of the related pool assets, or such other
                number of
                days specified in the transaction agreements. 

            	
              X

            	
              X

            	 
	
              1122(d)(4)(xi)

            	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements. 

            	
              X

            	
              X

            	 
	
              1122(d)(4)(xii)

            	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the Servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission. 

            	
              X

            	
              X

            	 
	
              1122(d)(4)(xiii)

            	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements. 

            	
              X

            	
              X

            	 
	
              1122(d)(4)(xiv)
                

            	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements. 

            	 	
              X

            	 
	
              1122(d)(4)(xv)

            	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements. 

            	 	 	 

    

    

    

    

    EXHIBIT
      P

    

    FORM
      10-D, FORM 8-K AND FORM 10-K REPORTING RESPONSIBILITY

     

    As
      to
      each item described below, the entity indicated as the Responsible Party shall
      be primarily responsible for reporting the information to the Trustee pursuant
      to Section 8.17(a)(i), (ii) and (iii). If the Trustee is indicated below as
      to
      any item, then the Trustee is primarily responsible for obtaining that
      information. 

    

    Under
      Item 1 of Form 10-D: a) items marked “4.02 statement” are required to be
      included in the monthly statement under Section 4.02, provided by the Trustee
      based on information received from the Master Servicer to the extent required
      of
      the Master Servicer under the Pooling and Servicing Agreement; and b) items
      marked “Form 10-D report” are required to be in the Form 10-D report but not the
      4.02 statement, provided by the party indicated. Information under all other
      Items of Form 10-D is to be included in the Form 10-D report. Items indicated
      as
“N/A” are not applicable to the transaction.

    

    For
      purposes of this Exhibit, “Servicer” includes the Special Servicer.

    

    
      	
              Form

            	
              Item

            	
              Description

            	
              Responsible
                Party

            
	
              10-D

            	 	 	 
	
              1

            	
              Distribution
                and Pool Performance Information

            	 
	
              Item
                1121(a) - Distribution and Pool Performance
                Information

            	 
	
              (1)
                Any applicable record dates, accrual dates, determination dates for
                calculating distributions and actual distribution dates for the
                distribution period.

            	
              4.02
                statement

            
	
              (2)
                Cash flows received and the sources thereof for distributions, fees
                and
                expenses.

            	
              4.02
                statement

            
	
              (3)
                Calculated amounts and distribution of the flow of funds for the
                period
                itemized by type and priority of payment, including:

            	
              4.02
                statement

            
	
              (i)
                Fees or expenses accrued and paid, with an identification of the
                general
                purpose of such fees and the party receiving such fees or
                expenses.

            	
              4.02
                statement

            
	
              (ii)
                Payments accrued or paid with respect to enhancement or other support
                identified in Item 1114 of Regulation AB (such as insurance premiums
                or
                other enhancement maintenance fees), with an identification of the
                general
                purpose of such payments and the party receiving such
                payments.

            	
              N/A

            
	
              (iii)
                Principal, interest and other distributions accrued and paid on the
                asset-backed securities by type and by class or series and any principal
                or interest shortfalls or carryovers.

            	
              4.02
                statement

            
	
              (iv)
                The amount of excess cash flow or excess spread and the disposition
                of
                excess cash flow.

            	
              N/A

            
	
              (4)
                Beginning and ending principal balances of the asset-backed
                securities.

            	
              4.02
                statement

            
	
              (5)
                Interest rates applicable to the pool assets and the asset-backed
                securities, as applicable. Consider providing interest rate information
                for pool assets in appropriate distributional groups or incremental
                ranges.

            	
              4.02
                statement

            
	
              (6)
                Beginning and ending balances of transaction accounts, such as reserve
                accounts, and material account activity during the period.

            	
              4.02
                statement

            
	
              (7)
                Any amounts drawn on any credit enhancement or other support identified
                in
                Item 1114 of Regulation AB, as applicable, and the amount of coverage
                remaining under any such enhancement, if known and
                applicable.

            	
              N/A

            
	
              (8)
                Number and amount of pool assets at the beginning and ending of each
                period, and updated pool composition information, such as weighted
                average
                coupon, weighted average life, weighted average remaining term, pool
                factors and prepayment amounts.

            	
              4.02
                statement

               

              Updated
                pool composition information fields to be as reasonably requested
                by
                Depositor in writing to the Master Servicer and the Trustee at least
                30
                days prior to the related Remittance Date from time to
                time

            
	
              (9)
                Delinquency and loss information for the period. 

               

              In
                addition, describe any material changes to the information specified
                in
                Item 1100(b)(5) of Regulation AB regarding the pool
                assets.

            	
              4.02
                statement.

               

               

              Form
                10-D report: PHH Mortgage Corporation/Depositor

            
	
              (10)
                Information on the amount, terms and general purpose of any advances
                made
                or reimbursed during the period, including the general use of funds
                advanced and the general source of funds for
                reimbursements.

            	
              4.02
                statement

            
	
              (11)
                Any material modifications, extensions or waivers to pool asset terms,
                fees, penalties or payments during the distribution period or that
                have
                cumulatively become material over time.

            	
              Form
                10-D report: PHH Mortgage Corporation

            
	
              (12)
                Material breaches of pool asset representations or warranties or
                transaction covenants.

            	
              Form
                10-D report: PHH Mortgage (subject to Depositor
                approval)

            
	
              (13)
                Information on ratio, coverage or other tests used for determining
                any
                early amortization, liquidation or other performance trigger and
                whether
                the trigger was met.

            	
              4.02
                statement

            
	
              (14)
                Information regarding any new issuance of asset-backed securities
                backed
                by the same asset pool, 

               

              [information
                regarding] any pool asset changes (other than in connection with
                a pool
                asset converting into cash in accordance with its terms), such as
                additions or removals in connection with a prefunding or revolving
                period
                and pool asset substitutions and repurchases (and purchase rates,
                if
                applicable), and cash flows available for future purchases, such
                as the
                balances of any prefunding or revolving accounts, if
                applicable.

               

              Disclose
                any material changes in the solicitation, credit-granting, underwriting,
                origination, acquisition or pool selection criteria or procedures,
                as
                applicable, used to originate, acquire or select the new pool
                assets.

            	
              Form
                10-D report: Depositor

               

               

              Form
                10-D report: PHH Mortgage Corporation (subject to Depositor
                approval)

               

               

               

               

               

               

               

              Form
                10-D report: PHH Mortgage Corporation (subject to Depositor
                approval)

            
	
              Item
                1121(b) - Pre-Funding or Revolving Period Information

               

              Updated
                pool information as required under Item 1121(b).

            	
              N/A

            
	
              2

            	
              Legal
                Proceedings

            	 
	
              Item
                1117 - Legal proceedings pending against the following entities,
                or their
                respective property, that is material to Certificateholders, including
                proceedings known to be contemplated by governmental
                authorities:

               

              Sponsor
                (Seller)

               

              Depositor

               

              Trustee

               

              Issuing
                entity

               

              Servicer
                or any Subservicer to which Servicer delegates servicing function
                to that
                is servicing 20% or more of pool assets at time of report

               

              Originator
                of 20% or more of pool assets as of the Cut-off Date

               

              Custodian

            	
               

               

               

               

              Seller

               

              Depositor

               

              Trustee

               

              Depositor

               

              Master
                Servicer

               

               

               

               

              Master
                Servicer

               

               

              Trustee

            
	
              3

            	
              Sales
                of Securities and Use of Proceeds

            	 
	
              Information
                from Item 2(a) of Part II of Form 10-Q:

               

              With
                respect to any sale of securities by the sponsor, depositor or issuing
                entity, that are backed by the same asset pool or are otherwise issued
                by
                the issuing entity, whether or not registered, provide the sales
                and use
                of proceeds information in Item 701 of Regulation S-K. Pricing information
                can be omitted if securities were not registered.

            	
              Depositor

            
	
              4

            	
              Defaults
                Upon Senior Securities

            	 
	
              Information
                from Item 3 of Part II of Form 10-Q:

               

              Report
                the occurrence of any Event of Default of which the Trustee has received
                written notice or has actual knowledge (after expiration of any grace
                period and provision of any required notice)

            	
              Trustee

            
	
              5

            	
              Submission
                of Matters to a Vote of Security Holders

            	 
	
              Information
                from Item 4 of Part II of Form 10-Q

            	
              Trustee

            
	
              6

            	
              Significant
                Obligors of Pool Assets

            	 
	
              Item
                1112(b) - Significant
                Obligor Financial Information*

            	
              N/A

            
	
              *This
                information need only be reported on the Form 10-D for the distribution
                period in which updated information is required pursuant to the
                Item.

            	 
	
              7

            	
              Significant
                Enhancement Provider Information

            	 
	
              Item
                1114(b)(2) - Credit Enhancement Provider Financial
                Information*

               

              Determining
                applicable disclosure threshold

               

               

              Obtaining
                required financial information or effecting incorporation by
                reference

            	
              N/A

            
	
              Item
                1115(b) - Derivative Counterparty Financial Information*

               

              Determining
                current maximum probable exposure

               

              Determining
                current significance percentage

               

               

              Obtaining
                required financial information or effecting incorporation by
                reference

            	
               

               

               

              N/A

               

               

              N/A

               

               

               

              N/A

            
	
              *This
                information need only be reported on the Form 10-D for the distribution
                period in which updated information is required pursuant to the
                Items.

            	 
	
              8

            	
              Other
                Information

            	 
	
              Disclose
                any information required to be reported on Form 8-K during the period
                covered by the Form 10-D but not reported

            	
              The
                Responsible Party for the applicable Form 8-K item as indicated
                below

            
	
              9

            	
              Exhibits

            	 
	
              Distribution
                report

            	
              Trustee

            
	
              Exhibits
                required by Item 601 of Regulation S-K, such as material
                agreements

            	
              Depositor

            
	
              8-K

            	 
	
              1.01

            	
              Entry
                into a Material Definitive Agreement

            	 
	
              Disclosure
                is required regarding entry into or amendment of any definitive agreement
                that is material to the securitization, even if depositor is not
                a party.
                

               

              Examples:
                servicing agreement, custodial agreement.

               

              Note:
                disclosure not required as to definitive agreements that are fully
                disclosed in the prospectus

            	
              Any
                of the following that is entering into a material definitive agreement:
                Master Servicer, Trustee, Depositor

            
	
              1.02

            	
              Termination
                of a Material Definitive Agreement

            	 
	
              Disclosure
                is required regarding termination of any definitive agreement that
                is
                material to the securitization (other than expiration in accordance
                with
                its terms), even if depositor is not a party. 

               

              Examples:
                servicing agreement, custodial agreement.

            	
              Any
                of the following that is requesting termination of a material definitive
                agreement: Master Servicer, Trustee, Depositor

            
	
              1.03

            	
              Bankruptcy
                or Receivership

            	 
	
              Disclosure
                is required regarding the bankruptcy or receivership, if known to
                the
                Depositor, with respect to any of the following: 

               

              Sponsor
                (Seller), Depositor, Master Servicer, affiliated Servicer, other
                Servicer
                servicing 20% or more of pool assets at time of report, other material
                servicers, Trustee, significant obligor, credit enhancer (10% or
                more),
                derivatives counterparty, Custodian

            	
              Any
                of the following that is in bankruptcy or receivership: Master Servicer,
                Trustee, Depositor, Custodian (to be provided by
                Trustee)

            
	
              2.04

            	
              Triggering
                Events that Accelerate or Increase a Direct Financial Obligation
                or an
                Obligation under an Off-Balance Sheet Arrangement

            	 
	
              Includes
                an early amortization, performance trigger or other event, including
                event
                of default, that would materially alter the payment priority/distribution
                of cash flows/amortization schedule.

               

              Disclosure
                will be made of events other than waterfall triggers which are disclosed
                in the 4.06 statement

            	
              Trustee

            
	
              3.03

            	
              Material
                Modification to Rights of Security Holders

            	 
	
              Disclosure
                is required of any material modification to documents defining the
                rights
                of Certificateholders, including the Pooling and Servicing
                Agreement

            	
              Trustee
                (or Depositor, if the Trustee is not a party to such agreement or
                required
                to provide prior written consent to such amendment)

            
	
              5.03

            	
              Amendments
                to Articles of Incorporation or Bylaws; Change in Fiscal
                Year

            	 
	
              Disclosure
                is required of any amendment “to the governing documents of the issuing
                entity”

            	
              Depositor

            
	
              5.06

            	
              Change
                in Shell Company Status

            	 
	
              [Not
                applicable to ABS issuers]

            	
              N/A

            
	
              6.01

            	
              ABS
                Informational and Computational Material

            	
              Depositor

            
	
              [Not
                included in reports to be filed under Section 8.12]

            
	
              6.02

            	
              Change
                of Servicer or Trustee

            
	
              Requires
                disclosure of any removal, replacement, substitution or addition
                of any
                master servicer, affiliated servicer, other servicer servicing 10%
                or more
                of pool assets at time of report, other material servicers, certificate
                administrator or trustee. Reg AB disclosure about any new servicer
                or
                trustee is also required.

            	
              Trustee
                

            
	
              6.03

            	
              Change
                in Credit Enhancement or Other External Support

            	 
	
              Covers
                termination of any enhancement in manner other than by its terms,
                the
                addition of an enhancement, or a material change in the enhancement
                provided. Applies to external credit enhancements as well as derivatives.
                Reg AB disclosure about any new enhancement provider is also
                required.

            	
              N/A

            
	
              6.04

            	
              Failure
                to Make a Required Distribution

            	
              Trustee

            
	
              6.05

            	
              Securities
                Act Updating Disclosure

            	 
	
              If
                any material pool characteristic differs by 5% or more at the time
                of
                issuance of the securities from the description in the final prospectus,
                provide updated Reg AB disclosure about the actual asset
                pool.

            	
              Depositor

            
	
              If
                there are any new servicers or originators required to be disclosed
                under
                Regulation AB as a result of the foregoing, provide the information
                called
                for in Items 1108 and 1110 respectively.

            	
              Depositor

            
	
              7.01

            	
              Regulation
                FD Disclosure

            	
              Depositor

            
	
              8.01

            	
              Other
                Events

            	 
	
              Any
                event, with respect to which information is not otherwise called
                for in
                Form 8-K, that the registrant deems of importance to security
                holders.

            	
              Depositor

            
	
              9.01

            	
              Financial
                Statements and Exhibits

            	
              The
                Responsible Party applicable to reportable event

            
	
              10-K

            	 
	
              9B

            	
              Other
                Information

            	 
	
              Disclose
                any information required to be reported on Form 8-K during the fourth
                quarter covered by the Form 10-K but not reported

            	
              The
                Responsible Party for the applicable Form 8-K item as indicated
                above

            
	
              15

            	
              Exhibits
                and Financial Statement Schedules

            	 
	
              Item
                1112(b) - Significant
                Obligor Financial Information

            	
              N/A

            
	
              Item
                1114(b)(2) - Credit Enhancement Provider Financial
                Information

               

              Determining
                applicable disclosure threshold

               

              Obtaining
                required financial information or effecting incorporation by
                reference

            	
              N/A

            
	
              Item
                1115(b) - Derivative Counterparty Financial Information

               

              Determining
                current maximum probable exposure

               

              Determining
                current significance percentage

               

              Obtaining
                required financial information or effecting incorporation by
                reference

            	
               

               

               

              N/A

               

              N/A

               

              N/A

            
	
              Item
                1117 - Legal proceedings pending against the following entities,
                or their
                respective property, that is material to Certificateholders, including
                proceedings known to be contemplated by governmental
                authorities:

               

              Sponsor
                (Seller)

               

              Depositor

               

              Trustee

               

              Issuing
                entity

               

              Servicer
                or any other Subservicer to which Servicer delegates servicing function
                to
                that is servicing 20% or more of pool assets at time of
                report

               

              Originator
                of 20% or more of pool assets as of the Cut-off Date

               

              Custodian

            	
               

               

               

               

               

              PHH
                Mortgage Corporation

               

              Depositor

               

              Trustee

               

              Depositor

               

              Master
                Servicer

               

               

              Depositor

               

               

              Trustee

            
	
              Item
                1119 - Affiliations and relationships between the following entities,
                or
                their respective affiliates, that are material to
                Certificateholders:

               

              Sponsor
                (Seller)

               

              Depositor

               

              Trustee

               

              Servicer
                or any other Subservicer to which Servicer delegates servicing function
                to
                that is servicing 20% or more of pool assets at time of
                report

               

              Originator

               

              Custodian

               

              Counterparty

            	
               

               

               

              PHH
                Mortgage Corporation

               

              Depositor

               

              Trustee

               

              Master
                Servicer

               

               

               

               

              Depositor

               

              Trustee

               

              N/A

            
	
              Item
                1122 - Assessment of Compliance with Servicing
                Criteria

            	
              Trustee,
                Master Servicer, Custodian (to be provided by Trustee)

            
	
              Item
                1123 - Servicer Compliance Statement

            	
              Master
                Servicer

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      Q

     

    TRANSACTION
      PARTIES

     

    
 

    Sponsor
      -
      PHH Mortgage Corporation

    

    Depositor
      - PHH Mortgage Capital LLC

    

    Issuing
      Entity - PHHMC Series 2006-4 Trust

    

    Master
      Servicer - PHH Mortgage Corporation

    

    Originator
      - PHH Mortgage Corporation

    

    Custodian
      - Treasury Bank, a division of Countrywide Bank, N.A.

    

    Trustee
      -
      Citibank, N.A.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]