Document:

Exhibit 10.1 Korea Unit Purchase Agreement November 2006

    
      
 

      Exhibit
        10.1

       

       

      
 

      

      

      UNIT
        PURCHASE AGREEMENT

      

      By
        and Among

      

      OUTBACK
        STEAKHOUSE INTERNATIONAL, L.P.

      

      and

      

      EUN
        TAE CHUNG, CHAI WOO YI, YOON HEE EOH

      

      

      

      November
        8, 2006

      

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
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        Table
          of Contents

      

      Page
        No.

    

    
       

      
        
          	
                  ARTICLE
                    I

                	
                  TRANSFER
                    OF UNITS AND PURCHASE PRICE.................................

                	
                  1

                
	
                   1.01.

                	
                  Agreement
                    to Buy and Sell ..............................................................

                	
                  1

                
	
                   1.02.

                	
                  Purchase
                    Price ..............................................................................

                	
                  1

                
	
                   1.03.

                	
                  Effective
                    Date ...............................................................................

                	
                  2

                
	
                   1.04.

                	
                  Sellers’
                    Representative ...................................................................

                	
                  2

                
	
                   1.05.

                	
                  Transfer
                    Taxes ..............................................................................

                	
                  2

                
	 	 	 	 	 	 	 	 
	
                  ARTICLE
                    II

                	
                  REPRESENTATIONS
                    AND WARRANTIES OF SELLERS .....................

                	
                  2

                
	
                   2.01.

                	
                  Authority
                    and Validity ...................................................................

                	
                  2

                
	
                   2.02.

                	
                  Concerning
                    the Units .....................................................................

                	
                  3

                
	
                   2.03.

                	
                  Debts:
                    Affiliates ............................................................................

                	
                  3

                
	
                   2.04.

                	
                  Liability
                    for Company Obligations .....................................................

                	
                  3

                
	
                   2.05.

                	
                  Financial
                    Statements ......................................................................

                	
                  3

                
	
                   2.06.

                	
                  No
                    Material Adverse Change ...........................................................

                	
                  4

                
	
                   2.07.

                	
                  Taxes
                    ..........................................................................................

                	
                  4

                
	
                   2.08.

                	
                  Inventory
                    ....................................................................................

                	
                  4

                
	
                   2.09.

                	
                  Litigation
                    ....................................................................................

                	
                  5

                
	
                   2.10.

                	
                  Commitments
                    ...............................................................................

                	
                  5

                
	
                   2.11.

                	
                  Assets
                    ........................................................................................

                	
                  5

                
	
                   2.12.

                	
                  Accuracy
                    of Information Furnished ..................................................

                	
                  5

                
	 	 	 	 	 	 	 	 
	
                  ARTICLE
                    III

                	
                  REPRESENTATIONS
                    AND WARRANTIES OF BUYER .......................

                	
                  5

                
	
                   3.01.

                	
                  Organization
                    and Good Standing ......................................................

                	
                  5

                
	
                   3.02.

                	
                  Authorization
                    and Validity ...............................................................

                	
                  5

                
	
                   3.03.

                	
                  Investment
                    Intent ..........................................................................

                	
                  6

                
	
                   3.04.

                	
                  No
                    Violation .................................................................................

                	
                  6

                
	 	 	 	 	 	 	 	 
	
                  ARTICLE
                    IV

                	
                  CONDUCT
                    PRIOR TO CLOSING ....................................................

                	
                  6

                
	
                   4.01.

                	
                  Third-Party
                    Approvals ....................................................................

                	
                  6

                
	
                   4.02.

                	
                  Obstruction
                    of Purpose ...................................................................

                	
                  6

                
	
                   4.03.

                	
                  Reasonable
                    Efforts .........................................................................

                	
                  6

                
	
                   4.04.

                	
                  Competing
                    Proposals ......................................................................

                	
                  6

                
	
                   4.05.

                	
                  Supplement
                    to Schedules ................................................................

                	
                  7

                
	 	 	 	 	 	 	 	 
	
                  ARTICLE
                    V

                	
                  CONDITIONS
                    TO CLOSING ..........................................................

                	
                  7

                
	
                   5.01.

                	
                  Conditions
                    to Sellers' Obligation .......................................................

                	
                  7

                
	
                   5.02.

                	
                  Conditions
                    to Buyer’s Obligations ....................................................

                	
                  7

                
	 	 	 	 	 	 	 	 
	
                  ARTICLE
                    VI

                	
                  THE
                    CLOSING ...........................................................................

                	
                  8

                
	
                   6.01.

                	
                  Closing
                    ........................................................................................

                	
                  8

                
	
                   6.02.

                	
                  Execution
                    and Delivery of Closing Documents ...................................

                	
                  8

                
	
                   6.03.

                	
                  Simultaneous
                    Transactions ..............................................................

                	
                  9

                

        

         

      

       

      
        
          
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                    ARTICLE
                      VII

                  	
                    TERMINATION
                      PRIOR TO THE CLOSING .....................................

                  	
                    9

                  
	
                     
                      7.01.

                  	
                    Termination
                      of Agreement ...............................................................

                  	
                    9

                  
	
                     
                      7.02.

                  	
                    Effect
                      of Termination .....................................................................

                  	
                    9

                  
	
                     
                      7.03.

                  	
                    Expenses
                      .......................................................................................

                  	
                    9

                  
	
                     
                      7.04.

                  	
                    Procedure
                      Upon Termination ............................................................

                  	
                    9

                  
	 	 	 	 	 	 	 	 
	
                    ARTICLE
                      VIII

                  	
                    POST-CLOSING
                      MATTERS ........................................................

                  	
                    10

                  
	
                     
                      8.01.

                  	
                    Non-Competition
                      and Non-Solicitation ..............................................

                  	
                    10

                  
	
                     
                      8.02.

                  	
                    Confidentiality;
                      Return of Materials .................................................

                  	
                    10

                  
	
                     
                      8.03.

                  	
                    Consideration
                      ...............................................................................

                  	
                    11

                  
	
                     
                      8.04.

                  	
                    Equitable
                      Relief .............................................................................

                  	
                    11

                  
	
                     
                      8.05.

                  	
                    Prior
                      Obligations ...........................................................................

                  	
                    11

                  
	 	 	 	 	 	 	 	 
	
                    ARTICLE
                      IX

                  	
                    MISCELLANEOUS
                      ........................................................................

                  	
                    11

                  
	
                     
                      9.01.

                  	
                    Dispute
                      Resolution ......................................................................

                  	
                    11

                  
	
                     
                      9.02.

                  	
                    Notices
                      .......................................................................................

                  	
                    13

                  
	
                     
                      9.03.

                  	
                    Assignment;
                      Extensions and Waivers ...............................................

                  	
                    13

                  
	
                     
                      9.04.

                  	
                    Survival
                      of Representations and Warranties .......................................

                  	
                    13

                  
	
                     
                      9.05.

                  	
                    Indemnification
                      ............................................................................

                  	
                    14

                  
	
                     
                      9.06.

                  	
                    Entire
                      Agreement ..........................................................................

                  	
                    14

                  
	
                     
                      9.07.

                  	
                    Governing
                      Law .............................................................................

                  	
                    14

                  
	
                     
                      9.08.

                  	
                    Further
                      Assurances .......................................................................

                  	
                    14

                  
	
                     
                      9.09.

                  	
                    Counterparts
                      ................................................................................

                  	
                    14

                  

          

        

         

         

        
          SCHEDULES

          

          Schedule
            6.02(b) - Wire Transfer Instructions

        

         

         

      

    

    
      
        
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      UNIT
        PURCHASE AGREEMENT

      

      

      THIS
        UNIT
        PURCHASE AGREEMENT ("Agreement") is entered into on November 8, 2006, by
        and
        among OUTBACK STEAKHOUSE INTERNATIONAL, L.P., a Georgia limited partnership
        ("Buyer"); and the following individuals, all of whom reside in Seoul, Korea:
        EUN TAE CHUNG, CHAI WOO YI and YOON HEE EOH (individually, a “Seller” and
        collectively, “Sellers”). 

      

      WHEREAS,
        Sellers together own 69,400 units of the capital, 5,000 won per unit (the
        “Units”), of Aussie Chung Ltd., a Korean limited liability company (“Company”),
        constituting approximately 18% of the issued and outstanding units of Company’s
        capital, as indicated for each Seller on the signature page hereto.

      

      WHEREAS,
        Sellers desire to sell the Units to Buyer, and Buyer desires to purchase
        the
        Units from Sellers, on the terms and conditions set forth in this Agreement;
        and

      

      NOW,
        THEREFORE, the parties mutually agree as follows:

      

      ARTICLE
        I

      PURCHASE
        AND SALE OF UNITS 

      

      Section
        1.01.
        Agreement
        to Buy and Sell.
        Subject
        to the terms and conditions expressed in this Agreement and in reliance on
        the
        representations, warranties, covenants and agreements contained in this
        Agreement, at the Closing and on the Closing Date (as such terms are defined
        in
        Section 6.01). Sellers agree to sell, transfer and assign the Units to Buyer,
        and Buyer agrees to purchase the Units from Sellers.

      

      Section
        1.02.
        Purchase
        Price.
        The
        purchase price for the Units (“Purchase Price”) is U.S. $34,872,198. Buyer shall
        pay the Purchase Price as follows: (i) U.S. $17,831,358 to Sellers at the
        Closing by wire transfer to an account or accounts designated by Sellers,
        in
        writing; (ii) U.S. $14,040,839 at the Closing by wire transfer to an account
        or
        accounts designated by the Company, in writing, for repayment of loans (“Loans”)
        from the Company to the Sellers recorded on the books of the Company on Sellers’
behalf and with Sellers’ consent and (iii) U.S. $3,000,000 (the “Escrow Amount”)
        shall be paid by wire transfer to an interest-bearing escrow account at an
        institution mutually acceptable to Sellers and Buyer pursuant to the terms
        of an
        escrow agreement (“Escrow Agreement”) that will provide for the payment of any
        remaining Escrow Amount (plus interest accrued thereon) to the Sellers, on
        May
        1, 2008 (the period from the Closing Date to April 30, 2008 is hereinafter
        referred to as the “Escrow Period”), after payment or deductions for any and all
        Losses (defined in Section 9.05), for which the Sellers are responsible pursuant
        to Section 9.05, and Special Expenses. As used herein, the term “Special
        Expenses” means any and all costs, liabilities or expenses incurred after the
        date hereof by Buyer or Company or any of their affiliates as a result of
        a tax
        audit conducted by the National Tax Service of Korea in respect of the Company’s
        business operation in 2005, or in connection with, any violations of applicable
        laws occurring prior to March 14, 2006, including fines and penalties imposed
        on
        the Company or Buyer by the National Tax Service of Korea or any 

       

      
        
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      applicable
        U.S. government authorities or other obligations relating thereto, and all
        court
        costs and
        attorneys’ and accountants’ fees and other expenses relating thereto, incurred
        by the Company or Buyer in connection with the investigation and resolution
        of
        such matters. The allocation among the Sellers of responsibility for Special
        Expenses and Losses shall be determined in such manner as the Sellers may
        separately agree, and neither Buyer nor Company shall have any responsibility
        for such allocation. Any deductions from the Escrow Amount made under this
        Section 1.02 shall be treated by the parties as an adjustment of the Purchase
        Price.

      

      Section
        1.03. Effective
        Date.
        The
        effective date of the sale and purchase of the Units will be October 31,
        2006.
        The transfer of the Units will take place at the Closing.

      

      Section
        1.04.
        Sellers’
        Representative.
        Each
        Seller hereby irrevocably constitutes and appoints Eun Tae Chung as such
        Seller's representative (“Sellers’ Representative”) in connection with this
        Agreement. Sellers' Representative is hereby authorized and directed to perform
        and consummate all of the transactions contemplated by this Agreement on
        behalf
        of such Seller. Such appointment shall be binding upon the heirs, executors,
        administrators, estates, personal representatives, successors and assigns
        of
        each Seller. All actions of Sellers’ Representative, including the giving and
        receiving of notices, the making of determinations or waivers with respect
        to
        the sufficiency of any matter or the fulfillment of any conditions precedent,
        and any other action taken or purported to be taken by Sellers’ Representative
        on behalf of Sellers, shall be binding on the other Sellers, and Buyer and
        Company may rely thereon.

      

      Section
        1.05.
        Transfer
        Taxes.
        All
        securities transaction tax and individual income tax on capital gains relating
        to the transactions contemplated hereby which are required to be paid by
        Sellers
        under the applicable tax laws shall be paid by the Sellers. All other taxes
        and
        fees relating to the transactions contemplated hereby imposed by any
        Governmental Entity shall be paid by the party against which they are imposed
        under applicable laws. 

      

      ARTICLE
        II

      REPRESENTATIONS
        AND WARRANTIES OF SELLERS

      

      Sellers,
        jointly and severally, represent and warrant to Buyer that on the date of
        this
        Agreement and on the Closing Date:

      

      Section
        2.01.
        Authority
        and Validity.
        Sellers
        have the authority and capacity to execute and deliver this Agreement, to
        sell
        the Units, and otherwise to perform their obligations under this Agreement
        and
        any ancillary documents that Sellers deliver at the Closing (“Sellers’ Ancillary
        Documents”). This Agreement and Sellers’ Ancillary Documents, when executed and
        delivered by Sellers, will constitute valid, legal and binding obligations
        of
        Sellers, enforceable against each Seller in accordance with their respective
        terms, except as such enforcement may be limited by general principles of
        equity
        and by laws affecting the enforcement of creditors’ rights generally. Neither
        the execution of this Agreement nor the consummation of the transactions
        contemplated by this Agreement will result in the breach of any term or
        provision of, or constitute a default under, any agreement, indenture,
        instrument, order, law or regulation to which any Seller is a party or by
        which
        he or she or any of the Units is bound. The 

       

      
        
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      consummation
        of the transactions contemplated hereunder require no action by Sellers in
        respect of or filing with any governmental or regulatory body or any other
        third
        party.

      

      Section
        2.02.
        Concerning
        the Units.
        Each
        Seller owns the number of Units indicated on the signature page hereto. Each
        of
        the Units is validly issued, fully paid and non-assessable and has not been
        issued in violation of the preemptive rights of any person. Sellers own the
        Units beneficially and of record, and possesses the authority and legal right
        to
        sell, assign, transfer and deliver the entire legal and beneficial ownership
        of
        the Units, free and clear of all claims, liens. pledges and other encumbrances
        of any kind. As of the Closing Date, no Seller has issued any options or
        warrants that cover any of the Units and no Seller is a party to any unitholder
        agreement, voting trust or other agreement that would prevent such Seller
        from
        selling the Units to Buyer as contemplated in this Agreement.

      

      Section
        2.03.
        Debts;
        Affiliates; Related Party Contracts.
        To each
        Sellers’ knowledge, Company is not indebted to any Seller or any Affiliate of
        any Seller, and no Seller or an Affiliate of any Seller is indebted to Company
        except for the Loans. To each Sellers’ knowledge, no Seller, and no Affiliate of
        any Seller, has any interest in any supplier of Company or lessor of premises
        to
        Company. As used in this Agreement, an “Affiliate” of a person means (i) any
        legal entity of which such person is a director or has the right to appoint
        a
        director or participate in management, or of which such person owns 10% or
        more
        of the equity or voting securities, and (ii) the spouse and lineal ascendants
        and descendants of such person. To each Sellers’ knowledge, there are no
        contracts or arrangements (formal or informal, written or oral) related directly
        or indirectly to the business of Company between the Company and any of the
        Sellers or any of their Affiliates.

      

      Section
        2.04 Liability
        for Company Obligations.
        To each
        Sellers’ knowledge, no Seller has accepted personal liability as co-maker,
        guarantor or surety for any financial or contractual obligation of Company,
        including loan agreements, notes, leases and other contracts.

      

      Section
        2.05.
        Financial
        Statements.
        Company
        has furnished to Buyer and Sellers a balance sheet of Company as at December
        31,
        2005 and an income statement of Company for the year then ended, and unaudited
        interim balance sheet of Company as of October 31, 2006 and the related income
        statement for the 10 months then ended (the “Financial Statements"). To each
        Sellers’ knowledge: 

      

      (a) 
        (i) the
        Financial Statements fairly present Company’s financial condition as of the
        dates thereof and the results of its operations for the period therein indicated
        in accordance with Korean generally accepted accounting principles, consistently
        applied, reconciled to U.S. generally accepted accounting principles; and
        (ii)
        except as indicated in the notes therein, the Financial Statements reflect
        no
        significant items of income or expense that were unusual or of a nonrecurring
        nature.

      

      (b) 
        (i) the
        Company’s books and records have been maintained in accordance with applicable
        legal and accounting requirements and good business practices; (ii) the
        Financial Statements reflect only valid transactions; and (iii) all contingent
        liabilities of and unasserted claims against Company are fully and accurately
        reflected in the Financial Statements.

      
 

      
        
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      (c) 
        (i)
        except for contractual liabilities and obligations incurred in the ordinary
        course of business since October 31, 2006, the Financial Statements reflect
        all
        liabilities and
        obligations of Company, accrued, contingent or otherwise, that arose out
        of
        transactions effected or events that occurred on or prior to the Closing
        Date;
        (ii) all allowances and reserves shown in the Financial Statements are
        appropriate, reasonable and sufficient to provide for anticipated expenses
        and
        losses; and (iii) Company is not liable on or with respect to, or obligated
        in
        any way to provide funds in respect of or to guarantee or assume in any manner,
        any debt or obligation of any other person. 

      

      Section
        2.06.
        No
        Material Adverse Change.
        To each
        Sellers’ knowledge, since the date of the Financial Statements and prior to
        October 31, 2006, there has not been any material adverse change in the
        financial condition, results of operations, business, prospects, assets or
        liabilities (actual or contingent) of Company, and Company has not (a) declared,
        paid or distributed any dividend or any distribution on or with respect to
        the
        units constituting the equity of Company; (b) redeemed or repurchased, or
        authorized the redemption or repurchase of, any such units; (c) incurred
        any
        long-term debt or signed any lease with a term in excess of three years;
        (d)
        implemented or promised any salary, bonus or compensation increases to any
        officers, employees or agents of Company other than as set out in the internal
        employment regulations of Company; (e) experienced or been notified of any
        pending or threatened labor disputes or other labor problems against or
        potentially affecting Company; or (f) entered into any other transactions,
        except in the ordinary course of business and consistent with past
        practice.

       

      Section
        2.07.
        Taxes.
        To each
        Seller’s knowledge, (a) Company has filed proper and accurate tax returns,
        reports and estimates for all periods with respect to which such returns,
        reports and estimates were due; (b) all taxes shown in such returns, reports
        and
        estimates to be payable have been paid or adequate provision for their payment
        has been made; (c) there is not in force any extension of the date on which
        any
        tax return was or is due, or any waiver or agreement for the extension of
        time
        for Company’s payment of any tax; and (d) the provision for taxes shown on the
        balance sheet included in the Financial Statements is adequate to cover
        Company’s liability for all taxes to the date of the Financial
        Statements.

       

      Section
        2.08.
        Inventory.
        To each
        Sellers’ knowledge, (a) no item included in the inventory, materials or supplies
        of Company, as reflected on the balance sheet included in the Financial
        Statements, is pledged as collateral or held on consignment from others;
        (b)
        obsolete or discontinued items do not constitute a material part of such
        inventory, materials and supplies; and (c) all such inventory items are standard
        quality goods, saleable in the ordinary course of business.

      

      Section
        2.09.
        Litigation.
        To each
        Sellers’ knowledge,(a) there are no pending or, threatened lawsuits,
        administrative proceedings or investigations against Company or to which
        any of
        its assets are subject; (b) Company has complied in all material respects
        with
        all laws and regulations applicable to it; and (c) Company is not subject
        to any
        order, writ, injunction or decree relating to its operations. 

      

      Section
        2.10.
        Commitments.
        To each
        Sellers’ knowledge, Company has performed in all material respects all
        obligations to be performed by it under all contracts, agreements and
        commitments to which it is a party, and there is not under any such contracts,
        agreements or

       

      
        
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      commitments
        any existing default, event of default or event which, with notice or lapse
        of
        time or both, would constitute a default.

       

      Section
        2.11. Assets 

      

      (a) To
        each
        Sellers’ knowledge, Company is the sole owner of and has good and marketable
        title to its assets, which assets constitute all of the assets, rights, and
        properties used in, or reasonably necessary for, the conduct of its business
        in
        the manner and to the extent currently conducted, and includes all items
        of
        property located at its offices, used as though owned, that any Seller purports
        to own, reflected on the Financial Statements.

      

      (b) None
        of
        the Sellers is a person authorized to draw on any account of the Company
        of any
        nature.

      

      Section
        2.12.
        Accuracy
        of Information Furnished.
        All of
        the schedules provided by Sellers pursuant to this Agreement are true, correct
        and complete in all material respects, and no representation, warranty or
        statement made any Seller in or pursuant to this Agreement contains any untrue
        statement of a material fact or omits to state any fact necessary to make
        such
        representation, warranty or statement not misleading.

      

      ARTICLE
        III

      REPRESENTATIONS
        AND WARRANTIES OF BUYER

      

      Buyer
        represents and warrants to Sellers that, on the date of this Agreement and
        on
        the Closing Date:

      

      Section
        3.01.
        Organization
        and Good Standing.
        Buyer
        is a limited partnership duly formed, validly existing and in good standing
        under the laws of the State of Georgia, U.S.A., and has the requisite power
        and
        authority to carry on its business as now being conducted.

      

      Section
        3.02.
        Authorization
        and Validity.
        This
        Agreement and any ancillary documents that Buyer delivers at the Closing,
        have
        been executed by all necessary corporate action and, when executed and delivered
        by Buyer, will be duly authorized, executed and delivered, and will constitute
        valid, legal and binding obligations of Buyer, enforceable against Buyer
        in
        accordance with their respective terms, except as such enforcement may be
        limited by general principles of equity and by laws affecting the enforcement
        of
        creditors’ rights generally.

      

      Section
        3.03.
        Investment
        Intent.
        Buyer
        is acquiring the Units for its own account for investment and not with a
        view to
        the resale, distribu-tion or other disposition of the Units.

      

      Section
        3.04.
        No
        Violation.
        Neither
        the execution of this Agreement nor the consummation of the transactions
        contemplated by this Agreement will result in the breach of any term or
        provision of, or constitute a default under, any agreement, indenture,
        instrument, order, law or regulation to which Buyer is a party or by which
        it or
        any of its properties is bound.

       

      
        
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      ARTICLE
        IV

      CONDUCT
        PRIOR TO CLOSING

      

      Section
        4.01.
        Third-Party
        Approvals.
        Prior
        to the Closing, Buyer and Sellers shall use their best efforts to obtain
        all
        approvals of public authorities and private persons (including lessors and
        other
        persons having contractual relations with Company) that are necessary for
        the
        consummation of the transactions contemplated by this Agreement, or to prevent
        any termination of any material right, privilege, license or agreement of,
        or
        any material loss or disadvantage to, Buyer or Company upon consummation
        of the
        transactions contemplated by this Agreement.

      

      Section
        4.02.
        Obstruction
        of Purpose.
        Prior
        to the Closing, none of the Sellers shall take, permit or condone any action
        or
        engage in any omission or inaction that might cause any condition to Closing
        not
        to be satisfied or fulfilled, including action or inaction that might cause
        the
        representations and warranties of Sellers not to be true, correct and accurate
        as of the Closing Date.

      

      Section
        4.03.
        Cooperation
        and Reasonable Efforts.
        Sellers
        will cooperate with Buyer and take all reasonable steps within their power
        to
        fulfill all conditions to Buyer's obligations to purchase the Units that
        are
        dependent upon the actions of Sellers.

      

      Section
        4.04.
        Competing
        Proposals.
        Prior
        to the Closing, Sellers (i) will not, directly or indirectly, whether through
        Company, its officers, directors, employees, Affiliates, representatives,
        agents
        or otherwise, encourage or solicit any inquiries or proposals by, engage
        in any
        discussions or negotiations with, or furnish any business or financial
        information to, any person concerning any merger, acquisition or purchase
        of
        Company, any of its equity or debt securities, or any material portion of
        its
        assets; and (ii) will promptly communicate to Buyer the substance of any
        inquiry
        or proposal concerning any such transaction that any Seller may
        receive.

      

      Section
        4.05.
        Supplement
        to Schedules.
        If,
        between the date of this Agreement and the Closing Date, any Seller becomes
        aware that any of their representations or warranties was inaccurate when
        made,
        or if any event occurs or condition changes that causes any of their
        representations and warranties to be inaccurate, Sellers will notify Buyer
        in
        writing and supplement the appropriate section or schedule to account for
        any
        such inaccuracy, event or change. Any such supplement to a section or a schedule
        will not be deemed to have been disclosed as of the date of this Agreement
        or to
        have cured any breach of the representations and warranties made in this
        Agreement, unless Buyer so agrees. However, any such supplement to a section
        or
        schedule will be deemed to be disclosed as of the Closing Date for purposes
        of
        the accuracy of the representations and warranties made in this Agreement
        as of
        the Closing Date.

      

      ARTICLE
        V

      CONDITIONS
        TO CLOSING 

      

      Section
        5.01.
        Conditions
        to Sellers’ Obligations.
        The
        obligations of Sellers to sell the Units and otherwise consummate the
        transactions this Agreement contemplates subject to the satisfaction at or
        prior
        to the Closing of each of the following conditions, any of which Sellers
        may
        waive: 

       

      
        
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      (a)  The
        representations and warranties of Buyer in this Agreement shall be true and
        correct at and as of the Closing Date; 

      

      (b)  Buyer
        shall have performed and complied with all the agreements and satisfied all
        the
        conditions required by this Agreement to be performed or complied with or
        satisfied by Buyer at or prior to the Closing; 

      

      (c)  Sellers
        shall have received a certificate signed by an executive officer of Buyer
        and
        dated the Closing Date certifying that the conditions contained in Subsections
        (a) and (b) above have been satisfied in full; and

      

      (d)  Sellers
        shall have received, in form and substance reasonably satisfactory to the
        Sellers, a written waiver and release signed by Company and Buyer and dated
        the
        Closing Date, in which Company and Buyer irrevocably waive, all claims of
        any
        kind that they may have against the Sellers (including, but not limited to,
        all
        claims in connection with the Loans), other than claims arising out of Sellers’
obligations under this Agreement.

      

      Section
        5.02 Conditions
        to Buyer’s Obligations.
        The
        obligations of Buyer to purchase the Units and otherwise consummates the
        transactions this Agreement contemplates are subject to the satisfaction
        at or
        prior to the Closing of each of the following conditions, any of which Buyer
        may
        waive:

      

      (a)  The
        representations and warranties of Sellers in this Agreement shall be true
        and
        correct at and as of the Closing Date;

      

      (b)  Sellers
        shall have performed and complied with all the agreements and satisfied all
        the
        conditions required by this Agreement to be performed or complied with or
        satisfied by them at or prior to the Closing; 

      

      (c)  Buyer
        shall have received a certificate, signed by each Seller and dated the Closing
        Date certifying that the conditions contained in Subsections (a) and (b)
        above
        and in Section 8.02(b) have been satisfied in full; and

      

      (d)  Buyer
        shall have received, in form and substance reasonably satisfactory to the
        Buyer,
        a written waiver and release signed by each Seller and dated the Closing
        Date,
        in which each Seller irrevocably waives, all claims of any kind that it may
        have
        against the Company or the Buyer, other than claims arising out of Buyer’s
        obligations under this Agreement.

      
 

      ARTICLE
        VI

      THE
        CLOSING

      

      Section
        6.01.
        Closing.
        The
        consummation of the transactions contemplated by this Agreement (the “Closing”)
        shall occur at 10:00 a.m. on November 10, 2006 at the offices of Shin & Kim
        in Seoul, Korea. The parties may mutually stipulate a different time, date
        or
        place for the 

       

      
        
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      Closing,
        except that in no event shall the Closing occur later than November 15, 2006.
        The date on which the Closing actually occurs is referred to as the “Closing
        Date.”

      

      Section
        6.02.
        Execution
        and Delivery of Closing Documents.
        Buyer
        and Sellers shall execute and deliver or perform the following at the
        Closing:

      

      (a) Each
        Seller shall deliver to Buyer (i) a duly executed assignment for his/her
        Units
        in form sufficient to vest title to the Units in Buyer, free and clear of
        all
        liens, claims and encumbrances, (ii) a duly executed power of attorney giving
        full power to Buyer or its designee to exercise his/her voting right at a
        general meeting of members of the Company where the transfer of the Units
        under
        this Agreement will be approved and (iii) a duly executed acknowledgment
        and
        relinquishment of rights agreement pertaining to Company’s Outback Steakhouse
        Restaurant Franchise Agreements; 

      

      (b) Buyer
        shall deliver: (i) U.S. $9,192,142, U.S. $7,883,310 and U.S. $755,906 (in
        the
        aggregate representing the Purchase Price less the Loans and the Escrow Amount)
        to each Seller, respectively, (ii) U.S. $14,040,839 (representing the repayment
        of the Loans) to Company; and (iii) the Escrow Amount to the escrow agent,
        Shinhan Bank, each by wire transfer to the respective bank accounts set forth
        in
        Schedule 6.02(b) attached hereto on the Closing Date; and

      

      (c) Each
        party shall execute and deliver the certificates called for in Article V
        of this
        Agreement.

      

      Section
        6.03. Simultaneous
        Transactions.
        All the
        transactions described in or contemplated by Section 6.02 will be deemed
        to have
        occurred simultaneously, and no transaction will be deemed to have occurred
        unless they all occur.

      

      ARTICLE
        VII

      TERMINATION
        PRIOR TO THE CLOSING

      

      Section
        7.01.
        Termination
        of Agreement.
        This
        Agreement may be terminated at any time prior to the Closing:

      

      (a) by
        mutual
        written agreement of the parties; or

      

      (b) by
        Buyer
        in its sole discretion, based on the results of its due diligence review;
        or

      

      (c) by
        any
        party if the Closing does not occur on or before November 15, 2006 as long
        as
        such party is not responsible for the delay or such failure to close;
        or

      

      (d) by
        Buyer,
        upon a material breach of any representation, warranty, covenant or agreement
        on
        the part of Sellers set forth in this Agreement, or if any representation
        or
        warranty of Sellers is or becomes untrue to a material degree, unless Sellers
        cure the breach or deficiency within 10 days after Buyer gives Sellers written
        notice of the breach or deficiency; or

       

      
        
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      (e) by
        a
        Seller, upon a material breach of any representation, warranty, covenant
        or
        agreement on the part of Buyer set forth in this Agreement, or if any
        representation or warranty of Buyer is or becomes untrue to a material degree,
        unless Buyer cures the breach or deficiency within 10 days after a Seller
        gives
        Buyer written notice of the breach or deficiency.

      

      Section
        7.02.
        Effect
        of Termination .
        If this
        Agreement is terminated pursuant to Section 7.01, all obligations of Buyer
        and
        Sellers shall terminate, except the obligations of the parties pursuant to
        Section 7.04. 

      

      Section
        7.03.
        Expenses.
        Regardless of whether the Closing occurs and except as provided in Section
        7.02,
        each party shall pay all costs and expenses that it or he/she incurs in
        connection with this Agreement. Sellers agree that neither Company nor Buyer
        shall bear any of the legal fees or other expenses that Sellers incur in
        connection with this Agreement. 

      

      Section
        7.04.
        Procedure
        Upon Termination.
        In the
        event of termination pursuant to Section 7.01, written notice shall be
        immediately given to the other parties and the transactions contemplated
        by this
        Agreement will be terminated without any further action by Buyer or
        Sellers.

      

      ARTICLE
        VIII

      POST-CLOSING
        MATTERS

      

      Section
        8.01. Non-Competition
        and Non-Solicitation.
        

      

      (a)  Each
        Seller agrees that, for two years after the Closing Date (the "Non-Competition
        Period"), except for services performed for Company, neither he/she nor any
        of
        his/her Affiliates will, directly or indirectly, either as an individual,
        partner, joint venturer or in any other capacity, purchase, invest in (other
        than in up to 5% of the securities of publicly-owned companies), manage,
        accept
        employment by, provide consulting services to, serve on the Board of Directors
        of, or otherwise become associated with any business that operates restaurants
        in Korea, if such restaurants, on average, derive 25% or more of their entrée
        sales from the sale of American-style steak. Buyer acknowledges that Seller
        intends to open a “Bulgogi Brothers” Korean-style barbeque restaurant, and Buyer
        agrees that the opening and operation of such restaurant shall not be considered
        a breach of this Section 8.01 so long as such restaurant does not otherwise
        on
        average, derive 25% or more of their entrée sales from the sale of
        American-style steak.

      

      (b)  During
        the Non-Competition Period, no Seller will directly or indirectly, (i) solicit,
        induce, or attempt to persuade any employee of Company or Buyer or their
        Affiliates, or any person who was an employee of Company or Buyer or their
        Affiliates within the four-month period immediately preceding such solicitation,
        to accept employment in any position by a Seller or an Affiliate of a Seller
        or
        anyone else; provided, however, that advertisements or job postings published
        or
        broadcasted on television, radio, newspapers or website of a Seller or any
        of
        its Affiliates and other general solicitations which are not specifically
        targeted to the employees of Company or Buyer or their Affiliates shall not
        be
        deemed a violation of this Section 8.01(b).

       

      
        
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      Section
        8.02. Confidentiality;
        Return of Materials.
        

       

       (a)  Each
        Seller acknowledges that all written and oral information he/she has received
        with respect to Company’s operations, suppliers, standards, finances, marketing
        strategies and personnel is confidential information that is proprietary
        either
        to Company or to Buyer. Each Seller further agrees that, he/she will not
        use any
        part of such confidential information for his/her own benefit, or disclose
        or
        divulge any part of such confidential information to any other person, for
        or
        without compensation, for so long as such confidential information remains
        proprietary and does not become publicly known other than through breach
        of a
        confidentiality obligation of any person. 

      

      (b)  On
        or
        before the Closing Date, and as a further condition to Closing, each Seller
        shall return to Company or to Buyer all data, notes, reports, proposals,
        lists,
        correspondence, specifications, drawings, blueprints, sketches, materials,
        equipment, or other documents or property, or reproductions of any such items,
        and any other materials in his/her possession that contain or refer to such
        confidential information, and shall confirm that he/she no longer has any
        such
        items in his/her possession and shall deliver to Buyer a certificate, signed
        by
        each Seller and dated the Closing Date, certifying that condition contained
        in
        this Subsection (b) has been satisfied in full.

      

      Section
        8.03. Consideration.
        The
        parties acknowledge that the provisions of Sections 8.01 and 8.02 are supported
        by valuable consideration, and that Buyer’s agreement to purchase the Units for
        the Purchase Price is conditioned upon its receipt of the protection provided
        in
        this Article VIII. The parties further acknowledge that the scope and duration
        of the covenants set forth in this Article VIII are in all respects reasonable.
        The parties agree that, if Sellers’ non-competition agreement is determined by a
        court to be unenforceable as written, such agreement shall be reformed by
        the
        court to the minimum extent necessary to render it enforceable and, as so
        reformed, shall be enforced by the court.

      

      Section
        8.04. Equitable
        Relief.
        Each
        Seller acknowledges and agrees that his breach of the agreements in this
        Article
        VIII could not be adequately compensated with monetary damages, but would
        irreparably injure Buyer and Company. Accordingly, Sellers agree that injunctive
        relief and specific performance will be appropriate remedies to enforce the
        provisions of this Article VIII, and each Seller waives any claim or defense
        that an adequate remedy at law for such breach exists. Nothing in this Article
        VIII shall limit the remedies, legal or equitable, otherwise available to
        Buyer.

      

      Section
        8.05. Prior
        Obligations.
        Subject
        to and conditioned upon the occurrence of the Closing, the foregoing provisions
        of this Article VIII shall replace and supersede the provisions relating
        to
        non-competition, non-solicitation and confidentiality to which any Seller
        is
        subject in connection with (i) franchise agreements, and other agreements
        related to such franchise agreements, executed by such Seller in his/her
        capacity as Franchisee’s Principal or a Covenantor (as such terms are defined in
        such agreements) or in any other capacity, and (ii) any other agreements
        with
        Buyer, Company or any of their Affiliates. If for any reason the Closing
        does
        not occur, all such obligations shall remain in effect as if this Agreement
        had
        never been entered into.

       

      
        
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      ARTICLE
        IX

      MISCELLANEOUS

      

      Section
        9.01.
        Dispute
        Resolution.

       

      
                  
          (a) Except
          as
          otherwise expressly provided in this article ix, any claim, controversy
          or
          dispute (a “dispute”) that arises out of or in relation to this agreement or any
          related instrument or agreement that the parties cannot settle by agreement
          shall be resolved by binding arbitration in accordance with this
          section 9.01. 

        

        (b) Either
          buyer or sellers (collectively, but not individually) may initiate arbitration
          by serving upon the other a notice (i) stating that the notifying party
          desires
          to have a particular dispute reviewed by a board of three arbitrators,
          and (ii)
          naming one person whom such party chooses to act as one of the three
          arbitrators. Within 15 days after receipt of such a notice, the other party
          shall designate one person to act as arbitrator and shall notify the party
          requesting arbitration of such designation and the name of the person so
          designated. if the party upon whom a request for arbitration is served
          fails to
          designate its arbitrator within 15 days after receipt of such a notice,
          the
          arbitrator designated by the party requesting arbitration shall act as
          the sole
          arbitrator to resolve the dispute.

        

        (c) If
          both
          parties designate an arbitrator, the two arbitrators shall promptly select
          a
          third arbitrator who has served on no less than three occasions as an arbitrator
          or mediator in disputes involving commercial businesses that operate full
          service restaurants outside the united states. if the two arbitrators chosen
          by
          the parties are not able to agree on a third qualified arbitrator within
          30 days
          after the second arbitrator is designated, unless such time is extended
          by the
          parties, either arbitrator, on five days notice to the other, shall apply
          to the
          international chamber of commerce to designate and appoint the third
          arbitrator.

        

        (d) No
          arbitrator chosen pursuant to this section 9.01 shall be related to or
          affiliated with buyer, any seller, company or any of their respective
          affiliates.

        

        (e) The
          arbitration proceedings shall be conducted in (i) accordance with and shall
          be
          subject to the rules of conciliation and arbitration of the international
          chamber of commerce in effect from time to time; and (ii) the English language.
          The arbitration proceedings shall be conducted at the facilities of and
          administered by the international chamber of commerce in Hong Kong, provided
          that buyer may, in its discretion, elect to have the arbitration proceedings
          conducted in the city in which company’s corporate headquarters are located.

        

        (f) The
          decision in writing of the arbitrator(s) shall be (i) in the English language,
          and (ii) final and binding. Each party shall bear its own costs and expenses
          of
          arbitration. Each party shall bear the costs and expenses of the arbitrator
          it
          has chosen and the costs and expenses of any third arbitrators shall be
          shared
          50% by buyer and 50% by sellers. Either party may apply to any court having
          jurisdiction for an order confirming, or to enforce, the award. Buyer and
          sellers both waive any right to judicial action on any matter subject to
          arbitration hereunder, except suit to enforce the arbitration
          award.

         

        
          
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        (g) The
          arbitrator(s) shall not extend, modify or suspend any of the terms of this
          agreement. a notice of, or request for, arbitration will not operate to
          stay,
          postpone or rescind the effectiveness of any demand for
          performance.

        

        (h) Notwithstanding
          the foregoing, actions initiated or maintained by buyer or sellers for
          injunctive or other equitable relief are not limited to arbitration and
          may be
          brought in any court having jurisdiction.

         

      

      Section
        9.02.
        Notices.
        Any
        notice, request, instruction or other document to be given under this Agreement
        shall be in writing and shall be delivered by international courier or by
        telecopier or e-mail.

      

      Notices
        to Buyer shall be addressed or directed to:

      

      
        	 	 	
                Outback
                  Steakhouse International, L.P.

              

      

      3390
        Peachtree Road, Suite 200

      Atlanta,
        Georgia 30326

      USA

      
        	 	 	
                Attn:
                  Greg L. Walther

              

      

      
        	 	 	
                Facsimile
                  No.: +1 (404) 231-2167

              

      

      
        	 	 	
                e-mail:
                  gregw@outbackintl.com

              

      

       

                 
        Notices to Sellers shall be directed to the addresses indicated on the signature
        page:

      

      Section
        9.03.
        Assignment;
        Extensions and Waivers.
        

      

      Either
        Buyer or Sellers may, by written instrument, extend the time for the performance
        of any of the obligations or other acts of the other party, and (i) waive
        any
        inaccuracies in the other party’s representations and warranties in this
        Agreement or in any document delivered pursuant to this Agreement, and (ii)
        waive such other party's performance of any of the obligations set out in
        this
        Agreement.

      

      Section
        9.04. Survival
        of Representations and Warranties.
        The
        representations and warranties of Sellers and Company set forth in Article
        II
        shall survive for the Escrow Period, regardless of any investigation that
        Buyer
        may have made prior to the Closing. Similarly, the representations and
        warranties of Buyer set forth in Article III shall survive the Closing,
        regardless of any investigation that Sellers may have made prior to the
        Closing.

      

      Section
        9.05.
        Indemnification.
        

      

      a.
         Sellers
        agree that, notwithstanding any investigation of the assets, properties,
        books,
        records and business of Company made by or on behalf of Buyer prior to the
        Closing, Sellers will promptly indemnify Buyer and Company and will jointly
        and
        severally hold Buyer and Company harmless from and against all damages, losses
        and expenses (including court costs and attorneys' fees) (collectively,
“Losses”) caused by or arising out of any misrepresentation or breach of
        warranty made by Sellers concerning a matter stated in this Agreement, the
        Financial Statements or a schedule; provided that the aggregate amounts of
        Sellers’ indemnification

       

      
        
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      obligations
        related to any Losses sustained by Company or Buyer and Sellers’ liability for
        Special Expenses set forth in Section 1.02 shall be limited to and paid through
        the Escrow Amount.

      

             b.
         Buyer
        agrees to indemnify and hold harmless each Seller from and against all Losses
        caused by or arising out of any misrepresentation or breach of warranty made
        by
        Buyer concerning any matter stated in this Agreement or a schedule; provided
        that Buyer’s indemnification obligations related to any Losses sustained by
        Sellers shall be limited to an amount equal to the Escrow Amount.

      

      Section
        9.06.
        Entire
        Agreement.
        This
        Agreement and the documents referred to herein set forth all the promises,
        agreements, conditions and understandings between and among the parties with
        respect to the subject matter of this Agreement, and supersede all prior
        and
        contemporaneous promises, agreements, conditions and understandings, whether
        oral or written, with respect to such subject matter.

      

      Section
        9.07.
        Governing
        Law.
        This
        Agreement shall be governed by and interpreted in accordance with the laws
        of
        the United States and the State of Georgia (without giving effect to their
        choice of law provisions), except insofar as the laws of Korea apply mandatorily
        to matters arising under this Agreement.

      

      Section
        9.08.
        Further
        Assurances .
        Each
        party agrees to execute and deliver all further instruments and documents
        and to
        perform all other acts, whether before or after Closing, that may be reasonably
        necessary or expedient to further the purposes of this Agreement and, after
        the
        Closing, to further evidence Buyer’s ownership of and title to the
        Units.

      

      Section
        9.09.
        Counterparts.
        This
        Agreement may be executed in one or more counterparts, all of which together
        shall constitute one and the same instrument.

      

      [**signature
        page follows**]

      
 

      
        
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      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
        date
        first above written.

      

      BUYER:

      

      OUTBACK
        STEAKHOUSE INTERNATIONAL, L.P.,

      a
        Georgia
        limited partnership

      

      
        	 	
                By:

              	
                OSI
                  INTERNATIONAL, INC., its general
                  partner

              

      

       

      By:     /s/
        Greg Walther______________________

              
Name:
        Greg Walther___________________

              
Title: _Chief
        Administrative Officer__________

      

      SELLERS:

                                    

      
                                                                                         /s/
          Eun Tae Chung________________________________

      

                        
        Eun
        Tae
        Chung, individually 
35,776
        Units

       

                                                                 
        Address for
        notices:                  101-204
        Castle Spa Apt.

      1647-1
        Seocho-dong, 

      Seocho-gu

      Seoul,
        Korea

      Email:
        ____________

      Facsimile:
        _________
 

                                                                 
/s/ Chai Woo Yi___________________________________

      Chai
        Woo
        Yi, individually  30,682
        Units

      

      Address
        for
        notices:                  137-841
        

      A-701-888-40

      Lotte
        Castle Park

      Bangbae
        1
        Dong

      Seocho-gu

      Seoul,
        Korea

      Email:
        _____________

      Facsimile:
        __________

      

                                                                 
/s/ Yoon Hee Eoh_____________________________________

      Yoon
        Hee
        Eoh, individually  2,942
        Units

      

      Address
        for
        notices:                  011-204
        Castle Spa Apt.

      1647-1
        Seocho-dong

      Seocho-gu

      Seoul,
        Korea

      Email:
        ____________

      Facsimile:
        _________

      
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                 14Unassociated Document

    NOMURA
      ASSET ACCEPTANCE CORPORATION,

     

    Depositor

     

     

    NOMURA
      CREDIT & CAPITAL, INC.,

     

    Sponsor

     

     

    GMAC
      MORTGAGE CORPORATION,

     

    a
      Servicer

     

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

     

    Master
      Servicer and Securities Administrator

     

    and

     

     

    HSBC
      BANK
      USA, NATIONAL ASSOCIATION

     

    Trustee

     

    
      	 	 	 

    

     

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of September 1, 2006

     

    
      	 	 	 

    

    

     

    NOMURA
      ASSET ACCEPTANCE CORPORATION

     

    MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2006-AR3

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF CONTENTS

     

    
      	
              ARTICLE
                I

            
	
              DEFINITIONS

            
	
              Section
                1.01

            	
              Defined
                Terms.

            
	
              Section
                1.02

            	
              Allocation
                of Certain Interest Shortfalls.

            
	 	 
	
              ARTICLE
                II

            
	
              CONVEYANCE
                OF TRUST FUND REPRESENTATIONS AND WARRANTIES

            
	
              Section
                2.01

            	
              Conveyance
                of Trust Fund.

            
	
              Section
                2.02

            	
              Acceptance
                of the Mortgage Loans.

            
	
              Section
                2.03

            	
              Representations,
                Warranties and Covenants of GMACM and the Sponsor.

            
	
              Section
                2.04

            	
              Representations
                and Warranties of the Depositor.

            
	
              Section
                2.05

            	
              Delivery
                of Opinion of Counsel in Connection with Substitutions and
                Repurchases.

            
	
              Section
                2.06

            	
              Issuance
                of the REMIC I Regular Interests.

            
	
              Section
                2.07

            	
              Conveyance
                of the REMIC I Regular Interests, REMIC II Regular Interests and
                REMIC III
                Regular Interest.

            
	
              Section
                2.08

            	
              Issuance
                of the Class R Certificates and Class R-X Certificates.

            
	
              Section
                2.09

            	
              Establishment
                of Trust.

            
	
              Section
                2.10

            	
              Purpose
                and Powers of the Trust.

            
	 	 
	
              ARTICLE
                III

            
	
              ADMINISTRATION
                AND SERVICING OF THE MORTGAGE LOANS; ACCOUNTS

            
	
              Section
                3.01

            	
              GMACM
                to act as Servicer of the related Mortgage Loans.

            
	
              Section
                3.02

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            
	
              Section
                3.03

            	
              Subservicers.

            
	
              Section
                3.04

            	
              Documents,
                Records and Funds in Possession of a Servicer To Be Held for
                Trustee.

            
	
              Section
                3.05

            	
              Maintenance
                of Hazard Insurance.

            
	
              Section
                3.06

            	
              Presentment
                of Claims and Collection of Proceeds.

            
	
              Section
                3.07

            	
              Maintenance
                of Insurance Policies.

            
	
              Section
                3.08

            	
              Reserved.

            
	
              Section
                3.09

            	
              Realization
                Upon Defaulted Mortgage Loans; Determination of Excess Liquidation
                Proceeds and Realized Losses; Repurchases of Certain Mortgage
                Loans.

            
	
              Section
                3.10

            	
              Servicing
                Compensation.

            
	
              Section
                3.11

            	
              REO
                Property.

            
	
              Section
                3.12

            	
              Liquidation
                Reports.

            
	
              Section
                3.13

            	
              Annual
                Statement as to Compliance.

            
	
              Section
                3.14

            	
              Assessments
                of Compliance and Attestation Reports.

            
	
              Section
                3.15

            	
              Books
                and Records.

            
	
              Section
                3.16

            	
              The
                Trustee.

            
	
              Section
                3.17

            	
              REMIC-Related
                Covenants.

            
	
              Section
                3.18

            	
              Annual
                Sarbanes-Oxley Certification; Additional Information.

            
	
              Section
                3.19

            	
              Release
                of Mortgage Files.

            
	
              Section
                3.20

            	
              Documents,
                Records and Funds in Possession of the Servicers to be held for
                Trustee.

            
	
              Section
                3.21

            	
              Possession
                of Certain Insurance Policies and Documents.

            
	
              Section
                3.22

            	
              [Reserved].

            
	
              Section
                3.23

            	
              [Reserved].

            
	
              Section
                3.24

            	
              Optional
                Purchase of Certain Mortgage Loans.

            
	
              Section
                3.25

            	
              Obligations
                of the Servicers Under Credit Risk Management
                Agreements.

            
	
              Section
                3.26

            	
              Collection
                of Mortgage Loan Payments; Custodial Accounts.

            
	
              Section
                3.27

            	
              Permitted
                Withdrawals From the Custodial Accounts.

            
	
              Section
                3.28

            	
              Reports
                to Master Servicer.

            
	
              Section
                3.29

            	
              Collection
                of Taxes; Assessments and Similar Items; Escrow
                Accounts.

            
	
              Section
                3.30

            	
              Adjustments
                to Mortgage Rate and Scheduled Payment.

            
	
              Section
                3.31

            	
              Distribution
                Account.

            
	
              Section
                3.32

            	
              Permitted
                Withdrawals and Transfers from the Distribution
                Account.

            
	
              Section
                3.33

            	
              Duties
                of the Credit Risk Manager; Termination.

            
	
              Section
                3.34

            	
              Limitation
                Upon Liability of the Credit Risk Manager.

            
	 	 
	
              ARTICLE
                IV

            
	
              ADMINISTRATION
                AND MASTER SERVICING OF THE MORTGAGE LOANS

            
	
              Section
                4.01

            	
              The
                Master Servicer.

            
	
              Section
                4.02

            	
              Monitoring
                of Servicers.

            
	
              Section
                4.03

            	
              Fidelity
                Bond.

            
	
              Section
                4.04

            	
              Power
                to Act; Procedures.

            
	
              Section
                4.05

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            
	
              Section
                4.06

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

            
	
              Section
                4.07

            	
              Standard
                Hazard Insurance and Flood Insurance Policies.

            
	
              Section
                4.08

            	
              Presentment
                of Claims and Collection of Proceeds.

            
	
              Section
                4.09

            	
              Maintenance
                of the Primary Mortgage Insurance Policies.

            
	
              Section
                4.10

            	
              Trustee
                to Retain Possession of Certain Insurance Policies and
                Documents.

            
	
              Section
                4.11

            	
              Realization
                Upon Defaulted Loans.

            
	
              Section
                4.12

            	
              Compensation
                for the Master Servicer.

            
	
              Section
                4.13

            	
              REO
                Property.

            
	
              Section
                4.14

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

            
	 	 
	
              ARTICLE
                V

            
	
              ADVANCES
                AND DISTRIBUTIONS

            
	
              Section
                5.01

            	
              Advances;
                Advance Facility.

            
	
              Section
                5.02

            	
              Compensating
                Interest Payments.

            
	
              Section
                5.03

            	
              REMIC
                Distributions.

            
	
              Section
                5.04

            	
              Reserved.

            
	
              Section
                5.05

            	
              Reserved.

            
	
              Section
                5.06

            	
              Distributions
                on the Certificates.

            
	
              Section
                5.07

            	
              Reserved.

            
	
              Section
                5.08

            	
              Reserved.

            
	
              Section
                5.09

            	
              Allocation
                of Realized Losses on the Mortgage Loans.

            
	
              Section
                5.10

            	
              Monthly
                Statements to Certificateholders.

            
	
              Section
                5.11

            	
              REMIC
                Designations and REMIC Allocations.

            
	
              Section
                5.12

            	
              Prepayment
                Charges.

            
	
              Section
                5.13

            	
              Class
                P Certificate Account.

            
	
              Section
                5.14

            	
              Reserved.

            
	
              Section
                5.15

            	
              Basis
                Risk Shortfall Reserve Fund.

            
	
              Section
                5.16

            	
              Supplemental
                Interest Trust.

            
	
              Section
                5.17

            	
              Tax
                Treatment of Swap Payments and Swap Termination
                Payments.

            
	
              Section
                5.18

            	
              Reports
                Filed with Securities and Exchange Commission.

            
	 	 
	
              ARTICLE
                VI

            
	
              THE
                CERTIFICATES

            
	
              Section
                6.01

            	
              The
                Certificates.

            
	
              Section
                6.02

            	
              Certificate
                Register; Registration of Transfer and Exchange of
                Certificates.

            
	
              Section
                6.03

            	
              Mutilated,
                Destroyed, Lost or Stolen Certificates.

            
	
              Section
                6.04

            	
              Persons
                Deemed Owners.

            
	
              Section
                6.05

            	
              Access
                to List of Certificateholders’ Names and Addresses.

            
	
              Section
                6.06

            	
              Book-Entry
                Certificates.

            
	
              Section
                6.07

            	
              Notices
                to Depository.

            
	
              Section
                6.08

            	
              Definitive
                Certificates.

            
	
              Section
                6.09

            	
              Maintenance
                of Office or Agency.

            
	 	 
	
              ARTICLE
                VII

            
	
              THE
                DEPOSITOR, THE RELATED SERVICER AND THE
                MASTER SERVICER

            
	
              Section
                7.01

            	
              Liabilities
                of the Depositor, the related Servicer and the Master
                Servicer.

            
	
              Section
                7.02

            	
              Merger
                or Consolidation of the Depositor, the related Servicer or the Master
                Servicer.

            
	
              Section
                7.03

            	
              Indemnification
                of the Depositor and Servicing Function Participants.

            
	
              Section
                7.04

            	
              Limitations
                on Liability of the Depositor, Securities Administrator, Master Servicer,
                related Servicer and Others.

            
	
              Section
                7.05

            	
              The
                related Servicer Not to Resign.

            
	
              Section
                7.06

            	
              Termination
                of the related Servicer Without Cause; Appointment of Special
                Servicer.

            
	
              Section
                7.07

            	
              Limitation
                on Resignation of the Master Servicer.

            
	
              Section
                7.08

            	
              Assignment
                of Master Servicing.

            
	
              Section
                7.09

            	
              Rights
                of the Depositor in Respect of the related Servicer and the Master
                Servicer.

            
	 	 
	
              ARTICLE
                VIII

            
	
              DEFAULT;
                TERMINATION OF A SERVICER AND
                MASTER SERVICER

            
	
              Section
                8.01

            	
              Events
                of Default.

            
	
              Section
                8.02

            	
              Master
                Servicer to Act; Appointment of Successor.

            
	
              Section
                8.03

            	
              Notification
                to Certificateholders.

            
	
              Section
                8.04

            	
              Waiver
                of Servicer Defaults and Master Servicer Defaults.

            
	 	 
	
              ARTICLE
                IX

            
	
              CONCERNING
                THE TRUSTEE AND SECURITIES ADMINISTRATOR

            
	
              Section
                9.01

            	
              Duties
                of Trustee and Securities Administrator.

            
	
              Section
                9.02

            	
              Certain
                Matters Affecting the Trustee and Securities
                Administrator.

            
	
              Section
                9.03

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

            
	
              Section
                9.04

            	
              Trustee
                and Securities Administrator May Own Certificates.

            
	
              Section
                9.05

            	
              Fees
                and Expenses of Trustee and Securities Administrator.

            
	
              Section
                9.06

            	
              Eligibility
                Requirements for Trustee and Securities Administrator.

            
	
              Section
                9.07

            	
              Resignation
                and Removal of Trustee and Securities Administrator.

            
	
              Section
                9.08

            	
              Successor
                Trustee or Securities Administrator.

            
	
              Section
                9.09

            	
              Merger
                or Consolidation of Trustee or Securities
                Administrator.

            
	
              Section
                9.10

            	
              Appointment
                of Co-Trustee or Separate Trustee.

            
	
              Section
                9.11

            	
              Appointment
                of Office or Agency.

            
	
              Section
                9.12

            	
              Representations
                and Warranties.

            
	
              Section
                9.13

            	
              Tax
                Matters.

            
	 	 
	
              ARTICLE
                X

            
	
              TERMINATION

            
	
              Section
                10.01

            	
              Termination
                Upon Liquidation or Repurchase of all Mortgage Loans.

            
	
              Section
                10.02

            	
              Final
                Distribution on the Certificates.

            
	
              Section
                10.03

            	
              Additional
                Termination Requirements.

            
	 	 
	
              ARTICLE
                XI

            
	
              MISCELLANEOUS
                PROVISIONS

            
	
              Section
                11.01

            	
              Amendment.

            
	
              Section
                11.02

            	
              Recordation
                of Agreement; Counterparts.

            
	
              Section
                11.03

            	
              Governing
                Law.

            
	
              Section
                11.04

            	
              Intention
                of Parties.

            
	
              Section
                11.05

            	
              Notices.

            
	
              Section
                11.06

            	
              Severability
                of Provisions.

            
	
              Section
                11.07

            	
              Assignment.

            
	
              Section
                11.08

            	
              Limitation
                on Rights of Certificateholders.

            
	
              Section
                11.09

            	
              Certificates
                Nonassessable and Fully Paid.

            
	
              Section
                11.10

            	
              Intention
                of the Parties and Interpretation.

            
	
              Section
                11.11

            	
              Reserved.

            
	
              Section
                11.12

            	
              Early
                Termination of Swap Agreement.

            

    

    

    

    EXHIBITS

     

    
      	
              Exhibit
                A-1

            	
              Form
                of Class A-[1A][1B][2][3A][3B][4A][4B] Certificates

            
	
              Exhibit
                A-2 

            	
              Form
                of Class M-[1][2][3][4][5] Certificates

            
	
              Exhibit
                A-3

            	
              Form
                of Class P Certificates

            
	
              Exhibit
                A-4

            	
              Form
                of Class R Certificates and Class R-X Certificates

            
	
              Exhibit
                A-5

            	
              Form
                of Class X Certificates

            
	
              Exhibit
                B

            	
              Mortgage
                Loan Schedule

            
	
              Exhibit
                C

            	
              Form
                of Mortgage Loan Purchase Agreement

            
	
              Exhibit
                D

            	
              Form
                of Transfer Affidavit

            
	
              Exhibit
                E

            	
              Form
                of Transferor Certificate

            
	
              Exhibit
                F

            	
              Form
                of Investment Letter (Non-Rule 144A)

            
	
              Exhibit
                G

            	
              Form
                of Rule 144A Investment Letter

            
	
              Exhibit
                H

            	
              Form
                of Additional Disclosure Notification

            
	
              Exhibit
                I

            	
              DTC
                Letter of Representations

            
	
              Exhibit
                J

            	
              Schedule
                of Mortgage Loans with Lost Notes

            
	
              Exhibit
                K

            	
              Appendix
                E of the Standard & Poor's Glossary For File Format For LEVELS®
                Version 5.7 Revised

            
	
              Exhibit
                L

            	
              Relevant
                Servicing Criteria

            
	
              Exhibit
                M

            	
              Form
                of Back-Up Certification

            
	
              Exhibit
                N

            	
              Reporting
                Responsibility

            
	
              Exhibit
                O

            	
              Interest
                Rate Swap Agreement

            
	
              Exhibit
                P

            	
              Assignment,
                Assumption and Recognition Agreement

            
	
              Exhibit
                Q

            	
              Prepayment
                Charge Schedule

            
	
              Exhibit
                X-1

            	
              Form
                of Schedule of Default Loan Data

            
	
              Exhibit
                X-2

            	
              Standard
                File Layout - Delinquency Reporting

            
	
              Exhibit
                X-3

            	
              Form
                of Schedule of Realized
                Losses/Gains

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    POOLING
      AND SERVICING AGREEMENT, dated as of September 1, 2006, among NOMURA ASSET
      ACCEPTANCE CORPORATION, a Delaware corporation, as depositor (the “Depositor”),
      NOMURA CREDIT & CAPITAL, INC., a Delaware corporation, as seller (in such
      capacity, the “Sponsor”), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national
      banking association, as master servicer (the “Master Servicer”) and securities
      administrator (the “Securities Administrator”), GMAC MORTGAGE CORPORATION, a
      Pennsylvania corporation, as a servicer (a “Servicer” or “GMACM”) and HSBC BANK,
      USA, NATIONAL ASSOCIATION, a national banking association, not in its individual
      capacity, but solely as trustee (the “Trustee”).

     

    PRELIMINARY
      STATEMENT

     

    The
      Depositor is the owner of the Trust Fund that is hereby conveyed to the Trustee
      in return for the Certificates.

     

    REMIC
      I

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the Mortgage Loans and certain other
      related assets subject to this Agreement (exclusive of the Basis Risk Shortfall
      Reserve Fund and, for the avoidance of doubt, the Supplemental Interest Trust
      and the Swap Agreement) as a REMIC for federal income tax purposes, and such
      segregated pool of assets will be designated as “REMIC I”. The Class R-1
      Interest will represent the sole class of “residual interests” in REMIC I for
      purposes of the REMIC Provisions.

     

    The
      following table irrevocably sets forth the designation, the Uncertificated
      REMIC
      I Pass-Through Rate, the initial Uncertificated Principal Balance, and for
      purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the
      “latest possible maturity date” for each of the REMIC I Regular Interests. None
      of the REMIC I Regular Interests will be certificated.

    

    
      	
              Designation

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Uncertificated
                REMIC I

              Pass-Through
                Rate

            	
              Assumed
                Final

              Maturity
                Date(1)

            
	
              I

            	
              $

            	
              3,811,351.38
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-1-A

            	
              $

            	
              6,660,105.13
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-1-B

            	
              $

            	
              6,660,105.13
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-2-A

            	
              $

            	
              13,059,463.07
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-2-B

            	
              $

            	
              13,059,463.07
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-3-A

            	
              $

            	
              10,781,488.21
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-3-B

            	
              $

            	
              10,781,488.21
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-4-A

            	
              $

            	
              10,374,702.11
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-4-B

            	
              $

            	
              10,374,702.11
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-5-A

            	
              $

            	
              9,605,331.95
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-5-B

            	
              $

            	
              9,605,331.95
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-6-A

            	
              $

            	
              9,222,665.85
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-6-B

            	
              $

            	
              9,222,665.85
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-7-A

            	
              $

            	
              8,688,944.31
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-7-B

            	
              $

            	
              8,688,944.31
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-8-A

            	
              $

            	
              8,266,031.13
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-8-B

            	
              $

            	
              8,266,031.13
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-9-A

            	
              $

            	
              7,863,698.58
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-9-B

            	
              $

            	
              7,863,698.58
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-10-A

            	
              $

            	
              7,480,945.28
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-10-B

            	
              $

            	
              7,480,945.28
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-11-A

            	
              $

            	
              7,116,818.57
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-11-B

            	
              $

            	
              7,116,818.57
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-12-A

            	
              $

            	
              6,770,412.13
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-12-B

            	
              $

            	
              6,770,412.13
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-13-A

            	
              $

            	
              6,440,863.75
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-13-B

            	
              $

            	
              6,440,863.75
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-14-A

            	
              $

            	
              6,127,353.14
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-14-B

            	
              $

            	
              6,127,353.14
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-15-A

            	
              $

            	
              5,829,099.94
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-15-B

            	
              $

            	
              5,829,099.94
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-16-A

            	
              $

            	
              5,545,361.74
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-16-B

            	
              $

            	
              5,545,361.74
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-17-A

            	
              $

            	
              5,275,432.27
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-17-B

            	
              $

            	
              5,275,432.27
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-18-A

            	
              $

            	
              5,018,639.60
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-18-B

            	
              $

            	
              5,018,639.60
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-19-A

            	
              $

            	
              4,973,035.21
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-19-B

            	
              $

            	
              4,973,035.21
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-20-A

            	
              $

            	
              4,669,295.76
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-20-B

            	
              $

            	
              4,669,295.76
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-21-A

            	
              $

            	
              10,832,686.96
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-21-B

            	
              $

            	
              10,832,686.96
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-22-A

            	
              $

            	
              3,777,846.52
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-22-B

            	
              $

            	
              3,777,846.52
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-23-A

            	
              $

            	
              3,593,931.06
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-23-B

            	
              $

            	
              3,593,931.06
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-24-A

            	
              $

            	
              3,418,967.30
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-24-B

            	
              $

            	
              3,418,967.30
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-25-A

            	
              $

            	
              3,252,519.60
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-25-B

            	
              $

            	
              3,252,519.60
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-26-A

            	
              $

            	
              3,094,173.53
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-26-B

            	
              $

            	
              3,094,173.53
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-27-A

            	
              $

            	
              2,943,534.83
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-27-B

            	
              $

            	
              2,943,534.83
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-28-A

            	
              $

            	
              2,800,228.41
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-28-B

            	
              $

            	
              2,800,228.41
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-29-A

            	
              $

            	
              2,663,897.44
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-29-B

            	
              $

            	
              2,663,897.44
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-30-A

            	
              $

            	
              3,990,781.26
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-30-B

            	
              $

            	
              3,990,781.26
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-31-A

            	
              $

            	
              2,349,786.18
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-31-B

            	
              $

            	
              2,349,786.18
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-32-A

            	
              $

            	
              2,225,622.15
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-32-B

            	
              $

            	
              2,225,622.15
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-33-A

            	
              $

            	
              2,866,417.62
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-33-B

            	
              $

            	
              2,866,417.62
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-34-A

            	
              $

            	
              4,206,621.45
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-34-B

            	
              $

            	
              4,206,621.45
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-35-A

            	
              $

            	
              1,772,656.09
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-35-B

            	
              $

            	
              1,772,656.09
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-36-A

            	
              $

            	
              1,686,348.88
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-36-B

            	
              $

            	
              1,686,348.88
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-37-A

            	
              $

            	
              479,237.78
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-37-B

            	
              $

            	
              479,237.78
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-38-A

            	
              $

            	
              1,526,133.69
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-38-B

            	
              $

            	
              1,526,133.69
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-39-A

            	
              $

            	
              1,451,826.71
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-39-B

            	
              $

            	
              1,451,826.71
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-40-A

            	
              $

            	
              1,381,136.94
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-40-B

            	
              $

            	
              1,381,136.94
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-41-A

            	
              $

            	
              1,313,888.32
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-41-B

            	
              $

            	
              1,313,888.32
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-42-A

            	
              $

            	
              1,249,913.35
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-42-B

            	
              $

            	
              1,249,913.35
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-43-A

            	
              $

            	
              1,189,052.73
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-43-B

            	
              $

            	
              1,189,052.73
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-44-A

            	
              $

            	
              1,131,154.85
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-44-B

            	
              $

            	
              1,131,154.85
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-45-A

            	
              $

            	
              1,076,075.54
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-45-B

            	
              $

            	
              1,076,075.54
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-46-A

            	
              $

            	
              1,023,715.45
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-46-B

            	
              $

            	
              1,023,715.45
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-47-A

            	
              $

            	
              973,864.85
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-47-B

            	
              $

            	
              973,864.85
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-48-A

            	
              $

            	
              926,441.20
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-48-B

            	
              $

            	
              926,441.20
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-49-A

            	
              $

            	
              881,326.37
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-49-B

            	
              $

            	
              881,326.37
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-50-A

            	
              $

            	
              838,407.98
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-50-B

            	
              $

            	
              838,407.98
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-51-A

            	
              $

            	
              797,579.12
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-51-B

            	
              $

            	
              797,579.12
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-52-A

            	
              $

            	
              758,738.06
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-52-B

            	
              $

            	
              758,738.06
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-53-A

            	
              $

            	
              721,788.06
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-53-B

            	
              $

            	
              721,788.06
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-54-A

            	
              $

            	
              686,637.08
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-54-B

            	
              $

            	
              686,637.08
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-55-A

            	
              $

            	
              662,730.08
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-55-B

            	
              $

            	
              662,730.08
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-56-A

            	
              $

            	
              671,490.40
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-56-B

            	
              $

            	
              671,490.40
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-57-A

            	
              $

            	
              2,604,151.33
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-57-B

            	
              $

            	
              2,604,151.33
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-58-A

            	
              $

            	
              6,200,819.85
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-58-B

            	
              $

            	
              6,200,819.85
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-59-A

            	
              $

            	
              159,423.43
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-59-B

            	
              $

            	
              159,423.43
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-60-A

            	
              $

            	
              2,257,759.90
                

            	
              (2)

            	
              October
                25, 2036

            
	
              I-60-B

            	
              $

            	
              2,257,759.90
                

            	
              (2)

            	
              October
                25, 2036

            
	
              P

            	
              $

            	
              100.00

            	
              (3)

            	
              October
                25, 2036

            

    

    

    ___________________

    
      	
              (1)

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

            
	
              (2)

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

            
	
              (3)

            	
              The
                REMIC I Regular Interest LTI-P will not be entitled to distributions
                of
                interest.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REMIC
      II

     

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

     

    

    
      	
              Designation

            	
              Initial
                Uncertificated

              Principal
                Balance

            	
              Uncertificated

              REMIC
                II

              Pass-Through
                Rate

            	
              Assumed
                Final Distribution Date(1)

            
	
              LT-AA

            	
              $

            	
              466,704,764.35
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-A1A

            	
              $

            	
              805,000.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-A1B

            	
              $

            	
              89,450.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-A2

            	
              $

            	
              2,094,320.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-A3A

            	
              $

            	
              510,390.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-A3B

            	
              $

            	
              56,710.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-A4A

            	
              $

            	
              815,750.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-A4B

            	
              $

            	
              90,640.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-M1

            	
              $

            	
              114,290.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-M2

            	
              $

            	
              54,760.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-M3

            	
              $

            	
              42,860.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-M4

            	
              $

            	
              23,810.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-M5

            	
              $

            	
              26,200.00
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-ZZ

            	
              $

            	
              4,800,407.03
                

            	
              (2)

            	
              October
                25, 2036

            
	
              LT-IO

            	
              $

            	
              (4)

            	
              (2)

            	
              October
                25, 2036

            
	
              LTII-P

            	
              $

            	
              100.00

            	
              (3)

            	
              October
                25, 2036

            

    

    ___________________

    
      	
              (1)

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

            
	
              (2)

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

            
	
              (3)

            	
              The
                REMIC II Regular Interest LTII-P will not be entitled to distributions
                of
                interest.

            
	
              (4)

            	
              REMIC
                II Regular Interest LT-IO will not have an Uncertificated Principal
                Balance, but will accrue interest on its Uncertificated Notional
                Amount,
                as defined herein.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    REMIC
      III

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the REMIC II Regular Interests as a
      REMIC for federal income tax purposes, and such segregated pool of assets will
      be designated as “REMIC III”. The R-3 Interest will represent the sole class of
“residual interests” in REMIC III for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the Class designation, Pass-Through
      Rate
      and Initial Certificate Principal Balance for each Class of Certificates that
      represents one or more of the “regular interests” in REMIC III created
      hereunder:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Pass-Through
                Rate

            	
              Assumed
                Final Distribution Date(1)

            
	
              Class
                A-1A

            	
              $

            	
              80,500,00

            	
              Class
                A-1A Pass Through Rate

            	
              October
                25, 2036

            
	
              Class
                A-1B

            	
              $

            	
              8,945,000

            	
              Class
                A-1B Pass-Through Rate

            	
              October
                25, 2036

            
	
              Class
                A-2

            	
              $

            	
              209,432,000

            	
              Class
                A-2 Pass Through Rate

            	
              October
                25, 2036

            
	
              Class
                A-3A

            	
              $

            	
              51,039,000

            	
              Class
                A-3A Pass-Through Rate

            	
              October
                25, 2036

            
	
              Class
                A-3B

            	
              $

            	
              5,671,000

            	
              Class
                A-3B Pass-Through Rate

            	
              October
                25, 2036

            
	
              Class
                A-4A

            	
              $

            	
              81,575,000

            	
              Class
                A-4A Pass-Through Rate

            	
              October
                25, 2036

            
	
              Class
                A-4B 

            	
              $

            	
              9,064,000

            	
              Class
                A-4B Pass-Through Rate

            	
              October
                25, 2036

            
	
              Class
                M-1

            	
              $

            	
              11,429,000

            	
              Class
                M-1 Pass Through Rate

            	
              October
                25, 2036

            
	
              Class
                M-2

            	
              $

            	
              5,476,000

            	
              Class
                M-2 Pass Through Rate

            	
              October
                25, 2036

            
	
              Class
                M-3

            	
              $

            	
              4,286,000

            	
              Class
                M-3 Pass Through Rate

            	
              October
                25, 2036

            
	
              Class
                M-4

            	
              $

            	
              2,381,000

            	
              Class
                M-4 Pass Through Rate

            	
              October
                25, 2036

            
	
              Class
                M-5

            	
              $

            	
              2,620,000

            	
              Class
                M-5 Pass Through Rate

            	
              October
                25, 2036

            
	
              Class
                X Interest(2)
                

            	
              $

            	
              3,811,351.38

            	
              Class
                X Pass Through Rate

            	
              October
                25, 2036

            
	
              Class
                P Interest

            	
              $

            	
              100.00

            	
              N/A(3)

            	
              October
                25, 2036

            
	
              Class
                IO Interest

            	 	
              (4)

            	
              (5)

            	
              October
                25, 2036

            

    

    ___________________

    
      	
              (1)

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

            
	
              (2)

            	
              The
                Class X Interest
                will not accrue interest on its Certificate Principal Balance, but
                will
                accrue interest at the Class X Pass-Through Rate on the Certificate
                Notional Balance of the Class X Interest
                outstanding from time to time which shall equal the aggregate of
                the
                Uncertificated Principal Balances of the REMIC II Regular Interests
                (other
                than REMIC II Regular Interest LTII-P). 

            
	
              (3)

            	
              The
                Class P Interest
                will not be entitled to distributions of interest.

            
	
              (4)

            	
              For
                federal income tax purposes, the Class IO Interest will not have
                a
                Pass-Through Rate, but will be entitled to 100% of the amounts distributed
                on REMIC II Regular Interest LT-IO. 

            
	
              (5)

            	
              For
                federal income tax purposes, the Class IO Interest will not have
                an
                Uncertificated Principal Balance, but will have a notional amount
                equal to
                the Uncertificated Notional Amount of REMIC II Regular Interest
                IO.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REMIC
      IV

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the Class X Interest Interests as a
      REMIC for federal income tax purposes, and such segregated pool of assets will
      be designated as “REMIC IV”. The R-4 Interest will represent the sole class of
“residual interests” in REMIC IV for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the Class designation, Pass-Through
      Rate
      and Initial Certificate Principal Balance for each Class of Certificates that
      represents one or more of the “regular interests” in REMIC IV created
      hereunder:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Pass-Through
                Rate

            	
              Assumed
                Final Distribution Date(1)

            
	
              Class
                X

            	
              $
                3,811,351.38

            	
              (2)

            	
              October
                25, 2036

            

    

    ___________________

    
      	
              (1)

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

            
	
              (2)

            	
              The
                Class X Certificates will be entitled to 100% of amounts distributed
                on
                the Class X Interest. 

            

    

    

    

    REMIC
      V

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the Class P Interest Interests as a
      REMIC for federal income tax purposes, and such segregated pool of assets will
      be designated as “REMIC V”. The R-5 Interest will represent the sole class of
“residual interests” in REMIC V for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the Class designation, Pass-Through
      Rate
      and Initial Certificate Principal Balance for each Class of Certificates that
      represents one or more of the “regular interests” in REMIC V created
      hereunder:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Pass-Through
                Rate

            	
              Assumed
                Final Distribution Date(1)

            
	
              Class
                P

            	
              $100.00

            	
              (2)

            	
              October
                25, 2036

            

    

    ___________________

    
      	
              (1)

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

            
	
              (2)

            	
              The
                Class P Certificates will be entitled to 100% of amounts distributed
                on
                the Class P Interest. 

            

    

    

    

    

    REMIC
      VI

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the Class IO Interest as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC VI”. The R-6 Interest will represent the sole class of
“residual interests” in REMIC VI for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the Class designation, Pass-Through
      Rate
      and Initial Certificate Principal Balance for each Class of Certificates that
      represents one or more of the “regular interests” in REMIC VI created
      hereunder:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Notional
                Balance

            	
              Pass-Through
                Rate

            	
              Assumed
                Final Distribution Date(1)

            
	
              Swap-IO

            	
              (2)

            	
              (3)

            	
              October
                25, 2036

            

    

    ___________________

    
      	
              (1)

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

            
	
              (2)

            	
              REMIC
                VI Regular Interest Swap-IO will have not a Certificate Notional
                Balance
                but will be entitled to 100% of amounts distributed on the Class
                IO
                Interest.

            
	
              (3)

            	
              REMIC
                VI Regular Interest Swap-IO will be entitled to 100% of amounts
                distributed on the Class IO Interest.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01  Defined
      Terms.

     

    In
      addition to those terms defined in Section 1.02, whenever used in this
      Agreement, the following words and phrases, unless the context otherwise
      requires, shall have the following meanings:

     

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

     

    Accepted
      Servicing Practices:
      As
      defined in Section 3.01.

     

    Account:
      Either
      the Distribution Account or the Custodial Accounts.

     

    Accrual
      Period:
      With
      respect to the Senior Certificates and Mezzanine Certificates and any
      Distribution Date, the period commencing on the immediately preceding
      Distribution Date (or with respect to the first Accrual Period, the Closing
      Date) and ending on the day immediately preceding the related Distribution
      Date.
      With respect to the Class X Certificates, the calendar month immediately
      preceding such Distribution Date. All calculations of interest on the Senior
      Certificates and Mezzanine Certificates will be made based on a 360-day year
      and
      the actual number of days elapsed in the related Accrual Period. All
      calculations of interest on the Class X Certificates will be based on a 360-day
      year consisting of twelve 30-day months. 

     

    Additional
      Disclosure Notification:
      Has the
      meaning set forth in Section 5.18 of this Agreement.

     

    Additional
      Form 10-D Disclosure:
      Has the
      meaning set forth in Section 5.12(a) of this Agreement.

     

    Additional
      Form 10-K Disclosure:
      Has the
      meaning set forth in Section 5.12(d) of this Agreement.

     

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

     

    Advance:
      An
      advance of delinquent payments of principal or interest in respect of a Mortgage
      Loan required to be made by related Servicer or by the Master Servicer pursuant
      to Section 5.01 or pursuant to the related Servicing
      Agreement.

     

    Advance
      Facility:
      As
      defined in Section 5.01(b)(i).

     

    Advance
      Facility Notice:
      As
      defined in Section 5.01(b)(ii).

     

    Advance
      Financing Person:
      As
      defined in Section 5.01(b)(i).

     

    Advance
      Reimbursement Amount:
      As
      defined in Section 5.01(b)(ii).

     

    Aggregate
      Loan Balance:
      With
      respect to any Distribution Date, the aggregate of the Stated Principal Balances
      of the Mortgage Loans as of the last day of the related Due Period.

     

    Agreement:
      This
      Pooling and Servicing Agreement and any and all amendments or supplements hereto
      made in accordance with the terms herein.

     

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

     

    Annual
      Statement of Compliance:
      As
      defined in Section 3.13.

     

    Applied
      Loss Amount:
      With
      respect to the Senior Certificates and Mezzanine Certificates and any
      Distribution Date, the excess of the aggregate Certificate Principal Balance
      of
      the Senior Certificates and Mezzanine Certificates over the Aggregate Loan
      Balance after giving effect to all Realized Losses incurred with respect to
      the
      Mortgage Loans during the related Due Period and payments of principal to the
      Senior Certificates and Mezzanine Certificates on such Distribution
      Date.

     

    Appraised
      Value:
      With
      respect to any Mortgage Loan originated in connection with a refinancing, the
      appraised value of the Mortgaged Property based upon the appraisal made at
      the
      time of such refinancing or, with respect to any other Mortgage Loan, the lesser
      of (x) the appraised value of the Mortgaged Property based upon the appraisal
      made by a fee appraiser at the time of the origination of the Mortgage Loan,
      and
      (y) the sales price of the Mortgaged Property at the time of such
      origination.

     

    Assignment
      Agreement:
      Shall
      mean the Assignment, Assumption and Recognition Agreement, dated as of September
      29, 2006, among the Sponsor, the Depositor and Wachovia, pursuant to which
      the
      Servicing Agreement was assigned to the Depositor, a copy of which is attached
      hereto as Exhibit P.

     

    Assumed
      Final Distribution Date:
      The
      Distribution date in October 2036. 

     

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

     

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

     

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

     

    Bankruptcy
      Code:
      Title
      11 of the United States Code.

     

    Basis
      Risk Shortfall Reserve Fund:
      The
      segregated non-interest bearing trust account created and maintained by the
      Securities Administrator pursuant to Section 5.14 hereof.

     

    Basis
      Risk Shortfall:
      With
      respect to any Class of Senior Certificates or Mezzanine Certificates and any
      Distribution Date, the sum of (i) the excess, if any, of the related Current
      Interest (calculated without regard to the Net Funds Cap) over the related
      Current Interest (as it may have been limited by the applicable Net Funds Cap)
      for the applicable Distribution Date; (ii) any amount described in clause (i)
      remaining unpaid from prior Distribution Dates; and (iii) interest on the amount
      in clause (ii) for the related Accrual Period calculated on the basis of the
      least of (x) One Month LIBOR plus the applicable Certificate Margin, (y) the
      Maximum Interest Rate and (z) the Cap Rate.

     

    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 6.06). As of the Closing Date, each Class of Publicly Offered
      Certificates constitutes a Class of Book-Entry Certificates.

     

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday, or (ii) a day on which banking
      institutions in The City of New York, New York, the Commonwealth of
      Pennsylvania, the State of Maryland, the State of Minnesota, the city in which
      any Corporate Trust Office of the Securities Administrator or the Trustee is
      located or the States in which a Servicer’s servicing operations are located are
      authorized or obligated by law or executive order to be closed.

     

    Cap
      Rate:
      11.00%
      per annum.

     

    Carryforward
      Interest:
      With
      respect to any Class of Senior Certificates or Mezzanine Certificates and any
      Distribution Date, the sum of (i) the amount, if any, by which (x) the sum
      of
      (A) Current Interest for that Class of Certificates for the immediately
      preceding Distribution Date and (B) any unpaid Carryforward Interest for such
      Class from previous Distribution Dates exceeds (y) the actual amount distributed
      on such Class in respect of interest on the immediately preceding Distribution
      Date and (ii) interest on such amount for the related Accrual Period at the
      applicable Pass-Through Rate.

     

    Certificate:
      Any one
      of the certificates of any Class executed and authenticated by the Securities
      Administrator in substantially the forms attached hereto as Exhibits A-1 through
      A-5.

     

    Certificate
      Margin:
      With
      respect to each Distribution Date on or prior to the first possible Optional
      Termination Date, the Certificate Margins for the Class A-1A, Class A-1B, Class
      A-2, Class A-3A, Class A-3B, Class A-4A, Class A-4B, Class M-1, Class M-2,
      Class
      M-3, Class M-4 and Class M-5 Certificates are 0.16%, 0.24%, 0.06%, 0.17%, 0.25%,
      0.26%, 0.31%, 0.32%, 0.39%, 0.55%, 0.90% and 1.50%, respectively. With respect
      to each Distribution Date following the first possible Optional Termination
      Date, the Certificate Margins for the Class A-1A, Class A-1B, Class A-2, Class
      A-3A, Class A-3B, Class A-4A, Class A-4B, Class M-1, Class M-2, Class M-3,
      Class
      M-4 and Class M-5 Certificates are 0.32%, 0.48%, 0.12%, 0.34%, 0.50%, 0.52%,
      0.62%, 0.64%, 0.78%, 1.05%, 1.40% and 2.00%, respectively.

     

    Certificate
      Notional Balance:
      With
      respect to the Class X Certificates and any Distribution Date, the
      Uncertificated Principal Balance of the REMIC II Regular Interests (other than
      REMIC II Regular Interest LTII-P) for such Distribution Date. As of the Closing
      Date, the Certificate Notional Balance of the Class X Certificates is equal
      to
      $476,229,351.38.

     

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

     

    Certificate
      Principal Balance:
      As to
      any Senior Certificate or Mezzanine Certificate and as of any Distribution
      Date,
      the Initial Certificate Principal Balance of such Certificate plus any
      Subsequent Recoveries added to the Certificate Principal Balance pursuant to
      Section 5.07(f) less (i) the sum of (a) all amounts distributed with
      respect to such Certificate in reduction of the Certificate Principal Balance
      thereof on previous Distribution Dates pursuant to Section 5.06 and (b) any
      reductions in the Certificate Principal Balance of such Certificate deemed
      to
      have occurred in connection with the allocations of Realized Losses on the
      Mortgage Loans, if any, plus (ii) any Subsequent Recoveries added to the
      Certificate Principal Balance of any such Certificate pursuant to
      Section 5.07(d), in each case up to the amount of Applied Loss Amounts but
      only to the extent that any such Applied Loss Amount has not been paid to any
      Class of Certificates as a Deferred Amount. With respect to the Class X
      Certificates and any date of determination, the excess, if any, of (i) the
      then
      Aggregate Loan Balance over (ii) the then aggregate Certificate Principal
      Balance of the Senior Certificates and Mezzanine Certificates. 

     

    References
      herein to the Certificate Principal Balance of a Class of Certificates shall
      mean the Certificate Principal Balances of all Certificates in such Class.
      

     

    Certificate
      Register:
      The
      register maintained pursuant to Section 6.02.

     

    Certificateholder
      or Holder:
      The
      person in whose name a Certificate is registered in the Certificate Register
      (initially, Cede & Co., as nominee for the Depository, in the case of any
      Book-Entry Certificates).

     

    Certification
      Parties:
      Has the
      meaning set forth in Section 3.18 of this Agreement.

     

    Certifying
      Person:
      Has the
      meaning set forth in Section 3.18 of this Agreement.

     

    Class:
      All
      Certificates bearing the same Class designation as set forth in
      Section 6.01.

     

    Class
      A-1 Allocation Percentage:
      With
      respect to any Distribution Date, a fraction, expressed as a percentage, the
      numerator of which is the sum of the Certificate Principal Balances of the
      Class
      A-1A Certificates and Class A-1B Certificates and the denominator of which
      is
      the aggregate Certificate Principal Balance of all of the Senior Certificates,
      in each case immediately prior to such Distribution Date.

     

    Class
      A-1A Certificate:
      Any
      Certificate designated as a “Class A-1A Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class A-1A Certificates as set forth herein
      and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      A-1A Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.16% or (B) after the first
      possible Optional Termination Date, 0.32%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      A-1B Certificate:
      Any
      Certificate designated as a “Class A-1B Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class A-1B Certificates as set forth herein
      and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      A-1B Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.24% or (B) after the first
      possible Optional Termination Date, 0.48%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      A-2 Certificate:
      Any
      Certificate designated as a “Class A-2 Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class A-2 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      A-2 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.06% or (B) after the first
      possible Optional Termination Date, 0.12%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      A-3A Certificate:
      Any
      Certificate designated as a “Class A-3A Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class A-3A Certificates as set forth herein
      and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      A-3A Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.17% or (B) after the first
      possible Optional Termination Date, 0.34%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      A-3B Certificate:
      Any
      Certificate designated as a “Class A-3B Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class A-3B Certificates as set forth herein
      and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      A-3B Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.25% or (B) after the first
      possible Optional Termination Date, 0.50%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      A-4A Certificate:
      Any
      Certificate designated as a “Class A-4A Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class A-4A Certificates as set forth herein
      and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      A-4A Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.26% or (B) after the first
      possible Optional Termination Date, 0.52%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      A-4B Certificate:
      Any
      Certificate designated as a “Class A-4B Certificate” on the face thereof, in the
      form of Exhibit A-1 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class A-4B Certificates as set forth herein
      and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      A-4B Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.31% or (B) after the first
      possible Optional Termination Date, 0.62%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      IO Distribution Amount:
      As defined in Section 5.15 hereof. For
      purposes of clarity, the Class IO Distribution Amount for any Distribution
      Date
      shall equal the amount payable to the Supplemental Interest Trust on such
      Distribution Date in excess of the amount payable on the Class IO Interest
      on
      such Distribution Date, all as further provided in Section 5.15
      hereof.

     

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

     

    Class
      M-1 Certificate:
      Any
      Certificate designated as a “Class M-1 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-1 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      M-1 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.32% or (B) after the first
      possible Optional Termination Date, 0.64%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      M-1 Principal Payment Amount:
      with
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, will
      be
      the amount, if any, by which (x) the sum of (i) the Certificate Principal
      Balances of the Senior Certificates, after giving effect to payments on such
      Distribution Date and (ii) the Certificate Principal Balance of the Class M-1
      Certificates immediately prior to such Distribution Date exceeds (y) the lesser
      of (A) the product of (i) approximately 92.20% and (ii) the Aggregate Loan
      Balance for such Distribution Date and (B) the amount, if any, by which (i)
      the
      Aggregate Loan Balance for such Distribution Date exceeds (ii) 0.35% of the
      Aggregate Loan Balance as of the Cut-off Date.

     

    Class
      M-2 Certificate:
      Any
      Certificate designated as a “Class M-2 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-2 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      M-2 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.39% or (B) after the first
      possible Optional Termination Date, 0.78%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      M-2 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, will
      be
      the amount, if any, by which (x) the sum of (i) the Certificate Principal
      Balances of the Senior Certificates and Class M-1 Certificates, in each case,
      after giving effect to payments on such Distribution Date and (ii) the
      Certificate Principal Balance of the Class M-2 Certificates immediately prior
      to
      such Distribution Date exceeds (y) the lesser of (A) the product of (i)
      approximately 94.50% and (ii) the Aggregate Loan Balance for such Distribution
      Date and (B) the amount, if any, by which (i) the Aggregate Loan Balance for
      such Distribution Date exceeds (ii) 0.35% of the Aggregate Loan Balance as
      of
      the Cut-off Date.

     

    Class
      M-3 Certificate:
      Any
      Certificate designated as a “Class M-3 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-3 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      M-3 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.55% or (B) after the first
      possible Optional Termination Date, 1.05%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      M-3 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, will
      be
      the amount, if any, by which (x) the sum of (i) the Certificate Principal
      Balances of the Senior Certificates, Class M-1 Certificates and Class M-2
      Certificates, in each case, after giving effect to payments on such Distribution
      Date and (ii) the Certificate Principal Balance of the Class M-3 Certificates
      immediately prior to such Distribution Date exceeds (y) the lesser of (A) the
      product of (i) approximately 96.30% and (ii) the Aggregate Loan Balance for
      such
      Distribution Date and (B) the amount, if any, by which (i) the Aggregate Loan
      Balance for such Distribution Date exceeds (ii) 0.35% of the Aggregate Loan
      Balance as of the Cut-off Date.

     

    Class
      M-4 Certificate:
      Any
      Certificate designated as a “Class M-4 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-4 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      M-4 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.90% or (B) after the first
      possible Optional Termination Date, 1.40%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      M-4 Principal Payment Amount:
      with
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, will
      be
      the amount, if any, by which (x) the sum of (i) the Certificate Principal
      Balances of the Senior Certificates, Class M-1, Class M-2 and Class M-3
      Certificates, in each case, after giving effect to payments on such Distribution
      Date and (ii) the Certificate Principal Balance of the Class M-4 Certificates
      immediately prior to such Distribution Date exceeds (y) the lesser of (A) the
      product of (i) approximately 97.30% and (ii) the Aggregate Loan Balance for
      such
      Distribution Date and (B) the amount, if any, by which (i) the Aggregate Loan
      Balance for such Distribution Date exceeds (ii) 0.35% of the Aggregate Loan
      Balance as of the Cut-off Date.

     

    Class
      M-5 Certificate:
      Any
      Certificate designated as a “Class M-5 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-5 Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC III, (ii) the right to receive the
      related Basis Risk Shortfall and (iii) the obligation to pay any Class IO
      Distribution Amount.

     

    Class
      M-5 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the least of (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 1.50% or (B) after the first
      possible Optional Termination Date, 2.00%, (ii) the Net Funds Cap, (iii) the
      Maximum Interest Rate and (iv) the Cap Rate.

     

    Class
      M-5 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, will
      be
      the amount, if any, by which (x) the sum of (i) the Certificate Principal
      Balances of the Senior Certificates, Class M-1, Class M-2, Class M-3 and Class
      M-4 Certificates, in each case, after giving effect to payments on such
      Distribution Date and (ii) the Certificate Principal Balance of the Class M-5
      Certificates immediately prior to such Distribution Date exceeds (y) the lesser
      of (A) the product of (i) approximately 98.40% and (ii) the Aggregate Loan
      Balance for such Distribution Date and (B) the amount, if any, by which (i)
      the
      Aggregate Loan Balance for such Distribution Date exceeds (ii) 0.35% of the
      Aggregate Loan Balance as of the Cut-off Date.

     

    Class
      P Certificate:
      Any
      Certificate designated as a “Class P Certificate” on the face thereof, in the
      form of Exhibit A-3 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class P Certificates as set forth herein and
      evidencing a Regular Interest in REMIC III.

     

    Class
      P Certificate Account:
      The
      Eligible Account established and maintained by the Securities Administrator
      pursuant to Section 5.12(c).

     

    Class
      P Interest:
      An
      uncertificated interest in the Trust Fund held by the Trustee on behalf of
      the
      Holders of the Class P Certificates, evidencing a Regular Interest in REMIC
      III
      for purposes of the REMIC Provisions.

     

    Class
      R Certificate:
      Any
      Certificate designated as a “Class R” Certificate on the face thereof in the
      form of Exhibit A-4 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class R Certificates as set forth herein and
      evidencing the Class R-1 Interest, Class R-2 Interest and Class R-3
      Interest.

     

    Class
      R-1 Interest:
      The
      uncertificated residual interest in REMIC I.

     

    Class
      R-2 Interest:
      The
      uncertificated residual interest in REMIC II.

     

    Class
      R-3 Interest:
      The
      uncertificated residual interest in REMIC III.

     

    Class
      R-4 Interest:
      The
      uncertificated residual interest in REMIC IV.

     

    Class
      R-5 Interest:
      The
      uncertificated residual interest in REMIC V.

     

    Class
      R-6 Interest:
      The
      uncertificated residual interest in REMIC VI.

     

    Class
      R-X Certificate:
      Any
      Certificate designated as a “Class R-X” Certificate on the face thereof in the
      form of Exhibit A-4 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class R-X Certificates as set forth herein and
      evidencing the Class R-4 Interest, Class R-5 Interest and Class R-6
      Interest.

     

    Class
      X Certificate:
      Any
      Certificate designated as a “Class X Certificate” on the face thereof, in the
      form of Exhibit A-5 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class X Certificates as set forth herein and
      evidencing (i) a Regular Interest in REMIC IV, (ii) the obligation to pay Basis
      Risk Shortfall and (iii) the obligation to pay any Class IO Distribution
      Amount.

     

    Class
      X Distribution Amount:
      With
      respect to any Distribution Date and the Class X Certificates, the sum of (i)
      the Current Interest and Carryforward Interest and (ii) any
      Overcollateralization Release Amount for such Distribution Date remaining after
      payments pursuant to items A though N of Section 5.06(a)(iii); provided,
      however that on and after the Distribution Date on which the Certificate
      Principal Balances of the Senior Certificates and Mezzanine Certificates have
      been reduced to zero, the Class X Distribution Amount shall include the
      Overcollateralization Amount. 

     

    Class
      X Interest:
      An
      uncertificated interest in the Trust Fund held by the Trustee on behalf of
      the
      Holders of the Class X Certificates, evidencing a Regular Interest in REMIC
      III
      for purposes of the REMIC Provisions.

     

    Class
      X Pass-Through Rate:
      On any
      Distribution Date, a per annum rate equal to the percentage equivalent of a
      fraction, the numerator of which is the sum of the amounts calculated pursuant
      to clauses (A) through (N) below, and the denominator of which is the aggregate
      of the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA,
      REMIC II Regular Interest LT-A1A, REMIC II Regular Interest LT-A1B, REMIC II
      Regular Interest LT-A2, REMIC II Regular Interest LT-A3A, REMIC II Regular
      Interest LT-3B, REMIC II Regular Interest LT-A4A, REMIC II Regular Interest
      LT-A4B, REMIC II Regular Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC
      II Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC II Regular
      Interest LT-M5 and REMIC II Regular Interest LT-ZZ. For purposes of calculating
      the Pass-Through Rate for the Class  X Interest, the numerator is equal to
      the sum of the following components:

     

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

     

    (B)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A1A
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A1A;

     

    (C)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A1B
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A1B;

     

    (D)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A2;

     

    (E)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A3A
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A3A;

     

    (F)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A3B
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A3B;

     

    (G)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A4A
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A4A;

     

    (H)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-A4B
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A4B;

     

    (I)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M1;

     

    (J)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M2;

     

    (K)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M3
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M3;

     

    (L)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M4
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M4; 

     

    (M)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M5
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M5; and

     

    (N)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-ZZ
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-ZZ.

     

    The
      Class
      X Certificates shall be entitled to 100% of amounts distributed on the Class
      X
      Interest.

     

    Cleanup
      Call:
      As
      defined in Section 10.01.

     

    Closing
      Date:
      September 29, 2006.

     

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

     

    Commission:
      Shall
      mean the United States Securities and Exchange Commission.

     

    Compensating
      Interest:
      With
      respect to any Distribution Date, an amount to be deposited in the Distribution
      Account by the related Servicer or the Master Servicer to offset a Prepayment
      Interest Shortfall on a Mortgage Loan in accordance with this Agreement or
      the
      Servicing Agreement; provided, however that the amount of Compensating Interest
      required to be paid in respect of the Mortgage Loans shall not, with respect
      to
      each Servicer, exceed one-half of the Servicing Fee payable to such Servicer
      or,
      in the case of the Master Servicer, shall not exceed the Master Servicing
      Compensation payable to the Master Servicer with respect to the related
      Prepayment Period.

     

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

     

    Corporate
      Trust Office:
      The
      principal corporate trust office of the Trustee or the Securities Administrator,
      as the case maybe, at which, at any particular time its corporate business
      in
      connection with this agreement shall be administered, which office at the date
      of the execution of this instrument is located at (ii) in the case of the
      Trustee, HSBC Bank USA, National Association, 452 Fifth Avenue, New York, New
      York 10018, Attention: Nomura Asset Acceptance Corp., 2006-AR3 or at such other
      address as the Trustee may designate from time to time by notice to the
      Certificateholders, the Depositor, the Master Servicer, the Securities
      Administrator and the Servicers, and (ii) with respect to the office of the
      Securities Administrator, which for purposes of Certificate transfers and
      surrender is located at Wells Fargo Bank, N.A., Sixth Street and Marquette
      Avenue, Minneapolis, Minnesota 55479, Attention: Corporate Trust Services-Client
      Manager (NAAC 2006-AR3), and for all other purposes is located at Wells Fargo
      Bank, N.A., P.O. Box 98, Columbia, Maryland 21046, Attention: Corporate Trust
      Services-Client Manager (NAAC 2006-AR3) (or for overnight deliveries, at 9062
      Old Annapolis Road, Columbia, Maryland 21045, Attention: Corporate Trust
      Services-Client Manager (NAAC 2006-AR3)), or at such other address as the
      Securities Administrator may designate from time to time by notice to the
      Certificateholders, the Depositor, the Master Servicer, the Servicers and the
      Trustee.

     

    Corresponding
      Certificate:
      With
      respect to:

     

    
      	
              (i)

            	
              REMIC
                II Regular Interest LT-A1A, the Class A-1A
                Certificates,

            
	
              (ii)

            	
              REMIC
                II Regular Interest LT-A1B, the Class A-1B
                Certificates,

            
	
              (iii)

            	
              REMIC
                II Regular Interest LT-A2, the Class A-2 Certificates;

            
	
              (iv)

            	
              REMIC
                II Regular Interest LT-A3A, the Class A-3A
                Certificates,

            
	
              (v)

            	
              REMIC
                II Regular Interest LT-A3B, the Class A-3B
                Certificates,

            
	
              (vi)

            	
              REMIC
                II Regular Interest LT-A4A, the Class A-4A
                Certificates,

            
	
              (vii)

            	
              REMIC
                II Regular Interest LT-A4B, the Class A-4B
                Certificates,

            
	
              (viii)

            	
              REMIC
                II Regular Interest LT-M1, the Class M-1 Certificates;

            
	
              (ix)

            	
              REMIC
                II Regular Interest LT-M2, the Class M-2 Certificates;

            
	
              (x)

            	
              REMIC
                II Regular Interest LT-M3, the Class M-3 Certificates;

            
	
              (xi)

            	
              REMIC
                II Regular Interest LT-M4, the Class M-4 Certificates;

            
	
              (xii)

            	
              REMIC
                II Regular Interest LT-M5, the Class M-5 Certificates;
                and

            
	
              (xiii)

            	
              REMIC
                II Regular Interest LTII-P and the Class P Interest, the Class P
                Certificates.

            

    

     

    Credit
      Risk Management Agreement:
      The
      agreement between the Credit Risk Manager and each Servicer and/or Master
      Servicer, dated as of September 29, 2006.

     

    Credit
      Risk Management Fee:
      As to
      each Mortgage Loan and any Distribution Date, an amount equal to 1/12th of
      the
      Credit Risk Management Fee Rate multiplied by the Stated Principal Balance
      of
      such Mortgage Loan as of the last day of the related Due Period. The Credit
      Risk
      Management Fee shall be payable to the Credit Risk Manager and/or the Sponsor
      pursuant to Section 3.32(a)(vii) and 3.33(b).

     

    Credit
      Risk Management Fee Rate:
      0.005%
      per annum.

     

    Credit
      Risk Manager:
      Portfolio Surveillance Analytics, LLC, and its successors and
      assigns.

     

    Current
      Interest:
      With
      respect to any Class of Senior Certificates or Mezzanine Certificates and any
      Distribution Date, the amount of interest accruing at the applicable
      Pass-Through Rate on the related Certificate Principal Balance during the
      related Accrual Period; provided, that as to each Class of Senior Certificates
      and Mezzanine Certificates, the Current Interest will be reduced by a pro rata
      portion of any Net Interest Shortfalls to the extent not covered by excess
      interest. No Current Interest will be payable with respect to any Class of
      Senior Certificates or Mezzanine Certificates after the Distribution Date on
      which the outstanding Certificate Principal Balance of such Certificate has
      been
      reduced to zero.

     

    Custodial
      Accounts:
      The
      accounts established and maintained by the Servicers with respect to receipts
      on
      the Mortgage Loans and REO Properties in accordance with Section 3.26(b)
      and the Servicing Agreement.

     

    Custodial
      Agreement:
      The
      Custodial Agreement dated as of September 1, 2006 among the Custodian, the
      Servicers and the Trustee.

     

    Custodian:
      Wells
      Fargo Bank, N.A., a national banking association, or any successor thereto
      appointed pursuant to the Custodial Agreement.

     

    Cut-off
      Date:
      September 1, 2006.

     

    Cut-off
      Date Principal Balance:
      As to
      any Mortgage Loan, the unpaid principal balance thereof as of the close of
      business on the Cut-off Date after application of all Principal Prepayments
      received prior to the Cut-off Date and scheduled payments of principal due
      on or
      before the Cut-off Date, whether or not received, but without giving effect
      to
      any installments of principal received in respect of Due Dates after the Cut-off
      Date.

     

    Debt
      Service Reduction:
      With
      respect to any Mortgage Loan, any reduction in the amount which a Mortgagor
      is
      obligated to pay on a monthly basis with respect to such Mortgage Loan as a
      result of any proceeding initiated under the United States Bankruptcy Code,
      other than a reduction attributable to Deficient Valuation.

     

    Defaulting
      Party:
      As
      defined in the Swap Agreement.

     

    Deferred
      Amount:
      With
      respect to any Class of Senior Certificates or Mezzanine Certificates and any
      Distribution Date, the amount by which (x) the aggregate of the Applied Loss
      Amounts previously applied in reduction of the Certificate Principal Balance
      thereof exceeds (y) the aggregate of amounts previously paid in reimbursement
      thereof and the amount by which the Certificate Principal Balance of any such
      Class has been increased due to the collection of Subsequent
      Recoveries.

     

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

     

    Definitive
      Certificates:
      As
      defined in Section 6.06.

     

    Deleted
      Mortgage Loan:
      A
      Mortgage Loan replaced or to be replaced by a Replacement Mortgage
      Loan.

     

    Delinquency
      Rate:
      With
      respect to any calendar month will be, generally, the fraction, expressed as
      a
      percentage, the numerator of which is the Aggregate Loan Balance of all Mortgage
      Loans 60 or more days delinquent (including all Mortgage Loans in bankruptcy
      or
      foreclosure and all REO Properties) as of the close of business on the last
      day
      of such month, and the denominator of which is the Aggregate Loan Balance of
      the
      Mortgage Loans as of the close of business on the last day of such
      month.

     

    Delinquent:
      A
      Mortgage Loan is “delinquent” if any payment due thereon is not made pursuant to
      the terms of such Mortgage Loan by the close of business on the day such payment
      is scheduled to be due. A Mortgage Loan is “30 days delinquent” if such payment
      has not been received by the close of business on the corresponding day of
      the
      month immediately succeeding the month in which such payment was due, or, if
      there is no such corresponding day (e.g., as when a 30-day month follows a
      31-day month in which a payment was due on the 31st day of such month), then
      on
      the last day of such immediately succeeding month. Similarly for “60 days
      delinquent,” “90 days delinquent” and so on.

     

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

     

    Depositor:
      Nomura
      Asset Acceptance Corporation, a Delaware corporation, or its successor in
      interest.

     

    Depository:
      The
      initial Depository shall be The Depository Trust Company (“DTC”), the nominee of
      which is Cede & Co., or any other organization registered as a “clearing
      agency” pursuant to Section 17A of the Exchange Act. The Depository shall
      initially be the registered Holder of the Book-Entry Certificates. The
      Depository shall at all times be a “clearing corporation” as defined in
      Section 8-102(a)(5) of the Uniform Commercial Code of the State of New
      York.

     

    Depository
      Agreement:
      With
      respect to the Class of Book-Entry Certificates, the agreement among the
      Depositor, the Trustee and the initial Depository, dated as of the Closing
      Date,
      substantially in the form of Exhibit I.

     

    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 fifteenth (15th)
      day of
      the month of such Distribution Date or, if such day is not a Business Day,
      the
      immediately preceding Business Day.

     

    Distribution
      Accounts:
      The
      separate Eligible Account created and maintained by the Securities Administrator
      pursuant to Section 3.31 in the name of the Trustee for the benefit of the
      Certificateholders, which shall be designated “Wells Fargo Bank, N.A., in trust
      for registered holders of Nomura Asset Acceptance Corp., Mortgage Pass-Through
      Certificates, Series 2006-AR3. Funds in the Distribution Account shall be held
      in trust for the Certificateholders for the uses and purposes set forth in
      this
      Agreement.

     

    Distribution
      Date:
      The
      twenty-fifth (25th)
      day of
      each calendar month after the initial issuance of the Certificates, or if such
      twenty-fifth day is not a Business Day, the next succeeding Business Day,
      commencing in October 2006.

     

    Due
      Date:
      As to
      any Mortgage Loan, the date in each month on which the related Scheduled Payment
      is due, as set forth in the related Mortgage Note.

     

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

     

    Eligible
      Account:
      Any of
      (i) an account or accounts maintained with a federal or state chartered
      depository institution or trust company, the long-term unsecured debt
      obligations and short-term unsecured debt obligations of which are rated by
      each
      Rating Agency in one of its two highest long-term and its highest short-term
      rating categories respectively, at the time any amounts are held on deposit
      therein, or (ii) an account or accounts in a depository institution or trust
      company in which such accounts are insured by the FDIC (to the limits
      established by the FDIC) and the uninsured deposits in which accounts are
      otherwise secured such that, as evidenced by an Opinion of Counsel delivered
      to
      the Trustee and to each Rating Agency, the Certificateholders have a claim
      with
      respect to the funds in such account or a perfected first priority security
      interest against any collateral (which shall be limited to Permitted
      Investments) securing such funds that is superior to claims of any other
      depositors or creditors of the depository institution or trust company in which
      such account is maintained, or (iii) a segregated, non-interest bearing trust
      account or accounts maintained with the corporate trust department of a federal
      or state chartered depository institution or trust company having capital and
      surplus of not less than $50,000,000, acting in its fiduciary capacity or (iv)
      any other account acceptable to the Rating Agencies as evidenced in writing
      by
      the Rating Agencies. Eligible Accounts may bear interest, and may include,
      if
      otherwise qualified under this definition, accounts maintained with the Trustee
      or Securities Administrator.

     

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

     

    ERISA
      Restricted Certificate:
      Each of
      the Class X, Class P and Residual Certificates.

     

    Escrow
      Account:
      Shall
      mean the account or accounts maintained by GMACM pursuant to Section 3.29.
      Each Escrow Account shall be an Eligible Account.

     

    Excess
      Liquidation Proceeds:
      To the
      extent not required by law to be paid to the related Mortgagor, the excess,
      if
      any, of any Liquidation Proceeds with respect to a Mortgage Loan over the Stated
      Principal Balance of such Mortgage Loan and accrued and unpaid interest at
      the
      related Mortgage Rate through the last day of the month in which the Mortgage
      Loan has been liquidated.

     

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

     

    Exemption:
      Prohibited Transaction Exemption 93-32, as amended from time to
      time.

     

    Expense
      Fee Rate:
      The sum
      of the Credit Risk Management Fee Rate and Servicing Fee Rate attributable
      to
      the Mortgage Loans.

     

    Fannie
      Mae:
      Fannie
      Mae (formerly, Federal National Mortgage Association), or any successor
      thereto.

     

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

     

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

     

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

     

    Fitch:
      Fitch
      Ratings.

     

    Form
      8-K Disclosure Information:
      Has the
      meaning set forth in Section 5.12(b) of this Agreement.

     

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

     

    GMACM:
      GMAC
      Mortgage Corporation, and any successor thereto appointed under this Agreement
      in connection with the servicing and administration of the GMACM Mortgage Loans.
      

     

    GMACM
      Mortgage Loans:
      Those
      Mortgage Loans serviced by GMACM pursuant to the terms and provisions of this
      Agreement and identified as such on the Mortgage Loan Schedule.

     

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

     

    Indemnified
      Persons:
      The
      Trustee, any Servicer (including any successor to any Servicer), the Master
      Servicer, the Securities Administrator, the Custodian, the Trust Fund and their
      officers, directors, agents and employees and, with respect to the Trustee,
      any
      separate co-trustee and its officers, directors, agents and
      employees.

     

    Independent:
      When
      used with respect to any specified Person, any such Person who (a) is in fact
      independent of the Depositor, the Master Servicer, the Securities Administrator,
      a Servicer, the Sponsor, any originator and their respective Affiliates, (b)
      does not have any direct financial interest in or any material indirect
      financial interest in the Depositor, the Master Servicer, the Securities
      Administrator, a Servicer, the Sponsor, any originator or any Affiliate thereof,
      and (c) is not connected with the Depositor, the Master Servicer, the Securities
      Administrator, a Servicer, the Sponsor, any originator 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, the Master Servicer, the Securities
      Administrator, a Servicer, the Sponsor, any originator or any Affiliate thereof
      merely because such Person is the beneficial owner of one percent (1%) or less
      of any class of securities issued by the Depositor, the Master Servicer, the
      Securities Administrator, a Servicer, the Sponsor, any originator or any
      Affiliate thereof, as the case may be. 

     

    When
      used
      with respect to any accountants, a Person who is “independent” within the
      meaning of Rule 2-01(B) of the Securities and Exchange Commission’s Regulation
      S-X. Independent means, when used with respect to any other Person, a Person
      who
      (A) is in fact independent of another specified Person and any affiliate of
      such
      other Person, (B) does not have any material direct or indirect financial
      interest in such other Person or any affiliate of such other Person, (C) is
      not
      connected with such other Person or any affiliate of such other Person as an
      officer, employee, promoter, underwriter, Securities Administrator, partner,
      director or Person performing similar functions and (D) is not a member of
      the
      immediate family of a Person defined in clause (B) or (C) above.

     

    Index:
      As of
      any Adjustment Date, the index applicable to the determination of the Mortgage
      Rate on each Mortgage Loan which will generally be based on One-Month LIBOR
      Six-Month LIBOR or One-Year LIBOR.

     

    Initial
      Certificate Principal Balance:
      With
      respect to any Certificate, the Certificate Principal Balance of such
      Certificate or any predecessor Certificate on the Closing Date.

     

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

     

    Insurance
      Proceeds:
      Proceeds paid in respect of the Mortgage Loans pursuant to any Insurance Policy
      or any other insurance policy covering a Mortgage Loan, to the extent such
      proceeds are payable to the mortgagee under the Mortgage, the related Servicer
      or the trustee under the deed of trust and are not applied to the restoration
      of
      the related Mortgaged Property or released to the Mortgagor in accordance with
      the servicing standard set forth in Section 3.01 hereof or pursuant to the
      Servicing Agreement, other than any amount included in such Insurance Proceeds
      in respect of Insured Expenses.

     

    Insured
      Expenses:
      Expenses covered by any Insurance Policy with respect to the Mortgage
      Loans.

     

    Interest
      Determination Date:
      Shall
      mean the second LIBOR Business Day preceding the commencement of each Accrual
      Period.

     

    Interest
      Remittance Amount:
      With
      respect to any Distribution Date, an amount generally equal to the sum, without
      duplication, of (a) all scheduled interest during the related Due Period with
      respect to the Mortgage Loans less the Servicing Fee, the Credit Risk Management
      Fee and the fee payable to any provider of lender-paid mortgage insurance,
      if
      any, (b) the interest portion of all Principal Prepayments in full and partial
      Principal Prepayments received during the related Prepayment Period, (c) all
      Advances relating to interest with respect to the Mortgage Loans made on or
      prior to the related Remittance Date, (d) all Compensating Interest with respect
      to the Mortgage Loans and required to be remitted by the related Servicers
      or
      the Master Servicer pursuant to this Agreement or the Servicing Agreement with
      respect to such Distribution Date, (e) Liquidation Proceeds and Subsequent
      Recoveries with respect to the Mortgage Loans collected during the related
      Prepayment Period (to the extent such Liquidation Proceeds and Subsequent
      Recoveries relate to interest), (f) all amounts relating to interest with
      respect to each Mortgage Loan repurchased by the Sponsor pursuant to Sections
      2.02 and 2.03 and (g) all amounts in respect of interest paid by the Master
      Servicer pursuant to Section 10.01 to the extent remitted by the Master
      Servicer to the Distribution Account pursuant to this Agreement, minus (h)
      all
      amounts required to be reimbursed by the Trust pursuant to Section 3.32 or
      as otherwise set forth in this Agreement, the Servicing Agreement or the
      Custodial Agreement.

     

    Interest
      Shortfall:
      With
      respect to any Distribution Date, the aggregate shortfall, if any, in
      collections of interest (adjusted to the related Net Mortgage Rates) on Mortgage
      Loans resulting from (a) Principal
      Prepayments in full received during the related Prepayment Period, (b) partial
      Principal Prepayments received during the related Prepayment Period to the
      extent applied prior to the Due Date in the month of the Distribution
      Date
      and (c)
      interest payments on certain of the Mortgage Loans being limited pursuant to
      the
      provisions of the Relief Act.

     

    ISDA
      Master Agreement:
      The
      ISDA Master Agreement dated as of September 29, 2006, as amended and
      supplemented from time to time, between the Swap Provider and the Trustee,
      as
      trustee on behalf of the Supplemental Interest Trust.

     

    Last
      Scheduled Distribution Date:
      The
      Distribution Date in October 2036.

     

    Latest
      Possible Maturity Date:
      The
      second Distribution Date following the final scheduled maturity date of the
      Mortgage Loan in the Trust Fund having the latest scheduled maturity date as
      of
      the Cut-off Date. For purposes of the Treasury Regulations under Code
      Section 860A through 860G, the latest possible maturity date of each
      regular interest issued by REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V
      and
      REMIC VI shall be the Latest Possible Maturity Date.

     

    LIBOR
      Business Day:
      Shall
      mean any day other than a Saturday or a Sunday or a day on which banking
      institutions in the State of New York or in the city of London, England are
      required or authorized by law to be closed.

     

    LIBOR
      Determination Date:
      The
      second LIBOR Business Day before the first day of the related Accrual
      Period.

     

    Liquidated
      Loan:
      With
      respect to any Distribution Date, a defaulted Mortgage Loan that has been
      liquidated through deed-in-lieu of foreclosure, foreclosure sale, trustee’s sale
      or other realization as provided by applicable law governing the real property
      subject to the related Mortgage and any security agreements and as to which
      the
      related Servicer has certified in the related Prepayment Period in writing
      to
      the Securities Administrator that it has made a Final Recovery
      Determination.

     

    Liquidation
      Principal:
      The
      principal portion of Liquidation Proceeds received on a Mortgage Loan that
      became a Liquidated Mortgage Loan, but not in excess of the Stated Principal
      Balance of that Mortgage Loan, during the calendar month preceding the month
      of
      the Distribution Date.

     

    Liquidation
      Proceeds:
      Amounts, other than Insurance Proceeds, received in connection with the partial
      or complete liquidation of a Mortgage Loan, whether through trustee’s sale,
      foreclosure sale or otherwise, or in connection with any condemnation or partial
      release of a Mortgaged Property and any other proceeds received with respect
      to
      an REO Property, less the sum of related unreimbursed Advances, Servicing Fees
      and Servicing Advances and all expenses of liquidation, including property
      protection expenses and foreclosure and sale costs, including court and
      reasonable attorneys fees.

     

    Loan-to-Value
      Ratio:
      The
      fraction, expressed as a percentage, the numerator of which is the original
      principal balance of the Mortgage Loan and the denominator of which is the
      Appraised Value of the related Mortgaged Property.

     

    Majority
      Class X Certificateholder:
      The
      Holder of a 50.01% or greater Percentage Interest in the Class X
      Certificates.

     

    Marker
      Rate:
      With
      respect to the Class X Interest and any Distribution Date, a per annum rate
      equal to two (2) times the weighted average of the Uncertificated REMIC II
      Pass-Through Rates for REMIC II Regular Interest LT-A1A, REMIC II Regular
      Interest LT-A1B, REMIC II Regular Interest LT-A2, REMIC II Regular Interest
      LT-A3A, REMIC II Regular Interest LT-A3B, REMIC II Regular Interest LT-A4A,
      REMIC II Regular Interest LT-A4B, REMIC II Regular Interest LT-M1, REMIC II
      Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular
      Interest LT-M4, REMIC II Regular Interest LT-M5 and REMIC II Regular Interest
      LT-ZZ, with the per annum rate on each such REMIC II Regular Interest (other
      than REMIC II Regular Interest LT-ZZ) subject to a cap equal to the Pass-Through
      Rate on the Corresponding Certificate for the purpose of this calculation;
      and
      with the per annum rate on REMIC II Regular Interest LTI-ZZ subject to a cap
      of
      zero for the purpose of this calculation; provided, however, that for this
      purpose, the calculation of the Uncertificated REMIC II Pass-Through Rate and
      the related cap with respect to each such REMIC II Regular Interest (other
      than
      REMIC II Regular Interest LT-ZZ) shall be multiplied by a fraction, the
      numerator of which is the actual number of days in the Accrual Period and the
      denominator of which is thirty (30).

     

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

     

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

     

    Master
      Servicing Compensation:
      As
      defined in Section 4.12.

     

    Maximum
      Interest Rate:
      With
      respect to any Distribution Date and the related Accrual Period, an annual
      rate
      equal to the weighted average of the Maximum Mortgage Interest Rates of the
      Mortgage Loans minus the weighted average expense rate of the Mortgage Loans.
      The calculation of the Maximum Interest Rate will be based on a 360-day year
      and
      the actual number of days elapsed during the related Accrual
      Period.

     

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

     

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

     

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

     

    Mezzanine
      Certificates:
      The
      Class M-1, Class M-2, and Class M-3, Class M-4 and Class M-5
      Certificates.

     

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

     

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

     

    Minimum
      Servicing Requirements:
      With
      respect to a successor to GMACM appointed pursuant to Section 7.06(a)
      hereunder:

     

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

     

    (iii)  the
      proposed successor Servicer has a net worth of at least
      $25,000,000.

     

    MOM
      Loan:
      Any
      Mortgage Loan as to which MERS is 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
      Excess Cashflow:
      With
      respect to any Distribution Date, means the sum of (a) the Monthly Excess
      Interest, (b) the Overcollateralization Release Amount, if any, for such
      Distribution Date, and (c) the Principal Remittance Amount remaining following
      payments of the Principal Payment Amount to the Senior Certificates and
      Mezzanine Certificates.

     

    Monthly
      Excess Interest:
      With
      respect to any Distribution Date, the excess of (x) the Interest Remittance
      Amount for such Distribution Date over (y) the sum of Current Interest and
      Carryforward Interest on the Senior Certificates and Mezzanine Certificates
      for
      such Distribution Date.

     

    Monthly
      Statement:
      The
      statement delivered to the Certificateholders pursuant to
      Section 5.07.

     

    Moody’s:
      Moody’s
      Investors Service, Inc. or its successor in interest.

     

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

     

    Mortgage
      File:
      The
      Mortgage Loan Documents pertaining to a particular Mortgage Loan and any
      additional documents delivered to the Trustee or the Custodian on behalf of
      the
      Trustee to be added to the Mortgage File pursuant to this
      Agreement.

     

    Mortgage
      Loan Documents:
      As
      defined in Section 2.01.

     

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

     

    Mortgage
      Loan Purchase Agreement:
      The
      Mortgage Loan Purchase Agreement dated as of September 29, 2006, between the
      Sponsor, as seller and the Depositor, as purchaser, a form of which is attached
      hereto as Exhibit
      C.

     

    Mortgage
      Loan Purchase Price:
      The
      price, calculated as set forth in Section 10.01, to be paid in connection
      with the purchase of the Mortgage Loans pursuant to
      Section 10.01.

     

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

     

    (i)  the
      Mortgage Loan identifying number;

     

    (ii)  the
      Mortgage Rate in effect as of the Cut-off Date;

     

    (iv)  the
      Servicing Fee Rate;

     

    (v)  the
      Net
      Mortgage Rate in effect as of the Cut-off Date;

     

    (vi)  the
      maturity date;

     

    (vii)  the
      original principal balance;

     

    (viii)  the
      Cut-off Date Principal Balance;

     

    (ix)  the
      original term;

     

    (x)  the
      remaining term;

     

    (xi)  the
      property type;

     

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

     

    (xiii)  with
      respect to each MOM Loan, the related MIN;

     

    (xiv)  the
      Custodian; 

     

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

     

    (xvi)  the
      first
      Adjustment Date; 

     

    (xvii)  the
      Gross
      Margin; 

     

    (xviii)  the
      Maximum Mortgage Interest Rate under the terms of the Mortgage
      Note;

     

    (xix)  the
      Minimum Mortgage Interest Rate under the terms of the Mortgage
      Note;

     

    (xx)  the
      Periodic Rate Cap;

     

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

     

    (xxii)  the
      related Index; and

     

    (xxiii)  the
      Servicer.

     

    Such
      schedule shall also set forth the aggregate Cut-off Date Principal Balance
      for
      all of the Mortgage Loans.

     

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

     

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

     

    Mortgaged
      Property:
      The
      underlying property securing a Mortgage Loan.

     

    Mortgagor:
      The
      obligor on a Mortgage Note.

     

    Net
      Funds Cap:
      With
      respect to any Distribution Date, (a) a fraction, expressed as a percentage,
      the
      numerator of which is the product of (1) the Optimal Interest Remittance Amount
      for the Mortgage Loans and such Distribution Date, minus the sum of (x) any
      Net
      Swap Payment payable to the Swap Provider on such Distribution Date, and (y)
      any
      Swap Termination Payment (unless such payment is the result of a Swap Provider
      Trigger Event and to the extent not paid by the Securities Administrator from
      any upfront payment received pursuant to any replacement interest rate swap
      agreement that may be entered into by the Supplemental Interest Trust Trustee)
      payable to the Swap Provider on such Distribution Date, and (2) 12, and the
      denominator of which is the outstanding Aggregate Loan Balance for the
      immediately preceding Distribution Date, multiplied by (b) a fraction, the
      numerator of which is 30, and the denominator of which is the actual number
      of
      days which have elapsed in the immediately preceding Interest Accrual Period.
      For federal income tax purposes, the equivalent of the foregoing shall be
      expressed as the weighted average of the Uncertificated REMIC II Pass-Through
      Rate on each REMIC II Regular Interest (other than REMIC II Regular Interest
      LT-P and REMIC II Regular Interest LT-IO), weighted on the basis of the
      Uncertificated Principal Balance of each such REMIC II Regular
      Interest.

     

    Net
      Interest Shortfall:
      Means
      Interest Shortfalls net of payments by the Servicers or Master Servicer in
      respect of Compensating Interest.

     

    Net
      Liquidation Proceeds:
      With
      respect to a Mortgage Loan are Liquidation Proceeds net of unreimbursed advances
      by the related Servicer and advances and expenses incurred by the related
      Servicer in connection with the liquidation of such Mortgage Loan and the
      related Mortgaged Property.

     

    Net
      Mortgage Rate:
      As to
      each Mortgage Loan, and at any time, the per annum rate equal to the related
      Mortgage Rate less the sum of (i) the Servicing Fee Rate, (ii) the Credit Risk
      Management Fee Rate and (iii) the rate at which the fee payable to any provider
      of lender-paid mortgage insurance is calculated, if applicable.

     

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

     

    Non-Book-Entry
      Certificate:
      Any
      Certificate other than a Book-Entry Certificate.

     

    Nonrecoverable
      Advance:
      With
      respect to any Mortgage Loan, any portion of an Advance or Servicing Advance
      previously made or proposed to be made by the related Servicer pursuant to
      this
      Agreement or the Servicing Agreement, as applicable or the Master Servicer
      as
      Successor Servicer, that, in the good faith judgment of the related Servicer
      or
      the Master Servicer as Successor Servicer, will not or, in the case of a
      proposed Advance or Servicing Advance, would not, be ultimately recoverable
      by
      it from the related Mortgagor, related Liquidation Proceeds, Insurance Proceeds
      or otherwise.

     

    “Notional
      Amount”:
      For
      each calculation period as defined in the Swap Agreement, the amount set forth
      below:

     

    
      	
              Distribution
                Date

            	
              Notional
                Amount ($)

            
	
              October
                25, 2006

            	
              472,418,000.00

            
	
              November
                25, 2006

            	
              459,097,789.75

            
	
              December
                25, 2006

            	
              432,978,863.62

            
	
              January
                25, 2007

            	
              411,415,887.20

            
	
              February
                25, 2007

            	
              390,666,482.98

            
	
              March
                25, 2007

            	
              371,455,819.09

            
	
              April
                25, 2007

            	
              353,010,487.38

            
	
              May
                25, 2007

            	
              335,632,598.76

            
	
              June
                25, 2007

            	
              319,100,536.50

            
	
              July
                25, 2007

            	
              303,373,139.34

            
	
              August
                25, 2007

            	
              288,411,248.78

            
	
              September
                25, 2007

            	
              274,177,611.64

            
	
              October
                25, 2007

            	
              260,636,787.37

            
	
              November
                25, 2007

            	
              247,755,059.88

            
	
              December
                25, 2007

            	
              235,500,353.60

            
	
              January
                25, 2008

            	
              223,842,153.73

            
	
              February
                25, 2008

            	
              212,751,430.25

            
	
              March
                25, 2008

            	
              202,200,565.71

            
	
              April
                25, 2008

            	
              192,163,286.51

            
	
              May
                25, 2008

            	
              182,217,216.09

            
	
              June
                25, 2008

            	
              172,878,624.57

            
	
              July
                25, 2008

            	
              151,213,250.66

            
	
              August
                25, 2008

            	
              143,657,557.62

            
	
              September
                25, 2008

            	
              136,469,695.50

            
	
              October
                25, 2008

            	
              129,631,760.90

            
	
              November
                25, 2008

            	
              123,126,721.71

            
	
              December
                25, 2008

            	
              116,938,374.66

            
	
              January
                25, 2009

            	
              111,051,305.01

            
	
              February
                25, 2009

            	
              105,450,848.20

            
	
              March
                25, 2009

            	
              100,123,053.32

            
	
              April
                25, 2009

            	
              92,141,490.79

            
	
              May
                25, 2009

            	
              87,441,918.44

            
	
              June
                25, 2009

            	
              82,990,674.14

            
	
              July
                25, 2009

            	
              77,257,838.91

            
	
              August
                25, 2009

            	
              68,844,596.01

            
	
              September
                25, 2009

            	
              65,299,283.83

            
	
              October
                25, 2009

            	
              61,926,586.08

            
	
              November
                25, 2009

            	
              60,968,110.52

            
	
              December
                25, 2009

            	
              57,915,843.15

            
	
              January
                25, 2010

            	
              55,012,189.73

            
	
              February
                25, 2010

            	
              52,249,915.85

            
	
              March
                25, 2010

            	
              49,622,139.22

            
	
              April
                25, 2010

            	
              47,122,312.52

            
	
              May
                25, 2010

            	
              44,744,207.07

            
	
              June
                25, 2010

            	
              42,481,897.37

            
	
              July
                25, 2010

            	
              40,329,746.30

            
	
              August
                25, 2010

            	
              38,282,315.40

            
	
              September
                25, 2010

            	
              36,334,585.70

            
	
              October
                25, 2010

            	
              34,481,703.30

            
	
              November
                25, 2010

            	
              32,719,050.56

            
	
              December
                25, 2010

            	
              31,042,234.60

            
	
              January
                25, 2011

            	
              29,447,076.37

            
	
              February
                25, 2011

            	
              27,929,600.25

            
	
              March
                25, 2011

            	
              26,486,024.12

            
	
              April
                25, 2011

            	
              25,112,749.97

            
	
              May
                25, 2011

            	
              23,787,289.81

            
	
              June
                25, 2011

            	
              22,444,309.01

            
	
              July
                25, 2011

            	
              17,236,006.36

            
	
              August
                25, 2011

            	
              4,834,366.66

            
	
              September
                25, 2011

            	
              4,515,519.80

            
	
              October
                25, 2011 and thereafter

            	
              0.00

            

    

    

     

    Officer’s
      Certificate:
      A
      certificate (i) signed by the Chairman of the Board, the Vice Chairman of the
      Board, the President, a Vice President (however denominated), an Assistant
      Vice
      President, the Treasurer, the Secretary, or one of the assistant treasurers
      or
      assistant secretaries of the Depositor or the Trustee (or any other officer
      customarily performing functions similar to those performed by any of the above
      designated officers and also to whom, with respect to a particular matter,
      such
      matter is referred because of such officer’s knowledge of and familiarity with a
      particular subject) or (ii), if provided for in this Agreement, signed by an
      Authorized Servicer Representative, as the case may be, and delivered to the
      Depositor, the Sponsor, the Master Servicer, the Securities Administrator and/or
      the Trustee, as the case may be, as required by this Agreement.

     

    One-Month
      LIBOR:
      With
      respect to any Accrual Period (other than the first Accrual Period), the rate
      determined by the Securities Administrator on the related Interest Determination
      Date on the basis of the rate for U.S. dollar deposits for one month that
      appears on Telerate Screen Page 3750 as of 11:00 a.m. (London time) on such
      Interest Determination Date. If such rate does not appear on such page (or
      such
      other page as may replace that page on that service, or if such service is
      no
      longer offered, such other service for displaying One-Month LIBOR or comparable
      rates as may be reasonably selected by the Securities Administrator), One-Month
      LIBOR for the applicable Accrual Period will be the Reference Bank Rate. If
      no
      such quotations can be obtained by the Securities Administrator and no Reference
      Bank Rate is available, One-Month LIBOR will be One-Month LIBOR applicable
      to
      the preceding Accrual Period. The establishment of One-Month LIBOR on each
      Interest Determination Date by the Securities Administrator and the Securities
      Administrator’s calculation of the rate of interest applicable to the Senior
      Certificates and Mezzanine Certificates for the related Accrual Period shall,
      in
      the absence of manifest error, be final and binding. With respect to the first
      Accrual period, One-Month LIBOR shall equal 5.326% per annum.

     

    One-Year
      LIBOR: The
      per
      annum rate equal to the average of interbank offered rates for one-year U.S.
      dollar-denominated deposits in the London market based on quotations of major
      banks as published in The Wall Street Journal and most recently available as
      of
      the time specified in the related Mortgage Note.

     

    Opinion
      of Counsel:
      A
      written opinion of counsel, who may be counsel for the Sponsor, the Master
      Servicer, the Depositor or a Servicer, reasonably acceptable to each addressee
      of such opinion; provided that with respect to Section 2.05, 7.05 or 11.01,
      or the interpretation or application of the REMIC Provisions, such counsel
      must
      (i) in fact be independent of the Sponsor, the Master Servicer Depositor and
      such Servicer, (ii) not have any direct financial interest in the Sponsor,
      the
      Depositor, the Master Servicer or such Servicer or in any affiliate of any
      of
      them, and (iii) not be connected with the Sponsor, the Depositor, the Master
      Servicer or such Servicer as an officer, employee, promoter, underwriter,
      trustee, partner, director or person performing similar functions.

     

    Optimal
      Interest Remittance Amount:
      With
      respect to any Distribution Date and the Senior Certificates and Mezzanine
      Certificates, will be equal to the excess of (i) the product of (1)(x) the
      weighted average Net Mortgage Rates of the Mortgage Loans as of the first day
      of
      the related Due Period divided by (y) 12 and (2) the Aggregate Loan Balance
      for
      the immediately preceding Distribution Date, over (ii) any expenses that reduce
      the Interest Remittance Amount that did not arise as a result of a default
      or
      delinquency of the Mortgage Loans or were not taken into account in computing
      the expense fee rate.

     

    Optional
      Termination:
      The
      termination of the Trust Fund created hereunder as a result of the purchase
      of
      all of Mortgage Loans and REO Properties, as described in
      Section 10.01.

     

    Optional
      Termination Date:
      The
      first Distribution Date on which the Master Servicer may purchase, at its option
      the Mortgage Loans and all REO Properties, as described in
      Section 10.01.

     

    OTS:
      The
      Office of Thrift Supervision or any successor thereto.

     

    OTS
      Method:
      The
      method used by OTS to calculate delinquencies.

     

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

     

    (a) Certificates
      theretofore canceled by the Securities Administrator or delivered to the
      Securities Administrator for cancellation; and

     

    (b) Certificates
      in exchange for which or in lieu of which other Certificates have been executed
      and delivered by the Securities Administrator pursuant to this
      Agreement.

     

    Outstanding
      Mortgage Loan:
      As of
      any date of determination, a Mortgage Loan with a Stated Principal Balance
      greater than zero that was not the subject of a Principal Prepayment in full,
      and that did not become a Liquidated Loan, prior to the end of the related
      Prepayment Period.

     

    Overcollateralization
      Amount:
      With
      respect to any Distribution Date, the excess, if any, of (a) the Aggregate
      Loan
      Balance for such Distribution Date over (b) the aggregate Certificate Principal
      Balance of the Senior Certificates and Mezzanine Certificates on such
      Distribution Date (after taking into account the payment of 100% of the
      Principal Remittance Amount on such Distribution Date).

     

    Overcollateralization
      Deficiency Amount:
      With
      respect to any Distribution Date, will be equal to the amount, if any, by which
      (x) the Targeted Overcollateralization Amount for such Distribution Date exceeds
      (y) the Overcollateralization Amount for such Distribution Date, calculated
      for
      this purpose after giving effect to the reduction on such Distribution Date
      of
      the aggregate Certificate Principal Balance of the Senior Certificates and
      Mezzanine Certificates resulting from the payment of the Principal Remittance
      Amount on such Distribution Date, but prior to allocation of any Applied Loss
      Amount on such Distribution Date.

     

    Overcollateralization
      Release Amount:
      With
      respect to any Distribution Date, will be equal to the lesser of (x) the
      Principal Remittance Amount for such Distribution Date and (y) the amount,
      if
      any, by which (1) the Overcollateralization Amount for such date, exceeds (2)
      the Targeted Overcollateralization Amount for such Distribution
      Date.

     

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

     

    Pass-Through
      Rate:
      The
      Class A-1A, Class A-1B, Class A-2, Class A-3A, Class A-3B, Class A-4A, Class
      A-4B, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5 and Class X
      Pass-Through Rate, as applicable.

     

    Payahead:
      Any
      Scheduled Payment intended by the related Mortgagor to be applied in a Due
      Period subsequent to the Due Period in which such payment was
      received.

     

    PCAOB:
      Shall
      mean the Public Company Accounting Oversight Board.

     

    Percentage
      Interest:
      With
      respect to any Certificate of a specified Class, the Percentage Interest set
      forth on the face thereof or the percentage obtained by dividing the
      Denomination of such Certificate by the aggregate of the Denominations of all
      Certificates of such Class.

     

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

     

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

     

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

     

    (xxv)  general
      obligations of or obligations guaranteed by any state of the United States
      or
      the District of Columbia receiving the highest long-term debt rating of each
      Rating Agency, or such lower rating as will not result in the downgrading or
      withdrawal of the ratings then assigned to the Certificates by each Rating
      Agency, as evidenced by a signed writing delivered by each Rating
      Agency;

     

    (xxvi)  commercial
      or finance company paper which is then receiving the highest commercial or
      finance company paper rating of each Rating Agency that rates such securities,
      or such lower rating as will not result in the downgrading or withdrawal of
      the
      ratings then assigned to the Certificates by each Rating Agency, as evidenced
      by
      a signed writing delivered by each Rating Agency;

     

    (xxvii)  certificates
      of deposit, demand or time deposits, or bankers’ acceptances issued by any
      depository institution or trust company incorporated under the laws of the
      United States or of any state thereof and subject to supervision and examination
      by federal and/or state banking authorities (including the Trustee or the Master
      Servicer in its commercial banking capacity), provided that the commercial
      paper
      and/or long term unsecured debt obligations of such depository institution
      or
      trust company are then rated one of the two highest long-term and the highest
      short-term ratings of each such Rating Agency for such securities, or such
      lower
      ratings as will not result in the downgrading or withdrawal of the rating then
      assigned to the Certificates by any Rating Agency, as evidenced by a signed
      writing delivered by each Rating Agency;

     

    (xxviii)  demand
      or
      time deposits or certificates of deposit issued by any bank or trust company
      or
      savings institution to the extent that such deposits are fully insured by the
      FDIC;

     

    (xxix)  guaranteed
      reinvestment agreements issued by any bank, insurance company or other
      corporation containing, at the time of the issuance of such agreements, such
      terms and conditions as will not result in the downgrading or withdrawal of
      the
      rating then assigned to the Certificates by any such Rating Agency, as evidenced
      by a signed writing delivered by each Rating Agency;

     

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

     

    (xxxi)  securities
      (other than stripped bonds, stripped coupons or instruments sold at a purchase
      price in excess of 115% of the face amount thereof) bearing interest or sold
      at
      a discount issued by any corporation incorporated under the laws of the United
      States or any state thereof which, at the time of such investment, have one
      of
      the two highest long term ratings of each Rating Agency, or such lower rating
      as
      will not result in the downgrading or withdrawal of the rating then assigned
      to
      the Certificates by any Rating Agency, as evidenced by a signed writing
      delivered by each Rating Agency;

     

    (xxxii)  units
      of
      money market funds registered under the Investment Company Act of 1940 including
      funds managed or advised by the Trustee, the Master Servicer or an affiliate
      of
      either, having a rating by S&P of AAAm-G or AAAm, if rated by Moody’s, rated
      Aaa, Aa1 or Aa2, and if rated by Fitch, F1, F2 or F3;

     

    (xxxiii)  short
      term investment funds sponsored by any trust company or banking association
      incorporated under the laws of the United States or any state thereof (including
      any such fund managed or advised by the Trustee, the Master Servicer or any
      affiliate thereof) which on the date of acquisition has been rated by each
      Rating Agency in their respective highest applicable rating category or such
      lower rating as will not result in the downgrading or withdrawal of the ratings
      then assigned to the Certificates by each Rating Agency, as evidenced by a
      signed writing delivered by each Rating Agency; and

     

    (xxxiv)  such
      other investments having a specified stated maturity and bearing interest or
      sold at a discount acceptable to each Rating Agency as will not result in the
      downgrading or withdrawal of the rating then assigned to the Certificates by
      any
      Rating Agency, as evidenced by a signed writing delivered by each Rating Agency,
      as evidenced by a signed writing delivered by each Rating Agency;

     

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

     

    Permitted
      Transferee:
      Any
      person other than (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, (ii) a foreign government, International Organization
      or
      any agency or instrumentality of either of the foregoing, (iii) an organization
      (except certain farmers’ cooperatives described in Section 521 of the Code)
      that is exempt from tax imposed by Chapter 1 of the Code (including the tax
      imposed by Section 511 of the Code on unrelated business taxable income) on
      any excess inclusions (as defined in Section 860E(c)(1) of the Code) with
      respect to any Residual Certificate, (iv) rural electric and telephone
      cooperatives described in Section 1381(a)(2)(C) of the Code, (v) a Person
      that is not a citizen or resident of the United States, a corporation,
      partnership (other than a partnership that has any direct or indirect foreign
      partners) or other entity (treated as a corporation or a partnership for federal
      income tax purposes), created or organized in or under the laws of the United
      States, any state thereof or the District of Columbia, an estate whose income
      from sources without the United States is includible in gross income for United
      States federal income tax purposes regardless of its connection with the conduct
      of a trade or business within the United States, or a trust if a court within
      the United States is able to exercise primary supervision over the
      administration of the trust and one or more United States persons have authority
      to control all substantial decisions of the trustor and (vi) any other Person
      based upon an Opinion of Counsel (which shall not be an expense of the Trustee)
      that states that the Transfer of an Ownership Interest in a Residual Certificate
      to such Person may cause any REMIC to fail to qualify as a REMIC at any time
      that any Certificates are Outstanding. The terms “United States,” “State” and
“International Organization” shall have the meanings set forth in
      Section 7701 of the Code or successor provisions. A corporation will not be
      treated as an instrumentality of the United States or of any State or political
      subdivision thereof for these purposes if all of its activities are subject
      to
      tax and, with the exception of Freddie Mac, a majority of its board of directors
      is not selected by such government unit.

     

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

     

    Prepayment
      Assumption:
      The
      assumed rate of prepayment, as described in the Prospectus Supplement relating
      to each Class of Publicly Offered Certificates.

     

    Prepayment
      Charge:
      With
      respect to any Principal Prepayment, any prepayment premium, penalty or charge
      payable by a Mortgagor in connection with any Principal Prepayment on a Mortgage
      Loan pursuant to the terms of the related Mortgage Note (other than any Servicer
      Prepayment Charge Payment Amount) as shown on the Prepayment Charge
      Schedule.

     

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

     

    
      	
              (i)

            	
              the
                Mortgage Loan identifying number;

            
	 	 
	
              (ii)

            	
              a
                code indicating the type of Prepayment Charge;

            
	 	 
	
              (iii)

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

            
	 	 
	
              (iv)

            	
              the
                term of the related Prepayment Charge;

            
	 	 
	
              (v)

            	
              the
                original Stated Principal Balance of the related Mortgage Loan;
                and

            
	 	 
	
              (vi)

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

            

    

    

    Prepayment
      Interest Shortfall:
      With
      respect to any Distribution Date, for each Mortgage Loan that was the subject
      of
      a Principal Prepayment in full during the related Prepayment Period, (other
      than
      a Principal Prepayment in full resulting from the purchase of a Mortgage Loan
      pursuant to Section 2.02, 2.03, 3.24 or 10.01 hereof), the amount, if any,
      by which (i) one month’s interest at the applicable Net Mortgage Rate on the
      Stated Principal Balance of such Mortgage Loan immediately prior to such
      prepayment exceeds (ii) the amount of interest paid or collected in connection
      with such Principal Prepayment less the sum of (a) the related Servicing Fee,
      (b) the Credit Risk Management Fee and (c) the fee payable to any provider
      of
      lender-paid mortgage insurance, if any.

     

    Prepayment
      Period:
      With
      respect to any Distribution Date and (i) GMACM, the 14th
      day of
      the immediately preceding calendar month through the 13th
      day of
      the month in which such Distribution Date occurs and (ii) Wachovia, the prior
      calendar month. 

     

    Principal
      Payment Amount:
      With
      respect to any Distribution Date will be equal to the Principal Remittance
      Amount for such Distribution Date minus the Overcollateralization Release
      Amount, if any, for such Distribution Date.

     

    Principal
      Prepayment:
      Any
      Mortgagor payment or other recovery of (or proceeds with respect to) principal
      on a Mortgage Loan (including Mortgage Loans purchased or repurchased under
      Sections 2.02, 2.03, 3.24 and 10.01 hereof) that is received in advance of
      its
      scheduled Due Date and is not accompanied by an amount as to interest
      representing scheduled interest due on any Due Date in any month or months
      subsequent to the month of prepayment. Partial Principal Prepayments shall
      be
      applied by the related Servicer in accordance with the terms of the related
      Mortgage Note.

     

    Principal
      Remittance Amount:
      With
      respect to any Distribution Date, (i) the sum, without duplication, of (a)
      the
      principal portion of all Scheduled Payments on the Mortgage Loans due during
      the
      related Due Period whether or not received on or prior to the related
      Determination Date, (b) the Stated Principal Balance of each Mortgage Loan
      that
      was repurchased by the Sponsor during the related Prepayment Period pursuant
      to
      Sections 2.02, 2.03 and 3.24, (c) the aggregate of all Substitution
      Adjustment Amounts received during the related Prepayment Period for the related
      Determination Date in connection with the substitution of Mortgage Loans
      pursuant to Section 2.03(b), (d) the principal portion of all other
      unscheduled collections (other than Payaheads) including Insurance Proceeds,
      Condemnation Proceeds, Liquidation Proceeds, Subsequent Recoveries and all
      full
      and partial Principal Prepayments exclusive of prepayment charges or penalties
      collected during the related Prepayment Period, to the extent applied as
      recoveries of principal on the Mortgage Loans, (e) the principal portion of
      Payaheads previously received on the Mortgage Loans and intended for application
      in the related Due Period, (f) amounts in respect of principal on the Mortgage
      Loans paid by the Master Servicer pursuant to Section 10.01 minus (ii) all
      amounts required to be reimbursed by the Trust Fund pursuant to
      Sections 4.02, 4.05, 4.07 and 9.05 or as otherwise set forth in this
      Agreement, the Servicing Agreement or the Custodial Agreement.

     

    Private
      Certificate:
      Each of
      the Class X, Class P and Residual Certificates.

     

    Prospectus
      Supplement:
      The
      Prospectus Supplement dated September 27, 2006 relating to the offering of
      the
      Publicly Offered Certificates.

     

    Publicly
      Offered Certificates:
      Any
      Certificates other than the Private Certificates. 

     

    PUD:
      A
      planned unit development.

     

    Purchase
      Price:
      With
      respect to any Mortgage Loan required to be repurchased by the Sponsor pursuant
      to Section 2.02, 2.03 or 3.24 hereof and as confirmed by an Officer’s
      Certificate from the Sponsor to the Trustee, an amount equal to the sum of
      (i)
      100% of the outstanding principal balance of the Mortgage Loan as of the date
      of
      such purchase plus, (ii) thirty (30) days’ accrued interest thereon at the
      applicable Net Mortgage Rate, plus any portion of the Servicing Fee, Servicing
      Advances and Advances payable to the related Servicer or Master Servicer, as
      applicable, with respect to such Mortgage Loan plus (iii) any costs and damages
      of the Trust Fund in connection with any violation by such Mortgage Loan of
      any
      abusive or predatory lending law, including any expenses incurred by the Trustee
      with respect to such Mortgage Loan prior to the purchase thereof.

     

    Rating
      Agency:
      Each of
      Moody’s and S&P. If any such organization or its successor is no longer in
      existence, “Rating Agency” shall be a nationally recognized statistical rating
      organization, or other comparable Person, designated by the Depositor, notice
      of
      which designation shall be given to the Trustee. References herein to a given
      rating category of a Rating Agency shall mean such rating category without
      giving effect to any modifiers.

     

    Realized
      Loss:
      With
      respect to each Mortgage Loan as to which a Final Recovery Determination has
      been made, an amount (not less than zero) equal to (i) the Stated Principal
      Balance of such Mortgage Loan as of the commencement of the calendar month
      in
      which the Final Recovery Determination was made, plus (ii) accrued interest
      from
      the Due Date as to which interest was last paid by the Mortgagor through the
      end
      of the calendar month in which such Final Recovery Determination was made,
      calculated in the case of each calendar month during such period (A) at an
      annual rate equal to the annual rate at which interest was then accruing on
      such
      Mortgage Loan and (B) on a principal amount equal to the Stated Principal
      Balance of such Mortgage Loan as of the close of business on the Distribution
      Date during such calendar month, minus (iii) the proceeds, if any, received
      in
      respect of such Mortgage Loan during the calendar month in which such Final
      Recovery Determination was made, net of amounts that are payable therefrom
      to
      the Servicer pursuant to this Agreement. To the extent the 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
      that Subsequent Recoveries are applied to reduce the Certificate Principal
      Balance of any Class of Certificates on any Distribution Date.

     

    With
      respect to any REO Property as to which a Final Recovery Determination has
      been
      made, an amount (not less than zero) equal to (i) the Stated Principal Balance
      of the related Mortgage Loan as of the date of acquisition of such REO Property
      on behalf of REMIC I, plus (ii) accrued interest from the Due Date as to which
      interest was last paid by the Mortgagor in respect of the related Mortgage
      Loan
      through the end of the calendar month immediately preceding the calendar month
      in which such REO Property was acquired, calculated in the case of each calendar
      month during such period (A) at an annual rate equal to the annual rate at
      which
      interest was then accruing on the related Mortgage Loan and (B) on a principal
      amount equal to the Stated Principal Balance of the related Mortgage Loan as
      of
      the close of business on the Distribution Date during such calendar month,
      minus
      (iii) the aggregate of all unreimbursed Advances and Servicing
      Advances.

     

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

     

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

     

    In
      addition, to the extent the 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 Subsequent Recoveries are
      applied to reduce the Certificate Principal Balance of any Class of Certificates
      on any Distribution Date.

     

    Record
      Date:
      With
      respect to the Senior Certificates and Subordinate Certificates and any
      Distribution Date, so long as such Certificates are Book-Entry Certificates,
      the
      Business Day preceding such Distribution Date, and otherwise, the close of
      business on the last Business Day of the month preceding the month in which
      such
      Distribution Date occurs. With respect to the Class P, Class X and Residual
      Certificates and any Distribution Date, the close of business on the last
      Business Day of the month preceding the month in which such Distribution Date
      occurs. 

     

    Reference
      Bank Rate:
      With
      respect to any Accrual Period shall mean the arithmetic mean, rounded upwards,
      if necessary, to the nearest whole multiple of 0.03125%, of the offered rates
      for United States dollar deposits for one month that are quoted by the Reference
      Banks as of 11:00 a.m., New York City time, on the related Interest
      Determination Date to prime banks in the London interbank market for a period
      of
      one month in an amount approximately equal to the aggregate Certificate
      Principal Balance of the Senior Certificates and Mezzanine Certificates for
      such
      Accrual Period, provided that at least two such Reference Banks provide such
      rate. If fewer than two offered rates appear, the Reference Bank Rate will
      be
      the arithmetic mean, rounded upwards, if necessary, to the nearest whole
      multiple of 0.03125%, of the rates quoted by one or more major banks in New
      York
      City, selected by the Securities Administrator, as of 11:00 a.m., New York
      City
      time, on such date for loans in United States dollars to leading European banks
      for a period of one month in amounts approximately equal to the aggregate
      Certificate Principal Balance of the Senior Certificates and Mezzanine
      Certificates for such Accrual Period.

     

    Reference
      Banks:
      Shall
      mean leading banks selected by the Securities Administrator and engaged in
      transactions in Eurodollar deposits in the international Eurocurrency market
      (i)
      with an established place of business in London, (ii) which have been designated
      as such by the Securities Administrator and (iii) which are not controlling,
      controlled by, or under common control with, the Depositor, the Sponsor or
      the
      Servicer.

     

    Regular
      Certificate:
      The
      Senior Certificates, Mezzanine Certificates, Class X Certificates and Class
      P
      Certificates.

     

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

     

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

     

    Relief
      Act:
      The
      Servicemembers Civil Relief Act of 2003, as amended from time to time or similar
      state or local laws.

     

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

     

    REMIC
      I:
      The
      segregated pool of assets subject hereto, constituting the primary trust created
      hereby and to be administered hereunder, with respect to which a REMIC election
      is to be made, consisting of (i) the Mortgage Loans and all interest accruing
      and principal due with respect thereto after the Cut-off Date to the extent
      not
      applied in computing the Cut-off Date Principal Balance thereof and all related
      Prepayment Charges; (ii) the related Mortgage Files, (iii) the
      Custodial Accounts (other than any amounts representing any Servicer Prepayment
      Charge Payment Amount), the Distribution Account, the Class P Certificate
      Account and such assets that are deposited therein from time to time, together
      with any and all income, proceeds and payments with respect thereto; (iv)
      property that secured a Mortgage Loan and has been acquired by foreclosure,
      deed
      in lieu of foreclosure or otherwise; (v) the mortgagee’s rights under the
      Insurance Policies with respect to the Mortgage Loans; (vi) the rights under
      the
      Mortgage Loan Purchase Agreement, and (vii) all proceeds of the foregoing,
      including proceeds of conversion, voluntary or involuntary, of any of the
      foregoing into cash or other liquid property. Notwithstanding
      the foregoing, however, REMIC I specifically excludes (i) all payments and
      other
      collections of principal and interest due on the Mortgage Loans on or before
      the
      Cut-off Date, (ii) all Prepayment Charges payable in connection with Principal
      Prepayments on the Mortgage Loans made before the Cut-off Date, (iii) the Basis
      Risk Shortfall Reserve Fund, (iv) the Swap Agreement and (v) the Supplemental
      Interest Trust.

     

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

     

    REMIC
      II:
      The
      segregated pool of assets consisting of all of the REMIC I Regular Interests
      conveyed in trust to the Trustee, for the benefit of the Holders of the REMIC
      II
      Regular Interests and the Holders of the Class R Certificates (as holders of
      the
      Class R-3 Interest), pursuant to Article II hereunder, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

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

     

    REMIC
      II Overcollateralization Amount:
      With
      respect to any date of determination, (i) the aggregate Uncertificated Principal
      Balances of the REMIC II Regular Interests minus (ii) the aggregate of the
      Uncertificated Principal Balances of REMIC II Regular Interest LT-A1A, REMIC
      II
      Regular Interest LT-A1B, REMIC II Regular Interest LT-A2, REMIC II Regular
      Interest LT-A3A, REMIC II Regular Interest LT-A3B, REMIC II Regular Interest
      LT-A4A, REMIC II Regular Interest LT-A4B, REMIC II Regular Interest LT-M1,
      REMIC
      II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular
      Interest LT-M4 and REMIC II Regular Interest LT-M5, in each case as of such
      date
      of determination.

     

    REMIC
      II Principal Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount equal to (a) the product of (i)
      the
      aggregate Stated Principal Balance of the Mortgage Loans and related REO
      Properties then outstanding and (ii) 1 minus a fraction, the numerator of which
      is two times the aggregate of the Uncertificated Principal Balances of REMIC
      II
      Regular Interest LT-A1A, REMIC II Regular Interest LT-A1B, REMIC II Regular
      Interest LT-A2, REMIC II Regular Interest LT-A3A, REMIC II Regular Interest
      LT-A3B, REMIC II Regular Interest LT-A4A, REMIC II Regular Interest LT-A4B,
      REMIC II Regular Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC II
      Regular Interest LT-M3, REMIC II Regular Interest LT-M4 and REMIC II Regular
      Interest LT-M5 and the denominator of which is the aggregate of the
      Uncertificated Principal Balances of REMIC II Regular Interest LT-A1A, REMIC
      II
      Regular Interest LT-A1B, REMIC II Regular Interest LT-A2, REMIC II Regular
      Interest LT-A3A, REMIC II Regular Interest LT-A3B, REMIC II Regular Interest
      LT-A4A, REMIC II Regular Interest LT-A4B, REMIC II Regular Interest LT-M1,
      REMIC
      II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular
      Interest LT-M4, REMIC II Regular Interest LT-M5 and REMIC II Regular Interest
      LT-ZZ.

     

    REMIC
      II Regular Interests:
      REMIC
      II Regular Interest LT-A1A, REMIC II Regular Interest LT-A1B, REMIC II Regular
      Interest LT-A2, REMIC II Regular Interest LT-A3A, REMIC II Regular Interest
      LT-A3B, REMIC II Regular Interest LT-A4A, REMIC II Regular Interest LT-A4B,
      REMIC II Regular Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC II
      Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC II Regular
      Interest LT-M5, REMIC II Regular Interest LT-ZZ, REMIC II Regular Interest
      LTII-P and REMIC II Regular Interest LT-IO.

     

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

     

    REMIC
      II Regular Interest LT-A1A:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-A1A shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-A1B:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-A1B shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-A2:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-A2 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-A3A:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-A3A shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-A3B:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-A3B shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-A4A:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-A4A shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-A4B:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-A4B shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-IO:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-IO shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time.

     

    REMIC
      II Regular Interest LT-M1:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M1 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M2:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M2 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M3:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M3 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M4:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M4 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M5:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M5 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LTII-P:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LTII-P shall be entitled to distributions of principal, subject to
      the
      terms and conditions hereof, in an aggregate amount equal to its initial
      Uncertificated Principal Balance as set forth in the Preliminary Statement
      hereto.

     

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

     

    REMIC
      II Regular Interest LT-ZZ Maximum Interest Deferral Amount:
      With
      respect to any Distribution Date, the excess of (i) accrued interest at the
      Uncertificated REMIC II Pass-Through Rate applicable to REMIC II Regular
      Interest LT-ZZ for such Distribution Date on a balance equal to the
      Uncertificated Principal Balance of REMIC II Regular Interest LT-ZZ minus the
      REMIC II Overcollateralization Amount, in each case for such Distribution Date,
      over (ii) the Uncertificated Accrued Interest on REMIC II Regular Interest
      LT-A1A, REMIC II Regular Interest LT-A1B, REMIC II Regular Interest LT-A2,
      REMIC
      II Regular Interest LT-A3A, REMIC II Regular Interest LT-A3B, REMIC II Regular
      Interest LT-A4A, REMIC II Regular Interest LT-A4B, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4 and REMIC II Regular Interest LT-M5 for such
      Distribution Date, with the rate on each such REMIC II Regular Interest subject
      to a cap equal to the related Pass-Through Rate.

     

    REMIC
      II Targeted Overcollateralization Amount:
      1.00%
      of the Targeted Overcollateralization Amount.

     

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

     

    REMIC
      III Regular Interest:
      Any of
      the Class X Interest, Class P Interest, Class IO Interest, and any “regular
      interest” in REMIC III the ownership of which is represented by a Senior
      Certificate or Mezzanine Certificate.

     

    REMIC
      III Certificate:
      Any
      Senior Certificate, Mezzanine Certificate or Class R Certificate.

     

    REMIC
      III Certificateholder:
      The
      Holder of any REMIC III Certificate. 

     

    REMIC
      IV:
      The
      segregated pool of assets consisting of all of the Class X Interest conveyed
      in
      trust to the Trustee, for the benefit of the Holders of the Class X Certificates
      and the Holders of the Class R-X Certificates (as Holders of the Class R-4
      Interest), pursuant to Section 2.07 hereunder, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

    REMIC
      V:
      The
      segregated pool of assets consisting of all of the Class P Interest conveyed
      in
      trust to the Trustee, for the benefit of the Holders of the Class P Certificates
      and the Holders of the Class R-X Certificates (as Holders of the Class R-5
      Interest), pursuant to Section 2.07 hereunder, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

    REMIC
      VI:
      The
      segregated pool of assets consisting of all of the Class IO Interest conveyed
      in
      trust to the Trustee, for the benefit of the Holders of REMIC VI Regular
      Interest IO and the Holders of the Class R-X Certificates (as Holders of the
      Class R-6 Interest), pursuant to Section 2.07, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

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

     

    REMIC
      Opinion:
      Shall
      mean an Opinion of Counsel to the effect that the proposed action will not
      have
      an adverse affect on any REMIC created hereunder.

     

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

     

    REMIC
      Regular Interest:
      Any
      REMIC I Regular Interest, REMIC II Regular Interest, REMIC III Regular Interest
      or a Regular Certificate.

     

    Remittance
      Date:
      Shall
      mean the eighteenth (18th)
      day of
      the month and if such day is not a Business Day, the immediately preceding
      Business Day.

     

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

     

    Replacement
      Mortgage Loan:
      A
      Mortgage Loan or Mortgage Loans in the aggregate substituted by the Sponsor
      for
      a Deleted Mortgage Loan, which must, on the date of such substitution, as
      confirmed in a request for release in accordance with the terms of the Custodial
      Agreement, (i) have a Stated Principal Balance, after deduction of the principal
      portion of the Scheduled Payment due in the month of substitution, not in excess
      of, and not less than 90% of, the Stated Principal Balance of the Deleted
      Mortgage Loan; (ii) (a) with respect to a Group I Mortgage Loan, have a fixed
      Mortgage Rate not less than or more than 1% per annum higher than the Mortgage
      Rate of the Deleted Mortgage Loan or (b) with respect to a Group II-IV Mortgage
      Loan or Group V Mortgage Loan, have an adjustable Mortgage Rate not less than
      or
      more than 1% per annum higher than the Mortgage Rate of the Deleted Mortgage
      Loan; (iii) have the same or higher credit quality characteristics than that
      of
      the Deleted Mortgage Loan; (iv) have a Loan-to-Value Ratio no higher than that
      of the Deleted Mortgage Loan; (v) have a remaining term to maturity no greater
      than (and not more than one year less than) that of the Deleted Mortgage Loan;
      (vi) be secured by a first lien on the related Mortgaged Property; (vii)
      constitute the same occupancy type as the Deleted Mortgage Loan or be owner
      occupied; (viii) have a Maximum Mortgage Interest Rate not less than the Maximum
      Mortgage Interest Rate on the Deleted Loan; (ix) have a Minimum Mortgage
      Interest Rate not less than the Minimum Mortgage Interest Rate of the Deleted
      Loan; (x) have a Gross Margin equal to the Gross Margin of the Deleted Loan;
      (xi) have a next Adjustment Date not more than two months later than the next
      Adjustment Date on the Deleted Loan; and (xii) comply with each representation
      and warranty set forth in the Mortgage Loan Purchase Agreement.

     

    Reportable
      Event:
      Has the
      meaning set forth in Section 5.17(b) of this Agreement.

     

    Reporting
      Servicer:
      Shall
      mean any Servicer, the Master Servicer, the Securities Administrator, the
      Custodian under the Custodial Agreement, and any Servicing Function Participant
      engaged by such parties.

     

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

     

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

     

    Responsible
      Officer:
      With
      respect to the Trustee and the Securities Administrator, any Vice President,
      any
      Assistant Vice President, the Secretary, any Assistant Secretary, any Trust
      Officer, any other officer customarily performing functions similar to those
      performed by any of the above designated officers or other officers of the
      Trustee or the Securities Administrator specified by the Trustee or the
      Securities Administrator, as the case may be, having direct responsibility
      over
      this Agreement and customarily performing functions similar to those performed
      by any one of the designated officers, as to whom, with respect to a particular
      matter, such matter is referred because of such officer’s knowledge of and
      familiarity with the particular subject.

     

    Responsible
      Party:
      The
      party indicated on Exhibit N as the entity primarily responsible for reporting
      the information set forth therein to the Securities Administrator pursuant
      to
      Section 5.12.

     

    Rolling
      Three Month Delinquency Rate:
      With
      respect to any Distribution Date will be the fraction, expressed as a
      percentage, equal to the average of the Delinquency Rates for each of the three
      (or one and two, in the case of the first and second Distribution Dates)
      immediately preceding months.

     

    S&P:
      Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. or its
      successor in interest.

     

    Sarbanes-Oxley
      Act:
      Means
      the Sarbanes-Oxley Act of 2002 and the rules and regulations of the Commission
      promulgated thereunder (including any interpretations thereof by the
      Commission’s staff).

     

    Sarbanes-Oxley
      Certification:
      A
      written certification signed by an officer of the Master Servicer that complies
      with (i) the Sarbanes-Oxley Act of 2002, as amended from time to time, and
      (ii)
      Exchange Act Rules 13a-14(d) and 15d-14(d), as in effect from time to time;
      provided that if, after the Closing Date (a) the Sarbanes-Oxley Act of 2002
      is
      amended, (b) the Rules referred to in clause (ii) are modified or superseded
      by
      any subsequent statement, rule or regulation of the Commission or any statement
      of a division thereof, or (c) any future releases, rules and regulations are
      published by the Commission from time to time pursuant to the Sarbanes-Oxley
      Act
      of 2002, which in any such case affects the form or substance of the required
      certification and results in the required certification being, in the reasonable
      judgment of the Master Servicer, materially more onerous than the form of the
      required certification as of the Closing Date, the Sarbanes-Oxley Certification
      shall be as agreed to by the Master Servicer, the Depositor and the Seller
      following a negotiation in good faith to determine how to comply with any such
      new requirements.

     

    Scheduled
      Payment:
      The
      scheduled monthly payment on a Mortgage Loan due on any Due Date allocable
      to
      principal and/or interest on such Mortgage Loan.

     

    Securities
      Act:
      The
      Securities Act of 1933, as amended, and the rules and regulations promulgated
      thereunder.

     

    Securities
      Administrator:
      As of
      the Closing Date, Wells Fargo Bank, N.A. and thereafter, its respective
      successors in interest that meet the qualifications of this Agreement. The
      Securities Administrator and the Master Servicer shall at all times be the
      same
      Person or Affiliates.

     

    Senior
      Enhancement Percentage”
With
      respect to any Distribution Date will be the fraction, expressed as a
      percentage, the numerator of which is the sum of the aggregate Certificate
      Principal Balance of the Mezzanine Certificates and the Overcollateralization
      Amount, in each case after giving effect to payments on such Distribution Date,
      and the denominator of which is the Aggregate Loan Balance for such Distribution
      Date.

     

    Senior
      Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the Certificate Principal Balances of the Senior
      Certificates, in each case, immediately prior to such Distribution Date exceed
      (y) the lesser of (A) the product of (i) 87.40% and (ii) the Aggregate Loan
      Balance for such Distribution Date and (B) the amount, if any, by which (i)
      the
      Aggregate Loan Balance for such Distribution Date exceeds (ii) 0.35% of the
      Aggregate Loan Balance as of the Cut-off Date.

     

    Senior
      Sequential Allocation Percentage:
      With
      respect to any Distribution Date, a fraction, expressed as a percentage, the
      numerator of which is the sum of the Certificate Principal Balances of the
      Class
      A-2, Class A-3A, Class A-3B, Class A-4A and Class A-4B Certificates and the
      denominator of which is the aggregate Certificate Principal Balance of all
      of
      the Senior Certificates, in each case immediately prior to such Distribution
      Date.

     

    Sequential
      Trigger Event:
      Is in
      effect on any Distribution Date if (i) before the 37th Distribution Date
      following the Closing Date, the aggregate amount of Realized Losses incurred
      during the period from the Cut-off Date through the last day of the related
      Due
      Period divided by the Aggregate Loan Balance as of the Cut-off Date exceeds
      0.60%, or (ii) on or after the 37th Distribution Date following the Closing
      Date, a Trigger Event is in effect.

     

    Servicer:
      Shall
      mean either GMAC or Wachovia or any successor thereto appointed hereunder or
      under the Servicing Agreement in connection with the servicing and
      administration of the related Mortgage Loans.

     

    Servicer
      Default:
      As
      defined in Section 8.01.

     

    Servicer
      Prepayment Charge Payment Amount:
      The
      amount payable by a Servicer in respect of any waived Prepayment Charges
      pursuant to Section 3.01 or pursuant to the Servicing
      Agreement.

     

    Servicer’s
      Assignee:
      As
      defined in Section 5.01(b)(ii)

     

    Service(s)(ing):
      Means,
      in accordance with Regulation AB, the act of servicing and administering the
      Mortgage Loans or any other assets of the Trust Fund by an entity that meets
      the
      definition of “servicer’ set forth in Item 1101 of Regulation AB and is subject
      to the disclosure requirements set forth in 1108 of Regulation AB. For
      clarification purposes, any uncapitalized occurrence of this term shall have
      the
      meaning commonly understood by participants in the residential mortgage-backed
      securitization market.

     

    Servicing
      Advances:
      All
      customary, reasonable and necessary “out of pocket” costs and expenses
      (including reasonable legal fees) incurred in the performance by a Servicer
      of
      its servicing obligations hereunder or under the Servicing Agreement, as
      applicable, including, but not limited to, the cost of (i) the preservation,
      restoration, inspection, valuation and protection of a Mortgaged Property,
      (ii)
      any enforcement or judicial proceedings, including foreclosures, and including
      any expenses incurred in relation to any such proceedings that result from
      the
      Mortgage Loan being registered in the MERS® System, (iii) the management and
      liquidation of any REO Property (including, without limitation, realtor’s
      commissions), (iv) compliance with any obligations under Section 3.07
      hereof to cause insurance to be maintained and (v) payment of
      taxes.

     

    Servicing
      Agreement:
      The
      Seller’s Purchase, Warranties and Servicing Agreement, dated as of March 1,
      2006, between the Sponsor and Wachovia (as modified pursuant to the Assignment
      Agreement).

     

    Servicing
      Criteria:
      Means
      the criteria set forth in paragraph (d) of Item 1122 of Regulation AB, as such
      may be amended from time to time.

     

    Servicing
      Fee:
      As to
      each Mortgage Loan and any Distribution Date, an amount equal to 1/12th of
      the
      Servicing Fee Rate multiplied by the Stated Principal Balance of such Mortgage
      Loan as of the last day of the related Due Period or, in the event of any
      payment of interest that accompanies a Principal Prepayment in full during
      the
      related Due Period made by the Mortgagor immediately prior to such prepayment,
      interest at the Servicing Fee Rate on the same Stated Principal Balance of
      such
      Mortgage Loan used to calculate the payment of interest on such Mortgage
      Loan.

     

    Servicing
      Fee Rate:
      The fee
      rate for each Mortgage Loan as set forth in the Mortgage Loan
      Schedule.

     

    Servicing
      Function Participant:
      Means
      any Subservicer or Subcontractor of each Servicer, the Master Servicer and
      the
      Securities Administrator, the Custodian, respectively. For purposes of Section
      5.18(d), such term also shall include each Servicer, the Master Servicer, the
      Securities Administrator and the Custodian, without regard to any threshold
      reference therein.

     

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

     

    Six-Month
      LIBOR:
      The per
      annum rate equal to the average of interbank offered rates for Six-Month U.S.
      dollar-denominated deposits in the London market based on quotations of major
      banks as published in The Wall Street Journal and most recently available as
      of
      the time specified in the related Mortgage Note.

     

    Sponsor:
      Nomura
      Credit & Capital, Inc., a Delaware corporation, and its successors and
      assigns, in its capacity as seller of the Mortgage Loans to the
      Depositor.

     

    Startup
      Day:
      The
      Startup Day for each REMIC formed hereunder shall be the Closing
      Date.

     

    Stated
      Principal Balance:
      With
      respect to any Mortgage Loan or related REO Property and any Distribution Date,
      the Cut-off Date Principal Balance thereof minus the sum of (i) the principal
      portion of the Scheduled Payments due with respect to such Mortgage Loan during
      each Due Period ending prior to such Distribution Date (and irrespective of
      any
      delinquency in their payment), (ii) all Principal Prepayments with respect
      to
      such Mortgage Loan received prior to or during the related Prepayment Period,
      and all Liquidation Proceeds to the extent applied by the related Servicer
      as
      recoveries of principal in accordance with Section 3.09 of this Agreement
      or pursuant to the Servicing Agreement with respect to such Mortgage Loan,
      that
      were received by the Servicer as of the close of business on the last day of
      the
      Prepayment Period related to such Distribution Date and (iii) any Realized
      Losses on such Mortgage Loan incurred during the related Prepayment Period.
      The
      Stated Principal Balance of a Liquidated Loan equals zero.

     

    Stepdown
      Date:
      The
      earlier to occur of (i) the Distribution Date on which the aggregate Certificate
      Principal Balance of the Senior Certificates has been reduced to zero and (ii)
      the later to occur of (x) the Distribution Date in October 2009 and (y) the
      first Distribution Date on which the Senior Enhancement Percentage (calculated
      for this purpose only after taking into account distributions of principal
      on
      the Mortgage Loans, but prior to any distributions to the holders of the Senior
      Certificates and Mezzanine Certificates then entitled to distributions of
      principal on such Distribution Date) is greater than or equal to approximately
      12.60%.

     

    Subcontractor:
      Shall
      mean any vendor, subcontractor or other Person who is not responsible for the
      overall servicing of Mortgage Loans but performs one or more discrete functions
      identified in Item 1122(d) of Regulation AB with respect to Mortgage Loans
      under
      the direction or authority of a Servicer (or a Subservicer of a Servicer),
      the
      Master Servicer, the Trustee, the Custodian or the Securities Administrator
      and
      each subcontractor is determined by the Person engaging the subcontractor to
      be
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB.

     

    Subsequent
      Recoveries:
      Shall
      mean all amounts in respect of principal received by the related Servicer (net
      of reimbursable expenses) on a Mortgage Loan for which a Realized Loss was
      previously incurred after the liquidation or disposition of such Mortgage
      Loan.

     

    Subservicer:
      Shall
      mean any Person who is identified in Item 1122(d) of Regulation AB that services
      the related Mortgage Loans on behalf of a Servicer or is engaged by the Master
      Servicer, the Securities Administrator or the Custodian and is responsible
      for
      the performance (whether directly or through subservicers or Subcontractors)
      of
      a substantial portion of the material servicing functions required to be
      performed by such Person under this Agreement, the Servicing Agreement or any
      subservicing agreement.

     

    Subservicing
      Agreement:
      Any
      agreement entered into between a Servicer and a Subservicer with respect to
      the
      subservicing of any Mortgage Loan subject to Section 3.03 of this Agreement
      or
      the Servicing Agreement by such Subservicer.

     

    Substitution
      Adjustment Amount:
      The
      meaning ascribed to such term pursuant to Section 2.03(d).

     

    Successor
      Servicer:
      Any
      successor to a Servicer appointed pursuant to Section 8.02 of this
      Agreement or pursuant to the Servicing Agreement after the occurrence of a
      Servicer Default or upon the resignation of a Servicer pursuant to this
      Agreement or pursuant to the Servicing Agreement.

     

    Supplemental
      Interest Trust:
      The
      corpus of a trust created pursuant to Section 5.15 of this Agreement and
      designated as the “Supplemental Interest Trust,” consisting of the Swap
      Agreement, REMIC IV Regular Interest Swap-IO and
      the
      right to receive payments in respect of the Class IO Distribution Amount. For
      the avoidance of doubt, the Supplemental Interest Trust does not constitute
      a
      part of the Trust Fund.

     

    Swap
      Agreement:
      The
      interest rate swap agreement, dated September 29, 2006, between HSBC Bank USA,
      National Association, as trustee on behalf of the Supplemental Interest Trust,
      and the Swap Provider, which agreement provides for Net Swap Trust Payments
      and
      Swap Termination Payments to be paid, as provided therein, together with any
      schedules, confirmations or other agreements relating thereto, attached hereto
      as Exhibit
      P.

     

    Swap
      LIBOR:
      LIBOR
      as determined pursuant to the Swap Agreement.

     

    Swap
      Provider:
      The
      swap provider under the Swap Agreement either (a) entitled to receive payments
      from the Supplemental Interest Trust or (b) required to make payments to the
      Supplemental Interest Trust, in either case pursuant to the terms of the Swap
      Agreement, and any successor in interest or assign. Initially, the Swap Provider
      shall be ABN AMRO Bank N.V.

     

    Swap
      Provider Trigger Event:
      A Swap
      Provider Trigger Event shall have occurred if any of an Event of Default (under
      the Swap Agreement) with respect to which the Swap Provider is a Defaulting
      Party, a Termination Event (under the Swap Agreement) with respect to which
      the
      Swap Provider is the sole Affected Party or an Additional Termination Event
      (under the Swap Agreement) with respect to which the Swap Provider is the sole
      Affected Party has occurred.

     

    Swap
      Termination Payment:
      Upon
      the designation of an “Early Termination Date” as defined in the Swap Agreement,
      the payment to be made by the Supplemental Interest Trust to the Swap Provider,
      or by the Swap Provider to the Supplemental Interest Trust, as applicable,
      pursuant to the terms of the Swap Agreement.

     

    Targeted
      Overcollateralization Amount:
      With
      respect to any Distribution Date prior to the Stepdown Date, approximately
      0.80%
      of the Aggregate Loan Balance as of the Cut-off Date; with respect to any
      Distribution Date on or after the Stepdown Date and with respect to which a
      Trigger Event is not in effect, the greater of (a) 1.60% of the Aggregate Loan
      Balance for such Distribution Date, or (b) 0.35% of the Aggregate Loan Balance
      as of the Cut-off Date; with respect to any Distribution Date on or after the
      Stepdown Date with respect to which a Trigger Event is in effect, the Targeted
      Overcollateralization Amount for such Distribution Date will be equal to the
      Targeted Overcollateralization Amount for the Distribution Date immediately
      preceding such Distribution Date. Notwithstanding the foregoing, on and after
      any Distribution Date following the reduction of the aggregate Certificate
      Principal Balance of the Senior Certificates and Mezzanine Certificates to
      zero,
      the Targeted Overcollateralization Amount shall be zero.

     

    Tax
      Matters Person:
      The
      person designated as “tax matters person” in the manner provided under Treasury
      regulation § 1.860F-4(d) and temporary Treasury regulation
§ 301.6231(a)(7)-1T. The holder of the greatest Percentage Interest in a
      Class of Residual Certificates shall be the Tax Matters Person for the related
      REMIC. The Securities Administrator, or any successor thereto or assignee
      thereof shall serve as tax administrator hereunder and as agent for the related
      Tax Matters Person.

     

    Termination
      Price:
      The
      price, calculated as set forth in Section 10.01, to be paid in connection
      with the purchase of the Mortgage Loans and REO Properties pursuant to
      Section 10.01.

     

    Transaction
      Party:
      Shall
      mean the Depositor, the Sponsor, the Trustee, the Servicers, the Master
      Servicer, the Securities Administrator, the Custodian and the Swap
      Provider.

     

    Transfer
      Affidavit:
      As
      defined in Section 6.02(c).

     

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

     

    Trigger
      Event:
      With
      respect to any Distribution Date, a Trigger Event is in effect if either (i)
      the
      Rolling Three Month Delinquency Rate as of the last day of the related Due
      Period equals or exceeds approximately 40.00% of the Senior Enhancement
      Percentage for such Distribution Date or (ii) the cumulative Realized Losses
      as
      a percentage of the original Aggregate Loan Balance on the Closing Date for
      such
      Distribution Date is greater than the applicable percentages set forth below
      with respect to such Distribution Date.

     

    
      	
              Distribution
                Date

            	
              Percentage

            
	
              October
                2008 to September 2009

            	
              0.25%*

            
	
              October
                2009 to September 2010

            	
              0.60%*

            
	
              October
                2010 to September 2011

            	
              1.05%*

            
	
              October
                2011 to September 2012

            	
              1.50%*

            
	
              October
                2012 and thereafter

            	
              1.80%

            

    

    

    *The
      cumulative loss percentages set forth above are applicable to the first
      Distribution Date in the corresponding range of Distribution Dates. The
      cumulative loss percentage for each succeeding Distribution Date in a range
      increases incrementally by 1/12 of the positive difference between the
      percentage applicable to the first Distribution Date in that range and the
      percentage applicable to the first Distribution Date in the succeeding
      range.

     

    Trust
      Fund:
      Collectively, the assets of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V,
      REMIC VI and the Basis Risk Shortfall Reserve Fund. For the avoidance of doubt,
      the Trust Fund does not include the Supplemental Interest Trust.

     

    Trustee:
      HSBC
      Bank USA, National Association, a national banking association, not in its
      individual capacity, but solely in its capacity as trustee for the benefit
      of
      the Certificateholders under this Agreement, and any successor thereto, and
      any
      corporation or national banking association resulting from or surviving any
      consolidation or merger to which it or its successors may be a party and any
      successor trustee as may from time to time be serving as successor trustee
      hereunder.

     

    Uncertificated
      Accrued Interest:
      With
      respect to each Uncertificated REMIC Regular Interest on each Distribution
      Date,
      an amount equal to one month’s interest at the related Uncertificated
      Pass-Through Rate on the Uncertificated Principal Balance of such REMIC Regular
      Interest. In each case, Uncertificated Accrued Interest will be reduced by
      any
      Prepayment Interest Shortfalls and shortfalls resulting from application of
      the
      Relief Act (allocated to such REMIC Regular Interests as set forth in Sections
      1.02, 5.07, 5.08 and 5.09).

     

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

     

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

     

    
      	
              Distribution
                Date

            	
              REMIC
                IIIA Regular Interests

            
	
              1

            	
              I-1-A
                through I-60-A 

            
	
              2

            	
              I-2-A
                through I-60-A 

            
	
              3

            	
              I-3-A
                through I-60-A 

            
	
              4

            	
              I-4-A
                through I-60-A 

            
	
              5

            	
              I-5-A
                through I-60-A 

            
	
              6

            	
              I-6-A
                through I-60-A 

            
	
              7

            	
              I-7-A
                through I-60-A 

            
	
              8

            	
              I-8-A
                through I-60-A 

            
	
              9

            	
              I-9-A
                through I-60-A 

            
	
              10

            	
              I-10-A
                through I-60-A 

            
	
              11

            	
              I-11-A
                through I-60-A 

            
	
              12

            	
              I-12-A
                through I-60-A 

            
	
              13

            	
              I-13-A
                through I-60-A 

            
	
              14

            	
              I-14-A
                through I-60-A 

            
	
              15

            	
              I-15-A
                through I-60-A 

            
	
              16

            	
              I-16-A
                through I-60-A 

            
	
              17

            	
              I-17-A
                through I-60-A 

            
	
              18

            	
              I-18-A
                through I-60-A 

            
	
              19

            	
              I-19-A
                through I-60-A 

            
	
              20

            	
              I-20-A
                through I-60-A 

            
	
              21

            	
              I-21-A
                through I-60-A 

            
	
              22

            	
              I-22-A
                through I-60-A 

            
	
              23

            	
              I-23-A
                through I-60-A 

            
	
              24

            	
              I-24-A
                through I-60-A 

            
	
              25

            	
              I-25-A
                through I-60-A 

            
	
              26

            	
              I-26-A
                through I-60-A 

            
	
              27

            	
              I-27-A
                through I-60-A 

            
	
              28

            	
              I-28-A
                through I-60-A 

            
	
              29

            	
              I-29-A
                through I-60-A 

            
	
              30

            	
              I-30-A
                through I-60-A 

            
	
              31

            	
              I-31-A
                through I-60-A 

            
	
              32

            	
              I-32-A
                through I-60-A 

            
	
              33

            	
              I-33-A
                through I-60-A 

            
	
              34

            	
              I-34-A
                through I-60-A 

            
	
              35

            	
              I-35-A
                through I-60-A 

            
	
              36
                

            	
              I-36-A
                through I-60-A 

            
	
              37

            	
              I-37-A
                through I-60-A 

            
	
              38

            	
              I-38-A
                through I-60-A 

            
	
              39

            	
              I-39-A
                through I-60-A 

            
	
              40

            	
              I-40-A
                through I-60-A 

            
	
              41

            	
              I-41-A
                through I-60-A 

            
	
              42

            	
              I-42-A
                through I-60-A 

            
	
              43

            	
              I-43-A
                through I-60-A 

            
	
              44

            	
              I-44-A
                through I-60-A 

            
	
              45

            	
              I-45-A
                through I-60-A 

            
	
              46

            	
              I-46-A
                through I-60-A 

            
	
              47

            	
              I-47-A
                through I-60-A 

            
	
              48

            	
              I-48-A
                through I-60-A 

            
	
              49

            	
              I-49-A
                through I-60-A 

            
	
              50

            	
              I-50-A
                through I-60-A 

            
	
              51

            	
              I-51-A
                through I-60-A 

            
	
              52

            	
              I-52-A
                through I-60-A 

            
	
              53

            	
              I-53-A
                through I-60-A 

            
	
              54

            	
              I-54-A
                through I-60-A 

            
	
              55

            	
              I-55-A
                through I-60-A 

            
	
              56

            	
              I-56-A
                through I-60-A 

            
	
              57

            	
              I-57-A
                through I-60-A 

            
	
              58

            	
              I-58-A
                through I-60-A 

            
	
              59

            	
              I-59-A
                and I-60-A 

            
	
              60
                

            	
              I-60-A

            
	
              thereafter

            	
              $0.00

            

    

    

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

     

    Uncertificated
      Principal Balance:
      With
      respect to each REMIC Regular Interest, the principal amount of such REMIC
      Regular Interest outstanding as of any date of determination. As of the Closing
      Date, the Uncertificated Principal Balance of each REMIC Regular Interest shall
      equal the amount set forth in the Preliminary Statement hereto as its initial
      Uncertificated Principal Balance. On each Distribution Date, the Uncertificated
      Principal Balance of each REMIC Regular Interest shall be reduced by all
      distributions of principal made on such REMIC Regular Interest on such
      Distribution Date pursuant to Section 5.07 and, if and to the extent necessary
      and appropriate, shall be further reduced on such Distribution Date by Realized
      Losses as provided in Section 5.07. The Uncertificated Principal Balance of
      each
      REMIC Regular Interest shall never be less than zero.

     

    Uncertificated
      REMIC I Pass-Through Rate:
      With
      respect to REMIC I Regular Interest I, a per annum rate equal to the weighted
      average Net Mortgage Rate of the Mortgage Loans. With respect to each REMIC
      I
      Regular Interest ending with the designation “A”, a per annum rate equal to the
      weighted average Net Mortgage Rate of the Mortgage Loans multiplied by 2,
      subject to a maximum rate of 10.58%. With respect to each REMIC I Regular
      Interest ending with the designation “B”, the greater of (x) a per annum rate
      equal to the excess, if any, of (i) 2 multiplied by the weighted average Net
      Mortgage Rate of the Mortgage Loans over (ii) 10.58% and (y) 0.00%.

     

    Uncertificated
      REMIC II Pass-Through Rate:
      With
      respect to REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-A1A,
      REMIC II Regular Interest LT-A1B, REMIC II Regular Interest LT-A2, REMIC II
      Regular Interest LT-A3A, REMIC II Regular Interest LT-A3B, REMIC II Regular
      Interest LT-A4A, REMIC II Regular Interest LT-A4B, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5 and REMIC II Regular
      Interest LT-ZZ, a
      per
      annum rate (but not less than zero) equal to the weighted average of (w) with
      respect to REMIC I Regular Interest I, the Uncertificated REMIC I Pass-Through
      Rate for such REMIC I Regular Interest for each such Distribution Date, (x)
      with
      respect to REMIC I Regular Interests ending with the designation “B”, the
      weighted average of the Uncertificated REMIC I Pass-Through Rate for such REMIC
      I Regular Interests, weighted on the basis of the Uncertificated Principal
      Balance of such REMIC I Regular Interests for each such Distribution Date and
      (y) with respect to REMIC I Regular Interests ending with the designation “A”,
      for each Distribution Date listed below, the weighted average of the rates
      listed below for each such REMIC I Regular Interest listed below, weighted
      on
      the basis of the Uncertificated Principal Balance of each such REMIC I Regular
      Interest for each such Distribution Date:

     

    
      	
              Distribution
                Date

            	
              REMIC
                I Regular Interest

            	
              Rate

            
	
              1

            	
              I-1-A
                through I-60-A

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

            
	 	 	 
	
              2

            	
              I-2-A
                through I-60-A

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

            
	 	
              I-1-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              3

            	
              I-3-A
                through I-60-A

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

            
	 	
              I-1-A
                and I-2-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              4

            	
              I-4-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-3-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              5

            	
              I-5-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-4-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              6

            	
              I-6-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-5-A

            	
              Uncertificated
                REMIC IIIA Pass-Through Rate

            
	
              7

            	
              I-7-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-6-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              8

            	
              I-8-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-7-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              9

            	
              I-9-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-8-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              10

            	
              I-10-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-9-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              11

            	
              I-11-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-10-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              12

            	
              I-12-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-11-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              13

            	
              I-13-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-12-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              14

            	
              I-14-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-13-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              15

            	
              I-15-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-14-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              16

            	
              I-16-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-15-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              17

            	
              I-17-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-16-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              18

            	
              I-18-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-17-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              19

            	
              I-19-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-18-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              20

            	
              I-20-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-19-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              21

            	
              I-21-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-20-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              22

            	
              I-22-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-21-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              23

            	
              I-23-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-22-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              24

            	
              I-24-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-23-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              25

            	
              I-25-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-24-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              26

            	
              I-26-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-25-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              27

            	
              I-27-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-26-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              28

            	
              I-28-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-27-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              29

            	
              I-29-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-28-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              30

            	
              I-30-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-29-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              31

            	
              I-31-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-30-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              32

            	
              I-32-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-31-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              33

            	
              I-33-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-32-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              34

            	
              I-34-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-33-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              35

            	
              I-35-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-34-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              36

            	
              I-36-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-35-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              37

            	
              I-37-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-36-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              38

            	
              I-38-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-37-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              39

            	
              I-39-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-38-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              40

            	
              I-40-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-39-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              41

            	
              I-41-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-40-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              42

            	
              I-42-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-41-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              43

            	
              I-43-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-42-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              44

            	
              I-44-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-43-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              45

            	
              I-45-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-44-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              46

            	
              I-46-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-45-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              47

            	
              I-47-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-46-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              48

            	
              I-48-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-47-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              49

            	
              I-49-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-48-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              50

            	
              I-50-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-49-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              51

            	
              I-51-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-50-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              52

            	
              I-52-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-51-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              53

            	
              I-53-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-52-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              54

            	
              I-54-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-53-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              55

            	
              I-55-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-54-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              56

            	
              I-56-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-55-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              57

            	
              I-57-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-56-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              58

            	
              I-58-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-57-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              59

            	
              I-59-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-58-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              60

            	
              I-60-A
                

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

            
	 	
              I-1-A
                through I-59-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            
	
              thereafter

            	
              I-1-A
                through I-60-A

            	
              Uncertificated
                REMIC I Pass-Through Rate

            

    

    

    With
      respect to REMIC I Regular Interest LT-IO, the excess of (i) the Uncertificated
      REMIC I Pass-Through Rates for REMIC I Regular Interests ending with the
      designation “A”, over (ii) 2 multiplied by Swap LIBOR.

     

    Uncertificated
      REMIC Regular Interest:
      The
      REMIC I Regular Interests, REMIC II Regular Interests, Class X Interest, Class
      P
      Interest, Class IO Interest and REMIC VI Regular Interests.

     

    Voting
      Rights:
      The
      portion of the voting rights of all the Certificates that is allocated to any
      Certificate for purposes of the voting provisions hereunder. Voting Rights
      shall
      be allocated (i) 98% to the Certificates (other than the Class X, Class P and
      the Residual Certificates) and (ii) 1% to each of the Class X Certificates
      and
      Class P Certificates. Voting rights will be allocated among the Certificates
      of
      each such Class in accordance with their respective Percentage Interests. The
      Residual Certificates will not be allocated any voting rights.

     

    Wachovia:
      Wachovia Mortgage Corporation, and any successor thereto appointed under the
      Servicing Agreement in connection with the servicing and administration of
      the
      Wachovia Mortgage Loans.

     

    Wachovia
      Mortgage Loans:
      Those
      Mortgage Loans serviced by Wachovia pursuant to the terms and provisions of
      the
      Servicing Agreement and identified as such on the Mortgage Loan
      Schedule.

     

    Section
      1.02  Allocation
      of Certain Interest Shortfalls.

     

    For
      purposes of calculating the amount of the Interest Remittance Amount for the
      Mortgage Loans for any Distribution Date, (1) the aggregate amount of any Net
      Interest Shortfalls in respect of the Mortgage Loans for any Distribution Date
      shall reduce the Interest Remittance Amount on a pro
      rata
      basis
      based on, and to the extent of, one month’s interest at the then applicable
      respective Pass-Through Rate on the respective Certificate Principal Balance
      of
      each class of Senior Certificates and Mezzanine Certificates and (2) the
      aggregate amount of any Realized Losses allocated to the Senior Certificates
      and
      Mezzanine Certificates and Basis Risk Shortfalls allocated to the Senior
      Certificates and Mezzanine Certificates for any Distribution Date shall be
      allocated to the Class X Certificates based on, and to the extent of, one
      month’s interest at the then applicable respective Pass-Through Rate on the
      Certificate Principal Balance thereof on any Distribution Date.

     

    For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC I Regular Interests for any Distribution Date the aggregate amount of
      any
      Net Interest Shortfalls for any Distribution Date shall be allocated first,
      to
      REMIC I Regular Interest I and to the REMIC I Regular Interests ending with
      the
      designation “B”, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest, and then, to REMIC
      I
      Regular Interests ending with the designation “A”, pro rata based on, and to the
      extent of, one month’s interest at the then applicable respective Uncertificated
      REMIC I Pass-Through Rate on the respective Uncertificated Principal Balances
      of
      each such REMIC I Regular Interest.

     

    For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC II Regular Interests for any Distribution Date: 

     

    The
      aggregate amount of any Net Interest Shortfalls incurred in respect of the
      Mortgage Loans for any Distribution Date shall be allocated among
      REMIC II Regular Interest L-AA, REMIC II Regular Interest LT-A1A, REMIC II
      Regular Interest LT-A1B, REMIC II Regular Interest LT-A2, REMIC II Regular
      Interest LT-A3A, REMIC II Regular Interest LT-A3B, REMIC II Regular Interest
      LT-A4A, REMIC II Regular Interest LT-A4B, REMIC II Regular Interest LT-M1,
      REMIC
      II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular
      Interest LT-M4, REMIC II Regular Interest LT-M5 and REMIC II Regular Interest
      LT-ZZ, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC II Pass-Through Rate on the respective Uncertificated
      Principal Balance of each such REMIC II Regular Interest.

     

    Any
      Net
      Interest Shortfalls allocated to the Class X Certificates shall be deemed to
      be
      allocated to the Class X Interest. 

     

    ARTICLE
      II

     

    CONVEYANCE
      OF TRUST FUND

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      2.01  Conveyance
      of Trust Fund.

     

    The
      Sponsor hereby sells, transfers, assigns, sets over and otherwise conveys to
      the
      Depositor, without recourse, all the right, title and interest of the Sponsor
      in
      and to the assets in the Trust Fund.

     

    The
      Sponsor has entered into this Agreement in consideration for the purchase of
      the
      Mortgage Loans by the Depositor and has agreed to take the actions specified
      herein.

     

    The
      Depositor, concurrently with the execution and delivery hereof, hereby sells,
      transfers, assigns, sets over and otherwise conveys to the Trustee for the
      use
      and benefit of the Certificateholders, without recourse, all the right, title
      and interest of the Depositor in and to the Trust Fund.

     

    Concurrently
      with the execution and delivery of this Agreement, the Depositor does hereby
      assign to the Trustee all of its rights and interest under the Mortgage Loan
      Purchase Agreement, to the extent of the Mortgage Loans sold under the Mortgage
      Loan Purchase Agreement. The Trustee hereby accepts such assignment, and shall
      be entitled to exercise all rights of the Depositor under the Mortgage Loan
      Purchase Agreement as if, for such purpose, it were the Depositor. The foregoing
      sale, transfer, assignment, set-over, deposit and conveyance does not and is
      not
      intended to result in creation or assumption by the Trustee of any obligation
      of
      the Depositor, the Sponsor or any other Person in connection with the Mortgage
      Loans or any other agreement or instrument relating thereto except as
      specifically set forth herein.

     

    In
      connection with such sale, the Depositor does hereby deliver to, and deposit
      with the Custodian pursuant to the Custodial Agreement the documents with
      respect to each Mortgage Loan as described under Section 2 of the Custodial
      Agreement (the “Mortgage Loan Documents”). In connection with such delivery and
      as further described in the Custodial Agreement, the Custodian will be required
      to review such Mortgage Loan Documents and deliver to the Trustee, the
      Depositor, the Servicers and the Sponsor certifications (in the forms attached
      to the Custodial Agreement) with respect to such review with exceptions noted
      thereon. In addition, under the Custodial Agreement the Depositor will be
      required to cure certain defects with respect to the Mortgage Loan Documents
      for
      the Mortgage Loans after the delivery thereof by the Depositor to the Custodian
      as more particularly set forth therein.

     

    Notwithstanding
      anything to the contrary contained herein, the parties hereto acknowledge that
      the functions of the Trustee with respect to the custody, acceptance, inspection
      and release of the Mortgage Files and preparation and delivery of the
      certifications shall be performed by the Custodian pursuant to the terms and
      conditions of the Custodial Agreement.

     

    The
      Depositor shall deliver or cause to be delivered to the related Servicer copies
      of all trailing documents required to be included in the related Mortgage File
      at the same time the originals or certified copies thereof are delivered to
      the
      Custodian, such documents including the mortgagee policy of title insurance
      and
      any Mortgage Loan Documents upon return from the recording office. No Servicer
      shall be responsible for any custodial fees or other costs incurred in obtaining
      such documents and the Depositor shall cause each Servicer to be reimbursed
      for
      any such costs such Servicer may incur in connection with performing its
      obligations under this Agreement or the Servicing Agreement, as
      applicable.

     

    The
      Mortgage Loans permitted by the terms of this Agreement to be included in the
      Trust Fund are limited to (i) Mortgage Loans (which the Depositor acquired
      pursuant to the Mortgage Loan Purchase Agreement, which contains, among other
      representations and warranties, a representation and warranty of the Sponsor
      that no Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
      Home Ownership Act effective November 27, 2003, as defined in the New Mexico
      Home Loan Protection Act effective January 1, 2004) as defined in the
      Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
      (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
      Act,
      effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9) and
      (ii) Qualified Substitute Mortgage Loans (which, by definition as set forth
      herein and referred to in the Mortgage Loan Purchase Agreement, are required
      to
      conform to, among other representations and warranties, the representation
      and
      warranty of the Sponsor that no Qualified Substitute Mortgage Loan is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective
      November 27, 2003, as defined in the New Mexico Home Loan Protection Act
      effective January 1, 2004, as defined in the Massachusetts Predatory Home Loan
      Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as
      defined in the Indiana Home Loan Practices Act, effective January 1, 2005 (Ind.
      Code Ann. Sections 24-9-1 through 24-9-9). The Depositor and the Trustee on
      behalf of the Trust Fund understand and agree that it is not intended that
      any
      mortgage loan be included in the Trust Fund that is a “High-Cost Home Loan” as
      defined in the New Jersey Home Ownership Act effective November 27, 2003, as
      defined in the New Mexico Home Loan Protection Act effective January 1, 2004,
      as
      defined in the Massachusetts Predatory Home Loan Practices Act, effective
      November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home
      Loan Practices Act, effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1
      through 24-9-9).

     

    Section
      2.02  Acceptance
      of the Mortgage Loans.

     

    (a)  Based
      on
      the initial trust receipt received by it from the Custodian pursuant to the
      Custodial Agreement, the Trustee acknowledges receipt, subject to the provisions
      of Section 2.01 hereof and Section 2 of the Custodial Agreement, of
      the Mortgage Loan Documents and all other assets included in the definition
      of
“REMIC I” under clauses (i), (ii) (iii), (v) and (vi) (to the extent of amounts
      deposited into the Distribution Account) and declares that it holds (or the
      Custodian on its behalf holds) and will hold such documents and the other
      documents delivered to it constituting a Mortgage Loan Document, and that it
      holds (or the Custodian on its behalf holds) or will hold all such assets and
      such other assets included in the definition of “REMIC I” in trust for the
      exclusive use and benefit of all present and future
      Certificateholders.

     

    (b)  In
      conducting the review of the Mortgage Files in accordance with the Custodial
      Agreement, the Custodian on the Trustee’s behalf will ascertain whether all
      required documents have been executed and received and whether those documents
      relate to the Mortgage Loans identified in Exhibit B to this Agreement, as
      supplemented. If the Custodian finds any document constituting part of the
      Mortgage File not to have been executed or received, or to be unrelated to
      the
      Mortgage Loans identified in Exhibit B, the Sponsor shall correct or cure any
      such defect or, if prior to the end of the second anniversary of the Closing
      Date, the Sponsor may substitute for the related Mortgage Loan a Replacement
      Mortgage Loan, which substitution shall be accomplished in the manner and
      subject to the conditions set forth in Section 2.03 or shall deliver to the
      Trustee an Opinion of Counsel to the effect that such defect does not materially
      or adversely affect the interests of the Certificateholders in such Mortgage
      Loan within sixty (60) days from the date of notice from the Custodian of the
      defect and if the Sponsor fails to correct or cure the defect or deliver such
      opinion within such period, the Sponsor will, subject to Section 2.03,
      within ninety (90) days from the notification of the Custodian purchase such
      Mortgage Loan at the Purchase Price; provided, however, that if such defect
      relates solely to the inability of the Sponsor to deliver the Mortgage,
      assignment thereof to the Custodian, or intervening assignments thereof with
      evidence of recording thereon because such documents have been submitted for
      recording and have not been returned by the applicable jurisdiction, the Sponsor
      shall not be required to purchase such Mortgage Loan if the Sponsor delivers
      such documents promptly upon receipt, but in no event later than 360 days after
      the Closing Date.

     

    (c)  No
      later
      than 180 days after the Closing Date, the Custodian on the Trustee’s behalf will
      review, for the benefit of the Certificateholders, the Mortgage Files and will
      execute and deliver or cause to be executed and delivered to the Sponsor and
      the
      Trustee, a final trust receipt substantially in the form annexed to the
      Custodial Agreement. In conducting such review, the Custodian on the Trustee’s
      behalf and in accordance with the terms of the Custodial Agreement will
      ascertain whether each document required to be recorded has been returned from
      the recording office with evidence of recording thereon and the Custodian on
      the
      Trustee’s behalf has received either an original or a copy thereof, as required
      in the Custodial Agreement. If the Custodian finds that any document with
      respect to a Mortgage Loan has not been received, or is unrelated to the
      Mortgage Loans identified in Exhibit B or appears to be defective on its face,
      the Custodian shall note such defect in the exception report attached the final
      trust receipt issued pursuant to the Custodial Agreement and the Sponsor shall
      correct or cure any such defect or, if prior to the end of the second
      anniversary of the Closing Date, the Sponsor may substitute for the related
      Mortgage Loan a Replacement Mortgage Loan, which substitution shall be
      accomplished in the manner and subject to the conditions set forth in
      Section 2.03 or shall deliver to the Trustee an Opinion of Counsel to the
      effect that such defect does not materially or adversely affect the interests
      of
      Certificateholders in such Mortgage Loan within sixty (60) days from the date
      of
      notice from the Trustee of the defect and if the Sponsor is unable within such
      period to correct or cure such defect, or to substitute the related Mortgage
      Loan with a Replacement Mortgage Loan or to deliver such opinion, the Sponsor
      shall, subject to Section 2.03, within ninety (90) days from the
      notification of the Trustee, purchase such Mortgage Loan at the Purchase Price;
      provided, however, that if such defect relates solely to the inability of the
      Sponsor to deliver the Mortgage, assignment thereof to the Trustee or
      intervening assignments thereof with evidence of recording thereon, because
      such
      documents have not been returned by the applicable jurisdiction, the Sponsor
      shall not be required to purchase such Mortgage Loan, if the Sponsor delivers
      such documents promptly upon receipt, but in no event later than 360 days after
      the Closing Date.

     

    (d)  In
      the
      event that a Mortgage Loan is purchased by the Sponsor in accordance with
      subsections 2.02(a) or (b) above or Section 2.03, the Sponsor shall remit
      the applicable Purchase Price to the Servicer for deposit in the Custodial
      Account and shall provide written notice to the Securities Administrator
      detailing the components of the Purchase Price, signed by an authorized officer.
      Upon deposit of the Purchase Price in the Custodial Account and upon receipt
      of
      a request for release (in the form attached to the Custodial Agreement) with
      respect to such Mortgage Loan, the Custodian, on behalf of the Trustee, will
      release to the Sponsor the related Mortgage File and the Trustee shall execute
      and deliver all instruments of transfer or assignment, without recourse,
      furnished to it by the Sponsor, as are necessary to vest in the Sponsor title
      to
      and rights under the Mortgage Loan. Such purchase shall be deemed to have
      occurred on the date on which the deposit into the Custodial Account was made.
      The Trustee shall promptly notify the Rating Agencies of such repurchase. The
      obligation of the Sponsor to cure, repurchase or substitute for any Mortgage
      Loan as to which a defect in a constituent document exists shall be the sole
      remedies respecting such defect available to the Certificateholders or to the
      Trustee on their behalf. The Sponsor shall promptly reimburse the Trustee for
      any expenses incurred by the Trustee in respect of enforcing the remedies for
      such breach.

     

    (e)  The
      Sponsor shall deliver to the Custodian the Mortgage Note and other documents
      constituting the Mortgage File with respect to any Replacement Mortgage Loan,
      which the Custodian will review as provided in the Custodial Agreement,
      provided, that the Closing Date referred to therein shall instead be the date
      of
      delivery of the Mortgage File with respect to each Replacement Mortgage
      Loan.

     

    Section
      2.03  Representations,
      Warranties and Covenants of GMACM and the Sponsor.

     

    (a)  GMACM
      hereby represents and warrants to, and covenants with, the Sponsor, the
      Depositor, the Master Servicer, the Securities Administrator and the Trustee
      as
      follows, as of the Closing Date:

     

    (i)  It
      is
      duly organized and is validly existing and in good standing under the laws
      of
      the Commonwealth of Pennsylvania and is duly authorized and qualified to
      transact any and all business contemplated by this Agreement to be conducted
      by
      it in any state in which a Mortgaged Property related to a GMACM Mortgage Loan
      is located or is otherwise not required under applicable law to effect such
      qualification and, in any event, is in compliance with the doing business laws
      of any such state, to the extent necessary to ensure its ability to service
      the
      GMACM Mortgage Loans in accordance with the terms of this Agreement and to
      perform any of its other obligations under this Agreement in accordance with
      the
      terms hereof.

     

    (ii)  It
      has
      the full corporate power and authority to service each GMACM 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 its part the execution, delivery and performance
      of this Agreement; and this Agreement, assuming the due authorization, execution
      and delivery hereof by the other parties hereto, constitutes its legal, valid
      and binding obligation, enforceable against it in accordance with its terms,
      except that (a) the enforceability hereof may be limited by bankruptcy,
      insolvency, moratorium, receivership and other similar laws relating to
      creditors’ rights generally and (b) the remedy of specific performance and
      injunctive and other forms of equitable relief may be subject to equitable
      defenses and to the discretion of the court before which any proceeding therefor
      may be brought and further subject to public policy with respect to indemnity
      and contribution under applicable securities law.

     

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

     

    (iv)  It
      is an
      approved servicer of conventional mortgage loans for Fannie Mae or Freddie
      Mac
      and is a mortgagee approved by the Secretary of Housing and Urban Development
      pursuant to sections 203 and 211 of the National Housing Act.

     

    (v)  No
      litigation is pending or, to the best of its knowledge, threatened in writing,
      against it that would materially and adversely affect the execution, delivery
      or
      enforceability of this Agreement or its ability to service the GMACM Mortgage
      Loans or to perform any of its other obligations under this Agreement in
      accordance with the terms hereof.

     

    (vi)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for its execution, delivery and performance of, or compliance
      with, this Agreement or the consummation of the transactions contemplated
      hereby, or if any such consent, approval, authorization or order is required,
      it
      has obtained the same.

     

    (vii)  GMACM
      has
      accurately and fully reported, and will continue to accurately and fully report,
      its borrower credit files to each of the credit repositories in a timely manner
      materially in accordance with the Fair Credit Reporting Act and its implementing
      legislation.

     

    (viii)  GMACM
      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 GMACM
      Mortgage Loans that are registered with MERS.

     

    (ix)  GMACM
      will not waive any Prepayment Charge with respect to a GMACM Mortgage Loan
      unless it is waived in accordance with the standard set forth in
      Section 3.01.

     

    If
      the
      covenant of GMACM set forth in Section 2.03(a)(ix), as applicable above is
      breached by GMACM, GMACM will pay the amount of such waived Prepayment Charge,
      for the benefit of the Holders of the Class P Certificates, by depositing such
      amount into the Custodial Account within ninety (90) days of the earlier of
      discovery by GMACM or receipt of notice by GMACM of such breach. Notwithstanding
      the foregoing, or anything to the contrary contained in this Agreement, GMACM
      shall have no liability for a waiver of any Prepayment Charge in the event
      that
      GMACM’s determination to make such a waiver was made by GMACM in reliance on
      information properly received by GMACM from any Person in accordance with the
      terms of this Agreement.

     

    (b)  The
      Sponsor hereby represents and warrants to and covenants with, the Depositor,
      GMACM, the Master Servicer, the Securities Administrator and the Trustee as
      follows, as of the Closing Date:

     

    (i)  The
      Sponsor is duly organized, validly existing and in good standing under the
      laws
      of the State of Delaware and is duly authorized and qualified to transact any
      and all business contemplated by this Agreement to be conducted by the Sponsor
      in any state in which a Mortgaged Property is located or is otherwise not
      required under applicable law to effect such qualification and, in any event,
      is
      in compliance with the doing business laws of any such state, to the extent
      necessary to ensure its ability to enforce each Mortgage Loan, to sell the
      Mortgage Loans in accordance with the terms of this Agreement and to perform
      any
      of its other obligations under this Agreement in accordance with the terms
      hereof.

     

    (ii)  The
      Sponsor has the full corporate power and authority to sell 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 Sponsor the execution, delivery
      and performance of this Agreement; and this Agreement, assuming the due
      authorization, execution and delivery hereof by the other parties hereto,
      constitutes a legal, valid and binding obligation of the Sponsor, enforceable
      against the Sponsor in accordance with its terms, except that (a) the
      enforceability hereof may be limited by bankruptcy, insolvency, moratorium,
      receivership and other similar laws relating to creditors’ rights generally and
      (b) the remedy of specific performance and injunctive and other forms of
      equitable relief may be subject to equitable defenses and to the discretion
      of
      the court before which any proceeding therefor may be brought and further
      subject to public policy with respect to indemnity and contribution under
      applicable securities law.

     

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

     

    (iv)  The
      Sponsor is an approved seller of conventional mortgage loans for Fannie Mae
      or
      Freddie Mac and is a mortgagee approved by the Secretary of Housing and Urban
      Development pursuant to sections 203 and 211 of the National Housing
      Act.

     

    (v)  No
      litigation is pending or, to the best of the Sponsor’s knowledge, threatened,
      against the Sponsor that would materially and adversely affect the execution,
      delivery or enforceability of this Agreement or the ability of the Sponsor
      to
      sell the Mortgage Loans or to perform any of its other obligations under this
      Agreement 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 Sponsor
      of,
      or compliance by the Sponsor with, this Agreement or the consummation of the
      transactions contemplated hereby, or if any such consent, approval,
      authorization or order is required, the Sponsor has obtained the
      same.

     

    (vii)  The
      representations and warranties set forth in Section 8 of the Mortgage Loan
      Purchase Agreement are true and correct as of the Closing Date.

     

    (viii)  No
      Mortgage Loan is subject to the Home Ownership and Equity Protection Act of
      1994
      or any comparable law and no Mortgage Loan is classified and/or defined as
      a
“high cost”, “covered”, “high risk home” or “predatory” loan under any other
      state, federal or local law or regulation or ordinance (or a similarly
      classified loan using different terminology under a law imposing heightened
      regulatory scrutiny or additional legal liability for residential mortgage
      loans
      having high interest rates, points and/or fees).

     

    (ix)  No
      loan
      is a High Cost Loan or Covered Loan, as applicable (as such terms are defined
      in
      Appendix E of the Standard & Poor's Glossary For File Format For LEVELS®
Version 5.6 Revised (attached hereto as Exhibit K) and no Mortgage Loan
      originated on or after October 1, 2002 through March 6, 2003 is governed by
      the
      Georgia Fair Lending Act.

     

    (x)  Any
      and
      all requirements of any federal, state or local law including, without
      limitation, usury, truth in lending, real estate settlement procedures, consumer
      credit protection, equal credit opportunity, fair housing, predatory, abusive
      lending or disclosure laws applicable to the origination and servicing of the
      Mortgage Loans have been complied with in all material respects.

     

    (c)  Upon
      discovery by any of the parties hereto of a breach of a representation or
      warranty set forth in Section 2.03(b)(viii), (ix) and (x) and
      Section 8 of the Mortgage Loan Purchase Agreement that materially and
      adversely affects the interests of the Certificateholders in any Mortgage Loan,
      the party discovering such breach shall give prompt written notice thereof
      to
      the other parties. The Sponsor hereby covenants with respect to the
      representations and warranties set forth in Section 2.03(b)(viii), (ix) and
      (x) and Section 8 of the Mortgage Loan Purchase Agreement, that within
      ninety (90) days of the discovery of a breach of any representation or warranty
      set forth therein that materially and adversely affects the interests of the
      Certificateholders in any Mortgage Loan, it shall cure such breach in all
      material respects and, if such breach is not so cured, (i) prior to the second
      anniversary of the Closing Date, remove such Mortgage Loan (a “Deleted Mortgage
      Loan”) from the Trust Fund and substitute in its place a Replacement Mortgage
      Loan, in the manner and subject to the conditions set forth in this Section;
      or
      (ii) repurchase the affected Mortgage Loan or Mortgage Loans from the Trustee
      at
      the Purchase Price in the manner set forth below; provided that any such
      substitution pursuant to (i) above or repurchase pursuant to (ii) above shall
      not be effected prior to the delivery to the Trustee of an Opinion of Counsel
      if
      required by Section 2.05 and any such substitution pursuant to (i) above
      shall not be effected prior to the additional delivery to the Custodian of
      a
      request for release in accordance with the Custodial Agreement. The Sponsor
      shall promptly reimburse the Trustee for any expenses reasonably incurred by
      the
      Trustee in respect of enforcing the remedies for such breach. To enable the
      related Servicer to amend the Mortgage Loan Schedule, the Sponsor shall, unless
      it cures such breach in a timely fashion pursuant to this Section 2.03,
      promptly notify the Trustee whether it intends either to repurchase, or to
      substitute for, the Mortgage Loan affected by such breach. With respect to
      the
      representations and warranties in Section 8 of the Mortgage Loan Purchase
      Agreement that are made to the best of the Sponsor’s knowledge, if it is
      discovered by any of the Depositor, the Sponsor or the Trustee that the
      substance of such representation and warranty is inaccurate and such inaccuracy
      materially and adversely affects the value of the related Mortgage Loan,
      notwithstanding the Sponsor’s lack of knowledge with respect to the substance of
      such representation or warranty, the Sponsor shall nevertheless be required
      to
      cure, substitute for or repurchase the affected Mortgage Loan in accordance
      with
      the foregoing. Notwithstanding the foregoing, any breach of a representation
      or
      warranty contained in clauses (xxxvii), (xxxviii), (xxxix), (xl) and/or (xlv)
      of
      Section 8 of the Mortgage Loan Purchase Agreement shall be automatically
      deemed to materially and adversely affect the interests of the
      Certificateholders.

     

    With
      respect to any Replacement Mortgage Loan or Loans, the Sponsor shall deliver
      to
      the Custodian for the benefit of the Certificateholders such documents and
      agreements as are required by Section 2 of the Custodial Agreement. No
      substitution will be made in any calendar month after the Determination Date
      for
      such month. Scheduled Payments due with respect to Replacement Mortgage Loans
      in
      the Due Period related to the Distribution Date on which such proceeds are
      to be
      distributed shall not be part of the Trust Fund and will be retained by the
      Sponsor. For the month of substitution, distributions to Certificateholders
      will
      include the Scheduled Payment due on any Deleted Mortgage Loan for the related
      Due Period and thereafter the Sponsor shall be entitled to retain all amounts
      received in respect of such Deleted Mortgage Loan. The related Servicer shall
      amend the Mortgage Loan Schedule for the benefit of the Certificateholders
      to
      reflect the removal of such Deleted Mortgage Loan and the substitution of the
      Replacement Mortgage Loan or Loans and shall deliver the amended Mortgage Loan
      Schedule to the Trustee, the Master Servicer and the Securities Administrator.
      Upon such substitution, the Replacement Mortgage Loan or Loans shall be subject
      to the terms of this Agreement in all respects, and the Sponsor shall be deemed
      to have made with respect to such Replacement Mortgage Loan or Loans, as of
      the
      date of substitution, the representations and warranties set forth in
      Section 8 of the Mortgage Loan Purchase Agreement with respect to such
      Mortgage Loan. Upon any such substitution and the deposit into the related
      Custodial Account of the amount required to be deposited therein in connection
      with such substitution as described in the following paragraph and receipt
      by
      the Custodian of a request for release for such Mortgage Loan in accordance
      with
      the Custodial Agreement, the Custodian on behalf of the Trustee shall release
      to
      the Sponsor the Mortgage File relating to such Deleted Mortgage Loan and held
      for the benefit of the Certificateholders and the Trustee shall execute and
      deliver at the Sponsor’s direction such instruments of transfer or assignment as
      have been prepared by the Sponsor, in each case without recourse, as shall
      be
      necessary to vest in the Sponsor, or its respective designee, title to the
      Trustee’s interest in any Deleted Mortgage Loan substituted for pursuant to this
      Section 2.03. Neither the Trustee nor the Custodian shall have any further
      responsibility with regard to such Mortgage File.

     

    For
      any
      month in which the Sponsor substitutes one or more Replacement Mortgage Loans
      for a Deleted Mortgage Loan, the Securities Administrator will determine the
      amount (if any) by which the aggregate principal balance of all the Replacement
      Mortgage Loans as of the date of substitution is less than the Stated Principal
      Balance (after application of the principal portion of the Scheduled Payment
      due
      in the month of substitution) of such Deleted Mortgage Loan. An amount equal
      to
      the aggregate of such deficiencies, described in the preceding sentence for
      any
      Distribution Date (such amount, the “Substitution Adjustment Amount”) shall be
      remitted to the related Servicer for deposit in the related Custodial Account
      by
      the Sponsor delivering such Replacement Mortgage Loan on or before the
      Determination Date for the Distribution Date relating to the Prepayment Period
      during which the related Mortgage Loan was required to be purchased or replaced
      hereunder.

     

    In
      the
      event that the Sponsor shall be required to repurchase a Mortgage Loan, the
      Purchase Price therefor shall be remitted to the related Servicer for deposit
      in
      the related Custodial Account, on or before the Determination Date immediately
      following the date on which the Sponsor was required to repurchase such Mortgage
      Loan. The Purchase Price shall be remitted by the related Servicer to the
      Securities Administrator on the Remittance Date occurring in the month
      immediately following the month in which the Purchase Price was deposited in
      the
      related Custodial Account. In addition, upon such deposit of the Purchase Price,
      the delivery of an Officer’s Certificate by the Servicer (which shall be
      delivered no more than two (2) Business Days following such deposit) to the
      Trustee certifying that the Purchase Price has been deposited in the related
      Custodial Account, the delivery of an Opinion of Counsel if required by
      Section 2.05 and the receipt of a Request for Release, the Trustee shall
      release the related Mortgage File held for the benefit of the related
      Certificateholders to the Sponsor, and the Trustee shall execute and deliver
      at
      such Person’s direction the related instruments of transfer or assignment
      prepared by the Sponsor, in each case without recourse, as shall be necessary
      to
      transfer title from the Trustee for the benefit of the Certificateholders and
      transfer the Trustee’s interest to the Sponsor to any Mortgage Loan purchased
      pursuant to this Section 2.03. It is understood and agreed that the
      obligation under this Agreement of the Sponsor to cure, repurchase or replace
      any Mortgage Loan as to which a breach has occurred or is continuing shall
      constitute the sole remedies against the Sponsor respecting such breach
      available to each Certificateholder, the Depositor or the Trustee.

     

    (d)  The
      Master Servicer hereby represents, warrants and covenants with GMACM, the
      Sponsor, the Depositor and the Trustee as follows, as of the Closing
      Date:

     

    (i)  The
      Master Servicer is a national banking association duly formed, validly existing
      and in good standing under the laws of the United States of America and is
      duly
      authorized and qualified to transact any and all business contemplated by this
      Agreement to be conducted by the Master Servicer;

     

    (ii)  The
      Master Servicer has the full power and authority to conduct its business as
      presently conducted by it and to execute, deliver and perform, and to enter
      into
      and consummate, all transactions contemplated by this Agreement. The Master
      Servicer has duly authorized the execution, delivery and performance of this
      Agreement, has duly executed and delivered this Agreement, and this Agreement,
      assuming due authorization, execution and delivery by the other parties hereto,
      constitutes a legal, valid and binding obligation of the Master Servicer,
      enforceable against it in accordance with its terms except as the enforceability
      thereof may be limited by bankruptcy, insolvency, reorganization or similar
      laws
      affecting the enforcement of creditors’ rights generally and by general
      principles of equity;

     

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

     

    (iv)  The
      Master Servicer does not believe, nor does it have any reason or cause to
      believe, that it cannot perform each and every covenant made by it and contained
      in this Agreement;

     

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

     

    (vi)  There
      are
      no actions or proceedings against, or investigations known to it of, the Master
      Servicer before any court, administrative or other tribunal (A) that might
      prohibit its entering into this Agreement, (B) seeking to prevent the
      consummation of the transactions contemplated by this Agreement or (C) that
      might prohibit or materially and adversely affect the performance by the Master
      Servicer of its obligations under, or validity or enforceability of, this
      Agreement; and

     

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

     

    (e)  The
      representations and warranties set forth in Section 2.03 shall survive
      delivery of the respective Mortgage Loans and Mortgage Files to the Trustee
      or
      the Custodian for the benefit of the Certificateholders.

     

    Section
      2.04  Representations
      and Warranties of the Depositor.

     

    The
      Depositor hereby represents and warrants to, and covenants, with GMACM, the
      Sponsor, the Master Servicer, the Securities Administrator and the Trustee
      as
      follows, as of the date hereof and as of the Closing Date:

     

    (i)  The
      Depositor is duly organized and is validly existing as a corporation in good
      standing under the laws of the State of Delaware and has full power and
      authority (corporate and other) necessary to own or hold its properties and
      to
      conduct its business as now conducted by it and to enter into and perform its
      obligations under this Agreement.

     

    (ii)  The
      Depositor has the full corporate power and authority 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 its
      part, the execution, delivery and performance of this Agreement; and this
      Agreement, assuming the due authorization, execution and delivery hereof by
      the
      other parties hereto, constitutes a legal, valid and binding obligation of
      the
      Depositor, enforceable against the Depositor in accordance with its terms,
      subject, as to enforceability, to (i) bankruptcy, insolvency, moratorium
      receivership and other similar laws relating to creditors’ rights generally and
      (ii) the remedy of specific performance and injunctive and other forms of
      equitable relief may be subject to equitable defenses and to the discretion
      of
      the court before which any proceeding therefor may be brought and further
      subject to public policy with respect to indemnity and contribution under
      applicable securities law.

     

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

     

    (iv)  No
      litigation is pending, or, to the best of the Depositor’s knowledge, threatened,
      against the Depositor that would materially and adversely affect the execution,
      delivery or enforceability of this Agreement or the ability of the Depositor
      to
      perform its obligations under this Agreement in accordance with the terms
      hereof.

     

    (v)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Depositor
      of, or compliance by the Depositor with, this Agreement or the consummation
      of
      the transactions contemplated hereby, or if any such consent, approval,
      authorization or order is required, the Depositor has obtained the
      same.

     

    The
      Depositor hereby represents and warrants to the Trustee as of the Closing Date,
      following the transfer of the Mortgage Loans to it by the Sponsor, the Depositor
      had good title to the Mortgage Loans and the related Mortgage Notes were subject
      to no offsets, claims, defenses or counterclaims.

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 2.04 shall survive delivery of the Mortgage Files to the Trustee or
      the Custodian for the benefit of the Certificateholders. Upon discovery by
      the
      Depositor, the Servicer, the Master Servicer or the Trustee of a breach of
      such
      representations and warranties, the party discovering such breach shall give
      prompt written notice to the others and to each Rating Agency.

     

    Section
      2.05  Delivery
      of Opinion of Counsel in Connection with Substitutions and
      Repurchases.

     

    (a)  Notwithstanding
      any contrary provision of this Agreement, with respect to any Mortgage Loan
      that
      is not in default or as to which default is not imminent, no repurchase or
      substitution pursuant to Sections 2.02 or 2.03 shall be made unless the Sponsor
      delivers to the Trustee an Opinion of Counsel, addressed to the Trustee, to
      the
      effect that such repurchase or substitution would not (i) result in the
      imposition of the tax on “prohibited transactions” of any REMIC executed
      hereunder or contributions after the Closing Date, as defined in sections
      860F(a)(2) and 860G(d) of the Code, respectively or (ii) cause any REMIC to
      fail
      to qualify as a REMIC at any time that any Certificates are outstanding. Any
      Mortgage Loan as to which repurchase or substitution was delayed pursuant to
      this paragraph shall be repurchased or the substitution therefor shall occur
      (subject to compliance with Sections 2.02 or 2.03) upon the earlier of (a)
      the
      occurrence of a default or imminent default with respect to such Mortgage Loan
      and (b) receipt by the Trustee of an Opinion of Counsel to the effect that
      such
      repurchase or substitution, as applicable, will not result in the events
      described in clause (i) or clause (ii) of the preceding sentence.

     

    (b)  Upon
      discovery by the Depositor or the Sponsor that any Mortgage Loan does not
      constitute a “qualified mortgage” within the meaning of section 860G(a)(3) of
      the Code, the party discovering such fact shall promptly (and in any event
      within five (5) Business Days of discovery) give written notice thereof to
      the
      other parties and the Trustee. In connection therewith, the Sponsor, at its
      option, shall either (i) substitute, if the conditions in Section 2.03(c)
      with respect to substitutions are satisfied, a Replacement Mortgage Loan for
      the
      affected Mortgage Loan, or (ii) repurchase the affected Mortgage Loan within
      ninety (90) days of such discovery in the same manner as it would a Mortgage
      Loan for a breach of representation or warranty contained in Section 2.03.
      The Trustee shall reconvey to the Sponsor the Mortgage Loan to be released
      pursuant hereto in the same manner, and on the same terms and conditions, as
      it
      would a Mortgage Loan repurchased for breach of a representation or warranty
      contained in Section 2.03.

     

    Section
      2.06  Issuance
      of the REMIC I Regular Interests.

     

    The
      Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
      to the Custodian on its behalf of the related Mortgage Files, subject to the
      provisions of Section 2.01 and Section 2.02, together with the assignment to
      it
      of all other assets included in REMIC I, the receipt of which is hereby
      acknowledged. The interests evidenced by the Class R-1 Interest, together with
      the REMIC I Regular Interests, constitute the entire beneficial ownership
      interest in REMIC I. The rights of the Holders of the Class R-1 Interest and
      REMIC I (as holder of the REMIC I Regular Interests) to receive distributions
      from the proceeds of REMIC I in respect of the Class R-1 Interest and the REMIC
      I Regular Interests, respectively, and all ownership interests evidenced or
      constituted by the Class R-1 Interest and the REMIC I Regular Interests, shall
      be as set forth in this Agreement.

     

    Section
      2.07  Conveyance
      of the REMIC I Regular Interests, REMIC II Regular Interests and REMIC III
      Regular Interest.

     

    (a)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without recourse
      all the right, title and interest of the Depositor in and to the REMIC I Regular
      Interests for the benefit of the Class R-2 Interest and REMIC II (as holder
      of
      the REMIC I Regular Interests). The Trustee acknowledges receipt of the REMIC
      I
      Regular Interests and declares that it holds and will hold the same in trust
      for
      the exclusive use and benefit of all present and future Holders of the Class
      R-2
      Interest and REMIC II (as holder of the REMIC I Regular Interests). The rights
      of the Holder of the Class R-2 Interest and REMIC II (as holder of the REMIC
      I
      Regular Interests) to receive distributions from the proceeds of REMIC II in
      respect of the Class R-2 Interest and the REMIC II Regular Interests,
      respectively, and all ownership interests evidenced or constituted by the Class
      R-2 Interest and the REMIC II Regular Interests, shall be as set forth in this
      Agreement. The Class R-2 Interest and the REMIC II Regular Interests shall
      constitute the entire beneficial ownership interest in REMIC II.

     

    (b)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without recourse
      all the right, title and interest of the Depositor in and to the REMIC II
      Regular Interests for the benefit of the Class R-3 Interest and REMIC III (as
      holder of the REMIC II Regular Interests). The Trustee acknowledges receipt
      of
      the REMIC II Regular Interests and declares that it holds and will hold the
      same
      in trust for the exclusive use and benefit of all present and future Holders
      of
      the Class R-3 Interest and REMIC III (as holder of the REMIC II Regular
      Interests). The rights of the Holder of the Class R-3 Interest and REMIC III
      (as
      holder of the REMIC II Regular Interests) to receive distributions from the
      proceeds of REMIC III in respect of the Class R-3 Interest, the REMIC III
      Certificates (other than the Class R Certificates), the Class X Interest, Class
      P Interest and Class IO Interest, respectively, and all ownership interests
      evidenced or constituted by the Class R-3 Interest and the REMIC III
      Certificates (other than the Class R Certificates), the Class X Interest, Class
      P Interest and Class IO Interest, shall be as set forth in this Agreement.
      The
      Class R-3 Interest and the REMIC III Certificates (other than the Class R
      Certificates), the Class X Interest, Class P Interest and Class IO Interest
      shall constitute the entire beneficial ownership interest in REMIC
      III.

     

    (c)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without recourse
      all the right, title and interest of the Depositor in and to the Class X
      Interest for the benefit of the Class R-4 Interest and REMIC IV (as holder
      of
      the Class X Interest). The Trustee acknowledges receipt of the Class X Interest
      and declares that it holds and will hold the same in trust for the exclusive
      use
      and benefit of all present and future Holders of the Class R-4 Interest and
      REMIC IV (as holder of the Class X Interest). The rights of the Holder of the
      Class R-4 Interest and REMIC IV (as holder of the Class X Interest) to receive
      distributions from the proceeds of REMIC IV in respect of the Class R-4
      Interest, the Class X Certificates, and all ownership interests evidenced or
      constituted by the Class R-4 Interest and the Class X Certificates, shall be
      as
      set forth in this Agreement. The Class R-4 Interest and the Class X Certificates
      shall constitute the entire beneficial ownership interest in REMIC
      IV.

     

    (d)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without recourse
      all the right, title and interest of the Depositor in and to the Class P
      Interest for the benefit of the Class R-5 Interest and REMIC V (as holder of
      the
      Class P Interest). The Trustee acknowledges receipt of the Class P Interest
      and
      declares that it holds and will hold the same in trust for the exclusive use
      and
      benefit of all present and future Holders of the Class R-5 Interest and REMIC
      V
      (as holder of the Class P Interest). The rights of the Holder of the Class
      R-5
      Interest and REMIC V (as holder of the Class P Interest) to receive
      distributions from the proceeds of REMIC V in respect of the Class R-5 Interest,
      the Class P Certificates, and all ownership interests evidenced or constituted
      by the Class R-5 Interest and the Class P Certificates, shall be as set forth
      in
      this Agreement. The Class R-5 Interest and the Class P Certificates shall
      constitute the entire beneficial ownership interest in REMIC V.

     

    (e)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without recourse
      all the right, title and interest of the Depositor in and to the Class IO
      Interest for the benefit of the Class R-6 Interest and REMIC VI (as holder
      of
      the Class IO Interest). The Trustee acknowledges receipt of the Class IO
      Interest and declares that it holds and will hold the same in trust for the
      exclusive use and benefit of all present and future Holders of the Class R-6
      Interest and REMIC VI (as holder of the Class IO Interest). The rights of the
      Holder of the Class R-6 Interest and REMIC VI (as holder of the Class IO
      Interest) to receive distributions from the proceeds of REMIC VI in respect
      of
      the Class R-6 Interest, REMIC VI Regular Interest Swap-IO, and all ownership
      interests evidenced or constituted by the Class R-6 Interest and REMIC VI
      Regular Interest Swap-IO, shall be as set forth in this Agreement. The Class
      R-6
      Interest and REMIC VI Regular Interest Swap-IO shall constitute the entire
      beneficial ownership interest in REMIC VI.

     

    Section
      2.08  Issuance
      of the Class R Certificates and Class R-X Certificates.

     

    (a)  The
      Trustee acknowledges the assignment to it of the REMIC I Regular Interests
      and
      REMIC II Regular Interests and, concurrently therewith and in exchange therefor,
      pursuant to the written request of the Depositor executed by an officer of
      the
      Depositor, the Securities Administrator has executed, authenticated and
      delivered to or upon the order of the Depositor, the Class R Certificates in
      authorized denominations.

     

    (b)  The
      Trustee acknowledges the assignment to it of the Class X Interest, Class P
      Interest and Class IO Interest and, concurrently therewith and in exchange
      therefor, pursuant to the written request of the Depositor executed by an
      officer of the Depositor, the Securities Administrator has executed,
      authenticated and delivered to or upon the order of the Depositor, the Class
      R-X
      Certificates in authorized denominations.

     

    Section
      2.09  Establishment
      of Trust.

     

    The
      Depositor does hereby establish, pursuant to the further provisions of this
      Agreement and the laws of the State of New York, an express trust to be known,
      for convenience, as “Nomura Asset Acceptance Corporation, Alternative Loan
      Trust, Series 2006-AR3” and does hereby appoint HSBC Bank USA, National
      Association, as Trustee in accordance with the provisions of this
      Agreement.

     

    Section
      2.10  Purpose
      and Powers of the Trust.

     

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

     

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

     

    (b)  to
      issue
      the Certificates sold to the Depositor in exchange for the Mortgage
      Loans;

     

    (c)  to
      make
      payments on the Certificates;

     

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

     

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

     

    The
      trust
      is hereby authorized to engage in the foregoing activities. The Trustee shall
      not cause the trust to engage in any activity other than in connection with
      the
      foregoing or other than as required or authorized by the terms of this Agreement
      while any Certificate is outstanding, and this Section 2.10 may not be amended,
      without the consent of the Certificateholders evidencing 51% or more of the
      aggregate voting rights of the Certificates.

     

    ARTICLE
      III

     

    ADMINISTRATION
      AND SERVICING OF THE MORTGAGE LOANS; ACCOUNTS

     

    Section
      3.01  GMACM
      to act as Servicer of the related Mortgage Loans.

     

    

    The
      obligations of GMACM hereunder to service and administer the Mortgage Loans
      shall be limited to the GMAC Mortgage Loans, and with respect to the duties
      and
      obligations of GMACM, references herein to the related Mortgage Loans shall
      be
      limited to the GMACM Mortgage Loans (and the related proceeds thereof and
      related REO Properties) and references to the related Servicer or such Servicer
      in connection with the performance of the servicing obligations specified in
      this Agreement and all obligations arising hereunder by the related Servicer
      in
      connection with the servicing of the related Mortgage Loans shall be deemed
      to
      be references to GMACM or any successor thereto responsible for the servicing
      and administration of the GMACM Mortgage Loans pursuant to the terms of this
      Agreement. The Wachovia Mortgage Loans will be serviced and administered by
      Wachovia pursuant to the terms and provisions of the Servicing Agreement and
      Wachovia shall have no obligation to adhere to the provisions of this Agreement
      in connection with the servicing and administration of the Wachovia Mortgage
      Loans. In addition, GMACM will have no responsibility to service or administer
      the Wachovia Mortgage Loans or have any other obligation or liability with
      respect to the Wachovia Mortgage Loans or the Servicing Agreement. 

     

    The
      related Servicer shall service and administer the related Mortgage Loans on
      behalf of the Trust Fund and in the best interest of and for the benefit of
      the
      Certificateholders (as determined by such Servicer in its reasonable judgment)
      in accordance with the terms of this Agreement and the related Mortgage Loans
      and to the extent consistent with such terms and in accordance with and
      exercising the same care in performing those practices that such Servicer
      customarily employs and exercises in servicing and administering mortgage loans
      for its own account and of the same type as such Mortgage Loans in the
      jurisdiction in which the related Mortgaged Properties are located (including,
      compliance with all applicable federal, state and local laws).

     

    To
      the
      extent consistent with the foregoing, the related Servicer shall seek the timely
      and complete recovery of principal and interest on the Mortgage Notes related
      to
      the Mortgage Loans and shall waive a Prepayment Charge only under the following
      circumstances: (i) such waiver is standard and customary in servicing similar
      mortgage loans and (ii) either (A) such waiver is related to a default or
      reasonably foreseeable default and would, in the reasonable judgment of the
      related Servicer, maximize recovery of total proceeds taking into account the
      value of such Prepayment Charge and the related Mortgage Loan and, if such
      waiver is made in connection with a refinancing of the related Mortgage Loan,
      such refinancing is related to a default or a reasonably foreseeable default
      or
      (B) such waiver is made in connection with a refinancing of the related Mortgage
      Loan unrelated to a default or a reasonably foreseeable default where (x) the
      related Mortgagor has stated to the related Servicer an intention to refinance
      the related Mortgage Loan and (y) the related Servicer has concluded in its
      reasonable judgment that the waiver of such Prepayment Charge would induce
      such
      Mortgagor to refinance with the related Servicer or (iii) the related Servicer
      reasonably believes such Prepayment Charge is unenforceable in accordance with
      applicable law or the collection of such related Prepayment Charge would
      otherwise violate applicable law. If a Prepayment Charge is waived as permitted
      by meeting both of the standards described in clauses (i) and (ii)(B) above,
      then the related Servicer is required to pay the amount of such waived
      Prepayment Charge (the “Servicer Prepayment Charge Payment Amount”), for the
      benefit of the Holders of the Class P Certificates, by depositing such amount
      into the related Custodial Account within ninety (90) days of notice or
      discovery of such waiver meeting the standard set forth in both clauses (i)
      and
      (ii)(B) above; provided, however, that the related Servicer shall not waive
      more
      than five percent (5%) of the Prepayment Charges (by number of Prepayment
      Charges) set forth on the Mortgage Loan Schedule in accordance with clauses
      (i)
      and (ii)(B) above. Notwithstanding any other provisions of this Agreement,
      any
      payments made by the related Servicer in respect of any waived Prepayment
      Charges pursuant to clauses (i) and (ii)(B) above and the preceding sentence
      shall be deemed to be paid outside of the Trust Fund.

     

    Notwithstanding
      anything to the contrary contained in this Agreement, if the related Servicer
      waives a Prepayment Charge in breach of the foregoing paragraph, such Servicer
      will pay the amount of such waived Prepayment Charge, from its own funds without
      any right of reimbursement, for the benefit of the Holders of the Class P
      Certificates, by depositing such amount into the Custodial Account within ninety
      (90) days of the earlier of discovery by the related Servicer or receipt of
      notice by the related Servicer of such breach. Furthermore, notwithstanding
      any
      other provisions of this Agreement, any payments made by the related Servicer
      in
      respect of any waived Prepayment Charges pursuant to this paragraph shall be
      deemed to be paid outside of the Trust Fund.

     

    Subject
      only to the above-described applicable servicing standards (the “Accepted
      Servicing Practices”) and the terms of this Agreement and of the respective
      Mortgage Loans, the related Servicer shall have full power and authority, acting
      alone and/or through Subservicers as provided in Section 3.03, to do or
      cause to be done any and all things that it may deem necessary or desirable
      in
      connection with such servicing and administration, including but not limited
      to,
      the power and authority, subject to the terms hereof (i) to execute and deliver,
      on behalf of the Certificateholders and the Trustee, customary consents or
      waivers and other instruments and documents, (ii) to consent to transfers of
      any
      related Mortgaged Property and assumptions of the Mortgage Notes and related
      Mortgages (but only in the manner provided herein), (iii) to collect any
      Insurance Proceeds and other Liquidation Proceeds, and (iv) subject to
      Section 3.09, to effectuate foreclosure or other conversion of the
      ownership of the Mortgaged Property securing any Mortgage Loan serviced by
      such
      Servicer.

     

    Without
      limiting the generality of the foregoing, the related Servicer, in its own
      name
      or in the name of the Trust, the Depositor or the Trustee, is hereby authorized
      and empowered by the Trust, the Depositor and the Trustee, when such Servicer
      believes it appropriate in its reasonable judgment, to execute and deliver,
      on
      behalf of the Trustee, the Depositor, the Certificateholders or any of them,
      any
      and all instruments of satisfaction or cancellation, or of partial or full
      release or discharge and all other comparable instruments, with respect to
      the
      related Mortgage Loans, and with respect to the related Mortgaged Properties
      held for the benefit of the Certificateholders. The related Servicer shall
      prepare and deliver to the Depositor and/or the Trustee such documents requiring
      execution and delivery by any or all of them as are necessary or appropriate
      to
      enable the related Servicer to service and administer the related Mortgage
      Loans. Upon receipt of such documents, the Depositor and/or the Trustee shall
      execute such documents and deliver them to the related Servicer. In addition,
      the Trustee shall execute, at the written request of a Servicer, and furnish
      to
      it any special or limited powers of attorney agreeable to the Trustee and its
      counsel applicable to all locations in which the Mortgaged Properties are
      located and other documents necessary or appropriate to enable such Servicer
      to
      carry out its servicing and administrative duties hereunder or under the
      Servicing Agreement, provided such limited powers of attorney or other documents
      shall be prepared by the related Servicer and submitted to the Trustee for
      review prior to execution. Notwithstanding anything to the contrary herein,
      the
      Trustee shall in no way be liable or responsible for the willful malfeasance
      of
      a Servicer, or for the wrongful or negligent actions taken by a Servicer, while
      such Servicer is acting pursuant to the powers granted to it in this
      paragraph.

     

    In
      accordance with the standards of the first paragraph of this Section 3.01,
      the related Servicer shall advance or cause to be advanced funds as necessary
      for the purpose of effecting the payment of taxes and assessments on the
      Mortgaged Properties relating to the related Mortgage Loans in order to preserve
      the lien on the related Mortgaged Property, which advances shall be reimbursable
      in the first instance from related collections from the Mortgagors pursuant
      to
      Section 3.27, and further as provided in Section 3.32. All costs
      incurred by a Servicer, if any, in effecting the payments of such taxes and
      assessments on the related Mortgaged Properties and related insurance premiums
      shall not, for the purpose of calculating monthly distributions to the
      Certificateholders, be added to the Stated Principal Balance under the related
      Mortgage Loans, notwithstanding that the terms of such Mortgage Loans so
      permit.

     

    Section
      3.02  Due-on-Sale
      Clauses; Assumption Agreements.

     

    (a)  Except
      as
      otherwise provided in this Section 3.02, when any Mortgaged Property has
      been or is about to be conveyed by the Mortgagor, the related Servicer shall
      to
      the extent that it has knowledge of such conveyance, enforce any due-on-sale
      clause contained in any Mortgage Note or Mortgage, to the extent permitted
      under
      applicable law and governmental regulations, but only to the extent that such
      enforcement will not adversely affect or jeopardize coverage under any Required
      Insurance Policy. Notwithstanding the foregoing, no Servicer shall be required
      to exercise such rights with respect to a Mortgage Loan serviced by such
      Servicer if the Person to whom the related Mortgaged Property has been conveyed
      or is proposed to be conveyed satisfies the terms and conditions contained
      in
      the Mortgage Note and Mortgage related thereto and the consent of the mortgagee
      under such Mortgage Note or Mortgage is not otherwise so required under such
      Mortgage Note or Mortgage as a condition to such transfer. In the event that
      the
      related Servicer is prohibited by law from enforcing any such due-on-sale
      clause, or if coverage under any Required Insurance Policy would be adversely
      affected, or if nonenforcement is otherwise permitted hereunder, such Servicer
      is authorized, subject to Section 3.02(b), to take or enter into an
      assumption and modification agreement from or with the person to whom such
      property has been or is about to be conveyed, pursuant to which such person
      becomes liable under the Mortgage Note and, unless prohibited by applicable
      state law, the Mortgagor remains liable thereon, provided that the related
      Mortgage Loan shall continue to be covered (if so covered before the related
      Servicer enters into such an agreement) by the applicable Required Insurance
      Policies. The related Servicer, subject to Section 3.02(b), is also
      authorized with the prior approval of the insurers under any Required Insurance
      Policies to enter into a substitution of liability agreement with such Person,
      pursuant to which the original Mortgagor is released from liability and such
      Person is substituted as Mortgagor and becomes liable under the Mortgage Note.
      Notwithstanding the foregoing, no Servicer shall be deemed to be in default
      under this Section 3.02(a) by reason of any transfer or assumption that
      such Servicer reasonably believes it is restricted by law from
      preventing.

     

    (b)  Subject
      to the related Servicer’s duty to enforce any due-on-sale clause to the extent
      set forth in Section 3.02(a), in any case in which a Mortgaged Property has
      been conveyed to a Person by a Mortgagor, and such Person is to enter into
      an
      assumption agreement or modification agreement or supplement to the Mortgage
      Note or Mortgage that requires the signature of the Trustee, or if an instrument
      of release signed by the Trustee is required releasing the Mortgagor from
      liability on the related Mortgage Loan, the related Servicer shall prepare
      and
      deliver or cause to be prepared and delivered to the Trustee for signature
      and
      shall direct, in writing, the Trustee to execute the assumption agreement with
      the Person to whom the Mortgaged Property is to be conveyed and such
      modification agreement or supplement to the Mortgage Note or Mortgage or other
      instruments as are reasonable or necessary to carry out the terms of the
      Mortgage Note or Mortgage or otherwise to comply with any applicable laws
      regarding assumptions or the transfer of the Mortgaged Property to such Person.
      In connection with any such assumption, no material term of the Mortgage Note
      (including, but not limited to, (a) the Mortgage Rate, (b) the amount of the
      Scheduled Payment, (c) the related Index, Gross Margin, Periodic Rate Cap,
      Adjustment Date, Maximum Interest Rate or Minimum Mortgage Interest Rate, and
      (d) any other term affecting the amount or timing of payment on the related
      Mortgage Loan) may be changed. In addition, the substitute Mortgagor and the
      Mortgaged Property must be acceptable to the related Servicer in accordance
      with
      the servicing standard set forth in Section 3.01. The related Servicer
      shall notify the Trustee that any such substitution or assumption agreement
      has
      been completed by forwarding to the Custodian the original of such substitution
      or assumption agreement, which in the case of the original shall be added to
      the
      related Mortgage File and shall, for all purposes, be considered a part of
      such
      Mortgage File to the same extent as all other documents and instruments
      constituting a part thereof. Any fee collected by a Servicer for entering into
      an assumption or substitution of liability agreement will be retained by such
      Servicer as additional servicing compensation.

     

    Section
      3.03  Subservicers.

     

    The
      related Servicer shall perform all of its servicing responsibilities hereunder
      or may cause a Subservicer to perform any such servicing responsibilities on
      its
      behalf, but the use by such Servicer of a Subservicer shall not release such
      Servicer from any of its obligations hereunder with respect to the related
      Mortgage Loans. Any subservicing arrangement and the terms of the related
      Subservicing Agreement must provide for the servicing of such Mortgage Loans
      in
      a manner consistent with the servicing arrangements contemplated hereunder
      and
      the related Servicer shall cause any Subservicer to comply with the provisions
      of this Agreement (including, without limitation, to provide the information
      required to be delivered under Sections 3.13, 3.14 and 3.18 hereof), to the
      same
      extent as if such Subservicer were the related Servicer. Each Subservicer shall
      be (i) authorized to transact business in the state or states where the related
      Mortgaged Properties it is to service are situated, if and to the extent
      required by applicable law to enable the Subservicer to perform its obligations
      hereunder and under the Subservicing Agreement and (ii) a Freddie Mac or Fannie
      Mae approved mortgage servicer. The related Servicer shall promptly, upon
      request, provide to the Master Servicer, the Trustee and the Depositor a written
      description (in form and substance satisfactory to the Master Servicer, the
      Trustee and the Depositor) of the role and function of each Subservicer utilized
      by such Servicer, specifying (i) the identity of each such Subservicer, (ii)
      which (if any) of such Subservicer is “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB, and (iii) which elements
      of
      the Servicing Criteria will be addressed in assessments of compliance provided
      by each Subservicer identified pursuant to clause (ii) of this subsection;
      provided, however, that no Servicer shall be required to provide the information
      in clause (i) or (ii) of this subsection until such time that the applicable
      assessment of compliance is due in accordance with Section 3.14 of this
      Agreement. The related Servicer shall be responsible for obtaining from each
      Subservicer engaged by it and delivering to the Master Servicer any annual
      statement of compliance, assessment of compliance, attestation report and
      Sarbanes-Oxley related certification as and when required to be delivered.
      The
      related Servicer shall pay all fees of each of its Subservicers from its own
      funds.

     

    Notwithstanding
      the foregoing, with respect to the related Mortgage Loans, the related Servicer
      shall be entitled to outsource one or more separate servicing functions to
      any
      person that does not meet the eligibility requirements for a Subservicer (each
      such person, a “Subcontractor”), so long as such outsourcing does not constitute
      the delegation of such Servicer’s obligation to perform all or substantially all
      of the servicing of the related Mortgage Loans to such Subcontractor. The
      related Servicer shall promptly, upon request, provide to the Master Servicer,
      the Trustee and the Depositor a written description (in form and substance
      satisfactory to the Master Servicer, the Trustee and the Depositor) of the
      role
      and function of each Subcontractor utilized by such Servicer, specifying (i)
      the
      identity of each such Subcontractor, (ii) which (if any) of such Subservicer
      and
      Subcontractors are “participating in the servicing function” within the meaning
      of Item 1122 of Regulation AB, and (iii) which elements of the Servicing
      Criteria will be addressed in assessments of compliance provided by each
      Subcontractor identified pursuant to clause (ii) of this subsection. In such
      event, the use by a Servicer of any such Subcontractor shall not release such
      Servicer from any of its obligations hereunder and such Servicer shall remain
      responsible hereunder for all acts and omissions of such Subcontractor as fully
      as if such acts and omissions were those of the related Servicer, and the
      related Servicer shall pay all fees and expenses of the Subcontractor from
      the
      related Servicer’s own funds.

     

    As
      a
      condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB, the related Servicer shall cause any such Subcontractor used
      by
      it for the benefit of the Master Servicer, the Trustee and the Depositor to
      comply with the provisions of Sections 3.13, 3.14 and 3.18 of this Agreement
      to
      the same extent as if such Subcontractor were such Servicer. The related
      Servicer shall be responsible for obtaining from each Subcontractor and
      delivering to the Master Servicer, the Trustee and any Depositor any compliance
      statement, assessment of compliance, attestation report and Sarbanes-Oxley
      related certification required to be delivered by such Subcontractor under
      Section 3.13, 3.14 and 3.18, in each case as and when required to be
      delivered.

     

    At
      the
      cost and expense of the related Servicer, without any right of reimbursement
      from the related Custodial Account, such Servicer shall be entitled to terminate
      the rights and responsibilities of a Subservicer or Subcontractor and arrange
      for any servicing responsibilities to be performed by a successor Subservicer
      or
      Subcontractor; provided, however, that nothing contained herein shall be deemed
      to prevent or prohibit the related Servicer, at its option, from electing to
      service the related Mortgage Loans itself. In the event that the related
      Servicer’s responsibilities and duties under this Agreement are terminated
      pursuant to Section 8.01, such Servicer shall at its own cost and expense
      terminate the rights and responsibilities of each Subservicer and Subcontractor
      with respect to the related Mortgage Loans effective as of the date of such
      Servicer’s termination. The related Servicer shall pay all fees, expenses or
      penalties necessary in order to terminate the rights and responsibilities of
      each Subservicer and Subcontractor from such Servicer’s own funds without
      reimbursement from the Trust Fund.

     

    Notwithstanding
      the foregoing, no Servicer shall be relieved of its obligations hereunder with
      respect to the related Mortgage Loans and shall be obligated to the same extent
      and under the same terms and conditions as if it alone were servicing and
      administering the related Mortgage Loans. The related Servicer shall be entitled
      to enter into an agreement with a Subservicer or Subcontractor, as applicable,
      for indemnification of such Servicer by the Subservicer or Subcontractor, as
      applicable, and nothing contained in this Agreement shall be deemed to limit
      or
      modify such indemnification.

     

    Any
      Subservicing Agreement and any other transactions or services relating to the
      Mortgage Loans involving a Subservicer or Subcontractor shall be deemed to
      be
      between such Subservicer or Subcontractor and the related Servicer alone, and
      neither the Master Servicer nor the Trustee shall have any obligations, duties
      or liabilities with respect to such Subservicer or Subcontractor including
      any
      obligation, duty or liability of Master Servicer or the Trustee to pay such
      Subservicer’s or Subcontractor’s fees and expenses or any differential in the
      amount of the servicing fee paid hereunder and the amount necessary to induce
      any successor servicer to act as successor servicer under this Agreement and
      the
      transactions provided for in this Agreement. For purposes of remittances to
      the
      Securities Administrator pursuant to this Agreement, the related Servicer shall
      be deemed to have received a payment on a Mortgage Loan when a Subservicer
      or
      Subcontractor engaged by such Servicer has received such payment.

     

    Section
      3.04  Documents,
      Records and Funds in Possession of a Servicer To Be Held for
      Trustee.

     

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

     

    Section
      3.05  Maintenance
      of Hazard Insurance.

     

    (a)  The
      related Servicer shall cause to be maintained for each Mortgage Loan serviced
      by
      such Servicer hazard insurance with extended coverage on the Mortgaged Property
      in an amount which is at least equal to the lesser of (i) the Stated Principal
      Balance of such Mortgage Loan and (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, 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 related Servicer shall also cause to be
      maintained hazard 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 REO Property and (ii) the Stated
      Principal Balance of the related Mortgage Loan at the time it became an REO
      Property. The related 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 collected by the related 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 such 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 in accordance with the servicing standard
      set forth in Section 3.01) shall be deposited in the related Custodial
      Account, subject to withdrawal pursuant to Section 3.27. Any cost incurred
      by the related Servicer in maintaining any such insurance shall not, for the
      purpose of calculating distributions to related Certificateholders, be added
      to
      the Stated Principal Balance of the related Mortgage Loan, notwithstanding
      that
      the terms of such Mortgage Loan so permit. It is understood and agreed that
      no
      earthquake or other additional insurance is to be required of any Mortgagor
      other than pursuant to such applicable laws and regulations as shall at any
      time
      be in force and as shall require such additional insurance. If a 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 and flood insurance has been made available, the related Servicer shall
      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 Stated Principal
      Balance of the related Mortgage Loan and (ii) the maximum amount of such
      insurance available for the related Mortgaged Property under the national flood
      insurance program (assuming that the area in which such Mortgaged Property
      is
      located is participating in such program).

     

    In
      the
      event that the related Servicer shall obtain and maintain a blanket policy
      with
      an insurer acceptable to Fannie Mae or Freddie Mac, or having a General Policy
      Rating of B:VI or better in Best’s Key Rating Guide (or such other rating that
      is comparable to such rating) insuring against hazard losses on all of the
      Mortgage Loans serviced by such Servicer, it shall conclusively be deemed to
      have satisfied its obligations as set forth in the first two sentences of this
      Section 3.05, it being understood and agreed that such policy may contain a
      deductible clause, in which case the related Servicer shall, in the event that
      there shall not have been maintained on the related Mortgaged Property or REO
      Property a policy complying with the first two sentences of this
      Section 3.05, and there shall have been one or more losses which would have
      been covered by such policy, deposit to the related Custodial Account maintained
      by such Servicer from its own funds the amount not otherwise payable under
      the
      blanket policy because of such deductible clause. In connection with its
      activities as administrator and servicer of the related Mortgage Loans, the
      related 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
      related 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 such 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
      such Servicer has obtained a waiver of such requirements from Fannie Mae or
      Freddie Mac. The related Servicer shall provide the Master Servicer, upon
      request, with copies of such insurance policies and fidelity bond (or waiver
      thereof). The related Servicer shall also maintain a fidelity bond in the form
      and amount that would meet the requirements of Fannie Mae or Freddie Mac, unless
      such Servicer has obtained a waiver of such requirements from Fannie Mae or
      Freddie Mac. The related Servicer shall be deemed to have complied with this
      provision if one of its Affiliates 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 such Servicer. Any such errors and
      omissions policy and fidelity bond shall by its terms not be cancelable without
      thirty (30) days’ prior written notice to the Master Servicer. The related
      Servicer shall also cause its Subservicers to maintain a policy of insurance
      covering errors and omissions and a fidelity bond which would meet such
      requirements.

     

    Section
      3.06  Presentment
      of Claims and Collection of Proceeds.

     

    The
      related Servicer shall prepare and present on behalf of the Trustee and the
      Certificateholders all claims under the applicable Insurance Policies and take
      such actions (including the negotiation, settlement, compromise or enforcement
      of the insured’s claim) as shall be necessary to realize recovery under such
      Insurance Policies. Any proceeds disbursed to the related Servicer in respect
      of
      such Insurance Policies shall, within two Business Days of its receipt, be
      deposited in the related Custodial Account, except that any amounts realized
      that are to be applied to the repair or restoration of the related Mortgaged
      Property as a condition precedent to the presentation of claims on the related
      Mortgage Loan to the insurer under any applicable Insurance Policy need not
      be
      so deposited (or remitted).

     

    Section
      3.07  Maintenance
      of Insurance Policies.

     

    The
      related Servicer shall not take any action that would result in noncoverage
      under any applicable Insurance Policy of any loss which, but for the actions
      of
      such Servicer would have been covered thereunder. The related Servicer shall
      use
      its best efforts to keep in force and effect (to the extent that the related
      Mortgage Loan requires the Mortgagor to maintain such insurance), any applicable
      Insurance Policy. The related Servicer shall not cancel or refuse to renew
      any
      Insurance Policy that is in effect at the date of the initial issuance of the
      Mortgage Note and is required to be kept in force hereunder.

     

    Section
      3.08  Reserved.

     

    Section
      3.09  Realization
      Upon Defaulted Mortgage Loans; Determination of Excess Liquidation Proceeds
      and
      Realized Losses; Repurchases of Certain Mortgage Loans.

     

    (a)  The
      related Servicer shall use reasonable efforts to foreclose upon or otherwise
      comparably convert the ownership of properties securing such of the Mortgage
      Loans serviced by such Servicer as come into and continue in default and as
      to
      which no satisfactory arrangements can be made for collection of delinquent
      payments. In connection with such foreclosure or other conversion, the related
      Servicer shall follow such practices and procedures as it shall deem necessary
      or advisable and as shall be normal and usual in its general mortgage servicing
      activities and the requirements of the insurer under any Required Insurance
      Policy; provided that the related Servicer shall not be required to expend
      its
      own funds in connection with any foreclosure or towards the restoration of
      any
      property unless it shall determine (i) that such restoration and/or foreclosure
      will increase the proceeds of liquidation of the related Mortgage Loan after
      reimbursement to itself of such expenses and (ii) that such expenses will be
      recoverable to it through Liquidation Proceeds (respecting which it shall have
      priority for purposes of withdrawals from the related Custodial Account). If
      a
      Mortgage Loan becomes 180 days delinquent and the related Servicer, in its
      reasonable good faith judgment, determines that the recovery of principal with
      respect to such Mortgage Loan will not materially be in excess of the cost
      of
      foreclosure or other liquidation of the Mortgage Loan, then the related Servicer
      will be deemed to have made a Final Recovery Determination with respect to
      such
      Mortgage Loan and the related Servicer may charge off such Mortgage Loan at
      any
      time thereafter. If the related Servicer reasonably believes that Liquidation
      Proceeds with respect to any such Mortgage Loan would not be increased as a
      result of such foreclosure or other action, such Mortgage Loan will be
      charged-off and will become a Liquidated Loan. The related Servicer will give
      notice of any such charge-off to the Securities Administrator. The related
      Servicer shall be responsible for all other costs and expenses incurred by
      it in
      any such proceedings; provided that such costs and expenses shall be Servicing
      Advances and that it shall be entitled to reimbursement thereof from the
      proceeds of liquidation of the related Mortgaged Property, as contemplated
      in
      Section 3.27. If the related Servicer has knowledge that a Mortgaged
      Property that such Servicer is contemplating acquiring in foreclosure or by
      deed-in-lieu of foreclosure is located within a one-mile radius of any site
      with
      environmental or hazardous waste risks known to such Servicer, such Servicer
      shall, prior to acquiring the Mortgaged Property, consider such risks and only
      take action in accordance with its established environmental review
      procedures.

     

    With
      respect to any REO Property, the deed or certificate of sale shall be taken
      in
      the name of the Trustee for the benefit of the related Certificateholders (or
      the Trustee’s nominee on behalf of the related Certificateholders). The
      Trustee’s name shall be placed on the title to such REO Property solely as the
      Trustee hereunder and not in its individual capacity. The related Servicer
      shall
      ensure that the title to such REO Property references this Agreement and the
      Trustee’s capacity hereunder. Pursuant to its efforts to sell such REO Property,
      the related Servicer shall either itself or through an agent selected by such
      Servicer protect and conserve such REO Property in the same manner and to such
      extent as is customary in the locality where such REO Property is located and
      may, incident to its conservation and protection of the interests of the related
      Certificateholders, rent the same, or any part thereof, as such Servicer deems
      to be in the best interest of such Servicer and the related Certificateholders
      for the period prior to the sale of such REO Property. The related Servicer
      shall prepare for and deliver to the Securities Administrator a statement with
      respect to each REO Property that has been rented showing the aggregate rental
      income received and all expenses incurred in connection with the management
      and
      maintenance of such REO Property at such times as is necessary to enable the
      Securities Administrator to comply with the reporting requirements of the REMIC
      Provisions. The net monthly rental income, if any, from such REO Property shall
      be deposited in the related Custodial Account no later than the close of
      business on each Determination Date. The related Servicer shall perform the
      tax
      reporting and withholding related to foreclosures, abandonments and cancellation
      of indebtedness income as specified by Sections 6050H, 6050J and 6050P of the
      Code by preparing and filing such tax and information returns, as may be
      required.

     

    In
      the
      event that the Trust Fund acquires any Mortgaged Property as aforesaid or
      otherwise in connection with a default or imminent default on a Mortgage Loan,
      the related Servicer shall dispose of such Mortgaged Property prior to three
      years after its acquisition by the Trust Fund or, at the expense of the Trust
      Fund, request from the Internal Revenue Service more than 60 days prior to
      the
      day on which such three-year period would otherwise expire, an extension of
      the
      three-year grace period. The Trustee and the Securities Administrator shall
      be
      supplied with an Opinion of Counsel (such opinion not to be an expense of the
      Trustee, the Securities Administrator or the Trust Fund) to the effect that
      the
      holding by the Trust Fund of such Mortgaged Property subsequent to such
      three-year period will not result in the imposition of taxes on “prohibited
      transactions” of REMIC I as defined in section 860F of the Code or cause REMIC I
      to fail to qualify as a REMIC at any time that any Certificates are outstanding,
      in which case the Trust Fund may continue to hold such Mortgaged Property
      (subject to any conditions contained in such Opinion of Counsel).
      Notwithstanding any other provision of this Agreement, no Mortgaged Property
      acquired by the Trust Fund shall be rented (or allowed to continue to be rented)
      or otherwise used for the production of income by or on behalf of the Trust
      Fund
      in such a manner or pursuant to any terms that would (i) cause such Mortgaged
      Property to fail to qualify as “foreclosure property” within the meaning of
      section 860G(a)(8) of the Code or (ii) subject REMIC I to the imposition of
      any
      federal, state or local income taxes on the income earned from such Mortgaged
      Property under section 860G(c) of the Code or otherwise, unless the related
      Servicer has agreed to indemnify and hold harmless the Trust Fund with respect
      to the imposition of any such taxes.

     

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

     

    The
      Liquidation Proceeds from any liquidation of a Mortgage Loan, net of any payment
      to the related Servicer as provided above, shall be deposited in the related
      Custodial Account on the next succeeding Determination Date following receipt
      thereof for distribution on the related Distribution Date, except that any
      Excess Liquidation Proceeds shall be retained by the related Servicer as
      additional servicing compensation.

     

    The
      proceeds of any Liquidated Loan, as well as any recovery resulting from a
      partial collection of Liquidation Proceeds or any income from an REO Property,
      shall be applied in the following order of priority: first, to reimburse the
      related Servicer for any related unreimbursed Servicing Advances and Servicing
      Fees, pursuant to Section 3.27 or this Section 3.09; second, to
      reimburse the related Servicer for any unreimbursed Advances, pursuant to
      Section 3.27 or this Section 3.09; third, to accrued and unpaid
      interest (to the extent no Advance has been made for such amount) on the
      Mortgage Loan or related REO Property, at the Net Mortgage Rate to the first
      day
      of the month in which such amounts are required to be distributed; and fourth,
      as a recovery of principal of the Mortgage Loan.

     

    (b)  On
      each
      Determination Date, the related Servicer shall determine the respective
      aggregate amounts of Excess Liquidation Proceeds and Realized Losses, if any,
      with respect to any Mortgage Loan for the related Prepayment Period and report
      the same to the Securities Administrator pursuant to Section 3.28.

     

    (c)  The
      related Servicer hereby covenants to the parties hereto that it has no intent
      to
      foreclose on any Mortgage Loan serviced by such Servicer based on the
      delinquency characteristics as of the Closing Date; provided, however, that
      the
      foregoing does not prevent the related Servicer from initiating foreclosure
      proceedings on any date hereafter if the facts and circumstances of such
      Mortgage Loans including delinquency characteristics in the related Servicer’s
      discretion so warrant such action.

     

    Section
      3.10  Servicing
      Compensation.

     

    As
      compensation for its activities hereunder, the related Servicer shall be
      entitled to retain or withdraw from the related Custodial Account out of each
      payment of interest on each Mortgage Loan serviced by such Servicer included
      in
      the Trust Fund an amount equal to the Servicing Fee. In addition, the related
      Servicer shall be entitled to recover any unpaid Servicing Fees payable to
      it
      out of Liquidation Proceeds, Insurance Proceeds or condemnation proceeds related
      to the Mortgage Loans to the extent permitted by Section 3.27.

     

    Additional
      servicing compensation with respect to Mortgage Loans in the form of any Excess
      Liquidation Proceeds, assumption fees, late payment charges, insufficient funds
      charges and ancillary income to the extent such fees or charges are received
      by
      the related Servicer, all income and gain net of any losses realized from
      Permitted Investments with respect to funds in or credited to the related
      Custodial Account shall be retained by such Servicer to the extent not required
      to be deposited in such Custodial Account pursuant to Section 3.27. The
      related Servicer shall be required to pay all expenses incurred by it in
      connection with its servicing activities hereunder (including payment of any
      premiums for hazard insurance, as required by Section 3.05 and maintenance
      of the other forms of insurance coverage required by Section 3.07 and shall
      not be entitled to reimbursement therefor except as specifically provided
      herein.

     

    Section
      3.11  REO
      Property.

     

    (a)  In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      related Mortgage Loan, the deed or certificate of sale shall be issued to the
      Trustee, or to its nominee, on behalf of the related Certificateholders. The
      related Servicer shall sell any REO Property as expeditiously as possible and
      in
      accordance with the provisions of this Agreement. Pursuant to its efforts to
      sell such REO Property, the related Servicer shall protect and conserve such
      REO
      Property in the manner and to the extent required herein, in accordance with
      the
      REMIC Provisions.

     

    (b)  The
      related Servicer shall deposit all funds collected and received in connection
      with the operation of any REO Property into the related Custodial
      Account.

     

    (c)  The
      related Servicer, upon the final disposition of any REO Property, shall be
      entitled to reimbursement for any related unreimbursed Advances, unreimbursed
      Servicing Advances or Servicing Fees from Liquidation Proceeds received in
      connection with the final disposition of such REO Property; provided, that
      any
      such unreimbursed Advances or Servicing Fees as well as any unpaid Servicing
      Fees may be reimbursed or paid, as the case may be, prior to final disposition,
      out of any net rental income or other net amounts derived from such REO
      Property.

     

    Section
      3.12  Liquidation
      Reports.

     

    Upon
      the
      foreclosure of any Mortgaged Property or the acquisition thereof by the Trust
      Fund pursuant to a deed-in-lieu of foreclosure, the related Servicer shall
      submit a liquidation report to the Trustee containing such information as shall
      be mutually acceptable to the Servicer and the Trustee with respect to such
      Mortgaged Property.

     

    Section
      3.13  Annual
      Statement as to Compliance.

     

    (a)  The
      related Servicer, the Master Servicer and the Securities Administrator shall
      deliver or otherwise make available (and shall cause each Servicing Function
      Participant engaged by it to deliver) to the Depositor and the Securities
      Administrator, and in the case of the Master Servicer, to the Trustee on or
      before March 15 of each year, commencing in March 2007, an Officer’s Certificate
      stating, as to the signer thereof, that (A) a review of such party’s activities
      during the preceding calendar year or portion thereof and of such Servicing
      Function Participant’s performance under this Agreement, or such other
      applicable agreement in the case of a Servicing Function Participant, has been
      made under such officer’s supervision and (B) to the best of such officer’s
      knowledge, based on such review, such party has fulfilled all its obligations
      under this Agreement, or such other applicable agreement in the case of a
      Servicing Function Participant (other than the related Servicer, the Master
      Servicer or the Securities Administrator), in all material respects throughout
      such year or portion thereof, or, if there has been a failure to fulfill any
      such obligation in any material respect, specifying each such failure known
      to
      such officer and the nature and status thereof.

     

    (b)  (i)For
      so
      long as the Trust Fund is subject to Exchange Act reporting requirements,
      failure of the related Servicer to comply timely with this Section 3.13 shall
      be
      deemed a Servicer Default as to such Servicer, without any cure period, and
      the
      Master Servicer shall notify the Trustee and the Trustee may, in addition to
      whatever rights the Master Servicer or the Trustee, as applicable, may have
      under this Agreement and at law or in equity or to damages, including injunctive
      relief and specific performance, terminate all the rights and obligations of
      such Servicer under this Agreement and in and to the related Mortgage Loans
      and
      the proceeds thereof without compensating such Servicer for the same. The Master
      Servicer or the Trustee, as applicable, shall so terminate the defaulting
      Servicer by delivery of notice thereof via first class mail, facsimile or
      electronic mail. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary.

     

    (ii) After
      the
      Trust Fund ceases to be subject to Exchange Act reporting requirements, failure
      of the related Servicer to comply timely with this Section 3.13 shall be deemed
      a Servicer Default as provided for in Section 8.01(a)(ix). The Master Servicer
      shall notify the Trustee and the Trustee may, terminate the defaulting Servicer
      by delivery of notice thereof via first class mail, facsimile or electronic
      mail.

     

    (c)  The
      Master Servicer shall include all annual statements of compliance received
      by it
      from the related Servicer and any Servicing Function Participant with its own
      annual statement of compliance to be submitted to the Securities Administrator
      pursuant to this Section 3.13.

     

    (d)  Copies
      of
      any Master Servicer annual statements of compliance required to be delivered
      hereunder shall be provided to any Certificateholder upon request at the Master
      Servicer’s expense.

     

    (e)  In
      the
      event the related Servicer, the Master Servicer, the Securities Administrator
      or
      any other Servicing Function Participant is terminated or resigns pursuant
      to
      the terms of this Agreement, or any applicable agreement in the case of such
      other Servicing Function Participant, as the case may be, such party shall
      provide or cause such other Servicing Function Participant to provide an
      Officer’s Certificate pursuant to this Section 3.13 with respect to the period
      of time it was subject to this Agreement or any other applicable agreement,
      as
      the case may be.

     

    Section
      3.14  Assessments
      of Compliance and Attestation Reports.

     

    (a)  By
      March
      15 of each year, commencing in March 2007, the related Servicer, the Master
      Servicer and the Securities Administrator, each at its own expense and pursuant
      to Item 1122(a) of Regulation AB, shall furnish or otherwise make available,
      and
      shall cause any Servicing Function Participant engaged by it to furnish, which
      in each case shall not be an expense of the Trust Fund, to the Securities
      Administrator and the Depositor, a report on an assessment of compliance with
      the Relevant Servicing Criteria that contains (A) a statement by such party
      of
      its responsibility for assessing compliance with the Relevant Servicing
      Criteria, (B) a statement that such party used the Relevant Servicing Criteria
      to assess compliance with the Relevant Servicing Criteria, (C) such party’s
      assessment of compliance with the Relevant Servicing Criteria for the period
      consisting of the prior calendar year, including, if there has been any material
      instance of noncompliance with the Relevant Servicing Criteria, a discussion
      of
      each such failure and the nature and status thereof, and (D) a statement that
      a
      registered public accounting firm has issued an attestation report on such
      party’s assessment of compliance with the Relevant Servicing Criteria for the
      period consisting of the prior calendar year.

     

    (b)  No
      later
      than the end of each calendar year, the related Servicer and the Master Servicer
      shall forward to the Securities Administrator and the Depositor, the name of
      each Servicing Function Participant engaged by it and what Relevant Servicing
      Criteria will be addressed in the report on assessment of compliance prepared
      by
      such Servicing Function Participant; provided, however, that the Master Servicer
      need not provide such information to the Securities Administrator so long as
      the
      Master Servicer and the Securities Administrator are the same entity. When
      the
      related Servicer and the Master Servicer (or any Servicing Function Participant
      engaged by them) submit their assessments to the Securities Administrator,
      such
      parties will also at such time include the assessment (and attestation pursuant
      to paragraph (c) below) of each Servicing Function Participant engaged by it.
      

     

    Promptly
      after receipt of each such report on assessment of compliance, (i) the Depositor
      shall review each such report and, if applicable, consult with the related
      Servicer, the Master Servicer, the Securities Administrator and any Servicing
      Function Participant engaged by such parties as to the nature of any material
      instance of noncompliance with the Relevant Servicing Criteria by each such
      party, and (ii) the Securities Administrator shall confirm that the assessments,
      taken as a whole, address all of the Servicing Criteria and taken individually
      address the Relevant Servicing Criteria for each party as set forth on Exhibit
      L
      and on any similar exhibit set forth in the Servicing Agreement in respect
      of
      Wachovia, and notify the Depositor of any exceptions. 

     

    In
      the
      event a Servicing Function Participant is terminated, assigns its rights and
      obligations under, or resigns pursuant to the terms of this Agreement, or any
      other applicable agreement, as the case may be, such party shall provide, or
      cause a Servicing Function Participant engaged by it to provide, a report on
      assessment of compliance pursuant to this Section 3.14 with respect to the
      period of time it was subject to this Agreement or any other applicable
      agreement, as the case may be.

     

    The
      Master Servicer shall include such annual report on assessment of compliance
      with its own assessment of compliance to be submitted to the Securities
      Administrator pursuant to this Section.

     

    (c)  By
      March
      15 of each year, commencing in March 2007, the related Servicer, the Master
      Servicer and the Securities Administrator, each at its own expense, shall cause,
      and shall cause any Servicing Function Participant engaged by such party to
      cause, which in each case shall not be an expense of the trust, a registered
      public accounting firm (which may also render other services to such Servicing
      Function Participants) and that is a member of the American Institute of
      Certified Public Accountants to furnish a report to the Master Servicer and
      Securities Administrator to the effect that (i) it has obtained a representation
      regarding certain matters from the management of such party, which includes
      an
      assertion that such party has complied with the Relevant Servicing Criteria,
      and
      (ii) on the basis of an examination conducted by such firm in accordance with
      standards for attestation engagements issued or adopted by the PCAOB, it is
      expressing an opinion as to whether such party’s compliance with the Relevant
      Servicing Criteria was fairly stated in all material respects, or it cannot
      express an overall opinion regarding such party’s assessment of compliance with
      the Relevant Servicing Criteria. In the event that an overall opinion cannot
      be
      expressed, such registered public accounting firm shall state in such report
      why
      it was unable to express such an opinion. Such report must be available for
      general use and not contain restricted use language.

     

    Promptly
      after receipt of such report from a Servicing Function Participant, the
      Securities Administrator shall confirm that each assessment submitted pursuant
      to paragraph (a) above is coupled with an attestation meeting the requirements
      of this Section and notify the Depositor of any exceptions. 

     

    The
      Master Servicer shall include each such attestation with its own attestation
      to
      be submitted to the Securities Administrator pursuant to this
      Section.

     

    In
      the
      event any Servicing Function Participant is terminated, assigns its rights
      and
      duties under, or resigns pursuant to the terms of this Agreement, or any other
      applicable agreement, as the case may be, such party shall cause a registered
      public accounting firm to provide an attestation pursuant to this Section 3.14
      with respect to the period of time it was subject to this Agreement or any
      applicable subservicing agreement, as the case may be.

     

    (d)  (i)For
      so
      long as the Trust Fund is subject to Exchange Act reporting requirements,
      failure of the related Servicer to comply timely with this Section 3.14 shall
      be
      deemed a Servicer Default as to such Servicer, automatically, without notice
      and
      without any cure period, and the Master Servicer shall notify the Trustee and
      the Trustee may, in addition to whatever rights the Master Servicer or the
      Trustee, as applicable, may have under this Agreement and at law or in equity
      or
      to damages, including injunctive relief and specific performance, terminate
      all
      the rights and obligations of such Servicer under this Agreement and in and
      to
      the related Mortgage Loans and the proceeds thereof without compensating the
      Servicer for the same. The Trustee shall so terminate the defaulting Servicer
      by
      delivery of notice thereof via first class mail, facsimile or electronic mail.
      This paragraph shall supersede any other provision in this Agreement or any
      other agreement to the contrary.

     

    (ii) After
      the
      Trust Fund ceases to be subject to Exchange Act reporting requirements, failure
      of the related Servicer to comply timely with this Section 3.14 shall be deemed
      a Servicer Default as provided for in Section 8.01(a)(ix). The Trustee may
      terminate the defaulting Servicer by delivery of notice thereof via first class
      mail, facsimile or electronic mail.

     

    Section
      3.15  Books
      and Records.

     

    The
      related Servicer shall be responsible for maintaining, and shall maintain,
      a
      complete set of books and records for the Mortgage Loans serviced by such
      Servicer which shall be appropriately identified in such Servicer’s computer
      system to clearly reflect the ownership of the Mortgage Loans by the Trust.
      In
      particular, the related Servicer shall maintain in its possession, available
      for
      inspection by the Trustee and the Master Servicer and shall deliver to the
      Trustee or the Master Servicer upon reasonable prior request and during normal
      business hours, evidence of compliance with all federal, state and local laws,
      rules and regulations. To the extent that original documents are not required
      for purposes of realization of Liquidation Proceeds or Insurance Proceeds,
      documents maintained by the related Servicer may be in the form of microfilm
      or
      microfiche or such other reliable means of recreating original documents,
      including, but not limited to, optical imagery techniques so long as the related
      Servicer complies with the requirements of Accepted Servicing
      Practices.

     

    The
      related Servicer shall maintain with respect to each Mortgage Loan serviced
      by
      such Servicer and shall upon reasonable prior request and during normal business
      hours make available for inspection by the Trustee and the Master Servicer
      the
      related servicing file during the time such Mortgage Loan is subject to this
      Agreement and thereafter in accordance with applicable law.

     

    Section
      3.16  The
      Trustee.

     

    The
      Trustee shall furnish the Servicers with any powers of attorney and other
      documents prepared and submitted by the Servicers to the Trustee in a form
      as
      mutually agreed upon and necessary or appropriate to enable each Servicer to
      service and administer the related Mortgage Loans and REO
      Properties.

     

    The
      Trustee shall provide access to the records and documentation in possession
      of
      the Trustee regarding the related Mortgage Loans and REO Property and the
      servicing thereof to the Certificateholders, the FDIC, and the supervisory
      agents and examiners of the FDIC, such access being afforded only upon
      reasonable prior written request and during normal business hours at the office
      of the Trustee; provided, however, that, unless otherwise required by law,
      the
      Trustee shall not be required to provide access to such records and
      documentation if the provision thereof would violate the legal right to privacy
      of any Mortgagor. The Trustee shall allow representatives of the above entities
      to photocopy any of the records and documentation and shall provide equipment
      for that purpose at a charge that covers the Trustee’s actual
      costs.

     

    The
      Trustee shall execute and deliver as directed in writing by the Servicer any
      court pleadings, requests for trustee’s sale or other documents necessary or
      desirable to (i) the foreclosure or trustee’s sale with respect to a Mortgaged
      Property; (ii) any legal action brought to obtain judgment against any Mortgagor
      on the Mortgage Note; (iii) obtain a deficiency judgment against the Mortgagor;
      or (iv) enforce any other rights or remedies provided by the Mortgage Note
      or
      otherwise available at law or equity.

     

    Section
      3.17  REMIC-Related
      Covenants.

     

    For
      as
      long as each REMIC shall exist, the Trustee and the Securities Administrator
      shall act in accordance herewith to treat each REMIC as a REMIC, and the Trustee
      and the Securities Administrator shall comply with any directions of the
      Sponsor, the Servicers or the Master Servicer with respect to such treatment.
      In
      particular, the Trustee shall not (a) knowingly sell or permit the sale of
      all
      or any portion of the Mortgage Loans or of any investment of deposits in an
      Account unless such sale is as a result of a repurchase of the Mortgage Loans
      pursuant to this Agreement or the Trustee has received a REMIC Opinion prepared
      at the expense of the Trust Fund; and (b) other than with respect to a
      substitution pursuant to the Mortgage Loan Purchase Agreement or
      Section 2.04 of this Agreement, as applicable, accept any contribution to
      any REMIC after the Startup Day without receipt of a REMIC Opinion.

     

    Section
      3.18  Annual
      Sarbanes-Oxley Certification; Additional Information.

     

    (a)  The
      related Servicer, the Master Servicer and the Securities Administrator shall
      and
      shall cause any Servicing Function Participant engaged by such party to, provide
      to the Certifying Person, by March 15 of each year in which the Trust Fund
      is
      subject to the reporting requirements of the Exchange Act and otherwise within
      a
      reasonable period of time upon request, a certification (each, a “Back-Up
      Certification”),
      in
      the form attached hereto as Exhibit
      M,
      upon
      which the Certifying Person, the entity for which the Certifying Person acts
      as
      an officer, and such entity’s officers, directors and Affiliates (collectively
      with the Certifying Person, “Certification
      Parties”)
      can
      reasonably rely. The senior officer of the Master Servicer in charge of the
      master servicing function shall prepare a Sarbanes-Oxley Certification and
      sign
      the same on behalf of the Trust Fund serving as the “Certifying Person”. Such
      officer of the Certifying Person can be contacted by e-mail at or
      by
      facsimile at (410) 715-2380. In the event the related Servicer, the Master
      Servicer or the Securities Administrator, or any Servicing Function Participant
      engaged by such party, is terminated or resigns pursuant to the terms of this
      Agreement, or any other applicable agreement, as the case may be, such party
      shall provide a Back-Up Certification to the Certifying Person pursuant to
      this
      Section 3.18 with respect to the period of time it was subject to this Agreement
      or any other applicable agreement, as the case may be.

     

    Notwithstanding
      the foregoing, (i) the Master Servicer and the Securities Administrator shall
      not be required to deliver a Back-Up Certification to each other if each is
      the
      same Person and the Master Servicer is the Certifying Person and (ii) the Master
      Servicer shall not be obligated to execute any Sarbanes-Oxley Certification
      in
      the event that it does not receive a Back-Up Certification from any party
      required to deliver such Back-Up Certification pursuant to this Section or
      the
      Custodial Agreement; provided, however, in the event the Master Servicer shall
      not be required to execute a Sarbanes-Oxley Certification pursuant to clause
      (ii), the Master Servicer shall prepare such Sarbanes-Oxley Certification and
      deliver it to the Depositor for execution.

     

    (b)  The
      related Servicer shall provide (or shall cause each Subservicer or Subcontractor
      to provide) to the Master Servicer, the Securities Administrator and the
      Depositor prompt notice and a description of the occurrence of any of the
      following: 

     

    (i)  any
      Servicer Default with respect to such Servicer under the terms of this
      Agreement, any merger, consolidation or sale of substantially all of the assets
      of such Servicer, such Servicer’s engagement of any Subservicer to perform or
      assist in the performance of any of such Servicer’s obligations under this
      Agreement, any material litigation or governmental proceedings involving such
      Servicer (or any of its Subservicers or Subcontractors, as applicable), and
      any
      affiliation or other significant relationship between such Servicer (or any
      of
      its Subservicers or Subcontractors, as applicable) and other transaction
      parties.

     

    (ii)  As
      a
      condition to the succession to the related Servicer or any Subservicer as
      servicer or subservicer under this Agreement by any Person (i) into which such
      Servicer or such Subservicer may be merged or consolidated, or (ii) which may
      be
      appointed as a successor to such Servicer or any Subservicer, such Servicer
      shall provide to the Sponsor, Depositor, Master Servicer and Securities
      Administrator at least fifteen (15) calendar days prior to the effective date
      of
      such succession or appointment, (x) written notice and all information
      reasonably requested to the Sponsor, Depositor, Master Servicer and Securities
      Administrator of such succession or appointment and (y) in writing and in form
      and substance reasonably satisfactory to the Sponsor, Depositor, Master Servicer
      and Securities Administrator in order to comply with the reporting obligations
      under Item 6.02 of Form 8-K.

     

    (iii)  If
      the
      related Servicer or any Servicing Function Participant engaged by such Servicer
      has knowledge of the occurrence of any of the events described in this clause
      (iii), then no later than ten days prior to the deadline for the filing of
      any
      Distribution Report on Form 10-D in respect of any Trust Fund that includes
      any
      of the Mortgage Loans serviced by such Servicer or any Subservicer, such
      Servicer shall provide (or cause such Subservicer to provide) to the Master
      Servicer and Securities Administrator notice of the occurrence of any of the
      following events along with all information, data, and materials related thereto
      as may be required to be included in the related Distribution Report on Form
      10-D (as specified in the provisions of Regulation AB referenced
      below):

     

    (A)  any
      material modifications, extensions or waivers of pool asset terms, fees,
      penalties or payments during the distribution period or that have cumulatively
      become material over time (Item 1121(a)(11) of Regulation AB);

     

    (B)  material
      breaches of pool asset representations or warranties or transaction covenants
      of
      such Servicer (Item 1121(a)(12) of Regulation AB); and

     

    (C)  information
      regarding any material pool asset changes (such as, additions, substitutions
      or
      repurchases).

     

    (c)  The
      related Servicer shall provide to the Master Servicer and the Securities
      Administrator such additional information as the Master Servicer may reasonably
      request, including evidence of the authorization of the person signing any
      certification or statement, financial information and reports and of the
      fidelity bond and errors and omissions insurance policy required to be
      maintained by such Servicer pursuant to this Agreement, and such other
      information related to such Servicer or any Servicing Function Participant
      engaged by such Servicer or its performance hereunder or other applicable
      agreement.

     

    Section
      3.19  Release
      of Mortgage Files.

     

    (a)  Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by
      the related Servicer of a notification that payment in full has been escrowed
      in
      a manner customary for such purposes for payment to Certificateholders on the
      next Distribution Date, such Servicer will (or if such Servicer does not, the
      Master Servicer may) promptly furnish to the Trustee and the Custodian, on
      behalf of the Trustee, two copies of a request for release substantially in
      the
      form attached to the Custodial Agreement signed by an Authorized Servicer
      Representative or in a mutually agreeable electronic format which will, in
      lieu
      of a signature on its face, originate from an Authorized Servicer Representative
      (which certification shall include a statement to the effect that all amounts
      received in connection with such payment that are required to be deposited
      in
      the related Custodial Account pursuant to Article V have been or will be so
      deposited) and shall request that the Custodian, on behalf of the Trustee,
      deliver to the related Servicer the related Mortgage File. Within five (5)
      Business Days of receipt of such certification and request, the Custodian,
      on
      behalf of the Trustee, shall release the related Mortgage File to the related
      Servicer and the Trustee and the Custodian shall have no further responsibility
      with regard to such Mortgage File. Upon any such payment in full, the related
      Servicer is authorized, to give, as agent for the Trustee, as the mortgagee
      under the Mortgage that secured the related Mortgage Loan, an instrument of
      satisfaction (or assignment of mortgage without recourse) regarding the
      Mortgaged Property subject to the Mortgage, which instrument of satisfaction
      or
      assignment, as the case may be, shall be delivered to the Person or Persons
      entitled thereto against receipt therefor of such payment, it being understood
      and agreed that no expenses incurred in connection with such instrument of
      satisfaction or assignment, as the case may be, shall be chargeable to the
      related Custodial Account.

     

    (b)  From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan
      and in accordance with this Agreement, the Trustee shall execute such documents
      as shall be prepared and furnished to the Trustee by the related Servicer (in
      form reasonably acceptable to the Trustee) and as are necessary to the
      prosecution of any such proceedings. The Custodian, on behalf of the Trustee,
      shall, upon the written request of the related Servicer, and delivery to the
      Custodian, on behalf of the Trustee, of two copies of a request for release
      signed by an Authorized Servicer Representative substantially in the form
      attached to the Custodial Agreement (or in a mutually agreeable electronic
      format which will, in lieu of a signature on its face, originate from an
      Authorized Servicer Representative), release the related Mortgage File held
      in
      its possession or control to the related Servicer. Such request for release
      shall obligate the related Servicer to return the Mortgage File to the Custodian
      on behalf of the Trustee, when the need therefor by such Person no longer exists
      unless the Mortgage Loan shall be liquidated, in which case, upon receipt of
      a
      certificate of an Authorized Servicer Representative similar to that hereinabove
      specified, the Mortgage File shall be released by the Custodian, on behalf
      of
      the Trustee, to the related Servicer.

     

    Section
      3.20  Documents,
      Records and Funds in Possession of the Servicers to be held for
      Trustee.

     

    (a)
       The
      related Servicer (to the extent required by this Agreement or the Servicing
      Agreement, as applicable) shall transmit to the Trustee or the Custodian such
      documents and instruments coming into the possession of such Servicer from
      time
      to time as are required by the terms hereof to be delivered to the Trustee
      or
      the Custodian. Any funds received by the related Servicer in respect of any
      Mortgage Loan serviced by such Servicer or which otherwise are collected by
      such
      Servicer as Liquidation Proceeds or Insurance Proceeds in respect of any
      Mortgage Loan shall be held for the benefit of the Trustee and the
      Certificateholders subject to the right of such Servicer to retain its Servicing
      Fee and other amounts as provided in this Agreement or the related Servicing
      Agreement, as applicable.

     

    Section
      3.21  Possession
      of Certain Insurance Policies and Documents.

     

    The
      related Servicer shall retain possession and custody of the originals (to the
      extent available) of any Insurance Policies, or certificate of insurance if
      applicable, and any certificates of renewal as to the foregoing as may be issued
      from time to time that comes into the possession of such Servicer, as
      contemplated by this Agreement. Until all amounts distributable in respect
      of
      the Certificates have been distributed in full, the Trustee (or the Custodian,
      as directed by the Trustee) shall retain possession and custody of each Mortgage
      File in accordance with and subject to the terms and conditions of this
      Agreement.

     

    Section
      3.22  [Reserved].

     

    Section
      3.23  [Reserved].

     

    Section
      3.24  Optional
      Purchase of Certain Mortgage Loans.

     

    With
      respect to any Mortgage Loan which is delinquent in payment by ninety-one (91)
      days or more or is an REO Property, the Sponsor shall have the right to purchase
      such Mortgage Loan or REO Property from the Trust Fund at a price equal to
      the
      Purchase Price. The Purchase Price shall be remitted to the related Servicer
      for
      deposit in the related Custodial Account and remitted by the Servicer to the
      Securities Administrator on the Servicer Remittance Date in the month
      immediately following the month in which the Purchase Price was deposited in
      the
      related Custodial Account.

     

    In
      addition, the Sponsor shall, at its option, purchase any Mortgage Loan from
      the
      Trust if the first or second Due Date for such Mortgage Loan is subsequent
      to
      the Cut-off Date and the first or second Monthly Payment is not made within
      thirty (30) days of such Due Date. Such purchase shall be made at a price equal
      to the Purchase Price.

     

    If
      at any
      time the Sponsor remits to the related Servicer a payment for deposit in the
      related Custodial Account covering the amount of the Purchase Price for such
      a
      Mortgage Loan and the related Servicer delivers an Officer’s Certificate to the
      Trustee (which shall be delivered no later than two (2) Business Days following
      such deposit) certifying that the Purchase Price has been deposited in the
      related Custodial Account, the Trustee shall execute the assignment of such
      Mortgage Loan at the request of the Sponsor without recourse to the Sponsor
      which shall succeed to all the Trustee’s, right, title and interest in and to
      such Mortgage Loan, and all security and documents relative thereto. Such
      assignment shall be an assignment outright and not for security. The Sponsor
      will thereupon own such Mortgage, and all such security and documents, free
      of
      any further obligation to the Trustee or the related Certificateholders with
      respect thereto. The Sponsor shall be responsible for any transfer costs
      incurred with respect to a Mortgage Loan purchased pursuant to this
      Section 3.24.

     

    If
      the
      Sponsor is required to repurchase a Mortgage Loan pursuant to this Section
      3.24,
      the related Servicer shall continue to service such Mortgage Loan unless the
      Sponsor shall repurchase the servicing rights thereon on terms mutually agreed
      to by the Sponsor and the related Servicer. Notwithstanding the foregoing,
      the
      Master Servicer shall have no obligation to master service any Mortgage Loan
      that has been so repurchased.

     

    Section
      3.25  Obligations
      of the Servicers Under Credit Risk Management Agreements.

     

    Notwithstanding
      anything in this Agreement or the Credit Risk Management Agreements to the
      contrary, the Trustee shall not have any duty or obligation to enforce any
      Credit Risk Management Agreement or to supervise, monitor or oversee the
      activities of the Credit Risk Manager or the Servicers under the Credit Risk
      Management Agreements or this Agreement with respect to any action taken or
      not
      taken by the related Servicer pursuant to a recommendation of the Credit Risk
      Manager or otherwise in connection with obligations of the related Servicer
      under the related Credit Risk Management Agreement.

     

    Section
      3.26  Collection
      of Mortgage Loan Payments; Custodial Accounts.

     

    (a)  The
      related Servicer shall make reasonable efforts in accordance with Accepted
      Servicing Practices to collect all payments called for under the terms and
      provisions of the related Mortgage Loans to the extent such procedures shall
      be
      consistent with this Agreement and the terms and provisions of any related
      Required Insurance Policy. Consistent with the foregoing, the related Servicer
      may in its discretion (i) waive any late payment charge and (ii) extend the
      due
      dates for payments due on a Mortgage Note for a Mortgage Loan serviced by such
      Servicer for a period not greater than 180 days; provided, however no such
      extension shall be materially adverse to the Certificateholders. In the event
      of
      any such arrangement, the related Servicer shall make Advances on the Mortgage
      Loan during the scheduled period in accordance with the amortization schedule
      of
      such Mortgage Loan without modification thereof by reason of such arrangements,
      and shall be entitled to reimbursement therefor in accordance with
      Section 5.01. The related Servicer shall not be required to institute or
      join in litigation with respect to collection of any payment (whether under
      a
      Mortgage, Mortgage Note or otherwise or against any public or governmental
      authority with respect to a taking or condemnation) if it reasonably believes
      that enforcing the provision of the Mortgage or other instrument pursuant to
      which such payment is required is prohibited by applicable law. In addition,
      if
      (x) a Mortgage Loan is in default or default is imminent or (y) the related
      Servicer delivers to the Trustee and the Securities Administrator a REMIC
      Opinion, the related Servicer may, (A) amend the related Mortgage Note to reduce
      the Mortgage Rate applicable thereto, and (B) amend any Mortgage Note for a
      Mortgage Loan to extend the maturity thereof.

     

    (b)  The
      related Servicer shall establish and maintain a segregated Custodial Account
      (which shall at all times be an Eligible Account) with a depository institution
      and shall be in the name of such Servicer in trust for registered holders of
      Nomura Asset Acceptance Corporation, Mortgage Pass-Through Certificates, Series
      2006-AR3. On behalf of the Trust Fund, the related Servicer shall deposit or
      cause to be deposited in the clearing account in which it customarily deposits
      payments and collection 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 such Servicer’s receipt thereof, and shall thereafter deposit in the
      related Custodial Account, in no event more than two Business Days after the
      related Servicer’s receipt thereof, except as otherwise specifically provided
      herein, the following payments and collections remitted by Subservicers or
      received by it in respect of the Mortgage Loans subsequent to the Cut-off Date
      (other than in respect of principal and interest due on the related Mortgage
      Loans on or before the Cut-off Date) and the following amounts required to
      be
      deposited hereunder:

     

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

     

    (ii)  all
      payments on account of interest on the related Mortgage Loans net of the
      Servicing Fee permitted under Section 3.10;

     

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

     

    (iv)  any
      amount required to be deposited by the related Servicer pursuant to
      Section 3.26(c) in connection with any losses on Permitted
      Investments;

     

    (v)  any
      amounts required to be deposited by the related Servicer pursuant to
      Section 3.05;

     

    (vi)  any
      amounts paid by an Advance Financing Person in respect of Advances or Servicing
      Advances;

     

    (vii)  any
      Prepayment Charges collected by the related Servicer in connection with the
      Principal Prepayment of any of the related Mortgage Loans and any Servicer
      Prepayment Charge Payment Amounts;

     

    (viii)  the
      Purchase Price with respect to any related Mortgage Loans purchased by the
      Sponsor pursuant to Section 2.02 or 2.03, any amounts which are to be
      treated pursuant to Section 2.04 of this Agreement as the payment of such a
      Purchase Price and the Purchase Price with respect to any related Mortgage
      Loans
      purchased by the Sponsor pursuant to Section 3.24; and

     

    (ix)  any
      other
      amounts required to be deposited hereunder.

     

    The
      foregoing requirements for deposit by the related Servicer into the related
      Custodial 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, if collected, need not be deposited by
      the
      related Servicer. In the event that the related Servicer shall deposit any
      amount not required to be deposited and not otherwise subject to withdrawal
      pursuant to Section 3.27, it may at any time withdraw or direct the
      institution maintaining the related Custodial Account, to withdraw such amount
      from the related Custodial Account, any provision herein to the contrary
      notwithstanding. Such withdrawal or direction may be accomplished by delivering
      written notice thereof to the institution maintaining the related Custodial
      Account, that describes the amounts deposited in error in such Custodial
      Account. The related Servicer shall maintain adequate records with respect
      to
      all withdrawals made pursuant to this Section. All funds deposited in a
      Custodial Account shall be held in trust for the Certificateholders until
      withdrawn in accordance with Section 3.27.

     

    (c)  The
      institution that maintains any Custodial Account, or other authorized entity
      shall invest the funds in such Custodial Account, in the manner directed by
      the
      related Servicer, in Permitted Investments which shall mature not later than
      the
      next succeeding Remittance Date and shall not be sold or disposed of prior
      to
      its maturity. All such Permitted Investments shall be made in the name of the
      Trustee, for the benefit of the Certificateholders. All income and gain net
      of
      any losses realized from any such investment shall be for the benefit of the
      related Servicer as servicing compensation and shall be remitted to it monthly
      as provided herein. The amount of any losses incurred in a Custodial Account
      in
      respect of any such investments shall be deposited by the related Servicer
      into
      such Custodial Account immediately as realized, out of its own
      funds.

     

    (d)  The
      related Servicer shall give at least thirty (30) days’ advance notice to the
      Trustee, the Securities Administrator, the Master Servicer, the Sponsor, each
      Rating Agency and the Depositor of any proposed change of location of the
      related Custodial Account prior to any change thereof.

     

    Section
      3.27  Permitted
      Withdrawals From the Custodial Accounts.

     

    (a)  The
      related Servicer may from time to time make withdrawals from the related
      Custodial Account for the following purposes:

     

    (i)  to
      pay
      itself (to the extent not previously paid to or withheld by the related
      Servicer), as servicing compensation in accordance with Section 3.10, that
      portion of any payment of interest that equals the Servicing Fee for the period
      with respect to which such interest payment was made, and, as additional
      servicing compensation, those other amounts set forth in
      Section 3.10;

     

    (ii)  to
      reimburse the related Servicer or an Advance Financing Person for (A) any
      unreimbursed Advances to the extent of amounts received which represent late
      recoveries of payments of principal and/or interest (net of the related
      Servicing Fees), Liquidation Proceeds and Insurance Proceeds on the related
      Mortgage Loans with respect to which such Advances were made in accordance
      with
      the provisions of Section 5.01; and (B) any unreimbursed Advances with
      respect to the final liquidation of a related Mortgage Loan that are
      Nonrecoverable Advances, but only to the extent that late recoveries of payments
      of principal and/or interest, Liquidation Proceeds and Insurance Proceeds
      received with respect to such Mortgage Loan are insufficient to reimburse the
      related Servicer or an Advance Financing Person for such unreimbursed Advances
      or (C) subject to Section 3.27(b), any unreimbursed Advances to the extent
      of Amounts Held For Future Distribution funds held in the related Custodial
      Account relating to the Mortgage Loans that were not included in the Available
      Distribution Amount for the preceding Distribution Date;

     

    (iii)  to
      reimburse itself or an Advance Financing Person for any Nonrecoverable
      Advances;

     

    (iv)  to
      reimburse itself from Insurance Proceeds for Insured Expenses covered by the
      related Insurance Policy;

     

    (v)  to
      pay
      itself any unpaid Servicing Fees and to reimburse itself or any Advance
      Financing Person for any unreimbursed Servicing Advances, provided, however,
      that the related Servicer’s or such Advance Financing Person’s right to
      reimbursement for Servicing Advances pursuant to this subclause (v) with respect
      to any Mortgage Loan shall be limited to amounts received on particular Mortgage
      Loan(s) (including, for this purpose, late recoveries of payments of principal
      and/or interest, Liquidation Proceeds, Insurance Proceeds, condemnation proceeds
      and purchase and repurchase proceeds) that represent late recoveries of the
      payments for which such Servicing Advances were made;

     

    (vi)  to
      pay to
      the Sponsor or the Depositor with respect to each related Mortgage Loan or
      property acquired in respect thereof that has been purchased pursuant to
      Section 2.02, 2.03 or 3.24, all amounts received thereon and not taken into
      account in determining the related Stated Principal Balance of such repurchased
      Mortgage Loan;

     

    (vii)  to
      pay
      any expenses reimbursable pursuant to Section 7.04;

     

    (viii)  to
      withdraw any amount deposited in the related Custodial Account and not required
      to be deposited therein; 

     

    (ix)  to
      clear
      and terminate the related Custodial Account upon termination of this Agreement
      pursuant to Section 10.01 hereof; and

     

    (x)  to
      pay
      the fee payable to any provider of lender-paid mortgage insurance, if
      applicable.

     

    In
      addition, no later than noon Eastern time on the Remittance Date, the related
      Servicer shall withdraw from the related Custodial Account maintained by such
      Servicer and remit to the Securities Administrator (a) all amounts deposited
      in
      such Custodial Account as of the close of business on the last day of the
      related Due Period (net of charges against or withdrawals from such Custodial
      Account pursuant to this Section 3.27(a)), plus (b) all Advances, if any,
      which the related Servicer is obligated to make pursuant to Section 5.01,
      minus (c) any amounts attributable to Principal Prepayments, Liquidation
      Proceeds, Insurance Proceeds or condemnation proceeds received after the
      applicable Prepayment Period, which amounts shall be remitted on the following
      Remittance Date, together with any Compensating Interest required to be
      deposited in such Custodial Account in connection with such Principal Prepayment
      in accordance with Section 5.02, and minus (d) any amounts attributable to
      Scheduled Payments collected but due on a Due Date or Due Dates subsequent
      to
      the first day of the month in which such Remittance Date occurs, which amounts
      shall be remitted on the Remittance Date next succeeding the Due Date related
      to
      such Scheduled Payment.

     

    With
      respect to any remittance received by the Securities Administrator after the
      Business Day on which such payment was due, the Securities Administrator shall
      send written notice thereof to the related Servicer. The related Servicer shall
      pay to the Securities Administrator interest on any such late payment by such
      Servicer at an annual rate equal to Prime Rate (as defined in The Wall Street
      Journal) plus one percentage point, but in no event greater than the maximum
      amount permitted by applicable law. Such interest shall be paid by the related
      Servicer to the Securities Administrator on the date such late payment is made
      and shall cover the period commencing with the day following the Business Day
      on
      which such payment was due and ending with the Business Day on which such
      payment is made, both inclusive. The payment by the related Servicer of any
      such
      interest, or the failure of the Securities Administrator to notify the related
      Servicer of such interest, shall not be deemed an extension of time for payment
      or a waiver of any Servicer Default by the related Servicer.

     

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

     

    (b)  Notwithstanding
      the foregoing, any Amounts Held For Future Distribution withdrawn by the related
      Servicer as permitted in Section 3.27(a)(ii) in reimbursement of Advances
      previously made by such Servicer shall be appropriately reflected in such
      Servicer’s records and replaced by such Servicer by deposit in the related
      Custodial Account, no later than the close of business on any future Remittance
      Date on which the funds on deposit in the related Custodial Account shall be
      less than the amount required to be remitted to the Trust Fund on such
      Remittance Date; provided, however that if the rating of such Servicer
      (including any Successor Servicer) is less than “BBB”, such Servicer shall be
      required to replace such funds by deposit to the Distribution Account, no later
      than the close of business on the Remittance Date immediately following the
      Due
      Period or Prepayment Period for which such amounts relate. The amount at any
      time credited to the related Custodial Account may be invested by such Servicer
      in Permitted Investments.

     

    Section
      3.28  Reports
      to Master Servicer.

     

    Not
      later
      than the tenth (10th) calendar day of each month (or if such tenth calendar
      day
      is not a Business Day, the immediately succeeding Business Day), the related
      Servicer shall furnish to the Master Servicer (i) (a) monthly loan data in
      a
      mutually agreed-upon format containing all of the information set forth in
      Exhibit X-1, (b) default loan data in the format set forth in Exhibit X-2 hereto
      (or in such other format mutually agreed-upon between such Servicer and the
      Master Servicer) and (c) information regarding realized losses and gains in
      the
      format set forth in Exhibit X-3 hereto (or in such other format mutually agreed
      between such Servicer and the Master Servicer), in each case relating to the
      period ending on the last day of the preceding calendar month, (ii) all such
      information required pursuant to clause (i)(a) above on a magnetic tape,
      electronic mail, or other similar media reasonably acceptable to the Master
      Servicer and (iii) all supporting documentation with respect to the information
      required pursuant to clause (i)(c) above.

     

    Not
      later
      than two (2) Business Days after the Determination Date of each calendar month,
      GMACM shall furnish to the Master Servicer a monthly report containing such
      information regarding prepayments of Mortgage Loans during the applicable
      Prepayment Period in a format as mutually agreed to between GMACM and the Master
      Servicer.

     

    Section
      3.29  Collection
      of Taxes; Assessments and Similar Items; Escrow Accounts.

     

    To
      the
      extent required by the Mortgage Note related to a Mortgage Loan, the related
      Servicer shall establish and maintain one or more accounts (each, an “Escrow
      Account”) and deposit, promptly upon receipt, and retain therein all collections
      from the Mortgagors (or advances by such Servicer) for the payment of taxes,
      assessments, hazard insurance premiums or comparable items for the account
      of
      the Mortgagors. Nothing herein shall require the related Servicer to compel
      a
      Mortgagor to establish an Escrow Account in violation of applicable
      law.

     

    Withdrawals
      of amounts so collected from the Escrow Accounts may be made only to effect
      timely payment of taxes, assessments, hazard insurance premiums, condominium
      or
      PUD association dues, or comparable items, to reimburse the related Servicer
      out
      of related collections for any payments made with respect to each Mortgage
      Loan
      pursuant to Section 3.01 (with respect to taxes and assessments and
      insurance premiums) and Section 3.05 (with respect to hazard insurance), to
      refund to any Mortgagors any sums as may be determined to be overages, to pay
      interest, if required by law or the terms of the related Mortgage or Mortgage
      Note, to such Mortgagors on balances in the Escrow Account, to remove amounts
      deposited in error or to clear and terminate the Escrow Account at the
      termination of this Agreement in accordance with Section 10.01 thereof. The
      Escrow Account shall not be a part of the Trust Fund.

     

    Section
      3.30  Adjustments
      to Mortgage Rate and Scheduled Payment.

     

    On
      each
      applicable Adjustment Date, the Mortgage Rate with respect to each Mortgage
      Loan
      shall be adjusted, in compliance with the requirements of the related Mortgage
      and Mortgage Note, to equal the sum of the related Index plus the Gross Margin
      (rounded in accordance with the related Mortgage Note) subject to the applicable
      Periodic Rate Cap, Maximum Mortgage Interest Rate and Minimum Mortgage Interest
      Rate, as set forth in the Mortgage Note. The related Servicer shall execute
      and
      deliver the notices required by each Mortgage and Mortgage Note, applicable
      laws
      and regulations regarding interest rate adjustments. The related Servicer shall
      also provide timely notification to the Master Servicer of all applicable data
      and information regarding such interest rate adjustments and such Servicer’s
      methods of implementing such interest rate adjustments. Upon the discovery
      by a
      Servicer or the Master Servicer that such Servicer has failed to adjust a
      Mortgage Rate or a Scheduled Payment pursuant to the terms of the related
      Mortgage Note and Mortgage, such Servicer shall immediately deposit in the
      related Custodial Account, as applicable from its own funds the amount of any
      interest loss caused thereby without reimbursement therefor.

     

    Section
      3.31  Distribution
      Account.

     

    (a)  The
      Securities Administrator shall establish and maintain in the name of the
      Trustee, for the benefit of the Certificateholders a Distribution Account as
      a
      segregated non-interest bearing trust account or accounts. The Securities
      Administrator will deposit in the Distribution Account as identified by the
      Securities Administrator and as received by the Securities Administrator, the
      following amounts:

     

    (i)  All
      payments and recoveries in respect of principal on the related Mortgage Loans,
      including, without limitation, Principal Prepayments, Subsequent Recoveries,
      Liquidation Proceeds, Insurance Proceeds, condemnation proceeds and all payments
      and recoveries in respect of interest on the related Mortgage Loans withdrawn
      by
      the related Servicer from the related Custodial Account and remitted by the
      related Servicer to the Securities Administrator;

     

    (ii)  Any
      Advance and any Compensating Interest Payments;

     

    (iii)  Any
      Prepayment Charges collected by the related Servicer in connection with the
      Principal Prepayment of any of the related Mortgage Loans (including any
      Servicer Prepayment Charge Payment Amounts);

     

    (iv)  Any
      Insurance Proceeds or Liquidation Proceeds received by or on behalf of the
      Securities Administrator or which were not deposited in the related Custodial
      Account;

     

    (v)  The
      Purchase Price with respect to any related Mortgage Loans purchased by the
      Sponsor or Section 2.02 or 2.03, any amounts which are to be treated
      pursuant to Section 2.04 of this Agreement as the payment of such a
      Purchase Price, the Purchase Price with respect to any related Mortgage Loans
      purchased by the Depositor pursuant to Section 3.24, and all proceeds of
      any related Mortgage Loans or property acquired with respect thereto repurchased
      by the Master Servicer pursuant to Section 10.01;

     

    (vi)  Any
      amounts required to be deposited with respect to losses on investments of
      deposits in an Account; and

     

    (vii)  Any
      other
      amounts received by or on behalf of the Securities Administrator and required
      to
      be deposited in the Distribution Account pursuant to this
      Agreement.

     

    (b)  All
      amounts deposited to the Distribution Account shall be held by the Securities
      Administrator in the name of the Trustee in trust for the benefit of the
      Certificateholders in accordance with the terms and provisions of this
      Agreement. The requirements for crediting the Distribution 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,
      tax service, statement account or payoff, substitution, satisfaction, release
      and other like fees and charges, need not be credited by the Securities
      Administrator to the Distribution Account.

     

    (c)  The
      amount at any time credited to the Distribution Account may be invested by
      the
      Securities Administrator in Permitted Investments that mature no later than
      the
      Business Day prior to the next succeeding Distribution Date as directed by
      the
      Master Servicer, unless the investment is managed by the Securities
      Administrator or an affiliate of the Securities Administrator, in which case
      such Permitted Investments may mature on the Distribution Date. All such
      investment income shall be for the benefit of the Master Servicer, and any
      losses incurred shall be deposited by the Master Servicer in the Distribution
      Account immediately as realized.

     

    Section
      3.32  Permitted
      Withdrawals and Transfers from the Distribution Account.

     

    (a)  The
      Securities Administrator will from time to time make or cause to be made such
      withdrawals or transfers from the Distribution Account pursuant to this
      Agreement for the following purposes:

     

    (i)  to
      pay to
      the Trustee any expenses recoverable by the Trustee pursuant to this
      Agreement.

     

    (ii)  to
      reimburse the related Servicer (or any successor thereto) for any Advance or
      Servicing Advance of its own funds, the right of the related Servicer (or any
      successor thereto) to reimbursement pursuant to this subclause (ii) being
      limited to amounts received on a particular Mortgage Loan (including, for this
      purpose, the Purchase Price therefor, Insurance Proceeds, Liquidation Proceeds
      and condemnation proceeds) which represent late payments or recoveries of the
      principal of or interest on such Mortgage Loan respecting which such Advance
      or
      Servicing Advance was made;

     

    (iii)  to
      reimburse the Master Servicer or the related Servicer (or any successor thereto)
      from Insurance Proceeds or Liquidation Proceeds relating to a particular
      Mortgage Loan for amounts expended by the related Servicer (or any successor
      thereto) in good faith in connection with the restoration of the related
      Mortgaged Property which was damaged by an uninsured cause or in connection
      with
      the liquidation of such Mortgage Loan;

     

    (iv)  to
      reimburse the related Servicer (or any successor thereto) from Insurance
      Proceeds relating to a particular Mortgage Loan for insured expenses incurred
      with respect to such Mortgage Loan and to reimburse the related Servicer (or
      any
      successor thereto) from Liquidation Proceeds from a particular Mortgage Loan
      for
      Liquidation Expenses incurred with respect to such Mortgage Loan;

     

    (v)  to
      reimburse the related Servicer (or any successor thereto) for advances of funds
      pursuant to this Agreement, and the right to reimbursement pursuant to this
      subclause being limited to amounts received on the related Mortgage Loan
      (including, for this purpose, the Purchase Price therefor, Insurance Proceeds,
      Liquidation Proceeds and condemnation proceeds) which represent late recoveries
      of the payments for which such advances were made;

     

    (vi)  to
      reimburse the related Servicer (or any successor thereto) for any Advance or
      advance, after a Realized Loss has been allocated with respect to the related
      Mortgage Loan if the Advance or advance has not been reimbursed pursuant to
      clauses (ii) and (v);

     

    (vii)  to
      pay
      the Credit Risk Management Fee to the Credit Risk Manager; provided, however,
      that upon the termination of the Credit Risk Manager pursuant to
      Section 3.33 hereof, the amount of the Credit Risk Management Fee (or any
      portion thereof) previously payable to the Credit Risk Manager as described
      herein shall be paid to the Sponsor;

     

    (viii)  to
      reimburse the Trustee or the Securities Administrator for expenses, costs and
      liabilities incurred by and reimbursable to it pursuant to this Agreement
      (including the expenses of the Securities Administrator in connection with
      a tax
      audit in connection with the performance of its obligations pursuant to
      Section 9.13);

     

    (ix)  to
      pay to
      the Trust Fund, as additional servicing compensation, any Excess Liquidation
      Proceeds to the extent not retained by the related Servicer;

     

    (x)  to
      reimburse or pay the related Servicer any such amounts as are due thereto under
      this Agreement or the Servicing Agreement and have not been retained by or
      paid
      to the related Servicer, to the extent provided herein or therein;

     

    (xi)  to
      reimburse the Trustee or the Master Servicer for expenses incurred in the
      transfer of servicing responsibilities of a terminated Servicer after the
      occurrence and continuance of a Servicer Default to the extent not paid by
      the
      terminated Servicer;

     

    (xii)  to
      reimburse the Master Servicer for any costs and expenses reimbursable to the
      Master Servicer pursuant to this Agreement;

     

    (xiii)  to
      reimburse the Custodian for expenses, costs and liabilities incurred or
      reimbursable to it pursuant to this Agreement or the Custodial
      Agreement;

     

    (xiv)  to
      remove
      amounts deposited in error; and

     

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

     

    (b)  The
      Securities Administrator shall keep and maintain separate accounting, on a
      Mortgage Loan by Mortgage Loan basis, for the purpose of accounting for any
      reimbursement from the Distribution Account pursuant to subclauses (ii) through
      (v), inclusive, and (vii) or with respect to any such amounts which would have
      been covered by such subclauses had the amounts not been retained by the
      Securities Administrator without being deposited in the Distribution Account
      under Section 3.31.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall distribute the Available
      Distribution Amount, to the extent of funds on deposit in the Distribution
      Account to the holders of the Certificates in accordance with
      Sections 5.04, 5.05 and 5.06.

     

    Section
      3.33  Duties
      of the Credit Risk Manager; Termination.

     

    (a)  The
      Depositor appoints Portfolio Surveillance Analytics, LLC, a wholly owned
      subsidiary of InformationLogix, Inc. as Credit Risk Manager. For and on behalf
      of the Depositor, the Credit Risk Manager will provide reports and
      recommendations concerning the Mortgage Loans that are past due, as to which
      there has been commencement of foreclosure, as to which there has been
      forbearance in exercise of remedies which are in default, as to which a
      Mortgagor is the subject of bankruptcy, receivership, or an arrangement of
      creditors, or as to which have become REO Properties. Such reports and
      recommendations will be based upon information provided to the Credit Risk
      Manager pursuant to the related Credit Risk Management Agreement and the Credit
      Risk Manager shall look solely to the related Servicer and/or Master Servicer
      for all information and data (including loss and delinquency information and
      data) and loan level information and data relating to the servicing of the
      related Mortgage Loans. If the Credit Risk Manager is no longer able to perform
      its duties hereunder, the Credit Risk Manager may be terminated by the Depositor
      at the direction of Certificateholders evidencing not less than 66 2/3% of
      the
      Voting Rights. The Depositor may, at its option, cause the appointment of a
      successor Credit Risk Manager. Upon any termination of the Credit Risk Manager
      or the appointment of a successor Credit Risk Manager, the Depositor shall
      give
      written notice thereof to the related Servicer, the Trustee, each Rating Agency
      and the Credit Risk Manager. Notwithstanding the foregoing, the termination
      of
      the Credit Risk Manager pursuant to Section 3.33(b) shall not become
      effective until the appointment of a successor Credit Risk Manager. The Trustee
      is hereby authorized to enter into any Credit Risk Management Agreement
      necessary to effect the foregoing.

     

    (b)  Within
      six months of the Closing Date, the Sponsor may, at its option, terminate the
      Credit Risk Manager if, in its reasonable judgment, (i) the value of the
      servicing rights with respect to the Mortgage Loans is adversely affected as
      a
      result of the presence of the Credit Risk Manager or (ii) the presence of the
      Credit Risk Manager impairs the ability of the Sponsor to transfer the servicing
      rights with respect to the Mortgage Loans as permitted by this Agreement. Upon
      the termination of the Credit Risk Manager, the Sponsor may, at its option,
      cause the Depositor to appoint a successor Credit Risk Manager. Notice of such
      termination shall be provided by the Sponsor to the Rating Agencies, the
      Trustee, the Securities Administrator, the Depositor, the Servicers and the
      Credit Risk Manager. Upon the appointment of a successor Credit Risk Manager,
      the Depositor shall provide written notice thereof to each Rating Agency, the
      Trustee, the Servicer, the Securities Administrator and the Credit Risk
      Manager.

     

    If
      the
      Credit Risk Manager is terminated pursuant to this Section 3.33(b), the
      Credit Risk Manager shall only be entitled to a fee equal to 0.0050% with
      respect to each Mortgage Loan for the one year period following such
      termination. After the expiration of such one year period, the Credit Risk
      Manager shall not be entitled to the Credit Risk Management Fee or any portion
      thereof with respect to any Mortgage Loan. The excess of the Credit Risk
      Management Fee with respect to each Mortgage Loan over the amount payable to
      the
      Credit Risk Manager as described in this paragraph shall be paid to the Sponsor
      pursuant to Section 5.04(a).

     

    Section
      3.34  Limitation
      Upon Liability of the Credit Risk Manager.

     

    Neither
      the Credit Risk Manager, nor any of the directors, officers, employees or agents
      of the Credit Risk Manager, shall be under any liability to any Servicer, the
      Master Servicer, the Securities Administrator, the Trustee, the
      Certificateholders or the Depositor for any action taken or for refraining
      from
      the taking of any action in good faith pursuant to this Agreement, in reliance
      upon information provided by such Servicer and/or Master Servicer under the
      related Credit Risk Management Agreement or of errors in judgment; provided,
      however, that this provision shall not protect the Credit Risk Manager or any
      such person against liability that would otherwise be imposed by reason of
      willful malfeasance, bad faith or gross negligence in its performance of its
      duties under this Agreement or the applicable Credit Risk Management Agreement.
      The Credit Risk Manager and any director, officer, employee or agent of the
      Credit Risk Manager may rely in good faith on any document of any kind prima
      facie properly executed and submitted by any Person respecting any matters
      arising hereunder, and may rely in good faith upon the accuracy of information
      furnished by the related Servicer and/or Master Servicer pursuant to the related
      Credit Risk Management Agreement in the performance of its duties thereunder
      and
      hereunder.

     

    ARTICLE
      IV

     

    ADMINISTRATION
      AND MASTER SERVICING OF THE MORTGAGE LOANS

     

    Section
      4.01  The
      Master Servicer. 

     

    The
      Master Servicer shall supervise, monitor and oversee the obligation of the
      Servicers
      to
      service and administer the Mortgage Loans in accordance with the terms of this
      Agreement and the Servicing Agreement and shall have full power and authority
      to
      do any and all things which it may deem necessary or desirable in connection
      with such master servicing and administration. In performing its obligations
      hereunder, the Master Servicer shall act in a manner consistent with Accepted
      Master Servicing Practices. Furthermore, the Master Servicer shall oversee
      and
      consult with the Servicers as necessary from time-to-time to carry out the
      Master Servicer’s obligations hereunder, shall receive, review and evaluate all
      reports, information and other data provided to the Master Servicer by the
      Servicers and shall cause each Servicer to perform and observe the covenants,
      obligations and conditions to be performed or observed by such Servicer under
      this Agreement or the Servicing Agreement, as applicable. The Master Servicer
      shall independently and separately monitor the servicing activities of the
      Servicers with respect to each Mortgage Loan, reconcile the results of such
      monitoring with such information provided in the previous sentence on a monthly
      basis and coordinate corrective adjustments to the Servicers and Master
      Servicer’s records, and based on such reconciled and corrected information,
      provide such information relating to the Mortgage Loans to the Securities
      Administrator as shall be necessary to enable it to prepare the statements
      specified in Section 5.06 and any other information and statements required
      to be provided by the Securities Administrator hereunder. The Master Servicer
      shall reconcile the results of its Mortgage Loan monitoring with the actual
      remittances of the Servicers to the Distribution Account.

     

    Notwithstanding
      anything in this Agreement to the contrary, the Master Servicer shall not have
      any duty or obligation to enforce any Credit Risk Management Agreement that
      each
      Servicer is a party to (each, a “Servicer Credit Risk Management Agreement”) or
      to supervise, monitor or oversee the activities of the Credit Risk Manager
      under
      the Servicer Credit Risk Management Agreement with respect to any action taken
      or not taken by a Servicer pursuant to a recommendation of the Credit Risk
      Manager.

     

    The
      Trustee shall furnish the Servicers and the Master Servicer with any limited
      powers of attorney and other documents in form acceptable to the Trustee
      necessary or appropriate to enable the Servicer and the Master Servicer to
      service or master service and administer the Mortgage Loans and REO Property.
      The Trustee shall have no responsibility for any action of the Master Servicer
      or a Servicer pursuant to any such limited power of attorney and shall be
      indemnified by the Master Servicer or the related Servicer for any cost,
      liability or expense arising from the misuse thereof by the Master Servicer
      or
      the related Servicer.

     

    The
      Trustee, the Custodian and the Securities Administrator shall provide access
      to
      the records and documentation in possession of the Trustee, the Custodian or
      the
      Securities Administrator regarding the Mortgage Loans and REO Property and
      the
      servicing thereof to the Certificateholders, the FDIC, and the supervisory
      agents and examiners of the FDIC, such access being afforded only upon
      reasonable prior written request and during normal business hours at the office
      of the Trustee, the Custodian or the Securities Administrator; provided,
      however, that, unless otherwise required by law, none of the Trustee, the
      Custodian or the Securities Administrator shall be required to provide access
      to
      such records and documentation if the provision thereof would violate the legal
      right to privacy of any Mortgagor. The Trustee, the Custodian and the Securities
      Administrator shall allow representatives of the above entities to photocopy
      any
      of the records and documentation and shall provide equipment for that purpose
      at
      a charge that covers the Trustee’s, the Custodian’s or the Securities
      Administrator’s actual costs.

     

    The
      Trustee shall execute and deliver to the related Servicer or the Master Servicer
      upon request any court pleadings, requests for trustee’s sale or other documents
      necessary or desirable and, in each case, provided to the Trustee by the related
      Servicer or the Master Servicer to (i) the foreclosure or trustee’s sale with
      respect to a Mortgaged Property; (ii) any legal action brought to obtain
      judgment against any Mortgagor on the Mortgage Note or any other Loan Document;
      (iii) obtain a deficiency judgment against the Mortgagor; or (iv) enforce any
      other rights or remedies provided by the Mortgage Note or any other Mortgage
      Loan Document or otherwise available at law or equity.

     

    Section
      4.02  Monitoring of Servicers.

     

    The
      Master Servicer shall be responsible for monitoring the compliance by the
      Servicers with their respective duties under this Agreement and the Servicing
      Agreement. In the review of each Servicer’s activities, the Master Servicer may
      rely upon an officer’s certificate of such Servicer with regard to such
      Servicer’s compliance with the terms of this Agreement or the Servicing
      Agreement, as applicable. In the event that the Master Servicer, in its
      judgment, determines that a Servicer should be terminated in accordance with
      this Agreement or the Servicing Agreement, as applicable, or that a notice
      should be sent pursuant to this Agreement or the Servicing Agreement, as
      applicable with respect to the occurrence of an event that, unless cured, would
      constitute grounds for such termination, the Master Servicer shall notify the
      Sponsor and the Trustee thereof and the Master Servicer shall issue such notice
      or take such other action as it deems appropriate.

     

    The
      Master Servicer, for the benefit of the Trustee and the Certificateholders,
      shall enforce the obligations of the Servicers under this Agreement and the
      Servicing Agreement, and the Master Servicer shall, in the event that a Servicer
      fails to perform its obligations in accordance with this Agreement or the
      Servicing Agreement, as applicable, subject to this Section, Article VIII
      and the Servicing Agreement, terminate the rights and obligations of such
      Servicer hereunder or under the Servicing Agreement, as applicable, in
      accordance with the provisions of Article VIII or the Servicing Agreement,
      as
      applicable. The Master Servicer shall act as servicer of the related Mortgage
      Loans or enter in to a new servicing agreement with a successor servicer
      selected by the Master Servicer; provided, however, it is understood and
      acknowledged by the parties hereto that there will be a period of transition
      (not to exceed 90 days) before the actual servicing functions can be fully
      transferred to the Master Servicer, the Trustee or such successor servicer.
      Such
      enforcement, including, without limitation, the legal prosecution of claims
      and
      the pursuit of other appropriate remedies, shall be in such form and carried
      out
      to such an extent and at such time as the Master Servicer in its good faith
      business judgment, would require were it the owner of the related Mortgage
      Loans. The Master Servicer shall pay the costs of such enforcement at its own
      expense, provided that the Master Servicer shall not be required to prosecute
      or
      defend any legal action except to the extent that the Master Servicer shall
      have
      received indemnity reasonably acceptable to it for its costs and expenses in
      pursuing such action.

     

    To
      the
      extent that the costs and expenses related to the termination of a Servicer,
      appointment of a Successor Servicer or the transfer and assumption of servicing
      by the Master Servicer (including, without limitation, (i) all legal costs
      and
      expenses and all due diligence costs and expenses associated with an evaluation
      of the potential termination of defaulting Servicer as a result of an event
      of
      default by such Servicer and (ii) all costs and expenses associated with the
      complete transfer of servicing, including all servicing files and all servicing
      data and the completion, correction or manipulation of such servicing data
      as
      may be required by the Successor Servicer to correct any errors or
      insufficiencies in the servicing data or otherwise to enable the Successor
      Servicer to service the related Mortgage Loans in accordance with this Agreement
      or the Servicing Agreement, as applicable) are not fully and timely reimbursed
      by the terminated Servicer, the Master Servicer shall be entitled to
      reimbursement of such costs and expenses from the Distribution
      Account.

     

    The
      Master Servicer shall require the Servicer to comply with the remittance
      requirements and other obligations set forth in this Agreement and the Servicing
      Agreement.

     

    If
      the
      Master Servicer acts as a Successor Servicer, it shall not assume liability
      for
      the representations and warranties of the terminated Servicer, if any, that
      it
      replaces.

     

    Section
      4.03  Fidelity
      Bond. 

     

    The
      Master Servicer, at its expense, shall maintain in effect a blanket fidelity
      bond and an errors and omissions insurance policy that shall be in such form
      and
      amount generally acceptable for entities serving as master servicers or
      trustees, affording coverage with respect to all directors, officers, employees
      and other Persons acting on such Master Servicer’s behalf, and covering errors
      and omissions in the performance of the Master Servicer’s obligations hereunder.
      Any such errors and omissions policy and fidelity bond may not be cancelable
      without thirty (30) days’ prior written notice to the Trustee.

     

    Section
      4.04  Power
      to Act; Procedures. 

     

    The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority, subject to the REMIC Provisions and the provisions of
      Section 9.13 hereof, to do any and all things that it may deem necessary or
      desirable in connection with the master servicing and administration of the
      Mortgage Loans, including but not limited to the power and authority (i) to
      execute and deliver, on behalf of the Certificateholders and the Trustee,
      customary consents or waivers and other instruments and documents, (ii) to
      consent to transfers of any Mortgaged Property and assumptions of the Mortgage
      Notes and related Mortgages, (iii) to collect any Insurance Proceeds and
      Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion
      of
      the ownership of the Mortgaged Property securing any Loan, in each case, in
      accordance with the provisions of this Agreement; provided, however, that the
      Master Servicer shall not (and, consistent with its responsibilities under
      Section 4.02, shall not permit the Servicer to) knowingly or intentionally
      take any action, or fail to take (or fail to cause to be taken) any action
      reasonably within its control and the scope of duties more specifically set
      forth herein, that, under the REMIC Provisions, if taken or not taken, as the
      case may be, would cause any REMIC to fail to qualify as a REMIC or result
      in
      the imposition of a tax upon the Trust Fund (including but not limited to the
      tax on prohibited transactions as defined in Section 860F(a)(2) of the Code
      and the tax on contributions to a REMIC set forth in Section 860G(d) of the
      Code) unless the Master Servicer has received an Opinion of Counsel (but not
      at
      the expense of the Master Servicer) to the effect that the contemplated action
      will not cause any REMIC to fail to qualify as a REMIC or result in the
      imposition of a tax upon any REMIC. The Trustee shall furnish the Master
      Servicer, upon written request from a Servicing Officer or an Authorized
      Servicer Representative, with any powers of attorney (in form acceptable to
      Trustee) empowering the Master Servicer, or the related Servicer to execute
      and
      deliver instruments of satisfaction or cancellation, or of partial or full
      release or discharge, and to foreclose upon or otherwise liquidate Mortgaged
      Property, and to appeal, prosecute or defend in any court action relating to
      the
      Mortgage Loans or the Mortgaged Property, in accordance with this Agreement,
      and
      the Trustee shall execute and deliver such other documents, as the Master
      Servicer or the related Servicer may request, to enable the Master Servicer
      to
      master service and administer the Mortgage Loans and carry out its duties
      hereunder, in each case in accordance with Accepted Master Servicing Practices
      (and the Trustee shall have no liability for the misuse of any such powers
      of
      attorney by the Master Servicer or the related Servicer and shall be indemnified
      by the Master Servicer or the related Servicer, as applicable, for any costs,
      liabilities or expenses incurred by the Trustee in connection with such misuse).
      If the Master Servicer or the Trustee has been advised that it is likely that
      the laws of the state in which action is to be taken prohibit such action if
      taken in the name of the Trustee or that the Trustee would be adversely affected
      under the “doing business” or tax laws of such state if such action is taken in
      its name, the Master Servicer shall join with the Trustee in the appointment
      of
      a co-trustee pursuant to Section 9.10 hereof. In the performance of its
      duties hereunder, the Master Servicer shall be an independent contractor and
      shall not, except in those instances where it is taking action authorized
      pursuant to this Agreement to be taken by it in the name of the Trustee, be
      deemed to be the agent of the Trustee.

     

    Section
      4.05  Due-on-Sale
      Clauses; Assumption Agreements. 
      

     

    To
      the
      extent Mortgage Loans contain enforceable due-on-sale clauses, the Master
      Servicer shall cause the Servicers to enforce such clauses in accordance with
      this Agreement and the Servicing Agreement. If applicable law prohibits the
      enforcement of a due-on-sale clause or such clause is otherwise not enforced
      in
      accordance with this Agreement, and, as a consequence, a Mortgage Loan is
      assumed, the original Mortgagor may be released from liability in accordance
      with this Agreement or the Servicing Agreement, as applicable.

     

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

     

    The
      Master Servicer shall transmit to the Trustee or Custodian such documents and
      instruments coming into the possession of the Master Servicer from time to
      time
      as are required by the terms hereof to be delivered to the Trustee or the
      Custodian. Any funds received by the Master Servicer in respect of any Mortgage
      Loan or which otherwise are collected by the Master Servicer as Liquidation
      Proceeds, Insurance Proceeds or Subsequent Recoveries in respect of any Mortgage
      Loan shall be held for the benefit of the Trustee and the Certificateholders
      subject to the Master Servicer’s right to retain or withdraw from the
      Distribution Account the Master Servicing Compensation and other amounts
      provided in this Agreement. The Master Servicer, to the extent required by
      Article III or the Servicing Agreement, as applicable, shall cause each Servicer
      to, provide access to information and documentation regarding the related
      Mortgage Loans to the Trustee, its agents and accountants at any time upon
      reasonable request and during normal business hours, and to Certificateholders
      that are savings and loan associations, banks or insurance companies, the OTS,
      the FDIC and the supervisory agents and examiners of such Office and Corporation
      or examiners of any other federal or state banking or insurance regulatory
      authority if so required by applicable regulations of the OTS or other
      regulatory authority, such access to be afforded without charge but only upon
      reasonable request in writing and during normal business hours at the offices
      of
      the Master Servicer designated by it. In fulfilling such a request the Master
      Servicer shall not be responsible for determining the sufficiency of such
      information.

     

    All
      Mortgage Files and funds collected or held by, or under the control of, the
      Master Servicer, in respect of any Mortgage Loans, whether from the collection
      of principal and interest payments or from Liquidation Proceeds or Insurance
      Proceeds, shall be held by the Master Servicer for and on behalf of the Trustee
      and the Certificateholders and shall be and remain the sole and exclusive
      property of the Trustee; provided, however, that the Master Servicer and the
      Servicer shall be entitled to setoff against, and deduct from, any such funds
      any amounts that are properly due and payable to the Master Servicer or the
      related Servicer under this Agreement or the Servicing Agreement, as
      applicable.

     

    Section
      4.07  Standard
      Hazard Insurance and Flood Insurance Policies.

     

    For
      each
      Mortgage Loan, the Master Servicer shall enforce any obligation of the related
      Servicer under this Agreement or the Servicing Agreement, as applicable to
      maintain or cause to be maintained standard fire and casualty insurance and,
      where applicable, flood insurance, all in accordance with the provisions of
      this
      Agreement or the Servicing Agreement, as applicable. It is understood and agreed
      that such insurance shall be with insurers meeting the eligibility requirements
      set forth in this Agreement or the Servicing Agreement, as applicable and that
      no earthquake or other additional insurance is to be required of any Mortgagor
      or to be maintained on property acquired in respect of a defaulted Mortgage
      Loan, other than pursuant to such applicable laws and regulations as shall
      at
      any time be in force and as shall require such additional
      insurance.

     

    Pursuant
      to Section 3.31, any amounts collected by the Master Servicer, under any
      insurance policies (other than amounts to be applied to the restoration or
      repair of the property subject to the related Mortgage or released to the
      Mortgagor in accordance with this Agreement or the Servicing Agreement, as
      applicable) shall be deposited into the Distribution Account, subject to
      withdrawal pursuant to Section 3.32.

     

    Section
      4.08  Presentment
      of Claims and Collection of Proceeds. 

     

    The
      Master Servicer shall enforce each Servicer’s obligations to prepare and present
      on behalf of the Trustee and the Certificateholders all claims under any
      insurance policies and take such actions (including the negotiation, settlement,
      compromise or enforcement of the insured’s claim) as shall be necessary to
      realize recovery under such policies. Any proceeds disbursed to the Master
      Servicer (or disbursed to the related Servicer and remitted to the Master
      Servicer) in respect of such policies, bonds or contracts shall be promptly
      deposited in the Distribution Account upon receipt, except that any amounts
      realized that are to be applied to the repair or restoration of the related
      Mortgaged Property as a condition precedent to the presentation of claims on
      the
      related Mortgage Loan to the insurer under any applicable insurance policy
      need
      not be so deposited (or remitted).

     

    Section
      4.09  Maintenance
      of the Primary Mortgage Insurance Policies.

     

    The
      Master Servicer shall not take, or (to the extent within its control) permit
      a
      Servicer (to the extent such action is prohibited under this Agreement or the
      Servicing Agreement, as applicable) to take, any action that would result in
      noncoverage under any primary mortgage insurance policy or any loss which,
      but
      for the actions of such Master Servicer or the related Servicer, would have
      been
      covered thereunder. The Master Servicer shall use its best reasonable efforts
      to
      cause the related Servicer to keep in force and effect (to the extent that
      the
      Mortgage Loan requires the Mortgagor to maintain such insurance), primary
      mortgage insurance applicable to each Mortgage Loan in accordance with the
      provisions of this Agreement or the Servicing Agreement, as applicable. The
      Master Servicer shall not, and (to the extent within its control) shall not
      permit the related Servicer to, cancel or refuse to renew any primary mortgage
      insurance policy that is in effect at the date of the initial issuance of the
      Mortgage Note and is required to be kept in force hereunder except in accordance
      with the provisions of this Agreement or the Servicing Agreement, as
      applicable.

     

    The
      Master Servicer agrees to cause the related Servicer to present, on behalf
      of
      the Trustee and the Certificateholders, claims to the insurer under any primary
      mortgage insurance policies and, in this regard, to take such reasonable action
      as shall be necessary to permit recovery under any primary mortgage insurance
      policies respecting defaulted Mortgage Loans. Pursuant to Section 3.31 of this
      Agreement or pursuant to the Servicing Agreement, as applicable, any amounts
      collected by the related Master Servicer or the Servicer under any primary
      mortgage insurance policies shall be deposited by the Servicer or by the Master
      Servicer in the Distribution Account, subject to withdrawal pursuant to
      Section 3.32.

     

    Section
      4.10  Trustee
      to Retain Possession of Certain Insurance Policies and
      Documents.

     

    The
      Trustee or the Custodian, shall retain possession and custody of the originals
      (to the extent available) of any primary mortgage insurance policies, or
      certificate of insurance if applicable, and any certificates of renewal as
      to
      the foregoing as may be issued from time to time as contemplated by this
      Agreement. Until all amounts distributable in respect of the Certificates have
      been distributed in full and the Master Servicer and the related Servicer
      otherwise have fulfilled its obligations under this Agreement or the Servicing
      Agreement, as applicable, the Trustee or the Custodian shall also retain
      possession and custody of each Mortgage File in accordance with and subject
      to
      the terms and conditions of this Agreement and the Custodial Agreement. The
      Master Servicer shall promptly deliver or cause to be delivered to the Trustee
      or the Custodian, upon the execution or receipt thereof the originals of any
      primary mortgage insurance policies, any certificates of renewal, and such
      other
      documents or instruments that constitute Mortgage Loan Documents that come
      into
      the possession of the Master Servicer from time to time.

     

    Section
      4.11  Realization
      Upon Defaulted Loans. 

     

    The
      Master Servicer shall cause each Servicer to foreclose upon, repossess or
      otherwise comparably convert the ownership of Mortgaged 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,
      all
      in accordance with this Agreement or the Servicing Agreement, as
      applicable.

     

    Section
      4.12  Compensation
      for the Master Servicer.

     

    As
      compensation for its services hereunder, the Master Servicer shall be entitled
      to receive all income and gain realized from any investment of funds in the
      Distribution Account (the “Master Servicing Compensation”). The Master Servicer
      shall be required to pay all expenses incurred by it in connection with its
      activities hereunder and shall not be entitled to reimbursement therefor except
      as provided in this Agreement.

     

    The
      amount of the Master Servicing Compensation payable to the Master Servicer
      in
      respect of any Distribution Date shall be reduced in accordance with
      Section 4.14.

     

    Section
      4.13  REO
      Property.

     

    In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      Mortgage Loan, the deed or certificate of sale shall be issued to the Trustee,
      or to its nominee, on behalf of the Certificateholders. The Master Servicer
      shall cause the related Servicer to sell, and the related Servicer agrees to
      sell, any REO Property as expeditiously as possible and in accordance with
      the
      provisions of this Agreement or the Servicing Agreement, as applicable. Further,
      the Master Servicer shall cause each Servicer to sell any REO Property prior
      to
      three years after the end of the calendar year of its acquisition by REMIC
      I,
      unless (i) the Trustee and the Securities Administrator shall have been supplied
      with an Opinion of Counsel to the effect that the holding by the Trust Fund
      of
      such REO Property subsequent to such three-year period will not result in the
      imposition of taxes on “prohibited transactions” of any REMIC hereunder as
      defined in Section 860F of the Code or cause any REMIC hereunder to fail to
      qualify as a REMIC at any time that any Certificates are outstanding, in which
      case the Trust Fund may continue to hold such Mortgaged Property (subject to
      any
      conditions contained in such Opinion of Counsel) or (ii) the related Servicer
      shall have applied for, prior to the expiration of such three-year period,
      an
      extension of such three-year period in the manner contemplated by
      Section 856(e)(3) of the Code, in which case the three-year period shall be
      extended by the applicable extension period. The Master Servicer shall cause
      each Servicer to protect and conserve, such REO Property in the manner and
      to
      the extent required by this Agreement, in accordance with the REMIC Provisions
      and in a manner that does not result in a tax on “net income from foreclosure
      property” or cause such REO Property to fail to qualify as “foreclosure
      property” within the meaning of Section 860G(a)(8) of the
      Code.

     

    The
      Master Servicer shall cause each Servicer to deposit all funds collected and
      received in connection with the operation of any REO Property in the related
      Custodial Account.

     

    The
      Master Servicer and the related Servicer upon the final disposition of any
      REO
      Property, shall be entitled to reimbursement for any related unreimbursed
      Advances and other unreimbursed advances as well as any unpaid Servicing Fees
      from Liquidation Proceeds received in connection with the final disposition
      of
      such REO Property; provided, that any such unreimbursed Advances may be
      reimbursed or paid, as the case may be, prior to final disposition, out of
      any
      net rental income or other net amounts derived from such REO
      Property.

     

    Section
      4.14  Obligation
      of the Master Servicer in Respect of Prepayment Interest
      Shortfalls.

     

    The
      Master Servicer shall deposit in the Distribution Account not later than each
      Distribution Date an amount equal to the lesser of (i) the aggregate amounts
      required to be paid by the related Servicer under this Agreement or the
      Servicing Agreement, as applicable with respect to Prepayment Interest
      Shortfalls on the Mortgage Loans serviced by such Servicer for the related
      Distribution Date, and not so paid by such Servicer and (ii) the Master
      Servicing Compensation for such Distribution Date without reimbursement
      therefor.

     

    ARTICLE
      V

    ADVANCES
      AND DISTRIBUTIONS

     

    Section
      5.01  Advances;
      Advance Facility.

     

    (a)  Each
      Servicer shall make an Advance with respect to any Mortgage Loan serviced by
      such Servicer and deposit such Advance in the Distribution Account no later
      than
      noon Eastern time on the Remittance Date in immediately available funds. A
      Servicer shall be obligated to make any such Advance only to the extent that
      such advance would not be a Nonrecoverable Advance. If a Servicer shall have
      determined that it has made a Nonrecoverable Advance or that a proposed Advance
      or a lesser portion of such Advance would constitute a Nonrecoverable Advance,
      such Servicer shall deliver (i) to the Securities Administrator for the benefit
      of the Certificateholders funds constituting the remaining portion of such
      Advance, if applicable, and (ii) to the Depositor, each Rating Agency and the
      Master Servicer an Officer’s Certificate setting forth the basis for such
      determination.

     

    In
      lieu
      of making all or a portion of such Advance from its own funds, a Servicer may
      (i) cause to be made an appropriate entry in its records relating to the related
      Custodial Account that any Amounts Held for Future Distribution has been used
      by
      the Servicer in discharge of its obligation to make any such Advance and (ii)
      transfer such funds from the related Custodial Account to the Distribution
      Account. Any funds so applied and transferred shall be replaced by the related
      Servicer by deposit in the Distribution Account, no later than the close of
      business on any future Remittance Date on which the funds on deposit in the
      related Custodial Account shall be less than the amount required to be remitted
      to the Securities Administrator on such Remittance Date; provided, however
      that
      if the rating of the related Servicer (including any Successor Servicer) is
      less
      than “BBB”, the related Servicer shall be required to replace such funds by
      deposit to the Distribution Account, no later than the close of business on
      the
      Remittance Date immediately following the Due Period or Prepayment Period for
      which such amounts relate.

     

    Each
      Servicer shall be entitled to be reimbursed from the related Custodial Account
      for all Advances of its own funds made pursuant to this Section as provided
      in Section 3.27 or pursuant to the Servicing Agreement, as applicable. The
      obligation to make Advances with respect to any Mortgage Loan shall continue
      until such Mortgage Loan is paid in full or the related Mortgaged Property
      or
      related REO Property has been liquidated or until the purchase or repurchase
      thereof (or substitution therefor) from the Trust Fund pursuant to any
      applicable provision of this Agreement, except as otherwise provided in this
      Section 5.01.

     

    Subject
      to and in accordance with the provisions of Article VIII hereof, in the event
      that a Servicer fails to make such Advance, then the Master Servicer, as
      successor to such Servicer shall be obligated to make such Advance only to
      the
      extent such Advance, if made, would not constitute a Nonrecoverable Advance,
      subject to the provisions of Sections 5.01 and 8.02.

     

    (b)  (i)
      The
      related Servicer is hereby authorized to enter into a financing or other
      facility (any such arrangement, an “Advance Facility”), the documentation for
      which complies with Section 5.01(b)(v) below, under which (1) such Servicer
      assigns or pledges its rights under this Agreement to be reimbursed for any
      or
      all Advances and/or Servicing Advances to (i) a Person, which may be a
      special-purpose bankruptcy-remote entity (an “SPV”), (ii) a Person, which may
      simultaneously assign or pledge such rights to an SPV or (iii) a lender (a
      “Lender”), which, in the case of any Person or SPV of the type described in
      either of the preceding clauses (i) or (ii), may directly or through other
      assignees and/or pledgees, assign or pledge such rights to a Person, which
      may
      include a trustee acting on behalf of holders of debt instruments (any such
      Person or any such Lender, an “Advance Financing Person”), and/or (2) an Advance
      Financing Person agrees to fund all the Advances and/or Servicing Advances
      required to be made by the Servicer pursuant to this Agreement. No consent
      of
      the Trustee, the Securities Administrator, the Master Servicer, the
      Certificateholders or any other party shall be required before the Servicer
      may
      enter into an Advance Facility nor shall the Trustee, the Securities
      Administrator, the Master Servicer or the Certificateholders be a third party
      beneficiary of any obligation of an Advance Financing Person to such Servicer.
      Notwithstanding the existence of any Advance Facility under which an Advance
      Financing Person agrees to fund Advances and/or Servicing Advances, (A) such
      Servicer (i) shall remain obligated pursuant to this Agreement to make Advances
      and/or Servicing Advances pursuant to and as required by this Agreement and
      (ii)
      shall not be relieved of such obligations by virtue of such Advance Facility
      and
      (B) neither the Advance Financing Person nor any Servicer Assignee (as
      hereinafter defined) shall have any right to proceed against or otherwise
      contact any Mortgagor for the purpose of collecting any payment that may be
      due
      with respect to any related Mortgage Loan or enforcing any covenant of such
      Mortgagor under the related Mortgage Loan documents. 

     

    (ii)  If
      the
      related Servicer enters into an Advance Facility, such Servicer and the related
      Advance Financing Person shall deliver to the Master Servicer and the Securities
      Administrator at the address set forth in Section 11.05 hereof no later
      than the Remittance Date immediately following the effective date of such
      Advance Facility a written notice (an “Advance Facility Notice”), stating (a)
      the identity of the Advance Financing Person and (b) the identity of the Person
      (the “Servicer’s Assignee”) that will, subject to Section 5.01(b)(iii)
      hereof, have the right to make withdrawals from the Custodial Account pursuant
      to Section 3.27 hereof to reimburse previously unreimbursed Advances and/or
      Servicing Advances (“Advance Reimbursement Amounts”). Advance Reimbursement
      Amounts (i) shall consist solely of amounts in respect of Advances and/or
      Servicing Advances for which the related Servicer would be permitted to
      reimburse itself in accordance with Section 3.27 hereof, assuming the
      related Servicer had made the related Advance(s) and/or Servicing Advance(s)
      and
      (ii) shall not consist of amounts payable to a successor Servicer in accordance
      with Section 3.27 hereof to the extent permitted under
      Section 5.01(b)(v) below.

     

    (iii)  Notwithstanding
      the existence of an Advance Facility, the related Servicer, on behalf of the
      Advance Financing Person and the Servicer’s Assignee, shall be entitled to
      receive reimbursements of Advances and/or Servicing Advances in accordance
      with
      Section 3.27 hereof, which entitlement may be terminated by the Advance
      Financing Person pursuant to a written notice to the Master Servicer and the
      Securities Administrator in the manner set forth in Section 11.05 hereof.
      Upon receipt of such written notice, the related Servicer shall no longer be
      entitled to receive reimbursement for any Advance Reimbursement Amounts and
      the
      Servicer’s Assignee shall immediately have the right to receive from the related
      Custodial Account all Advance Reimbursement Amounts. Notwithstanding the
      foregoing, and for the avoidance of doubt, (i) the related Servicer and/or
      the
      Servicer’s Assignee shall only be entitled to reimbursement of Advance
      Reimbursement Amounts hereunder from withdrawals from the related Custodial
      Account pursuant to Section 3.27 of this Agreement and shall not otherwise
      be entitled to make withdrawals or receive amounts that shall be deposited
      in
      the Distribution Account pursuant to Section 3.31 hereof, and (ii) none of
      the Trustee or the Certificateholders shall have any right to, or otherwise
      be
      entitled to, receive any Advance Reimbursement Amounts to which the related
      Servicer or the Servicer’s Assignee, as applicable, shall be entitled pursuant
      to Section 3.27 hereof. An Advance Facility may be terminated by the joint
      written direction of the related Servicer and the related Advance Financing
      Person. Written notice of such termination shall be delivered to the Trustee
      in
      the manner set forth in Section 11.05 hereof. None of the Depositor, Master
      Servicer, the Securities Administrator or the Trustee shall, as a result of
      the
      existence of any Advance Facility, have any additional duty or liability with
      respect to the calculation or payment of any Advance Reimbursement Amount,
      nor,
      as a result of the existence of any Advance Facility, shall the Depositor,
      Master Servicer, the Securities Administrator or the Trustee have any additional
      responsibility to track or monitor the administration of the Advance Facility
      or
      the payment of Advance Reimbursement Amounts to the Servicer’s Assignee. The
      related Servicer shall indemnify the Master Servicer, the Securities
      Administrator, Depositor, the Trustee, any successor Servicer and the Trust
      Fund
      for any claim, loss, liability or damage resulting from any claim by the related
      Advancing Financing Person, except to the extent that such claim, loss,
      liability or damage resulted from or arose out of gross negligence, recklessness
      or willful misconduct on the part of the Master Servicer, the Securities
      Administrator, Depositor, the Trustee or any successor Servicer, as the case
      may
      be. The related Servicer shall maintain and provide to any successor Servicer
      and, upon request, the Trustee a detailed accounting on a loan-by-loan basis
      as
      to amounts advanced by, pledged or assigned to, and reimbursed to any Advancing
      Financing Person. The successor Servicer shall be entitled to rely on any such
      information provided by the related Servicer, and the successor Servicer shall
      not be liable for any errors in such information.

     

    (iv)  An
      Advance Financing Person who receives an assignment or pledge of rights to
      receive Advance Reimbursement Amounts and/or whose obligations are limited
      to
      the funding of Advances and/or Servicing Advances pursuant to an Advance
      Facility shall not be required to meet the criteria for qualification as a
      Servicer under this Agreement.

     

    (v)  As
      between the related Servicer and its Advance Financing Person, on the one hand,
      and a successor Servicer and its Advance Financing Person, if any, on the other
      hand, Advance Reimbursement Amounts on a loan-by-loan basis with respect to
      each
      Mortgage Loan as to which an Advance and/or Servicing Advance shall have been
      made and be outstanding shall be allocated on a “first-in, first out” basis. In
      the event the Servicer’s Assignee shall have received some or all of an Advance
      Reimbursement Amount related to Advances and/or Servicing Advances that were
      made by a Person other than the related Servicer or its related Advance
      Financing Person in error, then the Servicer’s Assignee shall be required to
      remit any portion of such Advance Reimbursement Amount to each Person entitled
      to such portion of such Advance Reimbursement Amount. Without limiting the
      generality of the foregoing, the related Servicer shall remain entitled to
      be
      reimbursed by the Advance Financing Person for all Advances and/or Servicing
      Advances funded by the related Servicer to the extent the related Advance
      Reimbursement Amounts have not been assigned or pledged to such Advance
      Financing Person or the Servicer’s Assignee.

     

    (vi)  For
      purposes of any Officer’s Certificate of the related Servicer delivered pursuant
      to Section 5.01(a), any Nonrecoverable Advance referred to therein may have
      been made by the related Servicer. In making its determination that any Advance
      or Servicing Advance theretofore made has become a Nonrecoverable Advance,
      the
      related Servicer shall apply the same criteria in making such determination
      regardless of whether such Advance or Servicing Advance shall have been made
      by
      the related Servicer.

     

    (vii)  Any
      amendment to this Section 5.01(b) or to any other provision of this
      Agreement that may be necessary or appropriate to effect the terms of an Advance
      Facility as described generally in this Section 5.01(b), including
      amendments to add provisions relating to a successor Servicer, may be entered
      into by the Master Servicer, the Securities Administrator, the Trustee, the
      Depositor and the related Servicer without the consent of any Certificateholder,
      provided such amendment complies with Section 11.01 hereof. All reasonable
      costs and expenses (including attorneys’ fees) of each party hereto of any such
      amendment shall be borne solely by the related Servicer. The parties hereto
      hereby acknowledge and agree that: (a) the Advances and/or Servicing Advances
      financed by and/or pledged to an Advance Financing Person under any Advance
      Facility are obligations owed to the related Servicer payable only from the
      cash
      flows and proceeds received under this Agreement for reimbursement of Advances
      and/or Servicing Advances only to the extent provided herein, and none of the
      Master Servicer, the Securities Administrator, the Trustee or the Trust Fund
      are, as a result of the existence of any Advance Facility, obligated or liable
      to repay any Advances and/or Servicing Advances financed by the Advance
      Financing Person; (b) the Servicer will be responsible for remitting to the
      Advance Financing Person the applicable amounts collected by it as reimbursement
      for Advances and/or Servicing Advances funded by the Advance Financing Person,
      subject to the provisions of this Agreement; and (c) none of the Master
      Servicer, the Securities Administrator or the Trustee shall have any
      responsibility to track or monitor the administration of the financing
      arrangement between the related Servicer and any Advance Financing
      Person.

     

    Section
      5.02  Compensating
      Interest Payments.

     

    In
      the
      event that there is a Prepayment Interest Shortfall arising from a voluntary
      Principal Prepayment in part or in full by the Mortgagor with respect to any
      Mortgage Loan, the related Servicer shall, to the extent of one-half of the
      Servicing Fee with respect to such Servicer for such Distribution Date, deposit
      into the related Custodial Account, as a reduction of and to the extent of,
      one-half of the Servicing Fee with respect to such Servicer for such
      Distribution Date, no later than the close of business on the Remittance Date
      immediately preceding such Distribution Date, an amount equal to the Prepayment
      Interest Shortfall; and in case of such deposit, the related Servicer shall
      not
      be entitled to any recovery or reimbursement from the Depositor, the Trustee,
      the Sponsor, the Trust Fund, the Master Servicer or the
      Certificateholders.

     

    Section
      5.03  REMIC
      Distributions.

     

    On
      each
      Distribution Date the Securities Administrator, shall be deemed to allocate
      distributions to the REMIC Regular Interests in accordance with
      Section 5.11 hereof.

     

    Section
      5.04  Reserved.

     

    Section
      5.05  Reserved.

     

    Section
      5.06  Distributions
      on the Certificates.

     

    (a)
      On
      each Distribution Date, the Securities Administrator will withdraw funds on
      deposit in the Distribution Account and make distributions to the
      Certificateholders in the following order of priority:

     

    (i)  On
      each
      Distribution Date, the Interest Remittance Amount for such Distribution Date
      will be paid in the following order of priority:

     

    (A) to
      the
      Supplemental Interest Trust, any Net Swap Payment and any Swap Termination
      Payment owed to the Swap Provider (unless the Swap Provider is the sole
      Defaulting Party or the sole Affected Party (as defined in the ISDA Master
      Agreement) and to the extent not paid by the Securities Administrator from
      any
      upfront payment received pursuant to any replacement interest rate swap
      agreement that may be entered into by the Supplemental Interest Trust
      Trustee);

     

    (B) concurrently,
      to the Senior Certificates, pro rata based on the entitlement of each such
      Class, Current Interest and any Carryforward Interest for each such Class and
      such Distribution Date;

     

    (C) to
      the
      Class M-1 Certificates, Current Interest and any Carryforward Interest for
      such
      Class and Distribution Date;

     

    (D) to
      the
      Class M-2 Certificates, Current Interest and any Carryforward Interest for
      such
      Class and Distribution Date;

     

    (E) to
      the
      Class M-3 Certificates, Current Interest and any Carryforward Interest for
      such
      Class and Distribution Date;

     

    (F) to
      the
      Class M-4 Certificates, Current Interest and any Carryforward Interest for
      such
      Class and Distribution Date;

     

    (G) to
      the
      Class M-5 Certificates, Current Interest and any Carryforward Interest for
      such
      Class and Distribution Date; 

     

    (H) for
      application as part of Monthly Excess Cashflow for such Distribution Date,
      any
      Interest Remittance Amount remaining after application pursuant to clauses
      (A)
      through (G) above (such amount, “Monthly Excess Interest”) for such Distribution
      Date.

     

    (ii)  The
      Principal Payment Amount will be paid on each Distribution Date as
      follows:

     

    A. On
      each
      Distribution Date (x) prior to the Stepdown Date or (y) with respect to which
      a
      Trigger Event is in effect, the Principal Payment Amount will be paid in the
      following order of priority:

     

    
      	
              (i)

            	
              to
                the Supplemental Interest Trust, any Net Swap Payment and any Swap
                Termination Payment owed to the Swap Provider (unless the Swap Provider
                is
                the sole Defaulting Party or the sole Affected Party (as defined
                in the
                ISDA Master Agreement and to the extent not paid by the Securities
                Administrator from any upfront payment received pursuant to any
                replacement interest rate swap agreement that may be entered into
                by the
                Supplemental Interest Trust Trustee)) to the extent not paid from
                the
                Interest Remittance Amount on such Distribution Date;

            
	 	 
	
              (ii)

            	
              concurrently,
                to the Senior Certificates as follows:

            
	 	 
	 	
              (1)
                to the Class A-1A Certificates and Class A-1B Certificates, the Class
                A-1
                Allocation Percentage of the Principal Payment Amount remaining after
                distribution to the Supplemental Interest Trust pursuant to clause
                (i)
                above, on a pro rata basis, based on their respective Certificate
                Principal Balances, until the Certificate Principal Balance of each
                such
                Class has been reduced to zero; and 

            
	 	 
	 	
              (2)
                the Senior Sequential Allocation Percentage of the Principal Payment
                Amount remaining after distributions to the Supplemental Interest
                Trust
                pursuant to clause (i) above, in the following order of
                priority:

            
	 	 
	 	
              (a)
                to the Class A-2 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            
	 	 
	 	
              (b)
                concurrently, to the Class A-3A Certificates and the Class A-3B
                Certificates, on a pro rata basis, based on their respective Certificate
                Principal Balances, until the Certificate Principal Balance of each
                such
                Class has been reduced to zero; and 

            
	 	 
	 	
              (c)
                concurrently, to the Class A-4A Certificates and the Class A-4B
                Certificates, on a pro rata basis, based on their respective Certificate
                Principal Balances, until the Certificate Principal Balance of each
                such
                Class has been reduced to zero; provided, however that, if a Sequential
                Trigger Event is in effect for such Distribution Date, principal
                distributions to the Class A-4A Certificates and Class A-4B Certificates
                pursuant to this clause (c) will be allocated first to the Class
                A-4A
                Certificates, until its Certificate Principal Balance has been reduced
                to
                zero and then to the Class A-4B Certificates, until its Certificate
                Principal Balance has been reduced to zero;

            
	 	 
	
              (iii)

            	
              to
                the Class M-1 Certificates, until its Certificate Principal Balance
                is
                reduced to zero;

            
	 	 
	
              (iv)

            	
              to
                the Class M-2 Certificates, until its Certificate Principal Balance
                is
                reduced to zero;

            
	 	 
	
              (v)

            	
              to
                the Class M-3 Certificates, until its Certificate Principal Balance
                is
                reduced to zero;

            
	 	 
	
              (vi)

            	
              to
                the Class M-4 Certificates, until its Certificate Principal Balance
                is
                reduced to zero;

            
	 	 
	
              (vii)

            	
              to
                the Class M-5 Certificates, until its Certificate Principal Balance
                is
                reduced to zero;

            
	 	 
	
              (viii)

            	
              for
                application as part of Monthly Excess Cashflow for such Distribution
                Date
                pursuant to subclause (iii) below, any such Principal Payment Amount
                remaining after application pursuant to clauses A(i) through (vii)
                above.

            

    

    

    B. On
      each
      Distribution Date (x) on or after the Stepdown Date and (y) with respect to
      which a Trigger Event is not in effect, the Principal Payment Amount will be
      paid in the following order of priority:

     

    
      	
              (i)

            	
              to
                the Supplemental Interest Trust, any Net Swap
                Payment and any Swap Termination Payment owed to the Swap Provider
                (unless
                the Swap Provider is the sole Defaulting Party or the sole Affected
                Party
                (as defined in the ISDA Master Agreement and to the extent not paid
                by the
                Securities Administrator from any upfront payment received pursuant
                to any
                replacement interest rate swap agreement that may be entered into
                by the
                Supplemental Interest Trust Trustee)) remaining unpaid after the
                distribution of the Interest Remittance Amount on such Distribution
                Date;

            
	 	 
	
              (ii)

            	
              concurrently,
                to the Senior Certificates, the Senior Principal Payment Amount,
                as
                follows:

            
	 	 
	 	
              (1)
                to the Class A-1A Certificates and Class A-1B Certificates, the Class
                A-1
                Allocation Percentage of the Senior Principal Payment Amount, on
                a pro
                rata basis, based on their respective Certificate Principal Balances,
                until the Certificate Principal Balance of each such Class has been
                reduced to zero; and 

            
	 	 
	 	
              (2)
                the Senior Sequential Allocation Percentage of the Senior Principal
                Payment Amount, in the following order of priority:

            
	 	 
	 	
              (a)
                to the Class A-2 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            
	 	 
	 	
              (b)
                concurrently, to the Class A-3A Certificates and the Class A-3B
                Certificates, on a pro rata basis, based on their respective Certificate
                Principal Balances, until the Certificate Principal Balance of each
                such
                Class has been reduced to zero; and 

            
	 	 
	 	
              (c)
                concurrently, to the Class A-4A Certificates and the Class A-4B
                Certificates, on a pro rata basis, based on their respective Certificate
                Principal Balances, until the Certificate Principal Balance of each
                such
                Class has been reduced to zero; 

            
	 	 
	
              (iii)

            	
              to
                the Class M-1 Certificates, the Class M-1 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance is
                reduced
                to zero;

            
	 	 
	
              (iv)

            	
              to
                the Class M-2 Certificates, the Class M-2 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance is
                reduced
                to zero;

            
	 	 
	
              (v)

            	
              to
                the Class M-3 Certificates, the Class M-3 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance is
                reduced
                to zero; 

            
	 	 
	
              (vi)

            	
              to
                the Class M-4 Certificates, the Class M-4 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance is
                reduced
                to zero; 

            
	 	 
	
              (vii)

            	
              to
                the Class M-5 Certificates, the Class M-5 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance is
                reduced
                to zero;

            
	 	 
	
              (viii)

            	
              for
                application as part of Monthly Excess Cashflow for such Distribution
                Date
                pursuant to clause (iii) below, any such Principal Payment Amount
                remaining after application pursuant to clauses B(i) through (vii)
                above.

            
	 	 

    

     

    Notwithstanding
      the priority of distributions described above with respect to the Senior
      Certificates, on any Distribution Date which occurs after the Certificate
      Principal Balances of the Mezzanine Certificates have been reduced to zero
      distributions in respect of principal to the Senior Certificates will be made
      on
      a pro rata basis, based on the Certificate Principal Balance of each such Class,
      until the Certificate Principal Balance of each such Class has been reduced
      to
      zero; provided, however that, if a Sequential Trigger Event is in effect for
      such Distribution Date, principal distributions to the Class A-4A Certificates
      and Class A-4B Certificates pursuant to this paragraph will be allocated first
      to the Class A-4A Certificates, until its Certificate Principal Balance has
      been
      reduced to zero and then to the Class A-4B Certificates, until its Certificate
      Principal Balance has been reduced to zero.

     

    (iii)  On
      each
      Distribution Date, the Monthly Excess Cashflow will be distributed in the
      following order of priority:

     

    (A)(i) until
      the
      aggregate Certificate Principal Balance of the Senior Certificates and Mezzanine
      Certificates equals the Aggregate Loan Balance for such Distribution Date minus
      the Targeted Overcollateralization Amount for such Distribution Date, on each
      Distribution Date (x) prior to the Stepdown Date or (y) with respect to which
      a
      Trigger Event is in effect, to the extent of Monthly Excess Interest for such
      Distribution Date, to the Senior Certificates and Mezzanine Certificates, in
      the
      following order of priority:

     

    
      	
              (1)
                

            	
              Concurrently,
                to the Senior Certificates as follows:

            
	 	 
	 	
              (a)
                to the Class A-1A Certificates and Class A-1B Certificates, the Class
                A-1
                Allocation Percentage of the Monthly Excess Cashflow, on a pro rata
                basis,
                based on their respective Certificate Principal Balances, until the
                Certificate Principal Balance of each such Class has been reduced
                to zero;
                and 

            
	 	 
	 	
              (b)
                the Senior Sequential Allocation Percentage of the Monthly Excess
                Cashflow, in the following order of priority:

            
	 	 
	 	
              (I)
                to the Class A-2 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            
	 	 
	 	
              (II)
                concurrently, to the Class A-3A Certificates and the Class A-3B
                Certificates, on a pro rata basis, based on their respective Certificate
                Principal Balances, until the Certificate Principal Balance of each
                such
                Class has been reduced to zero; and 

            
	 	 
	 	
              (III)
                concurrently, to the Class A-4A Certificates and the Class A-4B
                Certificates, on a pro rata basis, based on their respective Certificate
                Principal Balances, until the Certificate Principal Balance of each
                such
                Class has been reduced to zero; provided, however that, if a Sequential
                Trigger Event is in effect for such Distribution Date, principal
                distributions to the Class A-4A Certificates and Class A-4B Certificates
                pursuant to this clause (III) will be allocated first to the Class
                A-4A
                Certificates, until its Certificate Principal Balance has been reduced
                to
                zero and then to the Class A-4B Certificates, until its Certificate
                Principal Balance has been reduced to zero;

            
	 	 
	
              (2)
                

            	
              To
                the Class M-1 Certificates, until its Certificate Principal Balance
                is
                reduced to zero;

            
	 	 
	
              (3)
                

            	
              To
                the Class M-2 Certificates, until its Certificate Principal Balance
                is
                reduced to zero;

            
	 	 
	
              (4)
                

            	
              To
                the Class M-3 Certificates, until its Certificate Principal Balance
                is
                reduced to zero; 

            
	 	 
	
              (5)
                

            	
              To
                the Class M-4 Certificates, until its Certificate Principal Balance
                is
                reduced to zero; and

            
	 	 
	
              (6)

            	
              To
                the Class M-5 Certificates, until its Certificate Principal Balance
                is
                reduced to zero;

            

    

    

    (ii) on
      each
      Distribution Date on or after the Stepdown Date and with respect to which a
      Trigger Event is not in effect, to fund any principal distributions required
      to
      be made on such Distribution Date set forth in Section 5.06(ii)B after
      giving effect to the distribution of the Principal Payment Amount for such
      date,
      in accordance with the priorities set forth therein;

     

    (B) to
      the
      Senior Certificates, any Deferred Amount for each such Class, on a pro rata
      basis, based on the amount due with respect to each such Class;

     

    (C) to
      the
      Class M-1 Certificates, any Deferred Amount for such Class; 

     

    (D) to
      the
      Class M-2 Certificates, any Deferred Amount for such Class; 

     

    (E) to
      the
      Class M-3 Certificates, any Deferred Amount for such Class;

     

    (F) to
      the
      Class M-4 Certificates, any Deferred Amount for such Class;

     

    (G) to
      the
      Class M-5 Certificates, any Deferred Amount for such Class;

     

    (H) to
      the
      Basis Risk Shortfall Reserve Fund and then from the Basis Risk Shortfall Reserve
      Fund to the Senior Certificates, concurrently, any Basis Risk Shortfall for
      each
      such Class, on a pro rata basis based on the entitlement of each such
      Class;

     

    (I) to
      the
      Basis Risk Shortfall Reserve Fund and then from the Basis Risk Shortfall Reserve
      Fund to the Class M-1 Certificates, any Basis Risk Shortfall for such Class;
      

     

    (J) to
      the
      Basis Risk Shortfall Reserve Fund and then from the Basis Risk Shortfall Reserve
      Fund to the Class M-2 Certificates, any Basis Risk Shortfall for such Class;
      

     

    (K) to
      the
      Basis Risk Shortfall Reserve Fund and then from the Basis Risk Shortfall Reserve
      Fund to the Class M-3 Certificates, any Basis Risk Shortfall for such Class;
      

     

    (L) to
      the
      Basis Risk Shortfall Reserve Fund and then from the Basis Risk Shortfall Reserve
      Fund to the Class M-4 Certificates, any Basis Risk Shortfall for such
      Class;

     

    (M) to
      the
      Basis Risk Shortfall Reserve Fund and then from the Basis Risk Shortfall Reserve
      Fund to the Class M-5 Certificates, any Basis Risk Shortfall for such
      Class;

     

    (N) to
      the
      Supplemental Interest Trust, any Swap Termination Payment owed to the Swap
      Provider in the event of a Swap Provider Trigger Event not paid on prior
      Distribution Dates and to the extent not paid by the Securities Administrator
      from any upfront payment received pursuant to any replacement interest rate
      swap
      agreement that may be entered into by the Supplemental Interest Trust
      Trustee;

     

    (O) to
      the
      Class X Certificates, the Class X Distribution Amount; and

     

    (P) to
      the
      Class R Certificates (in respect of the Class R-3 Interest), any remaining
      amount. It is not anticipated that any amounts will be distributed to the Class
      R Certificates under this clause (P).

     

    Notwithstanding
      the foregoing, distributions pursuant to clauses (B) through (M) above on any
      Distribution Date will be made after giving effect to payments received pursuant
      to the Swap Agreement. On each Distribution Date, the Securities Administrator,
      after making the required distributions of interest and principal to the
      Certificates as described in clauses (i) and (ii) above and after the
      distribution of the Monthly Excess Cashflow as described in clause (iii) above,
      will withdraw from the Basis Risk Shortfall Reserve Fund the amounts on deposit
      therein and distribute such amounts to the Senior Certificates and Mezzanine
      Certificates in respect of any Basis Risk Shortfalls in the following manner
      and
      order of priority: first, concurrently to the Senior Certificates, on a pro
      rata
      basis, based on the entitlement of each such Class, the amount of any Basis
      Risk
      Shortfalls allocated to such Class for such Distribution Date; second, to the
      Class M-1 Certificates, the amount of any Basis Risk Shortfall allocated to
      such
      Class for such Distribution Date for such Class; third, to the Class M-2
      Certificates, the amount of any Basis Risk Shortfall allocated to such Class
      for
      such Distribution Date for such Class; fourth, to the Class M-3 Certificates,
      the amount of any Basis Risk Shortfalls allocated to such Class for such
      Distribution Date for such Class; fifth, to the Class M-4 Certificates, the
      amount of any Basis Risk Shortfalls allocated to such Class for such
      Distribution Date; and sixth, to the Class M-5 Certificates, the amount of
      any
      Basis Risk Shortfalls allocated to such Class for such Distribution
      Date.

     

    (b) Subject
      to Section 10.02 hereof respecting the final distribution on a Class of
      Senior Certificates or Mezzanine Certificates, on each Distribution Date the
      Securities Administrator shall make distributions to each Holder of a Senior
      Certificate or Mezzanine Certificate of record on the preceding Record Date
      either by wire transfer in immediately available funds to the account of such
      holder at a bank or other entity having appropriate facilities therefor, if
      (i)
      such Holder has so notified the Securities Administrator at least five (5)
      Business Days prior to the related Record Date and (ii) such Holder shall hold
      Regular Certificates with aggregate principal denominations of not less than
      $1,000,000 or evidencing a Percentage Interest aggregating ten percent (10%)
      or
      more with respect to such Class or, if not, by check mailed by first class
      mail
      to such Certificateholder at the address of such holder appearing in the
      Certificate Register. Notwithstanding the foregoing, but subject to
      Section 10.02 hereof respecting the final distribution, distributions with
      respect to Senior Certificates and Mezzanine Certificates registered in the
      name
      of a Depository shall be made to such Depository in immediately available
      funds.

     

    (c) Net
      Swap
      Payments and Swap Termination Payments (other than Swap Termination Payments
      resulting from a Swap Provider Trigger Event) payable by the Supplemental
      Interest Trust to the Swap Provider pursuant to the Swap Agreement shall be
      deducted from Interest Remittance Amount, and to the extent of any such
      remaining amounts due, from Principal Remittance Amount, prior to any
      distributions to the Holders of the Certificates. On each Distribution Date,
      such amounts will be remitted to the Supplemental Interest Trust, first to
      make
      any Net Swap Trust Payment owed to the Swap Provider pursuant to the Swap
      Agreement for such Distribution Date, and second to make any Swap Termination
      Payment (not due to a Swap Provider Trigger Event) owed to the Swap Provider
      pursuant to the Swap Agreement for such Distribution Date. Any Swap Termination
      Payment due as a result of the occurrence of a Swap Provider Trigger Event
      owed
      to the Swap Provider pursuant to the Swap Agreement will be subordinated to
      distributions to the Holders of the Senior Certificates and Mezzanine
      Certificates and shall be paid as set forth in Section
      5.06(a)(iii)(N).

     

    (d) On
      each
      Distribution Date, the Securities Administrator shall distribute from the
      amounts received from the Swap Provider in respect of any Net Swap Trust Payment
      then on deposit in the Supplemental Interest Trust in the following order of
      priority:

     

    (iv)  concurrently
      to the Senior Certificates, on a pro rata basis based on the entitlement of
      each
      such Class, in an amount equal to any Current Interest and any Carryforward
      Interest for each such Class to the extent not covered by the Interest
      Remittance Amount on that Distribution Date and solely to the extent the amount
      of any Current Interest and Carryforward Interest is a result of the allocation
      of the interest portion of Realized Losses;

     

    (v)  sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4 and Class M-5 Certificates,
      in
      that order, in an amount equal to any Current Interest and any Carryforward
      Interest for each such Class to the extent not covered by the Interest
      Remittance Amount on that Distribution Date and solely to the extent the amount
      of any Current Interest and Carryforward Interest is as a result of the
      allocation of the interest portion of Realized Losses; 

     

    (vi)  to
      the
      Senior Certificates and Mezzanine Certificates then entitled to distributions
      of
      principal in the priority provided above, in an amount necessary to maintain
      or
      restore the Targeted Overcollateralization Amount to the extent not covered
      by
      the Monthly Excess Cashflow on that Distribution Date;

     

    (vii)  first,
      concurrently, to the Senior Certificates, on a pro rata basis, based on the
      entitlement of each such Class and then, to the Class M-1, Class M-2, Class
      M-3,
      Class M-4 and Class M-5 Certificates, in that order, in an amount equal to
      any
      applicable Deferred Amounts, with interest thereon at the applicable
      Pass-Through Rate, prior to taking into account amounts available to pay
      Deferred Amounts from Monthly Excess Cashflow on that Distribution
      Date

     

    (viii)  to
      the
      Basis Risk Shortfall Reserve Fund, to pay the Senior Certificates and Mezzanine
      Certificates as follows: first, to the Senior Certificates, on a pro rata basis
      based on the entitlement of each such Class, based on the aggregate amount
      of
      Basis Risk Shortfall Amounts for each such Class of Senior Certificates for
      such
      Distribution Date, and second, sequentially, to the Class M-1, Class M-2, Class
      M-3, Class M-4 and Class M-5 Certificates, in that order, any related Basis
      Risk
      Shortfall Amount for each such Class for such Distribution Date, in each case
      prior to giving effect to any withdrawals from the Basis Risk Shortfall Reserve
      Fund or Monthly Excess Cashflow on that Distribution Date; and

     

    (ix)  to
      the
      Class X Certificates, any remaining amounts.

     

    Section
      5.07  Reserved.

     

    Section
      5.08  Reserved.

     

    Section
      5.09  Allocation
      of Realized Losses on the Mortgage Loans.

     

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

     

    (b)  The
      interest portion of Realized Losses on the Mortgage Loans shall be allocated
      to
      the Certificates as described in Section 1.02 hereof.

     

    (c)  The
      principal portion of all Realized Losses on the Mortgage Loans shall be
      allocated on each Distribution Date as follows: first, in reduction of Net
      Swap
      Payments paid by the Swap Provider under the Swap Agreement and the Monthly
      Excess Cashflow for such Distribution Date; second, to the Class X Certificates,
      until the Certificate Principal Balance thereof has been reduced to zero; third,
      to the Class M-5 Certificates, until the Certificate Principal Balance thereof
      has been reduced to zero; fourth, to the Class M-4 certificates, until the
      Certificate Principal Balance thereof has been reduced to zero; fifth, to the
      Class M-3 Certificates, until the Certificate Principal Balance thereof has
      been
      reduced to zero; sixth, to the Class M-2 Certificates, until the Certificate
      Principal Balance thereof has been reduced to zero; seventh, to the Class M-1
      Certificates, until the Certificate Principal Balance thereof has been reduced
      to zero; and eighth, to the Senior Certificates, on a pro rata basis, based
      on
      the Certificate Principal Balance of each such Class, until the Certificate
      Principal Balance of each such Class has been reduced to zero; provided, however
      that, the pro rata allocation of Realized Losses otherwise allocable to the
      Class A-1A Certificates will first be allocated to the Class A-1B Certificates,
      until the Certificate Principal Balance thereof has been reduced to zero and
      then to the Class A-1A Certificates, until the Certificate Principal Balance
      thereof has been reduced to zero; provided, further that, the pro rata
      allocation of Realized Losses otherwise allocable to the Class A-3A Certificates
      will first be allocated to the Class A-3B Certificates, until the Certificate
      Principal Balance thereof has been reduced to zero and then to the Class A-3A
      Certificates, until the Certificate Principal Balance thereof has been reduced
      to zero; provided, further that, the pro rata allocation of Realized Losses
      otherwise allocable to the Class A-4A Certificates will first be allocated
      to
      the Class A-4B Certificates, until the Certificate Principal Balance thereof
      has
      been reduced to zero and then to the Class A-4A Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero. 

     

    All
      such
      Realized Losses to be allocated to the Certificate Principal Balances of the
      Senior Certificates and the Mezzanine Certificates on any Distribution Date
      shall be so allocated after the actual distributions to be made on such date
      as
      provided above. All references above to the Certificate Principal Balance of
      any
      Class of Senior Certificates or any Class of Mezzanine Certificates shall be
      to
      the Certificate Principal Balance of such Class immediately prior to the
      relevant Distribution Date, before reduction thereof by any Realized Losses,
      in
      each case to be allocated to such Class of Certificates, on such Distribution
      Date.

     

    Any
      allocation of the principal portion of Realized Losses to a Class of Senior
      Certificates or a Class of Mezzanine Certificates on any Distribution Date
      shall
      be made by reducing the Certificate Principal Balance thereof by the amount
      so
      allocated; any allocation of Realized Losses to a Class X Certificate shall
      be
      made by reducing the amount otherwise payable in respect thereof pursuant to
      Section 5.09(c). 

     

    All
      such
      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.

     

    (d)  Notwithstanding
      anything to the contrary contained herein, if on any Distribution Date the
      Securities Administrator discovers, based solely on the reports delivered by
      the
      related Servicer under this Agreement or the Servicing Agreement, as applicable,
      that any Subsequent Recoveries have been collected by such Servicer with respect
      to the Mortgage Loans, the amount of such Subsequent Recoveries will be applied
      to increase the Certificate Principal Balance of the Class of Certificates
      with
      the highest payment priority to which Realized Losses on the Mortgage Loans
      have
      been allocated (or, in the case of the Senior Certificates, on a pro rata basis,
      based on the amount of Realized Losses allocated to each such Class), but not
      by
      more than the amount of Realized Losses previously allocated to such Class
      pursuant to this Section 5.09. After the Certificate Principal Balances of
      any Class of Certificates has been increased up to the amount of Realized Losses
      allocated thereto pursuant to this Section 5.09 to the extent that such
      Applied Loss Amounts have not been paid to such Class as a Deferred Amount,
      any
      additional Subsequent Recoveries with respect to the Mortgage Loans will be
      applied to increase the Certificate Principal Balance of the other Classes
      of
      Certificates, beginning with the Class of Certificates with the next highest
      payment priority (or in the case of any Senior Certificates with unpaid Deferred
      Amounts (on a pro rata basis, based on the entitlement of each such Class),
      up
      to the amount of such Realized Losses previously allocated to such Class of
      Certificates pursuant to this Section 5.09 but only to the extent that any
      such Applied Loss Amount has not been paid to any Class of Certificates as
      a
      Deferred Amount. Holders of such Certificates will not be entitled to any
      payment in respect of current interest on the amount of such increases for
      any
      Accrual Period preceding the Distribution Date on which such increase occurs.
      Any such increases shall be applied to the Certificate Principal Balance of
      each
      Class of Certificates in accordance with its respective Percentage Interest.
      

     

    (e)  With
      respect to the REMIC I Regular Interests, all Realized Losses on the Mortgage
      Loans shall be allocated on each Distribution Date first, to REMIC I Regular
      Interest I until the Uncertificated Principal Balance has been reduced to zero,
      and second, to REMIC I Regular Interest I-1-A through REMIC I Regular Interest
      I-60-B, starting with the lowest numerical denomination until such REMIC I
      Regular Interest has been reduced to zero, provided that, for REMIC I Regular
      Interests with the same numerical denomination, such Realized Losses shall
      be
      allocated pro rata between such REMIC I Regular Interests. 

     

    (f)  All
      Realized Losses on the Mortgage Loans shall be allocated on each Distribution
      Date to the following REMIC II Regular Interests in the specified percentages,
      as follows: first, to Uncertificated Accrued Interest payable to the REMIC
      II
      Regular Interest LT-AA and REMIC II Regular Interest LT-ZZ up to an aggregate
      amount equal to the REMIC II Interest Loss Allocation Amount, 98% and 2%,
      respectively; second, to the Uncertificated Principal Balances of REMIC II
      Regular Interest LT-AA and REMIC II Regular Interest LT-ZZ up to an aggregate
      amount equal to the REMIC II Principal Loss Allocation Amount, 98% and 2%,
      respectively; third, to the Uncertificated Principal Balances of REMIC II
      Regular Interest LT-AA, REMIC II Regular Interest LT-M5 and REMIC II Regular
      Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-M5 has been reduced to zero; fourth,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC
      II Regular Interest LT-M4 and REMIC II Regular Interest LT-ZZ, 98%, 1% and
      1%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest LT-M4 has been reduced to zero; fifth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M3
      and
      REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the
      Uncertificated Principal Balance of REMIC II Regular Interest LT-M3 has been
      reduced to zero; sixth, to the Uncertificated Principal Balances of REMIC II
      Regular Interest LT-AA, REMIC II Regular Interest LT-M2 and REMIC II Regular
      Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-M2 has been reduced to zero; seventh,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC
      II Regular Interest LT-M1 and REMIC II Regular Interest LT-ZZ, 98%, 1% and
      1%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest LT-M1 has been reduced to zero; and eighth, to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-AA, 98%, to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-A1A, REMIC II Regular Interest
      LT-A1B, REMIC II Regular Interest LT-A2, REMIC II Regular Interest LT-A3A,
      REMIC
      II Regular Interest LT-A3B, REMIC II Regular Interest LT-A4A and REMIC II
      Regular Interest LT-A4B, 1% on a pro rata basis, based on the Uncertificated
      Principal Balance of each such REMIC II Regular Interest and to the
      Uncertificated Principal Balance of REMIC II Regular Interest LT-ZZ, 1%, until
      the Uncertificated Principal Balances of REMIC II Regular Interest LT-A1A,
      REMIC
      II Regular Interest LT-A1B, REMIC II Regular Interest LT-A2, REMIC II Regular
      Interest LT-A3A, REMIC II Regular Interest LT-A3B, REMIC II Regular Interest
      LT-A4A and REMIC II Regular Interest LT-A4B have been reduced to zero, provided,
      however that, the pro rata allocation of Realized Losses otherwise allocable
      to
      REMIC II Regular Interest LT-A1A will first be allocated to REMIC II Regular
      Interest LT-A1B, until the Uncertificated Principal Balance thereof has been
      reduced to zero and then to REMIC II Regular Interest LT-A1A, until the
      Uncertificated Principal Balance thereof has been reduced to zero; provided,
      further that, the pro rata allocation of Realized Losses otherwise allocable
      to
      REMIC II Regular Interest LT-A3A will first be allocated to REMIC II Regular
      Interest LT-A3B, until the Uncertificated Principal Balance thereof has been
      reduced to zero and then to REMIC II Regular Interest LT-A3A, until the
      Uncertificated Principal Balance thereof has been reduced to zero; provided,
      further that, the pro rata allocation of Realized Losses otherwise allocable
      to
      REMIC II Regular Interest LT-A4A will first be allocated to REMIC II Regular
      Interest LT-A4B, until the Uncertificated Principal Balance thereof has been
      reduced to zero and then to REMIC II Regular Interest LT-A4B, until the
      Uncertificated Principal Balance thereof has been reduced to zero.

     

    Section
      5.10  Monthly
      Statements to Certificateholders.

     

    (a)  Not
      later
      than each Distribution Date, the Securities Administrator shall prepare and
      make
      available to each Holder of Certificates, the Depositor and the Credit Risk
      Manager via its website a statement setting forth the following information
      for
      the Certificates:

     

    (i)  the
      Interest Accrual Period and general Distribution Dates for each Class of
      Certificates;

     

    (ii)  the
      Pass-Through Rate for each Class of Certificates with respect to the current
      Accrual Period;

     

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

     

    (iv)  the
      amount of the related distribution to Holders of each Class allocable to
      principal, separately identifying (A) the aggregate amount of any Principal
      Prepayments included therein, (B) the aggregate of all scheduled payments of
      principal included therein, (C) the amount of Prepayment Charges distributed
      to
      the Class P Certificates and (D) the Monthly Excess Interest, if
      any;

     

    (v)  the
      amount distributed to Holders of each Class on such Distribution Date allocable
      to interest;

     

    (vi)  the
      Certificate Principal Balance or Certificate Notional Balance of each Class
      of
      Certificates, if applicable, after giving effect (i) to all distributions
      allocable to principal on such Distribution Date and (ii) the allocation of
      any
      Realized Losses for such Distribution Date;

     

    (vii)  the
      aggregate amount of P&I Advances included in the distributions on the
      Distribution Date;

     

    (viii)  the
      aggregate amount of Relief Act Interest Shortfalls for such Distribution
      Date;

     

    (ix)  the
      aggregate amount of any Prepayment Interest Shortfall for such Distribution
      Date, to the extent not covered by payments by the related Servicer pursuant
      to
      Section 3.27 of this Agreement or the Servicing Agreement, as applicable or
      the Master Servicer pursuant to Section 4.14 of this
      Agreement;

     

    (x)  the
      cumulative amount of Realized Losses for the Mortgage Loans to date and, in
      addition, if the Certificate Principal Balance of any Class of Certificates
      have
      been reduced to zero, the cumulative amount of any Realized Losses that have
      not
      been allocated to any Class of Certificates;

     

    (xi)  the
      Overcollateralization Amount, the Senior Enhancement Percentage, any
      Overcollateralization Deficiency Amount and any Overcollateralization Release
      Amount for such Distribution Date;

     

    (xii)  the
      amount of any Prepayment Charges remitted by the Servicers;

     

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

     

    (xiv)  the
      number and Scheduled Principal Balance of all the Mortgage Loans for the
      following Distribution Date;

     

    (xv)  the
      number and aggregate principal balance of any Mortgage Loans that were (A)
      delinquent (exclusive of Mortgage Loans in foreclosure) using the “OTS” method
      (1) one scheduled payment is delinquent, (2) two scheduled payments are
      delinquent, (3) three scheduled payments are delinquent and (4) foreclosure
      proceedings have been commenced, and loss information for the period; the number
      and aggregate principal balance of any Mortgage Loans in respect of which (A)
      one scheduled payment is delinquent, (B) two scheduled payments are delinquent,
      (C) three or more scheduled payments are delinquent and (D) foreclosure
      proceedings have been commenced, and loss information for the
      period;

     

    (xvi)  with
      respect to any Mortgage Loan that was liquidated during the preceding calendar
      month, the loan number and the Stated Principal Balance of, and Realized Loss
      on, such Mortgage Loan as of the close of business on the Determination Date
      preceding such Distribution Date;

     

    (xvii)  the
      total
      number and principal balance of any real estate owned or REO Properties and
      the
      Mortgage Loans in the aggregate as of the close of business on the Determination
      Date preceding such Distribution Date;

     

    (xviii)  the
      three
      month rolling average of the percent equivalent of a fraction, the numerator
      of
      which is the aggregate scheduled principal balance of the Mortgage Loans that
      are sixty (60) days or more delinquent or are in bankruptcy or foreclosure
      or
      are REO Properties, and the denominator of which is the scheduled principal
      balances of all of the Mortgage Loans, as applicable as of the last day of
      such
      Distribution Date; 

     

    (xix)  the
      aggregate Stated Principal Balance of Mortgage Loans that are sixty (60) days
      or
      more delinquent or are in bankruptcy or foreclosure or are REO
      properties;

     

    (xx)  the
      aggregate Servicing Fees received by the Servicers during the related Due
      Period;

     

    (xxi)  the
      amount of the Credit Risk Management Fees paid to the Credit Risk Manager and/or
      the Sponsor for such Distribution Date;

     

    (xxii)  the
      amount, if any, of other fees or expenses accrued and paid, with an
      identification of the payee and the general purpose of such fees;

     

    (xxiii)  the
      amount of any Basis Risk Shortfalls and the amount in the Basis Risk Shortfall
      Reserve Fund after all deposits and withdrawals on such Distribution
      Date;

     

    (xxiv)  amounts
      payable in respect of the Swap Agreement; and

     

    (xxv)  whether
      the Stepdown Date has occurred and whether any Trigger Event or Sequential
      Trigger Event is in effect.

     

    The
      Securities Administrator may make the foregoing monthly statement (and, at
      its
      option, any additional files containing the same information in an alternative
      format) available each month to Certificateholders via the Securities
      Administrator’s internet website. The Securities Administrator’s internet
      website shall initially be located at “www.ctslink.com”. Assistance in using the
      website can be obtained by calling the Securities Administrator’s customer
      service desk at (301) 815-6600. Parties that are unable to use the above
      distribution options are entitled to have a paper copy mailed to them via first
      class mail by calling the customer service desk and indicating such. The
      Securities Administrator may change the way monthly statements are distributed
      in order to make such distributions more convenient or more accessible to the
      above parties.

     

    The
      Securities Administrator shall be entitled to rely on but shall not be
      responsible for the content or accuracy of any information provided by third
      parties for purposes of preparing such statement and may affix thereto any
      disclaimer it deems appropriate in its reasonable discretion (without suggesting
      liability on the part of any other party hereto).

     

    (b)  The
      Securities Administrator’s responsibility for making the above information
      available to the Certificateholders is limited to the availability, timeliness
      and accuracy of the information provided by the Servicers, the Cap Provider
      and
      the Swap Provider. The Securities Administrator will make available a copy
      of
      each statement provided pursuant to this Section 5.10 to each Rating
      Agency.

     

    (c)  Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall cause to be furnished upon written request to each Person
      who at any time during the calendar year was a Certificateholder, a statement
      containing the information set forth in clauses (a)(i) and (a)(ii) of this
      Section 5.10 aggregated for such calendar year or applicable portion
      thereof during which such Person was a Certificateholder. Such obligation of
      the
      Securities Administrator shall be deemed to have been satisfied to the extent
      that substantially comparable information shall be provided by the Securities
      Administrator pursuant to any requirements of the Code as from time to time
      in
      effect.

     

    (d)  Upon
      filing with the Internal Revenue Service, the Securities Administrator shall
      furnish to the Holders of the Residual Certificates the applicable Form 1066
      and
      each applicable Form 1066Q and shall respond promptly to written requests made
      not more frequently than quarterly by any Holder of a Residual Certificate
      with
      respect to the following matters:

     

    (i)  The
      original projected principal and interest cash flows on the Closing Date on
      each
      Class of regular and residual interests created hereunder and on the Mortgage
      Loans, based on the Prepayment Assumption;

     

    (ii)  The
      projected remaining principal and interest cash flows as of the end of any
      calendar quarter with respect to each Class of regular and residual interests
      created hereunder and the Mortgage Loans, based on the Prepayment
      Assumption;

     

    (iii)  The
      applicable Prepayment Assumption and any interest rate assumptions used in
      determining the projected principal and interest cash flows described
      above;

     

    (iv)  The
      original issue discount (or, in the case of the Mortgage Loans, market discount)
      or premium accrued or amortized through the end of such calendar quarter with
      respect to each Class of regular or residual interests created hereunder and
      to
      the Mortgage Loans, together with each constant yield to maturity used in
      computing the same;

     

    (v)  The
      treatment of losses realized with respect to the Mortgage Loans or the regular
      interests created hereunder, including the timing and amount of any cancellation
      of indebtedness income of a REMIC with respect to such regular interests or
      bad
      debt deductions claimed with respect to the Mortgage Loans;

     

    (vi)  The
      amount and timing of any non-interest expenses of a REMIC; and

     

    (vii)  Any
      taxes
      (including penalties and interest) imposed on the REMIC, including, without
      limitation, taxes on “prohibited transactions,” “contributions” or “net income
      from foreclosure property” or state or local income or franchise
      taxes.

     

    The
      information pursuant to clauses (i), (ii), (iii) and (iv) above shall be
      provided by the Depositor pursuant to Section 9.13.

     

    Section
      5.11  REMIC
      Designations and REMIC Allocations.

     

    (a)  The
      Securities Administrator shall elect that each of REMIC I, REMIC II, REMIC
      III,
      REMIC IV, REMIC V and REMIC VI shall be treated as a REMIC under Section 860D
      of
      the Code. Any inconsistencies or ambiguities in this Agreement or in the
      administration of this Agreement shall be resolved in a manner that preserves
      the validity of such REMIC elections. The REMIC I Regular Interests shall
      constitute the assets of REMIC II. The REMIC II Regular Interests shall
      constitute the assets of REMIC III, the Class X Interest shall constitute the
      assets of REMIC IV, The Class P Interest shall constitute the assets of REMIC
      V
      and the Class IO Interest shall constitute the assets of REMIC VI.

     

    (b)  Reserved;

     

    (c)  Reserved;

     

    (d)  On
      each
      Distribution Date, the following amounts, in the following order of priority,
      shall be distributed by REMIC I to REMIC II on account of the REMIC I Regular
      Interests or withdrawn from the Distribution Account and distributed to the
      Holders of the Class R-1 Interest, as the case may be:

     

    (i)  to
      Holders of each of REMIC I Regular Interest I and REMIC I Regular Interest
      I-1-A
      through I-60-B, pro rata, in an amount equal to (A) the Uncertificated Accrued
      Interest for such REMIC I Regular Interests for such Distribution Date, plus
      (B)
      any amounts payable in respect thereof remaining unpaid from previous
      Distribution Dates; 

     

    (ii)  to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      above, payments of principal shall be allocated as follows: first, to REMIC
      I
      Regular interests I-1-A through I-60-B starting with the lowest numerical
      denomination until the Uncertificated Principal Balance of each such REMIC
      I
      Regular Interest is reduced to zero, provided that, for REMIC I Regular
      Interests with the same numerical denomination, such payments of principal
      shall
      be allocated pro rata between such REMIC I Regular Interests, and second, to
      the
      extent of any Overcollateralization Release Amounts, to REMIC I Regular Interest
      I until the Uncertificated Principal Balance of such REMIC I Regular Interest
      is
      reduced to zero; and

     

    (iii)  to
      the
      Holders of REMIC I Regular Interest LT-P, (A) on each Distribution Date, 100%
      of
      the amount paid in respect of Prepayment Charges on the Mortgage Loans and
      (B)
      on the Distribution Date in September 2011 until $100 has been distributed
      pursuant to this clause.

     

    (e) On
      each
      Distribution Date, the following amounts, in the following order of priority,
      shall be distributed by REMIC II to REMIC III on account of the REMIC II Regular
      Interests or withdrawn from the Distribution Account and distributed to the
      Holders of the Class R-2 Interest, as the case may be:

     

    (iv)  first,
      to
      the Holders of REMIC II Regular Interest LT-IO, in an amount equal to (A)
      Uncertificated Accrued Interest for such REMIC II Regular Interest for such
      Distribution Date, plus (B) any amounts in respect thereof remaining unpaid
      from
      previous Distribution Dates and then to the Holders of REMIC II Regular Interest
      LT-AA, REMIC II Regular Interest LT-A1A, REMIC II Regular Interest LT-A1B,
      REMIC
      II Regular Interest LT-A2, REMIC II Regular Interest LT-A3A, REMIC II Regular
      Interest LT-A3B, REMIC II Regular Interest LT-A4A, REMIC II Regular Interest
      LT-A4B, REMIC II Regular Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC
      II Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC II Regular
      Interest LT-M5 and REMIC II Regular Interest LT-ZZ, pro rata, in an amount
      equal
      to (A) the Uncertificated Accrued Interest for each such REMIC II Regular
      Interest for such Distribution Date, plus (B) any amounts in respect thereof
      remaining unpaid from previous Distribution Dates. Amounts payable as
      Uncertificated Accrued Interest in respect of REMIC II Regular Interest LT-ZZ
      shall be reduced and deferred when the REMIC II Overcollateralization Amount
      is
      less than the REMIC II Targeted Overcollateralization Amount, by the lesser
      of
      (x) the amount of such difference and (y) the REMIC II Regular Interest LT-ZZ
      Maximum Interest Deferral Amount and such amount will be payable to the Holders
      of REMIC
      II
      Regular Interest LT-A1A, REMIC II Regular Interest LT-A1B, REMIC II Regular
      Interest LT-A2, REMIC II Regular Interest LT-A3A, REMIC II Regular Interest
      LT-A3B, REMIC II Regular Interest LT-A4A, REMIC II Regular Interest LT-A4B,
      REMIC II Regular Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC II
      Regular Interest LT-M3, REMIC II Regular Interest LT-M4 and REMIC II Regular
      Interest LT-M5
      in the
      same proportion as the Overcollateralization Deficiency is allocated to the
      Corresponding Certificates and the Uncertificated Principal Balance of REMIC
      II
      Regular Interest LT-ZZ shall be increased by such amount;

     

    (v)  second,
      to the Holders of REMIC II Regular Interests, in an amount equal to the
      remainder of the Interest Remittance Amount and the Principal Payment Amount
      for
      such Distribution Date after the distributions made pursuant to clause (i)
      above, allocated as follows:

     

    (A)  98.00%
      of
      such remainder (other than amounts payable under clause (C) below) to the
      Holders of REMIC II Regular Interest LT-AA and REMIC II Regular Interest LTII-P,
      until the Uncertificated Principal Balance of such REMIC II Regular Interest
      is
      reduced to zero, provided, however, that the Uncertificated Principal Balance
      of
      REMIC II Regular Interest LTII-P shall not be reduced until the Distribution
      Date in September 2011 or any Distribution Date thereafter, at which point
      such
      amount shall be distributed to REMIC II Regular Interest LTII-P, until $100
      has
      been distributed pursuant to this clause;

     

    (B)  2.00%
      of
      such remainder, first, to the Holders of REMIC II Regular Interest LT-A1A,
      REMIC
      II Regular Interest LT-A1B, REMIC II Regular Interest LT-A2, REMIC II Regular
      Interest LT-A3A, REMIC II Regular Interest LT-A3B, REMIC II Regular Interest
      LT-A4A, REMIC II Regular Interest LT-A4B, REMIC II Regular Interest LT-M1,
      REMIC
      II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular
      Interest LT-M4 and REMIC II Regular Interest LT-M5, 1% in the same proportion
      as
      principal payments are allocated to the Corresponding Certificates, until the
      Uncertificated Principal Balances of such REMIC II Regular Interests are reduced
      to zero and second, to the Holders of REMIC II Regular Interest LT-ZZ (other
      than amounts payable under the proviso below), until the Uncertificated
      Principal Balance of such REMIC II Regular Interest is reduced to zero;
      and

     

    (C)  any
      remaining amount to the Holders of the Class R Certificates (in respect of
      the
      Class R-2 Interest).

     

    provided,
      however, that (i) 98.00% and (ii) 2.00% of any principal payments that are
      attributable to an Overcollateralization Release Amount shall be allocated
      to
      Holders of (i) REMIC II Regular Interest LT-AA and REMIC II Regular Interest
      LTII-P, in that order and (ii) REMIC II Regular Interest LT-ZZ, respectively;
      provided that REMIC II Regular Interest LTII-P shall not be reduced until the
      Distribution Date in September 2011, at which point such amount shall be
      distributed to REMIC II Regular Interest LTII-P, until $100 has been distributed
      pursuant to this clause. 

     

    Any
      payment of principal and interest on the Class X Certificates shall be deemed
      to
      be paid to the Class X Interest. 

     

    Any
      payment of principal and Prepayment Charges on the Class P Certificates shall
      be
      deemed to be paid to the Class P Interest. 

     

    Section
      5.12  Prepayment
      Charges.

     

    (a)  On
      each
      Distribution Date, all amounts representing Prepayment Charges in respect of
      the
      Mortgage Loans received during the related Prepayment Period and deposited
      in
      the Distribution Account will be withdrawn from the Distribution Account and
      distributed by the Securities Administrator to the Class P Certificates and
      shall not be available for distribution to the holders of any other Class of
      Certificates. The payment of such Prepayment Charges shall not reduce the
      Certificate Principal Balance of the Class P Certificates.

     

    (b)  The
      Master Servicer shall not be obligated to recalculate or verify Prepayment
      Charges collected by the Servicers and remitted to the Distribution Account
      for
      distribution to the Certificateholders.

     

    Section
      5.13  Class
      P Certificate Account.

     

    The
      Securities Administrator shall establish and maintain with itself a separate,
      segregated trust account titled “Wells Fargo Bank, N.A., for the benefit of
      Nomura Asset Acceptance Corporation, Alternative Loan Trust 2006-AR3 Class
      P
      Certificate Account”. On the Closing Date, the Depositor will deposit, or cause
      to be deposited in the Class P Certificate Account $100.00. The amount on
      deposit in the Class P Certificate Account shall be held uninvested. On the
      September 2011 Distribution Date, the Securities Administrator shall withdraw
      the amount on deposit in the Class P Certificate Account and remit such amount
      to the Holders of the Class P Certificates, in reduction of the Certificate
      Principal Balance thereof.

     

    Section
      5.14  Reserved.

     

    Section
      5.15  Basis
      Risk Shortfall Reserve Fund.

     

    (a)  The
      Securities Administrator shall establish a Basis Risk Shortfall Reserve Fund
      on
      behalf of the holders of the Senior Certificates and the Mezzanine Certificates.
      The Basis Risk Shortfall Reserve Fund must be an Eligible Account. The Basis
      Risk Shortfall Reserve Fund shall be entitled “Basis Risk Shortfall Reserve
      Fund, HSBC Bank USA, National Association, as Trustee for the benefit of holders
      of Nomura Asset Acceptance Corporation, Mortgage Pass-Through Certificates,
      Series 2006-AR3, Class A-1A, Class A-1B, Class A-2, Class A-3A, Class A-3B,
      Class A-4A, Class A-4B, Class M-1, Class M-2, Class M-3, Class M-4 and Class
      M-5
      Certificates. On the Closing Date, the Depositor will deposit, or cause to
      be
      deposited, into the Basis Risk Shortfall Reserve Fund $1,000. On each
      Distribution Date as to which there is a Basis Risk Shortfall payable to any
      Class of Certificates, the Securities Administrator shall deposit the amounts
      pursuant to paragraphs (H) through (M) of Section 5.06(a)(iii) into the
      Basis Risk Shortfall Reserve Fund and the Securities Administrator has been
      directed by the Class X Certificateholder to distribute such amounts to the
      Holders of the Senior Certificates and Mezzanine Certificates in the amounts
      and
      priorities set forth in Section 5.06(a)(iii).

     

    (b)  The
      Basis
      Risk Shortfall Reserve Fund is an “outside reserve fund” within the meaning of
      Treasury Regulation §1.860G-2(h) and shall be an asset of the Trust Fund but not
      an asset of any REMIC. The Securities Administrator on behalf of the Trust
      shall
      be the nominal owner of the Basis Risk Shortfall Reserve Fund. The Class X
      Certificateholders shall be the beneficial owners of the Basis Risk Shortfall
      Reserve Fund, subject to the power of the Securities Administrator to transfer
      amounts under Section 5.06(a)(iii). Amounts in the Basis Risk Shortfall
      Reserve Fund shall be held either uninvested in a trust or deposit account
      of
      the Securities Administrator with no liability for interest or other
      compensation thereof or, at the written direction of the Majority Class X
      Certificateholder, be invested in Permitted Investments that mature no later
      than the Business Day prior to the next succeeding Distribution Date. All net
      income and gain from such investments shall be distributed to the Majority
      Class
      X Certificateholder, not as a distribution in respect of any interest in any
      REMIC, on such Distribution Date. All amounts earned on amounts on deposit
      in
      the Basis Risk Shortfall Reserve Fund shall be taxable to the Majority Class
      X
      Certificateholder. Any losses on such investments shall be deposited in the
      Basis Risk Shortfall Reserve Fund by the Majority Class X Certificateholder
      out
      of its own funds immediately as realized. In the event that the Majority Class
      X
      Certificateholder shall fail to provide investment instructions to the
      Securities Administrator, the amounts on deposit in the Basis Risk Shortfall
      Reserve Fund shall be held uninvested.

     

    (c)  For
      federal tax return and information reporting, the value of the right of the
      holders of the Senior Certificates and Mezzanine Certificates
      to
      receive payments from the Basis Risk Shortfall Reserve Fund in respect of any
      Basis Risk Shortfall shall
      be
      zero dollars ($0.00).

     

    Section
      5.16  Supplemental
      Interest Trust.

     

    (a)  On
      the
      Closing Date, the Securities Administrator shall establish and maintain in
      the
      name of the Trustee a separate account for the benefit of the holders of the
      Senior Certificates and Mezzanine Certificates (the “Supplemental Interest
      Trust”). The Supplemental Interest Trust shall be an Eligible Account, and funds
      on deposit therein shall be held separate and apart from, and shall not be
      commingled with, any other moneys, including, without limitation, other moneys
      of the Trustee or of the Securities Administrator held pursuant to this
      Agreement. 

     

    (b)  On
      each
      Distribution Date, the Securities Administrator shall deposit into the
      Supplemental Interest Trust amounts distributable to the Swap Provider by the
      Supplemental Interest Trust pursuant to Sections 5.06(a)(i)(A) and
      5.06(a)(iii)(O) of this Agreement. On each Distribution Date, the Securities
      Administrator shall distribute any such amounts to the Swap Provider pursuant
      to
      the Swap Agreement, first to pay any Net Swap Payment owed to the Swap Provider
      for such Distribution Date, and second to pay any Swap Termination Payment
      owed
      to the Swap Provider.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall deposit into the
      Supplemental Interest Trust amounts received by it from the Swap Provider.
      On
      each Distribution Date, the Securities Administrator shall distribute from
      the
      Supplemental Interest Trust an amount equal to the amount of any Net Swap
      Payment received from the Swap Provider under the Swap Agreement, and make
      the
      distributions required under Section 5.06(b) of this Agreement.

     

    (d)  The
      Supplemental Interest Trust constitutes an “outside reserve fund” within the
      meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC.
      The Holders of the Class X Certificates shall be the beneficial owner of the
      Supplemental Interest Trust, subject to the power of the Securities
      Administrator to transfer amounts under this Agreement. The Securities
      Administrator shall keep records that accurately reflect the funds on deposit
      in
      the Supplemental Interest Trust. The Securities Administrator shall, at the
      written direction of the holder of the Majority Class X Certificateholder,
      invest amounts on deposit in the Supplemental Interest Trust in Permitted
      Investments. In the absence of written direction to the Securities Administrator
      from the Majority Class X Certificateholder, all funds in the Supplemental
      Interest Trust shall remain uninvested. On each Distribution Date, the
      Securities Administrator shall distribute, not in respect of any REMIC, any
      interest earned on the Supplemental Interest Trust to the Holders of the Class
      X
      Certificates.

     

    (e)  For
      federal income tax purposes, amounts paid to the Supplemental Interest Trust
      on
      each Distribution Date pursuant to Sections 5.06(a)(i)(A) and 5.06(a)(iii)(O)
      shall first be deemed paid to the Supplemental Interest Trust in respect of
      REMIC VI Regular Interest Swap-IO to the extent of the amount distributable
      on
      such REMIC VI Regular Interest Swap-IO on such Distribution Date, and any
      remaining amount shall be deemed paid to the Supplemental Interest Trust in
      respect of a Class IO Distribution Amount. For federal income tax purposes,
      the
      Supplemental Interest Trust will be a disregarded entity.

     

    The
      Securities Administrator shall treat the Holders of the Certificates (other
      than
      the Class P, Class X and Residual Certificates) as having entered into a
      notional principal contract with respect to the Holders of the Class X
      Certificates. Pursuant to each such notional principal contract, all Holders
      of
      the Certificates (other than the Class P, Class X and Residual Certificates)
      shall be treated as having agreed to pay, on each Distribution Date, to the
      Holder of the Class X Certificates an aggregate amount equal to the excess,
      if
      any, of (i) the amount payable on such Distribution Date on the REMIC III
      Regular Interest ownership of which is represented by such Class of Certificates
      over (ii) the amount payable on such Class of Certificates on such Distribution
      Date (such excess, a “Class IO Distribution Amount”). A Class IO Distribution
      Amount payable from interest collections shall be allocated pro rata among
      such
      Certificates based on the amount of interest otherwise payable to such
      Certificates, and a Class IO Distribution Amount payable from principal
      collections shall be allocated to the most subordinate Class of such
      Certificates with an outstanding principal balance to the extent of such
      balance. In addition, pursuant to such notional principal contract, the Holder
      of the Class X Certificates shall be treated as having agreed to pay Basis
      Risk
      Shortfalls to the Holders of the Certificates (other than the Class X, Class
      P
      and Residual Certificates) in accordance with the terms of this Agreement.
      Any
      payments to such Certificates from amounts deemed received in respect of this
      notional principal contract shall not be payments with respect to a Regular
      Interest in a REMIC within the meaning of Code Section 860G(a)(1). However,
      any
      payment from the Certificates (other than the Class X, Class P and Class R
      Certificates) of a Class IO Distribution Amount shall be treated for tax
      purposes as having been received by the Holders of such Certificates in respect
      of the REMIC III Regular Interest ownership of which is represented by such
      Certificates, and as having been paid by such Holders to the Supplemental
      Interest Trust pursuant to the notional principal contract. Thus, each
      Certificate (other than the Class P Certificates and Residual Certificates)
      shall be treated as representing not only ownership of a Regular Interest in
      REMIC III, but also ownership of an interest in, and obligations with respect
      to, a notional principal contract.

     

    (f)  The
      Sponsor shall provide to the Securities Administrator the value of the right
      of
      the holders of the Senior Certificates and Mezzanine Certificates to receive
      payments from the Supplemental Interest Trust for federal tax return and
      information reporting not later than the December 31, 2006.

     

    (g)  In
      the
      event that the Swap Agreement is terminated prior to the Distribution Date
      in
      September 2011, the Sponsor shall use reasonable efforts to appoint a successor
      swap provider using any Swap Termination Payments paid by the Swap Provider.
      If
      the Sponsor is unable to locate a qualified successor swap provider, any such
      Swap Termination Payments will be remitted to the Securities Administrator
      for
      payment to the holders of the Senior Certificates and Mezzanine Certificates
      of
      amounts described in Section  5.16(c).

     

    Section
      5.17  Tax
      Treatment of Swap Payments and Swap Termination Payments.

     

    For
      federal income tax purposes, each holder of a Senior Certificate or Mezzanine
      Certificate is deemed to own an undivided beneficial ownership interest in
      a
      REMIC regular interest and the right to receive payments from either the Basis
      Risk Shortfall Reserve Fund or the Supplemental Interest Trust in respect of
      any
      Basis Risk Shortfall Carry-Forward Amounts or the obligation to make payments
      to
      the Supplemental Interest Trust. For federal income tax purposes, the Securities
      Administrator will account for payments to each Senior Certificate and Mezzanine
      Certificate as follows: each Senior Certificate and Mezzanine Certificate will
      be treated as receiving their entire payment from REMIC III (regardless of
      any
      Swap Termination Payment or obligation under the Swap Agreement) and
      subsequently paying their portion of any Swap Termination Payment in respect
      of
      each such Class’ obligation under the Swap Agreement. In the event that any such
      Class is resecuritized in a REMIC, the obligation under the Swap Agreement
      to
      pay any such Swap Termination Payment (or any shortfall in Net Swap Payment),
      will be made by one or more of the REMIC Regular Interests issued by the
      resecuritization REMIC subsequent to such REMIC Regular Interest receiving
      its
      full payment from any such Senior Certificate and Mezzanine
      Certificate.

     

    The
      REMIC
      Regular Interest corresponding to a Senior Certificate and Mezzanine Certificate
      will be entitled to receive interest and principal payments at the times and
      in
      the amounts equal to those made on the certificate to which it corresponds,
      except that (i) the maximum interest rate of that REMIC regular interest will
      equal the Net Funds Cap computed for this purpose by limiting the Notional
      Amount of the Swap Agreement to the aggregate Stated Principal Balance of the
      Mortgage Loans and (ii) any Swap Termination Payment will be treated as being
      payable solely from amounts otherwise payable to the Class X Certificates.
      As a
      result of the foregoing, the amount of distributions and taxable income on
      the
      REMIC Regular Interest corresponding to a Senior Certificate and Mezzanine
      Certificate may exceed the actual amount of distributions on the Senior
      Certificate and Mezzanine Certificate.

     

    Section
      5.18  Reports
      Filed with Securities and Exchange Commission.

     

    (a)  (i)For
      so
      long as the Trust Fund is subject to Exchange Act reporting requirements, within
      fifteen (15) days after each Distribution Date (subject to permitted extensions
      under the Exchange Act), the Securities Administrator shall prepare and file
      on
      behalf of the Trust Fund any Form 10-D required by the Exchange Act, in form
      and
      substance as required by the Exchange Act. The Securities Administrator shall
      file each Form 10-D with a copy of the related Monthly Statement attached
      thereto. The Securities Administrator shall also include with each Form 10-D
      any
      disclosure required by the Exchange Act in addition to the Monthly Statement
      that is required to be included on Form 10-D (“Additional Form 10-D Disclosure”)
      subject to the receipt of such information by the Securities Administrator
      from
      the entity indicated on Exhibit N as the party responsible for providing that
      information. The Securities Administrator will have no duty or liability for
      any
      failure hereunder to determine or prepare any Additional Form 10-D Disclosure,
      except as set forth in the next paragraph. 

     

    (ii)  As
      set
      forth on Exhibit N hereto, within 5 calendar days after the related Distribution
      Date, (i) the parties to this transaction shall be required to provide to the
      Securities Administrator and to the Depositor, to the extent known by a
      responsible officer thereof, in EDGAR-compatible form, or in such other form
      as
      otherwise agreed upon by the Securities Administrator and such party, the form
      and substance of any Additional Form 10-D Disclosure, if applicable, together
      with an Additional Disclosure Notification in the form of Exhibit H hereto
      (an
“Additional Disclosure Notification”) and (ii) the Depositor will approve, as to
      form and substance, or disapprove, as the case may be, the inclusion of the
      Additional Form 10-D Disclosure on Form 10-D. The Depositor will be responsible
      for any reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-D Disclosure
      on Form 10-D pursuant to this paragraph. 

     

    (iii)  After
      preparing the Form 10-D, the Securities Administrator shall, upon request,
      forward electronically a copy of the Form 10-D to the Depositor (provided that
      such Form 10-D includes any Additional Form 10-D Disclosure). Within two
      Business Days after receipt of such copy, but no later than the 12th calendar
      day after the Distribution Date, the Depositor shall notify the Securities
      Administrator in writing (which may be furnished electronically) of any changes
      to or approval of such Form 10-D. In the absence of receipt of any written
      changes or approval, or if the Depositor does not request a copy of a Form
      10-D,
      the Securities Administrator shall be entitled to assume that such Form 10-D
      is
      in final form and the Securities Administrator may proceed with the execution
      and filing of the Form 10-D. A duly authorized representative of the Master
      Servicer shall sign each Form 10-D. If a Form 10-D cannot be filed on time
      or if
      a previously filed Form 10-D needs to be amended, the Securities Administrator
      will follow the procedures set forth in Section 5.17(c)(ii). Promptly (but
      no
      later than 1 Business Day) after filing with the Commission, the Securities
      Administrator will make available on its internet website a final executed
      copy
      of each Form 10-D filed by the Securities Administrator. Each party to this
      Agreement acknowledges that the performance by the Master Servicer and the
      Securities Administrator of its duties under this Section 5.17(a) related to
      the
      timely preparation, execution and filing of Form 10-D is contingent upon such
      parties strictly observing all applicable deadlines in the performance of their
      duties as set forth in this Agreement. Neither the Master Servicer nor the
      Securities Administrator shall have any liability for any loss, expense, damage,
      claim arising out of or with respect to any failure to properly prepare, execute
      and/or timely file such Form 10-D, where such failure results from the
      Securities Administrator’s inability or failure to obtain or receive, on a
      timely basis, any information from any other party hereto needed to prepare,
      arrange for execution or file such Form 10-D, not resulting from its own
      negligence, bad faith or willful misconduct.

     

    (b)  (i)For
      so
      long as the Trust Fund is subject to Exchange Act reporting requirements, within
      four (4) Business Days after the occurrence of an event set forth on Exhibit
      N
      hereto or such other event requiring disclosure on Form 8-K (each such event,
      a
“Reportable
      Event”),
      or if
      requested by the Depositor, and subject to receipt of such information by the
      Securities Administrator from the entity indicated on Exhibit N as the
      responsible party for providing that information, the Securities Administrator
      shall prepare and file on behalf of the Trust Fund any Form 8-K, as required
      by
      the Exchange Act, provided
      that the
      Depositor shall file the initial Form 8-K in connection with the issuance of
      the
      Certificates. Any disclosure or information related to a Reportable Event or
      that is otherwise required to be included on Form 8-K other than the initial
      Form 8-K (“Form
      8-K Disclosure Information”)
      shall
      be reported by the parties set forth on Exhibit
      N
      to the
      Depositor and the Securities Administrator and directed and approved by the
      Depositor pursuant to the following paragraph and the Securities Administrator
      will have no duty or liability for any failure hereunder to determine or prepare
      any Form 8-K Disclosure Information or any Form 8-K, except as set forth in
      the
      next paragraph.

     

    (ii)  As
      set
      forth on Exhibit N hereto, for so long as the Trust is subject to the Exchange
      Act reporting requirements, no later than the close of business (New York City
      time) on the 2nd Business Day after the occurrence of a Reportable Event (i)
      the
      parties to this transaction shall be required to provide to the Securities
      Administrator and to the Depositor, to the extent known by a responsible officer
      thereof, in EDGAR-compatible form, or in such other form as otherwise agreed
      upon by the Securities Administrator and such party, the form and substance
      of
      any Form 8-K Disclosure Information, if applicable, together with an Additional
      Disclosure Notification and (ii) the Depositor will approve, as to form and
      substance, or disapprove, as the case may be, the inclusion of the Form 8-K
      Disclosure Information. The Depositor will be responsible for any reasonable
      fees and expenses assessed or incurred by the Securities Administrator in
      connection with including any Form 8-K Disclosure Information on Form 8-K
      pursuant to this paragraph. 

     

    (iii)  After
      preparing the Form 8-K, the Securities Administrator shall, upon request,
      forward electronically a copy of the Form 8-K to the Depositor. Promptly, but
      no
      later than the close of business on the third Business Day after the Reportable
      Event, the Depositor shall notify the Securities Administrator in writing (which
      may be furnished electronically) of any changes to or approval of such Form
      8-K.
      In the absence of receipt of any written changes or approval, or if the
      Depositor does not request a copy of a Form 8-K, the Securities Administrator
      shall be entitled to assume that such Form 8-K is in final form and the
      Securities Administrator may proceed with the execution and filing of the Form
      8-K. A duly authorized representative of the Master Servicer shall sign each
      Form 8-K. If a Form 8-K cannot be filed on time or if a previously filed Form
      8-K needs to be amended, the Securities Administrator will follow the procedures
      set forth in Section 5.17(c)(ii). Promptly (but no later than 1 Business Day)
      after filing with the Commission, the Securities Administrator will, make
      available on its internet website a final executed copy of each Form 8-K that
      is
      filed by the Securities Administrator. The parties to this Agreement acknowledge
      that the performance by the Master Servicer and the Securities Administrator
      of
      its duties under this Section 5.17(b) related to the timely preparation,
      execution and filing of Form 8-K is contingent upon such parties strictly
      observing all applicable deadlines in the performance of their duties under
      this
      Agreement. Neither the Master Servicer nor the Securities Administrator shall
      have any liability for any loss, expense, damage, claim arising out of or with
      respect to any failure to properly prepare, execute and/or timely file such
      Form
      8-K, where such failure results from the Securities Administrator’s inability or
      failure to obtain or receive, on a timely basis, any information from any other
      party hereto needed to prepare, arrange for execution or file such Form 8-K,
      not
      resulting from its own negligence, bad faith or willful misconduct.

     

    (c)  (i)On
      or
      prior to January 30 of the first year in which the Securities Administrator
      is
      able to do so under applicable law, the Securities Administrator shall prepare
      and file a Form 15 Suspension Notification relating to the automatic suspension
      of reporting in respect of the Trust Fund under the Exchange Act. 

     

    (ii)  In
      the
      event that the Securities Administrator is unable to timely file with the
      Commission all or any required portion of any Form 8-K, 10-D or 10-K required
      to
      be filed by this Agreement because required disclosure information was either
      not delivered to it or delivered to it after the delivery deadlines set forth
      in
      this Agreement or for any other reason, the Securities Administrator will
      promptly notify electronically the Depositor. In the case of Form 10-D and
      10-K,
      the parties to this Agreement will cooperate to prepare and file a Form 12b-25
      and a 10-D/A and 10-K/A as applicable, pursuant to Rule 12b-25 of the Exchange
      Act. In the case of Form 8-K, the Securities Administrator will, upon receipt
      of
      all required Form 8-K Disclosure Information and upon the approval and direction
      of the Depositor, include such disclosure information on the next Form 10-D.
      In
      the event that any previously filed Form 8-K, 10-D or 10-K needs to be amended
      in connection with any Additional Form 10-D Disclosure (other than for the
      purpose of restating any monthly report), Additional Form 10-K Disclosure or
      Form 8-K Disclosure Information, the Securities Administrator will
      electronically notify the Depositor and such other parties to the transaction
      as
      are affected by such amendment, and such parties will cooperate to prepare
      any
      necessary 8-K/A, 10-D/A or 10-K/A. Any Form 15, Form 12b-25 or any amendment
      to
      Form 8-K, 10-D or 10-K shall be signed by a duly authorized representative,
      or
      senior officer in charge of master servicing, as applicable, of the Master
      Servicer. The parties to this Agreement acknowledge that the performance by
      the
      Master Servicer and the Securities Administrator of its duties under this
      Section 5.17(c) related to the timely preparation, execution and filing of
      Form
      15, a Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K is contingent
      upon
      each such party performing its duties under this Section. Neither the Master
      Servicer nor the Securities Administrator shall have any liability for any
      loss,
      expense, damage, claim arising out of or with respect to any failure to properly
      prepare, execute and/or timely file any such Form 15, Form 12b-25 or any
      amendments to Forms 8-K, 10-D or 10-K, where such failure results from the
      Securities Administrator’s inability or failure to obtain or receive, on a
      timely basis, any information from any other party hereto needed to prepare,
      arrange for execution or file such Form 15, Form 12b-25 or any amendments to
      Forms 8-K, 10-D or 10-K, not resulting from its own negligence, bad faith or
      willful misconduct.

     

    (d)  (i)For
      so
      long as the trust is subject to Exchange Act reporting requirements, within
      90
      days after the end of each calendar year or such earlier date as may be required
      by the Exchange Act (the “10-K
      Filing Deadline”),
      commencing in March 2007, the Securities Administrator shall prepare and file
      on
      behalf of the Trust Fund a Form 10-K, in form and substance as required by
      the
      Exchange Act. Each such Form 10-K shall include the following items, in each
      case to the extent they have been delivered to the Securities Administrator
      within the applicable time frames set forth in this Agreement, (i) an annual
      compliance statement for each Servicing Function Participant (other than the
      Custodian), as described under Section 3.13, (ii)(A) the annual reports on
      assessment of compliance with servicing criteria for each Servicing Function
      Participant, as described under Section 3.14 and the Custodial Agreement, and
      (B) if any Servicing Function Participant’s report on assessment of compliance
      with servicing criteria described under Section 3.14 identifies any material
      instance of noncompliance, disclosure identifying such instance of
      noncompliance, or if any Servicing Function Participant’s report on assessment
      of compliance with servicing criteria described under Section 3.14 is not
      included as an exhibit to such Form 10-K, disclosure that such report is not
      included and an explanation why such report is not included, (iii)(A) the
      registered public accounting firm attestation report for each Servicing Function
      Participant, as described under Section 3.14 and the Custodial Agreement, and
      (B) if any registered public accounting firm attestation report described under
      Section 3.14 identifies any material instance of noncompliance, disclosure
      identifying such instance of noncompliance, or if any such registered public
      accounting firm attestation report is not included as an exhibit to such Form
      10-K, disclosure that such report is not included and an explanation why such
      report is not included, and (iv) a Sarbanes-Oxley Certification as described
      in
      Section 3.18. The Securities Administrator shall also include with each Form
      10-K any disclosure or information in addition to (i) through (iv) above that
      is
      required to be included on Form 10-K as set forth on Exhibit N under Form 10-K
      (“Additional
      Form 10-K Disclosure”)
      subject to receipt of such information by the Securities Administrator from
      the
      entity indicated on Exhibit N as the responsible party for providing that
      information. The Securities Administrator will have no duty or liability for
      any
      failure hereunder to determine or prepare any Additional Form 10-K Disclosure,
      except as set forth in the next paragraph. 

     

    (ii)  As
      set
      forth on Exhibit N hereto, no later than March 1 (with a ten-calendar day cure
      period) of each year that the Trust is subject to the Exchange Act reporting
      requirements, commencing in 2007, (i) the parties to this transaction shall
      be
      required to provide to the Securities Administrator and to the Depositor, to
      the
      extent known by a responsible officer thereof, in EDGAR-compatible form, or
      in
      such other form as otherwise agreed upon by the Securities Administrator and
      such party, the form and substance of any Additional Form 10-K Disclosure,
      if
      applicable, together with an Additional Disclosure Notification and (ii) the
      Depositor will approve, as to form and substance, or disapprove, as the case
      may
      be, the inclusion of the Additional Form 10-K Disclosure on Form 10-K. The
      Depositor will be responsible for any reasonable fees and expenses assessed
      or
      incurred by the Securities Administrator in connection with including any
      Additional Form 10-K Disclosure on Form 10-K pursuant to this
      paragraph.

     

    (iii)  After
      preparing the Form 10-K, the Securities Administrator shall, upon request,
      forward electronically a copy of the Form 10-K to the Depositor. Within three
      Business Days after receipt of such copy, but no later than March 25th, the
      Depositor shall notify the Securities Administrator in writing (which may be
      furnished electronically) of any changes to or approval of such Form 10-K.
      In
      the absence of receipt of any written changes or approval, or if the Depositor
      does not request a copy of a Form 10-K, the Securities Administrator shall
      be
      entitled to assume that such Form 10-K is in final form and the Securities
      Administrator may proceed with the execution and filing of the Form 10-K. A
      senior officer of the Master Servicer in charge of the master servicing function
      shall sign the Form 10-K. If a Form 10-K cannot be filed on time or if a
      previously filed Form 10-K needs to be amended, the Securities Administrator
      will follow the procedures set forth in Section 5.17(c)(ii). Promptly (but
      no
      later than one (1) Business Day) after filing with the Commission, the
      Securities Administrator will make available on its internet website a final
      executed copy of each Form 10-K to be filed by the Securities Administrator.
      The
      parties to this Agreement acknowledge that the performance by the Master
      Servicer and the Securities Administrator of its duties under this Section
      5.17(d) related to the timely preparation, execution and filing of Form 10-K
      is
      contingent upon such parties (and any Servicing Function Participant) strictly
      observing all applicable deadlines in the performance of their duties under
      this
      Section 5.17(d), Section 3.13, Section 3.14 and Section 3.18. Neither the Master
      Servicer nor the Securities Administrator shall have any liability for any
      loss,
      expense, damage or claim arising out of or with respect to any failure to
      properly prepare and/or timely file such Form 10-K, where such failure results
      from the Securities Administrator’s inability or failure to obtain or receive,
      on a timely basis, any information from any other party hereto needed to
      prepare, arrange for execution or file such Form 10-K, not resulting from its
      own negligence, bad faith or willful misconduct.

     

    (e)  Each
      of
      Form 10-D and Form 10-K requires the registrant to indicate (by checking "yes"
      or "no") that it "(1) has filed all reports required to be filed by Section
      13
      or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
      period that the registrant was required to file such reports), and (2) has
      been
      subject to such filing requirements for the past 90 days." The Depositor hereby
      represents to the Securities Administrator as of the date hereof that the
      Depositor has (1) filed all such required reports that (a) the Depositor has
      undertaken to file on its own behalf or (b) relate to other securitization
      transactions of the Depositor for which Wells Fargo Bank, N.A., in its capacity
      as Securities Administrator or similar capacity, does not have the exclusive
      obligation to prepare and file during the preceding 12 months; provided,
      however, that the Depositor shall not be obligated to make such representation
      with respect to any filings made by Wells Fargo on behalf of the Depositor,
      and
      (2) that it has been subject to such filing requirement for the past 90 days.
      The Depositor shall notify the Securities Administrator in writing, no later
      than the fifth calendar day after the related Distribution Date with respect
      to
      the filing of a report on Form 10-D and no later than March 15th with respect
      to
      the filing of a report on Form 10-K, if the answer to the questions should
      be
      "no". The Securities Administrator shall be entitled to rely on such
      representations in preparing, executing and/or filing any such
      report.

     

    (f)  The
      related Servicer, the Master Servicer, the Depositor, the Custodian, the Sponsor
      and Securities Administrator shall indemnify and hold harmless the Depositor,
      the Trustee and their respective officers, directors and Affiliates from and
      against any losses, damages, penalties, fines, forfeitures, reasonable and
      necessary legal fees and related costs, judgments and other costs and expenses
      arising out of or based upon a breach of such party’s obligations under this
      Section 5.17 or such party’s negligence, bad faith or willful misconduct in
      connection therewith. 

     

    Notwithstanding
      the provisions of Section 11.01, this Section 5.17 may be amended without the
      consent of the Certificateholders.

     

    ARTICLE
      VI

     

    THE
      CERTIFICATES

     

    Section
      6.01  The
      Certificates.

     

    (a)  The
      Certificates shall be substantially in the forms attached hereto as Exhibits
      A-1
      through A-5. The Certificates shall be issuable in registered form, in the
      minimum dollar denominations, integral dollar multiples in excess thereof
      (except that one Certificate of each Class may be issued in a different amount
      which must be in excess of the applicable minimum dollar denomination) and
      aggregate dollar denominations as set forth in the following table:

     

    

    
      	
              Class

            	 	
              Minimum
                Denomination

            	 	
              Integral
                Multiple in Excess of Minimum

            	 	
              Original
                Certificate Principal Balance

            	 	
              Pass-Through
                Rate

            	 
	
              A-1A

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              80,500,000

            	 	 	
              Class
                A-1A Pass-Through Rate

            	 
	
              A-1B

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              8,945,000

            	 	 	
              Class
                A-1B Pass-Through Rate

            	 
	
              A-2

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              209,432,000

            	 	 	
              Class
                A-2 Pass-Through Rate

            	 
	
              A-3A

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              51,039,000

            	 	 	
              Class
                A-3A Pass-Through Rate

            	 
	
              A-3B

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              5,671,000

            	 	 	
              Class
                A-3B Pass-Through Rate

            	 
	
              A-4A

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              81,575,000

            	 	 	
              Class
                A-4A Pass-Through Rate

            	 
	
              A-4B

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              9,064,000

            	 	 	
              Class
                A-4B Pass-Through Rate

            	 
	
              M-1

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              11,429,000

            	 	 	
              Class
                M-1 Pass-Through Rate

            	 
	
              M-2

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              5,476,000

            	 	 	
              Class
                M-2 Pass-Through Rate

            	 
	
              M-3

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              4,286,000

            	 	 	
              Class
                M-3 Pass-Through Rate

            	 
	
              M-4

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              2,381,000

            	 	 	
              Class
                M-4 Pass-Through Rate

            	 
	
              M-5

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              2,620,000

            	 	 	
              Class
                M-5 Pass-Through Rate

            	 
	
              P

            	 	
              $

            	
              1

            	 	
              $

            	
              1

            	 	
              $

            	
              100.00

            	 	 	
              N/A

            	 
	
              X

            	 	
              $

            	
              1

            	 	
              $

            	
              1

            	 	
              $

            	
              3,811,351.38

            	 	 	
              Class
                X Pass-Through Rate

            	 
	
              R

            	 	 	
              N/A

            	 	 	
              N/A

            	 	 	
              N/A

            	 	 	
              N/A

            	 

    

    

     

    Upon
      original issue, the Certificates shall be executed and authenticated by the
      Securities Administrator and delivered by the Trustee to and upon the written
      order of the Depositor. The Certificates shall be executed by manual or
      facsimile signature on behalf of the Trust Fund by the Securities Administrator
      by an authorized signatory. Certificates bearing the manual or facsimile
      signatures of individuals who were at any time the proper officers of the
      Securities Administrator shall bind the Trust, notwithstanding that such
      individuals or any of them have ceased to hold such offices prior to the
      authentication and delivery of such Certificates or did not hold such offices
      at
      the date of such Certificates. No Certificate shall be entitled to any benefit
      under this Agreement or be valid for any purpose, unless there appears on such
      Certificate a certificate of authentication substantially in the form provided
      herein executed by the Securities Administrator by manual signature, and such
      certificate of authentication shall be conclusive evidence, and the only
      evidence, that such Certificate has been duly authenticated and delivered
      hereunder. All Certificates shall be dated the date of their
      authentication.

     

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

     

    (b)  The
      Class
      X Certificates and Class P Certificates offered and sold to Qualified
      Institutional Buyers in reliance on Rule 144A under the Securities Act (“Rule
      144A”) will be issued in the form of Definitive Certificates.

     

    Section
      6.02  Certificate
      Register; Registration of Transfer and Exchange of
      Certificates.

     

    (a)  The
      Securities Administrator shall maintain, or cause to be maintained in accordance
      with the provisions of Section 6.09, a Certificate Register for the
      Certificates in which, subject to the provisions of subsections (b) and (c)
      below and to such reasonable regulations as it may prescribe, the Securities
      Administrator shall provide for the registration of Certificates and of
      Transfers and exchanges of Certificates as herein provided. Upon surrender
      for
      registration of Transfer of any Certificate, the Securities Administrator shall
      authenticate and deliver, in the name of the designated transferee or
      transferees, one or more new Certificates of the same Class and of like
      aggregate Percentage Interest.

     

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

     

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

     

    All
      Certificates surrendered for registration of Transfer or exchange shall be
      canceled and subsequently destroyed by the Securities Administrator in
      accordance with the Securities Administrator’s customary
      procedures.

     

    (b)  No
      Transfer of a Private Certificate shall be made unless such Transfer is made
      pursuant to an effective registration statement under the Securities Act and
      any
      applicable state securities laws or is exempt from the registration requirements
      under the Securities Act and such state securities laws. In the event that
      a
      Transfer is to be made in reliance upon an exemption from the Securities Act
      and
      such laws, in order to assure compliance with the Securities Act and such laws,
      the Certificateholder desiring to effect such Transfer and such
      Certificateholder’s prospective transferee shall each certify to the Securities
      Administrator in writing the facts surrounding the Transfer in substantially
      the
      forms set forth in Exhibit E (the “Transferor Certificate”) and (x) deliver a
      letter in substantially the form of either Exhibit F (the “Investment Letter”)
      or Exhibit G (the “Rule 144A Letter”) or (y) there shall be delivered to the
      Securities Administrator an Opinion of Counsel, at the expense of the
      transferor, that such Transfer may be made pursuant to an exemption from the
      Securities Act, which Opinion of Counsel shall not be an expense of the
      Depositor, the Sponsor, the Securities Administrator, the Trustee or the Trust
      Fund. The Depositor shall provide to any Holder of a Private Certificate and
      any
      prospective transferee designated by any such Holder, information regarding
      the
      related Certificates and the Mortgage Loans and such other information as shall
      be necessary to satisfy the condition to eligibility set forth in Rule
      144A(d)(4) for Transfer of any such Certificate without registration thereof
      under the Securities Act pursuant to the registration exemption provided by
      Rule
      144A. The Securities Administrator shall cooperate with the Depositor in
      providing the Rule 144A information referenced in the preceding sentence,
      including providing to the Depositor such information regarding the
      Certificates, the Mortgage Loans and other matters regarding the Trust Fund
      as
      the Depositor shall reasonably request to meet its obligation under the
      preceding sentence. Each Holder of a Private Certificate desiring to effect
      such
      Transfer shall, and does hereby agree to, indemnify the Securities
      Administrator, the Depositor and the Sponsor against any liability that may
      result if the Transfer is not so exempt or is not made in accordance with such
      federal and state laws.

     

    No
      Transfer of an ERISA Restricted Certificate shall be made unless the Securities
      Administrator shall have received either (i) a representation from the
      transferee of such Certificate acceptable to and in form and substance
      satisfactory to the Securities Administrator to the effect that such transferee
      is not an employee benefit plan subject to Section 406 of ERISA and/or a
      plan subject to Section 4975 of the Code, or a Person acting on behalf of
      any such plan or using the assets of any such plan, 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 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,
      an Opinion of Counsel satisfactory to the Securities Administrator for the
      benefit of the Securities Administrator, the Depositor and the Servicer and
      on
      which they may rely to the effect that the purchase and holding of such ERISA
      Restricted Certificate is permissible under applicable law, will not result
      in
      any prohibited transactions under ERISA or Section 4975 of the Code and
      will not subject the Securities Administrator, the Depositor or any Servicer
      to
      any obligation in addition to those expressly undertaken in this Agreement,
      which Opinion of Counsel shall not be an expense of the Securities
      Administrator, the Depositor or any Servicer. 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 Section 406 of ERISA
      and/or a plan subject to Section 4975 of the Code other than in compliance
      with the foregoing shall be void and of no effect; provided that the restriction
      set forth in this sentence shall not be applicable if there has been delivered
      to the Securities Administrator an Opinion of Counsel meeting the requirements
      of clause (ii) of the first sentence of this paragraph. The Securities
      Administrator shall not be under any liability to any Person for any
      registration of transfer of any ERISA Restricted Certificate that is in fact
      not
      permitted by this Section 6.02(b) or for making any payments due on such
      Certificate to the Holder thereof or taking any other action with respect to
      such Holder under the provisions of this Agreement. The Securities Administrator
      shall be entitled, but not obligated, to recover from any Holder of any ERISA
      Restricted Certificate that was in fact an employee benefit plan subject to
      Section 406 of ERISA or a plan subject to Section 4975 of the Code or
      a Person acting on behalf of any such plan at the time it became a Holder or,
      at
      such subsequent time as it became such a plan or Person acting on behalf of
      such
      a plan, all payments made on such ERISA Restricted Certificate at and after
      either such time. Any such payments so recovered by the Securities Administrator
      shall be paid and delivered by the Securities Administrator to the last
      preceding Holder of such Certificate that is not such a plan or Person acting
      on
      behalf of a plan.

     

    Each
      beneficial owner of a Mezzanine Certificate acquired after termination of the
      Supplemental Interest Trust or any interest therein shall be deemed to have
      represented, by virtue of its acquisition or holding of that certificate or
      interest therein, that either (i) it is not a Plan or investing with “Plan
      Assets”, (ii) it has acquired and is holding such certificate in reliance on the
      Exemption, and that it understands that there are certain conditions to the
      availability of the Exemption, including that the certificate must be rated,
      at
      the time of purchase, not lower than “BBB-“ (or its equivalent) by S&P or
      Moody’s, and the certificate is so rated or (iii) (1) it is an insurance
      company, (2) the source of funds used to acquire or hold the certificate or
      interest therein is an “insurance company general account,” as such term is
      defined in Prohibited Transaction Class Exemption (“PTCE”) 95-60 and (3) the
      conditions in Sections I and III of PTCE 95-60 have been satisfied.

     

    For
      so
      long as the Supplemental Interest Trust is in existence, each beneficial owner
      of Senior Certificate or Subordinate Certificate or any interest therein, shall
      be deemed to have represented, by virtue of its acquisition or holding of such
      Certificate, or interest therein, that either (i) it is not a Plan or (ii)
      (A)
      it is an accredited investor within the meaning of the Exemption and (B) the
      acquisition and holding of such Certificate and the separate right to receive
      payments from the Supplemental Interest Trust are eligible for the exemptive
      relief available under one of PTCE 95-60, 91-38, 96-23, 90-1 or
      84-14.

     

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

     

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

     

    (B)  In
      connection with any proposed Transfer of any Ownership Interest in a Residual
      Certificate, the Securities Administrator shall require delivery to it, and
      shall not register the Transfer of any Residual Certificate until its receipt
      of, an affidavit and agreement (a “Transfer Affidavit and Agreement,” in the
      form attached hereto as Exhibit D) from the proposed Transferee, in form and
      substance satisfactory to the Securities Administrator, representing and
      warranting, among other things, that such Transferee is a Permitted Transferee,
      that it is not acquiring its Ownership Interest in the Residual Certificate
      that
      is the subject of the proposed Transfer as a nominee, trustee or agent for
      any
      Person that is not a Permitted Transferee, that for so long as it retains its
      Ownership Interest in a Residual Certificate, it will endeavor to remain a
      Permitted Transferee, and that it has reviewed the provisions of this
      Section 6.02(d) and agrees to be bound by them.

     

    (C)  Notwithstanding
      the delivery of a Transfer Affidavit and Agreement by a proposed Transferee
      under clause (B) above, if an authorized officer of the Securities Administrator
      who is assigned to this transaction has actual knowledge that the proposed
      Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest
      in a Residual Certificate to such proposed Transferee shall be
      effected.

     

    (D)  Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall agree (x) to require a Transfer Affidavit and Agreement from any other
      Person to whom such Person attempts to transfer its Ownership Interest in a
      Residual Certificate and (Y) not to transfer its Ownership Interest unless
      it
      provides a Transferor Affidavit (in the form attached hereto as Exhibit E)
      to
      the Securities Administrator stating that, among other things, it has no actual
      knowledge that such other Person is not a Permitted Transferee.

     

    (E)  Each
      Person holding or acquiring an Ownership Interest in a Residual Certificate,
      by
      purchasing an Ownership Interest in such Certificate, agrees to give the
      Securities Administrator written notice that it is a “pass-through interest
      holder” within the meaning of temporary Treasury regulation
      Section 1.67-3T(a)(2)(i)(A) immediately upon acquiring an Ownership
      Interest in a Residual Certificate, if it is, or is holding an Ownership
      Interest in a Residual Certificate on behalf of, a “pass-through interest
      holder.”

     

    (ii)  The
      Securities Administrator will register the Transfer of any Residual Certificate
      only if it shall have received the Transfer Affidavit and Agreement and all
      of
      such other documents as shall have been reasonably required by the Securities
      Administrator as a condition to such registration. In addition, no Transfer
      of a
      Residual Certificate shall be made unless the Securities Administrator shall
      have received a representation letter from the Transferee of such Certificate
      to
      the effect that such Transferee is a Permitted Transferee.

     

    (iii)  (A)If
      any
      purported Transferee shall become a Holder of a Residual Certificate in
      violation of the provisions of this Section 6.02(d), then the last
      preceding Permitted Transferee shall be restored, to the extent permitted by
      law, to all rights as holder thereof retroactive to the date of registration
      of
      such Transfer of such Residual Certificate. The Securities Administrator shall
      be under no liability to any Person for any registration of Transfer of a
      Residual Certificate that is in fact not permitted by this Section 6.02(d)
      or for making any payments due on such Certificate to the holder thereof or
      for
      taking any other action with respect to such holder under the provisions of
      this
      Agreement.

     

    (B)  If
      any
      purported Transferee shall become a holder of a Residual Certificate in
      violation of the restrictions in this Section 6.02(d) and to the extent
      that the retroactive restoration of the rights of the holder of such Residual
      Certificate as described in clause (iii)(A) above shall be invalid, illegal
      or
      unenforceable, then the Securities Administrator shall have the right, without
      notice to the holder or any prior holder of such Residual Certificate, to sell
      such Residual Certificate to a purchaser selected by the Securities
      Administrator on such terms as the Securities Administrator may choose. Such
      purported Transferee shall promptly endorse and deliver each Residual
      Certificate in accordance with the instructions of the Securities Administrator.
      Such purchaser may be the Securities Administrator itself or any Affiliate
      of
      the Securities Administrator. The proceeds of such sale, net of the commissions
      (which may include commissions payable to the Securities Administrator or its
      Affiliates), expenses and taxes due, if any, will be remitted by the Securities
      Administrator to such purported Transferee. The terms and conditions of any
      sale
      under this clause (iii)(B) shall be determined in the sole discretion of the
      Securities Administrator, and the Securities Administrator shall not be liable
      to any Person having an Ownership Interest in a Residual Certificate as a result
      of its exercise of such discretion.

     

    (iv)  The
      Securities Administrator shall make available to the Internal Revenue Service
      and those Persons specified by the REMIC Provisions all information necessary
      to
      compute any tax imposed (A) as a result of the Transfer of an Ownership Interest
      in a Residual Certificate to any Person who is a Disqualified Organization,
      including the information described in Treasury regulations sections
      1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the “excess inclusions” of
      such Residual Certificate and (B) as a result of any regulated investment
      company, real estate investment trust, common trust fund, partnership, trust,
      estate or organization described in Section 1381 of the Code that holds an
      Ownership Interest in a Residual Certificate having as among its record holders
      at any time any Person which is a Disqualified Organization. Reasonable
      compensation for providing such information may be charged or collected by
      the
      Securities Administrator.

     

    (v)  The
      provisions of this Section 6.02(d) set forth prior to this subsection (v)
      may be modified, added to or eliminated, provided that there shall have been
      delivered to the Securities Administrator at the expense of the party seeking
      to
      modify, add to or eliminate any such provision the following:

     

    (A)  written
      notification from each Rating Agency to the effect that the modification,
      addition to or elimination of such provisions will not cause such Rating Agency
      to downgrade its then-current ratings of any Class of Certificates;
      and

     

    (B)  an
      Opinion of Counsel, in form and substance satisfactory to the Securities
      Administrator, to the effect that such modification of, addition to or
      elimination of such provisions will not cause any REMIC to cease to qualify
      as a
      REMIC and will not cause any REMIC, as the case may be, to be subject to an
      entity-level tax caused by the Transfer of any Residual Certificate to a Person
      that is not a Permitted Transferee or a Person other than the prospective
      transferee to be subject to a REMIC-tax caused by the Transfer of a Residual
      Certificate to a Person that is not a Permitted Transferee.

     

    (d)  Subject
      to the preceding subsections, upon surrender for registration of transfer of
      any
      Certificate at any office or agency of the Securities Administrator maintained
      for such purpose pursuant to Section 9.11, the Securities Administrator
      shall execute, authenticate and deliver, in the name of the designated
      Transferee or Transferees, one or more new Certificates of the same Class of
      a
      like aggregate Percentage Interest.

     

    (e)  At
      the
      option of the Holder thereof, any Certificate may be exchanged for other
      Certificates of the same Class with authorized denominations and a like
      aggregate Percentage Interest, upon surrender of such Certificate to be
      exchanged at any office or agency of the Securities Administrator maintained
      for
      such purpose pursuant to Section 9.11. Whenever any Certificates are so
      surrendered for exchange, the Securities Administrator shall execute,
      authenticate and deliver, the Certificates which the Certificateholder making
      the exchange is entitled to receive. Every Certificate presented or surrendered
      for transfer or exchange shall (if so required by the Securities Administrator)
      be duly endorsed by, or be accompanied by a written instrument of transfer
      in
      the form satisfactory to the Securities Administrator duly executed by, the
      Holder thereof or his attorney duly authorized in writing. In addition, (i)
      with
      respect to each Class R Certificate, the holder thereof may exchange, in the
      manner described above, such Class R Certificate for three separate
      certificates, each representing such holder's respective Percentage Interest
      in
      the Class R-1 Interest, the Class R-2 Interest and the Class R-3 Interest,
      respectively, in each case that was evidenced by the Class R Certificate being
      exchanged and (ii) with respect to each Class R-X Certificate, the holder
      thereof may exchange, in the manner described above, such Class R-X Certificate
      for three separate certificates, each representing such holder's respective
      Percentage Interest in the Class R-4 Interest, the Class R-5 Interest and the
      Class R-6 Interest, respectively, in each case that was evidenced by the Class
      R-X Certificate being exchanged.

     

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

     

    (g)  The
      preparation and delivery of all certificates and opinions referred to above
      in
      this Section 6.02 shall not be an expense of the Trust Fund, the Securities
      Administrator, the Depositor or the Sponsor.

     

    (h)  All
      Certificates surrendered for transfer and exchange shall be canceled and
      destroyed by the Securities Administrator in accordance with its customary
      procedures.

     

    Section
      6.03  Mutilated,
      Destroyed, Lost or Stolen Certificates.

     

    If
      (a)
      any mutilated Certificate is surrendered to the Securities Administrator, or
      the
      Securities Administrator receives evidence to its satisfaction of the
      destruction, loss or theft of any Certificate and of the ownership thereof
      and
      (b) there is delivered to the Securities Administrator such security or
      indemnity as may be required by them to save each of them harmless, then, in
      the
      absence of notice to the Securities Administrator that such Certificate has
      been
      acquired by a bona fide purchaser, the Securities Administrator shall execute,
      authenticate and deliver, in exchange for or in lieu of any such mutilated,
      destroyed, lost or stolen Certificate, a new Certificate of like Class, tenor
      and Percentage Interest. In connection with the issuance of any new Certificate
      under this Section 6.03, the Securities Administrator may require the
      payment of a sum sufficient to cover any tax or other governmental charge that
      may be imposed in relation thereto and any other expenses (including the fees
      and expenses of the Securities Administrator) connected therewith. Any
      replacement Certificate issued pursuant to this Section 6.03 shall
      constitute complete and indefeasible evidence of ownership in the Trust Fund,
      as
      if originally issued, whether or not the lost, stolen or destroyed Certificate
      shall be found at any time. All Certificates surrendered to the Securities
      Administrator under the terms of this Section 6.03 shall be canceled and
      destroyed by the Securities Administrator in accordance with its standard
      procedures without liability on its part.

     

    Section
      6.04  Persons
      Deemed Owners.

     

    The
      Depositor, the Servicers, the Trustee, the Master Servicer, the Securities
      Administrator and any of their agents may treat the person in whose name any
      Certificate is registered as the owner of such Certificate for the purpose
      of
      receiving distributions as provided in this Agreement and for all other purposes
      whatsoever, and none of the Depositor, the Servicers, the Trustee, the Master
      Servicer, the Securities Administrator nor any of their agents shall be affected
      by any notice to the contrary.

     

    Section
      6.05  Access
      to List of Certificateholders’ Names and Addresses.

     

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

     

    Section
      6.06  Book-Entry
      Certificates.

     

    The
      Regular Certificates, upon original issuance, shall be issued in the form of
      one
      or more typewritten Certificates representing the Book- Entry Certificates,
      to
      be delivered to the Depository by or on behalf of the Depositor. Such
      Certificates shall initially be registered on the Certificate Register in the
      name of the Depository or its nominee, and no Certificate Owner of such
      Certificates will receive a definitive certificate representing such Certificate
      Owner’s interest in such Certificates, except as provided in Section 6.08.
      Unless and until definitive, fully registered Certificates (“Definitive
      Certificates”) have been issued to the Certificate Owners of such Certificates
      pursuant to Section 6.08:

     

    (a)  the
      provisions of this Section shall be in full force and effect;

     

    (b)  the
      Depositor and the Securities Administrator may deal with the Depository and
      the
      Depository Participants for all purposes (including the making of distributions)
      as the authorized representative of the respective Certificate Owners of such
      Certificates;

     

    (c)  registration
      of the Book-Entry Certificates may not be transferred by the Securities
      Administrator except to another Depository;

     

    (d)  the
      rights of the respective Certificate Owners of such Certificates shall be
      exercised only through the Depository and the Depository Participants and shall
      be limited to those established by law and agreements between the Owners of
      such
      Certificates and the Depository and/or the Depository Participants. Pursuant
      to
      the Depository Agreement, unless and until Definitive Certificates are issued
      pursuant to Section 6.08, the Depository will make book-entry transfers
      among the Depository Participants and receive and transmit distributions of
      principal and interest on the related Certificates to such Depository
      Participants;

     

    (e)  the
      Depository may collect its usual and customary fees, charges and expenses from
      its Depository Participants;

     

    (f)  the
      Depositor, the Servicer, the Trustee, the Master Servicer and the Securities
      Administrator may rely and shall be fully protected in relying upon information
      furnished by the Depository with respect to its Depository Participants;
      and

     

    (g)  to
      the
      extent that the provisions of this Section conflict with any other
      provisions of this Agreement, the provisions of this Section shall
      control.

     

    For
      purposes of any provision of this Agreement requiring or permitting actions
      with
      the consent of, or at the direction of, Certificateholders evidencing a
      specified percentage of the aggregate unpaid principal amount of any Class
      of
      Certificates, such direction or consent may be given by Certificate Owners
      (acting through the Depository and the Depository Participants) owning
      Book-Entry Certificates evidencing the requisite percentage of principal amount
      of such Class of Certificates.

     

    Section
      6.07  Notices
      to Depository.

     

    Whenever
      any notice or other communication is required to be given to Certificateholders
      of a Class with respect to which Book-Entry Certificates have been issued,
      unless and until Definitive Certificates shall have been issued to the related
      Certificate Owners, the Securities Administrator shall give all such notices
      and
      communications to the Depository.

     

    Section
      6.08  Definitive
      Certificates.

     

    If,
      after
      Book-Entry Certificates have been issued with respect to any Certificates,
      (a)
      the Depositor or the Depository advises the Securities Administrator that the
      Depository is no longer willing or able to discharge properly its
      responsibilities under the Depository Agreement with respect to such
      Certificates and the Securities Administrator or the Depositor is unable to
      locate a qualified successor, (b) the Depositor, at its sole option, advises
      the
      Securities Administrator that it elects to terminate the book-entry system
      with
      respect to such Certificates through the Depository or (c) after the occurrence
      and continuation of either of the events described in clauses (a) or (b) above,
      Certificate Owners of such Book-Entry Certificates having not less than fifty
      one percent (51%) of the Voting Rights evidenced by any Class of Book-Entry
      Certificates advise the Securities Administrator and the Depository in writing
      through the Depository Participants that the continuation of a book-entry system
      with respect to Certificates of such Class through the Depository (or its
      successor) is no longer in the best interests of the Certificate Owners of
      such
      Class, then the Securities Administrator shall notify all Certificate Owners
      of
      such Certificates, through the Depository, of the occurrence of any such event
      and of the availability of Definitive Certificates to applicable Certificate
      Owners requesting the same. The Depositor shall provide the Securities
      Administrator with an adequate inventory of certificates to facilitate the
      issuance and transfer of Definitive Certificates. Upon surrender to the
      Securities Administrator of any such Certificates by the Depository, accompanied
      by registration instructions from the Depository for registration, the
      Securities Administrator shall countersign and deliver such Definitive
      Certificates. Neither the Depositor nor the Securities Administrator shall
      be
      liable for any delay in delivery of such instructions and each may conclusively
      rely on, and shall be protected in relying on, such instructions. Upon the
      issuance of such Definitive Certificates, all references herein to obligations
      imposed upon or to be performed by the Depository shall be deemed to be imposed
      upon and performed by the Securities Administrator, to the extent applicable
      with respect to such Definitive Certificates and the Securities Administrator
      shall recognize the Holders of such Definitive Certificates as
      Certificateholders hereunder.

     

    Section
      6.09  Maintenance
      of Office or Agency.

     

    Certificates
      may be surrendered for registration of transfer or exchange at the applicable
      Corporate Trust Office of the Securities Administrator. The Securities
      Administrator will give prompt written notice to the Certificateholders of
      any
      change in such location of any such office or agency.

     

    ARTICLE
      VII

     

    THE
      DEPOSITOR, THE RELATED SERVICER AND THE MASTER SERVICER

     

    Section
      7.01  Liabilities
      of the Depositor, the related Servicer and the Master Servicer.

     

    Each
      of
      the Depositor, the related Servicer and the Master Servicer shall be liable
      in
      accordance herewith only to the extent of the obligations specifically imposed
      upon and undertaken by it herein.

     

    Section
      7.02  Merger
      or Consolidation of the Depositor, the related Servicer or the Master
      Servicer.

     

    (a)  Each
      of
      the Depositor and the related Servicer will keep in full force and effect its
      rights and franchises as a corporation (or other entity resulting from merger,
      conversion or consolidation to the extent permitted under this Section 7.02)
      under the laws of the state of its incorporation or formation, and
      will
      obtain and preserve its qualification to do business as a foreign corporation
      in
      each jurisdiction in which such qualification is or shall be necessary to
      protect the validity and enforceability of this Agreement, the Certificates
      or
      any of the Mortgage Loans and to perform its duties under this
      Agreement.
      The
      Master Servicer will keep in full force and effect its existence, rights and
      franchises as a national banking association, and will obtain and preserve
      its
      qualification to do business as a foreign corporation in each jurisdiction
      in
      which such qualification is or shall be necessary to protect the validity and
      enforceability of this Agreement, the Certificates or any of the Mortgage Loans
      and to perform its duties under this Agreement.

     

    (b)  The
      Depositor, the related Servicer or the Master Servicer may be merged, converted,
      or consolidated, and any Person resulting from any merger, conversion, or
      consolidation to which the Depositor, such Servicer or the Master Servicer
      shall
      be a party, or any Person succeeding to the business of the Depositor, such
      Servicer or the Master Servicer shall be the successor of the Depositor, such
      Servicer or the Master Servicer hereunder, without the execution or filing
      of
      any paper or further act on the part of any of the parties hereto, anything
      herein to the contrary notwithstanding, provided that any Successor Servicer
      shall have represented that it meets the eligibility criteria set forth in
      Section 8.02.

     

    Section
      7.03  Indemnification
      of the Depositor and Servicing Function Participants.

     

    (a)  The
      Depositor agrees to indemnify the Indemnified Persons for, and to hold them
      harmless against, any loss, liability or expense (including reasonable legal
      fees and disbursements of counsel) incurred on their part that may be sustained
      in connection with, arising out of, or relating to, any claim or legal action
      (including any pending or threatened claim or legal action) relating to this
      Agreement or the Certificates (i) related to the Depositor’s failure to perform
      its duties in compliance with this Agreement (except as any such loss, liability
      or expense shall be otherwise reimbursable pursuant to this Agreement) or (ii)
      incurred by reason of the Depositor’s willful misfeasance, bad faith or gross
      negligence in the performance of duties hereunder or by reason of reckless
      disregard of obligations and duties hereunder. This indemnity shall survive
      the
      resignation of and the termination of this Agreement.

     

    (b)  The
      related Servicer agrees to indemnify the Indemnified Persons for, and to hold
      them harmless against, any loss, liability or expense (including reasonable
      legal fees and disbursements of counsel) incurred on their part that may be
      sustained in connection with, arising out of, or relating to, any claim or
      legal
      action (including any pending or threatened claim or legal action) relating
      to
      such Servicer’s gross negligence in the performance of its duties under this
      Agreement or failure to service the related Mortgage Loans in material
      compliance with the terms of this Agreement and for a material breach of any
      representation, warranty or covenant of such Servicer contained herein. The
      related Servicer shall immediately notify the Trustee if a claim is made by
      a
      third party with respect to this Agreement or the related Mortgage Loans, assume
      (with the consent of the Trustee and with counsel reasonably satisfactory to
      the
      Trustee) the defense of any such claim and pay all expenses in connection
      therewith, including counsel fees, and promptly appeal or pay, discharge and
      satisfy any judgment or decree which may be entered against it or any
      Indemnified Person in respect of such claim, but failure to so notify the
      related Servicer shall not limit its obligations hereunder. The related Servicer
      agrees that it will not enter into any settlement of any such claim without
      the
      consent of the Indemnified Persons unless such settlement includes an
      unconditional release of such Indemnified Persons from all liability that is
      the
      subject matter of such claim. The provisions of this Section 7.03(b) shall
      survive termination of this Agreement.

     

    (c)  Each
      Servicing Function Participant shall indemnify and hold harmless the related
      Servicer, the Master Servicer, the Securities Administrator, the Trustee, the
      Depositor and the Sponsor and their respective directors, officers, employees,
      agents, and affiliates from and against any and all claims, losses, damages,
      penalties, fines, forfeitures, reasonable legal fees and related costs,
      judgments and other costs and expenses arising out of or based upon (a) any
      breach by such party of any if its obligations hereunder, including particularly
      its obligations to provide any Assessment of Compliance, Attestation Report,
      Compliance Statement, Back-up Certification or any information, data or
      materials required to be included in any Exchange Act report, (b) any material
      misstatement or material omission in any information, data or materials required
      to be contained in (i) any compliance certificate delivered by the such party
      pursuant to Section 3.13 of this Agreement, (ii) any assessment or attestation
      delivered by such party pursuant to Section 3.14 of this Agreement, (iii) any
      back-up certification (in the form of Exhibit M) delivered by such party
      pursuant to Section 3.18 of this Agreement or (iv) any disclosure materials
      delivered by such party pursuant to Section 5.17 or (c) the negligence, bad
      faith or willful misconduct of such party in connection with its performance
      hereunder. If the indemnification provided for herein is unavailable or
      insufficient to hold harmless the related Servicer, the Master Servicer, the
      Securities Administrator, the Trustee, the Depositor and the Sponsor, then
      each
      such party agrees that it shall contribute to the amount paid or payable by
      the
      Master Servicer, the Securities Administrator, the Trustee, the Depositor and
      the Sponsor as a result of any claims, losses, damages or liabilities incurred
      by Master Servicer, the Securities Administrator, the Trustee, the Depositor
      and
      the Sponsor in such proportion as is appropriate to reflect the relative fault
      of the Master Servicer, the Securities Administrator, the Trustee, the Depositor
      and the Sponsor on the one hand and such party on the other. This indemnity
      shall survive the termination or resignation of the parties hereto or the
      termination of this Agreement.

     

    Section
      7.04  Limitations
      on Liability of the Depositor, Securities Administrator, Master Servicer,
      related Servicer and Others.

     

    Subject
      to the obligation of the Depositor and the related Servicer to indemnify the
      Indemnified Persons pursuant to Section 7.03:

     

    (a)  Neither
      the Depositor, the Securities Administrator, the Master Servicer nor any of
      the
      directors, officers, employees or agents of the Depositor, the Securities
      Administrator and the Master Servicer shall be under any liability to the
      Indemnified Persons, the Trust Fund or the Certificateholders for taking any
      action or for refraining from taking any action in good faith pursuant to this
      Agreement, or for errors in judgment; provided, however, that this provision
      shall not protect the Depositor, the Securities Administrator, the Master
      Servicer or any such Person against any breach of warranties, representations
      or
      covenants made herein or against any specific liability imposed on any such
      Person pursuant hereto or against any liability which would otherwise be imposed
      by reason of such Person’s willful misfeasance, bad faith or gross negligence in
      the performance of duties or by reason of reckless disregard of obligations
      and
      duties hereunder.

     

    (b)  The
      Depositor, the Securities Administrator, the Master Servicer and any director,
      officer, employee or agent of the Depositor, the Securities Administrator and
      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.

     

    (c)  The
      Depositor, the Securities Administrator, the Master Servicer, the related
      Servicer, the Trustee, the Custodian and any director, officer, employee or
      agent of the Depositor, the Securities Administrator, the Master Servicer,
      the
      related Servicer, the Trustee or the Custodian shall be indemnified by the
      Trust
      Fund and held harmless thereby against any loss, liability or expense (including
      reasonable legal fees and disbursements of counsel) incurred on their part
      that
      may be sustained in connection with, arising out of, or relating to this
      Agreement, the Custodial Agreement or the Certificates (including any pending
      or
      threatened claim or legal action), other than (i) with respect to the related
      Servicer, such loss, liability or expense related to the Servicer’s failure to
      perform its duties in compliance with this Agreement (except as any such loss,
      liability or expense shall be otherwise reimbursable pursuant to this Agreement)
      or, with respect to the Custodian, to the Custodian’s failure to perform its
      duties hereunder, (ii) with respect to the related Servicer, any such loss,
      liability or expense incurred by reason of such Servicer’s willful misfeasance,
      bad faith or gross negligence in the performance of its duties hereunder or
      (iii) with respect to Custodian, any such loss, liability or expense incurred
      by
      reason of the Custodian’s willful misfeasance, bad faith or gross negligence in
      the performance of its duties hereunder.

     

    (d)  The
      Depositor the Securities Administrator or the Master Servicer shall not be
      under
      any obligation to appear in, prosecute or defend any legal action that is not
      incidental to its duties under this Agreement and that in its opinion may
      involve it in any expense or liability; provided, however, that each of the
      Depositor, the Securities Administrator and the Master Servicer may in its
      discretion, undertake any such action which it may deem necessary or desirable
      with respect to this Agreement and the rights and duties of the parties hereto
      and the interests of the Certificateholders hereunder. In such event, the legal
      expenses and costs of such action and any liability resulting therefrom (except
      any loss, liability or expense incurred by reason of willful misfeasance, bad
      faith or gross negligence in the performance of duties hereunder or by reason
      of
      reckless disregard of obligations and duties hereunder) shall be expenses,
      costs
      and liabilities of the Trust Fund, and the Depositor, the Securities
      Administrator and the Master Servicer shall be entitled to be reimbursed
      therefor out of the Distribution Account as provided by Section 3.32.
      Nothing in this Subsection 7.04(d) shall affect the Master Servicer’s obligation
      to take such actions as are necessary to ensure the servicing and administration
      of the Mortgage Loans pursuant to this Agreement.

     

    (e)  In
      taking
      or recommending any course of action pursuant to this Agreement, unless
      specifically required to do so pursuant to this Agreement, the Trustee shall
      not
      be required to investigate or make recommendations concerning potential
      liabilities which the Trust Fund might incur as a result of such course of
      action by reason of the condition of the Mortgaged Properties.

     

    (f)  The
      Trustee shall not be liable for any acts or omissions of any Servicer, the
      Depositor or the Custodian.

     

    Section
      7.05  The
      related Servicer Not to Resign.

     

    (a)  The
      related Servicer shall resign from the obligations and duties hereby imposed
      on
      it except upon the determination that its duties hereunder are no longer
      permissible under applicable law or the performance of such duties are no longer
      possible in order to comply with applicable law and such incapacity or
      impossibility cannot be cured by such Servicer. Any determination permitting
      the
      resignation of the related Servicer shall be evidenced by an Opinion of Counsel
      to such effect delivered to the Master Servicer which Opinion of Counsel shall
      be in form and substance acceptable to the Master Servicer. No appointment
      of a
      successor to the related Servicer shall be effective hereunder unless (a) the
      Rating Agencies have confirmed in writing that such appointment will not result
      in a downgrade, qualification or withdrawal of the then current ratings assigned
      to the Certificates, (b) such successor shall have represented that it is meets
      the eligibility criteria set forth in Section 8.02 and (c) such successor
      has agreed in writing to assume the obligations of the related Servicer
      hereunder. The related Servicer shall provide a copy of the written confirmation
      of the Rating Agencies and the agreement executed by such successor to the
      Master Servicer. No such resignation shall become effective until a successor
      servicer or the Master Servicer shall have assumed the related Servicer’s
      responsibilities and obligations hereunder. The related Servicer shall notify
      the Master Servicer and the Rating Agencies of its resignation.

     

    (b)  Except
      as
      expressly provided herein, the related Servicer shall not assign or transfer
      any
      of its rights, benefits or privileges hereunder to any other Person, or delegate
      to or subcontract with, or authorize or appoint any other Person to perform
      any
      of the duties, covenants or obligations to be performed by such Servicer
      hereunder. The foregoing prohibition on assignment shall not prohibit the
      related Servicer from designating a Subservicer as payee of any indemnification
      amount payable to the related Servicer hereunder; provided, however, that as
      provided in Section 3.03, no Subservicer or Subcontractor shall be a
      third-party beneficiary hereunder and the parties hereto shall not be required
      to recognize any Subservicer or Subcontractor as an indemnitee under this
      Agreement.

     

    Section
      7.06  Termination
      of the related Servicer Without Cause; Appointment of Special
      Servicer.

     

    (a)  For
      so
      long as the Sponsor retains ownership of the servicing rights with respect
      to
      any of the Mortgage Loans, the Sponsor may, at its option, terminate the
      servicing responsibilities of the related Servicer hereunder with respect to
      such Mortgage Loans without cause. No such termination shall become effective
      unless and until a successor to such Servicer shall have been appointed to
      service and administer the related Mortgage Loans pursuant to the terms and
      conditions of this Agreement. No appointment shall be effective unless (i)
      such
      successor servicer meets the eligibility criteria contained in
      Section 8.02, (ii) the Master Servicer shall have consented to such
      appointment, (iii) the Rating Agencies have been notified in writing of such
      appointment and such successor servicer meets the Minimum Servicing
      Requirements, (iv) such successor has agreed to assume the obligations of the
      related Servicer hereunder to the extent of the related Mortgage Loans and
      (v)
      all amounts reimbursable to the related Servicer pursuant to the terms of this
      Agreement shall have been paid to the related Servicer by the successor
      appointed pursuant to the terms of this Section 7.06 or by the Sponsor
      including without limitation, all unreimbursed Advances and Servicing Advances
      made by the related Servicer and all out-of-pocket expenses of the related
      Servicer incurred in connection with the transfer of servicing to such
      successor. The Sponsor shall provide a copy of the written confirmation of
      the
      Rating Agencies and the agreement executed by such successor to the Trustee
      and
      the Master Servicer.

     

    The
      rights of the Sponsor to terminate the related Servicer pursuant to this Section
      7.06(a) will cease to exist if the Sponsor sells or otherwise divests itself
      of
      its ownership of the servicing rights with respect to the Mortgage Loans;
      provided, however, that this Section 7.06(a) will be operative at any time
      the
      Sponsor retains or comes into possession of such servicing rights.

     

    (b)  In
      addition, the Sponsor may, at its option, appoint a special servicer with
      respect to certain of the Mortgage Loans. The Sponsor and the related Servicer
      shall negotiate in good faith with any proposed special servicer with respect
      to
      the duties and obligations of such special servicer with respect to any such
      Mortgage Loan. Any Subservicing Agreement shall contain terms and provisions
      not
      inconsistent with this Agreement and shall obligate the special servicer to
      service such Mortgage Loans in accordance with Accepted Servicing Practices.
      The
      fee payable to the special servicer for the performance of such duties and
      obligations will paid from the Servicing Fee collected by the related Servicer
      with respect to each such Mortgage Loan and will be remitted to such special
      servicer by the related Servicer. 

     

    Section
      7.07  Limitation
      on Resignation of the Master Servicer.

     

    The
      Master Servicer shall not resign from the obligations and duties hereby imposed
      on it except upon determination that its duties hereunder are no longer
      permissible under applicable law. Any such determination pursuant to the
      preceding sentence permitting the resignation of the Master Servicer shall
      be
      evidenced by an Opinion of Counsel to such effect obtained at the expense of
      the
      Master Servicer and delivered to the Trustee and the Rating Agencies. No
      resignation of the Master Servicer shall become effective until the Trustee
      or a
      successor Master Servicer meeting the criteria specified in Section 7.08
      shall have assumed the Master Servicer’s responsibilities, duties, liabilities
      (other than those liabilities arising prior to the appointment of such
      successor) and obligations under this Agreement.

     

    Section
      7.08  Assignment
      of Master Servicing.

     

    The
      Master Servicer may sell and assign its rights and delegate its duties and
      obligations in its entirety as Master Servicer under this Agreement; provided,
      however, that: (i) the purchaser or transferee accepting such assignment and
      delegation and assuming the obligations of the Master Servicer hereunder (a)
      shall have a net worth of not less than $15,000,000 (unless otherwise approved
      by each Rating Agency pursuant to clause (ii) below); (b) shall be reasonably
      satisfactory to the Trustee (as evidenced in a writing signed by the Trustee);
      and (c) shall execute and deliver to the Trustee an agreement, in form and
      substance reasonably satisfactory to the Trustee, which contains an assumption
      by such Person of the due and punctual performance and observance of each
      covenant and condition to be performed or observed by it as master servicer
      under this Agreement, any custodial agreement from and after the effective
      date
      of such agreement; (ii) each Rating Agency shall be given prior written notice
      of the identity of the proposed successor to the Master Servicer and each Rating
      Agency’s rating of the Certificates in effect immediately prior to such
      assignment, sale and delegation will not be downgraded, qualified or withdrawn
      as a result of such assignment, sale and delegation, as evidenced by a letter
      to
      such effect delivered to the Master Servicer and the Trustee; and (iii) the
      Master Servicer assigning the master servicing shall deliver to the Trustee
      an
      officer’s certificate and an Opinion of Independent counsel, each stating that
      all conditions precedent to such action under this Agreement have been completed
      and such action is permitted by and complies with the terms of this Agreement.
      No such assignment or delegation shall affect any liability of the Master
      Servicer arising out of acts or omissions prior to the effective date
      thereof.

     

    Section
      7.09  Rights
      of the Depositor in Respect of the related Servicer and the Master
      Servicer.

     

    Each
      of
      the Master Servicer and the related Servicer shall afford (and any Subservicing
      Agreement shall provide that each Subservicer or Subcontractor shall afford)
      the
      Depositor and the Trustee, upon reasonable notice, during normal business hours,
      access to all records maintained by the Master Servicer or the related Servicer
      (and any such Subservicer or Subcontractor) in respect of the related Servicer’s
      rights and obligations hereunder and access to officers of the Master Servicer
      or the related Servicer (and those of any such Subservicer or Subcontractor)
      responsible for such obligations, and the Master Servicer shall have access
      to
      all such records maintained by the related Servicer and any Subservicers. Upon
      request, each of the Master Servicer and the related Servicer shall furnish
      to
      the Depositor and the Trustee its (and any such Subservicer’s or
      Subcontractor’s) most recent financial statements and such other information
      relating to the Master Servicer’s or the related Servicer’s capacity to perform
      its obligations under this Agreement as it possesses (and that any such
      Subservicer or Subcontractor possesses). To the extent the Depositor and the
      Trustee are informed that such information is not otherwise available to the
      public, the Depositor and the Trustee shall not disseminate any information
      obtained pursuant to the preceding two sentences without the Master Servicer’s
      or the related Servicer’s written consent, except as required pursuant to this
      Agreement or to the extent that it is appropriate to do so (i) to its legal
      counsel, auditors, taxing authorities or other governmental agencies and the
      Certificateholders, (ii) pursuant to any law, rule, regulation, order, judgment,
      writ, injunction or decree of any court or governmental authority having
      jurisdiction over the Depositor and the Trustee or the Trust Fund, and in any
      case, the Depositor or the Trustee, (iii) disclosure of any and all information
      that is or becomes publicly known, or information obtained by the Trustee from
      sources other than the Depositor, the related Servicer or the Master Servicer,
      (iv) disclosure as required pursuant to this Agreement or (v) disclosure of
      any
      and all information (A) in any preliminary or final offering circular,
      registration statement or contract or other document pertaining to the
      transactions contemplated by the Agreement approved in advance by the Depositor,
      the related Servicer or the Master Servicer or (B) to any affiliate, independent
      or internal auditor, agent, employee or attorney of the Trustee having a need
      to
      know the same, provided that the Trustee advises such recipient of the
      confidential nature of the information being disclosed, shall use its best
      efforts to assure the confidentiality of any such disseminated non-public
      information. Nothing in this Section 7.09 shall limit the obligation of the
      related Servicer to comply with any applicable law prohibiting disclosure of
      information regarding the Mortgagors and the failure of the related Servicer
      to
      provide access as provided in this Section 7.09 as a result of such
      obligation shall not constitute a breach of this Section. Nothing in this
      Section 7.09 shall require the related Servicer to collect, create, collate
      or otherwise generate any information that it does not generate in its usual
      course of business. The related Servicer shall not be required to make copies
      of
      or ship documents to any party unless provisions have been made for the
      reimbursement of the costs thereof. The Depositor may, but is not obligated
      to,
      enforce the obligations of the Master Servicer and the related Servicer under
      this Agreement and may, but is not obligated to, perform, or cause a designee
      to
      perform, any defaulted obligation of the Master Servicer or the related Servicer
      under this Agreement or exercise the rights of the Master Servicer or the
      related Servicer under this Agreement; provided that neither the Master Servicer
      nor the related Servicer shall be relieved of any of its obligations under
      this
      Agreement by virtue of such performance by the Depositor or its designee. The
      Depositor shall not have any responsibility or liability for any action or
      failure to act by the Master Servicer or the related Servicer and is not
      obligated to supervise the performance of the Master Servicer or the related
      Servicer under this Agreement or otherwise.

     

    ARTICLE
      VIII

     

    DEFAULT;
      TERMINATION OF A SERVICER AND MASTER SERVICER

     

    Section
      8.01  Events
      of Default.

     

    (a)  In
      case
      one or more of the following events of default by a Servicer (each, a “Servicer
      Default”) shall occur and be continuing, that is to say:

     

    (ii)  any
      failure by such Servicer to remit to the Securities Administrator any payment
      required to be made under the terms of this Agreement which continues unremedied
      for a period of two (2) Business Days; or

     

    (iii)  failure
      on the part of a
      Servicer to
      duly
      observe or perform in any material respect any other of the covenants or
      agreements on the part of such Servicer set forth in this Agreement (other
      than
      those described in (viii) and (ix) below), the breach of which has a material
      adverse effect and which continue unremedied for a period of thirty days after
      the date on which written notice of such failure, requiring the same to be
      remedied, shall have been given to such Servicer by the Master Servicer or
      to
      such Servicer and the Master Servicer by the holders of Certificates evidencing
      not less than twenty-five percent (25%) of the Voting Rights evidenced by the
      Certificates; or

     

    (iv)  a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      for
      the appointment of a conservator or receiver or liquidator in any insolvency,
      bankruptcy, readjustment of debt, marshaling of assets and liabilities or
      similar proceedings, or for the winding-up or liquidation of its affairs, shall
      have been entered against such Servicer and such decree or order shall have
      remained in force undischarged or unstayed for a period of sixty days;
      or

     

    (v)  such
      Servicer shall consent to the appointment of a conservator or receiver or
      liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling
      of
      assets and liabilities or similar proceedings of or relating to such Servicer
      or
      of or relating to all or substantially all of its property; or

     

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

     

    (vii)  such
      Servicer attempts to assign its right to servicing compensation hereunder (other
      than any payment by such Servicer to the Sponsor of any portion of the Servicing
      Fee payable to such Servicer as provided in a separate side letter between
      the
      Sponsor and such Servicer) or such Servicer attempts to sell or otherwise
      dispose of all or substantially all of its property or assets or to assign
      this
      Agreement or the servicing responsibilities hereunder or to delegate its duties
      hereunder or any portion thereof except, in each case as otherwise permitted
      herein; or

     

    (viii)  such
      Servicer ceases to be qualified to transact business in any jurisdiction where
      it is currently so qualified, but only to the extent such non-qualification
      materially and adversely affects such Servicer’s ability to perform its
      obligations hereunder;

     

    (ix)  so
      long
      as the Trust Fund is subject to Exchange Act reporting requirements, failure
      by
      such Servicer to duly perform, within the required time period, its obligations
      under Sections 3.13, 3.14, 3.18 or 5.12, which default shall not be subject
      to notice or a cure period;

     

    (x)  after
      the
      Trust Fund ceases to be subject to Exchange Act reporting requirements, any
      failure by such Servicer to duly perform, within the required time period,
      its
      obligation to provide the annual statements of compliance and attestation
      reports described in Sections 3.13 and 3.14 hereof, which failure continues
      unremedied for a period of ten (10) Business Days after the date on which
      written notice of such failure, requiring the same to be remedied, has been
      given to such Servicer by the Master Servicer; 

     

    (xi)  any
      failure by such Servicer (or any successor thereto) to provide, within the
      required time period set forth in Section 3.28 hereof, any required reports
      or
      data pertaining to the related Mortgage Loans, which failure continues
      unremedied for a period of thirty (30) days after the date on which written
      notice of such failure, requiring the same to be remedied, has been given to
      such Servicer (or any successor thereto) by the Master Servicer; or

     

    (xii)  with
      respect to Wachovia only, an event of default by Wachovia under the Servicing
      Agreement

     

    then,
      and
      in each and every such case, so long as a Servicer Default shall not have been
      remedied, the Master Servicer, by notice in writing to the related Servicer
      shall with respect to a payment default by such Servicer pursuant to
      Section 8.01(i) of this Agreement or pursuant to the Servicing Agreement
      and, upon the occurrence and continuance of any other Servicer Default may,
      and,
      at the written direction of Certificateholders evidencing not less than 25%
      of
      the Voting Rights shall, in addition to whatever rights the Trustee on behalf
      of
      the Certificateholders may have under Section 7.03 of this Agreement or the
      Servicing Agreement, as applicable and at law or equity to damages, including
      injunctive relief and specific performance, terminate all the rights and
      obligations of such Servicer under this Agreement or the Servicing Agreement,
      as
      applicable and in and to the related Mortgage Loans and the proceeds thereof
      without compensating such Servicer for the same with respect to a default by
      such Servicer. On or after the receipt by such Servicer of such written notice,
      all authority and power of the defaulting Servicer under this Agreement or
      the
      Servicing Agreement, as applicable whether with respect to the related Mortgage
      Loans or otherwise, shall pass to and be vested in the Master Servicer. Upon
      written request from the Master Servicer the defaulting Servicer shall prepare,
      execute and deliver, any and all documents and other instruments, place in
      the
      Trustee’s (or its Custodian’s) possession all Mortgage Files relating to the
      related Mortgage Loans, and do or accomplish all other acts or things necessary
      or appropriate to effect the purposes of such notice of termination, whether
      to
      complete the transfer and endorsement or assignment of the related Mortgage
      Loans and related documents, or otherwise, at such Servicer’s sole expense. The
      defaulting Servicer shall cooperate with the Master Servicer in effecting the
      termination of such Servicer’s responsibilities and rights hereunder or under
      the Servicing Agreement, as applicable, including, without limitation, the
      transfer to such successor for administration by it of all cash amounts which
      shall at the time be credited by the defaulting Servicer to the related
      Custodial Account or Escrow Account or thereafter received with respect to
      the
      related Mortgage Loans or any related REO Property (provided, however, that
      the
      defaulting Servicer shall continue to be entitled to receive all amounts accrued
      or owing to it under this Agreement or the Servicing Agreement, as applicable,
      on or prior to the date of such termination, whether in respect of Advances,
      Servicing Advances, accrued and unpaid Servicing Fees or otherwise, and shall
      continue to be entitled to the benefits of Section 7.04 of this Agreement
      or the benefits under the Servicing Agreement, as applicable, notwithstanding
      any such termination, with respect to events occurring prior to such
      termination). Neither Master Servicer nor the Trustee shall have knowledge
      of a
      Servicer Default unless a Responsible Officer of the Master Servicer or the
      Trustee, as applicable, has actual knowledge or unless written notice of any
      Servicer Default is received by the Master Servicer or the Trustee, as
      applicable, at its address for notice and such notice references the
      Certificates, the Trust Fund or this Agreement.

     

    (b)  In
      case
      one or more of the following events of default by the Master Servicer (each,
      a
“Master Servicer Default”) shall occur and be continuing, that is to
      say:

     

    (i)  any
      failure on the part of the Master Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of the
      Master Servicer contained in this Agreement, or the breach by the Master
      Servicer of any representation and warranty contained in Section 2.03,
      which continues unremedied for a period of thirty (30) days after the date
      on
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the Master Servicer by the Depositor or the Trustee or to
      the
      Master Servicer, the Depositor and the Trustee by the Holders of Certificates
      entitled to at least twenty-five percent (25%) of the Voting Rights;
      or

     

    (ii)  a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises in an involuntary case under any present or future federal or
      state
      bankruptcy, insolvency or similar law or the appointment of a conservator or
      receiver or liquidator in any insolvency, readjustment of debt, marshalling
      of
      assets and liabilities or similar proceeding, or for the winding-up or
      liquidation of its affairs, shall have been entered against the Master Servicer
      and such decree or order shall have remained in force undischarged or unstayed
      for a period of ninety (90) days; or

     

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

     

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

     

    (v)  so
      long
      as the Trust Fund is subject to Exchange Act reporting requirements, failure
      by
      the Master Servicer to duly perform, within the required time period, its
      obligations under Sections 3.13, 3.14, 3.18 or 5.17.

     

    If
      a
      Master Servicer Default shall occur, then, and in each and every such case,
      so
      long as such Master Servicer Default shall not have been remedied, the Depositor
      or the Trustee may, and at the written direction of the Holders of Certificates
      entitled to at least 51% of Voting Rights, the Trustee shall, by notice in
      writing to the Master Servicer (and to the Depositor if given by the Trustee
      or
      to the Trustee if given by the Depositor) with a copy to each Rating Agency,
      terminate all of the rights and obligations of the Master Servicer in its
      capacity as Master Servicer under this Agreement, to the extent permitted by
      law, and in and to the Mortgage Loans and the proceeds thereof. On or after
      the
      receipt by the Master Servicer of such written notice, all authority and power
      of the Master Servicer under this Agreement, whether with respect to the
      Certificates (other than as a Holder of any Certificate) or the Mortgage Loans
      or otherwise including, without limitation, the compensation payable to the
      Master Servicer under this Agreement, shall pass to and be vested in the Trustee
      pursuant to and under this Section, and, without limitation, the Trustee is
      hereby authorized and empowered, as attorney-in-fact or otherwise, to execute
      and deliver, on behalf of and at the expense of the Master Servicer, any and
      all
      documents and other instruments and to do or accomplish all other acts or things
      necessary or appropriate to effect the purposes of such notice of termination,
      whether to complete the transfer and endorsement or assignment of the Mortgage
      Loans and related documents, or otherwise. The Master Servicer agrees promptly
      (and in any event no later than ten Business Days subsequent to such notice)
      to
      provide the Trustee with all documents and records requested by it to enable
      it
      to assume the Master Servicer’s functions under this Agreement, and to cooperate
      with the Trustee in effecting the termination of the Master Servicer’s
      responsibilities and rights under this Agreement (provided, however, that the
      Master Servicer shall continue to be entitled to receive all amounts accrued
      or
      owing to it under this Agreement on or prior to the date of such termination
      and
      shall continue to be entitled to the benefits of Section 7.03,
      notwithstanding any such termination, with respect to events occurring prior
      to
      such termination). For purposes of this Section 8.01, the Trustee shall not
      be deemed to have knowledge of a Master Servicer Default unless a Responsible
      Officer of the Trustee assigned to and working in the Trustee’s Corporate Trust
      Office has actual knowledge thereof or unless written notice of any event which
      is in fact such a Master Servicer Default is received by the Trustee and such
      notice references the Certificates, the Trust Fund or this Agreement. The
      Trustee shall promptly notify the Rating Agencies of the occurrence of a Master
      Servicer Default of which it has knowledge as provided above.

     

    Notwithstanding
      the above, the Trustee may, if it shall be unwilling to continue to so act,
      or
      shall, if it is unable to so act, petition a court of competent jurisdiction
      to
      appoint, or appoint on its own behalf any established housing and home finance
      institution servicer, master servicer, servicing or mortgage servicing
      institution having a net worth of not less than $15,000,000 and meeting such
      other standards for a successor master servicer as are set forth in this
      Agreement, as the successor to such Master Servicer in the assumption of all
      of
      the responsibilities, duties or liabilities of a master servicer, like the
      Master Servicer.

     

    To
      the
      extent that the costs and expenses of the Trustee related to the termination
      of
      the Master Servicer, appointment of a successor Master Servicer or the transfer
      and assumption of the master servicing by the Trustee (including, without
      limitation, (i) all legal costs and expenses and all due diligence costs and
      expenses associated with an evaluation of the potential termination of the
      Master Servicer as a result of a Master Servicer Default and (ii) all costs
      and
      expenses associated with the complete transfer of the master servicing,
      including all servicing files and all servicing data and the completion,
      correction or manipulation of such servicing data as may be required by the
      successor Master Servicer to correct any errors or insufficiencies in the
      servicing data or otherwise to enable the successor Master Servicer to master
      service the Mortgage Loans in accordance with this Agreement) are not fully
      and
      timely reimbursed by the terminated Master Servicer, the Trustee shall be
      entitled to reimbursement of such costs and expenses from the Distribution
      Account. Neither the Trustee nor any other successor master servicer shall
      be
      deemed to be in default hereunder by reason of any failure to make, or any
      delay
      in making, any distribution hereunder or any portion thereof or any failure
      to
      perform, or any delay in performing, any duties or responsibilities hereunder,
      in either case caused by the failure of the Master Servicer to deliver or
      provide, or any delay in delivering or providing, any cash, information,
      documents or records to it. Furthermore, neither the Trustee nor any other
      successor master servicer shall be liable for any acts or omissions of the
      terminated Master Servicer.

     

    Section
      8.02  Master
      Servicer to Act; Appointment of Successor.

     

    On
      and
      after the time a Servicer receives a notice of termination pursuant to
      Section 8.01 of this Agreement or pursuant to the Servicing Agreement, the
      Master Servicer shall become the successor to such Servicer with respect to
      the
      transactions set forth or provided for herein and after a transition period
      (not
      to exceed 90 days), shall be subject to all the responsibilities, duties and
      liabilities relating thereto placed on the terminated Servicer by the terms
      and
      provisions hereof or the Servicing Agreement, as applicable, and applicable
      law
      including the obligation to make Advances pursuant to Article V hereof or the
      Servicing Agreement, as applicable, except as otherwise provided herein or
      therein; provided, however, that the Master Servicer’s obligation to make
      Advances in its capacity as Successor Servicer shall not be subject to such
      90-day transition period and the Master Servicer will make any Advance required
      to be made by the terminated Servicer on the Distribution Date on which the
      terminated Servicer was required to make such Advance. Effective on the date
      of
      such notice of termination, as compensation therefor, the Master Servicer shall
      be entitled to all fees, costs and expenses relating to the related Mortgage
      Loans that the terminated Servicer would have been entitled to if it had
      continued to act hereunder or under the Servicing Agreement, as applicable,
      provided, however, that the Master Servicer shall not be (i) liable for any
      acts
      or omissions of the terminated Servicer, (ii) obligated to make Advances if
      it
      is prohibited from doing so under applicable law or determines that such
      Advance, if made, would constitute a Nonrecoverable Advance, (iii) responsible
      for expenses of the terminated Servicer pursuant to Section 2.03 of this
      Agreement or pursuant to the Servicing Agreement or (iv) obligated to deposit
      losses on any Permitted Investment directed by the terminated Servicer.
      Notwithstanding the foregoing, the Master Servicer or the Trustee, as
      applicable, may, if it shall be unwilling to so act, or shall, if it is
      prohibited by applicable law from making Advances pursuant to Article VI of
      this
      Agreement or if it is otherwise unable to so act, appoint, or petition a court
      of competent jurisdiction to appoint, any established mortgage loan servicing
      institution the appointment of which does not adversely affect the then current
      rating of the Certificates by each Rating Agency as the successor to the
      terminated Servicer hereunder in the assumption of all or any part of the
      responsibilities, duties or liabilities of the terminated Servicer hereunder
      or
      under the Servicing Agreement. Any Successor Servicer shall (i) be an
      institution that is a Fannie Mae and Freddie Mac approved seller/servicer in
      good standing, that has a net worth of at least $15,000,000 and (ii) be willing
      to act as successor servicer of the related Mortgage Loans under this Agreement
      or under the Servicing Agreement, and shall have executed and delivered to
      the
      Depositor and the Trustee an agreement accepting such delegation and assignment,
      that contains an assumption by such Person of the rights, powers, duties,
      responsibilities, obligations and liabilities of the terminated Servicer (other
      than any liabilities of the terminated Servicer hereof incurred prior to
      termination of such Servicer under Section 8.01 of this Agreement or under
      the Servicing Agreement, as applicable), with like effect as if originally
      named
      as a party to this Agreement or under the Servicing Agreement, provided that
      each Rating Agency shall have acknowledged in writing that its rating of the
      Certificates in effect immediately prior to such assignment and delegation
      will
      not be qualified or reduced as a result of such assignment and delegation.
      If
      the Master Servicer assumes the duties and responsibilities of the terminated
      Servicer in accordance with this Section 8.02, the Master Servicer shall
      not resign as servicer until a Successor Servicer has been appointed and has
      accepted such appointment. Pending appointment of a successor to the terminated
      Servicer hereunder or under this Servicing Agreement, the Master Servicer,
      unless such party is prohibited by law from so acting, shall act in such
      capacity as hereinabove provided. In connection with such appointment and
      assumption, the Master Servicer may make such arrangements for the compensation
      of such successor out of payments on the Mortgage Loans or otherwise as it
      and
      such successor shall agree; provided that no such compensation shall be in
      excess of that permitted the terminated Servicer hereunder or under the
      Servicing Agreement. The Master Servicer and such successor shall take such
      action, consistent with this Agreement, as shall be necessary to effectuate
      any
      such succession. Neither the Master Servicer nor any other Successor Servicer
      shall be deemed to be in default hereunder by reason of any failure to make,
      or
      any delay in making, any distribution hereunder or any portion thereof or any
      failure to perform, or any delay in performing, any duties or responsibilities
      hereunder, in either case caused by the failure of the terminated Servicer
      to
      deliver or provide, or any delay in delivering or providing, any cash,
      information, documents or records to it.

     

    The
      costs
      and expenses of the Master Servicer in connection with the termination of the
      terminated Servicer, appointment of a Successor Servicer and, if applicable,
      any
      transfer of servicing, including, without limitation, all costs and expenses
      associated with the complete transfer of all servicing data and the completion,
      correction or manipulation of such servicing data as may be required by the
      Master Servicer to correct any errors or insufficiencies in the servicing data
      or otherwise to enable the Master Servicer or the Successor Servicer to service
      the related Mortgage Loans properly and effectively, to the extent not paid
      by
      the terminated Servicer as may be required herein shall be payable to the Master
      Servicer from the Distribution Account pursuant to Section 3.32. Any
      successor to the terminated Servicer as successor servicer under this Agreement
      shall give notice to the applicable Mortgagors of such change of servicer and
      shall, during the term of its service as successor servicer maintain in force
      the policy or policies that the terminated Servicer is required to maintain
      pursuant to Section 3.05 of this Agreement or pursuant to the Servicing
      Agreement.

     

    Section
      8.03  Notification
      to Certificateholders.

     

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

     

    (b)  Within
      sixty (60) days after the occurrence of any Servicer Default or Master Servicer
      Default, the Trustee shall transmit by mail to all Certificateholders notice
      of
      each such Servicer Default or Master Servicer Default hereunder known to the
      Trustee, unless such default shall have been cured or waived.

     

    Section
      8.04  Waiver
      of Servicer Defaults and Master Servicer Defaults.

     

    The
      Trustee may waive only by written notice from Certificateholders evidencing
      66-2/3% of the Voting Rights (unless such default materially and adversely
      affects all Certificateholders, in which case the written direction shall be
      from all of the Certificateholders) any default by a Servicer or the Master
      Servicer in the performance of its obligations hereunder or under the Servicing
      Agreement and its consequences. Upon any such waiver of a past default, such
      default shall cease to exist, and any Servicer Default or Master Servicer
      Default 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 thereon except to the extent
      expressly so waived in writing.

     

    ARTICLE
      IX

     

    CONCERNING
      THE TRUSTEE AND SECURITIES ADMINISTRATOR

     

    Section
      9.01  Duties
      of Trustee and Securities Administrator.

     

    (a)  The
      Trustee, prior to the occurrence of a Master Servicer Default, and after the
      curing or waiver of all Master Servicer Defaults, which may have occurred,
      and
      the Securities Administrator each undertake to perform such duties and only
      such
      duties as are specifically set forth in this Agreement as duties of the Trustee
      and the Securities Administrator, respectively. If a Master Servicer Default
      has
      occurred and has not been cured or waived, 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. Any
      permissive right of the Trustee enumerated in this Agreement shall not be
      construed as a duty.

     

    (b)  Each
      of
      the Trustee and the Securities Administrator, upon receipt of all resolutions,
      certificates, statements, opinions, reports, documents, orders or other
      instruments furnished to it, which are specifically required to be furnished
      pursuant to any provision of this Agreement, shall examine them to determine
      whether they conform to the requirements of this Agreement. If any such
      instrument is found not to conform to the requirements of this Agreement in
      a
      material manner, the Trustee or the Securities Administrator, as the case may
      be, shall take such action as it deems appropriate to have the instrument
      corrected, and if the instrument is not corrected to its satisfaction, the
      Securities Administrator will provide notice to the Trustee thereof and the
      Trustee will provide notice to the Certificateholders.

     

    (c)  The
      Trustee shall promptly remit to the related Servicer any complaint, claim,
      demand, notice or other document (collectively, the “Notices”) delivered to the
      Trustee as a consequence of the assignment of any Mortgage Loan hereunder and
      relating to the servicing of the Mortgage Loans; provided than any such notice
      (i) is delivered to the Trustee at its Corporate Trust Office, (ii) contains
      information sufficient to permit the Trustee to make a determination that the
      real property to which such document relates is a Mortgaged Property. The
      Trustee shall have no duty hereunder with respect to any Notice it may receive
      or which may be alleged to have been delivered to or served upon it unless
      such
      Notice is delivered to it or served upon it at its Corporate Trust Office and
      such Notice contains the information required pursuant to clause (ii) of the
      preceding sentence.

     

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

     

    (i)  Prior
      to
      the occurrence of a Master Servicer Default and after the curing or waiver
      of
      all Master Servicer Defaults which may have occurred with respect to the Trustee
      and at all times with respect to the Securities Administrator, the duties and
      obligations of the Trustee and the Securities Administrator shall be determined
      solely by the express provisions of this Agreement, neither the Trustee nor
      the
      Securities Administrator shall be liable except for the performance of its
      duties and obligations as are specifically set forth in this Agreement, no
      implied covenants or obligations shall be read into this Agreement against
      the
      Trustee or the Securities Administrator and, in the absence of bad faith on
      the
      part of the Trustee or the Securities Administrator, respectively, the Trustee
      or the Securities Administrator, respectively, may conclusively rely and shall
      be fully protected in acting or refraining from acting, as to the truth of
      the
      statements and the correctness of the opinions expressed therein, upon any
      certificates or opinions furnished to the Trustee or the Securities
      Administrator, respectively, that conform to the requirements of this
      Agreement;

     

    (ii)  Neither
      the Trustee nor the Securities Administrator shall be liable in its individual
      capacity for an error of judgment made in good faith by a Responsible Officer
      or
      Responsible Officers of the Trustee or an officer or officers of the Securities
      Administrator, respectively, unless it shall be proved that the Trustee or
      Securities Administrator, respectively, was negligent in ascertaining the
      pertinent facts;

     

    (iii)  Neither
      the Trustee nor the Securities Administrator shall be liable with respect to
      any
      action taken, suffered or omitted to be taken by it in good faith and believed
      by it to be authorized or within the rights or powers conferred upon it by
      this
      Agreement or in accordance with the directions of the Holders of Certificates
      evidencing not less than 25% of the aggregate Voting Rights of the Certificates,
      if such action or non-action relates to the time, method and place of conducting
      any proceeding for any remedy available to the Trustee or the Securities
      Administrator or exercising any trust or other power conferred upon the Trustee
      or the Securities Administrator under this Agreement;

     

    (iv)  The
      Trustee shall not be required to take notice or be deemed to have notice or
      knowledge of any default or Master Servicer Default unless a Responsible Officer
      of the Trustee shall have actual knowledge thereof. In the absence of such
      notice, the Trustee may conclusively assume there is no such default or Master
      Servicer Default;

     

    (v)  The
      Trustee shall not in any way be liable by reason of any insufficiency in any
      Account held by or in the name of Trustee unless it is determined by a court
      of
      competent jurisdiction that the Trustee’s gross negligence or willful misconduct
      was the primary cause of such insufficiency (except to the extent that the
      Trustee is obligor and has defaulted thereon);

     

    (vi)  Anything
      in this Agreement to the contrary notwithstanding, in no event shall the Trustee
      or the Securities Administrator be liable for special, indirect, punitive or
      consequential loss or damage of any kind whatsoever (including but not limited
      to lost profits), even if the Trustee or the Securities Administrator has been
      advised of the likelihood of such loss or damage and regardless of the form
      of
      action and whether or not any such damages were foreseeable or contemplated;
      and

     

    (vii)  None
      of
      the Sponsor, the Depositor or the Trustee shall be responsible for the acts
      or
      omissions of the other, it being understood that this Agreement shall not be
      construed to render them partners, joint venturers or agents of one
      another.

     

    Neither
      the Trustee nor the Securities Administrator shall be required to expend or
      risk
      its own funds or otherwise incur liability, financial or otherwise, 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 or the Securities Administrator to
      perform, or be responsible for the manner of performance of, any of the
      obligations of the terminated Servicer hereunder.

     

    (e)  All
      funds
      received by the Securities Administrator and required to be deposited in the
      Distribution Account pursuant to this Agreement will be promptly so deposited
      by
      the Securities Administrator.

     

    Section
      9.02  Certain
      Matters Affecting the Trustee and Securities Administrator.

     

    (a)  Except
      as
      otherwise provided in Section 9.01:

     

    (i)  The
      Trustee and the Securities Administrator may conclusively rely and shall be
      fully protected in acting or refraining from acting in reliance on any
      resolution or certificate of the Sponsor, the Depositor or the Servicers, any
      certificates of auditors or any other certificate, statement, instrument,
      opinion, report, notice, request, consent, order, appraisal, bond or other
      paper
      or document believed by it to be genuine and to have been signed or presented
      by
      the proper party or parties;

     

    (ii)  The
      Trustee and the Securities Administrator may consult with counsel and any advice
      of such counsel or any Opinion of Counsel shall be full and complete
      authorization and protection with respect to any action taken or suffered or
      omitted by it hereunder in good faith and in accordance with such advice or
      Opinion of Counsel:

     

    (iii)  Neither
      the Trustee nor the Securities Administrator shall be under any obligation
      to
      exercise any of the trusts or powers vested in it by this Agreement, other
      than
      its obligation to give notices pursuant to this Agreement, or to institute,
      conduct or defend any litigation hereunder or in relation hereto at the request,
      order or direction of any of the Certificateholders pursuant to the provisions
      of this Agreement, unless such Certificateholders shall have offered to the
      Trustee or the Securities Administrator, as the case may be, reasonable security
      or indemnity satisfactory to it against the costs, expenses and liabilities
      which may be incurred therein or thereby. Nothing contained herein shall,
      however, relieve the Trustee of the obligation, upon the occurrence of a Master
      Servicer Default of which a Responsible Officer of the Trustee has actual
      knowledge (which has not been cured or waived), to exercise such of the rights
      and powers vested in it by this Agreement, and to use the same degree of care
      and skill in their exercise, as a prudent person would exercise or use under
      the
      circumstances in the conduct of his own affairs;

     

    (iv)  Neither
      the Trustee nor the Securities Administrator shall be liable in its individual
      capacity 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 Default hereunder and after the curing
      or
      waiver of all Master Servicer Defaults which may have occurred with respect
      to
      the Trustee and at all times with respect to the Securities Administrator,
      neither the Trustee nor the Securities Administrator shall be bound to make
      any
      investigation into the facts or matters stated in any resolution, certificate,
      statement, instrument, opinion, report, notice, request, consent, order,
      approval, bond or other paper or document, unless requested in writing to do
      so
      by Holders of Certificates evidencing not less than twenty-five percent (25%)
      of
      the aggregate Voting Rights of the Certificates and provided that the payment
      within a reasonable time to the Trustee or the Securities Administrator of
      the
      costs, expenses or liabilities likely to be incurred by it in the making of
      such
      investigation is, in the opinion of the Trustee or the Securities Administrator,
      as applicable, not reasonably assured to the Trustee or the Securities
      Administrator, as applicable, by the security afforded to it by the terms of
      this Agreement, the Trustee or the Securities Administrator, as applicable,
      may
      require reasonable indemnity against such expense or liability as a condition
      to
      taking any such action. The reasonable expense of every such examination shall
      be paid by the Certificateholders requesting the investigation;

     

    (vi)  The
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or through Affiliates, nominees, custodians, agents
      or
      attorneys. The Trustee shall not be liable or responsible for the misconduct
      or
      negligence of any of the Trustee’s agents or attorneys or paying agent appointed
      hereunder by the Trustee with due care;

     

    (vii)  Should
      the Trustee deem the nature of any action required on its part to be unclear,
      the Trustee may require prior to such action that it be provided by the
      Depositor with reasonable further instructions; 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 accountable for other than
      its
      gross negligence or willful misconduct in the performance of any such
      act;

     

    (viii)  The
      Trustee shall not be required to give any bond or surety with respect to the
      execution of the trust created hereby or the powers granted
      hereunder;

     

    (ix)  The
      Trustee shall not have any duty to conduct any affirmative investigation as
      to
      the occurrence of any condition requiring the repurchase of any Mortgage Loan
      by
      any Person pursuant to this Agreement, or the eligibility of any Mortgage Loan
      for purposes of this Agreement;

     

    (x)  The
      Trustee shall have no duty hereunder with respect to any complaint, claim,
      demand, notice or other document it may receive or which may be alleged to
      have
      been delivered or served upon it by the parties as a consequence of the
      assignment of any Mortgage Loan hereunder; provided, however that the Trustee
      shall promptly remit to the Servicer upon receipt any such complaint, claim,
      demand, notice or other document (i) which is delivered to the Trustee at is
      Corporate Trust Office, (ii) of which a Responsible Officer has actual knowledge
      and (iii) which contains information sufficient to permit the Trustee to make
      a
      determination that the real property to which such document relates is a
      Mortgaged Property; and

     

    (xi)  The
      Trustee is hereby directed by the Depositor to execute the Swap Agreement on
      behalf of the Supplemental Interest Trust in the form presented to it by the
      Depositor and shall have no responsibility for the contents of the Swap
      Agreement, including, without limitation, the representations and warranties
      contained therein. Any funds payable by the Trustee under the Swap Agreement
      at
      closing shall be paid by the Depositor. Notwithstanding anything to the contrary
      contained herein or in the Swap Agreement, the Trustee shall not be required
      to
      make any payments to the Swap Provider.

     

    (xii)  None
      of
      the Securities Administrator, the Master Servicer, the Servicer, the Sponsor,
      the Depositor, the Custodian or the Trustee shall be responsible for the acts
      or
      omissions of the others or of the Swap Provider, it being understood that this
      Agreement shall not be construed to render them partners, joint venturers or
      agents of one another.

     

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

     

    The
      recitals contained herein and in the Certificates (other than the signature
      of
      the Securities Administrator, the authentication of the Securities Administrator
      on the Certificates, the acknowledgements of the Trustee contained in Article
      II
      and the representations and warranties of the Trustee in Section 9.12)
      shall be taken as the statements of the Depositor, and neither the Trustee
      nor
      the Securities Administrator assumes any responsibility for their correctness.
      Neither the Trustee nor the Securities Administrator makes any representations
      or warranties as to the validity or sufficiency (other than as specifically
      set
      forth in Section 9.12) of the Swap Agreement, the Certificates (other than
      the signature of the Securities Administrator and authentication of the
      Securities Administrator on the Certificates) or of any Mortgage Loan except
      as
      expressly provided in Section 2.02. The Securities Administrator’s signature and
      authentication (or authentication of its agent) on the Certificates shall be
      solely in its capacity as Securities Administrator and shall not constitute
      the
      Certificates an obligation of the Securities Administrator in any other
      capacity. The Trustee and the Securities Administrator shall not be accountable
      for the use or application by the Depositor of any of the Certificates or of
      the
      proceeds of such Certificates, or for the use or application of any funds paid
      to the Depositor with respect to the Mortgage Loans.

     

    Section
      9.04  Trustee
      and Securities Administrator May Own Certificates.

     

    Each
      of
      the Trustee and the Securities Administrator in its individual capacity or
      in
      any other capacity other than as Trustee or Securities Administrator hereunder
      may become the owner or pledgee of any Certificates and may transact business
      with other interested parties and their Affiliates with the same rights it
      would
      have if it were not the Trustee or the Securities Administrator.

     

    Section
      9.05  Fees
      and Expenses of Trustee and Securities Administrator.

     

    The
      fees
      of the Trustee and the Securities Administrator hereunder shall be paid in
      accordance with a side letter agreement with the Master Servicer and at the
      sole
      expense of the Master Servicer. In addition, the Trustee, the Securities
      Administrator, the Custodian and any director, officer, employee or agent of
      the
      Trustee, the Securities Administrator and the Custodian shall be indemnified
      by
      the Trust Fund and held harmless against any loss, liability or expense
      (including reasonable attorney’s fees and expenses) incurred by the Trustee, the
      Custodian or the Securities Administrator including any pending or threatened
      claim or legal action arising out of or in connection with the acceptance or
      administration of its respective obligations and duties under this Agreement,
      including the Swap Agreement and any and all other agreements related hereto,
      other than any loss, liability or expense (i) for which the Trustee is
      indemnified by the Master Servicer or the related Servicer, (ii) that
      constitutes a specific liability of the Trustee or the Securities Administrator
      pursuant to this Agreement or (iii) any loss, liability or expense incurred
      by
      reason of willful misfeasance, bad faith or negligence in the performance of
      duties hereunder by the Trustee or the Securities Administrator or by reason
      of
      reckless disregard of obligations and duties hereunder. In no event shall the
      Trustee or the Securities Administrator be liable for special, indirect or
      consequential loss or damage of any kind whatsoever (including but not limited
      to lost profits), even if it has been advised of the likelihood of such loss
      or
      damage and regardless of the form of action. The Master Servicer agrees to
      indemnify the Trustee, from, and hold the Trustee harmless against, any loss,
      liability or expense (including reasonable attorney’s fees and expenses)
      incurred by the Trustee by reason of the Master Servicer’s willful misfeasance,
      bad faith or gross negligence in the performance of its duties under this
      Agreement or by reason of the Master Servicer’s reckless disregard of its
      obligations and duties under this Agreement. The indemnities in this
      Section 9.05 shall survive the termination or discharge of this Agreement
      and the resignation or removal of the Master Servicer, the Trustee, the
      Securities Administrator or the Custodian. Any payment hereunder made by the
      Master Servicer to the Trustee shall be from the Master Servicer’s own funds,
      without reimbursement from any REMIC therefor.

     

    Section
      9.06  Eligibility
      Requirements for Trustee and Securities Administrator.

     

    The
      Trustee and the Securities Administrator shall at all times be a corporation
      or
      an association (other than the Depositor, the Sponsor or any Affiliate of the
      foregoing) organized and doing business under the laws of any state or the
      United States of America, authorized under such laws to exercise corporate
      trust
      powers, having a combined capital and surplus of at least $50,000,000 (or a
      member of a bank holding company whose capital and surplus is at least
      $50,000,000) and subject to supervision or examination by federal or state
      authority. If such corporation or association publishes reports of conditions
      at
      least annually, pursuant to law or to the requirements of the aforesaid
      supervising or examining authority, then for the purposes of this
      Section the combined capital and surplus of such corporation or association
      shall be deemed to be its combined capital and surplus as set forth in its
      most
      recent report of conditions so published. In case at any time the Trustee or
      the
      Securities Administrator, as applicable, shall cease to be eligible in
      accordance with the provisions of this Section, the Trustee or the Securities
      Administrator, as applicable, shall resign immediately in the manner and with
      the effect specified in Section 9.07.

     

    Additionally,
      the Securities Administrator (i) may not be an originator, Master Servicer,
      any
      Servicer, Depositor or an affiliate of the Depositor unless the Securities
      Administrator is in an institutional trust department, (ii) must be authorized
      to exercise corporate trust powers under the laws of its jurisdiction of
      organization, and (iii) must be rated at least "A-1" by S&P (or such rating
      acceptable to Fitch pursuant to a rating confirmation). Wells Fargo Bank, N.A.
      shall act as Securities Administrator for so long as it is Master Servicer
      under
      this Agreement.

     

    Section
      9.07  Resignation
      and Removal of Trustee and Securities Administrator.

     

    The
      Trustee and the Securities Administrator may at any time resign (including,
      without limitation, and in the case of the Securities Administrator, upon the
      resignation or removal of the Master Servicer) and be discharged from the trust
      hereby created by giving written notice thereof to the Depositor, to the Master
      Servicer, to the Securities Administrator (or the Trustee, if the Securities
      Administrator resigns) and to the Certificateholders. Upon receiving such notice
      of resignation, the Depositor shall promptly appoint a successor trustee or
      successor securities administrator by written instrument, in duplicate, which
      instrument shall be delivered to the resigning Trustee or Securities
      Administrator, as applicable, and to the successor trustee or successor
      securities administrator, as applicable. A copy of such instrument shall be
      delivered to the Certificateholders, the Trustee, the Securities Administrator
      and the Master Servicer by the Depositor. If no successor trustee or successor
      securities administrator shall have been so appointed and have accepted
      appointment within thirty (30) days after the giving of such notice of
      resignation, the resigning Trustee or Securities Administrator, as the case
      may
      be, may, at the expense of the Trust Fund, petition any court of competent
      jurisdiction for the appointment of a successor trustee or successor securities
      administrator, as applicable.

     

    If
      at any
      time the Trustee or the Securities Administrator shall cease to be eligible
      in
      accordance with the provisions of Section 9.06 and shall fail to resign
      after written request therefor by the Depositor, or if at any time the Trustee
      or the Securities Administrator shall become incapable of acting, or shall
      be
      adjudged bankrupt or insolvent, or a receiver of the Trustee or the Securities
      Administrator or of its property shall be appointed, or any public officer
      shall
      take charge or control of the Trustee or the Securities Administrator or of
      its
      property or affairs for the purpose of rehabilitation, conservation or
      liquidation, then the Depositor may remove the Trustee or the Securities
      Administrator, as applicable and appoint a successor trustee or successor
      securities administrator, as applicable, by written instrument, in duplicate,
      which instrument shall be delivered to the Trustee or the Securities
      Administrator so removed and to the successor trustee or successor securities
      administrator. A copy of such instrument shall be delivered to the
      Certificateholders, the Trustee, the Securities Administrator and the Master
      Servicer by the Depositor.

     

    The
      Holders of Certificates entitled to at least fifty-one percent (51%) of the
      Voting Rights may at any time remove the Trustee or the Securities Administrator
      and appoint a successor trustee or successor securities administrator by written
      instrument or instruments, in triplicate, signed by such Holders or their
      attorneys-in-fact duly authorized, one complete set of which instruments shall
      be delivered to the Depositor, one complete set to the Trustee or the Securities
      Administrator so removed and one complete set to the successor so appointed.
      A
      copy of such instrument shall be delivered to the Certificateholders, the
      Trustee (in the case of the removal of the Securities Administrator), the
      Securities Administrator (in the case of the removal of the Trustee) and the
      Master Servicer by the Depositor.

     

    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor trustee or successor securities administrator
      pursuant to any of the provisions of this Section shall not become
      effective until acceptance of appointment by the successor trustee or successor
      securities administrator, as applicable, as provided in
      Section 9.08.

     

    Notwithstanding
      anything to the contrary contained herein, the Master Servicer and the
      Securities Administrator shall at all times be the same Person.

     

    Section
      9.08  Successor
      Trustee or Securities Administrator. 

     

    Any
      successor trustee or successor securities administrator appointed as provided
      in
      Section 9.07 hereof shall execute, acknowledge and deliver to the Depositor
      and to its predecessor trustee or predecessor securities administrator
      instrument accepting such appointment hereunder and thereupon the resignation
      or
      removal of the predecessor trustee or predecessor securities administrator
      shall
      become effective and such successor trustee or successor securities
      administrator, without any further act, deed or conveyance, shall become fully
      vested with all the rights, powers, duties and obligations of its predecessor
      hereunder, with the like effect as if originally named as trustee or securities
      administrator herein. The predecessor trustee or predecessor securities
      administrator shall deliver to the successor trustee or successor securities
      administrator all Mortgage Loan Documents and related documents and statements
      to the extent held by it hereunder, as well as all monies, held by it hereunder,
      and the Depositor and the predecessor trustee or predecessor securities
      administrator shall execute and deliver such instruments and do such other
      things as may reasonably be required for more fully and certainly vesting and
      confirming in the successor trustee or successor securities administrator all
      such rights, powers, duties and obligations.

     

    No
      successor trustee or successor securities administrator shall accept appointment
      as provided in this Section 9.08 unless at the time of such acceptance such
      successor trustee or successor securities administrator shall be eligible under
      the provisions of Section 9.07 hereof and its appointment shall not
      adversely affect the then current rating of the Certificates.

     

    Upon
      acceptance of appointment by a successor trustee or successor securities
      administrator as provided in this Section 9.08, the successor trustee or
      successor securities administrator shall mail notice of the succession of such
      trustee or securities administrator hereunder to all Holders of Certificates.
      If
      the successor trustee or successor securities administrator fails to mail such
      notice within ten days after acceptance of appointment, the Depositor shall
      cause such notice to be mailed at the expense of the Trust Fund.

     

    Section
      9.09  Merger
      or Consolidation of Trustee or Securities Administrator.

     

    Any
      corporation, state bank or national banking association into which the Trustee
      or Securities Administrator may be merged or converted or with which it may
      be
      consolidated or any corporation, state bank or national banking association
      resulting from any merger, conversion or consolidation to which the Trustee
      or
      the Securities Administrator shall be a party, or any corporation, state bank
      or
      national banking association succeeding to substantially all of the corporate
      trust business of the Trustee or Securities Administrator or shall be the
      successor of the Trustee or Securities Administrator hereunder, provided that
      such corporation shall be eligible under the provisions of Section 9.06
      without the execution or filing of any paper or further act on the part of
      any
      of the parties hereto, anything herein to the contrary
      notwithstanding.

     

    Section
      9.10  Appointment
      of Co-Trustee or Separate Trustee.

     

    Notwithstanding
      any other provisions hereof, at any time, for the purpose of meeting any legal
      requirements of any jurisdiction in which any part of REMIC I or any property
      securing the same may at the time be located, the Trustee shall have the power
      and shall execute and deliver all instruments to appoint one or more Persons
      approved by the Trustee to act as co-trustee or co-trustees, jointly with the
      Trustee, or separate trustee or separate trustees, of all or any part of REMIC
      I, and to vest in such Person or Persons, in such capacity, and for the benefit
      of the Holders of the Certificates, such title to REMIC I, or any part thereof,
      and, subject to the other provisions of this Section 9.10, such powers,
      duties, obligations, rights and trusts as the Trustee may consider necessary
      or
      desirable. No co-trustee or separate trustee hereunder shall be required to
      meet
      the terms of eligibility as a successor trustee under Section 9.06
      hereunder and no notice to Holders of Certificates of the appointment of
      co-trustee(s) or separate trustee(s) shall be required under Section 9.08
      hereof.

     

    In
      the
      case of any appointment of a co-trustee or separate trustee pursuant to this
      Section 9.10 all rights, powers, duties and obligations conferred or
      imposed upon the Trustee shall be conferred or imposed upon and exercised or
      performed by the Trustee and such separate trustee or co-trustee jointly, except
      to the extent that under any law of any jurisdiction in which any particular
      act
      or acts are to be performed by the Trustee (whether as Trustee hereunder or
      as
      successor to a defaulting Master Servicer hereunder), the Trustee shall be
      incompetent or unqualified to perform such act or acts, in which event such
      rights, powers, duties and obligations (including the holding of title to REMIC
      I or any portion thereof in any such jurisdiction) shall be exercised and
      performed by such separate trustee or co-trustee at the direction of the
      Trustee.

     

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

     

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

     

    Section
      9.11  Appointment
      of Office or Agency.

     

    The
      Certificates may be surrendered for registration of transfer or exchange at
      the
      Securities Administrator’s office initially located at Sixth Street and
      Marquette Avenue, Minneapolis, Minnesota 55479, and presented for final
      distribution at the Corporate Trust Office of the Securities Administrator
      where
      notices and demands to or upon the Securities Administrator in respect of the
      Certificates and this Agreement may be served.

     

    Section
      9.12  Representations
      and Warranties.

     

    The
      Trustee hereby represents and warrants to the Master Servicer, the Securities
      Administrator, the related Servicer and the Depositor as applicable, as of
      the
      Closing Date, that:

     

    (i)  It
      is a
      national banking association duly organized, validly existing and in good
      standing under the laws of the United States of America.

     

    (ii)  The
      execution and delivery of this Agreement by it, and the performance and
      compliance with the terms of this Agreement by it, will not violate its articles
      of association or bylaws or constitute a default (or an event which, with notice
      or lapse of time, or both, would constitute a default) under, or result in
      the
      breach of, any material agreement or other instrument to which it is a party
      or
      which is applicable to it or any of its assets.

     

    (iii)  It
      has
      the full power and authority to enter into and consummate all transactions
      contemplated by this Agreement, has duly authorized the execution, delivery
      and
      performance of this Agreement, and has duly executed and delivered this
      Agreement.

     

    (iv)  This
      Agreement, assuming due authorization, execution and delivery by the other
      parties hereto, constitutes a valid, legal and binding obligation of it,
      enforceable against it in accordance with the terms hereof, subject to (A)
      applicable bankruptcy, insolvency, receivership, reorganization, moratorium
      and
      other laws affecting the enforcement of creditors’ rights generally, and (B)
      general principles of equity, regardless of whether such enforcement is
      considered in a proceeding in equity or at law.

     

    (v)  It
      is not
      in violation of, and its execution and delivery of this Agreement and its
      performance and compliance with the terms of this Agreement will not constitute
      a violation of, any law, any order or decree of any court or arbiter, or any
      order, regulation or demand of any federal, state or local governmental or
      regulatory authority, which violation, in its good faith and reasonable
      judgment, is likely to affect materially and adversely either the ability of
      it
      to perform its obligations under this Agreement or its financial
      condition.

     

    No
      litigation is pending or, to the best of its knowledge, threatened against
      it,
      which would prohibit it from entering into this Agreement or, in its good faith
      reasonable judgment, is likely to materially and adversely affect either the
      ability of it to perform its obligations under this Agreement or its financial
      condition.

     

    Section
      9.13  Tax
      Matters.

     

    It
      is
      intended that the Trust Fund shall constitute, and that the affairs of the
      Trust
      Fund shall be conducted so that each REMIC formed hereunder qualifies as, a
      “real estate mortgage investment conduit” as defined in and in accordance with
      the REMIC Provisions. In furtherance of such intention, the Securities
      Administrator covenants and agrees that it shall act as agent (and the
      Securities Administrator is hereby appointed to act as agent) on behalf of
      the
      Trust Fund. The Securities Administrator, as agent on behalf of the Trust Fund,
      shall do or refrain from doing, as applicable, the following: (a) the Securities
      Administrator shall prepare and file, or cause to be prepared and filed, in
      a
      timely manner, U.S. Real Estate Mortgage Investment Conduit Income Tax Returns
      (Form 1066 or any successor form adopted by the Internal Revenue Service) and
      prepare and file or cause to be prepared and filed with the Internal Revenue
      Service and applicable state or local tax authorities income tax or information
      returns for each taxable year with respect to each such REMIC containing such
      information and at the times and in the manner as may be required by the Code
      or
      state or local tax laws, regulations, or rules, and furnish or cause to be
      furnished to Certificateholders the schedules, statements or information at
      such
      times and in such manner as may be required thereby; (b) the Securities
      Administrator shall apply for an employer identification number with the
      Internal Revenue Service via a Form SS-4 or other comparable method for each
      REMIC that is or becomes a taxable entity, and within thirty days of the Closing
      Date, furnish or cause to be furnished to the Internal Revenue Service, on
      Forms
      8811 or as otherwise may be required by the Code, the name, title, address,
      and
      telephone number of the person that the holders of the Certificates may contact
      for tax information relating thereto, together with such additional information
      as may be required by such Form, and update such information at the time or
      times in the manner required by the Code for the Trust Fund; (c) the Securities
      Administrator shall make or cause to be made elections, on behalf of each REMIC
      formed hereunder to be treated as a REMIC on the federal tax return of such
      REMIC for its first taxable year (and, if necessary, under applicable state
      law); (d) the Securities Administrator shall prepare and forward, or cause
      to be
      prepared and forwarded, to the Certificateholders and to the Internal Revenue
      Service and, if necessary, state tax authorities, all information returns and
      reports as and when required to be provided to them in accordance with the
      REMIC
      Provisions, including without limitation, the calculation of any original issue
      discount using the Prepayment Assumption; (e) the Securities Administrator
      shall
      provide information necessary for the computation of tax imposed on the transfer
      of a Residual Certificate to a Person that is not a Permitted Transferee, or
      an
      agent (including a broker, nominee or other middleman) of a Person that is
      not a
      Permitted Transferee, or a pass-through entity in which a Person that is not
      a
      Permitted Transferee is the record holder of an interest (the reasonable cost
      of
      computing and furnishing such information may be charged to the Person liable
      for such tax); (f) the Securities Administrator shall, to the extent under
      its
      control, conduct the affairs of the Trust Fund at all times that any
      Certificates are outstanding so as to maintain the status of each REMIC formed
      hereunder as a REMIC under the REMIC Provisions; (g) the Securities
      Administrator shall not knowingly or intentionally take any action or omit
      to
      take any action that would cause the termination of the REMIC status of any
      REMIC formed hereunder; (h) the Securities Administrator shall pay, from the
      sources specified in the last paragraph of this Section 9.12, the amount of
      any federal, state and local taxes, including prohibited transaction taxes
      as
      described below, imposed on any REMIC formed hereunder prior to the termination
      of the Trust Fund when and as the same shall be due and payable (but such
      obligation shall not prevent the Securities Administrator or any other
      appropriate Person from contesting any such tax in appropriate proceedings
      and
      shall not prevent the Securities Administrator from withholding payment of
      such
      tax, if permitted by law, pending the outcome of such proceedings); (i) the
      Trustee shall sign or cause to be signed federal, state or local income tax
      or
      information returns or any other document prepared by the Securities
      Administrator pursuant to this Section 9.13 requiring a signature thereon
      by the Trustee; (j) the Securities Administrator shall maintain records relating
      to each REMIC formed hereunder including but not limited to the income,
      expenses, assets and liabilities of each such REMIC and adjusted basis of the
      Trust Fund property determined at such intervals as may be required by the
      Code,
      as may be necessary to prepare the foregoing returns, schedules, statements
      or
      information; (k) the Securities Administrator shall, for federal income tax
      purposes, maintain books and records with respect to the REMICs on a calendar
      year and on an accrual basis; (l) the Securities Administrator shall not enter
      into any arrangement not otherwise provided for in this Agreement by which
      the
      REMICs will receive a fee or other compensation for services nor permit the
      REMICs 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; and (m) as and when necessary
      and appropriate, the Securities Administrator shall represent the Trust Fund
      in
      any administrative or judicial proceedings relating to an examination or audit
      by any governmental taxing authority, request an administrative adjustment
      as to
      any taxable year of any REMIC formed hereunder, enter into settlement agreements
      with any governmental taxing agency, extend any statute of limitations relating
      to any tax item of the Trust Fund, and otherwise act on behalf of each REMIC
      formed hereunder in relation to any tax matter involving any such
      REMIC.

     

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

     

    In
      the
      event that any tax is imposed on “prohibited transactions” of any REMIC as
      defined in Section 860F(a)(2) of the Code, on the “net income from
      foreclosure property” of the Trust Fund as defined in Section 860G(c) of
      the Code, on any contribution to any REMIC after the startup day pursuant to
      Section 860G(d) of the Code, or any other tax is imposed, including,
      without limitation, any federal, state or local tax or minimum tax imposed
      upon
      any of REMIC, and is not paid as otherwise provided for herein, such tax shall
      be paid by (i) the Securities Administrator, if any such other tax arises out
      of
      or results from a breach by the Securities Administrator of any of its
      obligations under this Section, (ii) any party hereto (other than the Securities
      Administrator) to the extent any such other tax arises out of or results from
      a
      breach by such other party of any of its obligations under this Agreement or
      (iii) in all other cases, or in the event that any liable party hereto fails
      to
      honor its obligations under the preceding clauses (i) or (ii), any such tax
      with
      respect to REMIC I will be paid first with amounts otherwise to be distributed
      to the Class R Certificates and second with amounts otherwise to be distributed
      to all other Certificateholders in the following order of priority: first,
      to
      the Class M-5 Certificates, second, to the Class M-4 Certificates, third, to
      the
      Class M-3 Certificates, fourth, to the Class M-2 Certificates, fifth, to the
      Class M-1 Certificates and sixth, to the Senior Certificates (pro rata based
      on
      the amounts to be distributed). Notwithstanding anything to the contrary
      contained herein, to the extent that such tax is payable by the Holder of any
      Certificates, the Securities Administrator is hereby authorized to retain on
      any
      Distribution Date, from the Holders of the related Residual Certificates (and,
      if necessary, second, from the Holders of the other related Certificates in
      the
      priority specified in the preceding sentence), funds otherwise distributable
      to
      such Holders in an amount sufficient to pay such tax. The Securities
      Administrator shall include in its monthly report to Certificateholders
      distributions to such parties taking into account the priorities described
      in
      the second preceding sentence. The Securities Administrator agrees to promptly
      notify in writing the party liable for any such tax of the amount thereof and
      the due date for the payment thereof. Notwithstanding the foregoing, however,
      in
      no event shall the Securities Administrator have any liability (1) for any
      action or omission that is taken in accordance with and in compliance with
      the
      express terms of, or which is expressly permitted by the terms of this
      Agreement, (2) for any losses other than arising out of a grossly negligent
      performance by the Securities Administrator of its duties and obligations set
      forth herein, and (3) for any special or consequential damages to
      Certificateholders (in addition to payment of principal and interest on the
      Certificates).

     

    ARTICLE
      X

     

    TERMINATION

     

    Section
      10.01  Termination
      Upon Liquidation or Repurchase of all Mortgage Loans.

     

    Subject
      to Section 10.03, the obligations and responsibilities of the Depositor,
      the Sponsor, the Securities Administrator, the Master Servicer and the Trustee
      created hereby with respect to the Trust Fund shall terminate (other than the
      obligations of the Master Servicer to the Trustee pursuant to Section 9.05
      and of the Securities Administrator to make payments in respect of the REMIC
      I
      Regular Interests, the REMIC II Regular Interests, REMIC III Regular Interests
      or the Certificates as hereinafter set forth) upon the earlier of (a) the Master
      Servicer’s exercise of its optional right to purchase the Mortgage Loans and
      related REO Properties (the “Clean-up Call”) and (b) the later of (i) the
      maturity or other liquidation (or any Advance with respect thereto) of the
      last
      Mortgage Loan remaining in the Trust Fund and the disposition of all related
      REO
      Property and (ii) the distribution to the Certificateholders of all amounts
      required to be distributed to them pursuant to this Agreement. In no event
      shall
      the trusts created hereby continue beyond the earlier of (i) the expiration
      of
      twenty-one (21) years from the death of the last survivor of the descendants
      of
      Joseph P. Kennedy, the late Ambassador of the United States to the Court of
      St.
      James, living on the date hereof and (ii) the Latest Possible Maturity
      Date.

     

    The
      Cleanup Call shall be exercisable at a price (the “Termination Price”) equal to
      the sum of (i) 100% of the Stated Principal Balance of the Mortgage Loans (ii)
      accrued interest thereon at the applicable Mortgage Rate to, but not including,
      the first day of the month of such purchase, (iii) the appraised value of any
      related REO Property (up to the Stated Principal Balance of the related Mortgage
      Loan), such appraisal to be conducted by an appraiser selected in good faith
      by
      the Master Servicer, (iv) unreimbursed out-of-pocket costs of the Securities
      Administrator, the Master Servicer, the Servicers or the Trustee, including
      unreimbursed servicing advances and the principal portion of any unreimbursed
      Advances, made on the related Mortgage Loans prior to the exercise of such
      repurchase right; (v) any Swap Termination Payment payable to the Swap Provider
      which remains unpaid or which is due to the Cleanup Call and (vi) any other
      amounts due and owing to the Trustee, the Securities Administrator, the Master
      Servicer and the Custodian payable pursuant to this Agreement or the Custodial
      Agreement.

     

    The
      right
      to exercise the Cleanup Call pursuant to the preceding paragraph shall be
      exercisable if the Stated Principal Balance of all of the Mortgage Loans at
      the
      time of any such repurchase, is less than or equal to ten percent (10%) of
      the
      aggregate Cut-off Date Principal Balance of the Mortgage Loans.

     

    Section
      10.02  Final
      Distribution on the Certificates.

     

    If
      on any
      Determination Date, (i) the Securities Administrator determines based on the
      reports delivered by the Master Servicer under this Agreement that there are
      no
      Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
      than the funds in the Distribution Account, the Securities Administrator shall
      notify the Trustee and send a final distribution notice promptly to each related
      Certificateholder or (ii) the Securities Administrator determines that a Class
      of Certificates shall be retired after a final distribution on such Class,
      the
      Securities Administrator shall notify the Trustee and the Certificateholders
      within five (5) Business Days after such Determination Date that the final
      distribution in retirement of such Class of Certificates is scheduled to be
      made
      on the immediately following Distribution Date. Any final distribution made
      pursuant to the immediately preceding sentence will be made only upon
      presentation and surrender of the Certificates at the office of the Securities
      Administrator set forth herein. If the Master Servicer elects to exercise the
      Cleanup Call pursuant to Section 10.01, at least twenty (20) days prior to
      the date notice is to be mailed to the related Certificateholders, the Master
      Servicer shall notify the Securities Administrator and the Trustee of the date
      the Master Servicer intends to exercise the Cleanup Call. The Master Servicer
      shall remit the Termination Price to the Securities Administrator on behalf
      of
      the related REMIC on the Business Day prior to the Distribution Date for such
      Optional Termination by the Master Servicer.

     

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

     

    In
      the
      event such notice is given, the Master Servicer shall deposit in the
      Distribution Account on the Business Day prior to the applicable Distribution
      Date in an amount equal to the final distribution in respect of the
      Certificates. Upon certification to the Trustee by the Securities Administrator
      of the making of such final deposit, the Trustee shall promptly release or
      cause
      to be released to the Master Servicer the Mortgage Files for the remaining
      Mortgage Loans in the Trust Fund, and the Trustee shall execute all assignments,
      endorsements and other instruments delivered to it and necessary to effectuate
      such transfer.

     

    Upon
      presentation and surrender of the Certificates, the Securities Administrator
      shall cause to be distributed to Certificateholders of each such Class the
      amounts allocable to such Certificates held in the Distribution Account in
      the
      order and priority set forth in Section 5.04 hereof on the final
      Distribution Date and in proportion to their respective Percentage
      Interests.

     

    In
      the
      event that any Certificateholders shall not surrender Certificates for
      cancellation within six (6) months after the date specified in the above
      mentioned written notice, the Securities Administrator shall give a second
      written notice to the remaining Certificateholders to surrender their
      Certificates for cancellation and receive the final distribution with respect
      thereto. If within six (6) months after the second notice all the Certificates
      shall not have been surrendered for cancellation, the Securities Administrator
      may take appropriate steps, or may appoint an agent to take appropriate steps,
      to contact the remaining Certificateholders concerning surrender of their
      Certificates, and the cost thereof shall be paid out of the funds and other
      assets that remain a part of the Trust Fund. If within two (2) years after
      the
      second notice all Certificates shall not have been surrendered for cancellation,
      the Residual Certificateholders shall be entitled to all unclaimed funds and
      other assets of the Trust Fund that remain subject hereto and the Securities
      Administrator shall release such funds upon written direction.

     

    Section
      10.03  Additional
      Termination Requirements.

     

    In
      the
      event of (i) the exercise by the Master Servicer of the Cleanup Call pursuant
      to
      the terms of this Agreement, or (ii) the final payment on or other liquidation
      of the last Mortgage Loan or related REO Property in REMIC I pursuant to
      Section 10.01, the following additional requirements, unless the Trustee
      has been supplied with an Opinion of Counsel, at the expense of the Master
      Servicer (in the case of the exercise of the Cleanup Call) or the Depositor,
      to
      the effect that the failure of the Trust Fund to comply with the requirements
      of
      this Section 10.03 will not (i) result in the imposition of taxes on
“prohibited transactions” of a REMIC, or (ii) cause any REMIC to fail to qualify
      as a REMIC at any time that the Certificates are outstanding:

     

    
      	(1)  	
              The
                Master Servicer (in the case of the exercise of the Cleanup Call)
                or the
                Depositor (in all other cases) shall establish a ninety-day liquidation
                period and notify the Securities Administrator thereof, and the Securities
                Administrator shall in turn specify the first day of such period
                in a
                statement attached to the tax return for each of REMIC I, REMIC II,
                REMIC
                III, REMIC IV, REMIC V, REMIC VI, pursuant to Treasury Regulation
                Section 1.860F-1. The Master Servicer or the Depositor, as
                applicable, shall satisfy all the requirements of a qualified liquidation
                under Section 860F of the Code and any regulations thereunder, as
                evidenced by an Opinion of Counsel obtained at the expense of the
                Master
                Servicer or the Depositor, as
                applicable;

            

    

     

    
      	(2)  	
              During
                such ninety-day liquidation period, and at or prior to the time of
                making
                the final payment on the Certificates, the Master Servicer (in the
                case of
                the exercise of the Cleanup Call) or the Depositor (in all other
                cases)
                shall sell all of the assets of REMIC I for cash;
                and

            

    

     

    
      	(3)  	
              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, to the Holders of the Residual Certificates all cash on
                hand in
                the Trust Fund (other than cash retained to meet claims), and the
                Trust
                Fund shall terminate at that time.

            

    

     

    By
      their
      acceptance of the Certificates, the Holders thereof hereby authorize the Master
      Servicer (in the case of the exercise of the Cleanup Call) or the Depositor
      (in
      all other cases) to specify the ninety-day liquidation period for REMIC I,
      REMIC
      II, REMIC III, REMIC IV, REMIC V and REMIC VI as applicable, which authorization
      shall be binding upon all successor Certificateholders.

     

    The
      Securities Administrator as agent for each REMIC hereby agrees to adopt and
      sign
      such a plan of complete liquidation upon the written request of the Master
      Servicer or the Depositor, as applicable, and the receipt of the Opinion of
      Counsel referred to in Section 10.03(1) and to take such other action in
      connection therewith as may be reasonably requested by the Master Servicer
      or
      the Depositor, as applicable.

     

    ARTICLE
      XI

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      11.01  Amendment.

     

    This
      Agreement may be amended from time to time by parties hereto, without the
      consent of any of the Certificateholders to cure any ambiguity, to correct
      or
      supplement any provisions herein, to change the manner in which the Distribution
      Account maintained by the Securities Administrator or the Custodial Accounts
      maintained by the Servicers is maintained or to make such other provisions
      with
      respect to matters or questions arising under this Agreement as shall not be
      inconsistent with any other provisions herein if such action shall not, as
      evidenced by an Opinion of Counsel, adversely affect in any material respect
      the
      interests of any Certificateholder (or the Swap Provider unless the Swap
      Provider shall have consented to the amendment, which consent shall not be
      unreasonably withheld); provided that any such amendment shall be deemed not
      to
      adversely affect in any material respect the interests of the Certificateholders
      and no such Opinion of Counsel shall be required if the Person requesting such
      amendment obtains a letter from each Rating Agency stating that such amendment
      would not result in the downgrading or withdrawal of the respective ratings
      then
      assigned to the Certificates; provided further that any such amendment shall
      be
      deemed not to adversely affect in any material respect the interests of the
      Certificateholders and no such Opinion of Counsel nor any letter from the Rating
      Agencies stating that such amendment would not result in the downgrading or
      withdrawal of the respective ratings then assigned to the Certificates shall
      be
      required if such amendment is to effect a transfer of servicing pursuant to
      Section 7.06(a) to a Successor Servicer satisfying the Minimum Servicing
      Requirements.

     

    Notwithstanding
      the foregoing, without the consent of the Certificateholders or the Swap
      Provider, the parties hereto may at any time and from time to time amend this
      Agreement to modify, eliminate or add to any of its provisions to such extent
      as
      shall be necessary or appropriate to maintain the qualification of each REMIC
      as
      a REMIC under the Code or to avoid or minimize the risk of the imposition of
      any
      tax on any REMIC pursuant to the Code that would be a claim against any REMIC
      at
      any time prior to the final redemption of the Certificates, provided that the
      Trustee has been provided an Opinion of Counsel, which opinion shall be an
      expense of the party requesting such opinion but in any case shall not be an
      expense of the Trustee or the Trust Fund, to the effect that such action is
      necessary or appropriate to maintain such qualification or to avoid or minimize
      the risk of the imposition of such a tax.

     

    This
      Agreement may also be amended from time to time by the parties hereto and the
      Holders of each Class of Certificates affected thereby evidencing over 50%
      of
      the Voting Rights of such Class or Classes 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 (or, if such amendment modifies the rights of the Swap Provider
      hereunder, with the consent of the Swap Provider, which consent shall not be
      unreasonably withheld); provided that no such amendment shall (i) reduce in
      any
      manner the amount of, or delay the timing of, payments required to be
      distributed on any Certificate without the consent of the Holder of such
      Certificate, (ii) cause any REMIC to cease to qualify as a REMIC or (iii) reduce
      the aforesaid percentages of Certificates of each Class the Holders of which
      are
      required to consent to any such amendment without the consent of the Holders
      of
      all Certificates of such Class then outstanding.

     

    Notwithstanding
      any contrary provision of this Agreement, the Trustee shall not consent to
      any
      amendment to this Agreement unless it shall have first received an Opinion
      of
      Counsel, which opinion shall be an expense of the party requesting such
      amendment but in any case shall not be an expense of the Trustee, to the effect
      that such amendment will not (other than an amendment pursuant to clause (ii)
      of, and in accordance with, the preceding paragraph) cause the imposition of
      any
      tax on any REMIC or the Certificateholders or cause any REMIC to cease to
      qualify as a REMIC at any time that any Certificates are outstanding. Further,
      nothing in this Agreement shall require the Trustee to enter into an amendment
      without receiving an Opinion of Counsel, satisfactory to the Trustee that (i)
      such amendment is permitted and is not prohibited by this Agreement and (ii)
      that all requirements for amending this Agreement (including any consent of
      the
      applicable Certificateholders) have been complied with.

     

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

     

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

     

    The
      Trustee may, but shall not be obligated to enter into any amendment that affects
      its rights, duties or immunities under this Agreement or otherwise.

     

    Section
      11.02  Recordation
      of Agreement; Counterparts.

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all of the counties
      or other comparable jurisdictions in which any or all of the Mortgaged
      Properties are situated, and in any other appropriate public recording office
      or
      elsewhere. The Sponsor or the Depositor shall effect such recordation at the
      Trust’s expense upon the request in writing of a Certificateholder, but only if
      such direction is accompanied by an Opinion of Counsel (provided at the expense
      of the Certificateholder requesting recordation) to the effect that such
      recordation would materially and beneficially affect the interests of the
      Certificateholders or is required by law.

     

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

     

    Section
      11.03  Governing
      Law.

     

    THIS
      AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
      HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF OTHER THAN
      THE
      PROVISIONS OF SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
      LAW.

     

    Section
      11.04  Intention
      of Parties.

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Notes,
      Mortgages, assignments of Mortgages, title insurance policies and any
      modifications, extensions and/or assumption agreements and private mortgage
      insurance policies relating to the Mortgage Loans by the Sponsor to the
      Depositor, and by the Depositor to the Trust Fund be, and be construed as,
      an
      absolute sale thereof to the Depositor or the Trust Fund, as applicable. It
      is,
      further, not the intention of the parties that such conveyance be deemed a
      pledge thereof by the Sponsor to the Depositor, or by the Depositor to the
      Trust
      Fund. However, in the event that, notwithstanding the intent of the parties,
      such assets are held to be the property of the Sponsor or the Depositor, as
      applicable, or if for any other reason this Agreement is held or deemed to
      create a security interest in such assets, then (i) this Agreement shall be
      deemed to be a security agreement within the meaning of the Uniform Commercial
      Code of the State of New York and (ii) each conveyance provided for in this
      Agreement shall be deemed to be an assignment and a grant by the Sponsor or
      the
      Depositor, as applicable, for the benefit of the Certificateholders, of a
      security interest in all of the assets that constitute the Trust Fund, whether
      now owned or hereafter acquired.

     

    The
      Depositor for the benefit of the Certificateholders shall, to the extent
      consistent with this Agreement, take such actions as may be necessary to ensure
      that, if this Agreement were deemed to create a security interest in the assets
      of the Trust Fund, such security interest would be deemed to be a perfected
      security interest of first priority under applicable law and will be maintained
      as such throughout the term of the Agreement.

     

    Section
      11.05  Notices.

     

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

     

    
      	(1)  	
              Any
                material change or amendment to this
                Agreement;

            

    

     

    
      	(2)  	
              The
                occurrence of any Servicer Default or Master Servicer Default that
                has not
                been cured;

            

    

     

    
      	(3)  	
              The
                resignation or termination of a Servicer, the Master Servicer or
                the
                Trustee and the appointment of any successor;
                and

            

    

     

    
      	(4)  	
              The
                final payment to
                Certificateholders.

            

    

     

    In
      addition, the Securities Administrator shall, upon request, promptly furnish
      to
      each Rating Agency copies of the following:

     

    
      	(1)  	
              Each
                Annual Statement of Compliance described in Section 3.13 of this
                Agreement; and

            

    

     

    
      	(2)  	
              Each
                Assessment of Compliance and Attestation Report described in
                Section 3.14.

            

    

     

    All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given when delivered at or mailed by registered mail,
      return receipt requested, postage prepaid, or by recognized overnight courier,
      or by facsimile transmission to a number provided by the appropriate party
      if
      receipt of such transmission is confirmed to (i) in the case of the Depositor,
      Nomura Asset Acceptance Corp., 2 World Financial Center, Building B, New York,
      New York 10281 Attention: Nomura Asset Acceptance Corporation, Alternative
      Loan
      Trust, Series 2006-AR3; (ii) in the case of the Sponsor, Nomura Credit &
Capital, Inc., 2 World Financial Center, Building B, New York, New York 10281,
      Attention: Nomura Asset Acceptance Corporation, Alternative Loan Trust, Series
      2006-AR3 or such other address as may be hereafter furnished to the other
      parties hereto by the Sponsor in writing; (iii) in the case of the GMACM, GMAC
      Mortgage Corporation, 500 Enterprise Road Horsham, Pennsylvania 19044,
      Attention: Ken Perkins; (iv) in the case of Wells Fargo, Wells Fargo Bank,
      N.A.,
      P.O. Box 98, Columbia, Maryland 21046 (or, for overnight deliveries, 9062 Old
      Annapolis Road, Columbia, Maryland 21045), Telecopy No.: (410) 715-2380, Attn:
      NAAC 2006-AR3; (v) in the case of the Trustee, at each Corporate Trust Office
      or
      such other address as the Trustee may hereafter furnish to the other parties
      hereto; (vi) in the case of the Custodian, Wells Fargo Bank, N.A., 24 Executive
      Park, Suite 100, Irvine, California 92614, (vii) in the case of the Securities
      Administrator, its Corporate Trust Office; (viii) in the case of the Master
      Servicer, P.O. Box 98, Columbia, Maryland 21046 (or for overnight deliveries,
      9062 Old Annapolis Road, Columbia, Maryland 21045, Attention Client Manager
      -
      NAAC 2006-AR3); and (ix) in the case of the Rating Agencies, (a) Standard &
Poor’s, 55 Water Street, 41st
      Floor,
      New York, New York 10041, Attention: Mortgage Surveillance Group and (b) Moody’s
      Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention:
      Home Equity Monitoring. Any notice delivered to the Sponsor or the Trustee
      under
      this Agreement shall be effective only upon receipt. Any notice required or
      permitted to be mailed to a Certificateholder, unless otherwise provided herein,
      shall be given by first-class mail, postage prepaid, at the address of such
      Certificateholder as shown in the Certificate Register; any notice so mailed
      within the time prescribed in this Agreement shall be conclusively presumed
      to
      have been duly given, whether or not the Certificateholder receives such
      notice.

     

    Section
      11.06  Severability
      of Provisions.

     

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

     

    Section
      11.07  Assignment.

     

    Notwithstanding
      anything to the contrary contained herein, except as provided pursuant to
      Section 7.02, this Agreement may not be assigned by the Sponsor or the
      Depositor.

     

    Section
      11.08  Limitation
      on Rights of Certificateholders.

     

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

     

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

     

    No
      Certificateholder shall have any right by virtue or by availing itself of any
      provisions of this Agreement to institute any suit, action or proceeding in
      equity or at law upon or under or with respect to this Agreement, unless such
      Holder previously shall have given to the Trustee, a written notice of a
      Servicer Default and of the continuance thereof, as hereinbefore provided,
      the
      Holders of Certificates evidencing not less than twenty-five percent (25%)
      of
      the Voting Rights evidenced by the Certificates shall also have made written
      request to the Trustee to institute such action, suit or proceeding in its
      own
      name as Trustee, hereunder and shall have offered to the Trustee such indemnity
      satisfactory to it as it may require against the costs, expenses, and
      liabilities to be incurred therein or thereby, and the Trustee or for sixty
      (60)
      days after its receipt of such notice, request and offer of indemnity shall
      have
      neglected or refused to institute any such action, suit or proceeding; it being
      understood and intended, and being expressly covenanted by each
      Certificateholder with every other Certificateholder and the Trustee, that
      no
      one or more Holders of Certificates shall have any right in any manner whatever
      by virtue or by availing itself or themselves of any provisions of this
      Agreement to affect, disturb or prejudice the rights of the Holders of any
      other
      of the Certificates, or to obtain or seek to obtain priority over or preference
      to any other such Holder or to enforce any right under this Agreement, except
      in
      the manner herein provided and for the common benefit of all Certificateholders.
      For the protection and enforcement of the provisions of this Section 11.08,
      each and every Certificateholder or the Trustee shall be entitled to such relief
      as can be given either at law or in equity.

     

    Section
      11.09  Certificates
      Nonassessable and Fully Paid.

     

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

     

    Section
      11.10  Intention
      of the Parties and Interpretation.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Sections 3.13, 3.14,
      3.18 and 5.17 of this Agreement is to facilitate compliance by the Sponsor
      and
      the Depositor with the provisions of Regulation AB promulgated by the SEC under
      the Exchange Act (17 C.F.R. §§ 229.1100 - 229.1123), as such may be amended from
      time to time and subject to clarification and interpretive advice as may be
      issued by the staff of the SEC from time to time. Therefore, each of the parties
      agrees that (a) the obligations of the parties hereunder shall be interpreted
      in
      such a manner as to accomplish that purpose, (b) the parties’ obligations
      hereunder will be supplemented and modified as necessary to be consistent with
      any such amendments, interpretive advice or guidance, convention or consensus
      among active participants in the asset-backed securities markets, advice of
      counsel, or otherwise in respect of the requirements of Regulation AB, (c)
      the
      parties shall comply with requests made by the Sponsor or the Depositor for
      delivery of additional or different information as the Sponsor or the Depositor
      may determine in good faith is necessary to comply with the provisions of
      Regulation AB and (d) no amendment of this Agreement shall be required to effect
      any such changes in the parties’ obligations as are necessary to accommodate
      evolving interpretations of the provisions of Regulation AB.

     

    Notwithstanding
      the foregoing, the Servicer shall be under no obligation to provide any
      information in addition to that required by Sections 3.13, 3.14, 3.18 and 5.17
      of this Agreement as of the Closing Date that the Depositor deems required
      under
      Regulation AB if (i) the Servicer does not believe that such additional
      information is required under Regulation AB and (ii) the Servicer is not
      providing such additional information for its own securitizations, unless the
      Depositor pays all reasonable costs incurred by the Servicer in connection
      with
      the preparation and delivery of such additional information and the Servicer
      is
      given reasonable time to establish the necessary systems and procedures to
      produce such additional information.

     

    Section
      11.11  Reserved.

     

    Section
      11.12  Early
      Termination of Swap Agreement.

     

    In
      the
      event that the Swap Agreement is canceled or otherwise terminated for any reason
      (other than the exhaustion of the interest rate protection provided thereby),
      the Sponsor shall, to the extent a replacement contract is available, direct
      the
      Trustee to execute a replacement contract comparable to the Swap Agreement,
      providing interest rate protection which is equal to the then-existing
      protection provided by the Swap Agreement, provided, however, that the cost
      of
      any such replacement contract providing the same interest rate protection
      provided by such replacement contract may be reduced to a level such that the
      cost of such replacement contract shall not exceed the amount of any early
      termination payment.

     

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

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

     

    

    
      	
              NOMURA
                ASSET ACCEPTANCE CORPORATION,

              as
                Depositor

            
	 	 
	
              By:

            	
              /s/
                John P. Graham

            
	
              Name:

            	
              John
                P. Graham

            
	
              Title:

            	
              President

            
	 
	 
	
              NOMURA
                CREDIT & CAPITAL, INC.,

              as
                Sponsor

            
	 	 
	
              By:

            	
              /s/
                Timothy P.F. Crowley

            
	
              Name:

            	
              Timothy
                P.F. Crowley

            
	
              Title:

            	
              Vice
                President

            
	 
	 
	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION,

              as
                Master Servicer and Securities Administrator

            
	 	 
	
              By:

            	
              /s/
                Amy Doyle

            
	
              Name:

            	
              Amy
                Doyle

            
	
              Title:

            	
              Vice
                President

            
	 
	 
	
              HSBC
                BANK USA, NATIONAL ASSOCIATION,

              as
                Trustee

            
	 	 
	
              By:

            	
              /s/
                Elena Zheng

            
	
              Name:

            	
              Elena
                Zheng

            
	
              Title:

            	
              Assistant
                Vice President

            
	 
	 
	
              GMAC
                MORTGAGE CORPORATION,

              as
                a Servicer

            
	 	 
	
              By:

            	
              /s/
                Wesley B. Howland

            
	
              Name:

            	
              Wesley
                B. Howland

            
	
              Title:

            	
              Vice
                President

            
	 
	 
	
              With
                respect to Sections 3.33 and 3.34

               

              PORTFOLIO
                SURVEILLANCE ANALYTICS, LLC

            
	 	 
	
              By:

            	
              /s/
                Kevin J. Cooke

            
	
              Name:

            	
              Kevin
                J. Cooke

            
	
              Title:

            	
              Managing
                Partner

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            

    

    

    On
      this
      ___ day of September 2006, before me, a notary public in and for said State,
      appeared _____________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of Nomura Asset Acceptance
      Corporation, one of the corporations that executed the within instrument, and
      also known to me to be the person who executed it on behalf of such corporation
      and acknowledged to me that such corporation executed the within
      instrument.

     

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

     

    
      	
              ____________________________

            
	
              Notary
                Public

            

    

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            

    

    

    On
      this
      ____ day of September 2006 before me, a notary public in and for said State,
      appeared_______________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of Nomura Credit & Capital,
      Inc., that executed the within instrument, and also known to me to be the person
      who executed it on behalf of such corporation, and acknowledged to me that
      such
      corporation executed the within instrument.

     

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

     

    
      	
              ____________________________

            
	
              Notary
                Public

            

    

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF 

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF 

            	
              )

            

    

    

    On
      this
      ____ day of September 2006 before me, a notary public in and for said State,
      appeared_______________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of GMAC Mortgage Corporation, that
      executed the within instrument, and also known to me to be the person who
      executed it on behalf of such corporation, and acknowledged to me that such
      corporation executed the within instrument.

     

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

     

    
      	
              ____________________________

            
	
              Notary
                Public

            

    

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF 

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY

            	
              )

            

    

    

    On
      this
      ____ day of September 2006, before me, a notary public in and for said State,
      appeared _________________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of Portfolio Surveillance Analytics,
      LLC, one of the corporations that executed the within instrument, and also
      known
      to me to be the person who executed it on behalf of such corporation and
      acknowledged to me that such corporation executed the within
      instrument.

     

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

     

    
      	
              ____________________________

            
	
              Notary
                Public

            

    

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF 

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF 

            	
              )

            

    

    

    On
      this
      ____ day of September 2006, before me, a notary public in and for said State,
      appeared _______________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of HSBC Bank USA, National
      Association that executed the within instrument, and also known to me to be
      the
      person who executed it on behalf of such corporation, and acknowledged to me
      that such corporation executed the within instrument.

     

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

     

    
      	
              ____________________________

            
	
              Notary
                Public

            

    

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF 

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF 

            	
              )

            

    

    

    On
      this
      ____ day of September 2006, before me, a notary public in and for said State,
      appeared _______________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of Wells Fargo Bank, National
      Association that executed the within instrument, and also known to me to be
      the
      person who executed it on behalf of such entity, and acknowledged to me that
      such entity executed the within instrument.

     

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

     

    
      	
              ____________________________

            
	
              Notary
                Public

            

    

    [Notarial
      Seal] 

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

       

      

      EXHIBIT
        A-1

      

      FORM
        OF CLASS A-[1A][1B][2][3A][3B][4A][4B] 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”).

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY PRINCIPAL
        PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING
        THE
        INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF
        THIS
        CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
        ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE
        BY
        INQUIRY OF THE SECURITIES
        ADMINISTRATOR
        NAMED HEREIN.

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

       

      
        
          	
                  Certificate
                    No. [__]

                	
                  Pass-Through
                    Rate: Floating

                
	 	 
	
                  Class
                    A-[1A][1B][2][3A][3B][4A][4B]

                	 
	 	 
	
                  Date
                    of Pooling and Servicing Agreement

                  and
                    Cut-off Date: September 1, 2006

                	
                  Aggregate
                    Initial Certificate Principal Balance of the Class
                    A-[1A][1B][2][3A][3B][4A][4B] Certificates as of the Cut-off
                    Date:

                  $
                    ______________

                
	
                  Trustee:
                    HSBC Bank USA, National Association

                	 
	
                  First
                    Distribution Date: October 25, 2006

                	
                  Initial
                    Certificate Principal Balance of this Certificate as of the Cut-off
                    Date:

                  $
                    ______________

                
	 	
                  Master
                    Servicer and Securities Administrator: Wells Fargo Bank,
                    N.A.

                
	
                  Assumed
                    Final Distribution Date:

                  October
                    25, 2036

                	
                  CUSIP:
                    [______________]

                
	 	 

        

      

       

      MORTGAGE
        PASS-THROUGH CERTIFICATE

      SERIES
        2006-AR3

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        A-[1A][1B][2][3A][3B][4A][4B] Certificates with respect to a Trust Fund
        consisting primarily of a pool of conventional one- to four-family
        adjustable-rate mortgage loans sold by NOMURA ASSET ACCEPTANCE
        CORPORATION.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Asset Acceptance Corporation
        (“NAAC”) or the Trustee or any of their affiliates or any other person. Neither
        this Certificate nor the underlying Mortgage Loans are guaranteed or insured
        by
        any governmental entity or by NAAC or the Trustee or any of their affiliates
        or
        any other person. None of NAAC, the Trustee, the Securities Administrator
        or any
        of their affiliates will have any obligation with respect to any certificate
        or
        other obligation secured by or payable from payments on the Certificates.
        

       

      This
        certifies that Cede & Co. is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional first lien, adjustable-rate mortgage loans secured
        by
        one- to four- family residences, units in planned unit developments and
        individual condominium units (collectively, the “Mortgage Loans”) sold by NAAC.
        The Mortgage Loans were sold by Nomura Credit & Capital, Inc. (the
“Sponsor”) to NAAC. The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among NAAC, as depositor (the “Depositor”), the Sponsor, GMAC
        Mortgage Corporation, as a servicer, HSBC Bank USA, National Association,
        as
        trustee (the “Trustee”), and Wells Fargo Bank, N.A., as master servicer (the
“Master Servicer”) and securities administrator (the “Securities
        Administrator”), a summary of certain of the pertinent provisions of which is
        set forth hereafter. To the extent not defined herein, capitalized terms
        used
        herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is
        bound.

       

      Interest
        on this Certificate will accrue during the period commencing on the immediately
        preceding Distribution Date (as hereinafter defined) (or with respect to
        the
        First Distribution Date, the Closing Date) and ending on the day immediately
        preceding the related Distribution Date on the Certificate Principal Balance
        hereof at a per annum Pass-Through Rate equal to the least of (i) the sum
        of
        One-Month LIBOR for that Distribution Date plus (A) on or prior to the first
        possible Optional Termination Date, [___]% or (B) after the first possible
        Optional Termination Date, [__]%, (ii) the Net Funds Cap, (iii) the Cap Rate
        and
        (iv) the Maximum Interest Rate. The Securities Administrator will distribute
        on
        the 25th day of each month, or, if such 25th day is not a Business Day, the
        immediately following Business Day (each, a “Distribution Date”), commencing on
        the First Distribution Date specified above, to the Person in whose name
        this
        Certificate is registered at the close of business on the Business Day
        immediately preceding such Distribution Date, an amount equal to the product
        of
        the Percentage Interest evidenced by this Certificate and the amount (of
        interest and principal, if any) required to be distributed to the Holders
        of
        Certificates of the same Class as this Certificate. The Assumed Final
        Distribution Date is the Distribution Date in October 2036 which is not likely
        to be the date on which the Certificate Principal Balance of this Class of
        Certificates will be reduced to zero.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal hereon and
        any
        Realized Losses allocable hereto.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

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

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator. This Certificate is limited in right of
        payment
        to certain collections and recoveries respecting the Mortgage Loans and other
        assets included in the Trust Fund relating to the Mortgage Loans (including
        the
        Interest Rate Swap Agreement), all as more specifically set forth in the
        Agreement.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. 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
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

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

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or
        any such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund in accordance with the
        terms
        of the Agreement. Such optional repurchase may be made by such party only
        if on
        such Distribution Date the Stated Principal Balance of the Mortgage Loans
        is
        less than or equal to 10% of the Cut-off Date Principal Balance of the Mortgage
        Loans. The exercise of such right will effect the early retirement of the
        Certificates. In no event, however, will the Trust Fund created by the Agreement
        continue beyond the earlier of (i) the expiration of 21 years after the death
        of
        certain persons identified in the Agreement and (ii) the Assumed Final
        Distribution Date.

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator 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 Securities Administrator has caused this Certificate
        to be
        duly executed.

      
        	 	 	 
	
                Dated: September
                  __, 2006

              	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Authorized
                  Signatory

              

      

       

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class A-[1A][1B][2][3A][3B][4A][4B] Certificates referred to in
        the
        within-mentioned Agreement.

      
        	 	 	 
	 	WELLS
                FARGO BANK, N.A.
                as
                  Securities Administrator 

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Authorized
                  Signatory

              

      

      
 

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration 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
        denomination 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

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      EXHIBIT
        A-2

      

      FORM
        OF CLASS M-[1][2][3][4][5] CERTIFICATE

       

      THIS
        CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES
        [[AND
        ]THE CLASS M-1 CERTIFICATES] [,][AND ]THE CLASS M-2 CERTIFICATES] [,][AND
        ]THE
        CLASS M-3 CERTIFICATES] [AND THE CLASS M-4
        CERTIFICATES] AS DESCRIBED IN THE AGREEMENT (AS DEFINED
        BELOW).

       

      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”).

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY PRINCIPAL
        PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING
        THE
        INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF
        THIS
        CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
        ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE
        BY
        INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED HEREIN.

       

      ANY
        TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO MAKE THE REPRESENTATIONS
        SET
        FORTH IN SECTION 6.02(b) OF THE AGREEMENT.

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

      

        
          	
                  Certificate
                    No. [__]

                	
                  Pass-Through
                    Rate: Floating

                
	 	 
	
                  Class
                    M-[1][2][3][4][5] Subordinate

                	 
	 	
                   

                
	
                  Date
                    of Pooling and Servicing Agreement and Cut-off Date:

                  September
                    1, 2006

                	
                  Aggregate
                    Initial Certificate Principal Balance of the Class M-[1][2][3][4][5]
                    Certificates as of the Cut-off Date:

                  $
                    

                
	
                  Trustee:
                    HSBC Bank USA, National Association

                	 
	
                  First
                    Distribution Date:

                  October
                    25, 2006

                	
                  Initial
                    Certificate Principal Balance of this Certificate as of the Cut-off
                    Date:

                  $
                    

                
	 	
                  Master
                    Servicer and Securities Administrator: Wells Fargo Bank,
                    N.A.

                
	
                  Assumed
                    Final Distribution Date:

                  October
                    25, 2036

                	
                  CUSIP:
                    [__________________]

                
	 	 

        

      

       

      MORTGAGE
        PASS-THROUGH CERTIFICATE

      SERIES
        2006-AR3

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        M-[1][2][3][4][5] Certificates with respect to a Trust Fund consisting primarily
        of a pool of conventional one- to four-family adjustable-rate mortgage loans
        sold by NOMURA ASSET ACCEPTANCE CORPORATION.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Asset Acceptance Corporation
        (“NAAC”) or the Trustee or any of their affiliates or any other person. Neither
        this Certificate nor the underlying Mortgage Loans are guaranteed or insured
        by
        any governmental entity or by NAAC or the Trustee or any of their affiliates
        or
        any other person. None of NAAC, the Trustee, the Securities Administrator
        or any
        of their affiliates will have any obligation with respect to any certificate
        or
        other obligation secured by or payable from payments on the
        Certificates.

       

      This
        certifies that Cede & Co. is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional first lien, adjustable-rate mortgage loans secured
        by
        one- to four- family residences, units in planned unit developments and
        individual condominium units (collectively, the “Mortgage Loans”) sold by NAAC.
        The Mortgage Loans were sold by Nomura Credit & Capital, Inc. (the
“Sponsor”) to NAAC. The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among NAAC, as depositor (the “Depositor”), the Sponsor, GMAC
        Mortgage Corporation, as a servicer, HSBC Bank USA, National Association,
        as
        trustee (the “Trustee”), and Wells Fargo Bank, N.A. as master servicer (the
“Master Servicer”) and securities administrator (the “Securities
        Administrator”), a summary of certain of the pertinent provisions of which is
        set forth hereafter. To the extent not defined herein, capitalized terms
        used
        herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is
        bound.

       

      Interest
        on this Certificate will accrue during the period commencing on the immediately
        preceding Distribution Date (as hereinafter defined) (or with respect to
        the
        First Distribution Date, the Closing Date) and ending on the day immediately
        preceding the related Distribution Date on the Certificate Principal Balance
        hereof at a per annum Pass-Through Rate equal to the least of (i) the sum
        of
        One-Month LIBOR for that Distribution Date plus (A) on or prior to the first
        possible Optional Termination Date, [___]% or (B) after the first possible
        Optional Termination Date, [__]%, (ii) the Net Funds Cap, (iii) the Cap Rate
        and
        (iv) the Maximum Interest Rate. The Securities Administrator will distribute
        on
        the 25th day of each month, or, if such 25th day is not a Business Day, the
        immediately following Business Day (each, a “Distribution Date”), commencing on
        the First Distribution Date specified above, to the Person in whose name
        this
        Certificate is registered at the close of business on the Business Day
        immediately preceding such Distribution Date, an amount equal to the product
        of
        the Percentage Interest evidenced by this Certificate and the amount (of
        interest and principal, if any) required to be distributed to the Holders
        of
        Certificates of the same Class as this Certificate. The Assumed Final
        Distribution Date is the Distribution Date in October 2036 which is not likely
        to be the date on which the Certificate Principal Balance of this Class of
        Certificates will be reduced to zero.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal hereon and
        any
        Realized Losses allocable hereto.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

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

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator. This Certificates is limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund (including the Swap Agreement), all
        as
        more specifically set forth in the Agreement.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. 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
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      Any
        transferee of this Certificate shall be deemed to make the representations
        set
        forth in Section 6.02(b) of the Agreement.

       

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

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or
        any such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund in accordance with the
        terms
        of the Agreement. Such optional repurchase may be made by such party only
        if on
        such Distribution Date the Stated Principal Balance of the Mortgage Loans
        is
        less than or equal to 10% of the Cut-off Date Principal Balance of the Mortgage
        Loans. The exercise of such right will effect the early retirement of the
        Certificates. In no event, however, will the Trust Fund created by the Agreement
        continue beyond the earlier of (i) the expiration of 21 years after the death
        of
        certain persons identified in the Agreement and (ii) the Assumed Final
        Distribution Date.

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator 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 Securities Administrator has caused this Certificate
        to be
        duly executed.

      
        	 	 	 
	
                Dated:
                  September __, 2006

              	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Authorized
                  Signatory

              

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class M-[1][2][3][4][5] Certificates referred to in the
        within-mentioned Agreement.

      
        	
              	 	 
	
                 

              	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Authorized
                  Signatory

              

      

      
 

      ASSIGNMENT

      

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration 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
        denomination 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

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

       

      

      EXHIBIT
        A-3

      

      FORM
        OF CLASS P CERTIFICATE

       

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

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
        HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
        MAY
        BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE
        WITH
        THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
        144A
        UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
        BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
        (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
        A
        QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
        PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
        TO
        AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
        ACT (IF
        AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR”
WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION
        D
        UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN
        SUCH
        PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES
        ACT,
        SUBJECT TO (A) THE RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER
        SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY
        THE
        SECURITIES ADMINISTRATOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES
        ADMINISTRATOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE
        WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE
        WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER
        APPLICABLE JURISDICTION.

       

      NO
        TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(b) OF THE
        AGREEMENT.

      

        
          	
                  Certificate
                    No. [__]

                	
                  Percentage
                    Interest: 100%

                
	 	 
	
                  Class
                    P

                	 
	 	 
	
                  Date
                    of Pooling and Servicing Agreement and Cut-off Date:

                  September
                    1, 2006

                	
                  Aggregate
                    Initial Certificate Principal Balance of the Class P Certificates
                    as of
                    the Cut-off Date: $100

                
	 	 
	
                  Trustee:
                    HSBC Bank USA, National Association

                	
                  Master
                    Servicer and Securities Administrator: Wells Fargo Bank,
                    N.A.

                
	 	 
	
                  First
                    Distribution Date:

                  October
                    25, 2006

                	 
	 	 
	
                  Assumed
                    Final Distribution Date:

                  October
                    25, 2036

                	
                  CUSIP:
                    [________________]

                
	 	 

        

      

       

      MORTGAGE
        PASS-THROUGH CERTIFICATE

      SERIES
        2006-AR3

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        P
        Certificates with respect to a Trust Fund consisting primarily of a pool
        of
        conventional one- to four-family adjustable-rate mortgage loans sold by NOMURA
        ASSET ACCEPTANCE CORPORATION.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Asset Acceptance Corporation
        (“NAAC”) or the Trustee referred to below or any of their affiliates or any
        other person. Neither this Certificate nor the underlying Mortgage Loans
        are
        guaranteed or insured by any governmental entity or by NAAC or the Trustee
        or
        any of their affiliates or any other person. None of NAAC, the Trustee, the
        Securities Administrator or any of their affiliates will have any obligation
        with respect to any certificate or other obligation secured by or payable
        from
        payments on the Certificates. 

       

      This
        certifies that Nomura Securities International, Inc. is the registered owner
        of
        the Percentage Interest evidenced hereby in the beneficial ownership interest
        of
        Certificates of the same Class as this Certificate in a trust (the “Trust
        Fund”), generally consisting of conventional first lien, adjustable-rate
        mortgage loans secured by one- to four- family residences, units in planned
        unit
        developments and individual condominium units (collectively, the “Mortgage
        Loans”) sold by NAAC. The Mortgage Loans were sold by Nomura Credit &
Capital, Inc. (the “Sponsor”) to NAAC. The Trust Fund was created pursuant to
        the Pooling and Servicing Agreement dated as of the Cut-off Date specified
        above
        (the “Agreement”), among NAAC, as depositor (the “Depositor”), the Sponsor, GMAC
        Mortgage Corporation, as a servicer, HSBC Bank USA, National Association,
        as
        trustee (the “Trustee”), and Wells Fargo Bank, N.A. as master servicer (the
“Master Servicer”) and securities administrator (the “Securities
        Administrator”), a summary of certain of the pertinent provisions of which is
        set forth hereafter. To the extent not defined herein, capitalized terms
        used
        herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is
        bound.

       

      The
        Securities Administrator will distribute on the 25th day of each month, or,
        if
        such 25th day is not a Business Day, the immediately following Business Day
        (each, a “Distribution Date”), commencing on the First Distribution Date
        specified above, to the Person in whose name this Certificate is registered
        at
        the close of business on the last day (or if such last day is not a Business
        Day, the Business Day immediately preceding such last day) of the calendar
        month
        immediately preceding the month in which the Distribution Date occurs, an
        amount
        equal to the product of the Percentage Interest evidenced by this Certificate
        and the amounts required to be distributed to the Holders of Certificates
        of the
        same Class as this Certificate. The Assumed Final Distribution Date is the
        Distribution Date in October 2036.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the Securities Act of 1933,
        as
        amended (the “1933 Act”), and an effective registration or qualification under
        applicable state securities laws, or is made in a transaction that does not
        require such registration or qualification. In the event that such a transfer
        of
        this Certificate is to be made without registration or qualification, the
        Securities Administrator shall require receipt of (i) if such transfer is
        purportedly being made in reliance upon Rule 144A under the 1933 Act, written
        certifications from the Holder of the Certificate desiring to effect the
        transfer, and from such Holder’s prospective transferee, substantially in the
        forms attached to the Agreement as Exhibit E and either F or G, as applicable,
        and (ii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Securities Administrator or the Trustee in their respective capacities as
        such),
        together with copies of the written certification(s) of the Holder of the
        Certificate desiring to effect the transfer and/or such Holder’s prospective
        transferee upon which such Opinion of Counsel is based. Neither the Depositor,
        the Securities Administrator nor 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 Securities Administrator,
        the
        Depositor and the Sponsor against any liability that may result if the transfer
        is not so exempt or is not made in accordance with such federal and state
        laws.

       

      No
        transfer of this Certificate shall be made to any person unless the transferee
        provides a certification pursuant to Section 6.02(b) of the
        Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Securities
        Administrator is not liable to the Certificateholders for any amount payable
        under this Certificate or the Agreement or, except as expressly provided
        in the
        Agreement, subject to any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator. This Certificate is limited in right of
        payment
        to Prepayment Charges collected in respect of the Mortgage Loans and amounts
        on
        deposit in the Class P Certificate Account as more specifically set forth
        in the
        Agreement.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. 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
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

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

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or
        any such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund in accordance with the
        terms
        of the Agreement. Such optional repurchase may be made by such party only
        if on
        such Distribution Date the Stated Principal Balance of the Mortgage Loans
        is
        less than or equal to 10% of the Cut-off Date Principal Balance of the Mortgage
        Loans. The exercise of such right will effect the early retirement of the
        Certificates. In no event, however, will the Trust Fund created by the Agreement
        continue beyond the earlier of (i) the expiration of 21 years after the death
        of
        certain persons identified in the Agreement and (ii) the Assumed Final
        Distribution Date.

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator 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 Securities Administrator has caused this Certificate
        to be
        duly executed.

      
        	 	 	 
	
                Dated:
                  September __, 2006

              	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Authorized
                  Signatory

              

      

       

      
 

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class P Certificates referred to in the within-mentioned
        Agreement.

       

      
        	
              
	
                 

              	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Authorized
                  Signatory

              

      

       

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration 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
        denomination 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

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

       

       

      EXHIBIT
        A-4

      

      FORM
        OF CLASS R[-X] CERTIFICATE

      

      THIS
        CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON
        OR A
        DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

      

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL 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”).

      

      NO
        TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(b) OF THE
        AGREEMENT.

      

      ANY
        RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
        IF
        THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE SECURITIES
        ADMINISTRATOR THAT (1) SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY
        STATE
        OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES, OR
        ANY
        AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY
        WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND EXCEPT
        FOR FREDDIE MAC, A MAJORITY OF ITS BOARD OF DIRECTORS IS NOT SELECTED BY
        SUCH
        GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION,
        OR
        ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING, (C) 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 UNLESS SUCH
        ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING
        THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE
        INCOME), (D) RURAL ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED IN SECTION
        1381(a)(2)(C) OF THE CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER SECTION
        775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A),
        (B),
        (C), (D) OR (E) BEING HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR
        (F) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER
        IS
        TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH TRANSFEREE SATISFIES
        CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE
        PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE
        REGISTER OR 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 OF THIS CERTIFICATE
        SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
        PARAGRAPH.

       

      
        
          	
                  Certificate
                    No.__

                	 
	 	 
	
                  Class
                    R[-X]

                	
                  Percentage
                    Interest: ____

                
	 	 
	
                  Date
                    of Pooling and Servicing Agreement 

                  and
                    Cut-off Date: September 1, 2006

                	 
	 	 
	
                  First
                    Distribution Date:

                  October
                    25, 2006

                	 
	 	 
	
                  Trustee:
                    HSBC Bank USA, National Association

                	
                  Master
                    Servicer and Securities Administrator: Wells Fargo Bank,
                    N.A.

                
	 	 
	
                  Assumed
                    Final Distribution Date: October 25, 2036

                	 
	 	
                  CUSIP:
                    [__________________] 

                

        

      

       

      MORTGAGE
        PASS-THROUGH CERTIFICATE

      SERIES
        2006-AR3

      

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        R[-X] Certificates with respect to a Trust Fund consisting primarily of a
        pool
        of conventional one- to four-family adjustable-rate mortgage loans sold by
        NOMURA ASSET ACCEPTANCE CORPORATION.

      

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Asset Acceptance Corporation
        (“NAAC”) or the Trustee referred to below or any of their affiliates or any
        other person. Neither this Certificate nor the underlying Mortgage Loans
        are
        guaranteed or insured by any governmental entity or by NAAC or the Trustee
        or
        any of their affiliates or any other person. None of NAAC, the Trustee, the
        Securities Administrator or any of their affiliates will have any obligation
        with respect to any certificate or other obligation secured by or payable
        from
        payments on the Certificates.

       

      This
        certifies that Nomura Securities International, Inc. is the registered owner
        of
        the Percentage Interest evidenced hereby in the beneficial ownership interest
        of
        Certificates of the same Class as this Certificate in a trust (the “Trust Fund”)
        generally consisting of conventional first lien, adjustable-rate mortgage
        loans
        secured by one- to four-family residences, units in planned unit developments
        and individual condominium units (collectively, the “Mortgage Loans”) sold by
        NAAC. The Mortgage Loans were sold by Nomura Credit & Capital, Inc. (the
“Sponsor”) to NAAC. The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among NAAC, as depositor (the “Depositor”), the Sponsor, GMAC
        Mortgage Corporation, as a servicer, HSBC Bank USA, National Association,
        as
        trustee (the “Trustee”), and Wells Fargo Bank, N.A., as master servicer (the
“Master Servicer”) and securities administrator (the “Securities
        Administrator”), a summary of certain of the pertinent provisions of which is
        set forth hereafter. To the extent not defined herein, capitalized terms
        used
        herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is
        bound.

      

      Each
        Holder of this Certificate will be deemed to have agreed to be bound by the
        restrictions set forth in the Agreement to the effect that (i) each person
        holding or acquiring any Ownership Interest in this Certificate must be a
        United
        States Person and a Permitted Transferee, (ii) the transfer of any Ownership
        Interest in this Certificate will be conditioned upon the delivery to the
        Securities Administrator of, among other things, an affidavit to the effect
        that
        it is a United States Person and Permitted Transferee, (iii) any attempted
        or
        purported transfer of any Ownership Interest in this Certificate in violation
        of
        such restrictions will be absolutely null and void and will vest no rights
        in
        the purported transferee, and (iv) if any person other than a United States
        Person and a Permitted Transferee acquires any Ownership Interest in this
        Certificate in violation of such restrictions, then the Depositor will have
        the
        right, in its sole discretion and without notice to the Holder of this
        Certificate, to sell this Certificate to a purchaser selected by the Depositor,
        which purchaser may be the Depositor, or any affiliate of the Depositor,
        on such
        terms and conditions as the Depositor may choose.

      

      The
        Securities Administrator will distribute on the 25th day of each month, or,
        if
        such 25th day is not a Business Day, the immediately following Business Day
        (each, a “Distribution Date”), commencing on the First Distribution Date
        specified above, to the Person in whose name this Certificate is registered
        at
        the close of business on the last day (or if such last day is not a Business
        Day, the Business Day immediately preceding such last day) of the calendar
        month
        immediately preceding the month in which the Distribution Date occurs, an
        amount
        equal to the product of the Percentage Interest evidenced by this Certificate
        and the amounts required to be distributed to the Holders of Certificates
        of the
        same Class as this Certificate. The Assumed Final Distribution Date is the
        Distribution Date in October 2036.

      

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice.

      

      No
        transfer of this Certificate shall be made to any person unless the transferee
        provides a certification pursuant to Section 6.02(b) of the
        Agreement.

      

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

      

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Securities
        Administrator is not liable to the Certificateholders for any amount payable
        under this Certificate or the Agreement or, except as expressly provided
        in the
        Agreement, subject to any liability under the Agreement.

      

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

      

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator. This Certificates is limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund (including the Swap Agreement), all
        as
        more specifically set forth in the Agreement.

      

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. 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
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

      

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

      

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or
        any such agent shall be affected by notice to the contrary.

      

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund in accordance with the
        terms
        of the Agreement. Such optional repurchase may be made by such party only
        if on
        such Distribution Date the Stated Principal Balance of the Mortgage Loans
        is
        less than or equal to 10% of the Cut-off Date Principal Balance of the Mortgage
        Loans. The exercise of such right will effect the early retirement of the
        Certificates. In no event, however, will the Trust Fund created by the Agreement
        continue beyond the earlier of (i) the expiration of 21 years after the death
        of
        certain persons identified in the Agreement and (ii) the Assumed Final
        Distribution Date.

      

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator 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 Securities Administrator has caused this Certificate
        to be
        duly executed.

      
        	 	 	 
	
                Dated: September
                  __, 2006

              	
                WELLS
                  FARGO BANK, N.A., as Securities 

                Administrator

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Authorized
                  Signatory

              

      

       

       

      

      CERTIFICATE
        OF AUTHENTICATION

      

      This
        is
        one of the Class R[-X] Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 
	
                 

              	
                WELLS
                  FARGO BANK, N.A., as Securities 

                Administrator

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Authorized
                  Signatory

              

      

      
 

      ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration 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
        denomination 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

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      
 

      EXHIBIT
        A-5

       

      FORM
        OF CLASS X 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”).

       

      THIS
        CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES AND MEZZANINE CERTIFICATES
        TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO
        HEREIN.

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
        HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
        MAY
        BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE
        WITH
        THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
        144A
        UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
        BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
        (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
        A
        QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
        PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
        TO
        AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
        ACT (IF
        AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN “INSTITUTIONAL ACCREDITED INVESTOR”
WITHIN THE MEANING THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION
        D
        UNDER THE ACT OR ANY ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN
        SUCH
        PARAGRAPHS PURCHASING NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES
        ACT,
        SUBJECT TO (A) THE RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER
        SUBSTANTIALLY IN THE FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY
        THE
        SECURITIES ADMINISTRATOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES
        ADMINISTRATOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE
        WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE
        WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER
        APPLICABLE JURISDICTION.

       

      NO
        TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(b) OF THE
        AGREEMENT.

       

      
        
          	
                  Certificate
                    No. [__]

                	
                  Percentage
                    Interest: [___]%

                
	 	 
	
                  Class
                    X

                	
                  Variable
                    Pass-Through Rate

                
	 	 
	
                  Date
                    of Pooling and Servicing Agreement and Cut-off Date:

                  September
                    1, 2006

                	
                  Initial
                    Certificate Notional Balance of this Certificate as of the Cut-off
                    Date:

                  $
                    

                
	 	 
	
                  Trustee:
                    HSBC Bank USA, National Association

                	
                  Master
                    Servicer and Securities Administrator: Wells Fargo Bank,
                    N.A.

                
	
                  First
                    Distribution Date:

                  October
                    25, 2006

                	
                   

                
	 	 
	
                  Assumed
                    Final Distribution Date:

                  October
                    25, 2036

                	
                  CUSIP:
                    [_____________]

                
	 	 

        

      

       

      MORTGAGE
        PASS-THROUGH CERTIFICATE

      SERIES
        2006-AR3

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        X
        Certificates with respect to a Trust Fund consisting primarily of a pool
        of
        conventional one- to four-family adjustable-rate mortgage loans sold by NOMURA
        ASSET ACCEPTANCE CORPORATION.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Asset Acceptance Corporation
        (“NAAC”) or the Trustee referred to below or any of their affiliates or any
        other person. Neither this Certificate nor the underlying Mortgage Loans
        are
        guaranteed or insured by any governmental entity or by NAAC or the Trustee
        or
        any of their affiliates or any other person. None of NAAC, the Trustee or
        any of
        their affiliates will have any obligation with respect to any certificate
        or
        other obligation secured by or payable from payments on the Certificates.
        

       

      This
        certifies that Nomura Securities International, Inc. is the registered owner
        of
        the Percentage Interest evidenced hereby in the beneficial ownership interest
        of
        Certificates of the same Class as this Certificate in a trust (the “Trust
        Fund”), generally consisting of conventional first lien, adjustable-rate
        mortgage loans secured by one- to four- family residences, units in planned
        unit
        developments and individual condominium units (collectively, the “Mortgage
        Loans”) sold by NAAC. The Mortgage Loans were sold by Nomura Credit &
Capital, Inc. (the “Sponsor”) to NAAC. The Trust Fund was created pursuant to
        the Pooling and Servicing Agreement dated as of the Cut-off Date specified
        above
        (the “Agreement”), among NAAC, as depositor (the “Depositor”), the Sponsor, GMAC
        Mortgage Corporation, as a servicer, HSBC Bank USA, National Association,
        as
        trustee (the “Trustee”), and Wells Fargo Bank, N.A. as master servicer (the
“Master Servicer”) and securities administrator (the “Securities
        Administrator”), a summary of certain of the pertinent provisions of which is
        set forth hereafter. To the extent not defined herein, capitalized terms
        used
        herein shall have the meaning ascribed to them 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 its acceptance hereof assents and by which such Holder is
        bound.

       

      Interest
        on this Certificate will accrue during the month prior to the month in which
        a
        Distribution Date (as hereinafter defined) occurs on the Certificate Notional
        Balance hereof at a per annum rate equal to the Class X Pass-Through Rate
        as set
        forth in the Agreement. The Securities Administrator will distribute on the
        25th
        day of each month, or, if such 25th day is not a Business Day, the immediately
        following Business Day (each, a “Distribution Date”), commencing on the First
        Distribution Date specified above, to the Person in whose name this Certificate
        is registered at the close of business on the last day (or if such last day
        is
        not a Business Day, the Business Day immediately preceding such last day)
        of the
        calendar month immediately preceding the month in which the Distribution
        Date
        occurs, 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
        Certificates of the same Class as this Certificate. The Assumed Final
        Distribution Date is the Distribution Date in October 2036.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the Securities Act of 1933,
        as
        amended (the “1933 Act”), and an effective registration or qualification under
        applicable state securities laws, or is made in a transaction that does not
        require such registration or qualification. In the event that such a transfer
        of
        this Certificate is to be made without registration or qualification, the
        Securities Administrator shall require receipt of (i) if such transfer is
        purportedly being made in reliance upon Rule 144A under the 1933 Act, written
        certifications from the Holder of the Certificate desiring to effect the
        transfer, and from such Holder’s prospective transferee, substantially in the
        forms attached to the Agreement as Exhibit E and either F or G, as applicable,
        and (ii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Securities Administrator or the Trustee in their respective capacities as
        such),
        together with copies of the written certification(s) of the Holder of the
        Certificate desiring to effect the transfer and/or such Holder’s prospective
        transferee upon which such Opinion of Counsel is based. Neither the Depositor
        nor 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 Securities Administrator, the Depositor and the Sponsor
        against
        any liability that may result if the transfer is not so exempt or is not
        made in
        accordance with such federal and state laws.

       

      No
        transfer of this Certificate shall be made to any person unless the transferee
        provides a certification pursuant to Section 6.02(b) of the
        Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Securities
        Administrator is not liable to the Certificateholders for any amount payable
        under this Certificate or the Agreement or, except as expressly provided
        in the
        Agreement, subject to any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator. This Certificates is limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund (including the Swap Agreement), all
        as
        more specifically set forth in the Agreement.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. 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
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

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

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        the Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or
        any such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund in accordance with the
        terms
        of the Agreement. Such optional repurchase may be made by such party only
        if on
        such Distribution Date the Stated Principal Balance of the Mortgage Loans
        is
        less than or equal to 10% of the Cut-off Date Principal Balance of the Mortgage
        Loans. The exercise of such right will effect the early retirement of the
        Certificates. In no event, however, will the Trust Fund created by the Agreement
        continue beyond the earlier of (i) the expiration of 21 years after the death
        of
        certain persons identified in the Agreement and (ii) the Assumed Final
        Distribution Date.

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator 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 Securities Administrator has caused this Certificate
        to be
        duly executed.

      
        	 	 	 
	
                Dated:
                  September __, 2006

              	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Authorized
                  Signatory

              

      

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class X Certificates referred to in the within-mentioned
        Agreement.

       

      
        	
              	 	 
	
                 

              	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Authorized
                  Signatory

              

      

      
 

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration 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
        denomination 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

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      
 

      EXHIBIT
        B

       

      MORTGAGE
        LOAN SCHEDULE

       

      

      The
        Preliminary and Final Mortgage Loan Schedules shall set forth the following
        information with respect to each Mortgage Loan:

      

      
        	 	
                (a)

              	
                the
                  Mortgage Loan identifying number;

              
	 	 	 
	 	
                (b)

              	
                the
                  Mortgage Rate in effect as of the Cut-off Date;

              
	 	 	 
	 	
                (c)

              	
                the
                  Servicing Fee Rate; 

              
	 	 	 
	 	
                (d)

              	
                the
                  Net Mortgage Rate in effect as of the Cut-off Date;

              
	 	 	 
	 	
                (e)

              	
                the
                  maturity date;

              
	 	 	 
	 	
                (f)

              	
                the
                  original principal balance;

              
	 	 	 
	 	
                (g)

              	
                the
                  Cut-off Date Principal Balance;

              
	 	 	 
	 	
                (h)

              	
                the
                  original term;

              
	 	 	 
	 	
                (i)

              	
                the
                  remaining term;

              
	 	 	 
	 	
                (j)

              	
                the
                  property type;

              
	 	 	 
	 	
                (k)

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

              
	 	 	 
	 	
                (l)

              	
                with
                  respect to each MOM Loan, the related MIN;

              
	 	 	 
	 	
                (m)

              	
                the
                  Custodian;

              
	 	 	 
	 	
                (n)

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

              
	 	 	 
	 	
                (o)

              	
                the
                  first Adjustment Date;

              
	 	 	 
	 	
                (p)

              	
                the
                  Gross Margin;

              
	 	 	 
	 	
                (q)

              	
                the
                  Maximum Mortgage Interest Rate under the terms of the Mortgage
                  Note;

              
	 	 	 
	 	
                (r)

              	
                the
                  Minimum Mortgage Interest Rate under the terms of the Mortgage
                  Note;

              
	 	 	 
	 	
                (s)

              	
                the
                  Periodic Rate Cap;

              
	 	 	 
	 	
                (t)

              	
                the
                  first Adjustment Date immediately following the Cut-off Date;
                  

              
	 	 	 
	 	
                (u)

              	
                the
                  related Index; and

              
	 	 	 
	 	
                (v)

              	
                the
                  Servicer.

              

      

      

       

      EXHIBIT
        C

       

      MORTGAGE
        LOAN PURCHASE AGREEMENT

       

      MORTGAGE
        LOAN PURCHASE AGREEMENT

      

      This
        is a
        Mortgage Loan Purchase Agreement (this “Agreement”), dated September 29, 2006,
        between Nomura Credit & Capital, Inc., a Delaware corporation (the “Seller”)
        and Nomura Asset Acceptance Corporation, a Delaware corporation (the
“Purchaser”).

      

      Preliminary
        Statement

      

      The
        Seller intends to sell the Mortgage Loans (as hereinafter identified) and
        the
        Swap Agreement, to the Purchaser on the terms and subject to the conditions
        set
        forth in this Agreement. The Purchaser intends to deposit the Mortgage Loans
        into a mortgage pool comprising the Trust Fund. The Trust Fund will be evidenced
        by a single series of mortgage pass-through certificates designated as Nomura
        Asset Acceptance Corporation, Alternative Loan Trust, Series 2006-AR3, Mortgage
        Pass-Through Certificates (the “Certificates”). The Certificates will consist of
        sixteen (16) classes of certificates. The Certificates will be issued pursuant
        to a pooling and servicing agreement, dated as of September 1, 2006 (the
        “Pooling and Servicing Agreement”), among the Purchaser as depositor, GMAC
        Mortgage Corporation as a servicer (“GMACM”), Wells Fargo Bank, N.A. (“Wells
        Fargo”) as master servicer and securities administrator, the Seller as sponsor
        and HSBC Bank USA, National Association as trustee (the “Trustee”). The
        Purchaser will sell the Class A-1A, Class A-1B, Class A-2, Class A-3A, Class
        A-3B, Class A-4A, Class A-4B, Class M-1, Class M-2, Class M-3, Class M-4
        and
        Class M-5 Certificates to Nomura Securities International, Inc. (“NSI”) and
        Goldman, Sachs & Co. (“GSC”, together with NSI, the “Underwriters”),
        pursuant to the Amended and Restated Underwriting Agreement, dated September
        1,
        2006, between the Purchaser and NSI, and the Terms Agreement, dated September
        27, 2006, among the Underwriters and the Purchaser. Capitalized terms used
        but
        not defined herein shall have the meanings set forth in the Pooling and
        Servicing Agreement. Pursuant to the custodial agreement, dated as of September
        1, 2006 (the “Custodial Agreement”), among the Trustee, GMACM as a servicer,
        Wachovia Mortgage Corporation (“Wachovia”, together with GMACM, the “Servicers”)
        as a servicer and Wells Fargo as custodian (the “Custodian”), the Trustee
        intends to have the Custodian take possession of the Mortgages and Mortgage
        Notes, along with certain other documents specified in the Custodial Agreement,
        as the custodian of the Trustee, in accordance with the terms and conditions
        thereof.

      

      The
        parties hereto agree as follows:

      

      SECTION
        1.   Agreement
        to Purchase.
        The
        Seller hereby sells, and the Purchaser hereby purchases, on September 29,
        2006
        (the “Closing Date”), (a) certain conventional, one-to four family,
        adjustable-rate mortgage loans secured by first liens on residential real
        properties (the “Mortgage Loans”), having an aggregate principal balance as of
        the close of business on September 1, 2006 (the “Cut-off Date”) of approximately
        $476,229,351.38 (the “Closing Balance”), after giving effect to all payments due
        on the Mortgage Loans on or before the Cut-off Date, whether or not received,
        including the right to any Prepayment Charges payable by the related Mortgagors
        in connection with any Principal Prepayments on the Mortgage Loans and (b)
        the
        swap agreement, dated as of September 29, 2006, between , ABN AMRO Bank N.V.
        as
        the swap provider and HSBC Bank USA, National Association, as trustee for
        the
        Supplemental Interest Trust (the “Swap Agreement”).

      

      SECTION
        2.   Mortgage
        Loan Schedule.
        The
        Purchaser and the Seller have agreed upon which of the mortgage loans owned
        by
        the Seller are to be purchased by the Purchaser pursuant to this Agreement
        and
        the Seller will prepare or cause to be prepared on or prior to the Closing
        Date
        a final schedule (the “Closing Schedule”) that describes such Mortgage Loans and
        sets forth all of the Mortgage Loans to be purchased under this Agreement,
        including the Prepayment Charges. The Closing Schedule will conform to the
        requirements set forth in this Agreement and to the definition of “Mortgage Loan
        Schedule” under the Pooling and Servicing Agreement.

      

      SECTION
        3.   Consideration.

      

      (a)  In
        consideration for the Mortgage Loans and the Swap Agreement to be purchased
        hereunder, the Purchaser shall, as described in Section 10, (i) pay to or
        upon
        the order of the Seller in immediately available funds an amount (the “Purchase
        Price”) equal to (i) $____________*
        and (ii)
        a 100% interest in the Class X, Class P, Class R and Class R-X Certificates
        (collectively the “Private Certificates”) which shall be registered solely in
        the name of NSI.

      

      (b)  The
        Purchaser or any assignee, transferee or designee of the Purchaser shall
        be
        entitled to all scheduled payments of principal due after the Cut-off Date,
        all
        other payments of principal due and collected after the Cut-off Date, and
        all
        payments of interest on the Mortgage Loans allocable to the period after
        the
        Cut-off Date. All scheduled payments of principal and interest due on or
        before
        the Cut-off Date and collected after the Cut-off Date shall belong to the
        Seller.

      

      (c)  Pursuant
        to the Pooling and Servicing Agreement, the Purchaser will assign all of
        its
        right, title and interest in and to the Mortgage Loans and the Swap Agreement,
        together with its rights under this Agreement, to the Trustee for the benefit
        of
        the Certificateholders.

      

      SECTION
        4.   Transfer
        of the Mortgage Loans.

      

      (a)  Possession
        of Mortgage Files.
        The
        Seller does hereby sell to the Purchaser, without recourse but subject to
        the
        terms of this Agreement, all of its right, title and interest in, to and
        under
        the Mortgage Loans, including the related Prepayment Charges, and the Swap
        Agreement. The contents of each Mortgage File not delivered to the Purchaser
        or
        to any assignee, transferee or designee of the Purchaser on or prior to the
        Closing Date are and shall be held in trust by the Seller for the benefit
        of the
        Purchaser or any assignee, transferee or designee of the Purchaser. Upon
        the
        sale of the Mortgage Loans, the ownership of each Mortgage Note, the related
        Mortgage and the other contents of the related Mortgage File is vested in
        the
        Purchaser and the ownership of all records and documents with respect to
        the
        related Mortgage Loan prepared by or that come into the possession of the
        Seller
        on or after the Closing Date shall immediately vest in the Purchaser and
        shall
        be delivered immediately to the Purchaser or as otherwise directed by the
        Purchaser.

      

      (b) Delivery
        of Mortgage Loan Documents.
        Pursuant
        to various conveyance documents to be executed on the Closing Date and pursuant
        to the Pooling and Servicing Agreement, the Purchaser will assign on the
        Closing
        Date all of its right, title and interest in and to the Mortgage Loans to
        the
        Trustee for the benefit of the Certificateholders. In connection with the
        transfer and assignment of the Mortgage Loans, the Seller has delivered or
        will
        deliver or cause to be delivered to the Trustee by the Closing Date or such
        later date as is agreed to by the Purchaser and the Seller (each of the Closing
        Date and such later date is referred to as a “Mortgage
        File Delivery Date”),
        the
        documents set forth on Exhibit
        1
        hereto,
provided,
        however,
        that in
        lieu of the foregoing, the 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 in time to permit their delivery as
        specified above, the Seller may deliver a true copy thereof with a certification
        by the Seller on the face of such copy, substantially as follows: “Certified to
        be a true and correct copy of the original, which has been transmitted for
        recording;” (y) in lieu of the Mortgage, assignments to the Trustee or
        intervening assignments thereof, if the applicable jurisdiction retains the
        originals of such documents or if the originals are lost (in each case, as
        evidenced by a certification from the Seller to such effect), the 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 (z) in lieu of the Mortgage Notes relating to
        the
        Mortgage Loans, each identified in the list delivered by the Purchaser to
        the
        Trustee on the Closing Date and attached hereto as Exhibit
        2
        the
        Seller may deliver lost note affidavits and indemnities of the Seller; 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
        Seller, in lieu of delivering the above documents, may deliver to the Trustee
        a
        certification by the Seller to such effect. The Seller shall deliver such
        original documents (including any original documents as to which certified
        copies had previously been delivered) or such certified copies to the Trustee
        promptly after they are received. The Seller shall cause the Mortgage and
        intervening assignments, if any, and the assignment of the Mortgage to be
        recorded not later than 180 days after the Closing Date, or, in lieu of such
        assignments, shall provide an Opinion of Counsel pursuant to Section 6 hereof
        to
        the effect that the recordation of such assignment is not necessary to protect
        the Trustee’s interest in the related Mortgage Loan. Upon the request of the
        Purchaser, the Seller will assist the Purchaser in effecting the assignment
        referred to above.

       

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

      

      (d) Acceptance
        of Mortgage Loans.
        The
        documents delivered pursuant to Section 4(b) hereof shall be reviewed by
        the
        Purchaser or any assignee, transferee or designee of the Purchaser at any
        time
        before or after the Closing Date (and with respect to each document permitted
        to
        be delivered after the Closing Date, within seven (7) days of its delivery)
        to
        ascertain that all required documents have been executed and received and
        that
        such documents relate to the Mortgage Loans identified on the Mortgage Loan
        Schedule.

      

      (e) Transfer
        of Interest in Agreements.
        The
        Purchaser has the right to assign its interest under this Agreement, in whole
        or
        in part, to the Trustee, as may be required to effect the purposes of the
        Pooling and Servicing Agreement, without the consent of the Seller, and the
        assignee shall succeed to the rights and obligations hereunder of the Purchaser.
        Any expense reasonably incurred by or on behalf of the Purchaser or the Trustee
        in connection with enforcing any obligations of the Seller under this Agreement
        will be promptly reimbursed by the Seller.

      

      SECTION
        5.   Examination
        of Mortgage Files.
        

      

      (a)  On
        or
        before the Mortgage File Delivery Date, the Seller will have made the Mortgage
        Files available to the Purchaser or its agent for examination which may be
        at
        the offices of the Trustee or the Seller and/or the Seller’s custodian. The fact
        that the Purchaser or its agent has conducted or has failed to conduct any
        partial or complete examination of the Mortgage Files shall not affect the
        Purchaser’s rights to demand cure, repurchase, substitution or other relief as
        provided in this Agreement. In furtherance of the foregoing, the Seller shall
        make the Mortgage Files available to the Purchaser or its agent from time
        to
        time so as to permit the Purchaser to confirm the Seller’s compliance with the
        delivery and recordation requirements of this Agreement and the Pooling and
        Servicing Agreement. In addition, upon request of the Purchaser, the Seller
        agrees to provide to the Purchaser, the Underwriters and to any investors
        or
        prospective investors in the Certificates information regarding the Mortgage
        Loans (which may be at the offices of the Seller and/or the Seller’s custodian)
        and to make available personnel knowledgeable about the Mortgage Loans for
        discussions with the Purchaser, the Underwriters and such investors or
        prospective investors, upon reasonable request during regular business hours,
        sufficient to permit the Purchaser, the Underwriters and such investors or
        potential investors to conduct such due diligence as any such party reasonably
        believes is appropriate.

      

      (b)  Pursuant
        to the Pooling and Servicing Agreement, on the Closing Date the Custodian
        on
        behalf of the Trustee, for the benefit of the Certificateholders, will review
        items of the Mortgage Files as set forth on Exhibit
        1
        and will
        deliver to the Seller a certification in the form attached as Exhibit 1 to
        the
        Custodial Agreement.

      

      (c)  Pursuant
        to the Pooling and Servicing Agreement, the Trustee or the Custodian, on
        behalf
        of the Trustee, will review the Mortgage Files within 180 days of the Closing
        Date and will deliver to the Seller a final certification substantially in
        the
        form of Exhibit 2 to the Custodial Agreement. If the Custodian is unable
        to
        deliver a final certification with respect to the items listed in Exhibit
        2
        due to
        any document that is missing, has not been executed or is unrelated, determined
        on the basis of the Mortgagor name, original principal balance and loan number,
        to the Mortgage Loans identified in the Final Mortgage Loan Schedule (a
“Material
        Defect”),
        pursuant to Section 6 of the Custodial Agreement, the Custodian will notify
        the
        Trustee of such Material Defect and the Trustee shall notify the Seller of
        such
        Material Defect. The Seller shall correct or cure any such Material Defect
        within ninety (90) days from the date of notice from the Trustee of the Material
        Defect and if the Seller does not correct or cure such Material Defect within
        such period and such defect materially and adversely affects the interests
        of
        the Certificateholders in the related Mortgage Loan, the Seller will, in
        accordance with the terms of the Pooling and Servicing Agreement, within
        ninety
        (90) days of the date of notice, provide the Trustee with a Substitute Mortgage
        Loan (if within two (2) years of the Closing Date) or purchase the related
        Mortgage Loan at the applicable Purchase Price; provided,
        however,
        that if
        such defect relates solely to the inability of the Seller to deliver the
        original security instrument or intervening assignments thereof, or a certified
        copy because the originals of such documents, or a certified copy, have not
        been
        returned by the applicable jurisdiction, the Seller shall not be required
        to
        purchase such Mortgage Loan if the Seller delivers such original documents
        or
        certified copy promptly upon receipt, but in no event later than 360 days
        after
        the Closing Date. The foregoing repurchase obligation shall not apply in
        the
        event that the Seller cannot deliver such original or copy of any document
        submitted for recording to the appropriate recording office in the applicable
        jurisdiction because such document has not been returned by such office;
        provided that the Seller shall instead deliver a recording receipt of such
        recording office or, if such receipt is not available, a certificate of the
        Seller or a Servicing Officer confirming that such documents have been accepted
        for recording, and delivery to the Trustee shall be effected by the Seller
        within thirty (30) days of its receipt of the original recorded
        document.

      

      (d)  At
        the
        time of any substitution, the Seller shall deliver or cause to be delivered
        the
        Replacement Mortgage Loan, the related Mortgage File and any other documents
        and
        payments required to be delivered in connection with a substitution pursuant
        to
        the Pooling and Servicing Agreement. At the time of any purchase or
        substitution, the Trustee shall (i) assign to the Seller and cause the
        Custodian, on behalf of the Trustee, to release the documents (including,
        but
        not limited to, the Mortgage, Mortgage Note and other contents of the Mortgage
        File) in the possession of the Custodian, on behalf of the Trustee, relating
        to
        the Deleted Mortgage Loan and (ii) execute and deliver such instruments of
        transfer or assignment, in each case without recourse, as shall be necessary
        to
        vest in the Seller title to such Deleted Mortgage Loan.

      

      SECTION
        6. Recordation
        of Assignments of Mortgage.

      

      (a) The
        Seller will, promptly after the Closing Date, cause each Mortgage and each
        assignment of Mortgage from the Seller to the Trustee, and all unrecorded
        intervening assignments, if any, delivered on or prior to the Closing Date,
        to
        be recorded in all recording offices in the jurisdictions where the related
        Mortgaged Properties are located; provided,
        however,
        the
        Seller need not cause to be recorded any assignment for which (a) the related
        Mortgaged Property is located in (a) any jurisdiction under the laws of which,
        as evidenced by an Opinion of Counsel delivered by the 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 or (b) MERS is
        identified on the Mortgage or on a properly recorded assignment of the Mortgage
        as mortgagee of record solely as nominee for Seller and its successors and
        assigns; provided,
        however,
        notwithstanding the delivery of any Opinion of Counsel, each assignment of
        Mortgage shall be submitted for recording by the Seller in the manner described
        above, at no expense to the Trust Fund or Trustee, upon the earliest to occur
        of
        (i) reasonable direction by the Holders of Certificates evidencing Percentage
        Interests aggregating not less than twenty-five percent (25%) of the Trust,
        (ii)
        the occurrence of an Event of Default, (iii) the occurrence of a bankruptcy,
        insolvency or foreclosure relating to the Seller, (iv) the occurrence of
        a
        servicing transfer as described in Section 8.02 of the Pooling and Servicing
        Agreement or (v) with respect to any assignment of Mortgage, the occurrence
        of a
        bankruptcy, insolvency or foreclosure relating to the Mortgagor under the
        related Mortgage.

      

      (b) While
        each such Mortgage or assignment is being recorded, if necessary, the Seller
        shall leave or cause to be left with the Custodian, on behalf of the Trustee,
        a
        certified copy of such Mortgage or assignment. In the event that, within
        180
        days of the Closing Date, the Trustee has not been provided with an Opinion
        of
        Counsel as described above or received evidence of recording with respect
        to
        each Mortgage Loan delivered to the Purchaser pursuant to the terms hereof
        or as
        set forth above and the related Mortgage Loan is not a MOM Loan, the failure
        to
        provide evidence of recording or such Opinion of Counsel shall be considered
        a
        Material Defect, and the provisions of Section 5(c) and (d) shall apply.
        All
        customary recording fees and reasonable expenses relating to the recordation
        of
        the assignments of mortgage to the Trustee or the Opinion of Counsel, as
        the
        case may be, shall be borne by the Seller.

      

      SECTION
        7. Representations,
        Warranties and Covenants of the Seller.

      

      The
        Seller hereby represents and warrants to the Purchaser, as of the date hereof
        and as of the Closing Date, and covenants, that:

      

      (i) The
        Seller is a corporation duly organized, validly existing and in good standing
        under the laws of the State of Delaware and is qualified and in good standing
        to
        do business in each jurisdiction where such qualification is necessary, except
        where the failure so to qualify would not reasonably be expected to have
        a
        material adverse effect on the Seller’s business as presently conducted or on
        the Seller’s ability to enter into this Agreement and to consummate the
        transactions contemplated hereby.

      

      (ii) The
        Seller has duly authorized the execution, delivery and performance of this
        Agreement, has duly executed and delivered this Agreement, and this Agreement,
        assuming due authorization, execution and delivery by the Purchaser, constitutes
        a legal, valid and binding obligation of the Seller, enforceable against
        it in
        accordance with its terms except as the enforceability thereof may be limited
        by
        bankruptcy, insolvency or reorganization or by general principles of
        equity.

      

      (iii) The
        execution, delivery and performance of this Agreement by the Seller (x) does
        not
        conflict and will not conflict with, does not breach and will not result
        in a
        breach of and does not constitute and will not constitute a default (or an
        event, which with notice or lapse of time or both, would constitute a default)
        under (A) any terms or provisions of the organizational documents of the
        Seller,
        (B) any term or provision of any material agreement, contract, instrument
        or
        indenture, to which the Seller is a party or by which the Seller or any of
        its
        property is bound, or (C) any law, rule, regulation, order, judgment, writ,
        injunction or decree of any court or governmental authority having jurisdiction
        over the Seller or any of its property and (y) does not create or impose
        and
        will not result in the creation or imposition of any lien, charge or encumbrance
        which would have a material adverse effect upon the Mortgage Loans or any
        documents or instruments evidencing or securing the Mortgage Loans.

      

      (iv) No
        consent, approval, authorization or order of, registration or filing with,
        or
        notice on behalf of the Seller to any governmental authority or court is
        required, under federal laws or the laws of the State of New York, for the
        execution, delivery and performance by the Seller of, or compliance by the
        Seller with, this Agreement or the consummation by the Seller of any other
        transaction contemplated hereby and by the Pooling and Servicing Agreement;
        provided, however, that the Seller makes no representation or warranty regarding
        federal or state securities laws in connection with the sale or distribution
        of
        the Certificates.

      

      (v) This
        Agreement does not contain any untrue statement of material fact or omit
        to
        state a material fact necessary to make the statements contained herein not
        misleading. The written statements, reports and other documents prepared
        and
        furnished or to be prepared and furnished by the Seller pursuant to this
        Agreement or in connection with the transactions contemplated hereby taken
        in
        the aggregate do not contain any untrue statement of material fact or omit
        to
        state a material fact necessary to make the statements contained therein
        not
        misleading.

      

      (vi) The
        Seller is not in violation of, and the execution and delivery of this Agreement
        by the Seller and its performance and compliance with the terms of this
        Agreement will not constitute a violation with respect to, any order or decree
        of any court or any order or regulation of any federal, state, municipal
        or
        governmental agency having jurisdiction over the Seller or its assets, which
        violation might have consequences that would materially and adversely affect
        the
        condition (financial or otherwise) or the operation of the Seller or its
        assets
        or might have consequences that would materially and adversely affect the
        performance of its obligations and duties hereunder.

      

      (vii) 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.

      

      (viii) Immediately
        prior to the sale of the Mortgage Loans to the Purchaser as herein contemplated,
        the Seller was the owner of the related Mortgage and the indebtedness evidenced
        by the related Mortgage Note, and, upon the payment to the Seller of the
        Purchase Price, in the event that the Seller retains or has retained record
        title, the Seller shall retain such record title to each Mortgage, each related
        Mortgage Note and the related Mortgage Files with respect thereto in trust
        for
        the Purchaser as the owner thereof from and after the date hereof.

      

      (ix) There
        are
        no actions or proceedings against, or investigations known to it of, the
        Seller
        before any court, administrative or other tribunal (A) that might prohibit
        its
        entering into this Agreement, (B) seeking to prevent the sale of the Mortgage
        Loans by the Seller or the consummation of the transactions contemplated
        by this
        Agreement or (C) that might prohibit or materially and adversely affect the
        performance by the Seller of its obligations under, or validity or
        enforceability of, this Agreement.

      

      (x) The
        consummation of the transactions contemplated by this Agreement are in the
        ordinary course of business of the Seller, and the transfer, assignment and
        conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant
        to
        this Agreement are not subject to the bulk transfer or any similar statutory
        provisions in effect in any relevant jurisdiction, except any as may have
        been
        complied with.

      

      (xi) The
        Seller has not dealt with any broker, investment banker, agent or other person,
        except for the Purchaser or any of its affiliates, that may be entitled to
        any
        commission or compensation in connection with the sale of the Mortgage Loans
        (except that an entity that previously financed the Seller’s ownership of the
        Mortgage Loans may be entitled to a fee to release its security interest
        in the
        Mortgage Loans, which fee shall have been paid and which security interest
        shall
        have been released on or prior to the Closing Date).

      

      (xii) There
        is
        no litigation currently pending or, to the best of the Seller’s knowledge
        without independent investigation, threatened against the Seller that would
        reasonably be expected to adversely affect the transfer of the Mortgage Loans,
        the issuance of the Certificates or the execution, delivery, performance
        or
        enforceability of this Agreement, or that would result in a material adverse
        change in the financial condition of the Seller.

      

      (xiii) The Seller
        is a HUD approved mortgagee pursuant to Section 203 of the National Housing
        Act.

      

      SECTION
        8.  Representations
        and Warranties of the Seller Relating to the Mortgage Loans.

      

      The
        Seller hereby represents and warrants to the Purchaser that as to each Mortgage
        Loan as of the Closing Date:

      

      (i) Information
        provided to the Rating Agencies, including the loan level detail, is true
        and
        correct according to the Rating Agency requirements;

      

      (ii) No
        fraud
        has taken place on the part of the Mortgagor or any other party involved
        in the
        origination or servicing of the Mortgage Loan;

      

      (iii) No
        Monthly Payment required to be made under any Mortgage Loan has been, or
        will
        be, contractually delinquent by one month or more on, or at any time preceding,
        the date such Mortgage Loan was purchased by the Seller;

      

      (iv) Neither
        the Seller nor the related originator of the Mortgage Loan has advanced any
        Monthly Payment required under the terms of the Mortgage Note;

      

      (v) There
        are
        no delinquent taxes, assessment liens or insurance premiums affecting the
        related Mortgaged Property;

      

      (vi) The
        terms
        of the Mortgage Note and the Mortgage have not been materially impaired,
        waived,
        altered or modified in any respect, except by written instruments, recorded
        in
        the applicable public recording office if necessary to maintain the lien
        priority of the Mortgage. The substance of any such waiver, alteration or
        modification has been approved by the title insurer, to the extent required
        by
        the related policy. No Mortgagor has been released, in whole or in part,
        except
        in connection with an assumption agreement (approved by the title insurer
        to the
        extent required by the policy) and which assumption agreement has been delivered
        to the Trustee;

      

      (vii) The
        Mortgaged Property is insured against loss by fire and hazards of extended
        coverage (excluding earthquake insurance) in an amount which is at least
        equal
        to the lesser of (i) the amount necessary to compensate for any damage or
        loss
        to the improvements which are a part of such property on a replacement cost
        basis or (ii) the outstanding principal balance of the Mortgage Loan. If
        the
        Mortgaged Property is in an area identified on a flood hazard map or flood
        insurance rate map issued by the Federal Emergency Management Agency as having
        special flood hazards (and such flood insurance has been made available),
        a
        flood insurance policy meeting the requirements of the current guidelines
        of the
        Federal Insurance Administration is in effect. All such insurance policies
        contain a standard mortgagee clause naming the originator of the Mortgage
        Loan,
        its successors and assigns as mortgagee and the Seller has not engaged in
        any
        act or omission which would impair the coverage of any such insurance policies.
        Except as may be limited by applicable law, the Mortgage obligates the Mortgagor
        thereunder to maintain all such insurance at the Mortgagor's cost and expense,
        and on the Mortgagor's failure to do so, authorizes the holder of the Mortgage
        to maintain such insurance at Mortgagor's cost and expense and to seek
        reimbursement therefor from the Mortgagor;

      

      (viii) Any
        and
        all requirements of any federal, state or local law including, without
        limitation, usury, truth in lending, real estate settlement procedures, consumer
        credit protection, equal credit opportunity, fair housing, predatory, fair
        lending or disclosure laws applicable to the origination and servicing of
        the
        Mortgage Loans have been complied with in all material respects, and the
        consummation of the transaction contemplated hereby will not involve the
        violation of any such laws;

      

      (ix) The
        Mortgage has not been satisfied, cancelled, subordinated or rescinded, in
        whole
        or in part, and the Mortgaged Property has not been released from the lien
        of
        the Mortgage, in whole or in part, nor has any instrument been executed that
        would effect any such satisfaction, cancellation, subordination, rescission
        or
        release;

      

      (x) 
        The
        Mortgage was recorded or was submitted for recording in accordance with all
        applicable laws and is a valid, existing and enforceable perfected first
        lien on
        the Mortgaged Property including all improvements on the Mortgaged Property,
        subject only to (a) the lien of the current real property taxes and (b)
        covenants, conditions and restrictions, rights of way and
        easements;

      

      (xi) The
        Mortgage Note and the related Mortgage are genuine and each is the legal,
        valid
        and binding obligation of the maker thereof, insured under the related title
        policy, and enforceable in accordance with its terms, except to the extent
        that
        the enforceability thereof may be limited by a bankruptcy, insolvency or
        reorganization;

      

      (xii) The
        Seller is the sole legal, beneficial and equitable owner of the Mortgage
        Note
        and the Mortgage and has the full right to convey, transfer and sell the
        Mortgage Loan to the Purchaser free and clear of any encumbrance, equity,
        lien,
        pledge, charge, claim or security interest and immediately upon the sale,
        assignment and endorsement of the Mortgage Loans from the Seller to the
        Purchaser, the Purchaser shall have good and indefeasible title to and be
        the
        sole legal owner of the Mortgage Loans subject only to any encumbrance, equity,
        lien, pledge, charge, claim or security interest arising out of the Purchaser’s
        actions;

      

      (xiii) Each
        Mortgage Loan is covered by a valid and binding American Land Title Association
        lender's title insurance policy issued by a title insurer qualified to do
        business in the jurisdiction where the Mortgaged Property is located, which
        title insurance policy is generally acceptable to Fannie Mae and Freddie
        Mac. No
        claims have been filed under such lender's title insurance policy, and the
        Seller has not done, by act or omission, anything that would impair the coverage
        of the lender's title insurance policy;

      

      (xiv) There
        is
        no material default, breach, violation event or event of acceleration existing
        under the Mortgage or the Mortgage Note and no event which, with the passage
        of
        time or with notice and the expiration of any grace or cure period, would
        constitute a material default, breach, violation or event of acceleration,
        and
        the Seller has not, nor has its predecessors, waived any material default,
        breach, violation or event of acceleration;

      

      (xv) There
        are
        no mechanics' or similar liens or claims which have been filed for work,
        labor
        or material provided to the related Mortgaged Property prior to the origination
        of the Mortgage Loan which are or may be liens prior to, or equal or coordinate
        with, the lien of the related Mortgage, except as may be disclosed in the
        related title policy;

      

      (xvi) Except
        with respect to approximately 0.54% of the Mortgage Loans by aggregate principal
        balance as of the Cut-off Date, which are balloon loans and approximately
        89.08%
        of the Mortgage Loans by aggregate principal balance as of the Cut-off Date,
        which are interest only loans, each Mortgage Note is payable on the first
        day of
        each month in equal monthly installments of principal and interest (subject
        to
        adjustment in the case of the adjustable rate Mortgage Loans), with interest
        calculated on a 30/360 basis and payable in arrears, sufficient to amortize
        the
        Mortgage Loan fully by the stated maturity date over an original term from
        commencement of amortization to not more than thirty (30) years. No Mortgage
        Loan permits negative amortization;

      

      (xvii) The
        servicing practices used in connection with the servicing of the Mortgage
        Loans
        have been in all respects reasonable and customary in the mortgage servicing
        industry of like mortgage loan servicers, servicing mortgage loans similar
        to
        the Mortgage Loans in the same jurisdiction as the Mortgaged
        Property;

      

      (xviii) At
        the
        time of origination of the Mortgage Loan there was no proceeding pending
        for the
        total or partial condemnation of the Mortgaged Property and, as of the date
        such
        Mortgage Loan was purchased by the Purchaser, to the best of the Purchaser’s
        knowledge there is no proceeding pending for the total or partial condemnation
        of the Mortgaged Property;

      

      (xix) The
        Mortgage and related Mortgage Note contain customary and enforceable provisions
        such as to render the rights and remedies of the holder thereof adequate
        for the
        realization against the Mortgaged Property of the benefits of the security
        provided thereby, including, (a) in the case of a Mortgage designated as
        a deed
        of trust, by trustee's sale, and (b) otherwise by judicial
        foreclosure;

      

      (xx) The
        Mortgage Note is not and has not been secured by any collateral except the
        lien
        of the related Mortgage referred to in subsection (x) above;

      

      (xxi) In
        the
        event the Mortgage constitutes a deed of trust, a trustee, duly qualified
        under
        applicable law to serve as such, has been properly designated and currently
        so
        serves and is named in the Mortgage, and no fees or expenses are or will
        become
        payable by the Seller to the trustee under the deed of trust, except in
        connection with a trustee's sale after default by the Mortgagor;

      

      (xxii) The
        Mortgage Loan is not subject to any valid right of rescission, set-off,
        counterclaim or defense, including without limitation the defense of usury,
        nor
        will the operation of any of the terms of the Mortgage Note or the Mortgage,
        or
        the exercise of any right thereunder, render either the Mortgage Note or
        the
        Mortgage unenforceable, in whole or in part, or subject to any such right
        of
        rescission, set-off, counterclaim or defense, including without limitation
        the
        defense of usury, and no such right of rescission, set-off, counterclaim
        or
        defense has been asserted with respect thereto;

      

      (xxiii) The
        Mortgaged Property is free of material damage and in good repair, excepting
        therefrom any Mortgage Loan subject to an escrow withhold as shown on the
        Mortgage Loan Schedule;

      

      (xxiv) All
        of
        the improvements which were included in determining the appraised value of
        the
        Mortgaged Property lie wholly within the Mortgaged Property's boundary lines
        and
        no improvements on adjoining properties encroach upon the Mortgaged Property,
        excepting therefrom: (i) any encroachment insured against in the lender's
        title
        insurance policy identified in clause (xiii) above, (ii) any encroachment
        generally acceptable to mortgage loan originators doing business in the same
        jurisdiction as the Mortgaged Property, and (iii) any encroachment which
        does
        not materially interfere with the benefits of the security intended to be
        provided by such Mortgage;

      

      (xxv) All
        parties to the Mortgage Note had the legal capacity to execute the Mortgage
        Note
        and the Mortgage, and the Mortgage Note and the Mortgage have been duly executed
        by such parties;

      

      (xxvi) To
        the
        best of the Seller’s knowledge, at the time of origination of the Mortgage Loan,
        no appraised improvement located on or being part of the Mortgaged Property
        was
        in violation of any applicable zoning law or regulation and all inspections,
        licenses and certificates required in connection with the origination of
        any
        Mortgage Loan with respect to the occupancy of the Mortgaged Property, have
        been
        made or obtained from the appropriate authorities;

      

      (xxvii) No
        Mortgagor has notified the Seller of any relief requested or allowed under
        the
        Servicemembers Civil Relief Act;

      

      (xxviii) All
        parties which have held an interest in the Mortgage Loan are (or during the
        period in which they held and disposed of such interest, were) (1) in compliance
        with any and all applicable licensing requirements of the state wherein the
        Mortgaged Property is located, (2) organized under the laws of such state,
        (3)
        qualified to do business in such state, (4) a federal savings and loan
        association or national bank, (5) not doing business in such state, or (6)
        exempt from the applicable licensing requirements of such state;

      

      (xxix) The
        Mortgage File contains an appraisal of the related Mortgaged Property which
        was
        made prior to the approval of the Mortgage Loan by a qualified appraiser,
        duly
        appointed by the related originator and was made in accordance with the
        Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and
        the
        Uniform Standards of Professional Appraisal Practice;

      

      (xxx) Except
        as
        may otherwise be limited by applicable law, the Mortgage contains an enforceable
        provision for the acceleration of the payment of the unpaid principal balance
        of
        the Mortgage Loan in the event that the Mortgaged Property is sold or
        transferred without the prior written consent of the Mortgagee
        thereunder;

      

      (xxxi) The
        Mortgage Loan does not contain any provision which would constitute a “buydown”
provision and pursuant to which Monthly Payments are paid or partially paid
        with
        funds deposited in a separate account established by the related originator,
        the
        Mortgagor or anyone on behalf of the Mortgagor, or paid by any source other
        than
        the Mortgagor. The Mortgage Loan is not a “graduated payment mortgage loan” and
        the Mortgage loan does not have a shared appreciation or other contingent
        interest feature;

      

      (xxxii) To
        the
        best of the Seller’s knowledge there is no action or proceeding directly
        involving the Mortgaged Property presently pending in which compliance with
        any
        environmental law, rule or regulation is at issue and the Seller has received
        no
        notice of any condition at the Mortgaged Property which is reasonably likely
        to
        give rise to an action or proceeding in which compliance with any environmental
        law, rule or regulation is at issue;

      

      (xxxiii) Each
        Mortgage Loan is an obligation which is principally secured by an interest
        in
        real property within the meaning of Treasury Regulation section 1.860G-2(a);
        

      

      (xxxiv) Each
        Mortgage Loan is directly secured by a first lien on, and consists of a single
        parcel of, real property with a detached one-to-four family residence erected
        thereon, a townhouse or an individual condominium unit in a condominium project,
        or an individual unit in a planned unit development (“PUD”). No residence or
        dwelling is a leasehold, mobile home or a manufactured dwelling unless it
        is an
        Acceptable Manufactured Dwelling. An “Acceptable Manufactured Dwelling” is a
        manufactured dwelling, which is permanently affixed to a foundation and treated
        as “real estate” under applicable law. No Mortgaged Property is used for
        commercial purposes. Mortgaged Properties which contain a home office shall
        not
        be considered as being used for commercial purposes as long as the Mortgaged
        Property has not been altered for commercial purposes and is not storing
        any
        chemicals or raw materials other than those commonly used for homeowner repair,
        maintenance and/or household purposes;

      

      (xxxv) The
        Mortgage Interest Rate payable by the Mortgagor with respect to the Adjustable
        Rate Mortgage Loans is subject to adjustment at the time and in the amounts
        as
        are set forth in the related Mortgage Note; 

      

      (xxxvi)
        The first scheduled Monthly Payment under the terms of each Mortgage Note
        was
        received by the servicer servicing such Mortgage Loan by the 30th day following
        the related due date;

      

      (xxxvii)
        To the best of the Seller’s knowledge, the servicer for each Mortgage Loan has
        accurately and fully reported its borrower credit files to each of the credit
        repositories in a timely manner;

      

      (xxxviii)
        No Mortgage Loan is subject to the Home Ownership and Equity Protection Act
        of
        1994 (“HOEPA”) or any comparable law and no Mortgage Loan is classified and/or
        defined as a “high cost”, “covered”, (excluding home loans defined as “covered
        home loans” in the New Jersey Home Ownership Security Act of 2002 that were
        originated between November 26, 2003 and July 7, 2004), “high risk home” or
“predatory” loan under any other state, federal or local law or regulation or
        ordinance (or a similarly classified loan using different terminology under
        a
        law imposing heightened regulatory scrutiny or additional legal liability
        for
        residential mortgage loans having high interest rates, points and/or
        fees);

      

      (xxxix) No
        Mortgage Loan was selected from the mortgage loans in the Seller’s portfolio in
        a manner so as to affect adversely the interests of the Purchaser;

      

      (xl) Each
        Mortgage File contains a full appraisal on form 1004 or 2055 with an interior
        inspection (or the equivalent form for two-to four-family and investor
        properties), or on a similar alternate form which includes substantially
        similar
        information to that required such forms, as applicable;

      

      (xli) Each
        Mortgage Loan is and will be a mortgage loan arising out of the originator’s
        practice in accordance with the originator’s underwriting
        guidelines;

      

      (xlii) 
        As of
        the Closing Date, the Seller has no knowledge of any fact that should lead
        it to
        expect that the Mortgage Loan will not be paid in full when due;

      

      (xliii) No
        Mortgage Loan is a “high cost loan” or a “covered loan”, as applicable (as such
        terms are defined in the then current Standard & Poor’s LEVELS Version 5.7
        Glossary Revised, Appendix E;

      

      (xliv) No
        Mortgage Loan originated on or after October 1, 2002 through March 6, 2003
        is
        governed by the Georgia Fair Lending Act;

       

      (xlv) The
        prepayment penalties included in the transaction are enforceable and were
        originated in compliance with all applicable federal, state and local
        laws;

       

      (xlvi) The
        information set forth in the applicable part of the Mortgage Loan Schedule
        relating to the existence of a Prepayment Charge is complete, true and correct
        in all material respects at the date or dates on which such information is
        furnished respecting with such information is furnished, and each Prepayment
        Charge is permissible and enforceable in accordance with its terms upon the
        mortgagor's full and voluntary principal prepayment under applicable federal,
        state or local law, except to the extent that: (1) the enforceability thereof
        may be limited by bankruptcy, insolvency, moratorium, receivership and other
        similar laws relating to creditors' rights; (2) the collectability thereof
        may
        be limited due to acceleration in connection with a foreclosure or other
        involuntary prepayment; or (3) subsequent changes in applicable law may limit
        or
        prohibit enforceability thereof; and

       

      (xlvii) Each
        mortgage loan and prepayment penalty associated with the mortgage loan at
        origination complied in all material respects with applicable local, state
        and
        federal laws, including, without limitation, usury, equal credit opportunity,
        real estate settlement procedures, truth-in-lending and disclosure laws,
        and the
        consummation of the transactions contemplated hereby will not involve the
        violation of any such laws.

      

      SECTION
        9. Repurchase
        Obligation for Defective Documentation and for Breach of Representation and
        Warranty.

      

      (a)  The
        representations and warranties contained in Section 8 shall not be impaired
        by
        any review and examination of loan files or other documents evidencing or
        relating to the Mortgage Loans or any failure on the part of the Seller or
        the
        Purchaser to review or examine such documents and shall inure to the benefit
        of
        any assignee, transferee or designee of the Purchaser, including the Trustee
        for
        the benefit of the Certificateholders. With respect to the representations
        and
        warranties contained herein as to which the Seller has no knowledge, if it
        is
        discovered that the substance of any such representation and warranty was
        inaccurate as of the date such representation and warranty was made or deemed
        to
        be made, and such inaccuracy materially and adversely affects the value of
        the
        related Mortgage Loan or the interest therein of the Purchaser or the
        Purchaser’s assignee, transferee or designee, then notwithstanding the lack of
        knowledge by the Seller with respect to the substance of such representation
        and
        warranty being inaccurate at the time the representation and warranty was
        made,
        the Seller shall take such action described in the following paragraph in
        respect of such Mortgage Loan. 

      

      Upon
        discovery by the Seller, the Purchaser or any assignee, transferee or designee
        of the Purchaser of any materially defective document in, or that any material
        document was not transferred by the Seller (as listed on an exception report
        attached to the initial certification prepared by the Custodian, on behalf
        of
        the Trustee), or of a breach of any of the representations and warranties
        contained in Section 8 that materially and adversely affects the value of
        any
        Mortgage Loan or the interest therein of the Purchaser or the Purchaser’s
        assignee, transferee or designee, the party discovering such breach shall
        give
        prompt written notice to the Seller. Within 365 days of its discovery or
        its
        receipt of notice of any such missing documentation that was not transferred
        by
        the Seller as described above, or of materially defective documentation,
        or
        within 120 days of any such breach of a representation and warranty, the
        Seller
        promptly shall deliver such missing document or cure such defect or breach
        in
        all material respects or, in the event the Seller cannot deliver such missing
        document or cannot cure such defect or breach, the Seller shall, within 365
        days
        of its discovery or receipt of notice of any such missing or materially
        defective documentation or within 120 days of any such breach of a
        representation and warranty, either (i) repurchase the affected Mortgage
        Loan at
        the Purchase Price (as such term is defined in the Pooling and Servicing
        Agreement) or (ii) pursuant to the provisions of the Pooling and Servicing
        Agreement, cause the removal of such Mortgage Loan from the Trust Fund and
        substitute one or more Replacement Mortgage Loans. The Seller shall amend
        the
        Closing Schedule to reflect the withdrawal of such Mortgage Loan from the
        terms
        of this Agreement and the Pooling and Servicing Agreement. The Seller shall
        deliver to the Purchaser such amended Closing Schedule and shall deliver
        such
        other documents as are required by this Agreement or the Pooling and Servicing
        Agreement within five (5) days of any such amendment. Any repurchase pursuant
        to
        this Section 9(a) shall be accomplished by transfer to an account designated
        by
        the Purchaser of the amount of the Purchase Price in accordance with Section
        2.03 of the Pooling and Servicing Agreement. Any repurchase required by this
        Section shall be made in a manner consistent with Section 2.03 of the Pooling
        and Servicing Agreement. 

      

      (b)  If
        the
        representation made by the Seller in Section 7(xiii) is breached, the Seller
        shall not have the right or obligation to cure, substitute or repurchase
        the
        affected Mortgage Loan but shall remit to the Servicer servicing such Mortgage
        Loan for deposit in the Collection Account, prior to the next succeeding
        Servicer Remittance Date, the amount of the Prepayment Charge indicated on
        the
        applicable part of the Mortgage Loan Schedule to be due from the Mortgagor
        in
        the circumstances less any amount collected and remitted to such Servicer
        for
        deposit into the Collection Account.

      

      (c)  It
        is
        understood and agreed that the obligations of the Seller set forth in this
        Section 9 to cure or repurchase a defective Mortgage Loan (and to make payments
        pursuant to Section 9(b)) constitute the sole remedies of the Purchaser against
        the Seller respecting a missing document or a breach of the representations
        and
        warranties contained in Section 8. 

      

      SECTION
        10. Closing;
        Payment for the Mortgage Loans. The
        closing of the purchase and sale of the Mortgage Loans shall be held at the
        New
        York City office of Thacher Proffitt & Wood llp
        at 10:00
        a.m. New York City time on the Closing Date.

      

      The
        closing shall be subject to each of the following conditions:

      

      (a) All
        of
        the representations and warranties of the Seller under this Agreement shall
        be
        true and correct in all material respects as of the date as of which they
        are
        made and no event shall have occurred which, with notice or the passage of
        time,
        would constitute a default under this Agreement;

      

      (b) The
        Purchaser shall have received, or the attorneys of the Purchaser shall have
        received in escrow (to be released from escrow at the time of closing), all
        Closing Documents as specified in Section 11 of this Agreement, in such forms
        as
        are agreed upon and acceptable to the Purchaser, duly executed by all
        signatories other than the Purchaser as required pursuant to the respective
        terms thereof;

      

      (c) The
        Seller shall have delivered or caused to be delivered and released to the
        Purchaser or to its designee, all documents (including without limitation,
        the
        Mortgage Loans) required to be so delivered by the Purchaser pursuant to
        Section
        2.01 of the Pooling and Servicing Agreement; and

      

      (d) All
        other
        terms and conditions of this Agreement and the Pooling and Servicing Agreement
        shall have been complied with.

      

      Subject
        to the foregoing conditions, the Purchaser shall deliver or cause to be
        delivered to the Seller on the Closing Date, against delivery and release
        by the
        Seller to the Trustee of all documents required pursuant to the Pooling and
        Servicing Agreement, the consideration for the Mortgage Loans as specified
        in
        Section 3 of this Agreement.

      

      SECTION
        11. Closing
        Documents.
        Without
        limiting the generality of Section 8 hereof, the closing shall be subject
        to
        delivery of each of the following documents:

      

      (a) An
        Officers’ Certificate of the Seller, dated the Closing Date, upon which the
        Purchaser and the Underwriters may rely with respect to certain facts regarding
        the sale of the Mortgage Loans by the Seller to the Purchaser;

      

      (b) An
        Opinion of Counsel of the Seller, dated the Closing Date and addressed to
        the
        Purchaser and the Underwriters;

      

      (c) Such
        opinions of counsel as the Rating Agencies or the Trustee may request in
        connection with the sale of the Mortgage Loans by the Seller to the Purchaser
        or
        the Seller’s execution and delivery of, or performance under, this Agreement;
        and

      

      (d) Such
        further information, certificates, opinions and documents as the Purchaser
        or
        the Underwriters may reasonably request.

      

      SECTION
        12. Costs.
        The
        Seller shall pay (or shall reimburse the Purchaser or any other Person to
        the
        extent that the Purchaser or such other Person shall pay) all costs and expenses
        incurred in connection with the transfer and delivery of the Mortgage Loans,
        including without limitation, fees for title policy endorsements and
        continuations, the fees and expenses of the Seller’s accountants and attorneys,
        the costs and expenses incurred in connection with producing the Servicer’s loan
        loss, foreclosure and delinquency experience, and the costs and expenses
        incurred in connection with obtaining the documents referred to in Sections
        11(b) and 11(c), the costs and expenses of printing (or otherwise reproducing)
        and delivering this Agreement, the Pooling and Servicing Agreement, the
        Certificates, the prospectus and prospectus supplement, and any private
        placement memorandum relating to the Certificates and other related documents,
        the initial fees, costs and expenses of the Trustee and its counsel, the
        fees
        and expenses of the Purchaser’s counsel in connection with the preparation of
        all documents relating to the securitization of the Mortgage Loans, the filing
        fee charged by the Securities and Exchange Commission for registration of
        the
        Certificates and the fees charged by any rating agency to rate the Certificates.
        The Seller shall pay all costs and expenses related to recording the Assignments
        of Mortgage. All other costs and expenses in connection with the transactions
        contemplated hereunder shall be borne by the party incurring such
        expense.

      

      SECTION
        13. Mandatory
        Delivery; Grant of Security Interest.
        The
        sale and delivery on the Closing Date of the Mortgage Loans described on
        the
        Mortgage Loan Schedule in accordance with the terms and conditions of this
        Agreement is mandatory. It is specifically understood and agreed that each
        Mortgage Loan is unique and identifiable on the date hereof and that an award
        of
        money damages would be insufficient to compensate the Purchaser for the losses
        and damages incurred by the Purchaser in the event of the Seller’s failure to
        deliver the Mortgage Loans on or before the Closing Date. The Seller hereby
        grants to the Purchaser a lien on and a continuing security interest in the
        Seller’s interest in each Mortgage Loan and each document and instrument
        evidencing each such Mortgage Loan to secure the performance by the Seller
        of
        its obligation hereunder, and the Seller agrees that it holds such Mortgage
        Loans in custody for the Purchaser, subject to the Purchaser’s (i) right, prior
        to the Closing Date, to reject any Mortgage Loan to the extent permitted
        by this
        Agreement and (ii) obligation to deliver or cause to be delivered the
        consideration for the Mortgage Loans pursuant to Section 3 hereof. Any Mortgage
        Loans rejected by the Purchaser shall concurrently therewith be released
        from
        the security interest created hereby. All rights and remedies of the Purchaser
        under this Agreement are distinct from, and cumulative with, any other rights
        or
        remedies under this Agreement or afforded by law or equity and all such rights
        and remedies may be exercised concurrently, independently or
        successively.

      

      Notwithstanding
        the foregoing, if on the Closing Date, each of the conditions set forth in
        Section 10 hereof shall have been satisfied and the Purchaser shall not have
        paid or caused to be paid the Purchase Price, or any such condition shall
        not
        have been waived or satisfied and the Purchaser determines not to pay or
        cause
        to be paid the Purchase Price, the Purchaser shall immediately effect the
        redelivery of the Mortgage Loans, if delivery to the Purchaser has occurred,
        and
        the security interest created by this Section 13 shall be deemed to have
        been
        released.

      

      SECTION
        14. Notices.
        All
        demands, notices and communications hereunder shall be in writing and shall
        be
        deemed to have been duly given if personally delivered to or mailed by
        registered mail, postage prepaid, or transmitted by fax and, receipt of which
        is
        confirmed by telephone, if to the Purchaser, addressed to the Purchaser at
        Two
        World Financial Center, Building B, 21st
        Floor,
        New York, New York 10281, fax: (212) 667-1024, Attention: Legal Department
        (NAAC
        2006-AR3), or such other address as may hereafter be furnished to the Seller
        in
        writing by the Purchaser; and if to the Seller, addressed to the Seller at
        Two
        World Financial Center, Building B, 21st
        Floor,
        New York, New York 10281, fax: (212) 667-9680, Attention: Brett Marvin, or
        to
        such other address as the Seller may designate in writing to the
        Purchaser.

      

      SECTION
        15. Severability
        of Provisions.
        Any
        part, provision, representation or warranty of this Agreement that is prohibited
        or that is held to be void or unenforceable shall be ineffective to the extent
        of such prohibition or unenforceability without invalidating the remaining
        provisions hereof. Any part, provision, representation or warranty of this
        Agreement that is prohibited or unenforceable or is held to be void or
        unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
        to the extent of such prohibition or unenforceability without invalidating
        the
        remaining provisions hereof, and any such prohibition or unenforceability
        in any
        jurisdiction as to any Mortgage Loan shall not invalidate or render
        unenforceable such provision in any other jurisdiction. To the extent permitted
        by applicable law, the parties hereto waive any provision of law which prohibits
        or renders void or unenforceable any provision hereof.

      

      SECTION
        16. Agreement
        of Parties.
        The
        Seller and the Purchaser each agree to execute and deliver such instruments
        and
        take such actions as either of the others may, from time to time, reasonably
        request in order to effectuate the purpose and to carry out the terms of
        this
        Agreement and the Pooling and Servicing Agreement.

      

      SECTION
        17. Survival.
        The
        Seller agrees that the representations, warranties and agreements made by
        it
        herein and in any certificate or other instrument delivered pursuant hereto
        shall be deemed to be relied upon by the Purchaser, notwithstanding any
        investigation heretofore or hereafter made by the Purchaser or on its behalf,
        and that the representations, warranties and agreements made by the Seller
        herein or in any such certificate or other instrument shall survive the delivery
        of and payment for the Mortgage Loans and shall continue in full force and
        effect, notwithstanding any restrictive or qualified endorsement on the Mortgage
        Notes and notwithstanding subsequent termination of this Agreement, the Pooling
        and Servicing Agreement or the Trust Fund.

      

      SECTION
        18. GOVERNING
        LAW.
        THIS AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF
        THE
        PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        (EXCLUDING THE CHOICE OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF NEW
        YORK.
        THE PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW
        YORK
        GENERAL OBLIGATIONS LAW SHALL GOVERN.

      

      SECTION
        19. Miscellaneous.
        This
        Agreement may be executed in two or more counterparts, each of which when
        so
        executed and delivered shall be an original, but all of which together shall
        constitute one and the same instrument. This Agreement shall inure to the
        benefit of and be binding upon the parties hereto and their respective
        successors and assigns. This Agreement supersedes all prior agreements and
        understandings relating to the subject matter hereof. Neither this Agreement
        nor
        any term hereof may be changed, waived, discharged or terminated orally,
        but
        only by an instrument in writing signed by the party against whom enforcement
        of
        the change, waiver, discharge or termination is sought. The headings in this
        Agreement are for purposes of reference only and shall not limit or otherwise
        affect the meaning hereof.

      

      It
        is the
        express intent of the parties hereto that the conveyance of the Mortgage
        Loans
        by the Seller to the Purchaser as provided in Section 4 hereof be, and be
        construed as, a sale of the Mortgage Loans by the Seller to the Purchaser
        and
        not as a pledge of the Mortgage Loans by the Seller to the Purchaser to secure
        a
        debt or other obligation of the Seller. However, in the event that,
        notwithstanding the aforementioned intent of the parties, the Mortgage Loans
        are
        held to be property of the Seller, then (a) it is the express intent of the
        parties that such conveyance be deemed a pledge of the Mortgage Loans by
        the
        Seller to the Purchaser to secure a debt or other obligation of the Seller
        and
        (b) (1) this Agreement shall also be deemed to be a security agreement within
        the meaning of Articles 8 and 9 of the New York Uniform Commercial Code;
        (2) the
        conveyance provided for in Section 4 hereof shall be deemed to be a grant
        by the
        Seller to the Purchaser of a security interest in all of the Seller’s right,
        title and interest in and to the Mortgage Loans and all amounts payable to
        the
        holders of the Mortgage Loans in accordance with the terms thereof and all
        proceeds of the conversion, voluntary or involuntary, of the foregoing into
        cash, instruments, securities or other property, including without limitation
        all amounts, other than investment earnings, from time to time held or invested
        in the Collection Account whether in the form of cash, instruments, securities
        or other property; (3) the possession by the Purchaser or its agent of Mortgage
        Notes, the related Mortgages and such other items of property that constitute
        instruments, money, negotiable documents or chattel paper shall be deemed
        to be
“possession by the secured party” for purposes of perfecting the security
        interest pursuant to Section 9-305 of the New York Uniform Commercial Code;
        and
        (4) notifications to persons holding such property and acknowledgments, receipts
        or confirmations from persons holding such property shall be deemed
        notifications to, or acknowledgments, receipts or confirmations from, financial
        intermediaries, bailees or agents (as applicable) of the Purchaser for the
        purpose of perfecting such security interest under applicable law. Any
        assignment of the interest of the Purchaser pursuant to Section 4(d) hereof
        shall also be deemed to be an assignment of any security interest created
        hereby. The Seller and the Purchaser shall, to the extent consistent with
        this
        Agreement, take such actions as may be necessary to ensure that, if this
        Agreement were deemed to create a security interest in the Mortgage Loans,
        such
        security interest would be deemed to be a perfected security interest of
        first
        priority under applicable law and will be maintained as such throughout the
        term
        of this Agreement and the Pooling and Servicing Agreement.

      

      

      

      [Signature
        page to follow]

       

      ___________________

        
          *
            Please
            contact Nomura Credit & Capital, Inc. for pricing
            information

        

      

      

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

      
        	 	 	 
	 	
                NOMURA
                  CREDIT
                  & CAPITAL, INC.

              
	 
 	 
 	
                
 

                 

              
	 	  	By:
                /s/
                Timothy P.F. Crowley 
	 	
                

              
	 	
                Name: Timothy
                  P.F. Crowley 

                Title: Vice
                  President

              

      

       

      
        	 	 	 
	 	
                NOMURA
                  ASSET
                  ACCEPTANCE CORPORATION

              
	 
 	 
 	
                 

                
 

              
	 	  	By:
                /s/ John P. Graham
	 	
                

              
	 	
                Name: 
                  John P. Graham

                Title: 
                  President

              

      

      

       

      EXHIBIT
        1

      

      CONTENTS
        OF MORTGAGE FILE

      

      With
        respect to each Mortgage Loan, the Mortgage File shall include each of the
        following items, which shall be available for inspection by the Purchaser
        or its
        designee, and which shall be delivered to the Purchaser or its designee pursuant
        to the terms of the Agreement.

       

      (a)  the
        original Mortgage Note (including all riders thereto) bearing all intervening
        endorsements necessary to show a complete chain of endorsements from the
        original payee, endorsed in blank, via
        original signature,
        and, if
        previously endorsed, signed in the name of the last endorsee by a duly qualified
        officer of the last endorsee. If
        the
        Mortgage Loan was acquired by the last endorsee in a merger, the endorsement
        must be by “[name of last endorsee], successor by merger to [name of
        predecessor]”. If the Mortgage Loan was acquired or originated by the last
        endorsee while doing business under another name, the endorsement must be
        by
“[name of last endorsee], formerly known as [previous name]”;

       

      (b)  the
        original Assignment of Mortgage executed in blank;

       

      (c)  the
        original of any guarantee executed in connection with the Mortgage Note,
        if
        any;

       

      (d)  the
        original Mortgage (including all riders thereto) with evidence of recording
        thereon and the original recorded power of attorney, if the Mortgage was
        executed pursuant to a power of attorney, with evidence of recording thereon,
        and in the case of each MOM Loan, the original Mortgage, noting the presence
        of
        the MIN of the Mortgage Loan and either language indicating that the Mortgage
        Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan at origination,
        the original Mortgage and the assignment thereof to MERS®, with evidence of
        recording indicated thereon; or, if the original Mortgage with evidence of
        recording thereon has not been returned by the public recording office where
        such Mortgage has been delivered for recordation or such Mortgage has been
        lost
        or such public recording office retains the original recorded Mortgage, a
        photocopy of such Mortgage, together with (i) in the case of a delay caused
        by
        the public recording office, an Officer’s Certificate of the title insurer
        insuring the Mortgage, the escrow agent, the seller or the Servicer servicing
        such Mortgage Loan stating that such Mortgage has been delivered to the
        appropriate public recording office for recordation and that the original
        recorded Mortgage or a copy of such Mortgage certified by such public recording
        office to be a true and complete copy of the original recorded Mortgage will
        be
        promptly delivered to the Custodian upon receipt thereof by the party delivering
        the Officer’s Certificate or by the Servicer; or (ii) in the case of a Mortgage
        where a public recording office retains the original recorded Mortgage or
        in the
        case where a Mortgage is lost after recordation in a public recording office,
        a
        copy of such Mortgage with the recording information thereon certified by
        such
        public recording office to be a true and complete copy of the original recorded
        Mortgage;

       

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

       

      (f)  the
        originals of any intervening assignments of mortgage with evidence of recording
        thereon evidencing a complete chain of ownership from the originator of the
        Mortgage Loan to the last assignee, or if any such intervening assignment
        of
        mortgage has not been returned from the applicable public recording office
        or
        has been lost or if such public recording office retains the original recorded
        intervening assignments of mortgage, a photocopy of such intervening assignment
        of mortgage, together with (i) in the case of a delay caused by the public
        recording office, an Officer’s Certificate of the title insurer insuring the
        Mortgage, the escrow agent, the seller or the Servicer servicing such Mortgage
        Loan stating that such intervening assignment of mortgage has been delivered
        to
        the appropriate public recording office for recordation and that such original
        recorded intervening assignment of mortgage or a copy of such intervening
        assignment of mortgage certified by the appropriate public recording office
        to
        be a true and complete copy of the original recorded intervening assignment
        of
        mortgage will be promptly delivered to the Custodian upon receipt thereof
        by the
        party delivering the Officer’s Certificate or by the Servicer; or (ii) in the
        case of an intervening assignment of mortgage where a public recording office
        retains the original recorded intervening assignment of mortgage or in the
        case
        where an intervening assignment of mortgage is lost after recordation in
        a
        public recording office, a copy of such intervening assignment of mortgage
        with
        recording information thereon certified by such public recording office to
        be a
        true and complete copy of the original recorded intervening assignment of
        mortgage;

       

      (g)  if
        the
        Mortgage Note, the Mortgage, any Assignment of Mortgage, or any other related
        document has been signed by a Person on behalf of the Mortgagor, the original
        power of attorney or other instrument that authorized and empowered such
        Person
        to sign;

       

      (h)  the
        original lender’s title insurance policy in the form of an ALTA mortgage title
        insurance policy
        or,
        if the
        original lender’s title insurance policy has not been issued, the irrevocable
        commitment to issue the same; and

       

      (i)  the
        original of any security agreement, chattel mortgage or equivalent document
        executed in connection with the Mortgage, if any.

       

      

      EXHIBIT
        2

      FORM
        OF LOST NOTE AFFIDAVIT

      

      Loan
        #:
        ______

      Borrower:_____

      

      LOST
        NOTE
        AFFIDAVIT

      

      

      I,
        as
        _____________________ of ____________________, a _______________ am authorized
        to make this Affidavit on behalf of Nomura Credit & Capital, Inc. (the
“Seller”). In connection with the administration of the Mortgage Loans held by
        ______________________, a _______________ [corporation] as Seller on behalf
        of
        ____________________ (the “Purchaser”), _______________________ (the
“Deponent”), being duly sworn, deposes and says that:

      

      1. The
        Seller’s address is:   ____________________________

      ____________________________

      ____________________________

       

      2. The
        Seller previously delivered to the Purchaser a signed Initial Certification
        with
        respect to such Mortgage and/or Assignment of Mortgage;

      

      3. Such
        Mortgage Note and/or Assignment of Mortgage was assigned or sold to the
        Purchaser by __________________, a _________________ pursuant to the terms
        and
        provisions of a Mortgage Loan Purchase Agreement dated as of September 29,
        2006;

      

      4. Such
        Mortgage Note and/or Assignment of Mortgage is not outstanding pursuant to
        a
        request for release of Documents;

      

      5. Aforesaid
        Mortgage Note and/or Assignment of Mortgage (the “Original”) has been
        lost;

      

      6. Deponent
        has made or caused to be made a diligent search for the Original and has
        been
        unable to find or recover same;

      

      7. The
        Seller was the Seller of the Original at the time of the loss; and

      

      8. Deponent
        agrees that, if said Original should ever come into Seller’s possession, custody
        or power, Seller will immediately and without consideration surrender the
        Original to the Purchaser.

      

      9. Attached
        hereto is a true and correct copy of (i) the Note, endorsed in blank by the
        Mortgagee and (ii) the Mortgage or Deed of Trust (strike one) which secures
        the
        Note, which Mortgage or Deed of Trust is recorded in the county where the
        property is located.

       

      10. Deponent
        hereby agrees that the Seller (a) shall indemnify and hold harmless the
        Purchaser, its successors and assigns, against any loss, liability or damage,
        including reasonable attorney’s fees, resulting from the unavailability of any
        Notes, including but not limited to any loss, liability or damage arising
        from
        (i) any false statement contained in this Affidavit, (ii) any claim of any
        party
        that purchased a mortgage loan evidenced by the Lost Note or any interest
        in
        such mortgage loan, (iii) any claim of any borrower with respect to the
        existence of terms of a mortgage loan evidenced by the Lost Note on the related
        property to the fact that the mortgage loan is not evidenced by an original
        note
        and (iv) the issuance of a new instrument in lieu thereof (items (i) through
        (iv) above hereinafter referred to as the “Losses”) and (b) if required by any
        Rating Agency in connection with placing such Lost Note into a Pass-Through
        Transfer, shall obtain a surety from an insurer acceptable to the applicable
        Rating Agency to cover any Losses with respect to such Lost Note.

      

      11. This
        Affidavit is intended to be relied upon by the Purchaser, its successors
        and
        assigns. Nomura Credit & Capital, Inc., represents and warrants that is has
        the authority to perform its obligations under this Affidavit of Lost
        Note.

       

      
        	Executed
                this _ day of _______, 200_.	 	 
	 	 
	 
 	 
 	 
 
	 	  	By:
	 	
                
                  

                

              
	 	
                Name:

                Title:

              

      On
        this
        __ day of ______, 200_, before me appeared ______________________ to me
        personally known, who being duly sworn did say that he is the
        _______________________ of ____________________, a ______________________
        and
        that said Affidavit of Lost Note was signed and sealed on behalf of such
        corporation and said acknowledged this instrument to be the free act and
        deed of
        said entity.

      

      Signature:

      

      [Seal]

       

      

      EXHIBIT
        D

       

      TRANSFER
        AFFIDAVIT AND AGREEMENT

       

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      ___________________________
        being duly sworn, deposes, represents and warrants as follows:

       

      
        	 	
                1.

              	
                I
                  am a _____________________ of _______________________________ (the
                  “Investor”) a corporation duly organized and existing under the laws of
                  _________________________, the record owner of Nomura Asset Acceptance
                  Corporation, Alternative Loan Trust, Series 2006-AR3 Mortgage Pass-Through
                  Certificates, Class R[-X] Certificates (the “Class R[-X] 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[-X]
                  Certificates were issued.

              

      

       

      
        	 	
                2.

              	
                The
                  Investor (i) is and will be a “Permitted Transferee” as of
                  ____________________. ____ and (ii) is acquiring the Class R[-X]
                  Certificates for its own account or for the account of another
                  Investor
                  from which it has received an affidavit in substantially the same
                  form as
                  this affidavit. A “Permitted Transferee” is any person other than a
                  “disqualified organization” or a possession of the United States. For this
                  purpose, a “disqualified organization” means the United States, any state
                  or political subdivision thereof, any agency or instrumentality
                  of any of
                  the foregoing (other than an instrumentality all of the activities
                  of
                  which are subject to tax and, except for the Federal Home Loan
                  Mortgage
                  Corporation, a majority of whose board of directors is not selected
                  by any
                  such governmental entity) or any foreign government, international
                  organization or any agency or instrumentality of such foreign government
                  or organization, any real electric or telephone cooperative, or
                  any
                  organization (other than certain farmers’ cooperatives) that is generally
                  exempt from federal income tax unless such organization is subject
                  to the
                  tax on unrelated business taxable
                  income.

              

      

       

      
        	 	
                3.

              	
                The
                  Investor is aware (i) of the tax that would be imposed on transfers
                  of the
                  Class R[-X] Certificates to disqualified organizations under the
                  Internal
                  Revenue Code of 1986 that applies to all transfers of the Class
                  R[-X]
                  Certificates after July 31, 1988; (ii) that such tax would be on
                  the
                  transferor or, if such transfer is through an agent (which person
                  includes
                  a broker, nominee or middleman) for a non-Permitted Transferee,
                  on the
                  agent; (iii) that the person otherwise liable for the tax shall
                  be
                  relieved of liability for the tax if the transferee furnishes to
                  such
                  person an affidavit that the transferee is a Permitted Transferee
                  and, at
                  the time of transfer, such person does not have actual knowledge
                  that the
                  affidavit is false; and (iv) that each of the Class R[-X] 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.

              

      

       

      
        	 	
                4.

              	
                The
                  Investor is aware of the tax imposed on a “pass-through entity” holding
                  the Class R[-X] Certificates if, at any time during the taxable
                  year of
                  the pass-through entity, a non-Permitted Transferee is the record
                  holder
                  of an interest in such entity. (For this purpose, a “pass-through entity”
                  includes a regulated investment company, a real estate investment
                  trust or
                  common trust fund, a partnership, trust or estate, and certain
                  cooperatives.)

              

      

       

      
        	 	
                5.

              	
                The
                  Investor is aware that the Securities Administrator will not register
                  the
                  transfer of any Class R[-X] Certificate unless the transferee,
                  or the
                  transferee’s agent, delivers to the Securities Administrator, among other
                  things, an affidavit in substantially the same form as this affidavit.
                  The
                  Investor expressly agrees that it will not consummate any such
                  transfer if
                  it knows or believes that any of the representations contained
                  in such
                  affidavit and agreement are false.

              

      

       

      
        	 	
                6.

              	
                The
                  Investor 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[-X] Certificates
                  will
                  only be owned, directly or indirectly, by an Investor that is a
                  Permitted
                  Transferee.

              

      

       

      
        	 	
                7.

              	
                The
                  Investor’s taxpayer identification number is
                  ________________.

              

      

       

      
        	 	
                8.

              	
                The
                  Investor has reviewed the restrictions set forth on the face of
                  the Class
                  R[-X] Certificates and the provisions of Section 6.02(c) of the
                  Pooling
                  and Servicing Agreement under which the Class R[-X] Certificates
                  were
                  issued (in particular, clauses (iii)(A) and (iii)(B) of Section
                  6.02(d)
                  which authorize the Securities Administrator to deliver payments
                  to a
                  person other than the Investor and negotiate a mandatory sale by
                  the
                  Securities Administrator in the event that the Investor holds such
                  Certificate in violation of Section 6.02(c)); and that the Investor
                  expressly agrees to be bound by and to comply with such restrictions
                  and
                  provisions.

              

      

       

      
        	 	
                9.

              	
                The
                  Investor is not acquiring and will not transfer the Class R[-X]
                  Certificates in order to impede the assessment or collection of
                  any
                  tax.

              

      

       

      
        	 	
                10.

              	
                The
                  Investor anticipates that it will, so long as it holds the Class
                  R[-X]
                  Certificates, have sufficient assets to pay any taxes owed by the
                  holder
                  of such Class R[-X] Certificates, and hereby represents to and
                  for the
                  benefit of the person from whom it acquired the Class R[-X] Certificates
                  that the Investor intends to pay taxes associated with holding
                  such Class
                  R[-X] Certificates as they become due, fully understanding that
                  it may
                  incur tax liabilities in excess of any cash flows generated by
                  the Class
                  R[-X] Certificates.

              

      

       

      
        	 	
                11.

              	
                The
                  Investor has no present knowledge that it may become insolvent
                  or subject
                  to a bankruptcy proceeding for so long as it holds the Class R[-X]
                  Certificates.

              

      

       

      
        	 	
                12.

              	
                The
                  Investor has no present knowledge or expectation that it will be
                  unable to
                  pay any United States taxes owed by it so long as any of the Certificates
                  remain outstanding.

              

      

       

      
        	 	
                13.

              	
                The
                  Investor is not acquiring the Class R[-X] 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[-X] Certificates, or that may become insolvent or subject to
                  a
                  bankruptcy proceeding, for so long as the Class R[-X] Certificates
                  remain
                  outstanding.

              

      

       

      
        	 	
                14.

              	
                The
                  Investor will, in connection with any transfer that it makes of
                  the Class
                  R[-X] Certificates, obtain from its transferee the representations
                  required by Section 6.02(c) of the Pooling and Servicing Agreement
                  under
                  which the Class R[-X] Certificate were issued and will not consummate
                  any
                  such transfer if it knows, or knows facts that should lead it to
                  believe,
                  that any such representations are
                  false.

              

      

       

      
        	 	
                15.

              	
                The
                  Investor will, in connection with any transfer that it makes of
                  the Class
                  R[-X] Certificates, deliver to the Securities Administrator an
                  affidavit,
                  which represents and warrants that it is not transferring the Class
                  R[-X]
                  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[-X] Certificates; (ii) may become insolvent or subject to a bankruptcy
                  proceeding for so long as the Class R[-X] Certificates remains
                  outstanding; and (iii) is not a “Permitted
                  Transferee”.

              

      

       

      
        	 	
                16.

              	
                The
                  Investor is a citizen or resident of the United States, a corporation,
                  partnership or other entity created or organized in, or under the
                  laws of,
                  the United States or any political subdivision thereof, or an estate
                  or
                  trust whose income from sources without the United States may be
                  included
                  in gross income for United States federal income tax purposes regardless
                  of its connection with the conduct of a trade or business within
                  the
                  United States.

              

      

       

      
        	 	
                17.

              	
                The
                  Investor of the Class R[-X] Certificate, hereby agrees that in
                  the event
                  that the Trust Fund created by the Pooling and Servicing Agreement
                  is
                  terminated pursuant to Section 10.01 thereof, the undersigned shall
                  assign
                  and transfer to the Holders of the Class X and the Class P Certificates
                  any amounts in excess of par received in connection with such termination.
                  Accordingly, in the event of such termination, the Securities
                  Administrator is hereby authorized to withhold any such amounts
                  in excess
                  of par and to pay such amounts directly to the Holders of the Class
                  X and
                  the Class P Certificates. This agreement shall bind and be enforceable
                  against any successor, transferee or assigned of the undersigned
                  in the
                  Class R[-X] Certificate. In connection with any transfer of the
                  Class
                  R[-X] Certificate, the Investor shall obtain an agreement substantially
                  similar to this clause from any subsequent
                  owner.

              

      

       

      IN
        WITNESS WHEREOF, the Investor 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
        _________________, ____.

      
        	 	 	 
	 	
                [INVESTOR]

              
	 
 	 
 	 
 
	 	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 Investor, 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
        Investor.

       

      Subscribed
        and sworn before me this ______________ day of __________, ____.

       

      

      

      
        	 	 
	 	
                Notary
                  Public

              
	 	 
	 	
                County
                  of _____________________________

              
	 	
                State
                  of _______________________________

              
	 	 
	 	
                My
                  Commission expires:

              

      

      

       

      FORM
        OF
        TRANSFEROR AFFIDAVIT

       

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      _________________________,
        being duly sworn, deposes, represents and warrants as follows:

       

      1. I
        am
        a ____________________
        of _________________________ (the “Investor”), a corporation duly organized and
        existing under the laws of _____________, on behalf of whom I make this
        affidavit.

       

      2. The
        Investor is not transferring the Class R[-X] Certificates (the “Residual
        Certificates”) to impede the assessment or collection of any tax.

       

      3. The
        Investor 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
        Investor understands that the Purchaser has delivered to the Securities
        Administrator a transfer affidavit and agreement in the form attached to
        the
        Pooling and Servicing Agreement as Exhibit D. The Investor does not know
        or
        believe that any representation contained therein is false.

       

      5. At
        the
        time of transfer, the Investor 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 Investor
        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 Investor
        understands that the transfer of a Residual Certificate may not be respected
        for
        United States income tax purposes (and the Investor may continue to be liable
        for United States income taxes associated therewith) unless the Investor
        has
        conducted such an investigation.

       

      6. Capitalized
        terms not otherwise defined herein shall have the meanings ascribed to them
        in
        the Pooling and Servicing Agreement dated as of September 1, 2006, among
        Nomura
        Asset Acceptance Corporation, Nomura Credit & Capital, Inc., GMAC Mortgage
        Corporation, Wells Fargo Bank, N.A. and HSBC Bank USA, National
        Association.

       

      

       

      

      

      IN
        WITNESS WHEREOF, the Investor 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
        ________________, ____.

      
        	 	 	 
	 	
                [INVESTOR]

              
	 
 	 
 	 
 
	 	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 Investor, 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
        Investor.

       

      Subscribed
        and sworn before me this ______ day of _____________, ____.

       

      

      
        	 	 
	 	
                Notary
                  Public

              
	 	 
	 	
                County
                  of _____________________________

              
	 	
                State
                  of _______________________________

              
	 	 
	 	
                My
                  Commission expires:

              

      

      
 

      Personally
        appeared before me the above-named [Name of Officer], known or proved to
        me to
        be the same person who executed the foregoing instrument and to be the [Title
        of
        Officer] of the Investor, 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
        Investor.

       

      Subscribed
        and sworn before me this ___ day of _________, 20___.

       

      NOTARY
        PUBLIC

       

      COUNTY
        OF

       

      STATE
        OF

       

      My
        commission expires the ___ day of ___________________, 20___.

       

       

      EXHIBIT
        E

       

      FORM
        OF TRANSFEROR CERTIFICATE

       

      ______________,
        2006

       

      Nomura
        Asset Acceptance Corporation

      2
        World
        Financial Center, Building B

      New
        York,
        New York 10281

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Nomura Asset Acceptance Corporation, Alternative Loan Trust, Series
        2006-AR3

       

      
        	 	
                Re:

              	
                Nomura
                  Asset Acceptance Corporation 

                Mortgage
                  Pass-Through Certificates, Series 2006-AR3, Class
                  [X][P][R][R-X]

              

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with the sale by ___________ (the “Sponsor”) to ________ (the
“Purchaser”) of $_________ Initial Certificate Principal Balance of Mortgage
        Pass-Through Certificates, Series 2006-AR3, Class [X][P][R][R-X] (the
“Certificates”), issued pursuant to the Pooling and Servicing Agreement (the
“Pooling and Servicing Agreement”), dated as of September 1, 2006, among Nomura
        Asset Acceptance Corporation, as depositor (the “Depositor”), Nomura Credit
& Capital, Inc., as sponsor, GMAC Mortgage Corporation, as a servicer, Wells
        Fargo Bank, N.A., as master servicer (the “Master Servicer”) and securities
        administrator (the “Securities Administrator”) and HSBC Bank USA, National
        Association, as trustee (the “Trustee”). The Sponsor hereby certifies,
        represents and warrants to, a covenants with, the Depositor, the Securities
        Administrator and the Trustee that:

       

      Neither
        the Sponsor nor anyone acting on its behalf has (a) offered, pledged, sold,
        disposed of or otherwise transferred any Certificate, any interest in any
        Certificate or any other similar security to any person in any manner, (b)
        has
        solicited any offer to buy or to accept a pledge, disposition or other transfer
        of any Certificate, any interest in any Certificate or any other similar
        security from any person in any manner, (c) has otherwise approached or
        negotiated with respect to any Certificate, any interest in any Certificate
        or
        any other similar security with any person in any manner, (d) has made any
        general solicitation by means of general advertising or in any other manner,
        or
        (e) has taken any other action, that (as to any of (a) through (e) above)
        would
        constitute a distribution of the Certificates under the Securities Act of
        1933
        (the “Act”), that would render the disposition of any Certificate a violation of
        Section 5 of the Act or any state securities law, or that would require
        registration or qualification pursuant thereto. The Sponsor will not act
        in any
        manner set forth in the foregoing sentence with respect to any Certificate.
        The
        Sponsor has not and will not sell or otherwise transfer any of the Certificates,
        except in compliance with the provisions of the Pooling and Servicing
        Agreement.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                ___________________________________________

              
	 	 	 	 	 	 	 	
                (Sponsor)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      
 

      EXHIBIT
        F

       

      FORM
        OF INVESTOR REPRESENTATION LETTER (NON-RULE 144A)

       

      ___________,
        2006

       

      Nomura
        Asset Acceptance Corporation

      2
        World
        Financial Center

      New
        York,
        New York 10281

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Nomura Asset Acceptance Corporation, Alternative Loan Trust, Series
        2006-AR3

       

      
        	 	
                Re:

              	
                Nomura
                  Asset Acceptance Corporation, Alternative Loan Trust, Mortgage
                  Pass-Through Certificates, Series
                  2006-AR3

              

      

       

      Ladies
        and Gentlemen:

       

      _______________
        (the “Purchaser”) intends to purchase from ____________ (the “Sponsor”)
        $_________ Initial Certificate Principal Balance of Mortgage Pass-Through
        Certificates, Series 2006-AR3, Class [X][P][R][R-X] (the “Certificates”), issued
        pursuant to the Pooling and Servicing Agreement (the “Pooling and Servicing
        Agreement”), dated as of September 1, 2006, among Nomura Asset Acceptance
        Corporation, as depositor (the “Depositor”), Nomura Credit & Capital, Inc.,
        as sponsor, GMAC Mortgage Corporation, as a servicer, Wells Fargo Bank, N.A.,
        as
        master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”) and HSBC Bank USA, National Association, as trustee
        (the “Trustee”). All terms used herein and not otherwise defined shall have the
        meanings set forth in the Pooling and Servicing Agreement. The Purchaser
        hereby
        certifies, represents and warrants to, and covenants with, the Depositor,
        the
        Securities Administrator and the Trustee that:

       

      
        	 	
                1.

                 

              	
                The
                  Purchaser understands that (a) the Certificates have not been and
                  will not
                  be registered or qualified under the Securities Act of 1933, as
                  amended
                  (the “Act”) or any state securities law, (b) 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
                  Purchaser is acquiring the Certificates for its own account for
                  investment
                  only and not with a view to or for sale in connection with any
                  distribution thereof in any manner that would violate the Act or
                  any
                  applicable state securities laws.

                 

              
	 	
                3.

                 

              	
                The
                  Purchaser is (a) a substantial, sophisticated institutional investor
                  having such knowledge and experience in financial and business
                  matters,
                  and, in particular, in such matters related to securities similar
                  to the
                  Certificates, such that it is capable of evaluating the merits
                  and risks
                  of investment in the Certificates, (b) able to bear the economic
                  risks of
                  such an investment and (c) an “accredited investor” within the meaning of
                  Rule 501 (a) promulgated pursuant to the Act.

                 

              
	 	
                4.

                 

              	
                The
                  Purchaser has been furnished with, and has had an opportunity to
                  review
                  (a) a copy of the Pooling and Servicing Agreement and (b) such
                  other
                  information concerning the Certificates, the Mortgage Loans and
                  the
                  Depositor as has been requested by the Purchaser from the Depositor
                  or the
                  Sponsor and is relevant to the Purchaser’s decision to purchase the
                  Certificates. The Purchaser has had any questions arising from
                  such review
                  answered by the Depositor or the Sponsor to the satisfaction of
                  the
                  Purchaser.

                 

              
	 	
                5.

              	
                The
                  Purchaser has not and will not nor has it authorized or will it
                  authorize
                  any person to (a) offer, pledge, sell, dispose of or otherwise
                  transfer
                  any Certificate, any interest in any Certificate or any other similar
                  security to any person in any manner, (b) solicit any offer to
                  buy or to
                  accept a pledge, disposition of other transfer of any Certificate,
                  any
                  interest in any Certificate or any other similar security from
                  any person
                  in any manner, (c) otherwise approach or negotiate with respect
                  to any
                  Certificate, any interest in any Certificate or any other similar
                  security
                  with any person in any manner, (d) make any general solicitation
                  by means
                  of general advertising or in any other manner or (e) take any other
                  action, that (as to any of (a) through (e) above) would constitute
                  a
                  distribution of any Certificate under the Act, that would render
                  the
                  disposition of any Certificate a violation of Section 5 of the
                  Act or any
                  state securities law, or that would require registration or qualification
                  pursuant thereto. The Purchaser will not sell or otherwise transfer
                  any of
                  the Certificates, except in compliance with the provisions of the
                  Pooling
                  and Servicing Agreement.

              

      

       

      

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                ___________________________________________

              
	 	 	 	 	 	 	 	
                (Purchaser)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

       

      

      EXHIBIT
        G

       

      FORM
        OF RULE 144A INVESTMENT LETTER

       

      [Date]

      Nomura
        Credit & Capital, Inc.

      2
        World
        Financial Center, Building B

      New
        York,
        New York 10281

       

      Nomura
        Asset Acceptance Corporation

      2
        World
        Financial Center

      New
        York,
        New York 10281

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

       

      
        	 	
                Re:

              	
                Nomura
                  Asset Acceptance Corporation, Alternative Loan Trust, Mortgage
                  Pass-Through Certificates, Series 2006-AR3 (the “Certificates”), including
                  the Class [X][P][R][R-X] Certificates (the “Private
                  Certificates”)

              

      

       

      Dear
        Ladies and Gentlemen:

       

      In
        connection with our purchase of Private Certificates, we confirm
        that:

       

      
        	 	
                (i)

                 

              	
                we
                  understand that the Private Certificates are not being registered
                  under
                  the Securities Act of 1933, as amended (the “Act”) or any applicable state
                  securities or “Blue Sky” laws, and are being sold to us in a transaction
                  that is exempt from the registration requirements of such
                  laws;

                 

              
	 	
                (ii)

                 

              	
                any
                  information we desired concerning the Certificates, including the
                  Private
                  Certificates, the trust in which the Certificates represent the
                  entire
                  beneficial ownership interest (the “Trust”) or any other matter we deemed
                  relevant to our decision to purchase Private Certificates has been
                  made
                  available to us;

                 

              
	 	
                (iii)

                 

              	
                we
                  are able to bear the economic risk of investment in Private Certificates;
                  we are an institutional “accredited investor” as defined in Section 501(a)
                  of Regulation D promulgated under the Act and a sophisticated
                  institutional investor and we agree to obtain a representation
                  from any
                  transferee that such transferee is an institutional “accredited investor”
                  so long as we are required to obtain a representation letter regarding
                  compliance with the Act;

                 

              
	 	
                (iv)

                 

              	
                we
                  are acquiring Private Certificates for our own account, not as
                  nominee for
                  any other person, and not with a present view to any distribution
                  or other
                  disposition of the Private Certificates;

                 

              
	 	
                (v)

                 

              	
                we
                  agree the Private Certificates must be held indefinitely by us
                  (and may
                  not be sold, pledged, hypothecated or in any way disposed of) unless
                  subsequently registered under the Act and any applicable state
                  securities
                  or “Blue Sky” laws or an exemption from the registration requirements of
                  the Act and any applicable state securities or “Blue Sky” laws is
                  available;

                 

              
	 	
                (vi)

                 

              	
                we
                  agree that in the event that at some future time we wish to dispose
                  of or
                  exchange any of the Private Certificates (such disposition or exchange
                  not
                  being currently foreseen or contemplated), we will not transfer
                  or
                  exchange any of the Private Certificates unless:

                 

              
	 	 	
                (A)
                  (1) the sale is to an Eligible Purchaser (as defined below), (2)
                  if
                  required by the Pooling and Servicing Agreement (as defined below)
                  a
                  letter to substantially the same effect as either this letter or,
                  if the
                  Eligible Purchaser is a Qualified Institutional Buyer as defined
                  under
                  Rule 144A of the Act, the Rule 144A and Related Matters Certificate
                  in the
                  form attached to the Pooling and Servicing Agreement (as defined
                  below)
                  (or such other documentation as may be acceptable to the Securities
                  Administrator) is executed promptly by the purchaser and delivered
                  to the
                  addressees hereof and (3) all offers or solicitations in connection
                  with
                  the sale, whether directly or through any agent acting on our behalf,
                  are
                  limited only to Eligible Purchasers and are not made by means of
                  any form
                  of general solicitation or general advertising whatsoever;
                  and

              
	 	 	
                (B)
                  if the Private Certificate is not registered under the Act (as
                  to which we
                  acknowledge you have no obligation), the Private Certificate is
                  sold in a
                  transaction that does not require registration under the Act and
                  any
                  applicable state securities or “blue sky” laws and, if the Securities
                  Administrator or HSBC Bank USA, National Association, as trustee
                  (the
                  “Trustee”) so requests, a satisfactory Opinion of Counsel is furnished to
                  such effect, which Opinion of Counsel shall be an expense of the
                  transferor or the transferee;

              
	 	
                (vii)

                 

              	
                we
                  agree to be bound by all of the terms (including those relating
                  to
                  restrictions on transfer) of the Pooling and Servicing, pursuant
                  to which
                  the Trust was formed; we have reviewed carefully and understand
                  the terms
                  of the Pooling and Servicing Agreement;

                 

              
	 	
                (viii)

                 

              	
                we
                  either: (i) are not acquiring the Privately Offered Certificate
                  directly
                  or indirectly by, or on behalf of, an employee benefit plan or
                  other
                  retirement arrangement which is subject to Title I of the Employee
                  Retirement Income Security Act of 1974, as amended, and/or section
                  4975 of
                  the Internal Revenue Code of 1986, as amended, or (ii) in the case
                  of a
                  Class X, Class P or Class R Certificate, are providing the opinion
                  of
                  counsel specified in Section 6.02(b) of the Agreement.

                 

              
	 	
                (ix)

                 

              	
                we
                  understand that each of the Class [X][P][R][-X] Certificates bears,
                  and
                  will continue to bear, legends substantially to the following effect:
                  “THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
                  THE
                  SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY
                  STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE,
                  AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED
                  OR
                  OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT
                  AND OTHER
                  APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES
                  ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A
                  QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A
“QIB”),
                  PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT
                  OF A
                  QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER,
                  RESALE,
                  PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
                  (2)
                  PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
                  UNDER THE
                  SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
                  “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE
                  501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY
                  ENTITY IN
                  WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING
                  NOT
                  FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO
                  (A) THE
                  RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY
                  IN THE
                  FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE SECURITIES
                  ADMINISTRATOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES
                  ADMINISTRATOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS
                  IN
                  COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR
                  IN EACH
                  CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED
                  STATES AND ANY OTHER APPLICABLE JURISDICTION.

                 

              
	 	 	
                NO TRANSFER
                  OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
                  PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(b) OF THE AGREEMENT
                  

              

      

      

      “Eligible
        Purchaser”
means
        a
        corporation, partnership or other entity which we have reasonable grounds
        to
        believe and do believe (i) can make representations with respect to itself
        to
        substantially the same effect as the representations set forth herein, and
        (ii)
        is either a Qualified Institutional Buyer as defined under Rule 144A of the
        Act
        or an institutional “Accredited Investor” as defined under Rule 501 of the
        Act.

       

      Terms
        not
        otherwise defined herein shall have the meanings assigned to them in the
        Pooling
        and Servicing Agreement, dated as of September 1, 2006, between Nomura Asset
        Acceptance Corporation, as depositor, Nomura Credit & Capital, Inc., as
        sponsor, GMAC Mortgage Corporation, as a servicer, Wells Fargo Bank, N.A.,
        as
        master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”) and HSBC Bank USA, National Association, as trustee
        (the “Trustee”) (the “Pooling and Servicing Agreement’).

       

      If
        the
        Purchaser proposes that its Certificates be registered in the name of a nominee
        on its behalf, the Purchaser has identified such nominee below, and has caused
        such nominee to complete the Nominee Acknowledgment at the end of this
        letter.

       

      Name
        of
        Nominee (if any): _______________________________

       

      

      IN
        WITNESS WHEREOF, this document has been executed by the undersigned who is
        duly
        authorized to do so on behalf of the undersigned Eligible Purchaser on the
        ___
        day of ________, 20___.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                [PURCHASER]

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	
                [By:__________________________________

              
	 	 	 	 	 	 	 	 	
                Attorney-in-fact]

              

      

       

      

      Nominee
        Acknowledgment

       

      The
        undersigned hereby acknowledges and agrees that as to the Certificates being
        registered in its name, the sole beneficial owner thereof is and shall be
        the
        Purchaser identified above, for whom the undersigned is acting as
        nominee.

       

      
        	 	 	 	 	 	 	 	
                [NAME
                  OF NOMINEE]

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	
                [By:__________________________________

              
	 	 	 	 	 	 	 	 	
                Attorney-in-fact]

              

      

      

       

      EXHIBIT
        H

       

      FORM
        OF ADDITIONAL DISCLOSURE NOTIFICATION

       

      

      Wells
        Fargo Bank, N.A. as Securities Administrator 

      9062
        Old
        Annapolis Road

      Columbia,
        Maryland 21045-1951

      Fax:
        (410) 715-2380

      E-mail:
        cts.sec.notifications@wellsfargo.com

       

      Nomura
        Asset Acceptance Corporation

      2
        World
        Financial Center, Building B

      New
        York,
        New York 10281

       

      
        	Attn:	
                Corporate
                  Trust Services - Nomura Asset Acceptance Corporation, Alternative
                  Loan
                   Trust,
                  Series 2006-AR3, Mortgage Pass-Through Certificates -SEC REPORT
                   PROCESSING

              

      

       

      RE:
        **Additional Form [10-K][10-D][8-K] Disclosure**Required

       

      

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section [ ] of the Pooling and Servicing Agreement, dated
        as of
        September 1, 2006, among the Purchaser as depositor, Nomura Credit &
Capital, Inc. as sponsor, GMAC Mortgage Corporation as a servicer, HSBC Bank
        USA, National Association, as trustee and Wells Fargo Bank, National Association
        as master servicer and securities administrator, the Undersigned, as [ ],
        hereby
        notifies you that certain events have come to our attention that [will][may]
        need to be disclosed on Form [10-K][10-D][8-K].

       

      Description
        of Additional Form [10-K][10-D][8-K]Disclosure:

       

      

       

      

       

      List
        of
        Any Attachments hereto to be included in the Additional Form [10-K][10-D][8-K]
        Disclosure:

       

      

      Any
        inquiries related to this notification should be directed to [   ],
        phone number: [   ]; email address: [   ].

      
        	 	 	 
	 	
                [NAME
                  OF PARTY]

                as [role]

              
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Name:

                Title: 

              

      

       

      

      EXHIBIT
        I

       

      DTC
        Letter of Representations

       

      [provided
        upon request]

      

      

      

      EXHIBIT
        J

       

      Schedule
        of Mortgage Loans with Lost Notes

       

      

      NONE

      

      

      EXHIBIT
        K

       

      APPENDIX
        E - Standard & Poor’s Anti-Predatory Lending
        Categorization

       

      

      Standard
        & Poor’s has categorized loans governed by anti-predatory lending laws in
        the Jurisdictions listed below into three categories based upon a combination
        of
        factors that include (a) the risk exposure associated with the assignee
        liability and (b) the tests and thresholds set forth in those laws. Note
        that
        certain loans classified by the relevant statute as Covered are included
        in
        Standard & Poor’s High Cost Loan Category because they included thresholds
        and tests that are typical of what is generally considered High Cost by the
        industry.

       

      Standard
&
Poor’s
        High Cost Loan
        Categorization

       

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending
                  

                Law/Effective
                  Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                 

                Arkansas

              	
                 

                Arkansas
                  Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et seq.

                 

                Effective
                  July 16, 2003

              	
                 

                High
                  Cost Home Loan

              
	
                 

                Cleveland
                  Heights, OH

              	
                 

                Ordinance
                  No. 72-2003 (PSH), Mun. Code §§ 757.01 et seq.

                 

                Effective
                  June 2, 2003 

              	
                 

                Covered
                  Loan

              
	
                 

                Colorado

              	
                 

                Consumer
                  Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et seq.

                 

                Effective
                  for covered loans offered or entered into on or after January 1,
                  2003.
                  Other provisions of the Act took effect on June 7, 2002

              	
                 

                Covered
                  Loan

              
	
                 

                Connecticut

              	
                 

                Connecticut
                  Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746
                  et seq.

                 

                Effective
                  October 1, 2001

              	
                 

                High
                  Cost Home Loan

              
	
                 

                District
                  of Columbia

              	
                 

                Home
                  Loan Protection Act, D.C. Code §§ 26-1151.01 et seq.

                 

                Effective
                  for loans closed on or after January 28, 2003

              	
                 

                Covered
                  Loan

              
	
                 

                Florida

              	
                 

                Fair
                  Lending Act, Fla. Stat. Ann. §§ 494.0078 et seq.

                 

                Effective
                  October 2, 2002

              	
                 

                High
                  Cost Home Loan

              

      

       

      
        Standard
          & Poor’s High Cost Loan Categorization

         

      

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending 

                Law/Effective
                  Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                 

                Georgia
                  (Oct. 1, 2002 - Mar. 6, 2003)

              	
                 

                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

                 

                Effective
                  October 1, 2002 - March 6, 2003

              	
                 

                High
                  Cost Home Loan

              
	
                 

                Georgia
                  as amended (Mar. 7, 2003 - current)

              	
                 

                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

                 

                Effective
                  for loans closed on or after March 7, 2003

              	
                 

                High
                  Cost Home Loan

              
	
                 

                HOEPA
                  Section 32

              	
                 

                Home
                  Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R.
                  §§ 226.32 and 226.34

                 

                Effective
                  October 1, 1995, amendments October 1, 2002

              	
                 

                High
                  Cost Loan

              
	
                 

                Illinois

              	
                 

                High
                  Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et seq.

                 

                Effective
                  January 1, 2004 (prior to this date, regulations under Residential
                  Mortgage License Act effective from May 14, 2001)

              	
                 

                High
                  Risk Home Loan 

              
	
                 

                Kansas

              	
                 

                Consumer
                  Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et seq.

                 

                Sections
                  16a-1-301 and 16a-3-207 became effective April 14, 1999; Section
                  16a-3-308a became effective July 1, 1999 

              	
                 

                High
                  Loan to Value Consumer Loan (id.§
                  16a-3-207) and;

              
	
                 

                High
                  APR Consumer Loan (id.§
                  16a-3-308a)

              
	
                 

                Kentucky

              	
                 

                2003
                  KY H.B. 287 - High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100
                  et seq.

                 

                Effective
                  June 24, 2003

              	
                 

                High
                  Cost Home Loan

              
	
                 

                Maine

              	
                 

                Truth
                  in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et seq.

                 

                Effective
                  September 29, 1995 and as amended from time to time

              	
                 

                High
                  Rate High Fee Mortgage

              

      

       

      
        Standard
          & Poor’s High Cost Loan Categorization

      

       

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending 

                Law/Effective
                  Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                 

                Massachusetts

              	
                 

                Part
                  40 and Part 32, 209 C.M.R. §§ 32.00 et seq.
                  and 209 C.M.R. §§ 40.01 et seq.

                 

                Effective
                  March 22, 2001 and amended from time to time

              	
                 

                High
                  Cost Home Loan

              
	
                 

                Nevada

              	
                 

                Assembly
                  Bill No. 284, Nev. Rev. Stat. §§ 598D.010 et seq.

                 

                Effective
                  October 1, 2003

              	
                 

                Home
                  Loan

              
	
                 

                New
                  Jersey

              	
                 

                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                  et seq.

                 

                Effective
                  for loans closed on or after November 27, 2003

              	
                 

                High
                  Cost Home Loan

              
	
                 

                New
                  Mexico

              	
                 

                Home
                  Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

                 

                Effective
                  as of January 1, 2004; Revised as of February 26, 2004

              	
                 

                High
                  Cost Home Loan

              
	
                 

                New
                  York

              	
                 

                N.Y.
                  Banking Law Article 6-l

                 

                Effective
                  for applications made on or after April 1, 2003

              	
                 

                High
                  Cost Home Loan

              
	
                 

                North
                  Carolina

              	
                 

                Restrictions
                  and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                  et seq.

                 

                Effective
                  July 1, 2000; amended October 1, 2003 (adding open-end lines of
                  credit)

              	
                 

                High
                  Cost Home Loan

              
	
                 

                Ohio

              	
                 

                H.B.
                  386 (codified in various sections of the Ohio Code), Ohio Rev.
                  Code Ann.
                  §§ 1349.25 et seq.

                 

                Effective
                  May 24, 2002

              	
                 

                Covered
                  Loan

              
	
                 

                Oklahoma

              	
                 

                Consumer
                  Credit Code (codified in various sections of Title 14A)

                 

                Effective
                  July 1, 2000; amended effective January 1, 2004

              	
                 

                Subsection
                  10 Mortgage

              

      

       

      Standard
        & Poor’s High Cost Loan Categorization

       

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending 

                Law/Effective
                  Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                 

                South
                  Carolina

              	
                 

                South
                  Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                  et seq.

                 

                Effective
                  for loans taken on or after January 1, 2004

              	
                 

                High
                  Cost Home Loan

              
	
                 

                West
                  Virginia 

              	
                 

                West
                  Virginia Residential Mortgage Lender, Broker and Servicer Act,
                  W. Va. Code
                  Ann. §§ 31-17-1 et seq.

                 

                Effective
                  June 5, 2002

              	
                 

                West
                  Virginia Mortgage Loan Act Loan

              

      

       

      Standard
        & Poor’s Covered Loan Categorization

      

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending 

                Law/Effective
                  Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                 

                Georgia
                  (Oct. 1, 2002 - Mar. 6, 2003)

              	
                 

                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

                 

                Effective
                  October 1, 2002 - March 6, 2003

              	
                 

                Covered
                  Loan

              
	
                 

                New
                  Jersey

              	
                 

                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                  et seq.

                 

                Effective
                  November 27, 2003 - July 5, 2004

              	
                 

                Covered
                  Home Loan

              

      

       

      

        Standard
          & Poor’s Home Loan Categorization

         

      

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending 

                Law/Effective
                  Date

              	
                Category
                  under 

                Applicable
                  Anti-

                Predatory
                  Lending Law

              
	
                 

                Georgia
                  (Oct. 1, 2002 - Mar. 6, 2003)

              	
                 

                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et seq.

                 

                Effective
                  October 1, 2002 - March 6, 2003

              	
                 

                Home
                  Loan

              
	
                 

                New
                  Jersey

              	
                 

                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                  et seq.

                 

                Effective
                  for loans closed on or after November 27, 2003

              	
                 

                Home
                  Loan

              
	
                 

                New
                  Mexico

              	
                 

                Home
                  Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et seq.

                 

                Effective
                  as of January 1, 2004; Revised as of February 26, 2004

              	
                 

                Home
                  Loan

              
	
                 

                North
                  Carolina

              	
                 

                Restrictions
                  and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                  et seq.

                 

                Effective
                  July 1, 2000; amended October 1, 2003 (adding open-end lines of
                  credit)

              	
                 

                Consumer
                  Home Loan

              
	
                 

                South
                  Carolina

              	
                 

                South
                  Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                  et seq.

                 

                Effective
                  for loans taken on or after January 1, 2004

              	
                 

                Consumer
                  Home Loan

              

      

       

      

      EXHIBIT
        L

       

      SERVICING
        CRITERIA

       

      

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      Schedule
        1122 (Pooling and Servicing Agreement)

       

      Assessments
        of Compliance and Attestation Reports Servicing Criteria1 

      

      
        	
                 

                Reg.
                  AB Item 1122(d) Servicing Criteria

                 

              	
                 

                Depositor

                 

              	
                 

                Sponsor

                 

              	
                 

                Servicer

                 

              	
                 

                Trustee

                 

              	
                 

                Custodian

                 

              	
                 

                Paying
                  Agent

                 

              	
                Master
                  Servicer

                 

              	
                 

                Securities
                  Administrator

                 

              
	
                (1) General
                  Servicing Considerations

                 

              	 	 	 	 	 	 	 	 
	
                (i) monitoring
                  performance or other triggers and events of default

              	 	 	
                 

                X

                 

              	 	 	 	
                 

                X

                 

              	
                 

                X

                 

              
	
                (ii) monitoring
                  performance of vendors of activities outsourced

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (iii) maintenance
                  of back-up servicer for pool assets

              	 	 	 	 	 	 	 	 
	
                (iv) fidelity
                  bond and E&O policies in effect

              	 	 	
                 

                X

                 

              	 	 	 	
                 

                X

                 

              	 
	
                (2) Cash
                  Collection and Administration

                 

              	 	 	 	 	 	 	 	 
	
                (i) timing
                  of deposits to custodial account

              	 	 	
                 

                X

                 

              	 	 	
                 

                X

                 

              	
                 

                X

                 

              	
                 

                X

                 

              
	
                (ii) wire
                  transfers to investors by authorized personnel

              	 	 	
                 

                X

                 

              	 	 	
                 

                X

                 

              	 	
                 

                X

                 

              
	
                (iii) advances
                  or guarantees made, reviewed and approved as required

              	 	 	
                 

                X

                 

              	 	 	 	
                 

                X

                 

              	 
	
                (iv) accounts
                  maintained as required

              	 	 	
                 

                X

                 

              	 	 	
                 

                X

                 

              	
                 

                X

                 

              	
                 

                X

                 

              
	
                (v) accounts
                  at federally insured depository institutions

              	 	 	
                 

                X

                 

              	 	 	
                 

                X

                 

              	
                 

                X

                 

              	
                 

                X

                 

              
	
                (vi) unissued
                  checks safeguarded

              	 	 	
                 

                X

                 

              	 	 	
                 

                X

                 

              	 	
                 

                X

                 

              
	
                (vii) monthly
                  reconciliations of accounts

              	 	 	
                 

                X

                 

              	 	 	
                 

                X

                 

              	
                 

                X

                 

              	
                 

                X

                 

              
	
                (3) Investor
                  Remittances and Reporting

              	 	 	 	 	 	 	 	 
	
                (i) investor
                  reports

              	 	 	
                 

                X

                 

              	 	 	
                 

                X

                 

              	
                 

                X

                 

              	
                 

                X

                 

              
	
                (ii) remittances

              	 	 	
                 

                X

                 

              	 	 	
                 

                X

                 

              	 	
                 

                X

                 

              
	
                (iii) proper
                  posting of distributions

              	 	 	
                 

                X

                 

              	 	 	
                 

                X

                 

              	 	
                 

                X

                 

              
	
                (iv) reconciliation
                  of remittances and payment statements

              	 	 	 	 	 	
                 

                X

                 

              	
                 

                X

                 

              	
                 

                X

                 

              
	
                (4) Pool
                  Asset Administration

              	 	 	 	 	 	 	 	 
	
                (i) maintenance
                  of pool collateral

              	 	 	
                 

                X

                 

              	 	
                 

                X

                 

              	 	 	 
	
                (ii) safeguarding
                  of pool assets/documents

              	 	 	
                 

                X

                 

              	 	
                 

                X

                 

              	 	 	 
	
                (iii) additions,
                  removals and substitutions of pool assets

              	
                 

                X

                 

              	
                 

                X

                 

              	
                 

                X

                 

              	 	 	 	 	 
	
                (iv) posting
                  and allocation of pool asset payments to pool assets

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (v) reconciliation
                  of servicer records

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (vi) modifications
                  or other changes to terms of pool assets

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (vii) loss
                  mitigation and recovery actions

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (viii)records
                  regarding collection efforts

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (ix) adjustments
                  to variable interest rates on pool assets

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (x) matters
                  relating to funds held in trust for obligors

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (xi) payments
                  made on behalf of obligors (such as for taxes or
                  insurance)

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (xii) late
                  payment penalties with respect to payments made on behalf of obligors
                  

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (xiii)records
                  with respect to payments made on behalf of obligors

              	 	 	
                 

                X

                 

              	 	 	 	 	 
	
                (xiv) recognition
                  and recording of delinquencies, charge-offs and uncollectible
                  accounts

              	 	 	
                 

                X

                 

              	 	 	 	
                 

                X

                 

              	
                 

                X

                 

              
	
                (xv) maintenance
                  of external credit enhancement or other support

              	
                 

                X

                 

              	
                 

                X

                 

              	 	 	 	 	 	
                 

                X
                  (If required pursuant to Agreement)

                 

              

      

      

      
______________________

      
        
          *
            The
            descriptions of the Item 1122(d) servicing criteria use key words and
            phrases
            and are not verbatim recitations of the servicing criteria. Refer to
            Regulation
            AB, Item 1122 for a full description of servicing
            criteria.

        

      

       

      
 

      EXHIBIT
        M

       

      BACK-UP
        CERTIFICATION

       

      Re: __________
        (the “Trust”)

       

       

      Mortgage
        Pass-Through Certificates, Series 2006-AR3

       

      I,
        [identify the certifying individual], certify to Nomura Asset Acceptance
        Corporation (the “Depositor”), HSBC Bank USA, National Association (the
“Trustee”) and Wells Fargo Bank, N.A. (the “Master Servicer”), and their
        respective officers, directors and affiliates, and with the knowledge and
        intent
        that they will rely upon this certification, that:

       

      (1) I
        have
        reviewed the servicer compliance statement of the Servicer provided in
        accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the
        report on assessment of the Servicer’s compliance with the servicing criteria
        set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided
        in accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act
        of
        1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Servicing Assessment”), the registered public accounting firm’s attestation
        report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
        Act and Section 1122(b) of Regulation AB (the “Attestation
        Report”), and all servicing reports, officer’s certificates and other
        information relating to the servicing of the Mortgage Loans by the Servicer
        during 200[ ] that were delivered by the Servicer to the Master Servicer
        pursuant to the Agreement (collectively, the “Servicer Servicing
        Information”);

       

      (2) Based
        on
        my knowledge, the Servicer Servicing Information, taken as a whole, does
        not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Servicer Servicing Information;

       

      (3) Based
        on
        my knowledge, all of the Servicer Servicing Information required to be provided
        by the Servicer under the Agreement has been provided to the Master
        Servicer;

       

      (4) I
        am
        responsible for reviewing the activities performed by the Servicer as servicer
        under the Agreement, and based on my knowledge and the compliance review
        conducted in preparing the Compliance Statement and except as disclosed in
        the
        Compliance Statement, the Servicing Assessment or the Attestation Report,
        the
        Servicer has fulfilled its obligations under the Agreement in all material
        respects; and

       

      (5) The
        Compliance Statement required to be delivered by the Servicer pursuant to
        the
        Agreement, and the Servicing Assessment and Attestation Report required to
        be
        provided by the Servicer and by any Subservicer or Subcontractor pursuant
        to the
        Agreement, have been provided to the Master Servicer. Any material instances
        of
        noncompliance described in such reports have been disclosed to the Master
        Servicer. Any material instance of noncompliance with the Servicing Criteria
        has
        been disclosed in such reports.

       

      Capitalized
        terms used and not otherwise defined herein have the meanings assigned thereto
        in the Pooling and Servicing Agreement (the “Agreement”), dated as of September
        1, 2006, among Nomura Asset Acceptance Corporation, Nomura Credit & Capital,
        Inc., GMAC Mortgage Corporation, Wells Fargo Bank, N.A. as master servicer
        and
        securities administrator, and HSBC Bank USA, National Association.

      

       

      

       

      
        	
                Date:

              	 	 
	 	 
	 	 
	
                [Signature]

              	 
	 	 
	
                [Title]

              	 

      

       

      

      EXHIBIT
        N

       

      FORM
        10-D, FORM 8-K AND FORM 10-K

      REPORTING
        RESPONSIBILITY

       

      

      As
        to
        each item described below, the entity indicated as the Responsible Party
        shall
        be primarily responsible for reporting the information to the party identified
        as responsible for preparing the Securities Exchange Act Reports pursuant
        to
        Section 5.18. An asterisk indicates that the Responsible Party is responsible
        for aggregating the information it receives from other Responsible
        Parties.

      

      Under
        Item 1 of Form 10-D: a) items marked “5.10 statement” are required to be
        included in the periodic Distribution Date statement under Section 5.10,
        provided by the Securities Administrator based on information received from
        the
        Master Servicer; and b) items marked “Form 10-D report” are required to be in
        the Form 10-D report but not the 5.10 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.

      

      Additional
        Form 10-D Disclosure

      

      

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              
	
                Item
                  1: Distribution and Pool Performance Information

                 

              	 
	
                Information
                  included in the [Monthly Statement]

              	
                Servicer

                Master
                  Servicer

                Securities
                  Administrator

              
	
                Any
                  information required by 1121 which is NOT included on the [Monthly
                  Statement]

              	
                Depositor

              
	
                Item
                  2: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceeding known to be contemplated by governmental
                  authorities:

              	 
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Trustee,
                  Master Servicer, Securities Administrator and Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Pooling and Servicing Agreement) or
                  Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Item
                  3: Sale 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

              
	
                Item
                  4: Defaults Upon Senior Securities

                 

                Information
                  from Item 3 of Part II of Form 10-Q:

                 

                Report
                  the occurrence of any Event of Default (after expiration of any
                  grace
                  period and provision of any required notice)

              	
                Securities
                  Administrator

                Trustee

              
	
                Item
                  5: Submission of Matters to a Vote of Security
                  Holders

                 

                Information
                  from Item 4 of Part II of Form 10-Q

              	
                Securities
                  Administrator

                Trustee

              
	
                Item
                  6: Significant Obligors of Pool Assets

                 

                Item
                  1112(b) - Significant
                  Obligor Financial Information*

              	
                Depositor

              
	
                *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.

              	 
	
                Item
                  7: Significant Enhancement Provider Information

                 

                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information*

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *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.

              	 
	
                Item
                  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

              	
                Any
                  party responsible for the applicable Form 8-K Disclosure
                  item

              
	
                Item
                  9: Exhibits

              	 
	
                Monthly
                  Statement to Certificateholders

              	
                Securities
                  Administrator

              
	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements

              	
                Depositor

              

      

      

       

      Additional
        Form 10-K Disclosure

      

      

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              
	
                Item
                  1B: Unresolved Staff Comments

                 

              	
                Depositor

              
	
                Item
                  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

              	
                Any
                  party responsible for disclosure items on Form 8-K

              
	
                Item
                  15: Exhibits, Financial Statement Schedules

              	
                Securities
                  Administrator

                Depositor

              
	
                Reg
                  AB Item 1112(b): Significant Obligors of Pool
                  Assets

              	 
	
                Significant
                  Obligor Financial Information*

              	
                Depositor

              
	
                *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.

              	 
	
                Reg
                  AB Item 1114(b)(2): Credit Enhancement Provider Financial
                  Information

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *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.

              	 
	
                Reg
                  AB Item 1115(b): Derivative Counterparty Financial
                  Information

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *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.

              	 
	
                Reg
                  AB Item 1117: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceeding known to be contemplated by governmental
                  authorities:

              	 
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Trustee,
                  Master Servicer, Securities Administrator and Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Pooling and Servicing Agreement) or
                  Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Reg
                  AB Item 1119: Affiliations and Relationships

              	 
	
                Whether
                  (a) the Sponsor (Seller), Depositor or Issuing Entity is an affiliate
                  of
                  the following parties, and (b) to the extent known and material,
                  any of
                  the following parties are affiliated with one another:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              
	
                Whether
                  there are any “outside the ordinary course business arrangements” other
                  than would be obtained in an arm’s length transaction between (a) the
                  Sponsor (Seller), Depositor or Issuing Entity on the one hand,
                  and (b) any
                  of the following parties (or their affiliates) on the other hand,
                  that
                  exist currently or within the past two years and that are material
                  to a
                  Certificateholder’s understanding of the Certificates:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              
	
                Whether
                  there are any specific relationships involving the transaction
                  or the pool
                  assets between (a) the Sponsor (Seller), Depositor or Issuing Entity
                  on
                  the one hand, and (b) any of the following parties (or their affiliates)
                  on the other hand, that exist currently or within the past two
                  years and
                  that are material:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1108(a)(3) servicer

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivate Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              

      

      
 

      Form
        8-K
        Disclosure Information

      

      

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              
	
                Item
                  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

              	
                All
                  parties

              
	
                Item
                  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.

              	
                All
                  parties

              
	
                Item
                  1.03- Bankruptcy or Receivership

                 

                Disclosure
                  is required regarding the bankruptcy or receivership, with respect
                  to any
                  of the following: 

              	 
	
                ▪
                  Sponsor (Seller)

              	
                Depositor/Sponsor
                  (Seller)

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Affiliated Servicer

              	
                Servicer

              
	
                ▪
                  Other Servicer servicing 20% or more of the pool assets at the
                  time of the
                  report

              	
                Servicer

              
	
                ▪
                  Other material servicers

              	
                Servicer

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Significant Obligor

              	
                Depositor

              
	
                ▪
                  Credit Enhancer (10% or more)

              	
                Depositor

              
	
                ▪
                  Derivative Counterparty

              	
                Depositor

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                Item
                  2.04- Triggering Events that Accelerate or Increase a Direct Financial
                  Obligation or an Obligation under an Off-Balance Sheet
                  Arrangement

                 

                Includes
                  an early amortization, performance trigger or other event, including
                  event
                  of default, that would materially alter the payment priority/distribution
                  of cash flows/amortization schedule.

                 

                Disclosure
                  will be made of events other than waterfall triggers which are
                  disclosed
                  in the monthly statements to the certificateholders.

              	
                Depositor

                Master
                  Servicer

                Securities
                  Administrator

              
	
                Item
                  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.

              	
                Securities
                  Administrator

                Trustee

                Depositor

              
	
                Item
                  5.03- Amendments of Articles of Incorporation or Bylaws; Change
                  of Fiscal
                  Year

                Disclosure
                  is required of any amendment “to the governing documents of the issuing
                  entity”.

              	
                Depositor

              
	
                Item
                  6.01- ABS Informational and Computational
                  Material

              	
                Depositor

              
	
                Item
                  6.02- Change of Servicer or Securities Administrator

                 

                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 or
                  trustee.

              	
                Master
                  Servicer/Securities Administrator/Depositor/

                Servicer/Trustee

              
	
                Reg
                  AB disclosure about any new servicer or master servicer is also
                  required.

              	
                Servicer/Master
                  Servicer/Depositor

              
	
                Reg
                  AB disclosure about any new Trustee is also required.

              	
                Trustee

              
	
                Item
                  6.03- Change in Credit Enhancement or 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.
                  

              	
                Depositor/Securities
                  Administrator

              
	
                Reg
                  AB disclosure about any new enhancement provider is also
                  required.

              	
                Depositor

              
	
                Item
                  6.04- Failure to Make a Required Distribution

              	
                Securities
                  Administrator

                Trustee

              
	
                Item
                  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

              
	
                Item
                  7.01- Reg FD Disclosure

              	
                All
                  parties

              
	
                Item
                  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
                  certificateholders.

              	
                Depositor

              
	
                Item
                  9.01- Financial Statements and Exhibits

              	
                Responsible
                  party for reporting/disclosing the financial statement or
                  exhibit

              

      

      

      

      EXHIBIT
        O

       

      INTEREST
        RATE SWAP AGREEMENT

       

      
        	DATE:	
                September
                  29, 2006

              

      

       

      
        	TO:	
                HSBC
                  Bank USA, National Association not individually, but solely as
                  Supplemental Interest Trust Trustee on behalf of the supplemental
                  interest
                  trust with respect to the Nomura Asset Acceptance Corporation,
                  Alternative
                  Loan Trust, Series 2006-AR3, Mortgage Pass-Through
                  Certificates.

              

      

       

      
        	ATTENTION:	
                HSBC
                  Bank USA, National Association

                
                  452
                    Fifth Avenue

                  New
                    York, New York 10018

                  Attention:
                    Nomura Asset Acceptance Corp.,
                    2006-AR3

                

              

      

       

      
        	FROM:	
                ABN
                  AMRO Bank N.V.

              

      

      

      
        	SUBJECT:	
                Fixed
                  Income Derivatives Confirmation and Agreement

              

      

       

      

      
        	REFERENCE
                NUMBER:	
                3698366

              

      

      

      The
        purpose of this letter agreement (“Agreement”) is to confirm the terms and
        conditions of the current Transaction entered into on the Trade Date specified
        below (the “Transaction”) between ABN AMRO Bank N.V. (“Party A”) and HSBC Bank
        USA, National Association, not individually, but solely as trustee (the
“Supplemental Interest Trust Trustee”) on behalf of the supplemental interest
        trust with respect to the Nomura Asset Acceptance Corporation, Alternative
        Loan
        Trust, Series 2006-AR3, Mortgage Pass-Through Certificates (the “Supplemental
        Interest Trust”) (“Party B”) created under the Pooling and Servicing Agreement,
        dated as of September 1, 2006, among Nomura Asset Acceptance Corporation
        as
        depositor, GMAC Mortgage Corporation, as servicer, Wells Fargo Bank, N.A
        as
        master servicer and securities administrator and HSBC Bank USA, National
        Association as trustee (the “Pooling and Servicing Agreement”). This Agreement,
        which evidences a complete and binding agreement between you and us to enter
        into the Transaction on the terms set forth below, constitutes a “Confirmation”
as referred to in the “ISDA Form Master Agreement” (as defined below), as well
        as a “Schedule” as referred to in the ISDA Form Master Agreement.

      

      

      
        	1.  	
                This
                  Agreement is subject to the 2000
                  ISDA Definitions (the
                  “Definitions”), as published by the International Swaps and Derivatives
                  Association, Inc. (“ISDA”). Any reference to a “Swap Transaction” in the
                  Definitions is deemed to be a reference to a “Transaction” for purposes of
                  this Agreement, and any reference to a “Transaction” in this Agreement is
                  deemed to be a reference to a “Swap Transaction” for purposes of the
                  Definitions. You and we have agreed to enter into this Agreement
                  in lieu
                  of negotiating a Schedule to the 1992 ISDA Master Agreement
                  (Multicurrency—Cross Border) form (the “ISDA Form Master Agreement”) but,
                  rather, an ISDA Form Master Agreement shall be deemed to have been
                  executed by you and us on the date we entered into the Transaction,
                  and
                  this Agreement shall form part of, supplement and be subject to
                  such ISDA
                  Form Master Agreement. For the avoidance of doubt, the Transaction
                  described herein shall be the sole Transaction governed by such
                  ISDA Form
                  Master Agreement. Each term capitalized but not defined herein
                  or
                  in
                  the Definitions
                  shall have the meaning assigned thereto in the Pooling and Servicing
                  Agreement. Each reference to a “Section” (unless specifically referencing
                  the Pooling and Servicing Agreement) or to a “Section” “of this Agreement”
                  will be construed as a reference to a Section of the ISDA Form
                  Master
                  Agreement, and each reference to a “Part” will be construed as a reference
                  to the provisions herein deemed incorporated in a Schedule to the
                  ISDA
                  Form Master Agreement.

              

      

      

      In
        the
        event of any inconsistency between any of the following documents, the relevant
        document first listed below shall govern: (i) a Confirmation; (ii) the Schedule
        and Paragraph 13 of an ISDA Credit Support Annex (as applicable); (iii) the
        ISDA
        Definitions; and (iv) the ISDA Form Master Agreement and ISDA Credit Support
        Annex (as applicable).

      
 

      
        	
                2.

              	
                The
                  terms of the particular Transaction to which this Confirmation
                  relates are
                  as follows:

              

      

       

      
        
          	
                  Type
                    of Transaction:

                	
                  Interest
                    Rate Swap

                
	 	 
	
                  Notional
                    Amount:

                	
                  With
                    respect to any Calculation Period, the amount set forth for such
                    period on
                    Schedule I attached hereto.

                
	 	 
	
                  Trade
                    Date:

                	
                  September
                    18, 2006

                
	 	 
	
                  Effective
                    Date:

                	
                  September
                    29, 2006

                
	 	 
	
                  Termination
                    Date:

                	
                  September
                    25, 2011, subject to adjustment in accordance with the Business
                    Day
                    Convention; provided, however, that for the purpose of determining
                    the
                    final Fixed Rate Payer Period End Date, Termination Date shall
                    be subject
                    to No Adjustment

                
	 	 
	
                  Fixed
                    Amounts:

                	 
	 	 
	
                  Fixed
                    Rate Payer:

                	
                  Party
                    B

                
	 	 
	
                  Fixed
                    Rate Payer

                	 
	
                  Period
                    End Dates:

                	
                  The
                    25th
                    calendar day of each month during the Term of this Transaction,
                    commencing
                    October 25, 2006, and ending on the Termination Date, with No
                    Adjustment.

                
	 	 
	
                  Fixed
                    Rate Payer

                	 
	 	 
	
                  Payment
                    Dates:

                	
                  Early
                    Payment shall be applicable. Each Fixed Rate Payer Payment Date
                    shall be
                    one Business Day prior to the related Fixed Rate Payer Period
                    End
                    Date.

                
	 	 
	
                  Fixed
                    Rate:

                	
                  5.290%

                
	 	 
	 	 
	
                  Fixed
                    Rate Day 

                	 
	
                  Count
                    Fraction:

                	
                  30/360

                
	 	 
	
                  Additional
                    Fixed Payment 

                	
                  On
                    the Effective Date, Party B will make a payment to Party A of
                    USD $7,000
                    (such payment shall be made by Nomura Securities International,
                    Inc. on
                    behalf of Party B).

                
	 	 
	 	 
	
                  Floating
                    Amounts:

                	 
	 	 
	
                  Floating
                    Rate Payer:

                	
                  Party
                    A

                
	 	 
	
                  Floating
                    Rate Payer

                	 
	
                  Period
                    End Dates:

                	
                  The
                    25th
                    calendar day of each month during the Term of this Transaction,
                    commencing
                    October 25, 2006, and ending on the Termination Date, subject
                    to
                    adjustment in accordance with the Business Day
                    Convention.

                
	 	 
	
                  Floating
                    Rate Payer 

                	 
	 	 
	
                  Payment
                    Dates:

                	
                  Early
                    Payment shall be applicable. Each Floating Rate Payer Payment
                    Date shall
                    be one Business Day prior to the related Floating Rate Payer
                    Period End
                    Date.

                
	 	 
	
                  Floating
                    Rate Option:

                	
                  USD-LIBOR-BBA

                
	 	 
	 	 
	
                  Designated
                    Maturity:

                	
                  One
                    month

                
	 	 
	
                  Floating
                    Rate Day 

                	 
	
                  Count
                    Fraction:

                	
                  Actual/360

                
	 	 
	
                  Reset
                    Dates:

                	
                  The
                    first day of each Calculation Period.

                
	 	 
	
                  Compounding:

                	
                  Inapplicable

                
	 	 
	
                  Business
                    Days:

                	
                  New
                    York

                
	 	 
	
                  Business
                    Day Convention:

                	
                  Following

                
	 	 
	
                  Calculation
                    Agent:

                	
                  Party
                    A

                
	 	 
	
                  Offices:
                    

                	
                  The
                    office of Party A for this Transaction is London

                
	 	 

        

      

      
        	
                3.

              	
                Provisions
                  Deemed Incorporated in a Schedule to the Master
                  Agreement:

              

      

      

      
        	
                Part
                  1.

              	
                Termination
                  Provisions. 

              

      

      

      For
        the
        purposes of this Agreement:-

      

      
        	(a)	
                “Specified
                  Entity”
                  is
                  not applicable to Party A or Party B for any purpose.
                  

              

      

      

      
        	
                (b)

              	
                “Specified
                  Transaction”
                  is
                  not applicable to Party A or Party B for any purpose, and, accordingly,
                  Section 5(a)(v) shall not apply to Party A or Party
                  B.

              

      

      

      
        	
                (c)

              	
                Events
                  of Default:

              

      

      

      
        
          	
                	(i)	
                  The
                    “Breach
                    of Agreement”
                    provision of Section 5(a)(ii) will not apply to Party A or Party
                    B.

                

        

      

      

      
        
          	
                	(ii)	
                  The
                    “Credit
                    Support Default”
                    provisions of Section 5(a)(iii) will apply to Party A (if Party
                    A posts
                    collateral or provides a guarantee or other contingent agreement
                    pursuant
                    to Part 5(h) below), and will not apply to Party
                    B.

                

        

      

      

      
        
          	
                	(iii)	
                  The
                    “Misrepresentation”
                    provisions of Section 5(a)(iv) will not apply to Party A or Party
                    B.

                

        

      

      

      
        
          	
                	(iv)	
                  The
                    “Cross
                    Default”
                    provisions of Section 5(a)(vi) will not apply to Party A or to
                    Party B.
                    

                

        

      

      

      
        
          	
                	(v)	
                  The
                    “Bankruptcy”
                    provision of Section 5(a)(vii)(2) will not apply to Party
                    B.

                

        

      

      

      
        
          	
                	(vi)	
                  The
                    “Merger
                    Without Assumption”
                    provisions of Section 5(a)(viii) will not apply to Party
                    B.

                

        

      

      

      
        	(d)	
                Termination
                  Events:

              

      

      

      
        	 	
                (i)

              	
                The
                  “Credit
                  Event Upon Merger”
                  provisions of Section 5(b)(iv) will not apply to Party A or Party
                  B.

              

      

      

      
        	
                (e)

              	
                The
                  “Automatic
                  Early Termination”
                  provision of Section 6(a) will not apply to Party A or to Party
                  B.

              

      

      

      
        	(f)	
                Payments
                  on Early Termination.
                  For the purpose of Section 6(e) of this
                  Agreement:

              

      

      

      
        	
              	(i)	
                Market
                  Quotation will apply.

              

      

      

      
        	
              	(ii)	
                The
                  Second Method will apply.

              

      

      

      
        	(g)	
                “Termination
                  Currency”
                  means United States Dollars.

              

      

      

      
        	(h)	
                Additional
                  Termination Events.
                  Additional Termination Events will apply as provided in Part 5(h).
                  

              

      

      

      

      Part
        2.  Tax
        Representations. 

      

      
        	
                (a)

              	
                Payer
                  Representations.
                  For the purpose of Section 3(e) of this Agreement, each of Party
                  A and
                  Party B makes the following
                  representation:

              

      

       

      
        	 	
                It
                  is not required by any applicable law, as modified by the practice
                  of any
                  relevant governmental revenue authority, of any Relevant Jurisdiction
                  to
                  make any deduction or withholding for or on account of any Tax
                  from any
                  payment (other than interest under Section 2(e), 6(d)(ii) or 6(e)
                  of this
                  Agreement) to be made by it to the other party under this Agreement.
                  In
                  making this representation, it may rely on:

              

      

       

      
        
          	
                	(i)	
                  the
                    accuracy of any representations made by the other party pursuant
                    to
                    Section 3(f) of this
                    Agreement;

                

        

      

      

      
        
          
            	
                  	(ii)	
                    the
                      satisfaction of the agreement contained in Section 4(a)(i)
                      or 4(a)(iii) of
                      this Agreement and the accuracy and effectiveness of any document
                      provided
                      by the other party pursuant to Section 4(a)(i) or 4(a)(iii)
                      of this
                      Agreement; and

                  

          

        

      

      

      
        
          
            	
                  	(iii)	
                    the
                      satisfaction of the agreement of the other party contained
                      in Section 4(d)
                      of this Agreement, 

                  

          

        

      

      

      provided
        that it
        shall not be a breach of this representation where reliance is placed on
        clause
        (ii) and the other party does not deliver a form or document under Section
        4(a)(iii) by reason of material prejudice to its legal or commercial position.
        

      

      (b)
         Payee
        Representations.
        For the
        purpose of Section 3(f) of this Agreement: 

       

      
        	
              	(i)	
                Party
                  A makes the following
                  representation(s):

              

      

      

      (A)
        It is
        a resident of The Netherlands for the purpose of the application of the existing
        tax treaties between The Netherlands and those countries where offices of
        Party
        B are located.

      

      (B)
        With
        respect  to
        its
        non-U.S. branches, it is fully eligible for the benefits of the “Business
        Profits” or “Industrial and Commercial Profits” provision, as the case may be,
        the “Interest” provision or the “Other Income” provision (if any) of the
        Specified Treaty with respect to any payment described in such provisions
        and
        received or to be received by it in connection with this Agreement and no
        such
        payment is attributable to a trade or business carried on by it through a
        permanent establishment in the Specified Jurisdiction. With respect to Party
        A,
        Specified Treaty means the income tax treaty between the United States and
        The
        Netherlands; Specified Jurisdiction means the United States. 

      

      (C)
        With
        respect to its U.S. branches, each payment received or to be received by
        it in
        connection with this Agreement will be effectively connected with its conduct
        of
        a trade or business in the United States. 

      

      
        	 	
                (ii)

              	
                Party
                  B makes the following
                  representation(s):

              

      

      

      The
        beneficial owner of the payments made to it under this Agreement is either
        (i) a
        "U.S. person" (as that term is used in section 1.1441-4(a)(3)(ii) of United
        States Treasury Regulations) for United States federal income tax purposes
        and
        an "Exempt recipient" within the meaning of section 1.6049-4(c)(1)(ii) of
        United
        States Treasury Regulations, or (ii) a "non-U.S. branch of a foreign person"
        as
        that term is used in section 1.1441-4(a)(3)(ii) of the United States Treasury
        Regulations (the "Regulations") for United States federal income tax purposes,
        and it is a "foreign person" as that term is used in section 1.6041-4(a)(4)
        of
        the Regulations for United States federal income tax purposes.

      

      Part
        3.  Agreement
        to Deliver Documents.  

      

      
        
          	(a)	
                  For
                    the purpose of Section 4(a)(i), tax forms, documents, or certificates
                    to
                    be delivered are:

                

        

      

      

      Each
        party agrees to complete, accurately and in a manner reasonably satisfactory
        to
        the other party, and to execute, arrange for any required certification of,
        and
        deliver to the other party (or to such government or taxing authority as
        the
        other party reasonably directs), any form or document that may be required
        or
        reasonably requested in order to allow the other party to make a payment
        under
        this Agreement without any deduction or withholding for or on account of
        any Tax
        or with such deduction or withholding at a reduced rate, promptly upon the
        earlier of (i) reasonable demand by the other party and (ii) learning that
        the
        form or document is required.

      

      
        	
                Party
                  required to 

                deliver
                  document

              	 	
                Form/Document/

                Certificate

              	 	
                Date
                  by which to

                be
                  delivered

                 

              
	
                Party
                  A

              	 	
                A
                  correct, complete and duly executed U.S. Internal Revenue Service
                  Form
                  W-8ECI and W-8BEN (or successor thereto), together with appropriate
                  attachments, that eliminates U.S. federal withholding and backup
                  withholding tax on payments to Party A under this Agreement.

                 

              	 	
                (A)
                  before the first Payment Date under this Agreement, (B) promptly
                  upon
                  reasonable demand by the other party and (C) promptly upon learning
                  that
                  any such form previously provided by the party has become obsolete
                  or
                  incorrect.

                 

              
	
                Party
                  B

              	 	
                A
                  correct, complete and duly executed U.S. Internal Revenue Service
                  Form W-9
                  (or successor thereto), together with appropriate attachments,
                  that
                  eliminates U.S. federal withholding and backup withholding tax
                  on payments
                  to Party B under this Agreement.

                 

              	 	
                (A)
                  before the first Payment Date under this Agreement, (B) promptly
                  upon
                  reasonable demand by the other party and (C) promptly upon learning
                  that
                  any such form previously provided by the party has become obsolete
                  or
                  incorrect.

                 

              

      

       

       

      

      (b) For
        the
        purpose of Section 4(a)(ii), other documents to be delivered are:

      

      
        	
                Party
                  required 

                to
                  deliver 

                document

                 

              	 	
                Form/Document/

                Certificate

                 

              	 	
                Date
                  by which to

                be
                  delivered

                 

              	 	
                Covered
                  by 

                Section
                  3(d) 

                Representation

                 

              
	
                Party
                  A and

                Party
                  B

                 

              	 	
                Any
                  documents required by the receiving party to evidence the authority
                  of the
                  delivering party or its Credit Support Provider, if any, for it
                  to execute
                  and deliver this Agreement, any Confirmation, and any Credit Support
                  Documents to which it is a party, and to evidence the authority
                  of the
                  delivering party or its Credit Support Provider to perform its
                  obligations
                  under this Agreement, such Confirmation and/or Credit Support Document,
                  as
                  the case may be

                 

              	 	
                Upon
                  the execution and delivery of this Agreement 

                 

              	 	
                Yes

                 

              
	
                Party
                  A and

                Party
                  B

                 

              	 	
                A
                  certificate of an authorized officer of the party, as to the incumbency
                  and authority of the respective officers of the party signing this
                  Agreement, any relevant Credit Support Document, or any Confirmation,
                  as
                  the case may be

                 

              	 	
                Upon
                  the execution and delivery of this Agreement 

                 

              	 	
                Yes

                 

              

      

      
        	
                Party
                  A

                 

              	 	
                Annual
                  Report of ABN AMRO Holding N.V. containing consolidated financial
                  statements certified by independent certified public accountants
                  and
                  prepared in accordance with generally accepted accounting principles
                  in
                  the country in which such party is organized

                 

              	 	
                Promptly
                  after request by Party B

                 

              	 	
                Yes

                 

              
	
                Party
                  A and

                Party
                  B

                 

              	 	
                An
                  opinion of counsel with respect to the due authorization, execution
                  and
                  enforceability of this Agreement, acceptable to the other party
                  hereto.

                 

              	 	
                Upon
                  the execution and delivery of this Agreement and such
                  Confirmation

                 

              	 	 

      

      

      

      Part
        4. Miscellaneous. 

      

      
        	
                (a)

              	
                Address
                  for Notices:
                  For the purposes of Section 12(a) of this
                  Agreement:

              

      

      

      Address
        for notices or communications to Party A:

      

      
        	1.  	
                For
                  the purposes of Section 5, 6, and 7 under this
                  Agreement:

              

      

      

      ABN
        AMRO Bank N.V., Chicago Branch

      Global
        Documentation Unit

      540
        W.
        Madison Street, 22nd
        Floor

      Chicago,
        IL 60661

      Attention:
        Treasury Documentation

      Telephone:
        312-904-5214

      Fax:
        312-904-0392

      

      
        	2.  	
                For
                  all purposes to the Office through which Party A is acting
                  for

              

      

      the
        purposes of the relevant Transactions:

      

      ABN
        AMRO Bank N.V., Amsterdam Head Office

      P.O.
        Box
        283

      1000
        AE
        Amsterdam

      Chicago,
        IL 60661

      The
        Netherlands

      

      Attention:
        Operations Derivatives Markets

      

      Forex
        Options

      Telephone:
        31-20-6292654

      Telefax:
        31-20-6284832

      

      Swaps

      Telephone:
        31-20-6284448

      Telefax:
        31-20-6281679

      

      Interest
        Related Products

      Telephone
        31-20-3831226

      Telefax:
        31-20-6282462

      

      Credit
        Derivatives

      Telephone:
        31-20-3831230

      Telefax:
        31-20-3832299

      

      Telex:
        16021 Answerback: ABAM NL

      Electronic
        Messaging System Details: Swift ABNA NL 2A

      

      ABN
        AMRO Bank, N.V., Chicago Branch

      540
        West
        Madison Avenue, Suite 2132

      Chicago,
        IL 60661

      

      Attention:
        Treasury Operations

      

      Telephone:
        312-992-5816

      Telefax:
        312-855-5852

      Electronic
        Messaging System Details: ABNA US 33a XXX

      

      ABN
        AMRO Bank N.V., London Branch

      199
        Bishopsgate,

      London
        EC2M 3XW,

      United
        Kingdom

      

      Attention:
        Fixed Income Derivatives Documentation

      

      Telex:
        887366 Answerback: ABNALN G

      Telephone:
        44 20 7678 3311

      Telefax:
        44 20 7857 9428

      Electronic
        Messaging System Details: Swift ABNA GB 2L

      

      (For
        all
        purposes)

      

      Address
        for notices or communications to Party B:

      

      HSBC
        Bank
        USA, National Association 

      452
        Fifth
        Avenue

      New
        York,
        New York 10018

      Attention:
        Nomura Asset Acceptance Corp., 2006-AR3

      

      (For
        all
        purposes)

      

      With
        copy
        to:

      

      Wells
        Fargo Bank, N.A.

      9062
        Old
        Annapolis Road

      Columbia,
        MD 21045

      Attention:
        Client Manager, NAAC 2006-AR3

      Facsimile:
        410-715-2380 

       

      

      
        	(b)	
                Process
                  Agent.
                  For the purpose of Section 13(c):

              

      

      

      Party
        A
        appoints as its 

      Process
        Agent:   Not
        Applicable

      

      Party
        B
        appoints as its 

      Process
        Agent:  Not
        Applicable

      

      
        	
                (c)

              	
                Offices.
                  The provisions of Section 10(a) will apply to this
                  Agreement.

              

      

      

      
        	
                (d)

              	
                Multibranch
                  Party.
                  For the purpose of Section 10(c) of this
                  Agreement:

              

      

      

      
        	 	
                Party
                  A is a Multibranch Party and may act through its Amsterdam head
                  office,
                  and its London or Chicago branches.

              

      

      

      
        	 	
                Party
                  B is not a Multibranch Party.

              

      

      

      
        	
                (e)

              	
                Calculation
                  Agent.
                  The Calculation Agent is Party A, provided, however, that if an
                  Event of
                  Default shall have occurred with respect to Party A, Party B shall
                  have
                  the right to appoint as Calculation Agent a third party, reasonably
                  acceptable to Party A, the cost for which shall be borne by Party
                  A.

              

      

      

      
        	(f)	
                Credit
                  Support Document. 

              

      

       

      
        	
              	Party
                A:	
                None
                  or, in that event that Party A posts collateral under a Credit
                  Support
                  Annex or provides a guarantee or other contingent agreement pursuant
                  to
                  Part 5(i) below, such Credit Support Annex or guarantee or other
                  contingent agreement.

              

      

      

      Party
        B:  None

      

      
        	
                (g)

              	
                Credit
                  Support Provider.

              

      

      

      
        	
              	Party
                A:	
                None
                  or, in that event that Party A provides a guarantee or other contingent
                  agreement pursuant to Part 5(i) below, such guarantor or other
                  provider of
                  credit support.

              

      

      

      Party
        B:  None

      

      
        	
                (h)

              	
                Governing
                  Law.
                  The parties to this Agreement hereby agree that the law of the
                  State of
                  New York shall govern their rights and duties in whole, without
                  regard to
                  the conflict of law provisions thereof other than New York General
                  Obligations Law Sections 5-1401 and 5-1402.

              

      

      

      
        	
                (i)

              	
                Netting
                  of Payments.
                  The parties agree that subparagraph (ii) of Section 2(c) of the
                  ISDA Form
                  Master Agreement will apply to any
                  Transaction.

              

      

      

      
        	
                (j)

              	
                “Affiliate.”
                  Party B shall be deemed not to have any Affiliates for purposes
                  of this
                  Agreement, including for purposes of Section
                  6(b)(ii).

              

      

      

      Part
        5.  Others
        Provisions.

      

      
        	
                (a)

              	
                Amendments
                  to ISDA Form Master
                  Agreement.

              

      

      

      
        	 	
                (i)

              	
                Section
                  3 of the ISDA Form Master Agreement is hereby amended by adding
                  at the end
                  thereof the following subsection (g):

              

      

      

      
        	 	
                “(g)

              	
                Relationship
                  Between Parties. 

              

      

      

      Each
        party represents to the other party on each date when it enters into a
        Transaction that:--

       

      
        	 	
                (1)

              	
                Nonreliance.
                  (i) It is not relying on any statement or representation of the
                  other
                  party regarding the Transaction (whether written or oral), other
                  than the
                  representations expressly made in this Agreement or the Confirmation
                  in
                  respect of that Transaction and (ii) it has consulted with its
                  own legal,
                  regulatory, tax, business, investment, financial and accounting
                  advisors
                  to the extent it has deemed necessary, and it has made its own
                  investment,
                  hedging and trading decisions based upon its own judgment and upon
                  any
                  advice from such advisors as it has deemed necessary and not upon
                  any view
                  expressed by the other party.

              

      

       

      
        	 	
                (2)

              	
                Evaluation
                  and Understanding. (i) It has the capacity to evaluate (internally
                  or
                  through independent professional advice) the Transaction and has
                  made its
                  own decision subject to Section 6(n) of this Agreement to enter
                  into the
                  Transaction and (ii) It understands the terms, conditions and risks
                  of the
                  Transaction and is willing and able to accept those terms and conditions
                  and to assume those risks, financially and otherwise.
                  

              

      

      

      
        	 	
                (3)

              	
                Purpose.
                  It is entering into the Transaction for the purposes of managing
                  its
                  borrowings or investments, hedging its underlying assets or liabilities
                  or
                  in connection with a line of business.

              

      

      

      
        	 	
                (4)

              	
                Status
                  of Parties. The other party is not acting as an agent, fiduciary
                  or
                  advisor for it in respect of the
                  Transaction.

              

      

      

      
        
          	
                	(5)	
                  Eligible
                    Contract Participant. It is an “eligible swap participant” as such term is
                    defined in, Section 35.1(b)(2) of the regulations (17 C.F.R.
                    35)
                    promulgated under, and an “eligible contract participant” as defined in
                    Section 1(a)(12) of the Commodity Exchange Act, as
                    amended.”

                

        

      

      

      
        
          	
                	(6)	
                  No
                    Agency. It is entering this Agreement, any Credit Support Document
                    to
                    which it is a party, each Transaction, and any other documentation
                    relating to this Agreement that it is required to deliver as
                    principal
                    (and not as agent or in any other capacity, fiduciary or
                    otherwise).

                

        

      

      

      
        	 	
                (ii)

              	
                Section
                  5(a)(i) of the ISDA Form Master Agreement is hereby amended by
                  replacing
                  the word “third” with the word “first” in the third line
                  thereof.

              

      

      

      
        	
                (b)

              	
                Set-Off.
                  The provisions for Set-off set forth in Section 6(e) of the ISDA
                  Form
                  Master Agreement shall not apply for purposes of this Transaction.
                  Notwithstanding any provision of this Agreement or any other existing
                  or
                  future agreement, each party irrevocably waives any and all rights
                  it may
                  have to set off, net, recoup or otherwise withhold or suspend or
                  condition
                  payment or performance of any obligation between it and the other
                  party
                  hereunder against any obligation between it and the other party
                  under any
                  other agreements. 

              

      

       

      
        	
                (c)

              	
                Consent
                  to Recording.
                  Each party hereto consents to the monitoring or recording, at any
                  time and
                  from time to time, by the other party of any and all communications
                  between trading, marketing, and operations personnel of the parties
                  and
                  their Affiliates, waives any further notice of such monitoring
                  or
                  recording, and agrees to notify such personnel of such monitoring
                  or
                  recording. 

              

      

      

      
        	
                (d)

              	
                Waiver
                  of Jury Trial.
                  Each party waives any right it may have to a trial by jury in respect
                  of
                  any Proceedings relating to this Agreement or any Credit Support
                  Document.
                  

              

      

      

      
        	
                (e)

              	
                Non-Recourse.
                  Notwithstanding any provision herein or in the ISDA Form Master
                  Agreement
                  to the contrary, the obligations of Party B hereunder are limited
                  recourse
                  obligations of Party B, payable solely from the Supplemental Interest
                  Trust and the proceeds thereof, in accordance with the priority
                  of
                  payments and other terms of the Pooling and Servicing Agreement.
                  In the
                  event that the Supplemental Interest Trust and the proceeds thereof,
                  should be insufficient to satisfy all claims outstanding and following
                  the
                  realization of the account held by the Supplemental Interest Trust
                  and the
                  proceeds thereof, any claims against or obligations of Party B
                  under the
                  ISDA Form Master Agreement or any other confirmation thereunder
                  still
                  outstanding shall be extinguished and thereafter not revive. The
                  Supplemental Interest Trust Trustee shall not have liability for
                  any
                  failure or delay in making a payment hereunder to Party A due to
                  any
                  failure or delay in receiving amounts in the account held by the
                  Supplemental Interest Trust from the Trust created pursuant to
                  the Pooling
                  and Servicing Agreement.

              

      

      

      
        	
                (f)

              	
                Transfer,
                  Amendment and Assignment.
                  No
                  transfer, amendment or assignment of this Agreement shall be permitted
                  by
                  either party unless Moody’s and S&P have been provided prior notice of
                  the same and confirms in writing (including by facsimile transmission)
                  that it will not downgrade, withdraw or otherwise modify its then-current
                  ratings of any Certificates or
                  Notes.

              

      

      

      
        	
                (g)

              	
                Gross
                  Up.
                  Section 2(d)(i)(4) shall not apply to Party B as X, and Section
                  2(d)(ii)
                  shall not apply to Party B as Y, such that Party B shall not be
                  required
                  to pay any additional amounts referred to
                  therein.

              

      

      

      
        	
                (h)

              	
                Additional
                  Termination Events.
                  The following Additional Termination Events will
                  apply:

              

      

      

      
        	 	
                (i)

              	
                If
                  a Rating Agency Downgrade has occurred and Party A has not complied
                  with
                  Part 5(i) below, then an Additional Termination Event shall have
                  occurred
                  with respect to Party A and Party A shall be the sole Affected
                  Party with
                  respect to such Additional Termination Event.

              

      

      

      
        
          	
                	(ii)	
                  If,
                    upon the occurrence of a Swap Disclosure Event (as defined in
                    Part 5(j)
                    below) Party A has not, within ten (10) calendar days after such
                    Swap
                    Disclosure Event complied with any of the provisions set forth
                    in clause
                    (iii) of Part 5(j) below, then an Additional Termination Event
                    shall have
                    occurred with respect to Party A and Party A shall be the sole
                    Affected
                    Party with respect to such Additional Termination
                    Event.

                

        

      

      

      
        
          	
                	(iii)	
                  If,
                    at any time, the Master Servicer purchases the Mortgage Loans
                    pursuant to
                    Section 10.01 of the Pooling and Servicing Agreement, then an
                    Additional
                    Termination Event shall have occurred and Party B shall be the
                    sole
                    Affected Party with respect thereto; provided, however, that
                    notwithstanding Section 6(b)(iv) of the ISDA Form Master Agreement,
                    both
                    Party A and Party B shall have the right to designate an Early
                    Termination
                    Date in respect of this Additional Termination Event; provided,
                    further,
                    that such Early Termination Date shall be on the final Distribution
                    Date.

                

        

      

      

      
        
          	
                	(iv)	
                  If,
                    without the prior written consent of Party A where such consent is
                    required under the Pooling and Servicing Agreement (such consent
                    not to be
                    unreasonably withheld), an amendment or supplemental agreement
                    is made to
                    the Pooling and Servicing Agreement which amendment or supplemental
                    agreement could reasonably be expected to have a material adverse
                    effect
                    on the interests of Party A under this Agreement, an Additional
                    Termination Event shall have occurred with respect to Party
                    B and Party B shall be the sole Affected Party with respect
                    to such Additional Termination
                    Event.

                

        

      

      

      
        	
                (i)

              	
                Rating
                  Agency Downgrade.
                  In
                  the event that (i) Party A’s short-term unsecured and unsubordinated debt
                  rating is reduced below “A-1” by S&P, or, in the event that Party A
                  does not have a short-term rating from S&P, if Party A’s long-term
                  unsecured and unsubordinated debt rating is reduced below “A+” by S&P,
                  or (ii) Party A’s long-term unsecured and unsubordinated debt rating is
                  reduced below “A1” by Moody’s or its short-term unsecured and
                  unsubordinated debt rating is reduced below “P1” by Moody’s, or, in the
                  event that Party A does not have a short-term rating from Moody’s, if
                  Party A’s long-term unsecured and unsubordinated debt rating is reduced
                  below “Aa3” by Moody’s (and together with Moody’s, the “Swap Rating
                  Agencies” and such rating thresholds, “Approved Rating Thresholds” and any
                  such reduction below the Approved Rating Thresholds, a “Collateral Rating
                  Downgrade Event”), then within thirty (30) calendar days after such rating
                  withdrawal or downgrade (unless, within 30 days after such withdrawal
                  or
                  downgrade, each such Swap Rating Agency, as applicable, has reconfirmed
                  the rating of the Nomura Asset Acceptance Corporation, Alternative
                  Loan
                  Trust, Series 2006-AR3, Mortgage Pass-Through Certificates (the
                  “Certificates”) and any notes backed by the Certificates (the “Notes”),
                  which was in effect immediately prior to such withdrawal or downgrade),
                  Party A shall, at its own expense, subject to the Rating Agency
                  Condition,
                  either (i) seek another entity to replace Party A as party to this
                  Agreement that meets or exceeds the Approved Rating Thresholds
                  on terms
                  substantially similar to this Agreement, (ii) obtain a guaranty
                  of, or a
                  contingent agreement of another person with the Approved Rating
                  Thresholds, to honor, Party A’s obligations under this Agreement, or (iii)
                  post collateral which will be sufficient to restore the immediately
                  prior
                  ratings of the Certificates and any Notes. In the event that Party
                  A’s
                  long-term unsecured and unsubordinated debt rating is withdrawn
                  or reduced
                  below “BBB-” by S&P (a “Required Rating Downgrade Event”), then within
                  ten (10) calendar days after such rating withdrawal or downgrade,
                  Party A
                  shall, subject to the Rating Agency Condition and at its own expense,
                  either (i) secure another entity to replace Party A as party to
                  this
                  Agreement that meets or exceeds the Approved Rating Thresholds
                  on terms
                  substantially similar to this Agreement or (ii) obtain a guaranty
                  of, or a
                  contingent agreement of another person with the Approved Rating
                  Thresholds, to honor, Party A’s obligations under this Agreement. For
                  purposes of this provision, “Rating Agency Condition” means, with respect
                  to any particular proposed act or omission to act hereunder that
                  the party
                  acting or failing to act must consult with each of the Swap Rating
                  Agencies then providing a rating of the Certificates and any Notes
                  and
                  receive from each of the Swap Rating Agencies a prior written confirmation
                  that the proposed action or inaction would not cause a downgrade
                  or
                  withdrawal of the then-current rating of any Certificates or Notes.
                  For
                  purposes of this Agreement, the occurrence of either a Collateral
                  Rating
                  Downgrade Event or a Required Rating Downgrade Event may be referred
                  to as
                  a rating agency downgrade (a “Rating Agency
                  Downgrade”).

              

      

      

      
        	(j)	
                Compliance
                  with Regulation AB. 

              

      

      

      
        	 	
                (i)

              	
                Party
                  A agrees and acknowledges that Nomura
                  Asset Acceptance Corporation (the “Depositor”) may be required under
                  Regulation AB, as defined in the Pooling and Servicing Agreement,
                  to
                  disclose certain financial information regarding Party A or its
                  group of
                  affiliated entities, if applicable, depending on the aggregate
                  “significance percentage” of this Agreement and any other derivative
                  contracts between Party A or its group of affiliated entities,
                  if
                  applicable, and Party B, as calculated from time to time in accordance
                  with Item 1115 of Regulation AB. 

              

      

      

      
        	 	
                (ii)

              	
                It
                  shall be a swap disclosure event (“Swap Disclosure Event”) if, on any
                  Business Day after the date hereof for so long as the Issuing Entity
                  is
                  required to file periodic reports under the Exchange Act with respect
                  to
                  the Certificates, Party B or the Depositor requests from Party
                  A by
                  written notice the applicable financial information described in
                  Item
                  1115(b) of Regulation AB (such request to be based on a reasonable
                  determination by the Depositor, when the “significance percentage” is 6%
                  or higher; it being understood that the determination of such
                  “significance percentage” shall be based on “significance estimates” made
                  in substantially the same manner as that used in the Sponsor’s internal
                  risk management process in respect of similar instruments and furnished
                  by
                  the Sponsor to the Depositor, or if the Sponsor does not furnish
                  such
                  significance estimates to the Depositor, based on a determination
                  of such
                  significance estimates by the Depositor in a manner that it deems
                  reasonable) and Party B has received such notice (the “Swap Financial
                  Disclosure”).

              

      

      

      
        	 	
                (iii)

              	
                Upon
                  the occurrence of a Swap Disclosure Event, Party A, at its own
                  expense and
                  subject to the Rating Agency Condition, shall either (1)(a) either
                  (i)
                  provide to the Depositor the current Swap Financial Disclosure
                  in an
                  EDGAR-compatible format (for example, such information may be provided
                  in
                  Microsoft Word® or Microsoft Excel® format but not in .pdf format) or (ii)
                  provide written consent to the Depositor to incorporation by reference
                  of
                  such current Swap Financial Disclosure that are filed with the
                  Securities
                  and Exchange Commission in the Exchange Act Reports of the Depositor,
                  (b)
                  if applicable, cause its outside accounting firm to provide its
                  consent to
                  filing or incorporation by reference in the Exchange Act Reports
                  of the
                  Depositor of such accounting firm’s report relating to their audits of
                  such current Swap Financial Disclosure, and (c) provide to the
                  Depositor
                  any updated Swap Financial Disclosure with respect to Party A or
                  any
                  entity that consolidates Party A within five Business Days of the
                  release
                  of any such updated Swap Financial Disclosure; (2) secure another
                  entity
                  to replace Party A as party to this Agreement on terms substantially
                  similar to this Agreement, which entity (or a guarantor therefor)
                  meets or
                  exceeds the Approved Rating Thresholds and which entity complies
                  with the
                  requirements of Item 1115 of Regulation AB and clause (1) above,
                  or (3)
                  obtain a guaranty of Party A’s obligations under this Agreement from an
                  affiliate of Party A that complies with the financial information
                  disclosure requirements of Item 1115 of Regulation AB, and cause
                  such
                  affiliate to provide Swap Financial Disclosure and any future Swap
                  Financial Disclosure and other information pursuant to clause (1),
                  such
                  that disclosure provided in respect of such affiliate will satisfy
                  any
                  disclosure requirements applicable to Party B or (4) post collateral
                  satisfactory to the Depositor that will be sufficient to reduce
                  the
                  “significance percentage” as defined under Item 1115 of Regulation AB such
                  that no information that would otherwise have constituted Swap
                  Financial
                  Disclosure will be required to be filed with, or incorporated by
                  reference
                  into, the Exchange Act reports of the Depositor pursuant to Item
                  1115 of
                  Regulation AB. Notwithstanding the foregoing, Party A agrees that
                  if
                  future guidance from the Securities and Exchange Commission with
                  respect
                  to Item 1115 precludes the posting of collateral or otherwise limits
                  the
                  posting of collateral in reduction of the “significance percentage”, item
                  (4) shall cease to operate under Part 5(n)(iii).
                  

              

      

      

      

      
        	 	
                (iv)

              	
                Party
                  A agrees that, in the event that Party A provides Swap Financial
                  Disclosure to the Depositor in accordance with clause (iii)(1)
                  above or
                  causes its affiliate to provide Swap Financial Disclosure to the
                  Depositor
                  in accordance with clause (iii)(3) above, it will indemnify and
                  hold
                  harmless the Depositor, its respective directors or officers and
                  any
                  person controlling the Depositor, from and against any and all
                  losses,
                  claims, damages and liabilities caused by any untrue statement
                  or alleged
                  untrue statement of a material fact contained in such Swap Financial
                  Disclosure or caused by any omission or alleged omission to state
                  in such
                  Swap Financial Disclosure a material fact required to be stated
                  therein or
                  necessary to make the statements therein, in light of the circumstances
                  under which they were made, not misleading.

              

      

      

      
        	 	
                (v)

              	
                Depositor
                  shall be an express third party beneficiary of this Agreement as
                  if a
                  party hereto to the extent of Depositor’s rights explicitly specified
                  herein.

              

      

      

      
        	(k)	
                Proceedings.
                  Party A shall not institute against, or cause any other person
                  to
                  institute against, or join any other person in instituting against
                  Party
                  B, the Supplemental Interest Trust, or the trust formed pursuant
                  to the
                  Pooling and Servicing Agreement, in any bankruptcy, reorganization,
                  arrangement, insolvency or liquidation proceedings or other proceedings
                  under any federal or state bankruptcy or similar law for a period
                  of one
                  year (or, if longer, the applicable preference period) and one
                  day
                  following payment in full of the Certificates and any Notes. This
                  provision will survive the termination of this Agreement. 

              

      

      

      
        	
                (l)

              	
                Payment
                  Instructions.
                  Party A hereby agrees that, unless notified in writing by the Supplemental
                  Interest Trust Trustee of other payment instructions, any and all
                  amounts
                  payable by Party A to Party B under this Agreement shall be paid
                  to the
                  account specified in paragraph 4
                  below.

              

      

      

      
        	
                (m)

              	
                Supplemental
                  Interest Trust Trustee Liability Limitations.
                  It
                  is expressly understood and agreed by the parties hereto that (a)
                  this
                  Agreement is executed by HSBC Bank USA, National Association (“HSBC”) not
                  in its individual capacity, but solely as Supplemental Interest
                  Trust
                  Trustee under the Pooling and Servicing Agreement in the exercise
                  of the
                  powers and authority conferred and invested in it thereunder; (b)
                  HSBC has
                  been directed pursuant to the Pooling and Servicing Agreement to
                  enter
                  into this Agreement and to perform its obligations hereunder; (c)
                  each of
                  the representations, undertakings and agreements herein made on
                  behalf of
                  the Trust is made and intended not as personal representations
                  of the
                  Trustee but is made and intended for the purpose of binding only
                  the
                  Trust; and (d) under no circumstances shall HSBC
                  in its individual capacity be personally liable for any payments
                  hereunder
                  or for the breach or failure of any obligation, representation,
                  warranty
                  or covenant made or undertaken under this
                  Agreement.

              

      

      

      
        	(n)	
                Additional
                  Definitions. 

              

      

       

      As
        used
        in this Agreement, the following terms shall have the meanings set forth
        below,
        unless the context clearly requires otherwise: 

       

      “Moody’s”
        means Moody’s Investors Service, Inc., or any successor. 

       

      “S&P”
        means Standard & Poor’s Ratings Services, or any successor. 

       

      

      
        	
                (o)

              	
                Severability.
                  If
                  any term, provision, covenant, or condition of this Agreement,
                  or the
                  application thereof to any party or circumstance, shall be held
                  to be
                  invalid or unenforceable (in whole or in part) for any reason,
                  the
                  remaining terms, provisions, covenants, and conditions hereof shall
                  continue in full force and effect as if this Agreement had been
                  executed
                  with the invalid or unenforceable portion eliminated, so long as
                  this
                  Agreement as so modified continues to express, without material
                  change,
                  the original intentions of the parties as to the subject matter
                  of this
                  Agreement and the deletion of such portion of this Agreement will
                  not
                  substantially impair the respective benefits or expectations of
                  the
                  parties; provided, however, that this severability provision shall
                  not be
                  applicable if any provision of Section 2, 5, 6, or 13 (or any definition
                  or provision in Section 14 to the extent it relates to, or is used
                  in or
                  in connection with any such Section) shall be so held to be invalid
                  or
                  unenforceable. 

              

      

      

      The
        parties shall endeavor to engage in good faith negotiations to replace any
        invalid or unenforceable term, provision, covenant or condition with a valid
        or
        enforceable term, provision, covenant or condition, the economic effect of
        which
        comes as close as possible to that of the invalid or unenforceable term,
        provision, covenant or condition. 

      

      
        	
                (p)

              	
                FDIC
                  Requirements.
                  If
                  Party A is a bank subject to the requirements of 12 U.S.C. § 1823(e),
                  Party A represents that its execution, delivery and performance
                  of this
                  Agreement (including the Credit Support Annex and each Confirmation)
                  have
                  been approved by its board of directors or its loan committee,
                  such
                  approval is reflected in the minutes of said board of directors
                  or loan
                  committee, and this Agreement (including the Credit Support Annex
                  and each
                  Confirmation) will be maintained as one of its official records
                  continuously from the time of its execution (or in the case of
                  any
                  Confirmation, continuously until such time as the relevant Transaction
                  matures and the obligations therefor are satisfied in
                  full).

              

      

      

      
        	
                (q)

              	
                Payments
                  by Party B upon Early Termination.
                  Notwithstanding anything to the contrary in the ISDA Form Master
                  Agreement, if an amount is calculated as being due in respect of
                  any Early
                  Termination Date under Section 6(e) from Party B to Party A, then
                  such
                  payment shall be due on the first succeeding Distribution Date
                  following
                  the Early Termination Date (or if such Early Termination Date is
                  the final
                  Distribution Date, on such final Distribution Date), and on any
                  subsequent
                  Distribution Dates until paid in
                  full.

              

      

       

      

      4.    Account
        Details and Settlement Information:  

      

      
        	Payments
                to Party A:	
                ABN
                  AMRO Bank N.V., New York, ABNAUS33

                
                  CHIPS
                    007535

                  ABA
                    No. 026009580

                  A/C
                    Name: ABN Amro Bank N.V., London

                  A/C
                    No. 661001036741

                  Ref.
                    DCM

                

              

      

      
         

      

      
        	
                Payments
                  to Party B:

              	
                Wells
                  Fargo Bank, N.A.

                
                  ABA
                    No. 121-000-248

                  Acct.
                    No. 3970771416

                  Acct.
                    Name: SAS Clearing

                  FFC:
                    NAAC 2006-AR3, 50950001

                

              

      

      
      

      This
        Agreement may be executed in several counterparts, each of which shall be
        deemed
        an original but all of which together shall constitute one and the same
        instrument.

       

      We
        are
        very pleased to have executed this Transaction with you and we look forward
        to
        completing other transactions with you in the near future.

      

      Very
        truly yours,

      

      ABN
        AMRO
        Bank N.V.

      

      
        	 	 	 	 
	By:      /s/ Robert
                Furlong 	 	 	By:  /s/ Clifford
                Bullock
	
                
                  

                

              	 	 	
                
                  

                

              
	
                Name: 
                  Robert Furlong

                Title: 
                  Authorised Signature

              	 	 	
                Name:
                  Clifford
                  Bullock 
Title:
                  Authorised
                  Signature

              

      

       

       

      Party
        B,
        acting through its duly authorized signatory, hereby agrees to, accepts and
        confirms the terms of the foregoing as of the Trade Date.

      

      HSBC
        Bank
        USA, National Association not individually, but solely as Supplemental Interest
        Trust Trustee on behalf of the supplemental interest trust with respect to
        the
        Nomura Asset Acceptance Corporation, Alternative Loan Trust, Series 2006-AR3,
        Mortgage Pass-Through Certificates. 

      

      
        	 	 	 	 
	By:    
/s/ Elena
                Zheng	 	 	 
	
                
                  

                

              	 	 	
              
	
                Name: Elena
                  Zheng

                Title:
                  Assistant Vice President

              	 	 	 

      

      
 

      

      SCHEDULE
        I

      (all
        such
        dates subject to No Adjustment with respect to Fixed Rate Payer Period End
        Dates
        and adjustment in accordance with the Following Business Day Convention with
        respect to Floating Rate Payer Period End Dates)]

      

      
        	
                From
                  and including

              	
                To
                  but excluding

              	
                Notional
                  Amount (USD)

              
	
                Effective
                  Date

              	
                10/25/2006

              	
                472,418,000.00

              
	
                10/25/2006

              	
                11/25/2006

              	
                459,097,789.75

              
	
                11/25/2006

              	
                12/25/2006

              	
                432,978,863.62

              
	
                12/25/2006

              	
                1/25/2007

              	
                411,415,887.20

              
	
                1/25/2007

              	
                2/25/2007

              	
                390,666,482.98

              
	
                2/25/2007

              	
                3/25/2007

              	
                371,455,819.09

              
	
                3/25/2007

              	
                4/25/2007

              	
                353,010,487.38

              
	
                4/25/2007

              	
                5/25/2007

              	
                335,632,598.76

              
	
                5/25/2007

              	
                6/25/2007

              	
                319,100,536.50

              
	
                6/25/2007

              	
                7/25/2007

              	
                303,373,139.34

              
	
                7/25/2007

              	
                8/25/2007

              	
                288,411,248.78

              
	
                8/25/2007

              	
                9/25/2007

              	
                274,177,611.64

              
	
                9/25/2007

              	
                10/25/2007

              	
                260,636,787.37

              
	
                10/25/2007

              	
                11/25/2007

              	
                247,755,059.88

              
	
                11/25/2007

              	
                12/25/2007

              	
                235,500,353.60

              
	
                12/25/2007

              	
                1/25/2008

              	
                223,842,153.73

              
	
                1/25/2008

              	
                2/25/2008

              	
                212,751,430.25

              
	
                2/25/2008

              	
                3/25/2008

              	
                202,200,565.71

              
	
                3/25/2008

              	
                4/25/2008

              	
                192,163,286.51

              
	
                4/25/2008

              	
                5/25/2008

              	
                182,217,216.09

              
	
                5/25/2008

              	
                6/25/2008

              	
                172,878,624.57

              
	
                6/25/2008

              	
                7/25/2008

              	
                151,213,250.66

              
	
                7/25/2008

              	
                8/25/2008

              	
                143,657,557.62

              
	
                8/25/2008

              	
                9/25/2008

              	
                136,469,695.50

              
	
                9/25/2008

              	
                10/25/2008

              	
                129,631,760.90

              
	
                10/25/2008

              	
                11/25/2008

              	
                123,126,721.71

              
	
                11/25/2008

              	
                12/25/2008

              	
                116,938,374.66

              
	
                12/25/2008

              	
                1/25/2009

              	
                111,051,305.01

              
	
                1/25/2009

              	
                2/25/2009

              	
                105,450,848.20

              
	
                2/25/2009

              	
                3/25/2009

              	
                100,123,053.32

              
	
                3/25/2009

              	
                4/25/2009

              	
                92,141,490.79

              
	
                4/25/2009

              	
                5/25/2009

              	
                87,441,918.44

              
	
                5/25/2009

              	
                6/25/2009

              	
                82,990,674.14

              
	
                6/25/2009

              	
                7/25/2009

              	
                77,257,838.91

              
	
                7/25/2009

              	
                8/25/2009

              	
                68,844,596.01

              
	
                8/25/2009

              	
                9/25/2009

              	
                65,299,283.83

              
	
                9/25/2009

              	
                10/25/2009

              	
                61,926,586.08

              
	
                10/25/2009

              	
                11/25/2009

              	
                60,968,110.52

              
	
                11/25/2009

              	
                12/25/2009

              	
                57,915,843.15

              
	
                12/25/2009

              	
                1/25/2010

              	
                55,012,189.73

              
	
                1/25/2010

              	
                2/25/2010

              	
                52,249,915.85

              
	
                2/25/2010

              	
                3/25/2010

              	
                49,622,139.22

              
	
                3/25/2010

              	
                4/25/2010

              	
                47,122,312.52

              
	
                4/25/2010

              	
                5/25/2010

              	
                44,744,207.07

              
	
                5/25/2010

              	
                6/25/2010

              	
                42,481,897.37

              
	
                6/25/2010

              	
                7/25/2010

              	
                40,329,746.30

              
	
                7/25/2010

              	
                8/25/2010

              	
                38,282,315.40

              
	
                8/25/2010

              	
                9/25/2010

              	
                36,334,585.70

              
	
                9/25/2010

              	
                10/25/2010

              	
                34,481,703.30

              
	
                10/25/2010

              	
                11/25/2010

              	
                32,719,050.56

              
	
                11/25/2010

              	
                12/25/2010

              	
                31,042,234.60

              
	
                12/25/2010

              	
                1/25/2011

              	
                29,447,076.37

              
	
                1/25/2011

              	
                2/25/2011

              	
                27,929,600.25

              
	
                2/25/2011

              	
                3/25/2011

              	
                26,486,024.12

              
	
                3/25/2011

              	
                4/25/2011

              	
                25,112,749.97

              
	
                4/25/2011

              	
                5/25/2011

              	
                23,787,289.81

              
	
                5/25/2011

              	
                6/25/2011

              	
                22,444,309.01

              
	
                6/25/2011

              	
                7/25/2011

              	
                17,236,006.36

              
	
                7/25/2011

              	
                8/25/2011

              	
                4,834,366.66

              
	
                8/25/2011

              	
                Termination
                  Date

              	
                4,515,519.80

              

      

       

      

      EXHIBIT
        P

       

      
        ASSIGNMENT,
          ASSUMPTION AND RECOGNITION AGREEMENT

         

        This
          Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) is made
          and entered into as of September 29, 2006 (the “Closing Date”), among Nomura
          Credit & Capital, Inc., having an address at 2
          World
          Financial Center, Building B, 21st
          Floor,
          New York, New York 10281
          (the
“Assignor”), Nomura Asset Acceptance Corporation, having an address at 2 World
          Financial Center, Building B, 21st
          Floor,
          New York, New York 10281 (the “Assignee”) and Wachovia Mortgage Corporation,
          having an address at 401 S. Tryon Street, 22nd
          Floor,
          Charlotte, North Carolina 28202 (the “Servicer” or the “Company”).

         

        In
          consideration of the mutual promises contained herein the parties hereto
          agree
          that the residential mortgage loans identified on the schedule annexed
          hereto as
Attachment
          1
          (the
“Assigned Loans”), which are now serviced by the Servicer on behalf of the
          Assignor and its successors and assigns pursuant to the Seller’s Purchase,
          Warranties and Servicing Agreement, dated as of March 1, 2006 and the related
          Regulation AB Compliance Addendum, dated April 12, 2006, each between the
          Assignor and the Servicer (together, the “Servicing Agreement”) and attached
          hereto as Attachment
          2,
          shall
          be sold by the Assignor to the Assignee pursuant to the Mortgage Loan Purchase
          Agreement, dated as of September 29, 2006 (the “MLPA”), between the Assignor and
          the Assignee and subject to the terms of this AAR Agreement. The Assignee
          intends to transfer all right, title and interest in and to the Assigned
          Loans
          and the Servicing Agreement to HSBC Bank USA, National Association, as
          trustee
          (the “Trustee”) for
          the
          holders of Nomura Asset Acceptance Corporation, Alternative Loan Trust,
          Series
          2006-AR3 Mortgage Pass-Through Certificates (the “Certificateholders”) pursuant
          to the Pooling and Servicing Agreement, dated as of September 1, 2006 (the
          “Pooling and Servicing Agreement”) among the Assignor, as sponsor, the Assignee,
          as depositor, the Trustee, GMAC Mortgage Corporation as a servicer and
          Wells
          Fargo Bank, N.A., as master servicer (the “Master Servicer”) and securities
          administrator (the “Securities Administrator”).
          Capitalized terms used herein but not defined shall have the meanings ascribed
          to them in the Servicing Agreement.

         

        Assignment
          and Assumption

         

        1.  Assignor
          hereby grants, transfers and assigns to Assignee all of the right, title
          and
          interest of Assignor in, to and under the Servicing Agreement as it relates
          to
          the Assigned Loans. Assignor specifically reserves
          and does
          not assign to Assignee any right, title and interest in, to or under the
          Servicing Agreement, as it relates to any mortgage loans other than the
          Assigned
          Loans. Notwithstanding anything to the contrary contained herein, the Assignor
          specifically reserves and does not assign to the Assignee the representations
          and warranties contained in Sections 3.01 and 3.02 of the Servicing Agreement
          or
          the right to enforce the representations and warranties against the Company,
          including, without limitation, the rights set forth in Section 3.03 and
          3.04 of
          the Servicing Agreement.

         

        Representations,
          Warranties and Covenants

         

        2.  Assignor
          warrants and represents to Assignee and Servicer as of the Closing
          Date:

         

        (a)  Attached
          hereto as Attachment
          2
          is a
          true and accurate copy of the Servicing Agreement, which Servicing Agreement
          is
          in full force and effect as of the date hereof and the provisions of which,
          except as set forth herein, have not been waived, amended or modified in
          any
          respect, nor has any notice of termination been given thereunder;

         

        (b)  Assignor
          is the lawful owner of the Assigned Loans with full right to transfer the
          Assigned Loans and any and all of its interests and rights under the Servicing
          Agreement as they relate to the Assigned Loans, free and clear of any and
          all
          claims and encumbrances; and upon the transfer of the Assigned Loans to
          Assignee
          under the MLPA, Assignee shall have good title to each and every Assigned
          Loan,
          as well as any and all of Assignor’s interests and rights under the Servicing
          Agreement as they relate to the Assigned Loans, free and clear of any and
          all
          liens, claims and encumbrances;

         

        (c)  Assignor
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation, and has all requisite power and authority
          to
          sell, transfer and assign the Assigned Loans;

         

        (d)  Assignor
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Assignor’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignor’s certificate of incorporation or bylaws or any legal restriction, or
          any material agreement or instrument to which Assignor is now a party or
          by
          which it is bound, or result in the violation of any law, rule, regulation,
          order, judgment or decree to which Assignor or its property is subject.
          The
          execution, delivery and performance by Assignor of this AAR Agreement and
          the
          consummation by it of the transactions contemplated hereby, have been duly
          authorized by all necessary corporate action on the part of Assignor. This
          AAR
          Agreement has been duly executed and delivered by Assignor and, upon the
          due
          authorization, execution and delivery by Assignee and Servicer, will constitute
          the valid and legally binding obligation of Assignor enforceable against
          Assignor in accordance with its terms except as enforceability may be limited
          by
          bankruptcy, reorganization, insolvency, moratorium or other similar laws
          now or
          hereafter in effect relating to creditors’ rights generally, and by general
          principles of equity regardless of whether enforceability is considered
          in a
          proceeding in equity or at law; and

         

        (e)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignor in connection with the execution, delivery or performance by Assignor
          of this AAR Agreement, or the consummation by it of the transactions
          contemplated hereby.

         

        3.  Assignee
          warrants and represents to, and covenants with, Assignor and Servicer as
          of the
          Closing Date:

         

        (a)  Assignee
          is duly organized, validly existing and in good standing under the laws
          of the
          jurisdiction of its incorporation and has all requisite power and authority
          to
          acquire, own and purchase the Assigned Loans;

         

        (b)  Assignee
          has full corporate power and authority to execute, deliver and perform
          its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of Assignee’s business and will not conflict
          with, or result in a breach of, any of the terms, conditions or provisions
          of
          Assignee’s certificate of incorporation or by-laws or any legal restriction, or
          any material agreement or instrument to which Assignee is now a party or
          by
          which it is bound, or result in the violation of any law, rule, regulation,
          order, judgment or decree to which Assignee or its property is subject.
          The
          execution, delivery and performance by Assignee of this AAR Agreement and
          the
          consummation by it of the transactions contemplated hereby, have been duly
          authorized by all necessary corporate action on the part of Assignee. This
          AAR
          Agreement has been duly executed and delivered by Assignee and, upon the
          due
          authorization, execution and delivery by Assignor and the Servicer, will
          constitute the valid and legally binding obligation of Assignee enforceable
          against Assignee in accordance with its terms except as enforceability
          may be
          limited by bankruptcy, reorganization, insolvency, moratorium or other
          similar
          laws now or hereafter in effect relating to creditors’ rights generally, and by
          general principles of equity regardless of whether enforceability is considered
          in a proceeding in equity or at law;

         

        (c)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          Assignee in connection with the execution, delivery or performance by Assignee
          of this AAR Agreement, or the consummation by it of the transactions
          contemplated hereby; and

         

        (d)  Assignee
          agrees to be bound by all of the terms, covenants and conditions of the
          Servicing Agreement, as modified by this AAR Agreement, with respect to
          the
          Assigned Loans.

         

        4.  The
          Servicer warrants and represents to, and covenants with, Assignor and Assignee
          as of the Closing Date:

         

        (a)  Attached
          hereto as Attachment
          2
          is a
          true and accurate copy of the Servicing Agreement, which Servicing Agreement
          is
          in full force and effect as of the Closing Date and the provisions of which,
          except as set forth herein, have not been waived, amended or modified in
          any
          respect, nor has any notice of termination been given thereunder;

         

        (b)  The
          Servicer is duly organized, validly existing and in good standing under
          the laws
          of the United States of America, and has all requisite power and authority
          to
          service the Assigned Loans and otherwise to perform its obligations under
          the
          Servicing Agreement, as modified by this AAR Agreement;

         

        (c)  The
          Servicer has full power and authority to execute, deliver and perform its
          obligations under this AAR Agreement, and to consummate the transactions
          set
          forth herein. The consummation of the transactions contemplated by this
          AAR
          Agreement is in the ordinary course of the Servicer’s business and will not
          conflict with, or result in a breach of, any of the terms, conditions or
          provisions of the Servicer’s charter or by-laws or any legal restriction, or any
          material agreement or instrument to which the Servicer is now a party or
          by
          which it is bound, or result in the violation of any law, rule, regulation,
          order, judgment or decree to which the Servicer or its property is subject.
          The
          execution, delivery and performance by the Servicer of this AAR Agreement
          and
          the consummation by it of the transactions contemplated hereby, have been
          duly
          authorized by all necessary action on the part of the Servicer. This AAR
          Agreement has been duly executed and delivered by the Servicer, and, upon
          the
          due authorization, execution and delivery by Assignor and Assignee, will
          constitute the valid and legally binding obligation of the Servicer, enforceable
          against the Servicer in accordance with its terms except as enforceability
          may
          be limited by bankruptcy, reorganization, insolvency, moratorium or other
          similar laws now or hereafter in effect relating to creditors’ rights generally,
          and by general principles of equity regardless of whether enforceability
          is
          considered in a proceeding in equity or at law;

         

        (d)  No
          consent, approval, order or authorization of, or declaration, filing or
          registration with, any governmental entity is required to be obtained or
          made by
          the Servicer in connection with the execution, delivery or performance
          by the
          Servicer of this AAR Agreement, or the consummation by it of the transactions
          contemplated hereby; and

         

        (e)  The
          Servicer shall service the Assigned Loans in accordance with the terms
          and
          provisions of the Servicing Agreement, as modified by this AAR Agreement.
          The
          Servicer shall establish a Custodial Account and an Escrow Account under
          the
          Servicing Agreement with respect to the Assigned Loans separate from the
          Custodial Account and Escrow Account previously established under the Servicing
          Agreement in favor of Assignor, and shall remit collections received on
          the
          Assigned Loans to the appropriate account as required by the Servicing
          Agreement. The Custodial Account and the Escrow Account each shall be entitled
          “Wachovia Mortgage Corporation, as Servicer for HSBC Bank USA, National
          Association as Trustee, in trust for the registered holders of Nomura Asset
          Acceptance Corporation, Alternative Loan Trust,
          Series
          2006-AR3”
and
          each shall be established and maintained as an Eligible Account. Any funds
          held
          in the Custodial Account are and shall remain uninvested.

         

        Recognition
          of Assignee.

         

        5.  From
          and
          after the date hereof, Servicer shall recognize Assignee as owner of the
          Assigned Loans, and acknowledges that the Assigned Loans will be part of
          a
          REMIC, and will service the Assigned Loans in accordance with the Servicing
          Agreement, as modified by this AAR Agreement, but in no event in a manner
          that
          would (i) cause any REMIC to fail to qualify as a REMIC or (ii) result
          in the
          imposition of a tax upon any REMIC (including but not limited to the tax
          on
          prohibited transactions as defined in Section 860F(a)(2) of the Internal
          Revenue
          Code of 1986 (the “Code”) and the tax on contributions to a REMIC set forth in
          Section 860G(d) of the Code). It is the intention of Assignor, Servicer
          and
          Assignee that this AAR Agreement shall be binding upon and for the benefit
          of
          the respective successors and assigns of the parties hereto. Neither Servicer
          nor Assignor shall amend or agree to amend, modify, waive, or otherwise
          alter
          any of the terms or provisions of the Servicing Agreement which amendment,
          modification, waiver or other alteration would in any way affect the Assigned
          Loans without the prior written consent of the Master Servicer and Trustee.
          

         

        6.  The
          Servicer hereby acknowledges that the Master Servicer, acting pursuant
          to the
          terms of the Pooling and Servicing Agreement, has the right to enforce
          all
          obligations of the Servicer, as they relate to the Assigned Loans, under
          the
          Servicing Agreement. Such right will include, without limitation, the right
          to
          indemnification, the right to terminate the Servicer under the Servicing
          Agreement upon the occurrence of an Event of Default thereunder and the
          right to
          exercise certain rights of consent and approval relating to actions taken
          by the
          Servicer under the Servicing Agreement. In addition, any notice required
          to be
          given by the “Purchaser” pursuant to Section 8.01 of the Servicing Agreement
          shall be given by the Master Servicer or the Trustee. The Servicer further
          acknowledges that pursuant to the terms of the Pooling and Servicing Agreement,
          the Master Servicer is required to monitor the performance of the Servicer
          under
          the Servicing Agreement. The Master Servicer shall have the right to receive
          all
          remittances required to be made by the Servicer under the Servicing Agreement,
          the right to receive all monthly reports and other data required to be
          delivered
          by the Servicer under the Servicing Agreement, the right to examine the
          books
          and records of the Servicer under the Servicing Agreement and the right
          to
          indemnification under the Servicing Agreement. In addition, if the Servicer
          shall fail to remit any payment pursuant to the Servicing Agreement, the
          Master
          Servicer shall notify the Trustee and the Servicer of such failure as set
          forth
          in Section 8.01 of the Servicing Agreement. The Servicer hereby agrees
          to make
          all remittances required under the Servicing Agreement to the Master Servicer
          for the benefit of the Certificateholders in accordance with the following
          wire
          instructions:

         

        Wells
          Fargo Bank, N.A.

        ABA:
          121000248

        Acct
          #:
          3970771416

        Acct
          Name: SAS Clearing

        For
          Further Credit to: NAAC 2006-AR3 Account #50950000

        

        7.  Pursuant
          to Section 10.01(b) of the Servicing Agreement, the Servicer hereby makes
          the
          representations and warranties set forth in Section 3.01 of the Servicing
          Agreement as of the Closing Date.

         

        8.  In
          the
          event that the Assignor substitutes any Deleted Mortgage Loans with any
          Qualified Substitute Mortgage Loans in the manner set forth in the Pooling
          and
          Servicing Agreement, the Assignor shall determine the amount (the “Substitution
          Shortfall Amount”), if any, by which the aggregate purchase price of all such
          Deleted Mortgage Loans exceeds the aggregate of, as to each such Qualified
          Substitute Mortgage Loan, (x) the scheduled principal balance thereof as
          of the
          date of substitution, together with one month’s interest on such scheduled
          principal balance at the applicable Mortgage Interest Rate (minus the
          Administration Fee Rate (as defined below)), plus (y) all outstanding Monthly
          Advances and Servicing Advances (including nonrecoverable Monthly Advances
          and
          nonrecoverable Servicing Advances) related thereto; provided, however,
          if the
          Servicer repurchases the Deleted Mortgage Loan, the amounts set forth in
          clause
          (y) shall not be included in the calculation of the Substitution Shortfall
          Amount. On the date of such substitution, the Assignor will deliver or
          cause to
          be delivered to the Servicer for deposit in the Custodial Account an amount
          equal to the Substitution Shortfall Amount, if any, and the Servicer shall
          acknowledge in writing (or electronic format) to the Trustee that it has
          received such Substitution Shortfall Amount from the Assignor. The Servicer
          shall remit such Substitution Shortfall Amount to the Securities Administrator
          on the next succeeding Servicer Remittance Date. As used in this Section,
          the
“Administration Fee Rate” means the sum of the rates used to calculate the fees
          payable to the Servicer and the credit risk manager under the Pooling and
          Servicing Agreement. 

         

        Modification
          of the Servicing Agreement

         

        9.  The
          Servicer and Assignor hereby amend the Servicing Agreement with respect
          to the
          Assigned Loans as follows:

         

        (a)  The
          following definitions are added to Article I of the Servicing Agreement
          in
          alphabetical order:

         

        “Authorized
          Servicer Representative”:
          Any
          officer of the Servicer involved in, or responsible for, the administration
          and
          servicing of the Mortgage Loans whose name and facsimile signature appear
          on a
          list of servicing officers furnished to the Trustee and the Master Servicer
          by
          the Servicer on the closing date of any securitization transaction, as
          such list
          may from time to time be amended. 

         

        “Certificate”:
          Any
          one of the certificates of any class executed and authenticated by the
          Securities Administrator and issued in connection with the NAAC 2006-AR3
          transaction.

         

        “Commission”:
          The
          United States Securities and Exchange Commission.

         

        “Depositor”:
          Nomura
          Asset Acceptance Corporation.”

         

        “Distribution
          Date”:
          The
          25th
          day of
          any month, or if such 25th
          day is
          not a Business Day, the Business Day immediately following such 25th
          day,
          commencing in October 2006.

         

        “Master
          Servicer”:
          Wells
          Fargo Bank, National Association or any successor thereto.”

         

        “Nonrecoverable
          Advance”:
          With
          respect to any Mortgage Loan, any portion of a Monthly Advance or Servicing
          Advance previously made or proposed to be made by the Seller pursuant to
          this
          Agreement that, in the good faith judgment of the Seller, will not or,
          in the
          case of a proposed Monthly Advance or Servicing Advance, would not, be
          ultimately recoverable by it from the related Mortgagor, related Liquidation
          Proceeds, Insurance Proceeds or otherwise.

         

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

         

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

         

        “Securities
          Administrator”:
          Wells
          Fargo Bank, National Association or any successor thereto.

         

        “Sponsor”:
          Nomura
          Credit and Capital, Inc.

         

        “Trust”:
          Nomura
          Asset Acceptance Corporation, Alternative Loan Trust, Series
          2006-AR3.

         

        “Trustee”:
          HSBC
          Bank USA, National Association a national banking association, or its successor
          in interest, or any successor trustee.

         

        (b)  The
          definition of “Business Day” in Article I of the Servicing Agreement is modified
          by replacing clause (ii) with the following:

         

        “(ii)
          a
          day on which banking institutions in the State of New York, the State of
          Maryland, the State of Iowa, the State of California, the State of Minnesota,
          the State of North Carolina and the State in which any Corporate Trust
          Office of
          the Trustee is located are authorized or obligated by law or executive
          order to
          be closed.”

         

        (c)  The
          definition of “Eligible Account” in Article I of the Servicing Agreement is
          deleted in its entirety and replaced with the following:

         

        “Eligible
          Account”:
          Any of
          (i) an account or accounts maintained with a federal or state chartered
          depository institution or trust company, the long-term unsecured debt
          obligations and short-term unsecured debt obligations of which are rated
          by each
          Rating Agency in one of its two highest long-term and its highest short-term
          rating categories respectively, at the time any amounts are held on deposit
          therein, or (ii) an account or accounts in a depository institution or
          trust
          company in which such accounts are insured by the FDIC (to the limits
          established by the FDIC) and the uninsured deposits in which accounts are
          otherwise secured such that, as evidenced by an Opinion of Counsel delivered
          to
          the Trustee and to each Rating Agency, the Certificateholders have a claim
          with
          respect to the funds in such account or a perfected first priority security
          interest against any collateral (which shall be limited to Eligible Investments)
          securing such funds that is superior to claims of any other depositors
          or
          creditors of the depository institution or trust company in which such
          account
          is maintained, or (iii) a segregated, non-interest bearing trust account
          or
          accounts maintained with the corporate trust department of a federal or
          state
          chartered depository institution or trust company having capital and surplus
          of
          not less than $50,000,000, acting in its fiduciary capacity or (iv) any
          other
          account acceptable to the Rating Agencies as evidenced in writing by the
          Rating
          Agencies. Eligible Accounts may bear interest, and may include, if otherwise
          qualified under this definition, accounts maintained with the Trustee or
          Securities Administrator.

         

        (d)  The
          definition of “Eligible Institution” in Article I of the Servicing Agreement is
          deleted in its entirety.

         

        (e)  The
          definition of “Eligible Investment” in Article I of the Servicing Agreement is
          deleted in its entirety and replaced with the following:

         

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

         

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

         

        (ii)  general
          obligations of or obligations guaranteed by any state of the United States
          or
          the District of Columbia receiving the highest long-term debt rating of
          each
          Rating Agency, or such lower rating as will not result in the downgrading
          or
          withdrawal of the ratings then assigned to the Certificates by each Rating
          Agency, as evidenced by a signed writing delivered by each Rating
          Agency;

         

        (iii)  commercial
          or finance company paper which is then receiving the highest commercial
          or
          finance company paper rating of each Rating Agency that rates such securities,
          or such lower rating as will not result in the downgrading or withdrawal
          of the
          ratings then assigned to the Certificates by each Rating Agency, as evidenced
          by
          a signed writing delivered by each Rating Agency;

         

        (iv)  certificates
          of deposit, demand or time deposits, or bankers’ acceptances issued by any
          depository institution or trust company incorporated under the laws of
          the
          United States or of any state thereof and subject to supervision and examination
          by federal and/or state banking authorities (including the Trustee or the
          Master
          Servicer in its commercial banking capacity), provided that the commercial
          paper
          and/or long term unsecured debt obligations of such depository institution
          or
          trust company are then rated one of the two highest long-term and the highest
          short-term ratings of each such Rating Agency for such securities, or such
          lower
          ratings as will not result in the downgrading or withdrawal of the rating
          then
          assigned to the Certificates by any Rating Agency, as evidenced by a signed
          writing delivered by each Rating Agency;

         

        (v)  demand
          or
          time deposits or certificates of deposit issued by any bank or trust company
          or
          savings institution to the extent that such deposits are fully insured
          by the
          FDIC;

         

        (vi)  guaranteed
          reinvestment agreements issued by any bank, insurance company or other
          corporation containing, at the time of the issuance of such agreements,
          such
          terms and conditions as will not result in the downgrading or withdrawal
          of the
          rating then assigned to the Certificates by any such Rating Agency, as
          evidenced
          by a signed writing delivered by each Rating Agency;

         

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

         

        (viii)  securities
          (other than stripped bonds, stripped coupons or instruments sold at a purchase
          price in excess of 115% of the face amount thereof) bearing interest or
          sold at
          a discount issued by any corporation incorporated under the laws of the
          United
          States or any state thereof which, at the time of such investment, have
          one of
          the two highest long term ratings of each Rating Agency, or such lower
          rating as
          will not result in the downgrading or withdrawal of the rating then assigned
          to
          the Certificates by any Rating Agency, as evidenced by a signed writing
          delivered by each Rating Agency;

         

        (ix)  units
          of
          money market funds registered under the Investment Company Act of 1940
          including
          funds managed or advised by the Trustee, the Master Servicer or an affiliate
          of
          either, having a rating by S&P of AAAm-G or AAAm, if rated by Moody’s, rated
          Aaa, Aa1 or Aa2, and if rated by Fitch, F1, F2 or F3;

         

        (x)  short
          term investment funds sponsored by any trust company or banking association
          incorporated under the laws of the United States or any state thereof (including
          any such fund managed or advised by the Trustee, the Master Servicer or
          any
          affiliate thereof) which on the date of acquisition has been rated by each
          Rating Agency in their respective highest applicable rating category or
          such
          lower rating as will not result in the downgrading or withdrawal of the
          ratings
          then assigned to the Certificates by each Rating Agency, as evidenced by
          a
          signed writing delivered by each Rating Agency; and

         

        (xi)  such
          other investments having a specified stated maturity and bearing interest
          or
          sold at a discount acceptable to each Rating Agency as will not result
          in the
          downgrading or withdrawal of the rating then assigned to the Certificates
          by any
          Rating Agency, as evidenced by a signed writing delivered by each Rating
          Agency,
          as evidenced by a signed writing delivered by each Rating Agency;

         

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

         

        (f)  The
          definition of “Officer’s Certificate” in Article I of the Servicing Agreement is
          modified by adding “(i)” at the beginning thereof and the following after the
          word “Agreement”: 

         

        “,
          or
          (ii) if provided for in this Agreement, signed by an Authorized Servicer
          Representative, as the case may be, and delivered to the Depositor, the
          Sponsor,
          the Master Servicer, the Securities Administrator and/or the Trustee, as
          the
          case may be, as required by this Agreement.”

         

        (g)  The
          definition of “Opinion of Counsel” in Article I of the Servicing Agreement is
          modified by replacing such definition with the following:

         

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

         

        (h)  The
          definition of “Rating Agency” in Article I of the Servicing Agreement is
          modified by replacing such definition with the following:

         

        “Rating
          Agencies”:
          Moody’s Investors Services, Inc. and Standard & Poor’s Ratings Services, a
          division of the McGraw Hill Companies, Inc. or their successors. If such
          agencies or their successors are no longer in existence, “Rating Agencies” shall
          be such nationally recognized statistical rating agencies, or other comparable
          Persons, designated by the Depositor, notice of which designation shall
          be given
          to the Trustee.”

         

        (i)  The
          definition of “Remittance Date” is deleted in its entirety and replaced with the
          following:

         

        “Remittance
          Date”:
          The
          18th
          day of
          each month, or if such day is not a Business Day, the Business Day immediately
          preceding such 18th
          day of
          the month. 

         

        (j)  The
          definition of “Servicing Fee Rate” shall be deleted in its entirety and replaced
          with the following: 

         

        “Servicing
          Fee Rate”:
          0.375%
          per annum. 

         

        (k)  The
          first
          sentence of the third paragraph of Section 4.01 of the Servicing Agreement
          is
          modified by inserting the phrase “, other than Servicing Advances,” immediately
          after the words “any future advances”.

         

        (l)  Section
          4.04(i) of the Servicing Agreement is amended by adding “in full and in part
          collected during the related Prepayment Period” after “including Principal
          Prepayments”.

         

        (m)  Section
          4.04 of the Servicing Agreement is modified by deleting the following from
          the
          parenthetical in the last paragraph of such Section: “except that (A) any
          investment in the Eligible Institution with which the Custodial Account
          is
          maintained may mature on the Remittance Date and (B)”. 

         

        (n)  Section
          4.05 of the Servicing Agreement is modified by deleting the word “and” at the
          end of clause (viii), deleting the “.” at the end of clause (ix) and adding “;”
and adding the following clauses: “(x) to reimburse itself for any Monthly
          Advance or Servicing Advance previously made by it which the Seller has
          determined to be a Nonrecoverable Advance, as evidenced by the delivery
          to the
          Master Servicer of a certificate signed by an officer of the
          Seller”.

         

        (o)  Section
          4.13 of the Servicing Agreement is modified by deleting from the last paragraph
          of such Section, the first two sentences of such paragraph. 

         

        (p)  Article
          IV of the Servicing Agreement is modified by adding the following as a
          new
          Section 4.15 “Compliance with REMIC Provisions”:

         

        “Section
          4.15 Compliance
          with REMIC Provisions.
          Notwithstanding anything in this Agreement to the contrary, the Seller
          shall not
          (unless the Mortgagor is in default with respect to the Mortgage Loan or
          such
          default is, in the judgment of the Seller, reasonably foreseeable) make
          or
          permit any modification, waiver or amendment of any term of any Mortgage
          Loan
          that would both (i) effect an exchange or reissuance of such Mortgage Loan
          under
          Section 1001 of the Code (or Treasury regulations promulgated thereunder)
          or
          (ii) cause the Trust 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.

         

        The
          Seller will not take any action that could result in the imposition of
          a tax
          upon the REMIC (including but not limited to the tax on prohibited transactions
          as defined in Section 860F(a)(2) of the Code and the tax on contributions
          to a
          REMIC set forth in Section 860G(d) of the Code) (either such event, an
“Adverse
          REMIC Event”) and the Seller shall not take cause the Trust Fund to take any
          such action as to which it has been advised that an Adverse REMIC Event
          could
          occur.

         

        The
          Seller shall not permit the creation of any “interests” (within the meaning of
          Section 860G of the Code) in the REMIC. The Seller shall not enter into
          any
          arrangement by which the REMIC will receive a fee or other compensation
          for
          services nor permit the REMIC to receive any income from assets other than
          “qualified mortgages” as defined in Section 860G(a)(3) of the Code or “permitted
          investments” as defined in Section 860G(a)(5) of the Code.

         

        (q)  Section
          5.01 of the Servicing Agreement is modified by changing each reference
          to
“Custodial Account” to “related “Custodial Account”.

         

        (r)  Section
          5.01 of the Servicing Agreement is modified by deleting “following the Business
          Day” from the first sentence before “on which such payment was due” and deleting
          from the second sentence “second” after “the day following the”.

         

        (s)  Section
          5.02 of the Servicing Agreement is modified by deleting the first paragraph
          of
          such Section (including subsections (i) through (vi)) and replacing it
          with the
          following:

         

        “The
          Seller shall furnish to the Purchaser an individual loan accounting report,
          as
          of the last Business Day of each month, in the Seller’s assigned loan number
          order to document Mortgage Loan payment activity, defaulted loan activity
          and
          realized losses on an individual Mortgage Loan basis. With respect to each
          month, the corresponding individual loan accounting report shall be received
          by
          the Purchaser no later than the fifth (5th) Business Day of the following
          month
          in a format mutually agreed upon by both the Purchaser and the Seller and
          in
          hard copy, which report shall contain the information set forth in Exhibit
          G (or
          such other information as is mutually agreed upon by the Seller and the
          Purchaser).”

         

        (t)  Section
          6.07 of the Servicing Agreement is modified by adding to the first sentence
          “(including documentation relating to expenses contributing to a realized
          loss)”
after “The Seller shall furnish to the Purchaser during the term of this
          Agreement such periodic, special or other reports, information or
          documentation”.

         

        (u)  Section
          7.01 of the Servicing Agreement is deleted in its entirety and replaced
          with the
          following:

         

        “The
          Seller agrees to indemnify the Purchaser and the Master Servicer and hold
          them
          harmless against any and all claims, losses, damages, penalties, fines,
          forfeitures, legal fees and related costs, judgments, and any other costs,
          fees
          and expenses (collectively, “Damages”)
          that
          the Purchaser or the Master Servicer may sustain in any way related to
          the
          failure of the Seller to observe and perform its duties, obligations, covenants,
          and agreements and to service the Mortgage Loans in compliance with the
          terms of
          this Agreement or as a result of the breach of a representation or warranty
          set
          forth in Sections 3.01 or 3.02 of this Agreement. The Seller hereunder
          shall
          immediately notify the Purchaser and the Master Servicer if a claim is
          made by a
          third party with respect to this Agreement or a Mortgage Loan, assume (with
          the
          consent of the Purchaser or the Master Servicer, as applicable) the defense
          of
          any such claim and pay all expenses in connection therewith, including
          counsel
          fees, and promptly pay, discharge and satisfy any judgment or decree which
          may
          be entered against it or the Purchaser or the Master Servicer in respect
          of such
          claim. The Seller shall follow any written instructions received from the
          Purchaser or the Master Servicer in connection with such claim. The Purchaser
          or
          the Master Servicer shall promptly reimburse the Seller for all amounts
          advanced
          by it pursuant to the two preceding sentences solely from amounts on deposit
          in
          the related Custodial Account (as described below), except when the claim
          relates to the failure of the Seller to service and administer the Mortgage
          Loans in compliance with the terms of this Agreement, the failure of the
          Seller
          to perform its duties and obligations pursuant to this Agreement, the breach
          of
          representation or warranty set forth in Sections 3.01 or 3.02, or the
          negligence, bad faith or willful misconduct of the Seller. The provisions
          of
          this Section 7.01 shall survive termination of this Agreement and transfer
          of
          the related servicing rights.”

         

        (v)  The
          following shall be added as a new Section 11.20 to the Servicing
          Agreement:

         

        “Section
          11.20. Third
          Party Beneficiary.
          For
          purposes of this Agreement, any master servicer and trustee shall be considered
          a third party beneficiary to this Agreement entitled to all the rights
          and
          benefits accruing to any master servicer or trustee, respectively, herein
          as if
          it were a direct party to this Agreement.

         

        (w)  The
          Servicing Agreement is modified by adding a new Exhibit G, which shall
          include
          the information set forth on Attachment
          3
          hereto
          or in such other format mutually agreed upon by the Company and the Master
          Servicer.

         

        (x)  Section
          2.07(a) of the Regulation AB Addendum is modified by adding “(including, but not
          limited to, any Master Servicer)” after “each Person”.

         

        (y)  Exhibit
          B
          of the Regulation AB Addendum is modified by adding “X” next to the
          following:

         

        
          	
                  1122(d)(3)(ii)

                	
                  Amounts
                    due to investors are allocated and remitted in accordance with
                    timeframes,
                    distribution priority and other terms set forth in the transaction
                    agreements.

                	
                  X

                
	
                  1122(d)(3)(iii)

                	
                  Disbursements
                    made to an investor are posted within two business days to the
                    Servicer’s
                    investor records, or such other number of days specified in the
                    transaction agreements.

                	
                  X

                
	
                  1122(d)(3)(iv)

                	
                  Amounts
                    remitted to investors per the investor reports agree with cancelled
                    checks, or other form of payment, or custodial bank
                    statements.

                	
                  X

                
	
                  1122(d)(4)(i)

                	
                  Collateral
                    or security on mortgage loans is maintained as required by the
                    transaction
                    agreements or related mortgage loan documents.

                	
                  X

                
	
                  1122(d)(4)(ii)

                	
                  Mortgage
                    loan and related documents are safeguarded as required by the
                    transaction
                    agreements

                	
                  X

                
	
                  1122(d)(4)(iii)

                	
                  Any
                    additions, removals or substitutions to the asset pool are made,
                    reviewed
                    and approved in accordance with any conditions or requirements
                    in the
                    transaction agreements.

                	
                  X

                

        

        

         

        Miscellaneous

         

        10.  All
          demands, notices and communications related to the Assigned Loans, the
          Servicing
          Agreement and this AAR Agreement shall be in writing and shall be deemed
          to have
          been duly given if personally delivered at or mailed by registered mail,
          postage
          prepaid, as follows:

         

        (a)  In
          the
          case of Assignor,

         

        Nomura
          Credit & Capital, Inc.

        2
          World
          Financial Center, Building B, 18th
          Floor

        New
          York,
          New York 10281

        Attn:
          Legal Department

        

        (b)  In
          the
          case of Assignee,

         

        Nomura
          Asset Acceptance Corporation

        2
          World
          Financial Center

        Building
          B, 18th
          Floor

        New
          York,
          New York 10281

        Attention:
          Legal Department

         

        (c)  In
          the
          case of Master Servicer,

         

        Wells
          Fargo Bank, N.A.

        9062
          Old
          Annapolis Road

        Columbia,
          Maryland 21045

        Attention:
          Client Manager - NAAC 2006-AR3

        Telecopier:
          (410) 715-2380

         

        (d)  In
          the
          case of Servicer,

         

        Wachovia
          Mortgage Corporation

        401
          S.
          Tryon St., 22nd Floor

        Charlotte,
          NC 28202

        Attn:
          Kendal Leeson

        Ph:
          (704)
          383-9909

        Fax:
          (704) 383-8442

         

        11.  Each
          party will pay any commissions, fees and expenses, including attorney’s fees, it
          has incurred in connection with the negotiations for, documenting of and
          closing
          of the transactions contemplated by this AAR Agreement.

         

        12.  This
          AAR
          Agreement shall be construed in accordance with the laws of the State of
          New
          York, without regard to conflicts of law principles, and the obligations,
          rights
          and remedies of the parties hereunder shall be determined in accordance
          with
          such laws.

         

        13.  No
          term
          or provision of this AAR Agreement may be waived or modified unless such
          waiver
          or modification is in writing and signed by the party against whom such
          waiver
          or modification is sought to be enforced.

         

        14.  This
          AAR
          Agreement shall inure to the benefit of the successors and assigns of the
          parties hereto. Any entity into which Assignor, Assignee or Company may
          be
          merged or consolidated shall, without the requirement for any further writing,
          be deemed Assignor, Assignee or Company, respectively, hereunder.

         

        15.  This
          AAR
          Agreement shall survive the conveyance of the Assigned Loans, the assignment
          of
          the Servicing Agreement to the extent of the Assigned Loans by Assignor
          to
          Assignee and the termination of the Servicing Agreement.

         

        16.  This
          AAR
          Agreement may be executed simultaneously in any number of counterparts.
          Each
          counterpart shall be deemed to be an original and all such counterparts
          shall
          constitute one and the same instrument.

         

        17.  In
          the
          event that any provision of this AAR Agreement conflicts with any provision
          of
          the Servicing Agreement with respect to the Assigned Loans, the terms of
          this
          AAR Agreement shall control.

         

        18.  For
          purposes of this AAR Agreement, the Trustee and the Master Servicer shall
          be
          considered third party beneficiaries to this Agreement entitled to all
          the
          rights and benefits accruing to the Trustee and the Master Servicer, as
          applicable, herein as if it were a direct party to this AAR
          Agreement.

         

        

        IN
          WITNESS WHEREOF, the parties hereto have executed this AAR Agreement as
          of the
          day and year first above written.

         

        

        NOMURA
          CREDIT & CAPITAL, INC.

        Assignor

         

         

        
          	 	 	 	 
	By: 
                  /s/ Timothy P.F. Crowley	 	 	 
	
                  
                    

                  

                	 	 	
                
	
                  Name:
                    Timothy P.F. Crowley

                  Title:
                    Vice President

                	 	 	 

        

        

        

        

        NOMURA
          ASSET ACCEPTANCE CORPORATION

        Assignee

         

        
          	 	 	 	 
	By:
                   /s/ John P. Graham 	 	 	 
	
                  
                    

                  

                	 	 	
                
	
                  Name:
                    John P. Graham 

                  Title:
                    President

                	 	 	 

        

         

        WACHOVIA
          MORTGAGE CORPORATION

        Servicer

         

        	
              	 	 	 
	By:
                 /s/ Kendall A. Leeson	 	 	 
	
                
                  

                

              	 	 	
              
	
                Name:
                  Kendall A. Leeson

                Title:
                  Vice President

              	 	 	 

        
 

        ACKNOWLEDGED
          AND AGREED TO:

        HSBC
          BANK
          USA, NATIONAL ASSOCIATION

        Trustee
          for the holders of the Nomura Asset Acceptance Corporation, 

        Alternative
          Loan Trust, Series 2006-AR3 Mortgage Pass-Through Certificates

        

        
          	
                	 	 	 
	By:
                   /s/ Elena Zheng	 	 	 
	
                  
                    

                  

                	 	 	
                
	
                  Name:
                    Elena Zheng

                  Title:
                    Assistant Vice President

                	 	 	 

         

        ACKNOWLEDGED
          AND AGREED TO:

        WELLS
          FARGO BANK, N.A.

        Master
          Servicer

        

          	
                	 	 	 
	By:
                   /s/ Amy Doyle	 	 	 
	
                  
                    

                  

                	 	 	
                
	
                  Name:
                    Amy Doyle

                  Title:
                    Vice President

                	 	 	 

        

        

        
 

        ATTACHMENT
          1

        ASSIGNED
          LOAN SCHEDULE

        

        

        

        [To
          Be
          Provided Upon Request]

        

        

         

        ATTACHMENT
          2

         

        SELLER’S
          WARRANTIES AND SERVICING AGREEMENT

         

        

        
          

          
            	 
	
                    Execution
                      Version

                  

          

           

           

        

        NOMURA
          CREDIT & CAPITAL, INC.

        Purchaser,

         

        WACHOVIA
          MORTGAGE CORPORATION

        Seller

         

        SELLER’S
          PURCHASE, WARRANTIES AND SERVICING AGREEMENT

         

        Dated
          as
          of March 1, 2006

         

         

        TABLE
          OF CONTENTS

         

         

         

        ARTICLE
          I
          DEFINITIONS 

         

        Section
          1.01. Defined
          Terms. 

         

        ARTICLE
          II
          SERVICING OF MORTGAGE LOANS; RECORD TITLE AND POSSESSION OF MORTGAGE FILES;
          BOOKS AND RECORDS; CUSTODIAL AGREEMENT; DELIVERY OF MORTGAGE LOAN
          DOCUMENTS 

         

        Section
          2.01. Agreement
          to Purchase. 

         

        Section
          2.02. Purchase
          Price. 

         

        Section
          2.03. Servicing
          of Mortgage Loans. 

         

        Section
          2.04. Record
          Title and Possession of Mortgage Files; Maintenance of Servicing
          Files. 

         

        Section
          2.05. Books
          and
          Records. 

         

        Section
          2.06. Transfer
          of Mortgage Loans. 

         

        Section
          2.07. Delivery
          of Mortgage Loan Documents. 

         

        Section
          2.08. Quality
          Control Procedures. 

         

        Section
          2.09. Closing. 

         

        ARTICLE
          III
          REPRESENTATIONS AND WARRANTIES OF THE SELLER; REPURCHASE; REVIEW OF MORTGAGE
          LOANS 

         

        Section
          3.01. Representations
          and Warranties of the Seller. 

         

        Section
          3.02. Representations
          and Warranties as to Individual Mortgage Loans. 

         

        Section
          3.03. Repurchase;
          Substitution. 

         

        Section
          3.04. Purchase
          Price Protection. 

         

        ARTICLE
          IV
          ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS 

         

        Section
          4.01. The
          Seller to Act as Servicer. 

         

        Section
          4.02. Collection
          of Mortgage Loan Payments. 

         

        Section
          4.03. Realization
          Upon Defaulted Mortgage Loans. 

         

        Section
          4.04. Establishment
          of Custodial Accounts; Deposits in Custodial Accounts. 

         

        Section
          4.05. Permitted
          Withdrawals From the Custodial Account. 

         

        Section
          4.06. Establishment
          of Escrow Accounts; Deposits in Accounts. 

         

        Section
          4.07. Permitted
          Withdrawals From the Escrow Account. 

         

        Section
          4.08. Payment
          of Taxes, Insurance and Charges; Maintenance of Primary Mortgage Insurance;
          Collections Thereunder. 

         

        Section
          4.09. Transfer
          of Accounts. 

         

        Section
          4.10. Maintenance
          of Hazard Insurance. 

         

        Section
          4.11. Maintenance
          of Mortgage Impairment Insurance Policy. 

         

        Section
          4.12. Maintenance
          of Fidelity Bond and Errors and Omissions Insurance. 

         

        Section
          4.13. Title,
          Management and Disposition of REO Property. 

         

        Section
          4.14. Notification
          of Maturity Date. 

         

        ARTICLE
          V
          PAYMENTS
          TO THE PURCHASER 

         

        Section
          5.01. Distributions. 

         

        Section
          5.02. Statements
          to the Purchaser. 

         

        Section
          5.03. Monthly
          Advances by the Seller. 

         

        Section
          5.04. Liquidation
          Reports. 

         

        ARTICLE
          VI
          GENERAL
          SERVICING PROCEDURES 

         

        Section
          6.01. Assumption
          Agreements. 

         

        Section
          6.02. Satisfaction
          of Mortgages and Release of Mortgage Files. 

         

        Section
          6.03. Servicing
          Compensation. 

         

        Section
          6.04. [Annual
          Statement as to Compliance. 

         

        Section
          6.05. [Annual
          Independent Certified Public Accountants’ Servicing Report. 

         

        Section
          6.06. Purchaser’s
          Right to Examine Seller Records. 

         

        Section
          6.07. Seller
          Shall Provide Information as Reasonably Required. 

         

        ARTICLE
          VII
          THE
          SELLER 

         

        Section
          7.01. Indemnification;
          Third Party Claims. 

         

        Section
          7.02. Merger
          or
          Consolidation of the Seller. 

         

        Section
          7.03. Limitation
          on Liability of the Seller and Others. 

         

        Section
          7.04. Seller
          Not to Resign. 

         

        Section
          7.05. No
          Transfer of Servicing. 

         

        ARTICLE
          VIII
          DEFAULT 

         

        Section
          8.01. Events
          of
          Default. 

         

        Section
          8.02. Waiver
          of
          Defaults. 

         

        ARTICLE
          IX
          TERMINATION 

         

        Section
          9.01. Termination. 

         

        ARTICLE
          X
          RECONSTITUTION OF MORTGAGE LOANS 

         

        Section
          10.01. Reconstitution
          of Mortgage Loans. 

         

        ARTICLE
          XI
          MISCELLANEOUS PROVISIONS 

         

        Section
          11.01. Successor
          to the Seller. 

         

        Section
          11.02. Amendment. 

         

        Section
          11.03. Recordation
          of Agreement. 

         

        Section
          11.04. Governing
          Law. 

         

        Section
          11.05. Notices. 

         

        Section
          11.06. Severability
          of Provisions. 

         

        Section
          11.07. Exhibits. 

         

        Section
          11.08. General
          Interpretive Principles. 

         

        Section
          11.09. Reproduction
          of Documents. 

         

        Section
          11.10. Confidentiality
          of Information. 

         

        Section
          11.11. Recordation
          of Assignments of Mortgage. 

         

        Section
          11.12. Assignment
          by Purchaser. 

         

        Section
          11.13. No
          Partnership. 

         

        Section
          11.14. Execution;
          Successors and Assigns. 

         

        Section
          11.15. Entire
          Agreement. 

         

        Section
          11.16. No
          Solicitation. 

         

        Section
          11.17. Costs. 

         

        Section
          11.18. Protection
          of Mortgagor Personal Information. 

        

        EXHIBITS

        
          	
                	A-1	
                  Contents
                    of Mortgage File

                

        

        
          	
                	A-2	
                  Contents
                    of Servicing File

                

        

        
          	
                	B	
                  Form
                    of Custodial Account Letter
                    Agreement

                

        

        
          	
                	C	
                  Form
                    of Escrow Account Letter Agreement

                

        

        
          	
                	D	
                  Form
                    of Assignment, Assumption and Recognition
                    Agreement

                

        

        
          	
                	E	
                  Form
                    of Assignment and Conveyance

                

        

        
          	
                	F	
                  Request
                    for Release of Documents and
                    Receipt

                

        

        
          	
                	Addendum
                  I	
                  Regulation
                    AB Compliance Addendum

                

        This
          is a
          Seller’s Purchase, Warranties and Servicing Agreement, dated as of March 1, 2006
          and is executed by and between Nomura Credit & Capital, Inc., as purchaser
          (the “Purchaser”), and Wachovia Mortgage Corporation, as seller and servicer (in
          such capacity, the “Seller”).

         

        WITNESSETH:

         

        WHEREAS,
          the Purchaser has heretofore agreed to purchase from the Seller and the
          Seller
          has heretofore agreed to sell to the Purchaser certain Mortgage Loans,
          servicing
          rights retained, from time to time, pursuant to the terms of a letter agreement
          by and between the Seller and the Purchaser (the “Purchase
          Price and Terms Letter”);

         

        WHEREAS,
          each of the Mortgage Loans is secured by a mortgage, deed of trust or other
          security instrument creating a first or second lien on a residential dwelling
          located in the jurisdiction indicated on the related Mortgage Loan Schedule,
          which is annexed to the related Assignment and Conveyance. The Mortgage
          Loans as
          described herein shall be delivered in groups of whole loans (each, a
“Mortgage
          Loan Package”)
          on
          various dates as provided herein (each, a “Closing
          Date”);
          and

         

        WHEREAS,
          the Purchaser and the Seller wish to prescribe the representations and
          warranties of the Seller with respect to itself, the Mortgage Loans and
          the
          management, servicing and control of the Mortgage Loans by the
          Seller.

         

        NOW,
          THEREFORE, in consideration of the mutual agreements hereinafter set forth,
          and
          for other good and valuable consideration, the receipt and adequacy of
          which is
          hereby acknowledged, the Purchaser and the Seller agree as follows:

         

        

        ARTICLE
          II

        DEFINITIONS

         

        SECTION
          2.01  Defined
          Terms.

         

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

         

        Accepted
          Servicing Practices:
          With
          respect to any Mortgage Loan, those mortgage servicing practices (including
          collection procedures) of prudent mortgage banking institutions which service
          mortgage loans of the same type as such Mortgage Loan in the jurisdiction
          where
          the related Mortgaged Property is located, and which are in accordance
          with
          Fannie Mae servicing practices and procedures, for MBS pool mortgages,
          as
          defined in the Fannie Mae Guides, including future updates.

         

        Adjustable
          Rate Mortgage Loan:
          A
          Mortgage Loan as to which the related Mortgage Note provides that the Mortgage
          Interest Rate may be adjusted periodically.

         

        Adjustment
          Date:
          With
          respect to each Adjustable Rate Mortgage Loan, the date set forth in the
          related
          Mortgage Note on which the Mortgage Interest Rate on the Mortgage Loan
          is
          adjusted in accordance with the terms of the Mortgage Note.

         

        Agency
          Transfer:
          The
          sale or transfer by the Purchaser of some or all of the Mortgage Loans
          to Fannie
          Mae or Freddie Mac.

         

        Agreement:
          This
          Seller’s Purchase, Warranties and Servicing Agreement including all exhibits
          hereto, amendments hereof and supplements hereto.

         

        Appraised
          Value:
          With
          respect to any Mortgaged Property, the lesser of (i) the value thereof
          as
          determined by an appraisal made for the originator of the Mortgage Loan
          at the
          time of origination of the Mortgage Loan by an appraiser who met the
          underwriting requirements of the originator, and (ii) the purchase price
          paid
          for the related Mortgaged Property by the Mortgagor with the proceeds of
          the
          Mortgage Loan, provided,
          however,
          in the
          case of a Refinanced Mortgage Loan, such value of the Mortgaged Property
          is
          based solely upon the value determined by an appraisal made for the originator
          of such Refinanced Mortgage Loan at the time of origination of such Refinanced
          Mortgage Loan by an appraiser who met the underwriting requirements of
          the
          originator.

         

        Assignment
          and Conveyance:
          As
          defined in Section 2.03.

         

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

         

        BIF:
          The
          Bank Insurance Fund, or any successor thereto.

         

        Business
          Day:
          Any day
          other than (i) a Saturday or a Sunday, or (ii) a legal holiday in the States
          of
          New York or North Carolina, or (iii) a day on which banks in the States
          of New
          York or North Carolina are authorized or obligated by law or executive
          order to
          be closed.

         

        Cash-Out
          Refinancing:
          A
          Refinanced Mortgage Loan the proceeds of which were in excess of the principal
          balance of any existing first mortgage loan on the related Mortgaged Property
          and related closing costs, and were used to pay any such existing first
          mortgage, related closing costs and subordinate mortgage loans on the related
          Mortgaged Property.

         

        Closing
          Date:
          The
          date or dates set forth in the related Purchase Price and Terms Letter
          on which
          the Purchaser from time to time shall purchase and the Seller from time
          to time
          shall sell to the Purchaser, the Mortgage Loans listed on the related Mortgage
          Loan Schedule with respect to the related Mortgage Loan Package.

         

        Code:
          The
          Internal Revenue Code of 1986, as the same may be amended from time to
          time (or
          any successor statute thereto).

         

        Compensating
          Interest:
          For any
          Remittance Date, the lesser of (i) the aggregate Servicing Fee payable
          to the
          Seller for such Remittance Date and (ii) the aggregate Prepayment Interest
          Shortfall for such Remittance Date.

         

        Condemnation
          Proceeds:
          All
          awards, compensation and settlements in respect of a Mortgaged Property,
          whether
          permanent or temporary, partial or entire, by exercise of the power of
          eminent
          domain or condemnation, to the extent not required to be released to a
          Mortgagor
          in accordance with the terms of the related Mortgage Loan
          Documents.

         

        Convertible
          Mortgage Loan:
          Any
          Adjustable Rate Mortgage Loan purchased pursuant to this Agreement as to
          which
          the related Mortgage Note permits the Mortgagor to convert the Mortgage
          Interest
          Rate on such Mortgage Loan to a fixed Mortgage Interest Rate.

         

        Co-op
          Lease:
          With
          respect to a Co-op Loan, the lease with respect to a dwelling unit occupied
          by
          the Mortgagor and relating to the stock allocated to the related dwelling
          unit.

         

        Co-op
          Loan:
          A
          Mortgage Loan secured by the pledge of stock allocated to a dwelling unit
          in a
          residential cooperative housing corporation and a collateral assignment
          of the
          related Co-op Lease.

         

        Co-op
          Stock:
          With
          respect to a Co-op Loan, the single outstanding class of stock, partnership
          interest or other ownership instrument in the related residential cooperative
          housing corporation.

         

        Credit
          Score:
          The
          credit score for each Mortgage Loan shall be the minimum of two credit
          bureau
          scores obtained at origination or such other time by the Seller. If two
          credit
          bureau scores are obtained, the Credit Score will be the lower score. If
          three
          credit bureau scores are obtained, the Credit Score will be the middle
          of the
          three. When there is more than one applicant, the lowest of the applicants’
Credit Scores will be used. There is only one (1) score for any loan regardless
          of the number of borrowers and/or applicants.

         

        Custodial
          Account:
          Each
          separate demand account or accounts created and maintained pursuant to
          Section
          4.04 which shall be entitled “Wachovia Mortgage Corporation, in trust for the
          Purchaser, owner of various whole loan series” and shall be established as an
          Eligible Account, in the name of the Person that is the “Purchaser” with respect
          to the related Mortgage Loans.

         

        Cut-off
          Date:
          With
          respect to each Mortgage Loan Package, the first Business Day of the month
          of
          the related Closing Date, or as otherwise set forth in the related Purchase
          Price and Terms Letter.

         

        Determination
          Date:
          With
          respect to each Remittance Date, the 15th day (or if such 15th day is not
          a
          Business Day, the Business Day immediately preceding such 15th day) of
          the month
          in which such Remittance Date occurs.

         

        Due
          Date:
          With
          respect to any Mortgage Loan, the day of the month on which the Monthly
          Payment
          is due on such Mortgage Loan, exclusive of any days of grace.

         

        Due
          Period:
          With
          respect to each Remittance Date, the period commencing on the second day
          of the
          month preceding the month of such Remittance Date and ending on the first
          day of
          the month of the Remittance Date.

         

        Eligible
          Account:
          An
          account established and maintained: (a) within FDIC insured accounts (or
          other
          accounts with comparable insurance coverage acceptable to the Rating Agencies)
          created, maintained and monitored by the Seller so that all funds deposited
          therein are fully insured, (b) with the corporate trust department of a
          financial institution assigned a long-term debt rating of not less than
“Baa3,”
and a short term debt rating of “P3,” from Moody’s Investors Services, Inc. and,
          if ownership of the Mortgage Loans is evidenced by mortgaged backed securities,
          the equivalent ratings of the rating agencies, and held such that the rights
          of
          the Purchaser and the owner of the Mortgage Loans shall be fully protected
          against the claims of any creditors of the Seller and of any creditors
          or
          depositors of the institution in which such account is maintained or (c)
          in a
          separate non-trust account without FDIC or other insurance in an Eligible
          Institution. In the event that a Custodial Account is established pursuant
          to
          clause (b) or (c) of the preceding sentence, the Seller shall provide the
          Purchaser with written notice on the Business Day following the date on
          which
          the applicable institution fails to meet the applicable ratings
          requirements.

         

        Eligible
          Institution:
          An
          institution having (i) the highest short-term debt rating, and one of the
          two
          highest long-term debt ratings of the Rating Agency; or (ii) with respect
          to any
          Custodial Account, an unsecured long-term debt rating of at least one of
          the two
          highest unsecured long-term debt ratings of the Rating Agencies.

         

        Eligible
          Investments:
          Any one
          or more of the following obligations or securities:

         

        (a) direct
          obligations of, and obligations fully guaranteed by the United States of
          America
          or any agency or instrumentality of the United States of America the obligations
          of which are backed by the full faith and credit of the United States of
          America;

         

        (b) (i)
          demand or time deposits, federal funds or bankers’ acceptances issued by any
          depository institution or trust company incorporated under the laws of
          the
          United States of America or any state thereof and subject to supervision
          and
          examination by federal and/or state banking authorities, provided that
          the
          commercial paper and/or the short-term deposit rating and/or the long-term
          unsecured debt obligations or deposits of such depository institution or
          trust
          company at the time of such investment or contractual commitment providing
          for
          such investment are rated in one of the two highest rating categories by
          each
          Rating Agency and (ii) any other demand or time deposit or certificate
          of
          deposit that is fully insured by the FDIC;

         

        (c) repurchase
          obligations with a term not to exceed thirty (30) days and with respect
          to (i)
          any security described in clause (a) above and entered into with a depository
          institution or trust company (acting as principal) described in clause
          (b)(ii)
          above;

         

        (d) securities
          bearing interest or sold at a discount issued by any corporation incorporated
          under the laws of the United States of America or any state thereof that
          are
          rated in one of the two highest rating categories by each Rating Agency
          at the
          time of such investment or contractual commitment providing for such investment;
          provided,
          however,
          that
          securities issued by any particular corporation will not be Eligible Investments
          to the extent that investments therein will cause the then outstanding
          principal
          amount of securities issued by such corporation and held as Eligible Investments
          to exceed 10% of the aggregate outstanding principal balances of all of
          the
          Mortgage Loans and Eligible Investments;

         

        (e) commercial
          paper (including both non-interest-bearing discount obligations and
          interest-bearing obligations payable on demand or on a specified date not
          more
          than one year after the date of issuance thereof) which are rated in one
          of the
          two highest rating categories by each Rating Agency at the time of such
          investment;

         

        (f) any
          other
          demand, money market or time deposit, obligation, security or investment
          as may
          be acceptable to each Rating Agency as evidenced in writing by each Rating
          Agency; and

         

        (g) any
          money
          market funds the collateral of which consists of obligations fully guaranteed
          by
          the United States of America or any agency or instrumentality of the United
          States of America the obligations of which are backed by the full faith
          and
          credit of the United States of America (which may include repurchase obligations
          secured by collateral described in clause (a)) and other securities and
          which
          money market funds are rated in one of the two highest rating categories
          by each
          Rating Agency.

         

        provided,
          however,
          that no
          instrument or security shall be an Eligible Investment if such instrument
          or
          security evidences a right to receive only interest payments with respect
          to the
          obligations underlying such instrument or if such security provides for
          payment
          of both principal and interest with a yield to maturity in excess of 120%
          of the
          yield to maturity at par or if such investment or security is purchased
          at a
          price greater than par.

         

        Equity:
          With
          respect to any second lien Mortgage Loan, the Appraised Value, less the
          unpaid
          principal balance of the related First Lien.

         

        Equity
          Loan-to-Value:
          With
          respect to any second lien Mortgage Loan, the original principal balance
          of such
          Mortgage Loan, divided by the Equity.

         

        Escrow
          Account:
          Each
          separate trust account or accounts created and maintained pursuant to Section
          4.06 which shall be entitled “Wachovia Mortgage Corporation, in trust for the
          Purchaser, owner of various whole loan series and various Mortgagors” and shall
          be established as an Eligible Account, in the name of the Person that is
          the
“Purchaser” with respect to the related Mortgage Loans.

         

        Escrow
          Payments:
          With
          respect to any Mortgage Loan, the amounts constituting ground rents, taxes,
          assessments, water rates, sewer rents, municipal charges, mortgage insurance
          premiums, fire and hazard insurance premiums, condominium charges, and
          any other
          payments required to be escrowed by the Mortgagor with the mortgagee pursuant
          to
          the Mortgage, applicable law or any other related document.

         

        Event
          of Default:
          Any one
          of the conditions or circumstances enumerated in Section 8.01.

         

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

         

        Fannie
          Mae Guides:
          The
          Fannie Mae Sellers’ Guide and the Fannie Mae Servicers’ Guide and all amendments
          or additions thereto, including, but not limited to, future updates
          thereof.

         

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

         

        Fidelity
          Bond:
          A
          fidelity bond to be maintained by the Seller pursuant to Section
          4.12.

         

        FIRREA:
          The
          Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as
          amended
          and in effect from time to time.

         

        First
          Lien:
          With
          respect to any second lien Mortgage Loan, the mortgage loan relating to
          the
          corresponding Mortgaged Property having a first priority lien.

         

        First
          Remittance Date:
          The
          eighteenth (18th) day of the month following each respective Closing Date,
          or if
          such day is not a Business Day, the first Business Day immediately
          thereafter.

         

        Fixed
          Rate Mortgage Loan:
          A
          Mortgage Loan purchased pursuant to this Agreement which bears a fixed
          Mortgage
          Interest Rate during the life of the loan.

         

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

         

        Freddie
          Mac Guides:
          The
          Freddie Mac Sellers’ Guide and the Freddie Mac Servicers’ Guide and all
          amendments or additions thereto, including, but not limited to, any future
          updates thereof.

         

        GAAP:
          Generally accepted accounting principles, consistently applied.

         

        Gross
          Margin:
          With
          respect to any Adjustable Rate Mortgage Loan, the fixed percentage amount
          set
          forth in the related Mortgage Note and the related Mortgage Loan Schedule
          that
          is added to the Index on each Adjustment Date in accordance with the terms
          of
          the related Mortgage Note to determine the new Mortgage Interest Rate for
          such
          Mortgage Loan.

         

        HUD:
          The
          United States Department of Housing and Urban Development or any successor
          thereto.

         

        Index:
          With
          respect to any Adjustable Rate Mortgage Loan, the index identified on the
          Mortgage Loan Schedule and set forth in the related Mortgage Note for the
          purpose of calculating the Mortgage Interest Rate thereon.

         

        Insurance
          Proceeds:
          With
          respect to each Mortgage Loan, proceeds of insurance policies insuring
          the
          Mortgage Loan or the related Mortgaged Property.

         

        Interest
          Only Mortgage Loan:
          A
          Mortgage Loan that only requires payments of interest for a period of time
          specified in the related Mortgage Note.

         

        Liquidation
          Proceeds:
          Amounts
          received in connection with the partial or complete liquidation of a defaulted
          Mortgage Loan, whether through the sale or assignment of such Mortgage
          Loan,
          trustee’s sale, foreclosure sale or otherwise, or in connection with the sale of
          the Mortgaged Property if the Mortgaged Property is acquired in satisfaction
          of
          the Mortgage.

         

        Loan-to-Value
          Ratio
          or
LTV:
          With
          respect to any Mortgage Loan, the ratio of the original outstanding principal
          amount of the Mortgage Loan and, with respect to any second lien Mortgage
          Loan,
          the outstanding principal amount of any related First Lien as of the date
          of
          origination of such mortgage loan, to the Appraised Value of the related
          Mortgaged Property.

         

        Maximum
          Mortgage Interest Rate:
          With
          respect to each Adjustable Rate Mortgage Loan, a rate that is set forth
          on the
          related Mortgage Loan Schedule and in the related Mortgage Note and is
          the
          maximum interest rate to which the Mortgage Interest Rate on such Mortgage
          Loan
          may be increased on any Adjustment 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
          Mortgage Loan:
          Any
          Mortgage Loan registered with MERS on the MERS System.

         

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

         

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

         

        Minimum
          Mortgage Interest Rate:
          With
          respect to each Adjustable Rate Mortgage Loan, a rate that is set forth
          on the
          related Mortgage Loan Schedule and in the related Mortgage Note and is
          the
          minimum interest rate to which the Mortgage Interest Rate on such Mortgage
          Loan
          may be decreased on any Adjustment Date.

         

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

         

        Monthly
          Advance:
          The
          payment required to be made by the Seller with respect to any Remittance
          Date
          pursuant to Section 5.03.

         

        Monthly
          Payment:
          The
          scheduled monthly payment on a Mortgage Loan due on any Due Date allocable
          to
          principal and/or interest on such Mortgage Loan pursuant to the terms of
          the
          related Mortgage Note.

         

        Mortgage:
          With
          respect to any Mortgage Loan that is not a Co-op Loan, the mortgage, deed
          of
          trust or other instrument securing a Mortgage Note which creates a first
          or
          second lien on an unsubordinated estate in fee simple in real property
          securing
          the Mortgage Note; except that with respect to real property located in
          jurisdictions in which the use of leasehold estates for residential properties
          is a widely-accepted practice, the mortgage, deed of trust or other instrument
          securing the Mortgage Note may secure and create a first or second lien
          upon a
          leasehold estate of the Mortgagor. With respect to a Co-op Loan, the related
          Security Agreement.

         

        Mortgage
          File:
          With
          respect to each Mortgage Loan, the documents pertaining thereto specified
          in
Exhibit
          A-1
          and any
          additional documents required to be added to the Mortgage File pursuant
          to this
          Agreement.

         

        Mortgage
          Interest Rate:
          As to
          each Mortgage Loan, the annual rate at which interest accrues on such Mortgage
          Loan in accordance with the provisions of the related Mortgage
          Note.

         

        Mortgage
          Loan:
          An
          individual Mortgage Loan which is the subject of this Agreement, each Mortgage
          Loan originally sold and subject to this Agreement being identified on
          the
          related Mortgage Loan Schedule, which Mortgage Loan includes without limitation
          the Mortgage File, the Monthly Payments, Principal Prepayments, Liquidation
          Proceeds, Condemnation Proceeds, Insurance Proceeds, REO Disposition Proceeds,
          any escrow accounts related to the Mortgage Loan, and all other rights,
          benefits, proceeds and obligations arising from or in connection with such
          Mortgage Loan, excluding replaced or repurchased mortgage loans.

         

        Mortgage
          Loan Documents:
          The
          documents contained in a Mortgage File.

         

        Mortgage
          Loan Package:
          As
          defined in the Recitals to this Agreement.

         

        Mortgage
          Loan Remittance Rate:
          With
          respect to each Mortgage Loan, the Mortgage Interest Rate less the related
          Servicing Fee Rate.

         

        Mortgage
          Loan Schedule:
          The
          schedule of Mortgage Loans annexed to the related Assignment and Conveyance,
          each such schedule setting forth the following information with respect
          to each
          Mortgage Loan in the related Mortgage Loan Package:

         

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

         

        (2) the
          Mortgagor’s name;

         

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

         

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

         

        (5) the
          type
          of residential property constituting the Mortgaged Property;

         

        (6) the
          original months to maturity or the remaining months to maturity from the
          related
          Cut-off Date, in any case based on the original amortization schedule and,
          if
          different, the maturity expressed in the same manner but based on the actual
          amortization schedule;

         

        (7) the
          Loan-to-Value Ratio at origination and as of the related Cut-off
          Date;

         

        (8) with
          respect to any second lien Mortgage Loan, the Equity Loan-to-Value Ratio
          at
          origination and as of the related Cut-off Date;

         

        (9) the
          Mortgage Interest Rate at origination and as of the related Cut-off
          Date;

         

        (10) the
          Mortgage Loan origination date;

         

        (11) the
          paid
          through date;

         

        (12) the
          stated maturity date of the Mortgage Loan and of the First Lien, if
          applicable;

         

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

         

        (14) the
          original principal amount of the Mortgage Loan and the principal balance
          of the
          related First Lien, if applicable, as of the date of origination;

         

        (15) the
          Scheduled Principal Balance of the Mortgage Loan and the principal balance
          of
          the related First Lien, if applicable, as of the related Cut-off
          Date;

         

        (16) a
          code
          indicating the purpose of the Mortgage Loan (i.e., purchase, rate and term
          refinance, equity take-out refinance);

         

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

         

        (18) the
          number of times during the twelve (12) month period preceding the related
          Closing Date that any Monthly Payment has been received thirty (30) or
          more days
          after its Due Date;

         

        (19) the
          date
          on which the first Monthly Payment is due and the applicable next Due
          Date;

         

        (20) a
          code
          indicating whether or not the Mortgage Loan is insured as to payment defaults
          by
          a Primary Mortgage Insurance Policy; and, in the case of any Mortgage Loan
          which
          is insured as to payment defaults by a Primary Mortgage Insurance Policy,
          the
          name of the provider of such Primary Mortgage Insurance Policy;

         

        (21) a
          code
          indicating whether or not the Mortgage Loan is the subject of a prepayment
          penalty, and if so, the terms of such prepayment penalty;

         

        (22) the
          Primary Mortgage Insurance Policy certificate number, if
          applicable;

         

        (23) the
          Primary Mortgage Insurance Policy coverage percentage, if
          applicable;

         

        (24) a
          code
          indicating the Credit Score of the Mortgagor at the time of origination
          of the
          Mortgage Loan;

         

        (25) a
          code
          indicating the specific loan/underwriting program of each Mortgage Loan
          as
          assigned by the Seller pursuant to the Underwriting Standards;

         

        (26) the
          loan
          type (i.e. fixed, adjustable; 2/28, 3/27, 5/25, etc.);

         

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

         

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

         

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

         

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

         

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

         

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

         

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

         

        (34) a
          code
          indicating whether the Mortgage Loan is a first or second lien Mortgage
          Loan;

         

        (35) a
          code
          indicating whether the Mortgage Loan is a MERS Mortgage Loan;

         

        (36) the
          MERS
          identification number;

         

        (37) a
          code
          indicating whether the Mortgage Loan is an Interest Only Mortgage Loan
          and the
          term of the interest-only period;

         

        (38) the
          Appraised Value of the Mortgaged Property;

         

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

         

        (40) a
          code
          indicating the form of appraisal (i.e. form 1004, 2055, etc.);

         

        (41) the
          rate
          change cap at the first interest rate adjustment date; and

         

        (42) the
          maximum rate change cap.

         

        With
          respect to the Mortgage Loans in the aggregate in each Mortgage Loan Package,
          the Mortgage Loan Schedule shall set forth the following information, as
          of the
          related Cut-off Date unless otherwise specified:

         

        (1) the
          number of Mortgage Loans;

         

        (2) the
          current aggregate outstanding principal balance of the Mortgage
          Loans;

         

        (3) the
          weighted average Mortgage Interest Rate of the Mortgage Loans;

         

        (4) the
          weighted average original months to maturity of the Mortgage Loans and
          the
          weighted average remaining months to maturity of the Mortgage
          Loans.

         

        Mortgage
          Note:
          The
          note or other evidence of the indebtedness of a Mortgagor secured by a
          Mortgage.

         

        Mortgaged
          Property:
          With
          respect to any Mortgage Loan, the underlying real property securing repayment
          of
          the related Mortgage Note, consisting of a fee simple parcel of real estate
          or a
          leasehold estate, the term of which is equal to or longer than the term
          of such
          Mortgage Note.

         

        Mortgagor:
          The
          obligor on a Mortgage Note.

         

        Mortgagor
          Personal Information:
          Any
          information, including, but not limited to, all personal information about
          a
          Mortgagor that is disclosed to the Seller or the Purchaser by or on behalf
          of
          the Mortgagor.

         

        OCC:
          Office
          of the Comptroller of the Currency, its successors and assigns.

         

        Officers’
          Certificate:
          A
          certificate signed by the Chairman of the Board, the Vice Chairman of the
          Board,
          the President, a Senior Vice President or a Vice President and by the Treasurer
          or the Secretary or one of the Assistant Treasurers or Assistant Secretaries
          of
          the Seller, and delivered to the Purchaser as required by this
          Agreement.

         

        Opinion
          of Counsel:
          A
          written opinion of counsel, who may be an employee of the party on behalf
          of
          whom the opinion is being given, reasonably acceptable to the
          Purchaser.

         

        OTS:
          Office
          of Thrift Supervision or any successor thereto.

         

        Pass-Through
          Transfer:
          As
          defined in Section 11.01(a)(ii).

         

        Periodic
          Rate Cap:
          With
          respect to each Adjustable Rate Mortgage Loan and any Adjustment Date therefor,
          a number of percentage points per annum that is set forth in the related
          Mortgage Loan Schedule and in the related Mortgage Note, which is the maximum
          amount by which the Mortgage Interest Rate for such Mortgage Loan may increase
          (without regard to the Maximum Mortgage Interest Rate) or decrease (without
          regard to the Minimum Mortgage Interest Rate) on such Adjustment Date from
          the
          Mortgage Interest Rate in effect immediately prior to such Adjustment Date,
          which may be a different amount with respect to the first Adjustment
          Date.

         

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

         

        Prepayment
          Interest Shortfall:
          As to
          any Remittance Date and Principal Prepayment in full, the difference between
          (i)
          one full month’s interest at the applicable Mortgage Interest Rate (after giving
          effect to any applicable relief act reduction, debt service reduction and
          deficient valuation), as reduced by the Servicing Fee Rate, on the outstanding
          principal balance of the related Mortgage Loan immediately prior to such
          Principal Prepayment and (ii) the amount of interest actually received
          with
          respect to such Mortgage Loan in connection with such Principal
          Prepayment.

         

        Primary
          Mortgage Insurance Policy:
          Each
          policy of primary mortgage insurance represented to be in effect pursuant
          to
          Section 3.02(bb), or any replacement policy therefor obtained by the Seller
          pursuant to Section 4.08.

         

        Prime
          Rate:
          The
          prime rate announced to be in effect from time to time as published as
          the
          average rate in The
          Wall Street Journal
          (Northeast Edition).

         

        Principal
          Prepayment:
          Any
          full or partial payment or other recovery of principal on a Mortgage Loan
          which
          is received in advance of its scheduled Due Date, including any prepayment
          penalty or premium thereon and which is not accompanied by an amount of
          interest
          representing scheduled interest due on any date or dates in any month or
          months
          subsequent to the month of prepayment.

         

        Purchase
          Price:
          As
          defined in Section 2.02.

         

        Purchase
          Price and Terms Letter:
          As
          defined in the Recitals to this Agreement which may also be a form of trade
          execution notice.

         

        Purchaser:
          Nomura
          Credit & Capital, Inc., its successors in interest and assigns.

         

        Qualified
          Appraiser:
          With
          respect to each Mortgage Loan, an appraiser, duly appointed by the Seller,
          who
          had no interest, direct or indirect in the Mortgaged Property or in any
          loan
          made on the security thereof, and whose compensation is not affected by
          the
          approval or disapproval of the Mortgage Loan, and such appraiser and the
          appraisal made by such appraiser both satisfy the requirements of Fannie
          Mae and
          Title XI of FIRREA and the regulations promulgated thereunder, all as in
          effect
          on the date the Mortgage Loan was originated.

         

        Qualified
          Insurer:
          An
          insurance company duly qualified as such under the laws of the states in
          which
          the Mortgaged Properties are located, duly authorized and licensed in such
          states to transact the applicable insurance business and to write the insurance
          provided by the insurance policy issued by it, approved as an insurer by
          Fannie
          Mae or Freddie Mac.

         

        Rating
          Agencies:
          Standard & Poor’s Ratings Services, a division of The McGraw- Hill
          Companies, Inc., Moody’s Investors Service, Inc. or, in the event that some or
          all ownership of the Mortgage Loans is evidenced by mortgage-backed securities,
          the nationally recognized rating agencies issuing ratings with respect
          to such
          securities, if any.

         

        Refinanced
          Mortgage Loan:
          A
          Mortgage Loan which was made to a Mortgagor who owned the Mortgaged Property
          prior to the origination of such Mortgage Loan and the proceeds of which
          were
          used in whole or part to satisfy an existing mortgage.

         

        Regulation
          AB Compliance Addendum:
          Addendum
          I
          attached
          hereto and incorporated herein by reference thereto.

         

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

         

        Remittance
          Date:
          The
          18th day of each month, beginning with the First Remittance Date, or if
          such day
          is not a Business Day, the first Business Day thereafter.

         

        REO
          Disposition:
          The
          final sale by the Seller of any REO Property.

         

        REO
          Disposition Proceeds:
          Amounts
          received by the Seller in connection with an REO Disposition.

         

        REO
          Property:
          A
          Mortgaged Property acquired by or on behalf of the Purchaser in full or
          partial
          satisfaction of the related Mortgage as described in Section 4.13.

         

        Repurchase
          Price:
          With
          respect to any Mortgage Loan, a price equal to (i) the outstanding principal
          balance of the Mortgage Loan, plus
          (ii)
          interest on such outstanding principal balance at the related Mortgage
          Loan
          Remittance Rate from the date through which interest was last distributed
          to the
          Purchaser (from payments from the related Mortgagor or from Monthly Advances)
          through the day prior to the date of repurchase, less
          (iii)
          amounts received or advanced in respect of such repurchased Mortgage Loan
          which
          are being held in the Custodial Account for distribution in connection
          with such
          Mortgage Loan, plus
          (iv) all
          costs and expenses incurred in connection with violation of the Mortgage
          Loan of
          any predatory or abusive lending law.

         

        SAIF:
          The
          Savings Association Insurance Fund, or any successor thereto.

         

        Security
          Agreement:
          With
          respect to a Co-op Loan, the agreement or mortgage creating a security
          interest
          in favor of the originator of the Co-op Loan in the related Co-op
          Stock.

         

        Scheduled
          Principal Balance:
          As to
          each Mortgage Loan and any date of determination, (i) the principal balance
          of
          such Mortgage Loan as of the related Cut-off Date after giving effect to
          payments of principal due on or before such date, whether or not received,
          minus
          (ii) all amounts previously distributed to the Purchaser with respect to
          the
          Mortgage Loan representing payments or recoveries of principal (or advances
          in
          lieu thereof).

         

        Servicing
          Advances:
          All
          customary, reasonable and necessary “out of pocket” costs and expenses
          (including reasonable attorneys’ fees and disbursements) incurred in the
          performance by the Seller of its servicing obligations, including, but
          not
          limited to, the cost of (a) the preservation, restoration and protection
          of a
          Mortgaged Property, (b) any enforcement, administrative or judicial proceedings,
          or any legal work or advice specifically related to servicing the Mortgage
          Loans, including but not limited to, foreclosures, bankruptcies, condemnations,
          drug seizures, elections, foreclosures by subordinate or superior lienholders,
          and other legal actions incidental to the servicing of the Mortgage Loans
          (provided that such expenses are reasonable and that the Seller specifies
          the
          Mortgage Loan(s) to which such expenses relate, and provided further that
          any
          such enforcement, administrative or judicial proceeding does not arise
          out of a
          breach of any representation, warranty or covenant of the Seller hereunder),
          (c)
          the management and liquidation of any REO Property, (d) taxes, assessments,
          water rates, sewer rates and other charges which are or may become a lien
          upon
          the Mortgaged Property, and Primary Mortgage Insurance Policy premiums
          and fire
          and hazard insurance coverage, (e) any expenses reasonably sustained by
          the
          Seller with respect to the liquidation of the Mortgaged Property in accordance
          with the terms of this Agreement and (f) compliance with the obligations
          under
          Section 4.08.

         

        Servicing
          Fee:
          As to
          each Mortgage Loan Package, the amount of the fee the Purchaser shall pay
          to the
          Seller for servicing the Mortgage Loans in accordance with the terms of
          this
          Agreement, which shall, with respect to each Mortgage Loan, for a period
          of one
          full month, be equal to one-twelfth of the product of (i) the Servicing
          Fee Rate
          and (ii) the Scheduled Principal Balance of such Mortgage Loan as of the
          first
          day of the month for which such fee is being calculated, which fee shall
          be
          pro-rated for any partial month.

         

        Servicing
          Fee Rate:
          The per
          annum rate at which the Servicing Fee accrues, which rate with respect
          to each
          Mortgage Loan shall be as set forth in the related Purchase Price and Terms
          Letter.

         

        Servicing
          File:
          With
          respect to each Mortgage Loan, the documents pertaining thereto specified
          in
Exhibit
          A-2
          and
          copies of all documents for such Mortgage Loan specified in Exhibit
          A-1.

         

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

         

        Underwriting
          Standards:
          As to
          each Mortgage Loan, the Seller’s underwriting guidelines in effect as of the
          date of origination of such Mortgage Loan.

         

        Whole
          Loan Transfer:
          As
          defined in Section 11.01(a)(i).

         

         

        ARTICLE
          III

        SERVICING
          OF MORTGAGE LOANS; RECORD TITLE AND POSSESSION OF MORTGAGE FILES; BOOKS
          AND
          RECORDS; CUSTODIAL AGREEMENT; DELIVERY OF MORTGAGE LOAN DOCUMENTS

         

        SECTION
          3.01  Agreement
          to Purchase.

         

        The
          Seller agrees to sell and the Purchaser agrees to purchase on each Closing
          Date,
          pursuant to this Agreement and the related Purchase Price and Terms Letter,
          the
          Mortgage Loans being sold by the Seller and listed on the related Mortgage
          Loan
          Schedule, servicing rights retained, having an aggregate Scheduled Principal
          Balance in an amount as set forth in the related Purchase Price and Terms
          Letter, or in such other amount as agreed by the Purchaser and the Seller
          as
          evidenced by the actual aggregate principal balance of the Mortgage Loans
          accepted by the Purchaser on such Closing Date. The Seller shall deliver
          in an
          electronic format the Mortgage Loan Schedule for the Mortgage Loans to
          be
          purchased on such Closing Date to the Purchaser at least two (2) Business
          Days
          prior to such Closing Date.

         

        SECTION
          3.02  Purchase
          Price.

         

        The
          Purchase Price for the Mortgage Loans in a Mortgage Loan Package shall
          be equal
          to the sum of (a) the percentage of par as stated in the related Purchase
          Price
          and Terms Letter (subject to adjustment as provided therein), multiplied
          by the
          aggregate Scheduled Principal Balance of Mortgage Loans as of the related
          Cut-off Date listed on the related Mortgage Loan Schedule plus
          (b)
          accrued interest on the aggregate Scheduled Principal Balance of the related
          Mortgage Loans at the weighted average Mortgage Loan Remittance Rate of
          such
          Mortgage Loans from the related Cut-off Date to but not including such
          Closing
          Date (the “Purchase
          Price”).
          If so
          provided in the related Purchase Price and Terms Letter, portions of each
          Mortgage Loan Package shall be priced separately.

         

        The
          Purchase Price as set forth in the preceding paragraph for the Mortgage
          Loans in
          a Mortgage Loan Package shall be paid on the related Closing Date by wire
          transfer of immediately available funds.

         

        With
          respect to each Mortgage Loan, the Purchaser shall be entitled to (1) the
          principal portion of all Monthly Payments due after the related Cut-off
          Date,
          (2) all other recoveries of principal collected on or after the related
          Cut-off
          Date (provided, however, that the principal portion of all Monthly Payments
          due
          on or before the related Cut-off Date and collected by the Seller or any
          successor servicer after the related Cut-off Date shall belong to the Seller),
          and (3) all payments of interest on the Mortgage Loans at the related Mortgage
          Loan Remittance Rate (minus that portion of any such payment which is allocable
          to the period prior to the related Cut-off Date). The Scheduled Principal
          Balance of each Mortgage Loan as of the related Cut-off Date is determined
          after
          application of payments of principal due on or before the related Cut-off
          Date
          whether or not collected, together with any unscheduled Principal Prepayments
          collected prior to the related Cut-off Date; provided,
          however,
          that
          Monthly Payments for a Due Date beyond the related Cut-off Date shall not
          be
          applied to the principal balance as of the related Cut-off Date. Such Monthly
          Payments shall be the property of the Purchaser. The Seller shall deposit
          any
          such Monthly Payments into the Custodial Account.

         

        SECTION
          3.03  Servicing
          of Mortgage Loans.

         

        On
          each
          Closing Date, the Mortgage Loans in the related Mortgage Loan Package will
          be
          sold by the Seller to the Purchaser on a servicing retained basis upon
          the
          execution and delivery of an Assignment and Conveyance in the form attached
          hereto as Exhibit
          E
          (the
“Assignment
          and Conveyance”).

         

        Simultaneously
          with the execution and delivery of the related Assignment and Conveyance,
          for
          each Mortgage Loan Package, the Seller hereby agrees to service the Mortgage
          Loans listed on the Mortgage Loan Schedule in accordance with Accepted
          Servicing
          Practices and this Agreement. The rights of the Purchaser to receive payments
          with respect to the related Mortgage Loans shall be as set forth in this
          Agreement.

         

        SECTION
          3.04  Record
          Title and Possession of Mortgage Files; Maintenance of Servicing
          Files.

         

        As
          of
          each Closing Date, the Seller will have sold, transferred, assigned, set
          over
          and conveyed to the Purchaser, without recourse, and the Seller hereby
          acknowledges that the Purchaser will have, all the right, title and interest
          of
          the Seller in and to the Mortgage Loans. In accordance with Section 2.07,
          the
          Seller shall deliver at its own expense, the Mortgage Files for the related
          Mortgage Loans to Purchaser or its designee. The possession of each Servicing
          File by the Seller is for the sole purpose of servicing the related Mortgage
          Loan. From each Closing Date, the ownership of each related Mortgage Loan,
          including the Mortgage Note, the Mortgage, the contents of the related
          Mortgage
          File and all rights, benefits, proceeds and obligations arising therefrom
          or in
          connection therewith, has been vested in the Purchaser. All rights arising
          out
          of the Mortgage Loans including, but not limited to, all funds received
          on or in
          connection with the Mortgage Loans and all records or documents with respect
          to
          the Mortgage Loans prepared by or which come into the possession of the
          Seller
          shall be received and held by the Seller in trust for the benefit of the
          Purchaser as the owner of the Mortgage Loans. Any portion of the Mortgage
          Files
          retained by the Seller shall be appropriately identified in the Seller’s
          computer system to clearly reflect the ownership of the Mortgage Loans
          by the
          Purchaser.

         

        In
          addition, in connection with the assignment of any MERS Mortgage Loan,
          the
          Seller agrees that it will cause, at its own expense, the MERS® System to
          indicate that such Mortgage Loans have been assigned by the Seller to the
          Purchaser in accordance with this Agreement by including (or deleting,
          in the
          case of Mortgage Loans which are repurchased in accordance with this Agreement)
          in such computer files the information required by the MERS® System to identify
          the Purchaser of such Mortgage Loans. The Seller further agrees that it
          will not
          alter the information 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.

         

        SECTION
          3.05  Books
          and
          Records.

         

        The
          sale
          of each Mortgage Loan will be reflected on the Seller’s balance sheet and other
          financial statements as a sale of assets by the Seller and will be reflected
          on
          the Purchaser’s balance sheet and other financial statements as a purchase by
          the Purchaser. The Seller shall maintain, a complete set of books and records
          for the Mortgage Loans sold by it which shall be appropriately identified
          in the
          Seller’s computer system to clearly reflect the ownership of the Mortgage Loans
          by the Purchaser. In particular, the Seller shall maintain in its possession,
          available for inspection by the Purchaser, or its designee and shall deliver
          to
          the Purchaser upon demand, evidence of compliance with all federal, state
          and
          local laws, rules and regulations, and requirements of Fannie Mae or Freddie
          Mac, as applicable, including but not limited to documentation as to the
          method
          used in determining the applicability of the provisions of the Flood Disaster
          Protection Act of 1973, as amended, to the Mortgaged Property, documentation
          evidencing insurance coverage and eligibility of any condominium project
          for
          approval by Seller and periodic inspection reports as required by Section
          4.13.
          To the extent that original documents are not required for purposes of
          realization of Liquidation Proceeds or Insurance Proceeds, documents maintained
          by the Seller may be in the form of microfilm or microfiche or such other
          reliable means of recreating original documents, including but not limited
          to,
          optical imagery techniques so long as the Seller complies with the requirements
          of the Fannie Mae Guides.

         

        SECTION
          3.06  Transfer
          of Mortgage Loans.

         

        The
          Seller shall keep at its office books and records in which, subject to
          such
          reasonable regulations as it may prescribe, the Seller shall note transfers
          of
          Mortgage Loans. No transfer of a Mortgage Loan may be made unless such
          transfer
          is in compliance with the terms of Section 11.12. For the purposes of this
          Agreement, the Seller shall be under no obligation to deal with any person
          with
          respect to this Agreement or any Mortgage Loan unless a properly executed
          Assignment, Assumption and Recognition Agreement in the form of Exhibit
          D
          with
          respect to such Mortgage Loan has been delivered to the Seller; provided,
          that,
          unless otherwise provided in the related Purchase Price and Terms Letter,
          in no
          event shall there be more than three (3) “Purchasers” with respect to any
          Mortgage Loan Package. Upon receipt of notice of the transfer, the Seller
          shall
          mark its books and records to reflect the ownership of the Mortgage Loans
          by
          such assignee, and, except as otherwise provided herein, the previous Purchaser
          shall be released from its obligations hereunder with respect to the Mortgage
          Loans sold or transferred.

         

        SECTION
          3.07  Delivery
          of Mortgage Loan Documents.

         

        The
          Seller shall deliver and release to the Purchaser or its designee the Mortgage
          Loan Documents no later than five (5) Business Days prior to the related
          Closing
          Date pursuant to a bailee letter agreement. If the Seller cannot deliver
          the
          original recorded Mortgage Loan Documents on the related Closing Date,
          the
          Seller shall use its best efforts to deliver within 180 days, and in no
          event
          later than 270 days, from the related Closing Date, such original recorded
          documents to the Purchaser or its designee (unless the Seller is delayed
          in
          making such delivery by reason of the fact that such documents shall not
          have
          been returned by the appropriate recording office). If delivery is not
          completed
          within 270 days of the related Closing Date solely because such documents
          shall
          not have been returned by the appropriate recording office, the Seller
          shall
          notify the Purchaser of the same and indicate in such notice the approximate
          date on which such documents shall be delivered. The Seller shall provide
          the
          Purchaser with updated reports as to the status of such documents as necessary
          thereafter. The Seller shall use its best efforts to effect delivery of
          all
          delayed recorded documents within 360 days of the related Closing
          Date.

         

        Any
          review by the Purchaser or its designee of the Mortgage Files shall in
          no way
          alter or reduce the Seller’s obligations hereunder.

         

        The
          Seller shall forward to the Purchaser, or its designee, original documents
          evidencing an assumption, modification, consolidation or extension of any
          Mortgage Loan entered into in accordance with Section 4.01 or 6.01 within
          two
          (2) weeks of their execution and shall also provide the original of any
          document
          submitted for recordation or a copy of such document certified by the
          appropriate public recording office to be a true and complete copy of the
          original within two (2) weeks of its return from the appropriate public
          recording office.

         

        SECTION
          3.08  Quality
          Control Procedures.

         

        The
          Seller shall have an internal quality control program that verifies, on
          a
          regular basis, the existence and accuracy of the legal documents, credit
          documents, property appraisals, and underwriting decisions. The program
          must be
          capable of evaluating and monitoring the overall quality of its loan production
          and servicing activities. The program is to ensure that the Mortgage Loans
          are
          originated and serviced in accordance with prudent mortgage banking practices
          and accounting principles; guard against dishonest, fraudulent, or negligent
          acts; and guard against errors and omissions by officers, employees, or
          other
          authorized persons.

         

        SECTION
          3.09  Closing.

         

        The
          closing for the purchase and sale of the Mortgage Loans shall take place
          on the
          related Closing Date. The closing shall be either: by telephone, confirmed
          by
          letter or wire as the parties shall agree, or conducted in person, at such
          place
          as the parties shall agree.

         

        The
          closing for the Mortgage Loans to be purchased on the related Closing Date
          shall
          be subject to each of the following conditions:

         

        (a)  at
          least
          two (2) Business Days prior to the related Closing Date, the Seller shall
          deliver to the Purchaser a magnetic diskette, or transmit by modem or e-mail,
          a
          listing on a loan-level basis of the information contained in the Mortgage
          Loan
          Schedule;

         

        (b)  all
          of
          the representations and warranties of the Seller and the Purchaser under
          this
          Agreement shall be true and correct as of the related Closing Date or,
          with
          respect to representations and warranties made as of a date other than
          the
          related Closing Date, as of such date, and no event shall have occurred
          which,
          with notice or the passage of time, would constitute a default under this
          Agreement;

         

        (c)  the
          Purchaser shall have received, or the Purchaser’s attorneys shall have received
          in escrow, all closing documents, in such forms as are agreed upon and
          acceptable to the Purchaser, duly executed by all signatories other than
          the
          Purchaser as required pursuant to the terms hereof;

         

        (d)  the
          Seller shall have received, or the Seller’s attorneys shall have received in
          escrow, all closing documents, in such forms as are agreed upon and acceptable
          to the Seller, duly executed by all signatories other than the Seller as
          required pursuant to the terms hereof;

         

        (e)  the
          Seller shall have delivered and released to the Purchaser (or its designee)
          on
          or prior to the related Closing Date all documents required to be delivered
          and
          released pursuant to the terms of this Agreement; and

         

        (f)  all
          other
          terms and conditions of this Agreement, the related Purchase Price and
          Terms
          Letter and the related Assignment and Conveyance shall have been materially
          complied with.

         

        Subject
          to the foregoing conditions, the Purchaser shall pay to the Seller on the
          related Closing Date the Purchase Price pursuant to Section 2.02 of this
          Agreement, by wire transfer of immediately available funds to the account
          designated by the Seller.

         

         

        ARTICLE
          IV

        REPRESENTATIONS
          AND WARRANTIES OF THE SELLER; REPURCHASE; REVIEW OF MORTGAGE LOANS

         

        SECTION
          4.01  Representations
          and Warranties of the Seller.

         

        The
          Seller represents, warrants and covenants to the Purchaser that as of each
          Closing Date or as of such date specifically provided herein:

         

        (a)  The
          Seller is a corporation duly organized, validly existing and in good standing
          under the laws of the jurisdiction of its incorporation and has all licenses
          necessary to carry out its business as now being conducted, and is licensed
          and
          qualified to transact business in and is in good standing under the laws
          of each
          state in which any Mortgaged Property is located or is otherwise exempt
          under
          applicable law from such licensing or qualification or is otherwise not
          required
          under applicable law to effect such licensing or qualification and no demand
          for
          such licensing or qualification has been made upon the Seller by any such
          state,
          and in any event the Seller is in compliance with the laws of any such
          state to
          the extent necessary to ensure the enforceability of each Mortgage Loan
          and the
          servicing of the Mortgage Loans in accordance with the terms of this
          Agreement;

         

        (b)  The
          Seller has the full power and authority and legal right to hold, transfer
          and
          convey 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 related Purchase Price and Terms Letter and the related
          Assignment and Conveyance and to conduct its business as presently conducted;
          the Seller has duly authorized the execution, delivery and performance
          of this
          Agreement and any agreements contemplated hereby, has duly executed and
          delivered this Agreement, the related Purchase Price and Terms Letter and
          the
          related Assignment and Conveyance, and any agreements contemplated hereby,
          and
          this Agreement, the related Purchase Price and Terms Letter, the related
          Assignment and Conveyance and each Assignment of Mortgage to the Purchaser
          and
          any agreements contemplated hereby, constitute the legal, valid and binding
          obligations of the Seller, enforceable against it in accordance with their
          respective terms, except as such enforceability may be limited by bankruptcy,
          insolvency, moratorium, reorganization and similar laws, and by equitable
          principles affecting the enforceability of the rights of creditors; and
          all
          requisite corporate action has been taken by the Seller to make this Agreement,
          the related Purchase Price and Terms Letter, the related Assignment and
          Conveyance and all agreements contemplated hereby valid and binding upon
          the
          Seller in accordance with their respective terms;

         

        (c)  None
          of
          the execution and delivery of this Agreement, the related Purchase Price
          and
          Terms Letter, the related Assignment and Conveyance, the sale of the Mortgage
          Loans to the Purchaser, the consummation of the transactions contemplated
          hereby, or the fulfillment of or compliance with the terms and conditions
          of
          this Agreement, the related Purchase Price and Terms Letter or the related
          Assignment and Conveyance will conflict with any of the terms, conditions
          or
          provisions of the Seller’s charter or by-laws or materially conflict with or
          result in a material breach of any of the terms, conditions or provisions
          of any
          legal restriction or any material 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 material violation
          of
          any law, rule, regulation, order, judgment or decree to which the Seller
          or its
          property is subject;

         

        (d)  There
          is
          no litigation, suit, proceeding or investigation pending or, to the Seller’s
          knowledge, threatened, or any order or decree outstanding, which is reasonably
          likely to have a material adverse effect on the sale of the Mortgage Loans,
          the
          execution, delivery, performance or enforceability of this Agreement, the
          related Purchase Price and Terms Letter or the related Assignment and
          Conveyance, or which is reasonably likely to have a material adverse effect
          on
          the financial condition of the Seller;

         

        (e)  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 related Purchase Price
          and
          Terms Letter and the related Assignment and Conveyance, except for consents,
          approvals, authorizations and orders which have been obtained;

         

        (f)  The
          consummation of the transactions contemplated by this Agreement, the related
          Purchase Price and Terms Letter and the related Assignment and Conveyance
          are in
          the ordinary course of business of the Seller, and the transfer, assignment
          and
          conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant
          to
          this Agreement, the related Purchase Price and Terms Letter and the related
          Assignment and Conveyance are not subject to bulk transfer or any similar
          statutory provisions in effect in any applicable jurisdiction;

         

        (g)  The
          Seller has not used selection procedures that identified the Mortgage Loans
          as
          being less desirable or valuable than other comparable mortgage loans in
          the
          Seller’s portfolio at the Cut-off Date;

         

        (h)  The
          Seller will treat the sale of the Mortgage Loans to the Purchaser as a
          sale for
          reporting and accounting purposes and, to the extent appropriate, for federal
          income tax purposes;

         

        (i)  The
          Seller is an approved seller/servicer of residential mortgage loans for
          Fannie
          Mae or Freddie Mac and HUD, with such facilities, procedures and personnel
          necessary for the sound servicing of such mortgage loans. The Seller is
          duly
          qualified, licensed, registered and otherwise authorized under all applicable
          federal, state and local laws and regulations, meets the minimum capital
          requirements, if applicable, set forth by the OCC, and is in good standing
          to
          sell mortgage loans to and service mortgage loans for Fannie Mae or Freddie
          Mac
          and no event has occurred which would make the Seller unable to comply
          with
          eligibility requirements or which would require notification to either
          Fannie
          Mae or Freddie Mac;

         

        (j)  The
          Seller does not believe, nor does it have any cause or reason to believe,
          that
          it cannot perform each and every covenant contained in this Agreement and
          the
          related Purchase Price and Terms Letter. The Seller is solvent and the
          sale of
          the Mortgage Loans will not cause the Seller to become insolvent. The sale
          of
          the Mortgage Loans is not undertaken with the intent to hinder, delay or
          defraud
          any of the Seller’s creditors;

         

        (k)  No
          statement, tape, diskette, form, report or other document prepared by,
          or on
          behalf of, the Seller pursuant to this Agreement, the related Purchase
          Price and
          Terms Letter or in connection with the transactions contemplated hereby,
          contains or will contain any statement that is or will be inaccurate or
          misleading in any material respect;

         

        (l)  The
          Seller acknowledges and agrees that the Servicing Fee represents reasonable
          compensation for performing such services and that the entire Servicing
          Fee
          shall be treated by the Seller, for accounting and tax purposes, as compensation
          for the servicing and administration of the Mortgage Loans pursuant to
          this
          Agreement;

         

        (m)  The
          Seller has delivered to the Purchaser financial statements as to its last
          two
          complete fiscal years for which financial statements are available. All
          such
          financial statements fairly present the pertinent results of operations
          and
          changes in financial position for each of such periods and the financial
          position at the end of each such period of the Seller and its subsidiaries
          and
          have been prepared in accordance with GAAP consistently applied throughout
          the
          periods involved, except as set forth in the notes thereto. There has been
          no
          change in the business, operations, financial condition, properties or
          assets of
          the Seller since the date of the Seller’s financial statements that would have a
          material adverse effect on its ability to perform its obligations under
          this
          Agreement, the related Purchase Price and Terms Letter or the related Assignment
          and Conveyance;

         

        (n)  The
          Seller has not dealt with any broker, investment banker, agent or other
          person
          that may be entitled to any commission or compensation in connection with
          the
          sale of the Mortgage Loans;

         

        (o)  The
          Seller is a member of MERS in good standing, and will comply in all material
          respects with the rules and procedures of MERS in connection with the servicing
          of the MERS Mortgage Loans for as long as such Mortgage Loans are registered
          with MERS;

         

        (p)  Immediately
          prior to the payment of the Purchase Price for each Mortgage Loan, the
          Seller
          was the owner of record of the related Mortgage and the indebtedness evidenced
          by the related Mortgage Note;

         

        (q)  The
          Seller shall maintain a complete set of books and records for each Mortgage
          Loan
          which shall be clearly marked to reflect the ownership of each Mortgage
          Loan by
          the Purchaser;

         

        (r)  The
          consideration received by the Seller upon the sale of the Mortgage Loans
          constitutes fair consideration and reasonably equivalent value for such
          Mortgage
          Loans;

         

        (s)  Neither
          this Agreement nor any written statement, report or other document prepared
          and
          furnished or to be prepared and furnished by the Seller pursuant to this
          Agreement or in connection with the transactions contemplated hereby contains
          any untrue statement of material fact or omits to state a material fact
          necessary to make the statements contained herein or therein not misleading;
          and

         

        (t)  The
          Seller’s underwriting guidelines delivered to the Purchaser are true, correct
          and complete.

         

        SECTION
          4.02  Representations
          and Warranties as to Individual Mortgage Loans.

         

        The
          Seller hereby represents and warrants to the Purchaser, as to each Mortgage
          Loan, as of the related Closing Date as follows:

         

        (a)  The
          information set forth in the Mortgage Loan Schedule, including any diskette
          or
          other related data tapes delivered to the Purchaser, is complete, true
          and
          correct in all material respects as of the related Cut-off Date;

         

        (b)  With
          respect to a first lien Mortgage Loan that is not a Co-op Loan, the Mortgage
          creates a first lien or a first priority ownership interest in an estate
          in fee
          simple in real property securing the related Mortgage Note. With respect
          to a
          first lien Mortgage Loan that is a Co-op Loan, the Mortgage creates a first
          lien
          or a first priority ownership interest in the stock ownership and leasehold
          rights associated with the cooperative unit securing the related Mortgage
          Note;

         

        (c)  With
          respect to a second lien Mortgage Loan that is not a Co-op Loan, the Mortgage
          creates a second lien or a second priority ownership interest in an estate
          in
          fee simple in real property securing the related Mortgage Note. With respect
          to
          a second lien Mortgage Loan that is a Co-op Loan, the Mortgage creates
          a second
          lien or a second priority ownership interest in the stock ownership and
          leasehold rights associated with the cooperative unit securing the related
          Mortgage Note;

         

        (d)  All
          payments due on or prior to the related Cut-off Date for such Mortgage
          Loan have
          been made as of the related Closing Date, the Mortgage Loan is not delinquent
          thirty (30) days or more in payment and has not been dishonored; there
          are no
          material defaults under the terms of the Mortgage Loan; the Seller has
          not
          advanced funds, or induced, solicited or knowingly received any advance
          of funds
          from a party other than the owner of the Mortgaged Property subject to
          the
          Mortgage, directly or indirectly, for the payment of any amount required
          by the
          Mortgage Loan; as to each Mortgage Loan, there has been no more than one
          thirty
          (30) day delinquency during the immediately preceding twelve-month
          period;

         

        (e)  All
          taxes, governmental assessments, insurance premiums, water, sewer and municipal
          charges, leasehold payments or ground rents which previously became due
          and
          owing have been paid, or escrow funds have been established in an amount
          sufficient to pay for every such escrowed item which remains unpaid and
          which
          has been assessed but is not yet due and payable;

         

        (f)  The
          terms
          of the Mortgage Note and the Mortgage have not been impaired, waived, altered
          or
          modified in any respect, except by written instruments which have been
          recorded
          to the extent any such recordation is required by law, or, necessary to
          protect
          the interest of the Purchaser. No instrument of waiver, alteration or
          modification has been executed in connection with such Mortgage Loan, and
          no
          Mortgagor has been released, in whole or in part, from the terms thereof
          except
          in connection with an assumption agreement and which assumption agreement
          is
          part of the Mortgage File and the terms of which are reflected in the Mortgage
          Loan Schedule; the substance of any such waiver, alteration or modification
          has
          been approved by the issuer of any related Primary Mortgage Insurance Policy
          and
          title insurance policy, to the extent required by the related
          policies;

         

        (g)  The
          Mortgage Note and the Mortgage are not subject to any right of rescission,
          set-off, counterclaim or defense, including, without limitation, the defense
          of
          usury, nor will the operation of any of the terms of the Mortgage Note
          or the
          Mortgage, or the exercise of any right thereunder, render the Mortgage
          Note or
          Mortgage unenforceable, in whole or in part, or subject to any right of
          rescission, set-off, counterclaim or defense, including the defense of
          usury,
          and no such right of rescission, set-off, counterclaim or defense has been
          asserted with respect thereto;

         

        (h)  All
          buildings or other customarily insured improvements upon the Mortgaged
          Property
          are insured by an insurer acceptable under the Fannie Mae Guides, against
          loss
          by fire, hazards of extended coverage and such other hazards as are provided
          for
          in the Fannie Mae Guides or by Freddie Mac, as well as all additional
          requirements set forth in Section 4.10 of this Agreement. All such standard
          hazard policies are in full force and effect and on the date of origination
          contained a standard mortgagee clause naming the Seller and its successors
          in
          interest and assigns as loss payee and such clause is still in effect and
          all
          premiums due thereon have been paid. If required by the Flood Disaster
          Protection Act of 1973, as amended, the Mortgage Loan is covered by a flood
          insurance policy meeting the requirements of the current guidelines of
          the
          Federal Insurance Administration which policy conforms to Fannie Mae and
          Freddie
          Mac requirements, as well as all additional requirements set forth in Section
          4.10 of this Agreement. Such policy was issued by an insurer acceptable
          under
          Fannie Mae or Freddie Mac guidelines. The Mortgage obligates the Mortgagor
          thereunder to maintain all such insurance at the Mortgagor’s cost and expense,
          and upon the Mortgagor’s failure to do so, authorizes the holder of the Mortgage
          to maintain such insurance at the Mortgagor’s cost and expense and to seek
          reimbursement therefor from the Mortgagor;

         

        (i)  Any
          and
          all requirements of any federal, state or local law including, without
          limitation, usury, truth-in-lending, real estate settlement procedures,
          consumer
          credit protection, equal credit opportunity or disclosure laws and all
          predatory
          and abusive lending laws applicable to the Mortgage Loan have been complied
          with
          in all material respects and the Seller shall deliver to the Purchaser,
          upon
          request, evidence of compliance thereof;

         

        (j)  The
          Mortgage has not been satisfied, canceled or subordinated, in whole or
          in part,
          or rescinded, and the Mortgaged Property has not been released from the
          lien of
          the Mortgage, in whole or in part nor has any instrument been executed
          that
          would effect any such release, cancellation, subordination or rescission.
          The
          Seller has not waived the performance by the Mortgagor of any action, if
          the
          Mortgagor’s failure to perform such action would cause the Mortgage Loan to be
          in default, nor has the Seller waived any default resulting from any action
          or
          inaction by the Mortgagor;

         

        (k)  With
          respect to any first lien Mortgage Loan, the related Mortgage is a valid,
          subsisting, enforceable and perfected first lien on the Mortgaged Property
          and,
          with respect to any second lien Mortgage Loan, the related Mortgage is
          a valid,
          subsisting, enforceable and perfected second lien on the Mortgaged Property,
          including for Mortgage Loans that are not Co-op Loans, all buildings on
          the
          Mortgaged Property and all installations and mechanical, electrical, plumbing,
          heating and air conditioning systems affixed to such buildings, and all
          additions, alterations and replacements made at any time with respect to
          the
          foregoing securing the Mortgage Note’s original principal balance. The Mortgage
          and the Mortgage Note do not contain any evidence of any security interest
          or
          other interest or right thereto. Such lien is free and clear of all adverse
          claims, liens and encumbrances having priority over the first or second
          lien, as
          applicable, of the Mortgage subject only to (1) with respect to any second
          lien
          Mortgage Loan, the related First Lien, (2) the lien of non-delinquent current
          real property taxes and assessments not yet due and payable, (3) covenants,
          conditions and restrictions, rights of way, easements and other matters
          of the
          public record as of the date of recording which are acceptable to mortgage
          lending institutions generally and either (A) which are referred to or
          otherwise
          considered in the appraisal made for the originator of the Mortgage Loan,
          or (B)
          which do not adversely affect the appraised value of the Mortgaged Property
          as
          set forth in such appraisal, and (4) other matters to which like properties
          are
          commonly subject which do not materially interfere with the benefits of
          the
          security intended to be provided by the Mortgage or the use, enjoyment,
          value or
          marketability of the related Mortgaged Property. Any security agreement,
          chattel
          mortgage or equivalent document related to and delivered in connection
          with the
          Mortgage Loan establishes and creates (1) with respect to any first lien
          Mortgage Loan, a valid, subsisting, enforceable and perfected first lien
          and
          first priority security interest and (2) with respect to any second lien
          Mortgage Loan, a valid, subsisting, enforceable and perfected second lien
          and
          second priority security interest, in each case, on the property described
          therein, and the Seller has the full right to sell and assign the same
          to the
          Purchaser;

         

        (l)  The
          Mortgage Note and the related Mortgage are original and genuine and each
          is the
          legal, valid and binding obligation of the maker thereof, enforceable in
          all
          respects in accordance with its terms, except as such enforcement may be
          limited
          by bankruptcy, insolvency, moratorium, reorganization and other laws of
          general
          application affecting the rights of creditors generally
          and the equitable remedy of specific performance and by
          general equitable principles. All parties to the Mortgage Note and the
          related
          Mortgage had the legal capacity to enter into the Mortgage Loan and to
          execute
          and deliver the Mortgage Note and the related Mortgage. The Mortgage Note
          and
          the related Mortgage have been duly and properly executed by such parties.
          No
          fraud, error, omission, misrepresentation, negligence or similar occurrence
          with
          respect to a Mortgage Loan has taken place on the part of Seller, the Mortgagor,
          any appraisers, any builder or developer, or any other party involved in
          the
          origination of the Mortgage Loan or in the application for any insurance
          in
          relation to such Mortgage Loan. The proceeds of the Mortgage Loan have
          been
          fully disbursed and there is no requirement for future advances thereunder,
          and
          any and all requirements as to completion of any on-site or off-site
          improvements and as to disbursements of any escrow funds therefor have
          been
          complied with. All costs, fees and expenses incurred in making or closing
          the
          Mortgage Loan and the recording of the Mortgage were paid or are in the
          process
          of being paid, and the Mortgagor is not entitled to any refund of any amounts
          paid or due under the Mortgage Note or related Mortgage;

         

        (m)  Except
          with respect to MERS Mortgage Loans, the Seller or its affiliate is the
          sole
          owner of record and holder of the Mortgage Loan and the indebtedness evidenced
          by the Mortgage Note, and upon recordation the Purchaser or its designee
          will be
          the owner of record of the Mortgage and the indebtedness evidenced by the
          Mortgage Note, and upon the sale of the Mortgage Loan to the Purchaser,
          the
          Seller will retain the Servicing File in trust for the Purchaser only for
          the
          purpose of servicing and supervising the servicing of the Mortgage Loan.
          Immediately prior to the transfer and assignment to the Purchaser on the
          related
          Closing Date, the Mortgage Loan, including the Mortgage Note and the Mortgage,
          were not subject to an assignment or pledge, and the Seller had good and
          marketable title to and was the sole owner thereof and had full right to
          transfer and sell the Mortgage Loan to the Purchaser free and clear of
          any
          encumbrance, equity, lien, pledge, charge, claim or security interest and
          has
          the full right and authority subject to no interest or participation of,
          or
          agreement with, any other party, to sell and assign the Mortgage Loan pursuant
          to this Agreement and following the sale of the Mortgage Loan, the Purchaser
          will own such Mortgage Loan free and clear of any encumbrance, equity,
          participation interest, lien, pledge, charge, claim or security interest.
          The
          Seller intends to relinquish all rights to possess, control and monitor
          the
          Mortgage Loan, except for the purposes of servicing the Mortgage Loan as
          set
          forth in this Agreement;

         

        (n)  Each
          Mortgage Loan that is not a Co-op Loan is covered by an ALTA lender’s title
          insurance policy or other generally acceptable form of policy or insurance
          acceptable to Fannie Mae or Freddie Mac, issued by a title insurer acceptable
          to
          Fannie Mae or Freddie Mac and qualified to do business in the jurisdiction
          where
          the Mortgaged Property is located, insuring (subject to the exceptions
          contained
          in (k)(1), (2), (3) and (4) above) the Seller, its successors and assigns,
          as to
          the first or second priority lien, as applicable, of the Mortgage in the
          original principal amount of the Mortgage Loan. Where required by applicable
          state law or regulation, the Mortgagor has been given the opportunity to
          choose
          the carrier of the required mortgage title insurance. The Seller, its successors
          and assigns, are the sole insureds of such lender’s title insurance policy, such
          title insurance policy has been duly and validly endorsed to the Purchaser
          or
          the assignment to the Purchaser of the Seller’s interest therein does not
          require the consent of or notification to the insurer 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 the related Purchase Price and Terms Letter. No claims have been made
          under
          such lender’s title insurance policy, and no prior holder of the related
          Mortgage, including the Seller, has done, by act or omission, anything
          which
          would impair the coverage of such lender’s title insurance policy;

         

        (o)  Except
          as
          shown on the related Mortgage Loan Schedule or a supplement thereto, there
          is no
          default, breach, violation or event of acceleration existing under the
          Mortgage
          or the related Mortgage Note and no event which, with the passage of time
          or
          with notice and the expiration of any grace or cure period, would constitute
          a
          default, breach, violation or event permitting acceleration; and neither
          the
          Seller nor, to the Seller’s knowledge, any prior mortgagee has waived any
          default, breach, violation or event permitting acceleration. With respect
          to
          each second lien Mortgage Loan, (i) the First Lien is in full force and
          effect,
          (ii) there is no default, breach, violation or event of acceleration existing
          under such prior mortgage or the related mortgage note, (iii) no event
          which,
          with the passage of time or with notice and the expiration of any grace
          or cure
          period, would constitute a default, breach, violation or event of acceleration
          thereunder, and either (A) the prior mortgage contains a provision which
          allows
          or (B) applicable law requires, the mortgagee under the second lien Mortgage
          Loan to receive notice of, and affords such mortgagee an opportunity to
          cure any
          default by payment in full or otherwise under the prior mortgage;

         

        (p)  As
          of the
          date of origination, and to the Seller’s knowledge, as of the Closing Date,
          there were no mechanics’ or similar liens or claims which have been filed for
          work, labor or material (and no rights are outstanding that under law could
          give
          rise to such liens) affecting the related Mortgaged Property which were,
          are or
          may be liens prior to or equal to the lien of the related Mortgage, which
          are
          not insured against by the title insurance policy referenced in paragraph
          (n)
          above;

         

        (q)  All
          improvements subject to the Mortgage which were considered in determining
          the
          Appraised Value of the Mortgaged Property lie wholly within the boundaries
          and
          building restriction lines of the Mortgaged Property (and wholly within
          the
          project with respect to a condominium unit) and no improvements on adjoining
          properties encroach upon the Mortgaged Property except those which are
          insured
          against by the title insurance policy referred to in clause (n) above and
          all
          improvements on the property comply with all applicable zoning and subdivision
          laws and ordinances;

         

        (r)  The
          Mortgage Loan was originated by or for the Seller. The Mortgage Loan complies
          with the terms, conditions and requirements of the Underwriting Standards
          in all
          material respects. The Mortgage Notes and Mortgages (exclusive of any riders)
          are on forms generally acceptable to Fannie Mae or Freddie Mac. The Mortgage
          Loan bears interest at the Mortgage Interest Rate set forth in the related
          Mortgage Loan Schedule, and Monthly Payments under the Mortgage Note are
          due and
          payable on the first day of each month. The Mortgage contains the usual
          and
          enforceable provisions of the originator at the time of origination for
          the
          acceleration of the payment of the unpaid principal amount of the Mortgage
          Loan
          if the related Mortgaged Property is sold without the prior consent of
          the
          mortgagee thereunder;

         

        (s)  The
          Mortgaged Property at origination of the related Mortgage Loan was and
          currently
          is free of material damage and waste. At origination of the Mortgage Loan
          there
          was and there currently is, no proceeding pending for the total or partial
          condemnation of the Mortgaged Property;

         

        (t)  The
          related Mortgage contains customary and enforceable provisions such as
          to render
          the rights and remedies of the holder thereof adequate for the realization
          against the Mortgaged Property of the benefits of the security provided
          thereby.
          There is no homestead or other exemption available to the Mortgagor which
          would
          interfere with the right to sell the Mortgaged Property at a trustee’s sale or
          the right to foreclose the Mortgage subject to applicable federal and state
          laws
          and judicial precedent with respect to bankruptcy and right of
          redemption;

         

        (u)  If
          the
          Mortgage constitutes a deed of trust, a trustee, authorized and duly qualified
          if required under applicable law to act as such, has been properly designated
          and currently so serves and is named in the Mortgage, and no fees or expenses,
          except as may be required by local law, are or will become payable by the
          Purchaser to the trustee under the deed of trust, except in connection
          with a
          trustee’s sale or attempted sale after default by the Mortgagor;

         

        (v)  If
          required by the applicable processing style, the Mortgage File contains
          an
          appraisal of the related Mortgaged Property, in a form acceptable to Fannie
          Mae
          or Freddie Mac, and such appraisal complies with the requirements of FIRREA
          and,
          to the extent required in the Underwriting Standards with respect to mortgage
          loans of the same type as the Mortgage Loan, was signed prior to the final
          approval of the mortgage loan application by a Qualified Appraiser;

         

        (w)  All
          parties which have had any interest in the Mortgage, whether as mortgagee,
          assignee, pledgee or otherwise, are (or, during the period in which they
          held
          and disposed of such interest, were) (A) in compliance with any and all
          applicable licensing requirements of the laws of the state wherein the
          Mortgaged
          Property is located, and (B) (1) organized under the laws of such state,
          or (2)
          qualified to do business in such state, or (3) federal savings and loan
          associations or national banks or a Federal Home Loan Bank or savings bank
          having principal offices in such state, or (4) not doing business in such
          state;

         

        (x)  The
          related Mortgage Note is not and has not been secured by any collateral
          except
          the lien of the corresponding Mortgage and the security interest of any
          applicable security agreement or chattel mortgage referred to in clause
          (k)
          above and such collateral does not serve as security for any other
          obligation;

         

        (y)  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 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 shared appreciation
          or
          other contingent interest feature;

         

        (z)  The
          Mortgagor was not in bankruptcy or insolvent as of the date of origination
          of
          the Mortgage Loan and is not in bankruptcy or insolvent as of the related
          Closing Date;

         

        (aa)  Each
          Fixed Rate Mortgage Loan has an original term to maturity of not more than
          thirty (30) years, with interest calculated and payable in arrears on the
          first
          day of each month in equal monthly installments of principal and interest.
          Except with respect to Interest Only Mortgage Loans, each Mortgage Note
          requires
          a monthly payment which is sufficient to fully amortize the original principal
          balance of the Mortgage Loan fully by the stated maturity date, over an
          original
          term of not more than thirty (30) years and to pay interest at the related
          Mortgage Interest Rate; provided, however, in the case of a balloon Mortgage
          Loan, the Mortgage Loan matures at least five (5) years after the first
          payment
          date thereby requiring a final payment of the outstanding principal balance
          prior to the full amortization of the Mortgage Loan. No Mortgage Loan contains
          terms or provisions which would result in negative amortization;

         

        (bb)  If
          a
          Mortgage Loan has an LTV greater than 80%, the portion of the principal
          balance
          of such Mortgage Loan in excess of the portion of the Appraisal Value of
          the
          Mortgaged Property required by Fannie Mae, is and will be insured as to
          payment
          defaults by a Primary Mortgage Insurance Policy issued by a Qualified Insurer.
          All provisions of such Primary Mortgage 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. No action, inaction, or event has occurred and
          no
          state of facts exists that has, or will result in the exclusion from, denial
          of,
          or defense to coverage. Any Mortgage Loan subject to a Primary Mortgage
          Insurance Policy obligates the Mortgagor thereunder to maintain the Primary
          Mortgage Insurance Policy and to pay all premiums and charges in connection
          therewith. The mortgage interest rate for the Mortgage Loan as set forth
          on the
          related Mortgage Loan Schedule is net of any such insurance
          premium;

         

        (cc)  The
          Assignment of Mortgage is in recordable form and is acceptable for recording
          under the laws of the jurisdiction in which the Mortgaged Property is
          located;

         

        (dd)  As
          to
          Mortgage Loans that are not Co-op Loans and that are not secured by an
          interest
          in a leasehold estate, the Mortgaged Property is located in the state identified
          in the related Mortgage Loan Schedule and consists of a single parcel of
          real
          property with a detached single family residence erected thereon, or a
          townhouse, or a two-to four-family dwelling, or an individual condominium
          unit
          in a condominium project, or an individual unit in a planned unit development
          or
          a de minimis planned unit development, provided,
          however,
          that no
          residence or dwelling is a mobile home. 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 Fannie Mae
          and
          Freddie Mac and/or the Underwriting Standards;

         

        (ee)  Except
          with respect to Interest Only Mortgage Loans, principal payments on the
          Mortgage
          Loan commenced no more than sixty (60) days after the funds were disbursed
          in
          connection with such Mortgage Loan;

         

        (ff)  The
          Mortgaged Property is lawfully occupied under applicable law; all inspections,
          licenses and certificates required to be made or issued with respect to
          all
          occupied portions of the Mortgaged Property and, with respect to the use
          and
          occupancy of the same, including but not limited to certificates of occupancy
          and fire underwriting certificates, have been made or obtained from the
          appropriate authorities;

         

        (gg)  The
          Mortgaged Property is in material compliance with all applicable environmental
          laws pertaining to environmental hazards including, without limitation,
          asbestos, and neither the Seller nor, to the Seller’s knowledge, the related
          Mortgagor, has received any notice of any violation or potential violation
          of
          such law;

         

        (hh)  The
          related Mortgagor has not notified the Seller, and the Seller has no knowledge
          of any relief requested or allowed to the Mortgagor under the Servicemembers
          Civil Relief Act;

         

        (ii)  Each
          Mortgage Loan has been serviced in all material respects in compliance
          with
          Accepted Servicing Practices;

         

        (jj)  With
          respect to each Co-op Loan, the related Mortgage is a valid, enforceable
          and
          subsisting first security interest on the related cooperative shares securing
          the related cooperative note, subject only to (a) liens of the cooperative
          for
          unpaid assessments representing the Mortgagor’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 (b) 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 Security Agreement.
          There are no liens against or security interest in the cooperative shares
          relating to each Co-op Loan (except for unpaid maintenance, assessments
          and
          other amounts owed to the related cooperative which individually or in
          the
          aggregate will not have a material adverse effect on such Co-op Loan),
          which
          have priority over the Seller’s security interest in such cooperative
          shares;

         

        (kk)  With
          respect to each Co-op Loan, a search for filings of financing statements
          has
          been made by a company competent to make the same, which company is acceptable
          to Fannie Mae and qualified to do business in the jurisdiction where the
          cooperative unit is located, and such search has not found anything which
          would
          materially and adversely affect the Co-op Loan;

         

        (ll)  With
          respect to each Co-op Loan, the related cooperative corporation that owns
          title
          to the related cooperative apartment building is a “cooperative housing
          corporation” within the meaning of Section 216 of the Code, and is in material
          compliance with applicable federal, state and local laws which, if not
          complied
          with, could have a material adverse effect on the Mortgaged
          Property;

         

        (mm)  With
          respect to each Co-op Loan, there is no prohibition against pledging the
          shares
          of the cooperative corporation or assigning the Co-op Lease;

         

        (nn)  The
          Mortgage Loan was originated by a mortgagee approved by the Secretary of
          Housing
          and Urban Development pursuant to sections 203 and 211 of the National
          Housing
          Act, a savings and loan association, a savings bank, a commercial bank,
          credit
          union, insurance company or similar institution which is supervised and
          examined
          by a federal or state authority;

         

        (oo)  [Reserved];

         

        (pp)  With
          respect to any broker fees collected and paid on any of the Mortgage Loans,
          all
          broker fees have been properly assessed to the borrower and no claims will
          arise
          as to broker fees that are double charged and for which the borrower would
          be
          entitled to reimbursement;

         

        (qq)  Each
          Mortgage Loan constitutes a “qualified mortgage” under
          Section 860G(a)(3)(A) of the Code and Treasury Regulations Section
          1.860G-2(a)(1);

         

        (rr)  Except
          as
          provided in Section 2.07, the Mortgage Note, the Mortgage, the Assignment
          of
          Mortgage and the other documents set forth in Exhibit A-1 and required
          to be
          delivered on the related Closing Date have been delivered to the Purchaser
          or
          its designee;

         

        (ss)  To
          the
          Seller’s knowledge, all information supplied by, on behalf of, or concerning the
          Mortgagor is true, accurate and complete and does not contain any statement
          that
          is or will be inaccurate or misleading in any material respect;

         

        (tt)  The
          Mortgagor has executed a statement to the effect that the Mortgagor has
          received
          all disclosure materials required by applicable law with respect to the
          making
          of adjustable rate mortgage loans. The Seller shall maintain such statement
          in
          the Servicing File;

         

        (uu)  No
          Mortgage Loan had a Loan-to-Value Ratio at the time of origination of more
          than
          100%. No second lien Mortgage Loan has an Equity LTV in excess of
          100%;

         

        (vv)  Either
          (a) no consent for the second lien Mortgage Loan is required by the holder
          of
          the related First Lien or (b) such consent has been obtained and is contained
          in
          the Mortgage File;

         

        (ww)  With
          respect to any second lien Mortgage Loan, the Seller has not received notice
          of:
          (1) any proceeding for the total or partial condemnation of any Mortgaged
          Property, (2) any subsequent, intervening mortgage, lien, attachment, lis
          pendens or other encumbrance affecting any Mortgaged Property or (3) any
          default
          under any mortgage, lien or other encumbrance senior to each
          Mortgage;

         

        (xx)  No
          second
          lien Mortgage Loan is a “home equity line of credit”;

         

        (yy)  As
          of the
          Closing Date, the Seller has not received a notice of default of a First
          Lien
          which has not been cured;

         

        (zz)  No
          First
          Lien provides for negative amortization;

         

        (aaa)  No
          Mortgage Loan is classified as a “high cost” mortgage loan under the Home
          Ownership and Equity Protection Act of 1994, as amended, nor is any Mortgage
          Loan a “high cost home,” “covered” (excluding home loans defined as “covered
          home loans” pursuant to the New Jersey Home Ownership Security Act of 2002),
“high risk home” or “predatory” loan under any applicable state, federal or
          local law (or a similarly classified loan using different terminology under
          an
          applicable law imposing heightened regulatory scrutiny or additional legal
          liability for residential mortgage loans having high interest rates, points
          and/or fees);

         

        (bbb)  None
          of
          the proceeds of the Mortgage Loan were used to finance single-premium credit
          insurance policies;

         

        (ccc)  With
          respect to any Mortgage Loan which is a Texas Home Equity Loan, any and
          all
          requirements of Section 50, Article XVI of the Texas Constitution applicable
          to
          Texas Home Equity Loans which were in effect at the time of the origination
          of
          the Mortgage Loan have been complied with. No Mortgage Loan is a Cash-Out
          Refinancing;

         

        (ddd)  No
          Mortgage Loan which was originated on or after October 1, 2002 and prior
          to
          March 7, 2003 is secured by a Mortgaged Property located in the State of
          Georgia
          has an original principal balance that is less than or equal to the applicable
          conforming loan limit established by Fannie Mae (as of the related origination
          date);

         

        (eee)  The
          origination and servicing practices with respect to each Mortgage Note
          and
          Mortgage have been legal and in accordance with applicable laws and regulations,
          and in all material respects proper and prudent in the mortgage origination
          and
          servicing business. With respect to escrow deposits and payments that the
          Seller
          is entitled to collect, all such payments are in the possession of, or
          under the
          control of, the Seller, and there exist no deficiencies in connection therewith
          for which customary arrangements for repayment thereof have not been made.
          All
          escrow payments have been collected and are being maintained in full compliance
          with applicable state and federal law and the provisions of the related
          Mortgage
          Note and Mortgage. As to any Mortgage Loan that is the subject of an escrow,
          escrow of funds is not prohibited by applicable law and has been established
          in
          an amount sufficient to pay for every escrowed item that remains unpaid
          and has
          been assessed but is not yet due and payable. No escrow deposits or other
          charges or payments due under the Mortgage Note have been capitalized under
          any
          Mortgage or the related Mortgage Note. All Mortgage Interest Rate adjustments
          have been made in strict compliance with state and federal law and the
          terms of
          the related Mortgage Note. Any interest required to be paid pursuant to
          state
          and local law has been properly paid and credited; 

         

        (fff)  No
          Mortgage Loan is a Convertible Mortgage Loan;

         

        (ggg)  All
          predatory and abusive lending laws applicable to the origination and servicing
          of mortgage loans of a type similar to the Mortgage Loans have been complied
          with and the consummation of the transactions contemplated hereby will
          not
          involve the violation of any such laws, and the Seller shall maintain in
          its
          possession, available for the inspection of the Purchaser or its designee,
          and
          shall deliver to the Purchaser or its designee, upon ten (10) Business
          Days’
request, evidence of compliance with such requirements;

         

        (hhh)  The
          Mortgage Loan was underwritten in accordance with the underwriting guidelines
          of
          the Seller in effect at the time the Mortgage Loan was originated, and
          the
          Mortgage Note and Mortgage are on forms acceptable to Fannie Mae and Freddie
          Mac;

         

        (iii)  No
          Mortgage Loan was made in connection with the construction or rehabilitation
          of
          a Mortgaged Property;

         

        (jjj)  Each
          original Mortgage was recorded and all subsequent assignments of the original
          Mortgage (other than the assignment to the Purchaser) have been recorded,
          or are
          in the process of being recorded, in the appropriate jurisdictions wherein
          such
          recordation is necessary to perfect the lien thereof as against creditors
          of the
          Seller. As to any Mortgage Loan which is not a MERS Mortgage Loan, the
          Assignment of Mortgage is in recordable form and is acceptable for recording
          under the laws of the jurisdiction in which the Mortgaged Property is
          located;

         

        (kkk)  Any
          principal advances made on behalf of 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 reflected on the Mortgage Loan
          Schedule.
          The lien of the Mortgage securing the consolidated principal amount is
          expressly
          insured as having (A) First Lien priority with respect to each Mortgage
          Loan
          which is indicated by the Seller to be a First Lien (as reflected on the
          Mortgage Loan Schedule), or (B) second lien priority with respect to each
          Mortgage Loan which is indicated by the Seller to be a Second Lien Mortgage
          Loan
          (as reflected on the Mortgage Loan Schedule), in either case, by a title
          insurance policy, an endorsement to the policy insuring the mortgagee’s
          consolidated interest or by other title evidence acceptable to Fannie Mae
          and
          Freddie Mac. The consolidated principal amount does not exceed the original
          principal amount of the Mortgage Loan;

         

        (lll)  Interest
          on each Mortgage Loan is calculated on the basis of a 360-day year consisting
          of
          twelve 30-day months;

         

        (mmm)  With
          respect to each Mortgage Loan, the Seller has fully and accurately furnished
          complete information on the related borrower credit files to Equifax, Experian
          and Trans Union Credit Information Company, in accordance with the Fair
          Credit
          Reporting Act and its implementing regulations, on a monthly basis and
          the
          Seller for each Loan will furnish, in accordance with the Fair Credit Reporting
          Act and its implementing regulations, accurate and complete information
          on its
          borrower credit files to Equifax, Experian, and Trans Union Credit Information
          Company, on a monthly basis;

         

        (nnn)  The
          debt-to-income ratio of the related Mortgagor was not greater than 55%
          at the
          origination of the related Mortgage Loan;

         

        (ooo)  No
          Mortgagor was required to purchase any credit life, disability, accident
          or
          health insurance product or debt cancellation agreement as a condition
          of
          obtaining the extension of credit. No Mortgagor obtained a prepaid single
          premium credit life, disability, accident or health insurance policy in
          connection with the origination of the Mortgage Loan. No proceeds from
          any
          Mortgage Loan were used to purchase single premium credit insurance policies
          or
          debt cancellation agreements as part of the origination of, or as a condition
          to
          closing, such Mortgage Loan;

         

        (ppp)  The
          Mortgage Loans were not selected from the outstanding one to four-family
          mortgage loans in the Seller’s portfolio at the related Closing Date as to which
          the representations and warranties set forth in this Agreement could be
          made in
          a manner so as to affect adversely the interests of the Purchaser;

         

        (qqq)  The
          Mortgage Loan complies with all applicable consumer credit statutes and
          regulations, including, without limitation, the respective Uniform Consumer
          Credit Code laws in effect in Colorado, Idaho, Indiana, Iowa, Kansas, Maine,
          Oklahoma, South Carolina, Utah and Wyoming, has been originated by a properly
          licensed entity, and in all other respects, complies with all of the material
          requirements of any such applicable laws;

         

        (rrr)  Prepayment
          penalty information set forth in the Mortgage Loan Schedule is complete,
          true
          and correct in all material respects and each prepayment penalty is permissible,
          enforceable and collectable under applicable federal and state law;

         

        (sss)  The
          Mortgage Loan was not prepaid in full prior to the Closing Date and the
          Seller
          has not received notification from a Mortgagor that a prepayment in full
          shall
          be made after the Closing Date;

         

        (ttt)  
          As of
          the date of origination, no portion of the Mortgaged Property was used
          for
          commercial purposes and, since the date of origination, no portion of the
          Mortgaged Property has been used for commercial purposes, except as permitted
          under the Underwriting Standards. No Mortgage Loan is secured by commercial
          property;

         

        (uuu)  With
          respect to any Mortgage Loan that contains a provision permitting imposition
          of
          a Prepayment Charge: (i) prior to the Mortgage Loan’s origination, the borrower
          agreed to such Prepayment Charge in exchange for a monetary benefit, including
          but not limited to a rate or fee reduction, (ii) prior to the Mortgage
          Loan’s
          origination, the borrower was offered the option of obtaining a mortgage
          loan
          that did not require payment of such a premium, (iii) the prepayment premium
          is
          disclosed to the borrower in the Mortgage Loan documents pursuant to applicable
          state and federal law, (iv) for Mortgage Loans originated on or after September
          1, 2004, the duration of the prepayment period shall not exceed three (3)
          years
          from the date of the note, unless the Mortgage Loan was modified to reduce
          the
          prepayment period to no more than three years from the date of the note
          and the
          borrower was notified in writing of such reduction in prepayment period,
          and (v)
          notwithstanding any state or federal law to the contrary, the Servicer
          shall not
          impose such prepayment premium in any instance when the mortgage debt is
          accelerated as the result of the borrower’s default in making the Mortgage Loan
          payments;

         

        (vvv)  The
          Seller’s parent has adopted an Anti-Money Laundering and Terrorist-Finance
          Policy (the “Policy”) that requires the Seller to comply with applicable
          anti-money laundering laws and regulations, including without limitation
          the USA
          Patriot Act of 2001 (collectively, the “Anti-Money Laundering Laws”); the Seller
          has established an anti-money laundering compliance program as required
          by the
          Policy, has procedure in place to conduct due diligence, based upon the
          Seller’s
          risk assessment of the applicable Mortgagor, in connection with the origination
          of each Mortgage Loan for purposes of the Policy, including the verification
          of
          the identity of the applicable Mortgagor and, where required, the origin
          of the
          assets used by the said Mortgagor to purchase the property in question
          and has
          procedures, including record keeping procedures, in place to comply with
          Section
          326 of the USA Patriot Act of 2001 and its implementing regulation 31 CFR
          103.121 regarding the identity of the applicable Mortgagor. On or before
          the
          closing of any Mortgage Loan, the Seller conducts or causes to be conducted
          an
          OFAC screening of the Mortgagor to comply with regulations of the Office
          of
          Foreign Assets Control (“OFAC”) of the United States Department of the Treasury
          implementing certain United States laws and the executive orders issued
          under
          the authority of such laws; and thereafter Seller periodically re-screens
          or
          causes the re-screening of Mortgagors when the OFAC sanctioned parties
          lists are
          updated;

         

        (www)  No
          Mortgage Loan is secured by real property located in the state of Georgia
          unless
          (x) such Mortgage Loan was originated prior to October 1, 2002 or after
          March 6,
          2003, or (y) the property securing the Mortgage Loan is not, nor will be,
          occupied by the Mortgagor as the Mortgagor’s principal dwelling. No Mortgage
          Loan is a “High Cost Home Loan” as defined in the Georgia Fair Lending Act, as
          amended (the “Georgia Act”). Each Mortgage Loan that is a “Home Loan” under the
          Georgia Act complies with all applicable provisions of the Georgia
          Act;

         

        (xxx)  No
          Mortgage Loan is secured by manufactured housing;

         

        (yyy)  No
          Mortgage Loan (a) is secured by property located in the State of New York;
          (b)
          had an unpaid principal balance at origination of $300,000 or less, and
          (c) has
          an application date on or after April 1, 2003, the terms of which Mortgage
          Loan
          equal or exceed either the APR or the points and fees threshold for “high-cost
          home loans”, as defined in Section 6-1 of the New York State Banking
          Law;

         

        (zzz)  All
          points and fees related to each Mortgage Loan were disclosed in writing
          to the
          related Mortgagor in accordance with applicable state and federal law and
          regulation. Except in the case of a Mortgage Loan in an original principal
          amount of less than $60,000 which would have resulted in an unprofitable
          origination, no related Mortgagor was charged “points and fees” (whether or not
          financed) in an amount greater than 5% of the principal amount of such
          loan,
          such 5% limitation is calculated in accordance with Fannie Mae’s anti-predatory
          lending requirements as set forth in the Fannie Mae Selling Guide. All
          fees and
          charges (including finance charges) and whether or not financed, assessed,
          collected or to be collected in connection with the origination and servicing
          of
          each such Mortgage Loan were disclosed in writing to the related Mortgagor
          in
          accordance with applicable state and federal law and regulation;

         

        (aaaa)  The
          Seller will transmit full-file credit reporting data for each Mortgage
          Loan
          pursuant to Fannie Mae Guide Announcement 95-19 and for each Mortgage Loan,
          Seller agrees it shall report one of the following statuses each month
          as
          follows: new origination, current, delinquent (30-, 60-, 90-days, etc.),
          foreclosed, or charged-off;

         

        (bbbb)  With
          respect to each MERS Mortgage Loan, a MIN has been assigned by MERS and
          such MIN
          is accurately provided on the related Mortgage Loan Schedule. The related
          assignment of Mortgage to MERS has been duly and properly recorded or submitted
          for recording;

         

        (cccc)  With
          respect to each MERS Mortgage Loan, the Seller has not received any notice
          of
          liens or legal actions with respect to such Mortgage Loan and no such notices
          have been electronically posted by MERS

         

        (dddd)  No
          Mortgage Loan is a “High-Cost” loan as defined under the New York Banking Law
          Section 6-1, as amended effective as of April 1, 2003;

         

        (eeee)  No
          Mortgage Loan is a “High Cost Home Loan” as defined in the Arkansas Home Loan
          Protection Act effective July 16, 2003, as amended (Act 1340 or
          2003);

         

        (ffff)  No
          Mortgage Loan is a “High Cost Home Loan” as defined in the Kentucky high-cost
          loan statute effective June 24, 2003, as amended (Ky. Rev. Stat. Section
          360.100);

         

        (gggg)  No
          Mortgage Loan is a “high cost home,” “covered” (excluding home loans defined as
“covered home loans” in the New Jersey Home Ownership Security Act of 2002 that
          were originated between November 26, 2003 and July 7, 2004), “high risk home” or
“predatory” loan under any other applicable state, federal or local law (or a
          similarly classified loan using different terminology under a law imposing
          heightened regulatory scrutiny or additional legal liability for residential
          mortgage loans having high interest rates, points and/or fees);

         

        (hhhh)  No
          Mortgage Loan is a “High-Cost Home Loan” as defined in the New Mexico Home Loan
          Protection Act effective January 1, 2004, as amended (N.M. Stat. Ann. §§
58-21A-1 et seq.);

         

        (iiii)  No
          Mortgage Loan is a “High-Risk Home Loan” as defined in the Illinois High-Risk
          Home Loan Act effective January 1, 2004, as amended (815 Ill. Comp. Stat.
          137/1
          et seq.); 

         

        (jjjj)  No
          Mortgage Loan is a “High-Cost Home Mortgage Loan” as defined in the
          Massachusetts Predatory Home Loan Practices Act, effective November 7,
          2004
          (Mass. Ann. Laws Ch. 183C); 

         

        (kkkk)  No
          Mortgagor agreed to submit to arbitration to resolve any dispute arising
          out of
          or relating in any way to the Mortgage Loan transaction.

         

        (llll)  With
          respect to each Mortgage Loan that is secured in whole or in part by the
          interest of the mortgagor as a lessee under a ground lease of the related
          Mortgaged Property (a “Ground Lease”) and not by a fee interest in such
          mortgaged property:

         

        (i)  The
          mortgagor is the owner of a valid and subsisting interest as tenant under
          the
          Ground Lease;

         

        (ii)  The
          Ground Lease is in full force and effect;

         

        (iii)  The
          mortgagor is not in default under any of the terms thereof and no event
          which,
          with the passage of time or the giving of notice and the expiration of
          any grace
          or cure period or both, would constitute an event of default
          thereunder;

         

        (iv)  The
          lessee under the Ground Lease us not in default under any of the terms
          or
          provisions thereof on the part of the lessee to be observed or
          performed;

         

        (v)  The
          term
          of the Ground Lease exceeds the maturity date of the related Mortgage Loan
          by at
          least ten (10) years;

         

        (vi)  The
          Ground Lease or a memorandum thereof has been recorded and by its terms
          permits
          the leasehold estate to be mortgaged. The Ground Lease grants any leasehold
          mortgage protection necessary to protect the security of a leasehold
          mortgage;

         

        (vii)  The
          execution, delivery and performance of the Mortgage do not require the
          consent
          (other than those consents which have been obtained and are in full force
          and
          effect) under, and will not contravene any provision of or cause a default
          under, the Ground Lease; and

         

        (viii)  The
          Ground Lease provides that the leasehold can be transferred, mortgaged
          and
          sublet an unlimited number of times either without restriction or on payment
          of
          a reasonable fee and delivery of reasonable documentation to the
          lessor.

         

        SECTION
          4.03  Repurchase;
          Substitution.

         

        It
          is
          understood and agreed that the representations and warranties set forth
          in
          Sections 3.01 and 3.02 shall survive the sale of the Mortgage Loans and
          delivery
          of the Mortgage File to the Purchaser, or its designee, and shall inure
          to the
          benefit of the Purchaser, notwithstanding any restrictive or qualified
          endorsement on any Mortgage Note or Assignment of Mortgage or the examination,
          or lack of examination, of any Mortgage Loan Document. Upon discovery by
          the
          Seller or the Purchaser of a breach of any of the foregoing representations
          and
          warranties which materially and adversely affects the value of the Mortgage
          Loans or the interest of the Purchaser in any Mortgage Loan, the party
          discovering such breach shall give prompt written notice to the others.
          The
          Seller shall have a period of ninety (90) days from the earlier of its
          discovery
          or its receipt of notice of any such breach within which to correct or
          cure such
          breach. The Seller hereby covenants and agrees that if any such breach
          is not
          corrected or cured within such ninety (90) day period, the Seller shall,
          at the
          Purchaser’s option, either repurchase such Mortgage Loan at the Repurchase Price
          plus the reasonable and customary out-of-pocket expenses incurred by the
          Purchaser in transferring such Mortgage Loan or substitute a mortgage loan
          for
          the Defective Mortgage Loan as provided below. In the event that any such
          breach
          shall involve any representation or warranty set forth in Section 3.01,
          and such
          breach is not cured within ninety (90) of the earlier of either discovery
          by or
          notice to the Seller of such breach, all affected Mortgage Loans shall,
          at the
          option of the Purchaser, be repurchased by the Seller at the Repurchase
          Price.
          Any such repurchase shall be accomplished by deposit in the Custodial Account
          of
          the amount of the Repurchase Price in no event later than five (5) Business
          Days
          after demand therefor.

         

        It
          is
          hereby understood, notwithstanding anything to the contrary contained herein,
          that a breach of any predatory lending representations will be deemed to
          materially and adversely affect the value of the related Mortgage
          Loan.

         

        If
          pursuant to the foregoing provisions the Seller repurchases a Mortgage
          Loan that
          is a MERS Mortgage Loan, the Seller shall either (i) cause MERS to execute
          and
          deliver an assignment of the Mortgage in recordable form to transfer the
          Mortgage from MERS to the Seller and shall cause such Mortgage to be removed
          from registration on the MERS® System in accordance with MERS’ rules and
          regulations or (ii) cause MERS to designate on the MERS® System the Seller as
          the beneficial holder of such Mortgage Loan.

         

        If
          the
          Seller is required to repurchase any Mortgage Loan pursuant to this Section
          3.03
          as a result of a breach of any of the representations and warranties set
          forth
          in Section 3.02, the Seller may, with the Purchaser’s prior consent, which
          consent shall not be unreasonably withheld, within sixty (60) days from
          the
          related Closing Date, remove such defective Mortgage Loan from the terms
          of this
          Agreement and substitute another mortgage loan for such defective Mortgage
          Loan,
          in lieu of repurchasing such defective Mortgage Loan. Any substitute Mortgage
          Loan shall (a) have a principal balance at the time of substitution not
          in
          excess of the principal balance of the defective Mortgage Loan (the amount
          of
          any difference, plus one month’s interest thereon at the Mortgage Interest Rate
          borne by the defective Mortgage Loan, being paid by the Seller and deemed
          to be
          a Principal Prepayment to be deposited by the Seller in the Custodial Account),
          (b) have a Mortgage Interest Rate not less than, and not more than one
          percentage point greater than, the Mortgage Interest Rate of the removed
          Mortgage Loan, (c) have a remaining term to stated maturity not later than,
          and
          not more than one year less than, the remaining term to stated maturity
          of the
          removed Mortgage Loan, (d) have a Loan-to-Value Ratio at origination no
          greater
          than that of the removed Mortgage Loan, (e) with respect to any second
          lien
          Mortgage Loan, have an Equity Loan-to-Value Ratio at origination no greater
          than
          that of the removed Mortgage Loan, (f) have the same lien priority as that
          of
          the removed Mortgage Loan and (g) be, in the reasonable determination of
          the
          Purchaser, in material compliance with the representations and warranties
          contained in this Agreement and described in Section 3.02 as of the date
          of
          substitution.

         

        The
          Seller shall amend the related Mortgage Loan Schedule to reflect the withdrawal
          of the removed Mortgage Loan from this Agreement and the substitution of
          such
          substitute Mortgage Loan therefor. Upon such amendment, the Purchaser shall
          review the Mortgage File delivered to it relating to the substitute Mortgage
          Loan. The Monthly Payment on a substitute Mortgage Loan due on the Due
          Date in
          the month of substitution shall be the property of the Seller and the Monthly
          Payment on the Defective Mortgage Loan for which the substitution is made
          due on
          such date shall be the property of the Purchaser.

         

        It
          is
          understood and agreed that the obligation of the Seller set forth in this
          Section 3.03 to cure, repurchase or substitute for a defective Mortgage
          Loan,
          and to indemnify Purchaser pursuant to Section 7.01, constitutes the sole
          remedies of the Purchaser respecting a breach of the foregoing representations
          and warranties. If the Seller fails to repurchase or substitute for a defective
          Mortgage Loan in accordance with this Section 3.03, or fails to cure a
          defective
          Mortgage Loan to Purchaser’s reasonable satisfaction in accordance with this
          Section 3.03, or to indemnify Purchaser pursuant to Section 7.01, that
          failure
          shall, upon compliance by the Purchaser with the next to the last paragraph
          of
          this Section 3.03, be an Event of Default and the Purchaser shall be entitled
          to
          pursue all available remedies. No provision of this paragraph shall affect
          the
          rights of the Purchaser to terminate this Agreement for cause, as set forth
          in
          Sections 8.01 and 9.01.

         

        Any
          cause
          of action against the Seller relating to or arising out of the breach of
          any
          representations and warranties made in Sections 3.01 and 3.02 shall accrue
          as to
          any Mortgage Loan upon (i) the earlier of discovery of such breach by the
          Seller
          or notice thereof by the Purchaser to the Seller, (ii) failure by the Seller
          to
          cure such breach or repurchase such Mortgage Loan as specified above, and
          (iii)
          demand upon the Seller by the Purchaser for compliance with this
          Agreement.

         

        In
          the
          event that any Mortgage Loan is held by a REMIC, notwithstanding any contrary
          provision of this Agreement, with respect to any Mortgage Loan that is
          not in
          default or as to which no default is imminent, Purchaser may, in connection
          with
          any repurchase or substitution of a Defective Mortgage Loan pursuant to
          this
          Section 3.03, require that the Seller deliver, at the Seller’s expense, an
          Opinion of Counsel to the effect that such repurchase or substitution will
          not
          (i) result in the imposition of taxes on “prohibited transactions” of such REMIC
          (as defined in Section 860F of the Code) or otherwise subject the REMIC
          to tax,
          or (ii) cause the REMIC to fail to qualify as a REMIC at any time.

         

        SECTION
          4.04  Purchase
          Price Protection.

         

        In
          the
          event that (i) the principal due on any Mortgage Loan is prepaid in full
          within
          two months of the last day of the month of the related Cut-off Date, the
          Seller
          shall pay to the Purchaser, within five (5) Business Days of the Purchaser
          notifying the Seller of such prepayment, an amount equal to the product
          of (A)
          the amount of such prepayment, times (B) the excess, if any, of the related
          Purchase Price Percentage, as set forth on the related Trade Confirmation,
          over
          100% or (ii) either of the first two scheduled monthly payments due to
          the
          Purchaser following the related Cut-off Date on any Mortgage Loan is not
          made by
          the related mortgagor by the last day of the month in which it is or was
          due,
          such Mortgage Loan shall be repurchased by the Seller at the related Purchase
          Price Percentage, times the aggregate principal balance of such Mortgage
          Loan as
          of the date of repurchase, together with accrued interest.

         

         

        ARTICLE
          V

        ADMINISTRATION
          AND SERVICING OF THE MORTGAGE LOANS

         

        SECTION
          5.01  The
          Seller to Act as Servicer.

         

        The
          Seller, as independent contract servicer, shall service and administer
          the
          Mortgage Loans in accordance with this Agreement and with Accepted Servicing
          Practices, and shall have full power and authority, acting alone or through
          subservicers or agents, to do or cause to be done any and all things in
          connection with such servicing and administration which the Seller may
          deem
          necessary or desirable and consistent with the terms of this Agreement
          and with
          Accepted Servicing Practices. The Seller shall service and administer the
          Mortgage Loans through the exercise of the same care that it customarily
          employs
          for its own account. The Seller may perform its servicing responsibilities
          through agents or independent contractors, but shall not thereby be released
          from any of its responsibilities hereunder. Notwithstanding anything to
          the
          contrary, the Seller may delegate any of its duties under this Agreement
          to one
          or more of its affiliates without regard to any of the requirements of
          this
          Section; provided,
          however,
          that
          the Seller shall not be released from any of its responsibilities hereunder
          by
          virtue of such delegation.

         

        Except
          as
          set forth in this Agreement, the Seller shall service the Mortgage Loans
          in
          compliance with the servicing provisions of the Fannie Mae Guides (special
          servicing option), which include, but are not limited to, provisions regarding
          the liquidation of Mortgage Loans, the collection of Mortgage Loan payments,
          the
          payment of taxes, insurance and other charges, the maintenance of hazard
          insurance with a Qualified Insurer, the maintenance of mortgage impairment
          insurance, the maintenance of fidelity bond and errors and omissions insurance,
          inspections, the restoration of Mortgaged Property, the maintenance of
          Primary
          Mortgage Insurance Policies, insurance claims, the title, management of
          REO
          Property, permitted withdrawals with respect to REO Property, liquidation
          reports, and reports of foreclosures and abandonments of Mortgaged Property,
          the
          transfer of Mortgaged Property, the release of Mortgage Files, annual
          statements, and examination of records and facilities. In the event of
          any
          conflict, inconsistency or discrepancy between any of the servicing provisions
          of this Agreement and any of the servicing provisions of the Fannie Mae
          Guides,
          the provisions of this Agreement shall control and be binding upon the
          Purchaser
          and the Seller.

         

        Consistent
          with the terms of this Agreement, the Seller may waive, modify or vary
          any term
          of any Mortgage Loan or consent to the postponement of any such term or
          in any
          manner grant indulgence to any Mortgagor if in the Seller’s reasonable and
          prudent determination such waiver, modification, postponement or indulgence
          is
          not materially adverse to the Purchaser, provided,
          however,
          that
          unless the Mortgagor is in default with respect to the Mortgage Loan, or
          such
          default is, in the judgment of the Seller, reasonably foreseeable, or the
          Seller
          has obtained the prior written consent of the Purchaser, the Seller shall
          not
          permit any modification with respect to any Mortgage Loan that would change
          the
          Mortgage Interest Rate, forgive the payment of any principal or interest,
          reduce
          or increase the outstanding principal balance (except for actual payments
          of
          principal), make any future advances or extend the final maturity date,
          as the
          case may be, with respect to such Mortgage Loan. In the event of any such
          modification that permits the deferral of interest or principal payments
          on any
          Mortgage Loan, the Seller shall, on the Business Day immediately preceding
          the
          Remittance Date in any month in which any such principal or interest payment
          has
          been deferred, deposit in the Custodial Account from its own funds, in
          accordance with Section 4.04, the difference between (a) the otherwise
          scheduled
          Monthly Payment and (b) the amount paid by the Mortgagor. The Seller shall
          be
          entitled to reimbursement for such advances to the same extent as for all
          other
          advances pursuant to Section 4.05. Without limiting the generality of the
          foregoing, the Seller shall continue, and is hereby authorized and empowered
          by
          the Purchaser when the Seller believes it appropriate and reasonable in
          its best
          judgment, to prepare, execute and deliver, all instruments of satisfaction
          or
          cancellation, or of partial or full release, discharge and all other comparable
          instruments, with respect to the Mortgage Loans and with respect to the
          Mortgaged 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
          Purchaser pursuant to the provisions of Section 4.13. Notwithstanding anything
          herein to the contrary, the Seller may not enter into a forbearance agreement
          or
          similar arrangement with respect to any Mortgage Loan which runs more than
          180
          days after the first delinquent Due Date without the prior consent of the
          Purchaser. Any such agreement shall be approved by any applicable holder
          of a
          Primary Mortgage Insurance Policy, if required.

         

        The
          Seller is authorized and empowered by the Purchaser, in its own name, when
          the
          Seller believes it appropriate in its reasonable 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
          Purchaser, 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 Purchaser and its successors and
          assigns.

         

        The
          Seller shall accurately and fully report its borrower credit files related
          to
          the Mortgage Loans to Equifax, Transunion and Experian in a timely
          manner.

         

        SECTION
          5.02  Collection
          of Mortgage Loan Payments.

         

        Continuously
          from the date hereof until the date each Mortgage Loan ceases to be serviced
          subject to this Agreement, the Seller will proceed diligently to collect
          all
          payments due under each Mortgage Loan when the same shall become due and
          payable
          and shall, to the extent such procedures shall be consistent with this
          Agreement, Accepted Servicing Practices, and the terms and provisions of
          related
          Primary Mortgage Insurance Policy, follow such collection procedures as
          it
          follows with respect to mortgage loans comparable to the Mortgage Loans
          and held
          for its own account. Further, the Seller will take special care in ascertaining
          and estimating annual escrow payments, and all other charges that, as provided
          in the Mortgage, will become due and payable, so that the installments
          payable
          by the Mortgagors will be sufficient to pay such charges as and when they
          become
          due and payable.

         

        SECTION
          5.03  Realization
          Upon Defaulted Mortgage Loans.

         

        The
          Seller shall use commercially reasonable efforts, consistent with the procedures
          that the Seller would use in servicing loans for its own account, Accepted
          Servicing Practices, any Primary Mortgage Insurance and the best interest
          of
          Purchaser, to foreclose upon or otherwise comparably convert the ownership
          of
          properties securing such of the Mortgage Loans as come into and continue
          in
          default and as to which no satisfactory arrangements can be made for collection
          of delinquent payments pursuant to Section 4.01. Foreclosure or comparable
          proceedings shall be initiated pursuant to Fannie Mae guidelines and applicable
          state law with respect to Mortgaged Properties for which no satisfactory
          arrangements can be made for collection of delinquent payments. The Seller
          shall
          use its best efforts to realize upon defaulted Mortgage Loans in such manner
          as
          will maximize the receipt of principal and interest by the Purchaser, taking
          into account, among other things, the timing of foreclosure proceedings.
          The
          foregoing is subject to the provisions that, in any case in which the Mortgaged
          Property shall have suffered damage, the Seller shall not be required to
          expend
          its own funds toward the restoration of such property unless it shall determine
          in its discretion (i) that such restoration will increase the proceeds
          of
          liquidation of the related Mortgage Loan to the Purchaser after reimbursement
          to
          itself for such expenses, and (ii) that such expenses will be recoverable
          by the
          Seller through Insurance Proceeds or Liquidation Proceeds from the related
          Mortgaged Property, as contemplated in Section 4.05. The Seller shall notify
          the
          Purchaser in writing (which may be by electronic mail) of the commencement
          of
          foreclosure proceedings. The Seller shall be responsible for all costs
          and
          expenses incurred by it in any such proceedings or functions; provided,
          however,
          that it
          shall be entitled to reimbursement thereof from the related property, as
          contemplated in Section 4.05. Notwithstanding anything to the contrary
          contained
          herein, in connection with a foreclosure or acceptance of a deed in lieu
          of
          foreclosure, in the event the Seller has reasonable cause to believe that
          a
          Mortgaged Property is contaminated by hazardous or toxic substances or
          wastes,
          or if the Purchaser otherwise requests an environmental inspection or review
          of
          such Mortgaged Property, such an inspection or review is to be conducted
          by a
          qualified inspector at the Purchaser’s expense. Upon completion of the
          inspection, the Seller shall promptly provide the Purchaser with a written
          report of the environmental inspection. After reviewing the environmental
          inspection report, the Purchaser shall determine how the Seller shall proceed
          with respect to the Mortgaged Property.

         

        In
          the
          event that a Mortgage Loan becomes part of a REMIC, and becomes REO Property,
          such property shall be disposed of by the Seller, with the consent of the
          Purchaser as required pursuant to this Agreement, within three (3) years
          after
          becoming an REO Property, unless the Seller provides to the trustee under
          such
          REMIC an opinion of counsel to the effect that the holding of such REO
          Property
          subsequent to three years after its becoming REO Property, will not result
          in
          the imposition of taxes on “prohibited transactions” as defined in Section 860F
          of the Code, or cause the transaction to fail to qualify as a REMIC at
          any time
          that certificates are outstanding. The Seller shall manage, conserve, protect
          and operate each such REO Property for the certificateholders solely for
          the
          purpose of its prompt disposition and sale in a manner which does not cause
          such
          property to fail to qualify as “foreclosure property” within the meaning of
          Section 860G(a)(8) of the Code, or any “net income from foreclosure property”
which is subject to taxation under the REMIC provisions of the Code. Pursuant
          to
          its efforts to sell such property, the Seller shall either itself or through
          an
          agent selected by the Seller, protect and conserve such property in the
          same
          manner and to such an extent as is customary in the locality where such
          property
          is located. Additionally, the Seller shall provide the Purchaser or any
          master
          servicer with information sufficient to perform the tax withholding and
          reporting related to Sections 1445 and 6050J of the Code.

         

        SECTION
          5.04  Establishment
          of Custodial Accounts; Deposits in Custodial Accounts.

         

        The
          Seller shall segregate and hold all funds collected and received pursuant
          to
          each Mortgage Loan separate and apart from any of its own funds and general
          assets and shall establish and maintain one or more Custodial Accounts.
          Each
          Custodial Account shall be an Eligible Account. Funds deposited in a Custodial
          Account may be drawn on in accordance with Section 4.05. The creation of
          any
          Custodial Account shall be evidenced by a letter agreement in the form
          shown in
Exhibit
          B
          hereto.
          The original of such letter agreement shall be furnished to the Purchaser
          on the
          initial Closing Date, and upon the request of any subsequent
          purchaser.

         

        The
          Seller shall deposit in the Custodial Account on a daily basis, within
          two (2)
          Business Days of receipt thereof, and retain therein the following payments
          and
          collections received or made by it subsequent to the Cut-off Date, or received
          by it prior to the Cut-off Date but allocable to a period subsequent thereto,
          other than in respect of principal and interest on the Mortgage Loans due
          on or
          before the Cut-off Date:

         

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

         

        (ii)  all
          payments on account of interest on the Mortgage Loans adjusted to the Mortgage
          Loan Remittance Rate;

         

        (iii)  all
          Liquidation Proceeds;

         

        (iv)  any
          amounts required to be deposited by the Seller in connection with any REO
          Property pursuant to Section 4.13;

         

        (v)  all
          Insurance Proceeds including amounts required to be deposited pursuant
          to
          Sections 4.08, 4.10 and 4.11, other than proceeds to be held in the Escrow
          Account and applied to the restoration or repair of the Mortgaged Property
          or
          released to the Mortgagor in accordance with Accepted Servicing Practices,
          the
          loan documents or applicable law;

         

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

         

        (vii)  any
          Monthly Advances;

         

        (viii)  Compensating
          Interest, if any, for the month of distribution. Such deposit shall be
          made from
          the Seller’s own funds, without reimbursement therefor;

         

        (ix)  all
          proceeds of any Mortgage Loan repurchased in accordance with Sections
          3.03;

         

        (x)  any
          amounts required to be deposited by the Seller pursuant to Section 4.11
          in
          connection with the deductible clause in any blanket hazard insurance policy,
          such deposit shall be made from the Seller’s own funds, without reimbursement
          therefor; and

         

        (xi)  any
          amounts required to be deposited in the Custodial Account pursuant to Section
          4.01 or Section 6.02.

         

        The
          foregoing requirements for deposit in the Custodial 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, assumption fees
          and
          other ancillary fees, to the extent permitted by Section 6.01, need not
          be
          deposited by the Seller in the Custodial Account.

         

        The
          Seller may invest the funds in the Custodial Account in Eligible Investments
          designated in the name of the Seller for the benefit of the Seller, which
          shall
          mature not later than the Business Day next preceding the Remittance Date
          next
          following the date of such investment (except that (A) any investment in
          the
          Eligible Institution with which the Custodial Account is maintained may
          mature
          on such Remittance Date and (B) any other investment may mature on such
          Remittance Date if the Seller shall advance funds on such Remittance Date,
          pending receipt thereof to the extent necessary to make distributions to
          the
          Purchaser) and shall not be sold or disposed of prior to maturity.
          Notwithstanding anything to the contrary herein and above, all income and
          gain
          realized from any such investment shall be for the benefit of the Seller
          and
          shall be subject to withdrawal by the Seller from the Custodial Account
          pursuant
          to Section 4.05(iv). The amount of any losses incurred in respect of any
          such
          investments shall be deposited in the Custodial Account by the Seller out
          of its
          own funds immediately as realized.

         

        SECTION
          5.05  Permitted
          Withdrawals From the Custodial Account.

         

        The
          Seller may, from time to time, withdraw from the Custodial Account for
          the
          following purposes:

         

        (i)  to
          make
          payments to the Purchaser in the amounts and in the manner provided for
          in
          Section 5.01;

         

        (ii)  to
          reimburse itself for Monthly Advances, the Seller’s right to reimburse itself
          pursuant to this subclause (ii) being limited to amounts received on the
          related
          Mortgage Loan which represent late collections (net of the related Servicing
          Fee) of principal and/or interest respecting which any such advance was
          made, it
          being understood that, in the case of such reimbursement, the Seller’s right
          thereto shall be prior to the rights of the Purchaser, except that, where
          the
          Seller is required to repurchase a Mortgage Loan, pursuant to Section 3.03,
          the
          Seller’s right to such reimbursement shall be subsequent to the payment to the
          Purchaser of the Repurchase Price pursuant to such Section and all other
          amounts
          required to be paid to the Purchaser with respect to such Mortgage
          Loan;

         

        (iii)  to
          reimburse itself for unreimbursed Servicing Advances and any unpaid Servicing
          Fees, the Seller’s right to reimburse itself pursuant to this subclause (iii)
          with respect to any Mortgage Loan being limited to related proceeds from
          Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds and REO
          Disposition Proceeds;

         

        (iv)  to
          pay to
          itself as part of its servicing compensation: (a) any interest earned on
          funds
          or any investment earnings in the Custodial Account net of any losses on
          such
          investments (all such amounts to be withdrawn monthly not later than each
          Remittance Date), and (b) to the extent not otherwise retained, the Servicing
          Fee from that portion of any payment or recovery as to interest with respect
          to
          a particular Mortgage Loan;

         

        (v)  to
          pay to
          itself with respect to each Mortgage Loan that has been repurchased pursuant
          to
          Section 3.03 all amounts received thereon and not distributed as of the
          date on
          which the related Repurchase Price is determined;

         

        (vi)  to
          reimburse itself for unreimbursed Monthly Advances and Servicing Advances
          to the
          extent not fully reimbursed pursuant to Section 4.05(ii) or (iii)
          above;

         

        (vii)  to
          transfer funds to another Eligible Account in accordance with Section 4.09
          hereof;

         

        (viii)  to
          remove
          funds inadvertently placed in the Custodial Account by the Seller or for
          which
          amounts previously deposited are returned unpaid by the related Mortgagor’s
          banking institution; and

         

        (ix)  to
          clear
          and terminate the Custodial Account upon the termination of this
          Agreement.

         

        SECTION
          5.06  Establishment
          of Escrow Accounts; Deposits in Accounts.

         

        The
          Seller shall segregate and hold all funds collected and received pursuant
          to
          each Mortgage Loan which constitute Escrow Payments separate and apart
          from any
          of its own funds and general assets and shall establish and maintain one
          or more
          Escrow Accounts. Each Escrow Account shall be an Eligible Account. Funds
          deposited in the Escrow Account may be drawn on by the Seller in accordance
          with
          Section 4.07. The creation of any Escrow Account shall be evidenced by
          a letter
          agreement in the form shown in Exhibit
          C.
          The
          original of such letter agreement shall be furnished to the Purchaser on
          the
          initial Closing Date, and upon request to any subsequent purchaser.

         

        The
          Seller shall deposit in the Escrow Account or Accounts on a daily basis,
          within
          two (2) Business Days of receipt thereof, and retain therein:

         

        (i)  all
          Escrow Payments collected on account of the Mortgage Loans, for the purpose
          of
          effecting timely payment of any such items as required under the terms
          of this
          Agreement;

         

        (ii)  all
          Insurance Proceeds which are to be applied to the restoration or repair
          of any
          Mortgaged Property; and

         

        (iii)  all
          Servicing Advances for Mortgagors whose Escrow Payments are insufficient
          to
          cover escrow disbursements.

         

        The
          Seller shall make withdrawals from the Escrow Account only to effect such
          payments as are required under this Agreement, and for such other purposes
          as
          shall be as set forth or in accordance with Section 4.07. The Seller shall
          be
          entitled to retain any interest paid on funds deposited in an Escrow Account
          by
          the depository institution other than interest on escrowed funds required
          by law
          to be paid to the Mortgagor and, to the extent required by law, the Seller
          shall
          pay interest on escrowed funds to the Mortgagor notwithstanding that such
          Escrow
          Account is non-interest bearing or that interest paid thereon is insufficient
          for such purposes.

         

        SECTION
          5.07  Permitted
          Withdrawals From the Escrow Account.

         

        Withdrawals
          from the Escrow Account may be made by the Seller only:

         

        (i)  to
          effect
          timely payments of ground rents, taxes, assessments, water rates, Primary
          Mortgage Insurance Policy premiums, if applicable, fire and hazard insurance
          premiums, condominium assessments and comparable items for the related
          Mortgage;

         

        (ii)  to
          reimburse the Seller for any Servicing Advance made by the Seller with
          respect
          to a related Mortgage Loan but only from amounts received on the related
          Mortgage Loan which represent late payments or collections of Escrow Payments
          thereunder;

         

        (iii)  to
          refund
          to the Mortgagor any funds as may be determined to be overages;

         

        (iv)  for
          transfer to the Custodial Account in accordance with the terms of this
          Agreement;

         

        (v)  for
          application to restoration or repair of the Mortgaged Property;

         

        (vi)  to
          pay to
          the Seller, or to the Mortgagor to the extent required by law, any interest
          paid
          on the funds deposited in the Escrow Account;

         

        (vii)  to
          clear
          and terminate the Escrow Account on the termination of this
          Agreement;

         

        (viii)  to
          pay to
          the Mortgagors or other parties Insurance Proceeds deposited in accordance
          with
          Section 4.06;

         

        (ix)  to
          remove
          funds inadvertently placed in the Escrow Account by the Seller or for which
          amounts previously deposited are returned unpaid by the related Mortgagor’s
          banking institution; and

         

        (x)  to
          clear
          and terminate the Escrow Account upon the termination of this
          Agreement.

         

        SECTION
          5.08  Payment
          of Taxes, Insurance and Charges; Maintenance of Primary Mortgage Insurance;
          Collections Thereunder.

         

        With
          respect to each Mortgage Loan, the Seller shall maintain accurate records
          reflecting the status of ground rents, taxes, assessments, water rates
          and other
          charges which are or may become a lien upon the Mortgaged Property and
          the
          status of primary mortgage insurance premiums (if any) and fire and hazard
          insurance coverage and shall obtain, from time to time, all bills for the
          payment of such charges, including renewal premiums and shall effect payment
          thereof prior to the applicable penalty or termination date and at a time
          appropriate for securing maximum discounts allowable, employing for such
          purpose
          deposits of the Mortgagor in the Escrow Account which shall have been estimated
          and accumulated by the Seller in amounts sufficient for such purposes,
          as
          allowed under the terms of the Mortgage or applicable law. To the extent
          that
          the Mortgage does not provide for Escrow Payments, the Seller shall determine
          that any such payments are made by the Mortgagor at the time they first
          become
          due. The Seller assumes full responsibility for the timely payment of all
          such
          bills and shall effect timely 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 subject to its ability to recover such Servicing Advances pursuant
          to
          Sections 4.05(ii), (iii) and (vi). Notwithstanding the foregoing, if the
          Seller
          reasonably determines that any such Servicing Advance would not be recoverable
          from amounts collected on the related Mortgage Loan, the Seller shall have
          no
          obligation to make such Servicing Advance. Any such determination shall
          be
          evidenced by an Officer’s Certificate delivered to the Purchaser indicating the
          reasons therefor.

         

        The
          Seller will maintain in full force and effect Primary Mortgage Insurance
          Policies issued by a Qualified Insurer with respect to each first lien
          Mortgage
          Loan for which such coverage is herein required. Such coverage will be
          maintained until the Loan-to-Value ratio of the related Mortgage Loan is
          reduced
          to the amount for which Fannie Mae no longer requires such insurance to
          be
          maintained. The Seller will not cancel or refuse to renew any Primary Mortgage
          Insurance Policy in effect on the related Closing Date that is required
          to be
          kept in force under this Agreement unless a replacement Primary Mortgage
          Insurance Policy for such canceled or non-renewed policy is obtained from
          and
          maintained with a Qualified Insurer. The Seller shall not take any action
          which
          would result in non-coverage under any applicable Primary Mortgage Insurance
          Policy of any loss which, but for the actions of the Seller would have
          been
          covered thereunder. In connection with any assumption or substitution agreement
          entered into or to be entered into pursuant to Section 6.01, the Seller
          shall
          promptly notify the insurer under the related Primary Mortgage Insurance
          Policy,
          if any, of such assumption or substitution of liability in accordance with
          the
          terms of such policy and shall take all actions which may be required by
          such
          insurer as a condition to the continuation of coverage under the Primary
          Mortgage Insurance Policy. If such Primary Mortgage Insurance Policy is
          terminated as a result of such assumption or substitution of liability,
          the
          Seller shall obtain a replacement Primary Mortgage Insurance Policy as
          provided
          above.

         

        In
          connection with its activities as servicer, the Seller agrees to prepare
          and
          present, on behalf of itself and the Purchaser, claims to the insurer under
          any
          Primary Mortgage Insurance Policy in a timely fashion in accordance with
          the
          terms of such Primary Mortgage Insurance Policy and, in this regard, to
          take
          such action as shall be necessary to permit recovery under any Primary
          Mortgage
          Insurance Policy respecting a defaulted first lien Mortgage Loan. Pursuant
          to
          Section 4.04, any amounts collected by the Seller under any Primary Mortgage
          Insurance Policy shall be deposited in the Custodial Account, subject to
          withdrawal pursuant to Section 4.05.

         

        SECTION
          5.09  Transfer
          of Accounts.

         

        The
          Seller may transfer a Custodial Account or an Escrow Account to a different
          Eligible Account from time to time. Such transfer shall be made only upon
          providing notice of the transfer to the Purchaser.

         

        SECTION
          5.10  Maintenance
          of Hazard Insurance.

         

        The
          Seller shall cause to be maintained for each Mortgage Loan fire and hazard
          insurance with extended coverage as is acceptable to Fannie Mae or Freddie
          Mac
          and customary in the area where the Mortgaged Property is located in an
          amount
          which is equal to the lesser of (i) the maximum insurable value of the
          improvements securing such Mortgage Loan and (ii) the greater of (a) the
          outstanding principal balance of the Mortgage Loan, and (b) an amount such
          that
          the proceeds thereof shall be sufficient to prevent the Mortgagor and/or
          the
          mortgagee from becoming a co-insurer. If required by the Flood Disaster
          Protection Act of 1973, as amended, each Mortgage Loan shall be covered
          by a
          flood insurance policy meeting the requirements of the current guidelines
          of the
          Federal Insurance Administration in effect with an insurance carrier acceptable
          to Fannie Mae or Freddie Mac, in an amount representing coverage not less
          than
          the least of (i) the outstanding principal balance of the Mortgage Loan,
          (ii)
          the maximum insurable value of the improvements securing such Mortgage
          Loan and
          (iii) the maximum amount of insurance which is available under the Flood
          Disaster Protection Act of 1973, as amended. If at any time during the
          term of
          the Mortgage Loan, the Seller determines in accordance with applicable
          law and
          pursuant to the Fannie Mae Guides that a Mortgaged Property is located
          in a
          special flood hazard area and is not covered by flood insurance or is covered
          in
          an amount less than the amount required by the Flood Disaster Protection
          Act of
          1973, as amended, the Seller shall notify the related Mortgagor that the
          Mortgagor must obtain such flood insurance coverage, and if the related
          Mortgagor fails to obtain the required flood insurance coverage within
          forty-five (45) days after such notification, the Seller shall immediately
          force
          place the required flood insurance on the Mortgagor’s behalf. To the extent the
          payment of the related premiums will not, in the Seller’s reasonable
          determination, constitute non-recoverable Servicing Advances, the Seller
          shall
          also maintain on each REO Property, fire and hazard insurance with extended
          coverage in an amount which is at least equal to the maximum insurable
          value of
          the improvements which are a part of such property, and, to the extent
          required
          and available under the Flood Disaster Protection Act of 1973, as amended,
          flood
          insurance in an amount as provided above. Any amounts collected by the
          Seller
          under any such policies other than amounts to be deposited in the Escrow
          Account
          and applied to the restoration or repair of the Mortgaged Property or REO
          Property, or released to the Mortgagor in accordance with Accepted Servicing
          Practices, shall be deposited in the Custodial Account, subject to withdrawal
          pursuant to Section 4.05. It is understood and agreed that no other additional
          insurance need be required by the Seller or maintained on property acquired
          in
          respect of the Mortgage Loan, other than pursuant to this Agreement, the
          Fannie
          Mae Guides or such applicable state or federal laws and regulations as
          shall at
          any time be in force and as shall require such additional insurance. All
          such
          policies shall be endorsed with standard mortgagee clauses with loss payable
          to
          the Seller and its successors and/or assigns and shall provide for at least
          thirty (30) days prior written notice of any cancellation, reduction in
          the
          amount or material change in coverage to the Seller. The Seller shall not
          interfere with the Mortgagor’s freedom of choice in selecting either his
          insurance carrier or agent, provided,
          however,
          that
          the Seller shall not accept any such insurance policies from insurance
          companies
          unless such companies are Qualified Insurers.

         

        SECTION
          5.11  Maintenance
          of Mortgage Impairment Insurance Policy.

         

        In
          the
          event that the Seller (or an affiliate of the Seller) shall obtain and
          maintain
          a blanket policy issued by an issuer acceptable to Fannie Mae or Freddie
          Mac
          insuring against hazard losses on all of the Mortgage Loans, then, to the
          extent
          such policy provides coverage in an amount equal to the amount required
          pursuant
          to Section 4.10 and otherwise complies with all other requirements of Section
          4.10, it shall conclusively be deemed to have satisfied its obligations
          as set
          forth in Section 4.10, it being understood and agreed that such policy
          may
          contain a deductible clause, in which case the Seller shall, in the event
          that
          there shall not have been maintained on the related Mortgaged Property
          or REO
          Property a policy complying with Section 4.10, and there shall have been
          a loss
          which would have been covered by such policy, deposit in the Custodial
          Account
          the amount not otherwise payable under the blanket policy because of such
          deductible clause. In connection with its activities as servicer of the
          Mortgage
          Loans, the Seller agrees to prepare and present, on behalf of the Purchaser,
          claims under any such blanket policy in a timely fashion in accordance
          with the
          terms of such policy. Upon request of the Purchaser, the Seller shall cause
          to
          be delivered to the Purchaser a certified true copy of such policy and
          shall use
          commercially reasonable efforts to obtain a statement from the insurer
          thereunder that such policy shall in no event be terminated or materially
          modified without thirty (30) days’ prior written notice to the
          Purchaser.

         

        SECTION
          5.12  Maintenance
          of Fidelity Bond and Errors and Omissions Insurance.

         

        The
          Seller shall maintain, at its own expense, a blanket Fidelity Bond and
          an errors
          and omissions insurance policy, with broad coverage with responsible companies
          on all officers, employees or other persons acting in any capacity with
          regard
          to the Mortgage Loans to handle funds, money, documents and papers relating
          to
          the Mortgage Loans. The Fidelity Bond shall be in the form of a mortgage
          banker’s blanket bond and shall protect and insure the Seller against losses,
          including forgery, theft, embezzlement and fraud of such persons. The errors
          and
          omissions insurance shall protect and insure the Seller against losses
          arising
          out of errors and omissions and negligent acts of such persons. Such errors
          and
          omissions insurance shall also protect and insure the Seller against losses
          in
          connection with the failure to maintain any insurance policies required
          pursuant
          to this Agreement and the release or satisfaction of a Mortgage Loan without
          having obtained payment in full of the indebtedness secured thereby. No
          provision of this Section 4.12 requiring the Fidelity Bond or errors and
          omissions insurance shall diminish or relieve the Seller from its duties
          and
          obligations as set forth in this Agreement. The minimum coverage under
          any such
          bond and insurance policy shall be at least equal to the corresponding
          amounts
          required by Fannie Mae in the Fannie Mae Guides or by Freddie Mac in the
          Freddie
          Mac Guides. The Seller shall deliver to the Purchaser a certificate from
          the
          surety and the insurer as to the existence of the Fidelity Bond and errors
          and
          omissions insurance policy and shall obtain a statement from the surety
          and the
          insurer that such Fidelity Bond or insurance policy shall in no event be
          terminated or materially modified without thirty (30) days’ prior written notice
          to the Purchaser. Upon request by the Purchaser, the Seller shall provide
          the
          Purchaser with an insurance certificate certifying coverage under this
          Section
          4.12, and will provide an update to such certificate upon request, or upon
          renewal or material modification of coverage.

         

        SECTION
          5.13  Title,
          Management and Disposition of REO Property.

         

        In
          the
          event that title to the Mortgaged Property is acquired in foreclosure,
          by deed
          in lieu of foreclosure or other method resulting in full or partial satisfaction
          of the related Mortgage, the deed or certificate of sale shall be taken
          in the
          name of the Purchaser or its designee, or in the event the Purchaser or
          its
          designee is not authorized or permitted to hold title to real property
          in the
          state where the REO Property is located, or would be adversely affected
          under
          the “doing business” or tax laws of such state by so holding title, the deed or
          certificate of sale shall be taken in the name of such Person or Persons
          as
          shall be consistent with an Opinion of Counsel obtained by the Seller,
          at the
          expense of the Purchaser, from an attorney duly licensed to practice law
          in the
          state where the REO Property is located. Any Person or Persons holding
          such
          title other than the Purchaser shall acknowledge in writing that such title
          is
          being held as nominee for the benefit of the Purchaser.

         

        The
          Seller shall notify the Purchaser in accordance with the Fannie Mae Guides
          of
          each acquisition of REO Property upon such acquisition, and thereafter
          assume
          the responsibility for marketing such REO Property in accordance with Accepted
          Servicing Practices. Thereafter, the Seller shall continue to provide certain
          administrative services to the Purchaser relating to such REO Property
          as set
          forth in this Section 4.13.

         

        The
          Seller shall, either itself or through an agent selected by the Seller,
          and in
          accordance with the Fannie Mae Guides manage, conserve, protect and operate
          each
          REO Property in the same manner that it manages, conserves, protects and
          operates other foreclosed property for its own account, and in the same
          manner
          that similar property in the same locality as the REO Property is managed.
          The
          Seller shall cause each REO Property to be inspected promptly upon the
          acquisition of title thereto and shall cause each REO Property to be inspected
          at least annually thereafter or more frequently as required by the
          circumstances. The Seller shall make or cause to be made a written report
          of
          each such inspection. Such reports shall be retained in the Servicing
          File.

         

        The
          Seller shall use its best efforts to dispose of the REO Property as soon
          as
          possible and shall sell such REO Property in any event within three (3)
          years
          after title has been taken to such REO Property, unless the Seller determines,
          and gives an appropriate notice to the Purchaser to such effect, that a
          longer
          period is necessary for the orderly liquidation of such REO Property. If
          a
          longer period than three (3) years is permitted under the foregoing sentence
          and
          is necessary to sell any REO Property, the Seller shall report monthly
          to the
          Purchaser as to the progress being made in selling such REO Property. If
          as of
          the date title to any REO Property was acquired by the Seller there were
          outstanding unreimbursed Servicing Advances with respect to the REO Property,
          the Seller shall be entitled to immediate reimbursement from the Purchaser
          for
          any related unreimbursed Servicing Advances. The disposition of REO Property
          shall be carried out by the Seller at such price, and upon such terms and
          conditions, as the Seller deems to be in the best interests of the Purchaser.
          The Seller shall update the Purchaser from time-to-time as to the status
          of each
          REO Property.

         

        SECTION
          5.14  Notification
          of Maturity Date.

         

        With
          respect to each Mortgage Loan, the Seller shall execute and deliver to
          the
          Mortgagor any and all necessary notices required under applicable law and
          the
          terms of the related Mortgage Note and Mortgage regarding the maturity
          date if
          required under applicable law.

         

         

        ARTICLE
          VI

        PAYMENTS
          TO THE PURCHASER

         

        SECTION
          6.01  Distributions.

         

        On
          each
          Remittance Date, the Seller shall distribute by wire transfer to the Purchaser
          (i) all amounts credited to the Custodial Account as of the close of business
          on
          the preceding Determination Date, net of charges against or withdrawals
          from the
          Custodial Account pursuant to Section 4.05, plus (ii) all Monthly Advances,
          if
          any, which the Seller is obligated to distribute pursuant to Section 5.03,
          plus
          (iii) all payments in respect of Compensating Interest for such Remittance
          Date
          required to be deposited in the Custodial Account pursuant to Section
          4.04(viii), minus (iv) any amounts attributable to Monthly Payments
          collected but due on a Due Date or Dates subsequent to the preceding
          Determination Date, which amounts shall be remitted on the Remittance Date
          next
          succeeding the Due Period for such amounts, and any Principal Prepayments
          received during the month of such Remittance Date, which amounts shall
          be
          remitted on the next succeeding Remittance Date.

         

        With
          respect to any remittance received by the Purchaser after the Business
          Day
          following the Business Day on which such payment was due, the Seller shall
          pay
          to the Purchaser interest on any such late payment at an annual rate equal
          to
          the Prime Rate, adjusted as of the date of each change, plus two percentage
          points, but in no event greater than the maximum amount permitted by applicable
          law. Such interest shall be deposited in the Custodial Account by the Seller
          on
          the date such late payment is made and shall cover the period commencing
          with
          the day following the second Business Day on which such payment was due
          and
          ending with the Business Day on which such payment is made, both inclusive.
          Such
          interest shall be remitted along with the distribution payable on the next
          succeeding Remittance Date. The payment by the Seller of any such interest
          shall
          not be deemed an extension of time for payment or a waiver of any Event
          of
          Default by the Seller.

         

        SECTION
          6.02  Statements
          to the Purchaser.

         

        The
          Seller shall furnish to the Purchaser an individual loan accounting report,
          as
          of the last Business Day of each month, in the Seller’s assigned loan number
          order to document Mortgage Loan payment activity on an individual Mortgage
          Loan
          basis. With respect to each month, the corresponding individual loan accounting
          report shall be received by the Purchaser no later than the fifth (5th)
          Business
          Day of the following month in a format mutually agreed upon by both the
          Purchaser and the Seller and in hard copy, which report shall contain the
          following (or such other information as is mutually agreed upon by the
          Seller
          and the Purchaser):

         

        (i)  with
          respect to each Monthly Payment, the amount of such remittance allocable
          to
          principal (including a separate breakdown of any Principal Prepayment and
          a
          detailed report of interest on principal prepayment amounts remitted in
          accordance with Section 4.04);

         

        (ii)  with
          respect to each Monthly Payment, the amount of such remittance allocable
          to
          interest;

         

        (iii)  the
          aggregate Scheduled Principal Balance of the Mortgage Loans;

         

        (iv)  the
          aggregate of any expenses reimbursed to the Seller during the prior distribution
          period pursuant to Section 4.05;

         

        (v)  the
          number and aggregate outstanding principal balances of Mortgage Loans (a)
          delinquent (1) 30 to 59 days, (2) 60 to 89 days, and (3) 90 days or more;
          (b) as
          to which foreclosure has commenced; and (c) as to which REO Property has
          been
          acquired; and

         

        (vi)  the
          amount of any Monthly Advances.

         

        The
          Seller shall also provide a monthly servicing report, sorted in the Purchaser’s
          assigned loan number order, in the form of Alltel reports P139, S214, S215
          and
          S50Y and Fidelity report P-4DL (or in such other forms as the Purchaser
          and the
          Seller may agree), with each such report.

         

        The
          Seller shall prepare and file any and all information statements or other
          filings required to be delivered to any governmental taxing authority or
          to the
          Purchaser pursuant to any applicable law with respect to the Mortgage Loans
          and
          the transactions contemplated hereby. In addition, the Seller shall provide
          the
          Purchaser with such information concerning the Mortgage Loans as is necessary
          for the Purchaser to prepare its federal income tax return as the Purchaser
          may
          reasonably request from time to time.

         

        In
          addition, not more than sixty (60) days after the end of each calendar
          year, the
          Seller shall furnish to each Person who was a Purchaser at any time during
          such
          calendar year an annual statement in accordance with the requirements of
          applicable federal income tax law as to the aggregate of remittances for
          the
          applicable portion of such year.

         

        SECTION
          6.03  Monthly
          Advances by the Seller.

         

        Not
          later
          than the close of business on the Business Day preceding each Remittance
          Date,
          the Seller shall deposit in the Custodial Account an amount equal to all
          Monthly
          Payments, whether or not deferred pursuant to Section 4.01, which were
          due on a
          Mortgage Loan on the immediately preceding Due Date and delinquent at the
          close
          of business on the related Determination Date.

         

        The
          Seller’s obligation to make such Monthly Advances as to any Mortgage Loan will
          continue through the earlier of: (i) the date of the termination or resignation,
          as applicable, of the Seller pursuant to Section 7.04, 8.01 or 9.01 or
          (ii) the
          date of final disposition and liquidation of the related Mortgage Loan
          or any
          Mortgaged Property acquired through foreclosure or a conveyance in lieu
          of
          foreclosure, unless the Seller reasonably believes such advance to be
          non-recoverable from proceeds of the related Mortgage Loan. In such event,
          the
          Seller shall deliver to the Purchaser an Officer’s Certificate of the Seller to
          the effect that an officer of the Seller has reviewed the related Servicing
          File
          and has made the reasonable determination that any additional advances
          are
          non-recoverable from proceeds of the related Mortgage Loan.

         

        SECTION
          6.04  Liquidation
          Reports.

         

        Upon
          the
          foreclosure sale of any Mortgaged Property or the acquisition thereof by
          the
          Purchaser pursuant to a deed in lieu of foreclosure, the Seller shall submit
          to
          the Purchaser a liquidation report with respect to such Mortgaged Property.
          The
          Seller shall also provide reports on the status of REO Property containing
          such
          information as the Purchaser may reasonably require.

         

         

        ARTICLE
          VII

        GENERAL
          SERVICING PROCEDURES

         

        SECTION
          7.01  Assumption
          Agreements.

         

        The
          Seller shall, to the extent it has knowledge of any conveyance or prospective
          conveyance by any Mortgagor of the Mortgaged Property (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 any “due-on-sale”
clause to the extent permitted by law; provided,
          however,
          that
          the Seller shall not exercise any such rights if prohibited by law or the
          terms
          of the Mortgage Note from doing so or if the exercise of such rights would
          impair or threaten to impair any recovery under the related Primary Mortgage
          Insurance Policy, if any. If the Seller reasonably believes it is unable
          under
          applicable law to enforce such “due-on-sale” clause, the Seller will enter into
          an assumption agreement with the person to whom the Mortgaged 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. If the Seller is prohibited
          under
          applicable law from (a) entering into an assumption agreement with the
          Person to
          whom the Mortgaged Property has been conveyed or is proposed to be conveyed
          or
          (b) requiring the original Mortgagor to remain liable under the Mortgage
          Note,
          the Seller, with the prior consent of the primary mortgage insurer, if
          any, is
          authorized to enter into a substitution of liability agreement with the
          person
          to whom the Mortgaged Property has been conveyed or is proposed to be conveyed
          pursuant to which the original Mortgagor is released from liability and
          such
          Person is substituted as mortgagor and becomes liable under the related
          Mortgage
          Note. Any such substitution of liability agreement shall be in lieu of
          an
          assumption agreement.

         

        In
          connection with any such assumption or substitution of liability, the Seller
          shall follow the underwriting practices and procedures of the Fannie Mae
          Guides.
          With respect to an assumption or substitution of liability, the Mortgage
          Interest Rate borne by the related Mortgage Note and the amount of the
          Monthly
          Payment may not be changed. If the credit of the proposed transferee does
          not
          meet such underwriting criteria, the Seller diligently shall, to the extent
          permitted by the Mortgage or the Mortgage Note and by applicable law, accelerate
          the maturity of the Mortgage Loan. The Seller shall notify the Purchaser
          that
          any such substitution of liability or assumption agreement has been completed
          by
          forwarding to the Purchaser the original of any such substitution of liability
          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. All fees collected by the Seller for entering into an assumption
          or
          substitution of liability agreement shall belong to the Seller as additional
          servicing compensation.

         

        Notwithstanding
          the foregoing paragraphs of this Section or any other provision of this
          Agreement, the Seller shall not be deemed to be in default, breach or any
          other
          violation of its obligations hereunder by reason of any assumption of a
          Mortgage
          Loan by operation of law or any assumption which the Seller may be restricted
          by
          law from preventing, for any reason whatsoever. For purposes of this Section
          6.01, 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
          7.02  Satisfaction
          of Mortgages and Release of Mortgage Files.

         

        Upon
          the
          payment in full of any Mortgage Loan, or the receipt by the Seller of a
          notification that payment in full will be escrowed in a manner customary
          for
          such purposes, the Seller will immediately notify the Purchaser by a
          certification, 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 Custodial Account pursuant to Section 4.04
          have
          been or will be so deposited, of a Servicing Officer and shall request
          delivery
          to it of the portion of the Mortgage File held by the Purchaser. The Purchaser
          shall no later than five (5) Business Days after receipt of such certification
          and request, release or cause to be released to the Seller, the related
          Mortgage
          Loan Documents and, upon its receipt of such documents, the Seller shall
          promptly prepare and deliver to the Purchaser the requisite satisfaction
          or
          release. No later than three (3) Business Days following its receipt of
          such
          satisfaction or release, the Purchaser shall deliver, or cause to be delivered,
          to the Seller the release or satisfaction properly executed by the owner
          of
          record of the applicable Mortgage or its duly appointed attorney in fact.
          If
          such Mortgage Loan is a MERS Mortgage Loan, the Seller is authorized to
          cause
          the removal from the registration on the MERS System of such Mortgage and
          to
          execute and deliver, on behalf of the Purchaser, any and all instruments
          of
          satisfaction or cancellation or of partial or full release.

         

        In
          the
          event the Seller satisfies or releases a Mortgage without having obtained
          payment in full of the indebtedness secured by the Mortgage or should it
          otherwise prejudice any right the Purchaser may have under the Mortgage
          Loan
          Documents, the Seller, upon written demand, shall remit within ten (10)
          Business
          Days to the Purchaser the then outstanding principal balance of the related
          Mortgage Loan by deposit thereof in the Custodial Account.

         

        From
          time
          to time and as appropriate for the servicing or foreclosure of the Mortgage
          Loans, including for the purpose of collection under any Primary Mortgage
          Insurance Policy, the Purchaser shall, upon request of the Seller and delivery
          to the Purchaser of a servicing receipt signed by a Servicing Officer,
          release
          the portion of the Mortgage File held by the Purchaser to the Seller. Such
          servicing receipt shall obligate the Seller to return such Mortgage Loan
          Documents to the Purchaser when the need therefor by the Seller no longer
          exists, unless the Mortgage Loan has been liquidated and the Liquidation
          Proceeds relating to the Mortgage Loan have been deposited in the Custodial
          Account or the Mortgage File 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 Seller
          has
          delivered to the Purchaser a certificate of a Servicing Officer certifying
          as to
          the name and address of the Person to which such Mortgage File 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, the servicing
          receipt shall be released by the Purchaser to the Seller.

         

        SECTION
          7.03  Servicing
          Compensation.

         

        As
          compensation for its services hereunder, the Seller shall be entitled to
          the
          Servicing Fee. Additional servicing compensation in the form of assumption
          fees,
          as provided in Section 6.01, late payment charges, interest and investment
          earning on funds on deposit in the Custodial Account and Escrow Account
          (to the
          extent provided for herein) and other ancillary income shall be retained
          by the
          Seller to the extent not required to be deposited in the Custodial Account.
          The
          Seller shall be required to pay all expenses incurred by it in connection
          with
          its servicing activities hereunder and shall not be entitled to reimbursement
          therefor except as specifically provided for herein.

         

        SECTION
          7.04  Annual
          Statement as to Compliance.

         

        To
          the
          extent that any Mortgage Loans are serviced pursuant to this Agreement
          and are
          not part of a Pass-Through Transfer, within seventy-five (75) days after
          the end
          of each calendar year, the Seller will deliver to the Purchaser an Officers’
Certificate stating, as to each signatory thereof, that (i) a review of
          the
          activities of the Seller 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 Seller has
          fulfilled all of its obligations under this Agreement throughout such year,
          or,
          if there has been a default in the fulfillment of any such obligation,
          specifying each such default known to such officers and the nature and
          status
          thereof. The first Officer’s Certificate delivered by the Seller to the
          Purchaser pursuant to this Section shall be delivered on or before March
          15,
          2007. 

         

        SECTION
          7.05  Annual
          Independent Certified Public Accountants’ Servicing Report.

         

        To
          the
          extent that any Mortgage Loans are serviced pursuant to this Agreement
          and are
          not part of a Pass-Through Transfer, within seventy-five (75) days after
          the end
          of each calendar year, the Seller at its expense shall furnish to the Purchaser
          each of the items described in Section 2.05 of the Regulation AB Compliance
          Addendum. The first statement delivered by the Seller to the Purchaser
          pursuant
          to this Section shall be delivered on or before March 15, 2007.

         

        SECTION
          7.06  Purchaser’s
          Right to Examine Seller Records.

         

        At
          its
          expense, the Purchaser shall have the right to examine and audit upon reasonable
          notice to the Seller, during business hours or at such other times as might
          be
          reasonable under applicable circumstances, any and all of the books, records,
          documentation or other information of the Seller, or held by another for
          the
          Seller or on its behalf or otherwise, which relates to the performance
          or
          observance by the Seller of the terms, covenants or conditions of this
          Agreement.

         

        The
          Seller shall provide to the Purchaser and any supervisory agents or examiners
          representing a state or federal governmental agency having jurisdiction
          over the
          Purchaser, including but not limited to, OCC, OTS, FDIC and other similar
          entities, access to any documentation regarding the Mortgage Loans in the
          possession of the Seller which may be required by any applicable regulations.
          Such access shall be afforded without charge, upon reasonable request,
          during
          normal business hours and at the offices of the Seller, and in accordance
          with
          the federal government, OCC, FDIC, OTS, or any other similar regulations;
          provided, however, that in
          connection with providing such access, the Seller shall not be required
          to incur
          any out-of-pocket costs unless provisions have been made for the reimbursement
          thereof.

         

        SECTION
          7.07  Seller
          Shall Provide Information as Reasonably Required.

         

        The
          Seller shall furnish to the Purchaser during the term of this Agreement
          such
          periodic, special or other reports, information or documentation as the
          Purchaser may reasonably request, as shall be necessary, reasonable or
          appropriate in respect to the Mortgage Loans and the performance of the
          Seller
          under this Agreement, including any reports, information or documentation
          reasonably required to comply with any regulations regarding any supervisory
          agents or examiners of the Purchaser; provided, that, the Seller shall
          not be
          liable for any out-of-pocket costs with respect to the provision of such
          reports, information or documentation. All such reports or information
          shall be
          provided by and in accordance with such applicable instructions and directions
          as the Purchaser may reasonably request in relation to this Agreement or
          the
          performance of the Seller under this Agreement. The Seller agrees to execute
          and
          deliver all such instruments and take all such action as the Purchaser,
          from
          time to time, may reasonably request in order to effectuate the purpose
          and to
          carry out the terms of this Agreement.

         

        The
          Seller, upon reasonable advance notice, shall make reasonably available
          to the
          Purchaser or any prospective purchaser a knowledgeable financial or accounting
          officer for the purpose of answering questions and to permit any prospective
          purchaser to inspect the Seller’s servicing facilities for the purpose of
          satisfying such prospective purchaser that the Seller has the ability to
          service
          the Mortgage Loans as provided in this Agreement.

         

        The
          Seller shall maintain with respect to each Mortgage Loan and shall make
          available for inspection by the Purchaser or its designee the related Servicing
          File during the time the Purchaser retains ownership of a Mortgage Loan
          and
          thereafter in accordance with applicable laws and regulations.

         

         

        ARTICLE
          VIII

        THE
          SELLER

         

        SECTION
          8.01  Indemnification;
          Third Party Claims.

         

        The
          Seller agrees to indemnify the Purchaser and hold it harmless against any
          and
          all claims, losses, damages, penalties, fines, forfeitures, legal fees
          and
          related costs, judgments, and any other costs, fees and expenses (collectively,
          “Damages”)
          that
          the Purchaser may sustain in any way related to the failure of the Seller
          to
          observe and perform its duties, obligations, covenants, and agreements
          and to
          service the Mortgage Loans in compliance with the terms of this Agreement
          or as
          a result of the breach of a representation or warranty set forth in Sections
          3.01 or 3.02 of this Agreement. The Seller hereunder shall immediately
          notify
          the Purchaser if a claim is made by a third party with respect to this
          Agreement
          or a Mortgage Loan, assume (with the consent of the Purchaser) the defense
          of
          any such claim and pay all expenses in connection therewith, including
          counsel
          fees, and promptly pay, discharge and satisfy any judgment or decree which
          may
          be entered against it or the Purchaser in respect of such claim. The Seller
          shall follow any written instructions received from the Purchaser in connection
          with such claim. The Purchaser shall promptly reimburse the Seller for
          all
          amounts advanced by it pursuant to the two preceding sentences except when
          the
          claim relates to the failure of the Seller to service and administer the
          Mortgage Loans in compliance with the terms of this Agreement, the failure
          of
          the Seller to perform its duties and obligations pursuant to this Agreement,
          the
          breach of representation or warranty set forth in Sections 3.01 or 3.02,
          or the
          negligence, bad faith or willful misconduct of the Seller. The provisions
          of
          this Section 7.01 shall survive termination of this Agreement and transfer
          of
          the related servicing rights.

         

        SECTION
          8.02  Merger
          or
          Consolidation of the Seller.

         

        The
          Seller shall keep in full effect its existence, rights and franchises as
          a
          corporation under the laws of the state of its incorporation except as
          permitted
          herein, and shall obtain and preserve its qualification to do business
          as a
          foreign corporation in each jurisdiction in which such qualification is
          or shall
          be necessary to protect the validity and enforceability of this Agreement,
          or
          any of the Mortgage Loans and to perform its duties under this
          Agreement.

         

        Any
          Person into which the Seller may be merged or consolidated (including by
          means
          of sale or disposal of all or substantially all of the Seller’s assets), or any
          corporation resulting from any merger, conversion or consolidation to which
          the
          Seller shall be a party, or any Person succeeding to the business of the
          Seller
          (whether or not related to loan servicing), shall be the successor of the
          Seller
          hereunder, without the execution or filing of any paper or any further
          act on
          the part of any of the parties hereto, anything herein to the contrary
          notwithstanding; provided,
          however,
          that
          the successor or surviving Person shall be an institution who is a Fannie
          Mae or
          Freddie Mac approved seller/servicer in good standing.

         

        SECTION
          8.03  Limitation
          on Liability of the Seller and Others.

         

        The
          duties and obligations of the Seller shall be determined solely by the
          express
          provisions of this Agreement, the Seller shall not be liable except for
          the
          performance of such duties and obligations as are specifically set forth
          in this
          Agreement and no implied covenants or obligations shall be read into this
          Agreement against the Seller. Neither the Seller nor any of the officers,
          employees or agents of the Seller shall be under any liability to the Purchaser
          for any action taken or for refraining from the taking of any action in
          good
          faith pursuant to this Agreement, or for errors in judgment made in good
          faith;
provided,
          however,
          that
          this provision shall not protect the Seller or any such person against
          any
          breach of warranties or representations made herein, or failure to perform
          its
          obligations in compliance with any standard of care set forth in this Agreement,
          or any liability which would otherwise be imposed by reason of negligence,
          bad
          faith or willful misconduct, or any breach of the terms and conditions
          of this
          Agreement. The Seller and any officer, employee or agent of the Seller
          may rely
          in good faith on any document of any kind prima facie properly executed
          and
          submitted by the Purchaser respecting any matters arising hereunder. The
          Seller
          shall not be under any obligation to appear in, prosecute or defend any
          legal
          action which is not incidental to its duties to service the Mortgage Loans
          in
          accordance with this Agreement and which in its reasonable opinion may
          involve
          it in any expenses or liability; provided,
          however,
          that
          the Seller may undertake any such action which it may deem necessary or
          desirable in respect to this Agreement and the rights and duties of the
          parties
          hereto. In such event, the reasonable legal expenses and costs of such
          action
          and any liability resulting therefrom shall be expenses, costs and liabilities
          for which the Purchaser will be liable, and the Seller shall be entitled
          to be
          reimbursed therefor from the Purchaser upon written demand.

         

        SECTION
          8.04  Seller
          Not to Resign.

         

        The
          Seller shall not resign from the obligations and duties hereby imposed
          on it
          except by mutual consent of the Seller and the Purchaser or upon the
          determination that its duties hereunder are no longer permissible under
          applicable law and such incapacity cannot be cured by the Seller. Any such
          determination permitting the resignation of the Seller shall be evidenced
          by an
          Opinion of Counsel to such effect delivered to the Purchaser which Opinion
          of
          Counsel shall be in form and substance acceptable to the Purchaser. No
          such
          resignation shall become effective until a successor shall have assumed
          the
          Seller’s responsibilities and obligations hereunder in the manner provided in
          Section 11.01.

         

        SECTION
          8.05  No
          Transfer of Servicing.

         

        With
          respect to the retention of the Seller to service the Mortgage Loans hereunder,
          the Seller acknowledges that the Purchaser has acted in reliance upon the
          Seller’s independent status, the adequacy of its servicing facilities, plan,
          personnel, records and procedures, its integrity, reputation and financial
          standing and the continuance thereof. Without in any way limiting the generality
          of this Section 7.05 and except as pursuant to Section 7.02, the Seller
          shall
          not either assign this Agreement or the servicing hereunder or delegate
          its
          rights or duties hereunder or any portion thereof without the prior written
          approval of the Purchaser. Notwithstanding the foregoing, the Seller may,
          without the consent of the Purchaser, retain reasonable and necessary third
          party contractors to perform certain servicing and loan administration
          functions, including and limited to, hazard insurance administration, tax
          payment and administration, flood certification and administration and
          foreclosure activities; provided, that such contractors shall perform such
          servicing and loan administrative functions in a manner consistent with
          this
          Agreement; provided, further, that the retention of such contractors by
          Seller
          shall not limit the obligation of the Seller to service the Mortgage Loans
          pursuant to the terms and conditions of this Agreement or release it from
          any of
          its obligations hereunder.

         

         

        ARTICLE
          IX

        DEFAULT

         

        SECTION
          9.01  Events
          of
          Default.

         

        In
          case
          one or more of the following Events of Default by the Seller shall occur
          and be
          continuing, that is to say:

         

        (i)  any
          failure by the Seller to remit to the Purchaser any payment required to
          be made
          under the terms of this Agreement which continues unremedied for a period
          of two
          (2) Business Days after the date upon which written notice of such failure,
          requiring the same to be remedied, shall have been given to the Seller
          by the
          Purchaser; or

         

        (ii)  failure
          on the part of the Seller duly to observe or perform in any material respect
          any
          other of the covenants or agreements on the part of the Seller set forth
          in this
          Agreement, including making any required Servicing Advances, or which failure
          continues unremedied for a period of thirty (30) days after the date on
          which
          written notice of such failure, requiring the same to be remedied, shall
          have
          been given to the Seller by the Purchaser; or

         

        (iii)  a
          decree
          or order of a court or agency or supervisory authority having jurisdiction
          for
          the appointment of a conservator or receiver or liquidator in any insolvency,
          bankruptcy, 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 Seller and such decree or order shall have
          remained in force undischarged or unstayed for a period of sixty (60) days;
          or

         

        (iv)  the
          Seller shall voluntarily go into liquidation, consent to the appointment
          of a
          conservator or receiver or liquidator in any insolvency, bankruptcy,
          readjustment of debt, marshalling of assets and liabilities or similar
          proceedings of or relating to the Seller or of or relating to all or
          substantially all of its property; or

         

        (v)  the
          Seller shall admit in writing its inability to pay its debts generally
          as they
          become due, file a petition to take advantage of any applicable insolvency
          or
          reorganization statute, make an assignment for the benefit of its creditors,
          or
          voluntarily suspend payment of its obligations; or

         

        (vi)  the
          Seller ceases to be approved by Fannie Mae or Freddie Mac as a mortgage
          loan
          seller and servicer for more than thirty (30) days; or

         

        (vii)  the
          Seller attempts to assign its right to servicing compensation hereunder
          or the
          Seller attempts, without the consent of the Purchaser, to assign this Agreement
          or the servicing responsibilities hereunder or to delegate its duties hereunder
          or any portion thereof in a manner not permitted under this Agreement;
          or

         

        (viii)  the
          Seller ceases to be (a) licensed to service first lien residential mortgage
          loans in each jurisdiction in which a Mortgaged Property is located and
          such
          licensing is required, and (b) qualified to transact business in any
          jurisdiction where it is currently so qualified, but only to the extent
          such
          non-qualification materially and adversely affects the Seller’s ability to
          perform its obligations hereunder; or

         

        (ix)  failure
          on the part of the Seller duly to observe or perform in any material respect
          any
          of the covenants or agreements on the part of the Seller set forth in the
          Regulation AB Compliance Addendum;

         

        then,
          and
          in each and every such case, so long as an Event of Default shall not have
          been
          remedied, the Purchaser, by notice in writing to the Seller may, in addition
          to
          whatever rights the Purchaser may have under Sections 3.03 and 7.01 and
          at law
          or equity or to damages, including injunctive relief and specific performance,
          terminate all the rights and obligations of the Seller under this Agreement
          and
          in and to the Mortgage Loans and the proceeds thereof without compensating
          the
          Seller for the same. On or after the receipt by the Seller of such written
          notice of termination, all authority and power of the Seller under this
          Agreement, whether with respect to the Mortgage Loans or otherwise, shall
          pass
          to and be vested in the successor appointed pursuant to Section 12.01.
          Upon
          written request from the Purchaser, the Seller shall prepare, execute and
          deliver, any and all documents and other instruments, place in such successor’s
          possession all Servicing Files, and do or accomplish all other acts or
          things
          necessary or appropriate to effect the purposes of such notice of termination,
          whether to complete the transfer and endorsement or assignment of the Mortgage
          Loans and related documents, or otherwise, at the Seller’s sole expense. The
          Seller agrees to cooperate with the Purchaser and such successor in effecting
          the termination of the Seller’s responsibilities and rights hereunder,
          including, without limitation, the transfer to such successor for administration
          by it of all cash amounts which shall at the time be credited by the Seller
          to
          the Custodial Account or Escrow Account or thereafter received with respect
          to
          the Mortgage Loans or any REO Property.

         

        If
          any of
          the Mortgage Loans are MERS Mortgage Loans, in connection with the termination
          or resignation (as described in Section 8.04) of the Seller hereunder,
          either
          (i) the successor servicer shall represent and warrant that it is a member
          of
          MERS in good standing and shall agree to comply in all material respects
          with
          the rules and procedures of MERS in connection with the servicing of the
          Mortgage Loans that are registered with MERS, or (ii) the Seller shall
          cooperate
          with the successor servicer either (x) in causing MERS to execute and deliver
          an
          assignment of Mortgage in recordable form to transfer the Mortgage from
          MERS to
          the Purchaser 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 servicer or (y) in causing MERS to designate on the MERS® System the
          successor servicer as the servicer of such Mortgage Loan.

         

        SECTION
          9.02  Waiver
          of
          Defaults.

         

        The
          Purchaser may waive only by written notice any default by the Seller in
          the
          performance of its obligations hereunder and its consequences. Upon any
          such
          waiver of a past default, such default shall cease to exist, and any Event
          of
          Default 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 thereon except to the extent
          expressly so waived in writing.

         

         

        ARTICLE
          X

        TERMINATION

         

        SECTION
          10.01  Termination.

         

        The
          respective obligations and responsibilities of the Seller shall terminate
          upon:
          (i) the later of the final payment or other liquidation (or any advance
          with
          respect thereto) of the last Mortgage Loan or the disposition of all REO
          Property and the remittance of all funds due hereunder; (ii) by mutual
          consent
          of the Seller and the Purchaser in writing; or (iii) termination of the
          Seller
          by the Purchaser with cause under the terms of this Agreement.

         

         

        ARTICLE
          XI

        RECONSTITUTION
          OF MORTGAGE LOANS

         

        SECTION
          11.01  Reconstitution
          of Mortgage Loans.

         

        (a)  The
          Seller acknowledges and the Purchaser agrees that with respect to some
          or all of
          the Mortgage Loans, the Purchaser may effect, upon thirty (30) calendar
          days
          prior written notice to the Seller, either:

         

        (i)  one
          or
          more sales of the Mortgage Loans as whole loan transfers (each, a “Whole
          Loan Transfer”);

         

        (ii)  one
          or
          more Agency Transfers; and/or

         

        (iii)  one
          or
          more sales of the Mortgage Loans as public or private pass-through transfers
          (each, a “Pass-Through
          Transfer”).

         

        (b)  With
          respect to each Whole Loan Transfer, Agency Transfer or Pass-Through Transfer,
          as the case may be, the Seller agrees:

         

        (i)  to
          cooperate reasonably with the Purchaser and any prospective purchaser with
          respect to all reasonable requests that do not result in an undue burden
          or
          expense of the Seller;

         

        (ii)  to
          execute all agreements required to be executed by the Seller in connection
          with
          such Whole Loan Transfer, Agency Transfer or Pass-Through Transfer provided
          that
          any such agreements be consistent with the terms hereof and impose no greater
          duties, liabilities or obligations upon the Seller than those set forth
          herein
          and provided that the Seller is given an opportunity to review and reasonably
          negotiate in good faith the content of such documents not specifically
          referenced or provided for herein;

         

        (iii)  to
          make
          all the representations and warranties set forth in Section 3.01 as of
          the date
          of the Whole Loan Transfer, Agency Transfer or Pass-Through
          Transfer;

         

        (iv)  to
          deliver to the Purchaser (a) for inclusion in any prospectus or other offering
          material such publicly available information regarding the Seller and its
          financial condition and any additional information reasonably requested
          by the
          Purchaser, (b) any similar nonpublic, unaudited financial information (which
          the
          Purchaser may, at its option and its cost, have audited by certified public
          accountants) and such other information as is reasonably requested by the
          Purchaser and which the Seller is capable of providing without unreasonable
          effort or expense, and to indemnify the Purchaser and its affiliates for
          any
          losses, costs or damages incurred by any of them directly related to any
          material misstatements contained in such information or for any omissions
          of
          material fact required to be stated therein to the extent such information
          is
          provided by the Seller specifically for use in a prospectus or other offering
          material; provided,
          that,
          the
          Purchaser shall indemnify the Seller and its affiliates for any losses,
          costs or
          damages related to any material misstatements contained in any prospectus
          or
          other offering material other than in such information provided by the
          Seller
          specifically for use therein or for any omissions of material fact required
          to
          be stated therein and (c) such statements and audit letters of reputable,
          certified public accountants pertaining to information provided by the
          Seller
          pursuant to clause (a) above as shall be reasonably requested by the Purchaser;
          and

         

        (v)  to
          deliver to the Purchaser, and to any Person designated by the Purchaser,
          opinions of counsel in a form reasonably acceptable to the Purchaser as
          are
          customarily delivered by sellers and servicers and reasonably determined
          by the
          Purchaser to be necessary in connection with Whole Loan Transfers, Agency
          Transfers or Pass-Through Transfers, as the case may be, it being understood
          that the cost of any opinions of counsel (other than in-house counsel)
          that may
          be required for a Whole Loan Transfer, Agency Transfer or Pass-Through
          Transfer,
          as the case may be, shall be the responsibility of the Purchaser.

         

        The
          Purchaser shall reimburse the Seller for any and all out-of-pocket expenses,
          costs and fees, including reasonable attorney’s fees, incurred by the Seller in
          response to requests for information or assistance under this Section.
          All
          Mortgage Loans not sold or transferred pursuant to a Whole Loan Transfer,
          Agency
          Transfer or Pass-Through Transfer shall be subject to this Agreement and
          shall
          continue to be serviced in accordance with the terms of this Agreement
          and with
          respect thereto this Agreement shall remain in full force and
          effect.

         

         

        ARTICLE
          XII

        MISCELLANEOUS
          PROVISIONS

         

        SECTION
          12.01  Successor
          to the Seller.

         

        Prior
          to
          termination of Seller’s responsibilities and duties under this Agreement
          pursuant to Section 7.04, 8.01 or 9.01, the Purchaser shall (i) succeed
          to and
          assume all of the Seller’s responsibilities, rights, duties and obligations
          under this Agreement, or (ii) appoint a successor having the characteristics
          set
          forth in Section 7.02 hereof and which shall succeed to all rights and
          assume
          all of the responsibilities, duties and liabilities of the Seller under
          this
          Agreement. In connection with such appointment and assumption, the Purchaser
          may
          make such arrangements for the compensation of such successor out of payments
          on
          Mortgage Loans as the Purchaser and such successor shall agree. In the
          event
          that the Seller’s duties, responsibilities and liabilities under this Agreement
          should be terminated pursuant to the aforementioned Sections, the Seller
          shall
          discharge such duties and responsibilities during the period from the date
          it
          acquires knowledge of such termination until the effective date thereof
          with the
          same degree of diligence and prudence which it is obligated to exercise
          under
          this Agreement, and shall take no action whatsoever that might impair or
          prejudice the rights or financial condition of its successor. The resignation
          or
          removal of the Seller pursuant to the aforementioned Sections shall not
          become
          effective until a successor shall be appointed pursuant to this Section
          and
          shall in no event relieve the Seller of the representations and warranties
          made
          pursuant to Section 3.01 and the indemnification obligations of the Seller
          pursuant to Section 7.01.

         

        Any
          successor appointed as provided herein shall execute, acknowledge and deliver
          to
          the Seller and to the Purchaser an instrument accepting such appointment,
          whereupon such successor shall become fully vested with all the rights,
          powers,
          duties, responsibilities, obligations and liabilities of the Seller, with
          like
          effect as if originally named as a party to this Agreement. Any termination
          or
          resignation of the Seller or this Agreement pursuant to Section 7.04, 7.05,
          8.01
          or 9.01 shall not affect any claims that the Purchaser may have against
          the
          Seller arising prior to any such termination or resignation.

         

        The
          Seller shall promptly deliver to the successor the funds in the Custodial
          Account and the Escrow Account and the Mortgage Files and related documents
          and
          statements held by it hereunder and the Seller shall account for all funds.
          The
          Seller shall execute and deliver such instruments and do such other things
          all
          as may reasonably be required to more fully and definitely vest and confirm
          in
          the successor all such rights, powers, duties, responsibilities, obligations
          and
          liabilities of the Seller. Upon appointment of successor servicer to the
          Seller,
          the Seller shall be reimbursed for unrecovered Servicing Advances, Monthly
          Advances and unpaid Servicing Fees made by the Seller which would otherwise
          have
          been recovered by the Seller pursuant to this Agreement but for the appointment
          such successor servicer.

         

        Upon
          a
          successor’s acceptance of appointment as such, the Seller shall notify by mail
          the Purchaser of such appointment.

         

        SECTION
          12.02  Amendment.

         

        This
          Agreement may be amended or supplemented from time to time by written agreement
          executed by the Purchaser and the Seller.

         

        SECTION
          12.03  Recordation
          of Agreement.

         

        To
          the
          extent permitted by applicable law, this Agreement is subject to recordation
          in
          all appropriate public offices for real property records in all the counties
          or
          other comparable jurisdictions in which any of all the Mortgaged Properties
          subject to the Mortgages are situated, and in any other appropriate public
          recording office or elsewhere, such recordation to be effected by the Seller
          at
          the Seller’s expense on direction of the Purchaser.

         

        SECTION
          12.04  Governing
          Law.

         

        This
          Agreement shall be governed by and construed in accordance with the laws
          of the
          State of New York, without regard to its conflict of law provisions, except
          to
          the extent preempted by Federal law. The obligations, rights and remedies
          of the
          parties hereunder shall be determined in accordance with such laws.

         

        SECTION
          12.05  Notices.

         

        Any
          demands, notices or other communications permitted or required hereunder
          shall
          be in writing and shall be deemed conclusively to have been given if personally
          delivered at or mailed by registered mail, postage prepaid, and return
          receipt
          requested or certified mail, return receipt requested, or transmitted by
          telex,
          telegraph or telecopier and confirmed by a similar mailed writing, as
          follows:

         

        (i) if
          to the
          Seller:

         

        Wachovia
          Mortgage Corporation

        201
          South
          College Street

        Suite
          1600

        Charlotte,
          North Carolina 28288-1088

        Attention:
          Caroline Payne

        Facsimile:
          (704) 374-7980

         

        with
          a
          copy to:

         

        Wachovia
          Mortgage Corporation

        1100
          Corporate Center Drive

        Raleigh,
          North Carolina 27607

        Attention:
          Tom Fowler

         

        Facsimile:
          (919) 852-7525

         

        (ii) if
          to the
          Purchaser:

         

        Nomura
          Credit & Capital, Inc. 

        2
          World
          Financial Center

        Building
          B, 21st
          Floor

        New
          York,
          New York 10281

        Attention:
          Dante LaRocca, Managing Director

        Facsimile:
          (212)667-1024

         

        with
          copy
          to:

         

        NCCI
          Legal

        2
          World
          Financial Center

        Building
          B, 21st
          Floor

        New
          York,
          New York 10281

        

        or
          such
          other address as may hereafter be furnished to the other party by like
          notice.
          Any such demand, notice or communication hereunder shall be deemed to have
          been
          received on the date delivered to or received at the premises of the addressee
          (as evidenced, in the case of registered or certified mail, by the date
          noted on
          the return receipt).

         

        SECTION
          12.06  Severability
          of Provisions.

         

        Any
          part,
          provision, representation or warranty of this Agreement which is prohibited
          or
          which is held to be void or unenforceable shall be ineffective to the extent
          of
          such prohibition or unenforceability without invalidating the remaining
          provisions hereof. Any part, provision, representation or warranty of this
          Agreement which is prohibited or unenforceable or is held to be void or
          unenforceable in any jurisdiction shall be ineffective, as to such jurisdiction,
          to the extent of such prohibition or unenforceability without invalidating
          the
          remaining provisions hereof, and any such prohibition or unenforceability
          in any
          jurisdiction as to any Mortgage Loan shall not invalidate or render
          unenforceable such provision in any other jurisdiction. To the extent permitted
          by applicable law, the parties hereto waive any provision of law which
          prohibits
          or renders void or unenforceable any provision hereof. If the invalidity
          of any
          part, provision, representation or warranty of this Agreement shall deprive
          any
          party of the economic benefit intended to be conferred by this Agreement,
          the
          parties shall negotiate, in good faith, to develop a structure the economic
          effect of which is nearly as possible the same as the economic effect of
          this
          Agreement without regard to such invalidity.

         

        SECTION
          12.07  Exhibits.

         

        The
          exhibits to this Agreement are hereby incorporated and made a part hereof
          and
          are an integral part of this Agreement.

         

        SECTION
          12.08  General
          Interpretive Principles.

         

        For
          purposes of this Agreement, except as otherwise expressly provided or unless
          the
          context otherwise requires:

         

        (i)  the
          terms
          defined in this Agreement have the meanings assigned to them in this Agreement
          and include the plural as well as the singular, and the use of any gender
          herein
          shall be deemed to include the other gender;

         

        (ii)  accounting
          terms not otherwise defined herein have the meanings assigned to them in
          accordance with GAAP;

         

        (iii)  references
          herein to “Articles,” “Sections,” Subsections,” “Paragraphs,” and other
          subdivisions without reference to a document are to designated Articles,
          Sections, Subsections, Paragraphs and other subdivisions of this
          Agreement;

         

        (iv)  a
          reference to a Subsection without further reference to a Section is a reference
          to such Subsection as contained in the same Section in which the reference
          appears, and this rule shall also apply to Paragraphs and other
          subdivisions;

         

        (v)  the
          words
“herein,” “hereof,” “hereunder,” and other words of similar import refer to this
          Agreement as a whole and not to any particular provision;

         

        (vi)  the
          term
“include” or “including” shall mean without limitation by reason of enumeration;
          and

         

        (vii)  headings
          of the Articles and Sections in this Agreement are for reference purposes
          only
          and shall not be deemed to have any substantive effect.

         

        SECTION
          12.09  Reproduction
          of Documents.

         

        This
          Agreement and all documents relating thereto, including, without limitation,
          (i)
          consents, waivers and modifications which may hereafter be executed, (ii)
          documents received by any party at the closing, and (iii) financial statements,
          certificates and other information previously or hereafter furnished, may
          be
          reproduced by any photographic, photostatic, microfilm, micro-card, miniature
          photographic or other similar process. The parties agree that any such
          reproduction shall be admissible in evidence as the original itself in
          any
          judicial or administrative proceeding, whether or not the original is in
          existence and whether or not such reproduction was made by a party in the
          regular course of business, and that any enlargement, facsimile or further
          reproduction of such reproduction shall likewise be admissible in
          evidence.

         

        SECTION
          12.10  Confidentiality
          of Information.

         

        Each
          party recognizes that, in connection with this Agreement, it may become
          privy to
          non-public information regarding the financial condition, operations and
          prospects of the other party. Except as required by law, each party agrees
          to
          keep all non-public information regarding the other party strictly confidential,
          and to use all such information solely in order to effectuate the purpose
          of the
          Agreement, provided that each party may provide confidential information
          to its
          employees, agents and affiliates who have a need to know such information
          in
          order to effectuate the transaction, provided further that such information
          is
          identified as confidential non-public information. In addition, confidential
          information may be provided to a regulatory authority with supervisory
          power
          over the Purchaser, provided such information is identified as confidential
          non-public information.

         

        SECTION
          12.11  Recordation
          of Assignments of Mortgage.

         

        To
          the
          extent permitted by applicable law, each of the Assignments of Mortgage
          is
          subject to recordation in all appropriate public offices for real property
          records in all the counties or other comparable jurisdictions in which
          any or
          all of the Mortgaged Properties are situated, and in any other appropriate
          public recording office or elsewhere, such recordation to be effected (i)
          with
          respect to MERS Mortgage Loans and (ii) with respect to Mortgage Loans
          that are
          not MERS Mortgage Loans, at the Seller’s expense, in each case, in the event
          recordation is either necessary under applicable law or requested by the
          Purchaser at its sole option.

         

        SECTION
          12.12  Assignment
          by Purchaser.

         

        The
          Purchaser shall have the right, upon notice to the Seller, to assign, in
          whole
          or in part, its interest under this Agreement with respect to some or all
          of the
          Mortgage Loans, and designate any person to exercise any rights of the
          Purchaser
          hereunder, by executing an Assignment, Assumption and Recognition Agreement
          substantially in the form of Exhibit
          D
          hereto,
          and the assignee or designee shall accede to the rights and obligations
          hereunder of the Purchaser with respect to such Mortgage Loans; provided,
          however, that, in no event shall there be any more than three (3) “Purchasers”
with respect to any Mortgage Loan Package. In no event shall the Purchaser
          sell
          a partial interest in any Mortgage Loan without the prior written consent
          of the
          Seller, which consent may be granted or withheld in the Seller’s sole
          discretion. All references to the Purchaser in this Agreement shall be
          deemed to
          include its assignee or designee.

         

        SECTION
          12.13  No
          Partnership.

         

        Nothing
          herein contained shall be deemed or construed to create a co-partnership
          or
          joint venture between the parties hereto and the services of the Seller
          shall be
          rendered as an independent contractor and not as agent for
          Purchaser.

         

        SECTION
          12.14  Execution;
          Successors and Assigns.

         

        This
          Agreement may be executed in one or more counterparts and by the different
          parties hereto on separate counterparts, each of which, when so executed,
          shall
          be deemed to be an original; such counterparts, together, shall constitute
          one
          and the same agreement. Subject to Section 7.02, this Agreement shall inure
          to
          the benefit of and be binding upon the Seller and the Purchaser and their
          respective successors and assigns.

         

        SECTION
          12.15  Entire
          Agreement.

         

        Each
          of
          the parties to this Agreement acknowledges that no representations, agreements
          or promises were made to any of the other parties to this Agreement or
          any of
          its employees other than those representations, agreements or promises
          specifically contained herein. This Agreement and the related Purchase
          Price and
          Terms Letter set forth the entire understanding between the parties hereto
          and
          shall be binding upon all successors of all of the parties. In the event
          of any
          inconsistency between a Purchase Price and Terms Letter and this Agreement,
          this
          Agreement shall control.

         

        SECTION
          12.16  No
          Solicitation.

         

        From
          and
          after the related Closing Date, except as provided below, the Seller agrees
          that
          it will not take any action or permit or cause any action to be taken by
          any of
          its agents or affiliates, or by any independent contractors on the Seller’s
          behalf, in any manner to solicit the borrower or obligor under any Mortgage
          Loan
          to refinance the Mortgage Loan, in whole or in part, without the prior
          written
          consent of the Purchaser. It is understood and agreed that all rights and
          benefits relating to the solicitation of any Mortgagors to refinance any
          Mortgage Loans and the attendant rights, title and interest in and to the
          list
          of such Mortgagors and data relating to their Mortgages (including insurance
          renewal dates) shall be transferred to the Purchaser pursuant hereto on
          the
          related Closing Date and the Seller shall take no action to undermine these
          rights and benefits. Notwithstanding the foregoing, it is understood and
          agreed
          that the following promotions or solicitations undertaken by the Seller
          or any
          affiliate of the Seller shall not be prohibited under this Section 11.16:
          (i)
          promotions or solicitations that are directed to the general public at
          large or
          segments thereof, provided that no segment shall consist primarily of the
          borrowers or obligors under the Mortgage Loans, including, without limitation,
          mass mailing based on commercially acquired mailing lists, newspaper, radio
          and
          television advertisements; (ii) responding to Mortgagor requests for pay-off
          information and regarding other bank or financial products or services;
          and
          (iii) promotions or solicitations to any Mortgagor for any other bank or
          financial products or services, unless such promotions or solicitations
          are for
          a prepayment of a Mortgage Loan.

         

        SECTION
          12.17  Costs.

         

        The
          Purchaser shall pay any commissions due its salesmen, the expenses of its
          accountants and attorneys and the expenses and fees of any broker retained
          by
          the Purchaser with respect to the transactions covered by this Agreement.
          To the
          extent not otherwise provided herein, all other costs and expenses incurred
          in
          connection with the transfer and delivery of the Mortgage Loans, including,
          without limitation, fees for recording intervening assignments of mortgage
          and
          Assignments of Mortgage, the cost of obtaining tax service contracts and
          the
          legal fees and expenses of its attorneys shall be paid by the Seller. The
          Seller
          shall be responsible for causing the recordation of all Assignments of
          Mortgage
          and all intervening assignments of mortgage, as applicable.

         

        SECTION
          12.18  Protection
          of Mortgagor Personal Information.

         

        Each
          of
          the Purchaser and the Seller agree that it (i) shall comply with any applicable
          laws and regulations regarding the privacy and security of Mortgagor Personal
          Information, (ii) shall not use Mortgagor Personal Information in any manner
          inconsistent with any applicable laws and regulations regarding the privacy
          and
          security of Mortgagor Personal Information, (iii) shall not disclose Mortgagor
          Personal Information to third parties except at the specific written direction
          of the other; provided,
          however,
          that the
          Purchaser and the Seller may disclose Mortgagor Personal Information to
          third
          parties in connection with secondary market transactions to the extent
          not
          prohibited by applicable law or to the extent required by a valid and effective
          subpoena issued by a court of competent jurisdiction or other governmental
          body,
          (iv) shall maintain adequate physical, technical and administrative safeguards
          to protect Mortgagor Personal Information from unauthorized access and
          (v) shall immediately notify the other of any actual or suspected breach of
          the confidentiality of Mortgagor Personal Information.

         

        SECTION
          12.19  Compliance
          With Regulation AB.

         

        In
          order
          to facilitate compliance with Regulation AB promulgated under the Securities
          Act, the Seller and the Purchaser agree to comply with the provisions of
          the
          Regulation AB Compliance Addendum attached hereto as Addendum
          I.
          

         

        

        
 

        [SIGNATURE
          PAGE TO FOLLOW]

         

         

         

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

        
          	 	 	 
	 	
                  NOMURA
                    CREDIT & CAPITAL, INC.,

                  as
                    Purchaser

                
	 
 	 
 	 
 
	 	 	
                  By: ____________________________________________

                   

                
	 	
                  Name:__________________________________________

                   

                
	 	Title:______________________________________

         

        
          	
                	 	 
	 	
                  WACHOVIA
                    MORTGAGE 

                  CORPORATION,
                    as Seller

                
	 
 	 
 	 
 
	 	 	
                  By: ____________________________________________

                   

                
	 	
                  Name:__________________________________________

                   

                
	 	Title:______________________________________

        

         

         

         

         

        

        [Signature
          Page to Seller’s Purchase, Warranties and Servicing Agreement, dated as of March
          1, 2006]

         

        

        Exhibit
          A-1

         

        Contents
          of Mortgage File

         

        With
          respect to each Mortgage Loan, the Mortgage File shall include each of
          the
          following items, which shall be available for inspection by the Purchaser,
          and
          which shall be retained by the Seller in the Servicing File or delivered
          to the
          Purchaser or its designee pursuant to Sections 2.04 and 2.05 of the Seller’s
          Purchase, Warranties and Servicing Agreement.

         

        1. The
          original Mortgage Note, with all applicable riders, endorsed “Pay to the order
          of ___________________ without recourse,” and signed in the name of the Seller
          by an authorized officer, with all intervening endorsements showing a complete
          chain of title from the originator to the Seller. If the Mortgage Loan
          was
          acquired by the Seller in a merger, the endorsement must be by “[Seller],
          successor by merger to the [name of predecessor]”. If the Mortgage Loan was
          acquired or originated by the Seller while doing business under another
          name,
          the endorsement must be by “[Seller] formerly known as [previous name]”. If the
          original note is unavailable, seller will provide an affidavit of lost
          note (in
          form acceptable to the Purchaser) stating that the original Mortgage Note
          was
          lost or destroyed, together with a copy of such Mortgage Note and indemnifying
          the Purchaser against any and all claims arising as a result of any person
          or
          entity claiming they are the holder of the note or that the note has been
          paid
          off and returned.

         

        2. A
          true
          certified copy, certified by the [title insurer], of the applicable First
          Lien.

         

        3. Except
          as
          provided below and for each Mortgage Loan that is not a MERS Mortgage Loan,
          the
          original Mortgage, with all applicable riders, with evidence of recording
          thereon, or a copy thereof certified by the public recording office in
          which
          such mortgage has been recorded or, if the original Mortgage has not been
          returned from the applicable public recording office, a true certified
          copy,
          certified by the [title insurer], of the original Mortgage together with
          a
          certificate of the Seller certifying that the original Mortgage has been
          delivered for recording in the appropriate public recording office of the
          jurisdiction in which the Mortgaged Property is located and in the case
          of each
          MERS Mortgage Loan, the original Mortgage, noting the presence of the MIN
          of the
          Mortgage Loans and either language indicating that the Mortgage Loan is
          a MOM
          Loan or if the Mortgage Loan was not a MOM Loan at origination, the original
          Mortgage and the assignment thereof to MERS, with evidence of recording
          indicated thereon, or a copy of the Mortgage certified by the public recording
          office in which such Mortgage has been recorded.

         

        4. The
          original or certified to be a true copy or if in electronic form identified
          on
          the Mortgage Loan Schedule, the certificate number, certified by the Seller,
          of
          the related Primary Mortgage Insurance Policy, if required.

         

        5. In
          the
          case of each Mortgage Loan that is not a MERS Mortgage Loan, the original
          Assignment, from the Seller in accordance with Purchaser’s instructions, which
          assignment shall, but for any blanks requested by the Purchaser, be in
          form and
          substance acceptable for recording, or a copy certified by the Seller as
          a true
          and correct copy of the original Assignment which has been sent for recordation.
          If the Mortgage Loan was acquired or originated by the Seller while doing
          business under another name, the Assignment must be by “[Seller] formerly known
          as [previous name]”.

         

        6. With
          respect to Mortgage Loans that are not Co-op Loans, the original policy
          of title
          insurance, including riders and endorsements thereto, or if the policy
          has not
          yet been issued, a written commitment or interim binder or preliminary
          report of
          title issued by the title insurance or escrow company.

         

        7. Originals
          of all recorded intervening Assignments, or copies thereof, certified by
          the
          public recording office in which such Assignments have been recorded showing
          a
          complete chain of title from the originator to the Seller, with evidence
          of
          recording thereon, or a copy thereof certified by the public recording
          office in
          which such Assignment has been recorded or, if the original Assignment
          has not
          been returned from the applicable public recording office, a true certified
          copy, certified by the [title insurer] of the original Assignment together
          with
          a certificate of the [title insurer] certifying that the original Assignment
          has
          been delivered for recording in the appropriate public recording office
          of the
          jurisdiction in which the Mortgaged Property is located.

         

        8. Originals,
          or copies thereof certified by the public recording office in which such
          documents have been recorded, of each assumption, extension, modification,
          written assurance or substitution agreements, if applicable, or if the
          original
          of such document has not been returned from the applicable public recording
          office, a true certified copy, certified by the [title insurer], of such
          original document together with certificate of Seller certifying the original
          of
          such document has been delivered for recording in the appropriate recording
          office of the jurisdiction in which the Mortgaged Property is
          located.

         

        9. If
          the
          Mortgage Note or Mortgage or any other material document or instrument
          relating
          to the Mortgage Loan has been signed by a person on behalf of the Mortgagor,
          the
          original power of attorney or other instrument that authorized and empowered
          such person to sign bearing evidence that such instrument has been recorded,
          if
          so required in the appropriate jurisdiction where the Mortgaged Property
          is
          located (or, in lieu thereof, a duplicate or conformed copy of such instrument,
          together with a certificate of receipt from the recording office, certifying
          that such copy represents a true and complete copy of the original and
          that such
          original has been or is currently submitted to be recorded in the appropriate
          governmental recording office of the jurisdiction where the Mortgaged Property
          is located), or if the original power of attorney or other such instrument
          has
          been delivered for recording in the appropriate public recording office
          of the
          jurisdiction in which the Mortgaged Property is located.

         

        10. With
          respect to a Co-op Loan: (i) a copy of the Co-op Lease and the assignment
          of
          such Co-op Lease to the originator of the Mortgage Loan, with all intervening
          assignments showing a complete chain of title and an assignment thereof
          by
          Seller; (ii) the stock certificate together with an undated stock power
          relating
          to such stock certificate executed in blank; (iii) the recognition agreement
          in
          substantially the same form as standard a “AZTECH” form; (iv) copies of the
          financial statement filed by the originator as secured party and, if applicable,
          a filed UCC-3 Assignment of the subject security interest showing a complete
          chain of title, together with an executed UCC-3 Assignment of such security
          interest by the Seller in a form sufficient for filing.

         

        11. The
          original of any guarantee executed in connection with the Mortgage
          Note.

         

        Notwithstanding
          anything to the contrary herein, the Seller may provide one certificate
          for all
          of the Mortgage Loans indicating that the documents were delivered for
          recording.

         

        

        Exhibit
          A-2

         

        Contents
          of Servicing File

         

        With
          respect to each Mortgage Loan, the Servicing File shall include each of
          the
          following items, which shall be available for inspection by the
          Purchaser:

         

        1. Mortgage
          Loan closing statement (Form HUD-1) and any other truth-in-lending or real
          estate settlement procedure forms required by law.

         

        2. Residential
          loan application.

         

        3. Uniform
          underwriter and transmittal summary (Fannie Mae Form 1008) or reasonable
          equivalent.

         

        4. Credit
          report on the mortgagor.

         

        5. Business
          credit report, if applicable.

         

        6. Residential
          appraisal report and attachments thereto.

         

        7. Verification
          of employment and income except for Mortgage Loans originated under a Limited
          Documentation Program, all in accordance with Seller’s Underwriting
          Standards.

         

        8. Verification
          of acceptable evidence of source and amount of down payment, in accordance
          with
          the Underwriting Standards.

         

        9. Photograph
          of the Mortgaged Property (may be part of appraisal).

         

        10. Survey
          of
          the Mortgaged Property, if any.

         

        11. Sales
          contract, if applicable.

         

        12. If
          available, termite report, structural engineer’s report, water portability and
          septic certification.

         

        13. Any
          original security agreement, chattel mortgage or equivalent executed in
          connection with the Mortgage.

         

        14. Any
          ground lease, including all amendments, modifications and supplements
          thereto.

         

        15. Any
          other
          document required to service the Mortgage Loans.

         

        

        Exhibit
          B

         

        Form
          of Custodial Account Letter Agreement

         

        __________________
          , 200_

         

        To:

         

        As
          “Seller” under the Seller’s Purchase, Warranties and Servicing Agreement, dated
          as of March 1, 2006 (the “Agreement”), we hereby authorize and request you to
          establish an account, as a Custodial Account pursuant to Section 4.04 of
          the
          Agreement, to be designated as “Wachovia Mortgage Corporation, in trust for the
          Purchaser, owner of various whole loan series - principal and interest”. All
          deposits in the account shall be subject to withdrawal therefrom by order
          signed
          by the Seller. This letter is submitted to you in duplicate. Please execute
          and
          return one original to us.

        
          	
                	 	 
	 	
                  
                    WACHOVIA
                      MORTGAGE CORPORATION,

                    as
                      SELLER

                  

                
	 
 	 
 	 
 
	 	 	
                  By: ____________________________________________

                   

                
	 	
                  Name:__________________________________________

                   

                
	 	Title:______________________________________

           

        

        

        The
          undersigned, as “Depository,” hereby certifies that the above described account
          has been established under Account Number ______________, at the office
          of the
          depository indicated above, and agrees to honor withdrawals on such account
          as
          provided above.

        
          
            	
                  	 	 
	 	
                    _______________________________________________

                  
	 
 	 
 	 
 
	 	 	
                    By: ____________________________________________

                     

                  
	 	
                    Name:__________________________________________

                     

                  
	 	Title:______________________________________

          

          
 

        

        Exhibit
          C

         

        Form
          of Escrow Account Letter Agreement

         

        _____________________,
          200_

         

        To:

         

        As
          “Seller” under the Seller’s Purchase, Warranties and Servicing Agreement, dated
          as of March 1, 2006 (the “Agreement”), we hereby authorize and request you to
          establish an account, as an Escrow Account pursuant to Section 4.06 of
          the
          Agreement, to be designated as “Wachovia Mortgage Corporation, in trust for the
          Purchaser, owner of various whole loan series, and various Mortgagors.” All
          deposits in the account shall be subject to withdrawal therefrom by order
          signed
          by the Seller. This letter is submitted to you in duplicate. Please execute
          and
          return one original to us.

        
          	
                
	 	
                  
                    
                      WACHOVIA
                        MORTGAGE CORPORATION,

                      as
                        SELLER

                    

                  

                
	 
 	 
 	 
 
	 	 	
                  By: ____________________________________________

                   

                
	 	
                  Name:__________________________________________

                   

                
	 	Title:______________________________________

        

        
 

        The
          undersigned, as “Depository,” hereby certifies that the above described account
          has been established under Account Number ______________, at the office
          of the
          depository indicated above, and agrees to honor withdrawals on such account
          as
          provided above.

        
          	
                	 	 
	 	
                   

                
	 
 	 
 	 
 
	 	 	
                  By: ____________________________________________

                   

                
	 	
                  Name:__________________________________________

                   

                
	 	Title:______________________________________

        

         

        Exhibit
          D

         

        Form
          of Assignment, Assumption and Recognition Agreement

         

        This
          Assignment, Assumption and Recognition Agreement (this “Assignment Agreement”),
          dated as of _________, between Nomura Credit & Capital, Inc., a
          [_____________] corporation (the “Assignor”), ______________________, a ________
          corporation (the “Assignee”), and Wachovia Mortgage Corporation, a North
          Carolina corporation (the “Seller”):

         

        For
          good
          and valuable consideration the receipt and sufficiency of which hereby
          are
          acknowledged, and of the premises and mutual covenants herein contained,
          the
          parties hereto hereby agree as follows:

         

        1. The
          Assignor hereby grants, transfers and assigns to Assignee all of the right,
          title and interest of Assignor, as Purchaser, in, to and under (a) those
          certain
          mortgage loans listed on Exhibit A attached hereto (the “Mortgage Loans”); and
          (b) the Seller’s Purchase, Warranties and Servicing Agreement dated as of March
          1, 2006, but only to the extent of the Mortgage Loans (the “Purchase
          Agreement”). For purposes of this Assignment Agreement, the term “Purchase
          Agreement” includes any separate Assignment and Conveyance pursuant to which
          Seller and Assignor effectuated the purchase and sale of any Mortgage Loan
          following the execution and delivery of the Seller’s Purchase, Warranties and
          Servicing Agreement dated as of March 1, 2006.

         

        The
          Assignor specifically reserves and does not assign to the Assignee hereunder
          any
          and all right, title and interest in, to and under any all obligations
          of the
          Assignor with respect to any mortgage loans subject to the Purchase Agreement
          which are not the Mortgage Loans set forth on Exhibit A attached hereto
          and are
          not the subject of this Assignment Agreement.

         

        2. Each
          of
          the Seller and the Assignor represent and warrant to the Assignee that
          (a) the
          copy of the Purchase Agreement, attached hereto as Exhibit B, provided
          to the
          Assignee, is a true, complete and accurate copy of the Purchase Agreement,
          (b)
          the Purchase Agreement is in full force and effect as of the date hereof,
          (c)
          the provisions thereof have not been waived, amended or modified in any
          respect,
          nor have any notices of termination been given thereunder, (d) the Purchase
          Agreement contains all of the terms and conditions governing the sale of
          the
          Mortgage Loans by Seller to Assignor and the purchase of the Mortgage Loans
          by
          Assignor from Seller; provided,
          however,
          that
          the date of purchase and sale and the amount of payment for the Mortgage
          Loans
          may be set out in a Purchase Price and Terms Letter, as defined in the
          Purchase
          Agreement, and (e) Seller sold, conveyed and transferred each Mortgage
          Loan to
          Assignor pursuant to the Purchase Agreement.

         

        3. The
          Assignor warrants and represents to, and covenants with, the Assignee and
          the
          Seller that:

         

        (a) As
          of the
          date hereof, the Assignor is not in default under the Purchase
          Agreement;

         

        (b) The
          Assignor is the lawful owner of the Mortgage Loans with the full right
          to
          transfer the Mortgage Loans and any and all of its interests, rights and
          obligations under the Purchase Agreement, free from any and all claims
          and
          encumbrances arising out of the Assignor’s ownership thereof, and the Mortgage
          Loans, as well as the Purchase Agreement, upon the transfer thereof to
          the
          Assignee as contemplated herein, shall be free and clear of all such liens,
          claims and encumbrances or any lien claim or encumbrance arising out of
          the
          ownership of the Mortgage Loans by any person at any time after Assignor
          first
          acquired any Mortgage Loan from the Seller;

         

        (c) The
          Assignor has not received notice of, and has no knowledge of, any offsets,
          counterclaims or other defenses available to the Seller with respect to
          the
          Purchase Agreement or the Mortgage Loans;

         

        (d) The
          Assignor has not waived or agreed to any waiver under, or agreed to any
          amendment or other modification of, the Purchase Agreement or the Mortgage
          Loans. The Assignor has no knowledge of, and has not received notice of,
          any
          waivers under or amendments or other modifications of, or assignments of
          rights
          or obligations under or defaults under, the Purchase Agreement, or the
          Mortgage
          Loans;

         

        (e) The
          Assignor is a corporation duly organized, validly existing and in good
          standing
          under the laws of the jurisdiction of its incorporation, and has all requisite
          corporate power and authority to sell, transfer and assign the Mortgage
          Loans;

         

        (f) The
          Assignor has full corporate power and authority to execute, deliver and
          perform
          under this Assignment Agreement, and to consummate the transactions set
          forth
          herein. The consummation of the transactions contemplated by this Assignment
          Agreement is in the ordinary course of the Assignor’s business and will not
          conflict with, or result in a breach of, any of the terms, conditions or
          provisions of the Assignor’s charter or by-laws, or any legal restriction, or
          any material agreement or instrument to which the Assignor is now a party
          or by
          which it is bound, or result in the violation of any law, rule, regulation,
          order, judgment or decree to which the Assignor or its property is subject.
          The
          execution, delivery and performance by the Assignor of this Assignment
          Agreement, and the consummation by it of the transactions contemplated
          hereby,
          have been duly authorized by all necessary corporate action of the Assignor.
          This Assignment Agreement has been duly executed and delivered by the Assignor
          and constitutes the valid and legally binding obligation of the Assignor
          enforceable against the Assignor in accordance with its respective terms
          except
          as enforceability thereof may be limited by bankruptcy, insolvency, or
          reorganization or other similar laws now or hereinafter in effect relating
          to
          creditor’s rights generally and by general principles of equity, regardless of
          whether such enforceability is considered in a proceeding in equity or
          in
          law;

         

        (g) No
          material consent, approval, order or authorization of, or declaration,
          filing or
          registration with, any governmental entity is required to be obtained or
          made by
          the Assignor in connection with the execution, delivery or performance
          by the
          Assignor of this Assignment Agreement, or the consummation by it of the
          transactions contemplated hereby; and

         

        (h) The
          Assignor has paid the purchase price for the Mortgage Loans and has satisfied
          any conditions to closing required of it under the terms of the Purchase
          Agreement.

         

      

      4. The
        Assignee warrants and represents to, and covenants with, the Assignor and
        the
        Seller that:

       

      (a) The
        Assignee is a corporation duly organized, validly existing and in good standing
        under the laws of the jurisdiction of its incorporation, and has all requisite
        corporate power and authority to acquire, own and purchase the Mortgage
        Loans;

       

      (b) The
        Assignee has full corporate power and authority to execute, deliver and perform
        under this Assignment Agreement, and to consummate the transactions set forth
        herein. The consummation of the transactions contemplated by this Assignment
        Agreement is in the ordinary course of the Assignee’s business and will not
        conflict with, or result in a breach of, any of the terms, conditions or
        provisions of the Assignee’s charter or by-laws, or any legal restriction, or
        any material agreement or instrument to which the Assignee is now a party
        or by
        which it is bound, or result in the violation of any law, rule, regulation,
        order, judgment or decree to which the Assignee or its property is subject.
        The
        execution, delivery and performance by the Assignee of this Assignment
        Agreement, and the consummation by it of the transactions contemplated hereby,
        have been duly authorized by all necessary corporate action of the Assignee.
        This Assignment Agreement has been duly executed and delivered by the Assignee
        and constitutes the valid and legally binding obligation of the Assignee
        enforceable against the Assignee in accordance with its respective terms
        except
        as enforceability thereof may be limited by bankruptcy, insolvency, or
        reorganization or other similar laws now or hereinafter in effect relating
        to
        creditor’s rights generally and by general principles of equity, regardless of
        whether such enforceability is considered in a proceeding in equity or in
        law;

       

      (c) No
        material consent, approval, order or authorization of, or declaration, filing
        or
        registration with, any governmental entity is required to be obtained or
        made by
        the Assignee in connection with the execution, delivery or performance by
        the
        Assignee of this Assignment Agreement, or the consummation by it of the
        transactions contemplated hereby; and

       

      (d) The
        Assignee agrees to be bound, as Purchaser, by all of the terms, covenants
        and
        conditions of the Purchase Agreement and the Mortgage Loans, and from and
        after
        the date hereof, the Assignee assumes for the benefit of each of the Seller
        and
        the Assignor all of the Assignor’s obligations as Purchaser thereunder, with
        respect to the Mortgage Loans.

       

      5. The
        Seller warrants and represents to, and covenants with, the Assignor and the
        Assignee that:

       

      (a) The
        Seller is not a natural person or a general partnership and is duly organized,
        validly existing and in good standing under the laws of the jurisdiction
        of its
        formation, and has all requisite power and authority to service the Mortgage
        Loans;

       

      (b) The
        Seller has full power and authority to execute, deliver and perform under
        this
        Assignment Agreement, and to consummate the transactions set forth herein.
        The
        consummation of the transactions contemplated by this Assignment Agreement
        is in
        the ordinary course of the Seller’s business and will not conflict with, or
        result in a breach of, any of the terms, conditions or provisions of the
        Seller’s charter or by-laws, or any legal restriction, or any material agreement
        or instrument to which the Seller is now a party or by which it is bound,
        or
        result in the violation of any law, rule, regulation, order, judgment or
        decree
        to which the Seller or its property is subject. The execution, delivery and
        performance by the Seller of this Assignment Agreement, and the consummation
        by
        it of the transactions contemplated hereby, have been duly authorized by
        all
        necessary corporate action of the Seller. This Assignment Agreement has been
        duly executed and delivered by the Seller and constitutes the valid and legally
        binding obligation of the Seller enforceable against the Seller in accordance
        with its respective terms except as enforceability thereof may be limited
        by
        bankruptcy, insolvency, or reorganization or other similar laws now or
        hereinafter in effect relating to creditors’ rights generally and by general
        principles of equity, regardless of whether such enforceability is considered
        in
        a proceeding in equity or in law;

       

      (d) No
        material consent, approval, order or authorization of, or declaration, filing
        or
        registration with, any governmental entity is required to be obtained or
        made by
        the Seller in connection with the execution, delivery or performance by the
        Seller of this Assignment Agreement, or the consummation by it of the
        transactions contemplated hereby;

       

      (e) As
        of the
        date hereof, the Seller is not in default under the Purchase Agreement;
        and

       

      (f) No
        event
        has occurred or has failed to occur, during the period commencing on date
        on
        which Assignor acquired the Mortgage Loans and ending on the date hereof,
        inclusive, which would make the representations and warranties set forth
        in
        Section 3.01 of the Purchase Agreement untrue if such representations and
        warranties were made with respect to the Mortgage Loans effective as of the
        date
        hereof.

       

      6. From
        and
        after the date hereof, the Seller shall recognize the Assignee as the owner
        of
        the Mortgage Loans, and shall look solely to the Assignee for performance
        from
        and after the date hereof of the Assignor’s obligations with respect to the
        Mortgage Loans.

       

      7. Notice
        Addresses.

       

      (a) The
        Assignee’s address for purposes of all notices and correspondence related to the
        Mortgage Loans and this Assignment Agreement is:

       

      ________________

      ________________

      ________________

      Attention:
        ________________

       

      (b) The
        Assignor’s address for purposes for all notices and correspondence related to
        the Mortgage Loans and this Assignment Agreement is:

       

      Nomura
        Credit & Capital, Inc. 

      [_____________________________]

      [_____________________________]

      [_____________________________]

      Attention:
        _______________

       

      (c) The
        Seller’s address for purposes of all notices and correspondence related to the
        Mortgage Loans and this Assignment Agreement is:

       

      Wachovia
        Mortgage Corporation

      1100
        Corporate Center Drive

      Raleigh,
        North Carolina 27607

      Attention:
        Tom Fowler

       

      8. This
        Assignment Agreement shall be construed in accordance with the substantive
        laws
        of the State of New York (without regard to conflict of laws principles)
        and the
        obligations, rights and remedies of the parties hereunder shall be determined
        in
        accordance with such laws, except to the extent preempted by federal
        law.

       

      9. This
        Assignment Agreement shall inure to the benefit of the successors and assigns
        of
        the parties hereto. Any entity into which the Seller, the Assignor or the
        Assignee may be merged or consolidated shall, without the requirement for
        any
        further writing, be deemed the Seller, the Assignor or the Assignee,
        respectively, hereunder.

       

      10. No
        term
        or provision of this Assignment Agreement may be waived or modified unless
        such
        waiver or modification is in writing and signed by the party against whom
        such
        waiver or modification is sought to be enforced.

       

      11. This
        Assignment Agreement shall survive the conveyance of the Mortgage Loans and
        the
        assignment of the Purchase Agreement by the Assignor.

       

      12. Notwithstanding
        the assignment of the Purchase Agreement by either the Assignor or Assignee,
        this Assignment Agreement shall not be deemed assigned by the Seller or the
        Assignor unless assigned by separate written instrument.

       

      13. For
        the
        purpose for facilitating the execution of this Assignment Agreement as herein
        provided and for other purposes, this Assignment Agreement may be executed
        simultaneously in any number of counterparts, each of which counterparts
        shall
        be deemed to be an original, and such counterparts shall constitute and be
        one
        and the same instrument.

       

      

      [signatures
        on following page]

       

      

      IN
        WITNESS WHEREOF, the parties have caused this Assignment Agreement to be
        executed by their duly authorized officers as of the date first above
        written.

      
        	 	 	 
	 	
                Nomura
                  Credit & Capital, Inc.

                Assignor

              
	 
 	 
 	 
 
	 	  	By:___________________________________
	 	Name:_________________________________
	 	
                Title:______________________________

                 

                
                  [______________________________________]

                  Assignee

                   

                  By:___________________________________

                  Name:_________________________________

                  Title:______________________________

                

              

      

      
        	 	 	
                 

                 

              
	 	
                Wachovia
                  Mortgage Corporation

                Seller

              
	
                
 

              	 
 	 
	 	 	By:___________________________________
	 	Name:_________________________________
	 	Title:______________________________

      

       

      

      Exhibit
        E

       

      Form
        of Assignment and Conveyance

       

      On
        this
        ____ day of ________, 200_, Wachovia Mortgage Corporation (“Wachovia”) as the
        Seller under that certain Seller’s Purchase, Warranties and Servicing Agreement,
        dated as of March 1, 2006 (the “Agreement”), by and between Wachovia and Nomura
        Credit & Capital, Inc. (the “Purchaser”) does hereby sell, transfer, assign,
        set over and convey to the Purchaser under the Agreement, without recourse,
        but
        subject to the terms of the Agreement, all rights, title and interest of
        Wachovia (excluding the right to service the Mortgage Loans) in and to the
        Mortgage Loans listed on the Mortgage Loan Schedule attached hereto as
Exhibit
        A,
        together with the Mortgage Files and all rights and obligations arising under
        the documents contained therein. Pursuant to Section 2.07 of the Agreement,
        Wachovia has delivered to the Purchaser the documents for each Mortgage Loan
        to
        be purchased as set forth therein. The contents of each Servicing File required
        to be retained by Wachovia to service the Mortgage Loans pursuant to the
        Agreement and thus not delivered to the Purchaser are and shall be held in
        trust
        by Wachovia, for the benefit of the Purchaser as the owner thereof. Wachovia’s
        possession of any portion of the Servicing File is at the will of the Purchaser
        for the sole purpose of facilitating servicing of the related Mortgage Loan
        pursuant to the Agreement, and such retention and possession by Wachovia
        shall
        be in a custodial capacity only. The ownership of each Mortgage Note, Mortgage,
        and the contents of the Mortgage File and Servicing File is vested in the
        Purchaser and the ownership of all records and documents with respect to
        the
        related Mortgage Loan prepared by or which come into the possession of Wachovia
        shall immediately vest in the Purchaser and shall be retained and maintained,
        in
        trust, by Wachovia at the will of the Purchaser in such custodial capacity
        only.

      
 

      Capitalized
        terms used herein and not otherwise defined shall have the meanings set forth
        in
        the Agreement.

      
        	 	 	 
	 	
                WACHOVIA
                  MORTGAGE
                  

                CORPORATION

              
	 
 	 
 	 
 
	 	 	By:______________________________________________
	 	
                 

              
	 	
                Name:____________________________________________

                 

                Title:_____________________________________________

              

      

       

      

      Exhibit
        F

       

      Request
        for Release of Documents and Receipt

       

      RE: Mortgage
        Loan #___________________________________

      BORROWER: __________________________________________________

      PROPERTY:
         __________________________________________________

       

      Pursuant
        to a Seller’s Purchase, Warranties and Servicing Agreement (the “Agreement”)
        between the Seller and the Purchaser, the undersigned hereby certifies that
        he
        or she is an officer of the Seller requesting release of the documents for
        the
        reason specified below. The undersigned further certifies that:

       

      (Check
        one of the items below)

      

      
        	
                _____

              	
                On
                  _________________, the above captioned mortgage loan was paid in
                  full or
                  the Seller has been notified that payment in full has been or will
                  be
                  escrowed. The Seller hereby certifies that all amounts with respect
                  to
                  this loan which are required under the Agreement have been or will
                  be
                  deposited in the Custodial Account as required.

              
	
                _____

              	
                The
                  above captioned loan is being repurchased pursuant to the terms
                  of the
                  Agreement. The Seller hereby certifies that the repurchase price
                  has been
                  credited to the Custodial Account as required under the
                  Agreement.

              
	
                _____

              	
                The
                  above captioned loan is being placed in foreclosure and the original
                  documents are required to proceed with the foreclosure action.
                  The Seller
                  hereby certifies that the documents will be returned to the Purchaser
                  in
                  the event of reinstatement.

              
	
                _____

                 

              	
                Other
                  (explain)

                 

              
	 	
                _______________________________________________________

                _______________________________________________________

              

      

      

      All
        capitalized terms used herein and not defined shall have the meanings assigned
        to them in the Agreement.

       

      Based
        on
        this certification and the indemnities provided for in the Agreement, please
        release to the Seller all original mortgage documents in your possession
        relating to this loan.

       

      Dated:_________________  By:________________________________

      Signature

      ___________________________________

      Title

      Send
        documents to: _____________________________________________

          
        _____________________________________________

                          
        _____________________________________________

       

      Acknowledgment:

       

      Purchaser
        hereby acknowledges that all original documents previously released on the
        above
        captioned mortgage loan have been returned and received by the
        Purchaser.

       

      Dated:________________  By:________________________________

      Signature

                            
        Title:____________________________

       

       

      ATTACHMENT
        3

       

      EXHIBIT
        G

       

      STANDARD
        FILE LAYOUT- SCHEDULED/SCHEDULED

       

      
        	Exhibit 1:
                Standard File Layout - Master Servicing

      

      
        	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	
                 

              	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	
                 

              	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  servicer's fee rate for a loan as reported by the Servicer.
                  

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  servicer's fee amount for a loan as reported by the Servicer.
                  

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer. 

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment amount.
                  

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                 

              	
                 

              	
                 

              	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO 

              	
                2

              
	
                ACTION_CODE

              	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	
                 

              	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              

      

       

      

      STANDARD
        FILE LAYOUT- DELINQUENCY REPORTING

       

      
        	Exhibit 1: Standard
                File Layout - Delinquency
                Reporting

      

       

      
        	
                Column/Header
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR

              	 	
                 

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the originator.

              	 	
                 

              
	
                CLIENT_NBR

              	
                Servicer
                  Client Number

              	 	 
	
                SERV_INVESTOR_NBR

              	
                Contains
                  a unique number as assigned by an external servicer to identify
                  a group of
                  loans in their system.

              	 	
                 

              
	
                BORROWER_FIRST_NAME

              	
                First
                  Name of the Borrower.

              	 	 
	
                BORROWER_LAST_NAME

              	
                Last
                  name of the borrower.

              	 	 
	
                PROP_ADDRESS

              	
                Street
                  Name and Number of Property

              	 	
                 

              
	
                PROP_STATE

              	
                The
                  state where the property located.

              	 	
                 

              
	
                PROP_ZIP

              	
                Zip
                  code where the property is located.

              	 	
                 

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date that the borrower's next payment is due to the servicer at
                  the end of
                  processing cycle, as reported by Servicer.

              	 	
                MM/DD/YYYY

              
	
                LOAN_TYPE

              	
                Loan
                  Type (i.e. FHA, VA, Conv)

              	 	
                 

              
	
                BANKRUPTCY_FILED_DATE

              	
                The
                  date a particular bankruptcy claim was filed.

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_CHAPTER_CODE

              	
                The
                  chapter under which the bankruptcy was filed.

              	 	
                 

              
	
                BANKRUPTCY_CASE_NBR

              	
                The
                  case number assigned by the court to the bankruptcy
                  filing.

              	 	
                 

              
	
                POST_PETITION_DUE_DATE

              	
                The
                  payment due date once the bankruptcy has been approved by the
                  courts

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_DCHRG_DISM_DATE

              	
                The
                  Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                  Discharged
                  and/or a Motion For Relief Was Granted. 

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_APPR_DATE

              	
                The
                  Date The Loss Mitigation Was Approved By The Servicer

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_TYPE

              	
                The
                  Type Of Loss Mitigation Approved For A Loan Such As;

              	 	 
	
                LOSS_MIT_EST_COMP_DATE

              	
                The
                  Date The Loss Mitigation /Plan Is Scheduled To End/Close

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_ACT_COMP_DATE

              	
                The
                  Date The Loss Mitigation Is Actually Completed

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_APPROVED_DATE

              	
                The
                  date DA Admin sends a letter to the servicer with instructions
                  to begin
                  foreclosure proceedings.

              	 	
                MM/DD/YYYY

              
	
                ATTORNEY_REFERRAL_DATE

              	
                Date
                  File Was Referred To Attorney to Pursue Foreclosure

              	 	
                MM/DD/YYYY

              
	
                FIRST_LEGAL_DATE

              	
                Notice
                  of 1st legal filed by an Attorney in a Foreclosure Action

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_EXPECTED_DATE

              	
                The
                  date by which a foreclosure sale is expected to occur.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_DATE

              	
                The
                  actual date of the foreclosure sale.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_AMT

              	
                The
                  amount a property sold for at the foreclosure sale.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                EVICTION_START_DATE

              	
                The
                  date the servicer initiates eviction of the borrower.

              	 	
                MM/DD/YYYY

              
	
                EVICTION_COMPLETED_DATE

              	
                The
                  date the court revokes legal possession of the property from the
                  borrower.

              	 	
                MM/DD/YYYY

              
	
                LIST_PRICE

              	
                The
                  price at which an REO property is marketed.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                LIST_DATE

              	
                The
                  date an REO property is listed at a particular price.

              	 	
                MM/DD/YYYY

              
	
                OFFER_AMT

              	
                The
                  dollar value of an offer for an REO property.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                OFFER_DATE_TIME

              	
                The
                  date an offer is received by DA Admin or by the Servicer.

              	 	
                MM/DD/YYYY

              
	
                REO_CLOSING_DATE

              	
                The
                  date the REO sale of the property is scheduled to close.

              	 	
                MM/DD/YYYY

              
	
                REO_ACTUAL_CLOSING_DATE

              	
                Actual
                  Date Of REO Sale

              	 	
                MM/DD/YYYY

              
	
                OCCUPANT_CODE

              	
                Classification
                  of how the property is occupied.

              	 	
                 

              
	
                PROP_CONDITION_CODE

              	
                A
                  code that indicates the condition of the property.

              	 	
                 

              
	
                PROP_INSPECTION_DATE

              	
                The
                  date a property inspection is performed.

              	 	
                MM/DD/YYYY

              
	
                APPRAISAL_DATE

              	
                The
                  date the appraisal was done.

              	 	
                MM/DD/YYYY

              
	
                CURR_PROP_VAL

              	
                 The
                  current "as is" value of the property based on brokers price opinion
                  or
                  appraisal.

              	
                2

              	
                 

              
	
                REPAIRED_PROP_VAL

              	
                The
                  amount the property would be worth if repairs are completed pursuant
                  to a
                  broker's price opinion or appraisal.

              	
                2

              	
                 

              
	
                If
                  applicable:

              	
                 

              	 	
                 

              
	
                DELINQ_STATUS_CODE

              	
                FNMA
                  Code Describing Status of Loan

              	 	 
	
                DELINQ_REASON_CODE

              	
                The
                  circumstances which caused a borrower to stop paying on a loan.
                  Code
                  indicates the reason why the loan is in default for this
                  cycle.

              	 	 
	
                MI_CLAIM_FILED_DATE

              	
                Date
                  Mortgage Insurance Claim Was Filed With Mortgage Insurance
                  Company.

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT

              	
                Amount
                  of Mortgage Insurance Claim Filed

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                MI_CLAIM_PAID_DATE

              	
                Date
                  Mortgage Insurance Company Disbursed Claim Payment

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT_PAID

              	
                Amount
                  Mortgage Insurance Company Paid On Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_FILED_DATE

              	
                Date
                  Claim Was Filed With Pool Insurance Company

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT

              	
                Amount
                  of Claim Filed With Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_PAID_DATE

              	
                Date
                  Claim Was Settled and The Check Was Issued By The Pool
                  Insurer

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT_PAID

              	
                Amount
                  Paid On Claim By Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_FILED_DATE

              	
                 Date
                  FHA Part A Claim Was Filed With HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_AMT

              	
                 Amount
                  of FHA Part A Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_PAID_DATE

              	
                 Date
                  HUD Disbursed Part A Claim Payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part A Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_FILED_DATE

              	
                  Date
                  FHA Part B Claim Was Filed With HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_AMT

              	
                  Amount
                  of FHA Part B Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_PAID_DATE

              	
                   Date
                  HUD Disbursed Part B Claim Payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part B Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                VA_CLAIM_FILED_DATE

              	
                 Date
                  VA Claim Was Filed With the Veterans Admin

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_DATE

              	
                 Date
                  Veterans Admin. Disbursed VA Claim Payment

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_AMT

              	
                 Amount
                  Veterans Admin. Paid on VA Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              

      

       

      
        	Exhibit 2: Standard
                File Codes - Delinquency
                Reporting

      

       

      The
        Loss
        Mit Type
        field
        should show the approved Loss Mitigation Code as follows: 

      
        
          	
                	·	
                  ASUM-Approved
                    Assumption

                

        

      

      
        
          	
                	·	
                  BAP-Borrower
                    Assistance Program

                

        

      

      
        
          	
                	·	
                  CO-
                    Charge Off

                

        

      

      
        
          	
                	·	
                  DIL-
                    Deed-in-Lieu

                

        

      

      
        
          	
                	·	
                  FFA-
                    Formal Forbearance Agreement

                

        

      

      
        
          	
                	·	
                  MOD-
                    Loan Modification

                

        

      

      
        
          	
                	·	
                  PRE-
                    Pre-Sale

                

        

      

      
        
          	
                	·	
                  SS-
                    Short Sale

                

        

      

      
        
          	
                	·	
                  MISC-Anything
                    else approved by the PMI or Pool
                    Insurer

                

        

      

       

      NOTE:
        Wells
        Fargo Bank will accept alternative Loss Mitigation Types to those above,
        provided that they are consistent with industry standards. If Loss Mitigation
        Types other than those above are used, the Servicer must supply Wells Fargo
        Bank
        with a description of each of the Loss Mitigation Types prior to sending
        the
        file.

       

      The
        Occupant
        Code
        field
        should show the current status of the property code as follows:

      
        
          	
                	·	
                  Mortgagor

                

        

      

      
        
          	
                	·	
                  Tenant

                

        

      

      
        
          	
                	·	
                  Unknown
                    

                

        

      

      
        
          	
                	·	
                  Vacant

                

        

      

       

      The
        Property
        Condition
        field
        should show the last reported condition of the property as follows:

      
        
          	
                	·	
                  Damaged

                

        

      

      
        
          	
                	·	
                  Excellent

                

        

      

      
        
          	
                	·	
                  Fair

                

        

      

      
        
          	
                	·	
                  Gone

                

        

      

      
        
          	
                	·	
                  Good

                

        

      

      
        
          	
                	·	
                  Poor

                

        

      

      
        
          	
                	·	
                  Special
                    Hazard

                

        

      

      
        
          	
                	·	
                  Unknown

                

        

      

      
         

         

        
          	Exhibit 2: Standard
                  File Codes - Delinquency Reporting, Continued

        

      

       

      The
        FNMA
        Delinquent Reason Code
        field
        should show the Reason for Delinquency as follows: 

       

      
        	
                Delinquency
                  Code

              	
                Delinquency
                  Description

              
	
                001

              	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	
                FNMA-Marital
                  difficulties

              
	
                006

              	
                FNMA-Curtailment
                  of income

              
	
                007

              	
                FNMA-Excessive
                  Obligation

              
	
                008

              	
                FNMA-Abandonment
                  of property

              
	
                009

              	
                FNMA-Distant
                  employee transfer

              
	
                011

              	
                FNMA-Property
                  problem

              
	
                012

              	
                FNMA-Inability
                  to sell property

              
	
                013

              	
                FNMA-Inability
                  to rent property

              
	
                014

              	
                FNMA-Military
                  Service

              
	
                015

              	
                FNMA-Other

              
	
                016

              	
                FNMA-Unemployment

              
	
                017

              	
                FNMA-Business
                  failure

              
	
                019

              	
                FNMA-Casualty
                  loss

              
	
                022

              	
                FNMA-Energy
                  environment costs

              
	
                023

              	
                FNMA-Servicing
                  problems

              
	
                026

              	
                FNMA-Payment
                  adjustment

              
	
                027

              	
                FNMA-Payment
                  dispute

              
	
                029

              	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	
                FNMA-Fraud

              
	
                031

              	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	
                FNMA-Incarceration

              

      

      

      

      

      Exhibit
        3: Calculation
        of Realized Loss/Gain Form 332- Instruction Sheet

      NOTE:
        Do not net or combine items. Show all expenses individually and all credits
        as
        separate line items. Claim packages are due on the remittance report date.
        Late
        submissions may result in claims not being passed until the following month.
        The
        Servicer is responsible to remit all funds pending loss approval and /or
        resolution of any disputed items. 

      

       

      The
        numbers on the 332 form correspond with the numbers listed
        below.

       

      Liquidation
        and Acquisition Expenses:

       

      
        	
              	1.	
                The
                  Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
                  an Amortization Schedule from date of default through liquidation
                  breaking
                  out the net interest and servicing fees advanced is
                  required.

              

      

       

      
        	
              	2.	
                The
                  Total Interest Due less the aggregate amount of servicing fee that
                  would
                  have been earned if all delinquent payments had been made as agreed.
                  For
                  documentation, an Amortization Schedule from date of default through
                  liquidation breaking out the net interest and servicing fees advanced
                  is
                  required.

              

      

       

      
        	
              	3.	
                Accrued
                  Servicing Fees based upon the Scheduled Principal Balance of the
                  Mortgage
                  Loan as calculated on a monthly basis. For documentation, an Amortization
                  Schedule from date of default through liquidation breaking out
                  the net
                  interest and servicing fees advanced is
                  required.

              

      

       

      
        	
              	4-12.	
                Complete
                  as applicable. Required
                  documentation:

              

      

       

      *
        For
        taxes and insurance advances - see page 2 of 332 form - breakdown required
        showing period

       

      of
        coverage, base tax, interest, penalty. Advances prior to default require
        evidence of servicer efforts to recover advances.

       

      *
        For
        escrow advances - complete payment history 

       

      (to
        calculate advances from last positive escrow balance forward)

       

      *
        Other
        expenses -  copies of corporate advance history showing all payments

       

      *
        REO
        repairs > $1500 require explanation

       

      *
        REO
        repairs >$3000 require evidence of at least 2 bids.

       

      *
        Short
        Sale or Charge Off require P&L supporting the decision and
        WFB’s approved Officer Certificate 

       

      *
        Unusual
        or extraordinary items may require further documentation. 

       

      13.    The
        total
        of lines 1 through 12.

       

      Credits:
        

       

      14-21. Complete
        as applicable. Required documentation:

       

      *
        Copy of
        the HUD 1 from the REO sale. If a 3rd
        Party
        Sale, bid instructions and Escrow
        Agent / Attorney

       

      Letter
        of
        Proceeds
        Breakdown.

       

      *
        Copy of
        EOB for any MI or gov't guarantee 

       

      *
        All
        other credits need to be clearly defined on the 332
        form      
     

       

      
        	 	
                22.

              	
                The
                  total of lines 14 through 21.

              

      

       

      
        	
              	Please
                Note:	
                For
                  HUD/VA loans, use line (18a) for Part A/Initial proceeds and line
                  (18b)
                  for Part B/Supplemental proceeds.

              

      

       

      Total
        Realized Loss (or Amount of Any Gain)

      
        	
              	23.	
                The
                  total derived from subtracting line 22 from 13. If the amount represents
                  a
                  realized gain, show
                  the amount in parenthesis ( ). 

              

      

      
        	 

      

      

        
          	Exhibit 3A: Calculation
                  of Realized Loss/Gain Form
                  332

        

      

       

      Prepared
        by: __________________                Date:
        _______________

      Phone:
        ______________________         Email
        Address:_____________________

      
        	 	 	 	 	 
	
                Servicer
                  Loan No.

                 

              	 	
                Servicer
                  Name

                 

              	 	
                Servicer
                  Address 

                 

                 

                 

                 

              

      

       

      WELLS
        FARGO BANK, N.A. Loan No._____________________________

       

      Borrower's
        Name: _________________________________________________________

      Property
        Address: _________________________________________________________

       

      Liquidation
        Type:   REO Sale  
        3rd
        Party Sale  Short
        Sale     Charge
        Off 

       

      Was
        this loan granted a Bankruptcy deficiency or cramdown  Yes      No

      If
“Yes”,
        provide deficiency or cramdown amount
        _______________________________

       

      Liquidation
        and Acquisition Expenses:

      
        
          	
                  (1)

                	
                  Actual
                    Unpaid Principal Balance of Mortgage Loan

                	
                  $
                    ______________

                	
                  (1)

                	 
	
                  (2)

                	
                  Interest
                    accrued at Net Rate

                	
                  ________________

                	
                  (2)

                	 
	
                  (3)

                	
                  Accrued
                    Servicing Fees

                	
                  ________________

                	
                  (3)

                	 
	
                  (4)

                	
                  Attorney's
                    Fees

                	
                  ________________

                	
                  (4)

                	 
	
                  (5)

                	
                  Taxes
                    (see page 2)

                	
                  ________________

                	
                  (5)

                	 
	
                  (6)

                	
                  Property
                    Maintenance

                	
                  ________________

                	
                  (6)

                	 
	
                  (7)

                	
                  MI/Hazard
                    Insurance Premiums (see page 2)

                	
                  ________________

                	
                  (7)

                	 
	
                  (8)

                	
                  Utility
                    Expenses

                	
                  ________________

                	
                  (8)

                	 
	
                  (9)

                	
                  Appraisal/BPO

                	
                  ________________

                	
                  (9)

                	 
	
                  (10)

                	
                  Property
                    Inspections

                	
                  ________________

                	
                  (10)

                	 
	
                  (11)

                	
                  FC
                    Costs/Other Legal Expenses

                	
                  ________________

                	
                  (11)

                	 
	
                  (12)

                	
                  Other
                    (itemize)

                	
                  ________________

                	
                  (12)

                	 
	 	
                  Cash
                    for Keys__________________________

                	
                  ________________

                	
                  (12)

                	 
	 	
                  HOA/Condo
                    Fees_______________________

                	
                  ________________

                	
                  (12)

                	 
	 	
                  ______________________________________

                	
                  ________________

                	
                  (12)

                	 
	 	 	 	 	 
	 	
                  Total
                    Expenses

                	
                  $_______________

                	
                  (13)

                	 
	
                  Credits:

                	 	 	 
	
                  (14)

                	
                  Escrow
                    Balance

                	
                  $
                    _______________

                	
                  (14)

                	 
	
                  (15)

                	
                  HIP
                    Refund

                	
                  ________________

                	
                  (15)

                	 
	
                  (16)

                	
                  Rental
                    Receipts

                	
                  ________________

                	
                  (16)

                	 
	
                  (17)

                	
                  Hazard
                    Loss Proceeds

                	
                  ________________

                	
                  (17)

                	 
	
                  (18)

                	
                  Primary
                    Mortgage Insurance / Gov’t Insurance

                	
                  ________________

                	
                  (18a)
                    

                	 
	 HUD
                  Part A	
                  ________________

                	
                  (18b)

                	 
	 	 	 	 	 
	 HUD
                  Part B	 	 	 
	
                  (19)

                	
                  Pool
                    Insurance Proceeds

                	
                  ________________

                	
                  (19)

                	 
	
                  (20)

                	
                  Proceeds
                    from Sale of Acquired Property

                	
                  ________________

                	
                  (20)

                	 
	
                  (21)

                	
                  Other
                    (itemize)

                	
                  ________________

                	
                  (21)

                	 
	 	
                  _________________________________________

                	
                  ________________

                	
                  (21)

                	 
	 	 	 	 	 
	 	
                  Total
                    Credits

                	
                  $________________

                	
                  (22)

                	 
	
                  Total
                    Realized Loss (or Amount of Gain)

                	
                  $________________

                	
                  (23)

                	 
	 	 	 	 	 

        

      Escrow
        Disbursement Detail

      

      

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of Coverage

              	
                Total
                  Paid

              	
                Base
                  Amount

              	
                Penalties

              	
                Interest

              
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

       

      EXHIBIT
        X-1

       

      

      
        	
                Standard
                  File Layout - Master Servicing

                 

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	
                 

              	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	
                 

              	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  servicer's fee rate for a loan as reported by the Servicer.
                  

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  servicer's fee amount for a loan as reported by the Servicer.
                  

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer. 

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment amount.
                  

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                 

              	
                 

              	
                 

              	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase, 70=REO 

              	
                2

              
	
                ACTION_CODE

              	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	
                 

              	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              

      

      

       

      EXHIBIT
        X-2

       

      
        	
                Exhibit: Standard
                  File Layout - Delinquency Reporting

                 

              

      

      
        	
                Column/Header
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR

              	 	
                 

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the originator.

              	 	
                 

              
	
                CLIENT_NBR

              	
                Servicer
                  Client Number

              	 	 
	
                SERV_INVESTOR_NBR

              	
                Contains
                  a unique number as assigned by an external servicer to identify
                  a group of
                  loans in their system.

              	 	
                 

              
	
                BORROWER_FIRST_NAME

              	
                First
                  Name of the Borrower.

              	 	 
	
                BORROWER_LAST_NAME

              	
                Last
                  name of the borrower.

              	 	 
	
                PROP_ADDRESS

              	
                Street
                  Name and Number of Property

              	 	
                 

              
	
                PROP_STATE

              	
                The
                  state where the property located.

              	 	
                 

              
	
                PROP_ZIP

              	
                Zip
                  code where the property is located.

              	 	
                 

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date that the borrower's next payment is due to the servicer at
                  the end of
                  processing cycle, as reported by Servicer.

              	 	
                MM/DD/YYYY

              
	
                LOAN_TYPE

              	
                Loan
                  Type (i.e. FHA, VA, Conv)

              	 	
                 

              
	
                BANKRUPTCY_FILED_DATE

              	
                The
                  date a particular bankruptcy claim was filed.

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_CHAPTER_CODE

              	
                The
                  chapter under which the bankruptcy was filed.

              	 	
                 

              
	
                BANKRUPTCY_CASE_NBR

              	
                The
                  case number assigned by the court to the bankruptcy
                  filing.

              	 	
                 

              
	
                POST_PETITION_DUE_DATE

              	
                The
                  payment due date once the bankruptcy has been approved by the
                  courts

              	 	
                MM/DD/YYYY

              
	
                BANKRUPTCY_DCHRG_DISM_DATE

              	
                The
                  Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                  Discharged
                  and/or a Motion For Relief Was Granted. 

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_APPR_DATE

              	
                The
                  Date The Loss Mitigation Was Approved By The Servicer

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_TYPE

              	
                The
                  Type Of Loss Mitigation Approved For A Loan Such As;

              	 	 
	
                LOSS_MIT_EST_COMP_DATE

              	
                The
                  Date The Loss Mitigation /Plan Is Scheduled To End/Close

              	 	
                MM/DD/YYYY

              
	
                LOSS_MIT_ACT_COMP_DATE

              	
                The
                  Date The Loss Mitigation Is Actually Completed

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_APPROVED_DATE

              	
                The
                  date DA Admin sends a letter to the servicer with instructions
                  to begin
                  foreclosure proceedings.

              	 	
                MM/DD/YYYY

              
	
                ATTORNEY_REFERRAL_DATE

              	
                Date
                  File Was Referred To Attorney to Pursue Foreclosure

              	 	
                MM/DD/YYYY

              
	
                FIRST_LEGAL_DATE

              	
                Notice
                  of 1st legal filed by an Attorney in a Foreclosure Action

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_EXPECTED_DATE

              	
                The
                  date by which a foreclosure sale is expected to occur.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_DATE

              	
                The
                  actual date of the foreclosure sale.

              	 	
                MM/DD/YYYY

              
	
                FRCLSR_SALE_AMT

              	
                The
                  amount a property sold for at the foreclosure sale.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                EVICTION_START_DATE

              	
                The
                  date the servicer initiates eviction of the borrower.

              	 	
                MM/DD/YYYY

              
	
                EVICTION_COMPLETED_DATE

              	
                The
                  date the court revokes legal possession of the property from the
                  borrower.

              	 	
                MM/DD/YYYY

              
	
                LIST_PRICE

              	
                The
                  price at which an REO property is marketed.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                LIST_DATE

              	
                The
                  date an REO property is listed at a particular price.

              	 	
                MM/DD/YYYY

              
	
                OFFER_AMT

              	
                The
                  dollar value of an offer for an REO property.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                OFFER_DATE_TIME

              	
                The
                  date an offer is received by DA Admin or by the Servicer.

              	 	
                MM/DD/YYYY

              
	
                REO_CLOSING_DATE

              	
                The
                  date the REO sale of the property is scheduled to close.

              	 	
                MM/DD/YYYY

              
	
                REO_ACTUAL_CLOSING_DATE

              	
                Actual
                  Date Of REO Sale

              	 	
                MM/DD/YYYY

              
	
                OCCUPANT_CODE

              	
                Classification
                  of how the property is occupied.

              	 	
                 

              
	
                PROP_CONDITION_CODE

              	
                A
                  code that indicates the condition of the property.

              	 	
                 

              
	
                PROP_INSPECTION_DATE

              	
                The
                  date a property inspection is performed.

              	 	
                MM/DD/YYYY

              
	
                APPRAISAL_DATE

              	
                The
                  date the appraisal was done.

              	 	
                MM/DD/YYYY

              
	
                CURR_PROP_VAL

              	
                 The
                  current "as is" value of the property based on brokers price opinion
                  or
                  appraisal.

              	
                2

              	
                 

              
	
                REPAIRED_PROP_VAL

              	
                The
                  amount the property would be worth if repairs are completed pursuant
                  to a
                  broker's price opinion or appraisal.

              	
                2

              	
                 

              
	
                If
                  applicable:

              	
                 

              	 	
                 

              
	
                DELINQ_STATUS_CODE

              	
                FNMA
                  Code Describing Status of Loan

              	 	 
	
                DELINQ_REASON_CODE

              	
                The
                  circumstances which caused a borrower to stop paying on a loan.
                  Code
                  indicates the reason why the loan is in default for this
                  cycle.

              	 	 
	
                MI_CLAIM_FILED_DATE

              	
                Date
                  Mortgage Insurance Claim Was Filed With Mortgage Insurance
                  Company.

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT

              	
                Amount
                  of Mortgage Insurance Claim Filed

              	 	
                No
                  commas(,) or dollar signs ($)

              
	
                MI_CLAIM_PAID_DATE

              	
                Date
                  Mortgage Insurance Company Disbursed Claim Payment

              	 	
                MM/DD/YYYY

              
	
                MI_CLAIM_AMT_PAID

              	
                Amount
                  Mortgage Insurance Company Paid On Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_FILED_DATE

              	
                Date
                  Claim Was Filed With Pool Insurance Company

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT

              	
                Amount
                  of Claim Filed With Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_PAID_DATE

              	
                Date
                  Claim Was Settled and The Check Was Issued By The Pool
                  Insurer

              	 	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT_PAID

              	
                Amount
                  Paid On Claim By Pool Insurance Company

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_FILED_DATE

              	
                 Date
                  FHA Part A Claim Was Filed With HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_AMT

              	
                 Amount
                  of FHA Part A Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_A_CLAIM_PAID_DATE

              	
                 Date
                  HUD Disbursed Part A Claim Payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_A_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part A Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_FILED_DATE

              	
                  Date
                  FHA Part B Claim Was Filed With HUD

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_AMT

              	
                  Amount
                  of FHA Part B Claim Filed

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FHA_PART_B_CLAIM_PAID_DATE

              	
                   Date
                  HUD Disbursed Part B Claim Payment

              	 	
                MM/DD/YYYY

              
	
                FHA_PART_B_CLAIM_PAID_AMT

              	
                 Amount
                  HUD Paid on Part B Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              
	
                VA_CLAIM_FILED_DATE

              	
                 Date
                  VA Claim Was Filed With the Veterans Admin

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_DATE

              	
                 Date
                  Veterans Admin. Disbursed VA Claim Payment

              	 	
                MM/DD/YYYY

              
	
                VA_CLAIM_PAID_AMT

              	
                 Amount
                  Veterans Admin. Paid on VA Claim

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              

      

      
 

      
        	Standard File Codes -
                Delinquency
                Reporting

      

       

      The
        Loss
        Mit Type
        field
        should show the approved Loss Mitigation Code as follows: 

      
        
          	
                	·	
                  ASUM-Approved
                    Assumption

                

        

      

      
        
          	
                	·	
                  BAP-Borrower
                    Assistance Program

                

        

      

      
        
          	
                	·	
                  CO-
                    Charge Off

                

        

      

      
        
          	
                	·	
                  DIL-
                    Deed-in-Lieu

                

        

      

      
        
          	
                	·	
                  FFA-
                    Formal Forbearance Agreement

                

        

      

      
        
          	
                	·	
                  MOD-
                    Loan Modification

                

        

      

      
        
          	
                	·	
                  PRE-
                    Pre-Sale

                

        

      

      
        
          	
                	·	
                  SS-
                    Short Sale

                

        

      

      
        
          	
                	·	
                  MISC-Anything
                    else approved by the PMI or Pool
                    Insurer

                

        

      

       

      NOTE:
        Wells
        Fargo Bank will accept alternative Loss Mitigation Types to those above,
        provided that they are consistent with industry standards. If Loss Mitigation
        Types other than those above are used, the Servicer must supply Wells Fargo
        Bank
        with a description of each of the Loss Mitigation Types prior to sending
        the
        file.

       

      The
        Occupant
        Code
        field
        should show the current status of the property code as follows:

      
        
          	
                	·	
                  Mortgagor

                

        

      

      
        
          	
                	·	
                  Tenant

                

        

      

      
        
          	
                	·	
                  Unknown
                    

                

        

      

      
        
          	
                	·	
                  Vacant

                

        

      

       

      The
        Property
        Condition
        field
        should show the last reported condition of the property as follows:

      
        
          	
                	·	
                  Damaged

                

        

      

      
        
          	
                	·	
                  Excellent

                

        

      

      
        
          	
                	·	
                  Fair

                

        

      

      
        
          	
                	·	
                  Gone

                

        

      

      
        
          	
                	·	
                  Good

                

        

      

      
        
          	
                	·	
                  Poor

                

        

      

      
        
          	
                	·	
                  Special
                    Hazard

                

        

      

      
        
          	
                	·	
                  Unknown

                

        

      

       

       

      
        	Exhibit 2: Standard
                File Codes - Delinquency Reporting, Continued

      

       

      The
        FNMA
        Delinquent Reason Code
        field
        should show the Reason for Delinquency as follows: 

       

      
        	
                Delinquency
                  Code

              	
                Delinquency
                  Description

              
	
                001

              	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	
                FNMA-Marital
                  difficulties

              
	
                006

              	
                FNMA-Curtailment
                  of income

              
	
                007

              	
                FNMA-Excessive
                  Obligation

              
	
                008

              	
                FNMA-Abandonment
                  of property

              
	
                009

              	
                FNMA-Distant
                  employee transfer

              
	
                011

              	
                FNMA-Property
                  problem

              
	
                012

              	
                FNMA-Inability
                  to sell property

              
	
                013

              	
                FNMA-Inability
                  to rent property

              
	
                014

              	
                FNMA-Military
                  Service

              
	
                015

              	
                FNMA-Other

              
	
                016

              	
                FNMA-Unemployment

              
	
                017

              	
                FNMA-Business
                  failure

              
	
                019

              	
                FNMA-Casualty
                  loss

              
	
                022

              	
                FNMA-Energy
                  environment costs

              
	
                023

              	
                FNMA-Servicing
                  problems

              
	
                026

              	
                FNMA-Payment
                  adjustment

              
	
                027

              	
                FNMA-Payment
                  dispute

              
	
                029

              	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	
                FNMA-Fraud

              
	
                031

              	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	
                FNMA-Incarceration

              

         

        
          	Exhibit 2: Standard
                  File Codes - Delinquency Reporting, Continued

        

         

      

      The
        FNMA
        Delinquent Status Code
        field
        should show the Status of Default as follows: 

       

      
        	
                Status
                  Code

              	
                Status
                  Description

              
	
                09

              	
                Forbearance

              
	
                17

              	
                Pre-foreclosure
                  Sale Closing Plan Accepted

              
	
                24

              	
                Government
                  Seizure

              
	
                26

              	
                Refinance

              
	
                27

              	
                Assumption

              
	
                28

              	
                Modification

              
	
                29

              	
                Charge-Off

              
	
                30

              	
                Third
                  Party Sale

              
	
                31

              	
                Probate

              
	
                32

              	
                Military
                  Indulgence

              
	
                43

              	
                Foreclosure
                  Started

              
	
                44

              	
                Deed-in-Lieu
                  Started

              
	
                49

              	
                Assignment
                  Completed

              
	
                61

              	
                Second
                  Lien Considerations

              
	
                62

              	
                Veteran’s
                  Affairs-No Bid

              
	
                63

              	
                Veteran’s
                  Affairs-Refund

              
	
                64

              	
                Veteran’s
                  Affairs-Buydown

              
	
                65

              	
                Chapter
                  7 Bankruptcy

              
	
                66

              	
                Chapter
                  11 Bankruptcy

              
	
                67

              	
                Chapter
                  13 Bankruptcy

              

      

      
 

      EXHIBIT
        X-3

      

      

      Exhibit
        : Calculation
        of Realized Loss/Gain Form 332- Instruction Sheet

      NOTE:
        Do not net or combine items. Show all expenses individually and all credits
        as
        separate line items. Claim packages are due on the remittance report date.
        Late
        submissions may result in claims not being passed until the following month.
        The
        Servicer is responsible to remit all funds pending loss approval and /or
        resolution of any disputed items. 

      

       

      The
        numbers on the 332 form correspond with the numbers listed
        below.

       

      Liquidation
        and Acquisition Expenses:

      
        	
              	1.	
                The
                  Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
                  an Amortization Schedule from date of default through liquidation
                  breaking
                  out the net interest and servicing fees advanced is
                  required.

              

      

       

      
        	
              	2.	
                The
                  Total Interest Due less the aggregate amount of servicing fee that
                  would
                  have been earned if all delinquent payments had been made as agreed.
                  For
                  documentation, an Amortization Schedule from date of default through
                  liquidation breaking out the net interest and servicing fees advanced
                  is
                  required.

              

      

       

      
        	
              	3.	
                Accrued
                  Servicing Fees based upon the Scheduled Principal Balance of the
                  Mortgage
                  Loan as calculated on a monthly basis. For documentation, an Amortization
                  Schedule from date of default through liquidation breaking out
                  the net
                  interest and servicing fees advanced is
                  required.

              

      

       

      
        	
              	4-12.	
                Complete
                  as applicable. Required
                  documentation:

              

      

       

      *
        For
        taxes and insurance advances - see page 2 of 332 form - breakdown required
        showing period

       

      of
        coverage, base tax, interest, penalty. Advances prior to default require
        evidence of servicer efforts to recover advances.

       

      *
        For
        escrow advances - complete payment history 

       

      (to
        calculate advances from last positive escrow balance forward)

       

      *
        Other
        expenses -  copies of corporate advance history showing all payments

       

      *
        REO
        repairs > $1500 require explanation

       

      *
        REO
        repairs >$3000 require evidence of at least 2 bids.

       

      *
        Short
        Sale or Charge Off require P&L supporting the decision and
        WFB’s approved Officer Certificate 

       

      *
        Unusual
        or extraordinary items may require further documentation. 

       

      13.  The
        total
        of lines 1 through 12.

       

      Credits:
        

       

      14-21.  Complete
        as applicable. Required documentation:

       

      *
        Copy of
        the HUD 1 from the REO sale. If a 3rd
        Party
        Sale, bid instructions and Escrow
        Agent / Attorney

       

      Letter
        of
        Proceeds
        Breakdown.

       

      *
        Copy of
        EOB for any MI or gov't guarantee 

       

      *
        All
        other credits need to be clearly defined on the 332
        form      
     

       

      
        	 	
                22.

              	
                The
                  total of lines 14 through 21.

              

      

       

      
        
          	
                	Please
                  Note:	
                  For
                    HUD/VA loans, use line (18a) for Part A/Initial proceeds and
                    line (18b)
                    for Part B/Supplemental
                    proceeds.

                

        

      

       

      Total
        Realized Loss (or Amount of Any Gain)

      
        	
              	23.	
                The
                  total derived from subtracting line 22 from 13. If the amount represents
                  a
                  realized gain, show
                  the amount in parenthesis ( ). 

              

      

      
        	 

      

      
         

        
          	Exhibit 3A: Calculation
                  of Realized Loss/Gain Form 332

        

         

      

      Prepared
        by: __________________   Date:
        _______________

      Phone:
        ______________________    Email
        Address:_____________________

      
        	 	 	 	 	 
	
                 

                Servicer
                  Loan No.

                 

              	 	
                 

                Servicer
                  Name

                 

              	 	
                 

                Servicer
                  Address 

                 

                 

                 

                 

              

      

       

      WELLS
        FARGO BANK, N.A. Loan No._____________________________

       

      Borrower's
        Name: _________________________________________________________

      Property
        Address: _________________________________________________________

       

      Liquidation
        Type: REO Sale  
        3rd
        Party Sale  Short
        Sale     Charge
        Off 

       

      Was
        this loan granted a Bankruptcy deficiency or cramdown  Yes      No

      If
“Yes”,
        provide deficiency or cramdown amount
        _______________________________

       

      Liquidation
        and Acquisition Expenses:

      
        
          	
                  (1)

                	
                  Actual
                    Unpaid Principal Balance of Mortgage Loan

                	
                  $
                    ______________

                	
                  (1)

                	 
	
                  (2)

                	
                  Interest
                    accrued at Net Rate

                	
                  ________________

                	
                  (2)

                	 
	
                  (3)

                	
                  Accrued
                    Servicing Fees

                	
                  ________________

                	
                  (3)

                	 
	
                  (4)

                	
                  Attorney's
                    Fees

                	
                  ________________

                	
                  (4)

                	 
	
                  (5)

                	
                  Taxes
                    (see page 2)

                	
                  ________________

                	
                  (5)

                	 
	
                  (6)

                	
                  Property
                    Maintenance

                	
                  
                    ________________

                  

                	
                  (6)

                	
                   

                
	
                  (7)

                	
                  MI/Hazard
                    Insurance Premiums (see page 2)

                	
                  ________________

                	
                  (7)

                	 
	
                  (8)

                	
                  Utility
                    Expenses

                	
                  ________________

                	
                  (8)

                	 
	
                  (9)

                	
                  Appraisal/BPO

                	
                  ________________

                	
                  (9)

                	 
	
                  (10)

                	
                  Property
                    Inspections

                	
                  ________________

                	
                  (10)

                	 
	
                  (11)

                	
                  FC
                    Costs/Other Legal Expenses

                	
                  ________________

                	
                  (11)

                	 
	
                  (12)

                	
                  Other
                    (itemize)

                	
                  ________________

                	
                  (12)

                	 
	 	
                  Cash
                    for Keys__________________________

                	
                  ________________

                	
                  (12)

                	 
	 	
                  HOA/Condo
                    Fees_______________________

                	
                  ________________

                	
                  (12)

                	 
	 	
                  ______________________________________

                	
                  ________________

                	
                  (12)

                	 
	 	 	 	 	 
	 	
                  Total
                    Expenses

                	
                  $
                    _______________

                	
                  (13)

                	 
	
                  Credits:

                	 	 	 
	
                  (14)

                	
                  Escrow
                    Balance

                	
                  $
                    _______________

                	
                  (14)

                	 
	
                  (15)

                	
                  HIP
                    Refund

                	
                  ________________

                	
                  (15)

                	 
	
                  (16)

                	
                  Rental
                    Receipts

                	
                  ________________

                	
                  (16)

                	 
	
                  (17)

                	
                  Hazard
                    Loss Proceeds

                	
                  ________________

                	
                  (17)

                	 
	
                  (18)

                	
                  Primary
                    Mortgage Insurance / Gov’t Insurance

                	
                  ________________

                	
                  (18a)

                	 
	 	HUD Part
                  A	________________	(18b)	 
	 	 	 	 	 
	 	
                  HUD
                    Part B

                	 	 	 
	
                  (19)

                	
                  Pool
                    Insurance Proceeds

                	
                  ________________

                	
                  (19)

                	 
	
                  (20)

                	
                  Proceeds
                    from Sale of Acquired Property

                	
                  ________________

                	
                  (20)

                	 
	
                  (21)

                	
                  Other
                    (itemize)

                	
                  ________________

                	
                  (21)

                	 
	 	
                  _________________________________________

                	
                  ________________

                	
                  (21)

                	 
	 	 	 	 	 
	 	
                  Total
                    Credits

                	
                  $________________

                	
                  (22)

                	 
	
                  Total
                    Realized Loss (or Amount of Gain)

                	
                  
                    $________________

                  

                	(23)	 

        

      

      

      Escrow
        Disbursement Detail

      

      

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of 

                Coverage

              	
                Total
                  Paid

              	
                Base
                  

                Amount

              	
                Penalties

              	
                Interest

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]