Document:

Unassociated Document

    NOMURA
      HOME EQUITY LOAN, INC.,

     

    Depositor

     

     

    NOMURA
      CREDIT & CAPITAL, INC.,

     

    Sponsor

     

     

    OCWEN
      LOAN SERVICING, LLC,

     

    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 August 1, 2006

     

    
      	 	 	 

    

    

     

    NOMURA
      HOME EQUITY LOAN, INC.

     

    ASSET-BACKED
      CERTIFICATES, SERIES 2006-HE3

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    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 the Servicer 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 and the Class R
                Certificates.

            
	
              Section
                2.07

            	
              Conveyance
                of the REMIC I Regular Interests; Issuance and Conveyance of the
                REMIC II
                Regular Interests.

            
	
              Section
                2.08

            	
              Issuance
                of Class R 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

            	
              The
                Servicer to act as Servicer.

            
	
              Section
                3.02

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            
	
              Section
                3.03

            	
              Subservicers.

            
	
              Section
                3.04

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

            
	
              Section
                3.21

            	
              Possession
                of Certain Insurance Policies and Documents.

            
	
              Section
                3.22

            	
              [Reserved].

            
	
              Section
                3.23

            	
              UCC.

            
	
              Section
                3.24

            	
              Optional
                Purchase of Defaulted Mortgage Loans.

            
	
              Section
                3.25

            	
              Obligations
                of the Servicer Under Credit Risk Management Agreement.

            
	
              Section
                3.26

            	
              Collection
                of Mortgage Loan Payments; Custodial Account.

            
	
              Section
                3.27

            	
              Permitted
                Withdrawals From the Custodial Account.

            
	
              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 the Servicer.

            
	
              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

            	
              Distributions.

            
	
              Section
                5.05

            	
              Allocation
                of Realized Losses.

            
	
              Section
                5.06

            	
              Monthly
                Statements to Certificateholders.

            
	
              Section
                5.07

            	
              REMIC
                Designations, REMIC I and REMIC II Allocations.

            
	
              Section
                5.08

            	
              Prepayment
                Charges.

            
	
              Section
                5.09

            	
              Class
                P Certificate Account.

            
	
              Section
                5.10

            	
              Basis
                Risk Shortfall Reserve Fund.

            
	
              Section
                5.11

            	
              Supplemental
                Interest Trust.

            
	
              Section
                5.12

            	
              Tax
                Treatment of Swap Payments and Swap Termination
                Payments.

            
	
              Section
                5.13

            	
              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 SERVICER AND THE MASTER SERVICER

            
	
              Section
                7.01

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

            
	
              Section
                7.02

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

            
	
              Section
                7.03

            	
              Indemnification
                of Depositor, the Servicer and Servicing Function
                Participants.

            
	
              Section
                7.04

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

            
	
              Section
                7.05

            	
              Servicer
                Not to Resign.

            
	
              Section
                7.06

            	
              Appointment
                of Special Servicer; Termination of the 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 Servicer and the Master
                Servicer.

            
	 	 
	
              ARTICLE
                VIII

            
	
              DEFAUlt;
                TERMINATION OF 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

            	
              Third
                Party Beneficiaries.

            
	
              Section
                11.11

            	
              Intention
                of the Parties and Interpretation.

            
	
              Section
                11.12

            	
              Early
                Termination of Swap Agreement.

            

    

    

    

    Exhibits

     

    
      	
              Exhibit
                A-1

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

            
	
              Exhibit
                A-2

            	
              Form
                of Class M-[1][2][3][4][5][6][7][8][9] Certificates

            
	
              Exhibit
                A-3 

            	
              Form
                of Class B-[1][2] Certificates

            
	
              Exhibit
                A-4

            	
              Form
                of Class X Certificates

            
	
              Exhibit
                A-5

            	
              Form
                of Class P Certificates

            
	
              Exhibit
                A-6

            	
              Form
                of Class R Certificates

            
	
              Exhibit
                B

            	
              Mortgage
                Loan Schedule

            
	
              Exhibit
                C

            	
              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

            	
              Prepayment
                Charge Schedule

            
	
              Exhibit
                L

            	
              Relevant
                Servicing Criteria

            
	
              Exhibit
                M

            	
              Form
                of Back-up Certification

            
	
              Exhibit
                N

            	
              Reporting
                Responsibility

            
	
              Exhibit
                O

            	
              Appendix
                E of the Standard & Poor's Glossary For File Format For LEVELS®
                Version 5.6 Revised

            
	
              Exhibit
                P

            	
              Interest
                Rate Swap Agreement

            
	
              Exhibit
                Q

            	
              Form
                of Power of Attorney

            
	
              Exhibit
                R

            	
              Assignment,
                Assumption and Recognition Agreement

            
	
              Exhibit
                X-1

            	
              Form
                of Schedule of Default Loan Data

            
	
              Exhibit
                X-2

            	
              Form
                of Schedule of Realized
                Losses/Gains

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    POOLING
      AND SERVICING AGREEMENT, dated as of August 1, 2006, among NOMURA HOME EQUITY
      LOAN, INC., 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”), OCWEN LOAN SERVICING, LLC, a
      Delaware limited liability company, as a servicer (the “Servicer”) 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 Trust Fund (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-I 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

            	
              Uncertificated
                REMIC I

              Pass-Through
                Rate

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Assumed
                Final

              Maturity
                Date(1)

            
	
              I

            	
              (2)

            	
              $

            	
              17,298,014.32
                

            	
              July
                25, 2036

            
	
              I-1-A

            	
              (2)

            	
              $

            	
              4,552,324.61
                

            	
              July
                25, 2036

            
	
              I-1-B

            	
              (2)

            	
              $

            	
              4,552,324.61
                

            	
              July
                25, 2036

            
	
              I-2-A

            	
              (2)

            	
              $

            	
              5,004,721.07
                

            	
              July
                25, 2036

            
	
              I-2-B

            	
              (2)

            	
              $

            	
              5,004,721.07
                

            	
              July
                25, 2036

            
	
              I-3-A

            	
              (2)

            	
              $

            	
              5,440,483.31
                

            	
              July
                25, 2036

            
	
              I-3-B

            	
              (2)

            	
              $

            	
              5,440,483.31
                

            	
              July
                25, 2036

            
	
              I-4-A

            	
              (2)

            	
              $

            	
              5,858,520.54
                

            	
              July
                25, 2036

            
	
              I-4-B

            	
              (2)

            	
              $

            	
              5,858,520.54
                

            	
              July
                25, 2036

            
	
              I-5-A

            	
              (2)

            	
              $

            	
              6,255,833.17
                

            	
              July
                25, 2036

            
	
              I-5-B

            	
              (2)

            	
              $

            	
              6,255,833.17
                

            	
              July
                25, 2036

            
	
              I-6-A

            	
              (2)

            	
              $

            	
              6,625,876.57
                

            	
              July
                25, 2036

            
	
              I-6-B

            	
              (2)

            	
              $

            	
              6,625,876.57
                

            	
              July
                25, 2036

            
	
              I-7-A

            	
              (2)

            	
              $

            	
              6,968,650.74
                

            	
              July
                25, 2036

            
	
              I-7-B

            	
              (2)

            	
              $

            	
              6,968,650.74
                

            	
              July
                25, 2036

            
	
              I-8-A

            	
              (2)

            	
              $

            	
              7,146,446.09
                

            	
              July
                25, 2036

            
	
              I-8-B

            	
              (2)

            	
              $

            	
              7,146,446.09
                

            	
              July
                25, 2036

            
	
              I-9-A

            	
              (2)

            	
              $

            	
              7,023,189.19
                

            	
              July
                25, 2036

            
	
              I-9-B

            	
              (2)

            	
              $

            	
              7,023,189.19
                

            	
              July
                25, 2036

            
	
              I-10-A

            	
              (2)

            	
              $

            	
              6,822,487.69
                

            	
              July
                25, 2036

            
	
              I-10-B

            	
              (2)

            	
              $

            	
              6,822,487.69
                

            	
              July
                25, 2036

            
	
              I-11-A

            	
              (2)

            	
              $

            	
              6,626,967.33
                

            	
              July
                25, 2036

            
	
              I-11-B

            	
              (2)

            	
              $

            	
              6,626,967.33
                

            	
              July
                 25, 2036

            
	
              I-12-A

            	
              (2)

            	
              $

            	
              6,436,628.14
                

            	
              July
                25, 2036

            
	
              I-12-B

            	
              (2)

            	
              $

            	
              6,436,628.14
                

            	
              July
                25, 2036

            
	
              I-13-A

            	
              (2)

            	
              $

            	
              6,252,288.17
                

            	
              July
                25, 2036

            
	
              I-13-B

            	
              (2)

            	
              $

            	
              6,252,288.17
                

            	
              July
                25, 2036

            
	
              I-14-A

            	
              (2)

            	
              $

            	
              6,073,129.35
                

            	
              July
                25, 2036

            
	
              I-14-B

            	
              (2)

            	
              $

            	
              6,073,129.35
                

            	
              July
                25, 2036

            
	
              I-15-A

            	
              (2)

            	
              $

            	
              5,911,968.23
                

            	
              July
                25, 2036

            
	
              I-15-B

            	
              (2)

            	
              $

            	
              5,911,968.23
                

            	
              July
                25, 2036

            
	
              I-16-A

            	
              (2)

            	
              $

            	
              5,761,169.40
                

            	
              July
                25, 2036

            
	
              I-16-B

            	
              (2)

            	
              $

            	
              5,761,169.40
                

            	
              July
                25, 2036

            
	
              I-17-A

            	
              (2)

            	
              $

            	
              5,626,459.43
                

            	
              July
                25, 2036

            
	
              I-17-B

            	
              (2)

            	
              $

            	
              5,626,459.43
                

            	
              July
                25, 2036

            
	
              I-18-A

            	
              (2)

            	
              $

            	
              5,483,295.99
                

            	
              July
                25, 2036

            
	
              I-18-B

            	
              (2)

            	
              $

            	
              5,483,295.99
                

            	
              July
                25, 2036

            
	
              I-19-A

            	
              (2)

            	
              $

            	
              6,950,107.66
                

            	
              July
                25, 2036

            
	
              I-19-B

            	
              (2)

            	
              $

            	
              6,950,107.66
                

            	
              July
                25, 2036

            
	
              I-20-A

            	
              (2)

            	
              $

            	
              111,960,352.50
                

            	
              July
                25, 2036

            
	
              I-20-B

            	
              (2)

            	
              $

            	
              111,960,352.50
                

            	
              July
                25, 2036

            
	
              I-21-A

            	
              (2)

            	
              $

            	
              2,103,275.41
                

            	
              July
                25, 2036

            
	
              I-21-B

            	
              (2)

            	
              $

            	
              2,103,275.41
                

            	
              July
                25, 2036

            
	
              I-22-A

            	
              (2)

            	
              $

            	
              2,002,924.66
                

            	
              July
                25, 2036

            
	
              I-22-B

            	
              (2)

            	
              $

            	
              2,002,924.66
                

            	
              July
                25, 2036

            
	
              I-23-A

            	
              (2)

            	
              $

            	
              1,907,482.37
                

            	
              July
                25, 2036

            
	
              I-23-B

            	
              (2)

            	
              $

            	
              1,907,482.37
                

            	
              July
                25, 2036

            
	
              I-24-A

            	
              (2)

            	
              $

            	
              1,790,497.39
                

            	
              July
                25, 2036

            
	
              I-24-B

            	
              (2)

            	
              $

            	
              1,790,497.39
                

            	
              July
                25, 2036

            
	
              I-25-A

            	
              (2)

            	
              $

            	
              1,602,885.11
                

            	
              July
                25, 2036

            
	
              I-25-B

            	
              (2)

            	
              $

            	
              1,602,885.11
                

            	
              July
                25, 2036

            
	
              I-26-A

            	
              (2)

            	
              $

            	
              1,286,834.78
                

            	
              July
                25, 2036

            
	
              I-26-B

            	
              (2)

            	
              $

            	
              1,286,834.78
                

            	
              July
                25, 2036

            
	
              I-27-A

            	
              (2)

            	
              $

            	
              1,248,657.86
                

            	
              July
                25, 2036

            
	
              I-27-B

            	
              (2)

            	
              $

            	
              1,248,657.86
                

            	
              July
                25, 2036

            
	
              I-28-A

            	
              (2)

            	
              $

            	
              1,213,207.87
                

            	
              July
                25, 2036

            
	
              I-28-B

            	
              (2)

            	
              $

            	
              1,213,207.87
                

            	
              July
                25, 2036

            
	
              I-29-A

            	
              (2)

            	
              $

            	
              1,178,575.95
                

            	
              July
                25, 2036

            
	
              I-29-B

            	
              (2)

            	
              $

            	
              1,178,575.95
                

            	
              July
                25, 2036

            
	
              I-30-A

            	
              (2)

            	
              $

            	
              1,145,034.81
                

            	
              July
                25, 2036

            
	
              I-30-B

            	
              (2)

            	
              $

            	
              1,145,034.81
                

            	
              July
                25, 2036

            
	
              I-31-A

            	
              (2)

            	
              $

            	
              1,112,857.12
                

            	
              July
                25, 2036

            
	
              I-31-B

            	
              (2)

            	
              $

            	
              1,112,857.12
                

            	
              July
                25, 2036

            
	
              I-32-A

            	
              (2)

            	
              $

            	
              10,113,610.59
                

            	
              July
                25, 2036

            
	
              I-32-B

            	
              (2)

            	
              $

            	
              10,113,610.59
                

            	
              July
                25, 2036

            
	
              I-33-A

            	
              (2)

            	
              $

            	
              727,270.26
                

            	
              July
                25, 2036

            
	
              I-33-B

            	
              (2)

            	
              $

            	
              727,270.26
                

            	
              July
                25, 2036

            
	
              I-34-A

            	
              (2)

            	
              $

            	
              708,999.88
                

            	
              July
                25, 2036

            
	
              I-34-B

            	
              (2)

            	
              $

            	
              708,999.88
                

            	
              July
                25, 2036

            
	
              I-35-A

            	
              (2)

            	
              $

            	
              691,002.19
                

            	
              July
                25, 2036

            
	
              I-35-B

            	
              (2)

            	
              $

            	
              691,002.19
                

            	
              July
                25, 2036

            
	
              I-36-A

            	
              (2)

            	
              $

            	
              673,822.58
                

            	
              July
                25, 2036

            
	
              I-36-B

            	
              (2)

            	
              $

            	
              673,822.58
                

            	
              July
                25, 2036

            
	
              I-37-A

            	
              (2)

            	
              $

            	
              656,915.66
                

            	
              July
                25, 2036

            
	
              I-37-B

            	
              (2)

            	
              $

            	
              656,915.66
                

            	
              July
                25, 2036

            
	
              I-38-A

            	
              (2)

            	
              $

            	
              640,554.12
                

            	
              July
                25, 2036

            
	
              I-38-B

            	
              (2)

            	
              $

            	
              640,554.12
                

            	
              July
                25, 2036

            
	
              I-39-A

            	
              (2)

            	
              $

            	
              624,192.59
                

            	
              July
                25, 2036

            
	
              I-39-B

            	
              (2)

            	
              $

            	
              624,192.59
                

            	
              July
                25, 2036

            
	
              I-40-A

            	
              (2)

            	
              $

            	
              608,921.82
                

            	
              July
                25, 2036

            
	
              I-40-B

            	
              (2)

            	
              $

            	
              608,921.82
                

            	
              July
                25, 2036

            
	
              I-41-A

            	
              (2)

            	
              $

            	
              593,378.36
                

            	
              July
                25, 2036

            
	
              I-41-B

            	
              (2)

            	
              $

            	
              593,378.36
                

            	
              July
                25, 2036

            
	
              I-42-A

            	
              (2)

            	
              $

            	
              578,652.98
                

            	
              July
                25, 2036

            
	
              I-42-B

            	
              (2)

            	
              $

            	
              578,652.98
                

            	
              July
                25, 2036

            
	
              I-43-A

            	
              (2)

            	
              $

            	
              564,200.29
                

            	
              July
                25, 2036

            
	
              I-43-B

            	
              (2)

            	
              $

            	
              564,200.29
                

            	
              July
                25, 2036

            
	
              I-44-A

            	
              (2)

            	
              $

            	
              550,020.29
                

            	
              July
                25, 2036

            
	
              I-44-B

            	
              (2)

            	
              $

            	
              550,020.29
                

            	
              July
                25, 2036

            
	
              I-45-A

            	
              (2)

            	
              $

            	
              536,385.68
                

            	
              July
                25, 2036

            
	
              I-45-B

            	
              (2)

            	
              $

            	
              536,385.68
                

            	
              July
                25, 2036

            
	
              I-46-A

            	
              (2)

            	
              $

            	
              522,751.06
                

            	
              July
                25, 2036

            
	
              I-46-B

            	
              (2)

            	
              $

            	
              522,751.06
                

            	
              July
                25, 2036

            
	
              I-47-A

            	
              (2)

            	
              $

            	
              509,934.53
                

            	
              July
                25, 2036

            
	
              I-47-B

            	
              (2)

            	
              $

            	
              509,934.53
                

            	
              July
                25, 2036

            
	
              I-48-A

            	
              (2)

            	
              $

            	
              496,845.30
                

            	
              July
                25, 2036

            
	
              I-48-B

            	
              (2)

            	
              $

            	
              496,845.30
                

            	
              July
                25, 2036

            
	
              I-49-A

            	
              (2)

            	
              $

            	
              484,574.15
                

            	
              July
                25, 2036

            
	
              I-49-B

            	
              (2)

            	
              $

            	
              484,574.15
                

            	
              July
                25, 2036

            
	
              I-50-A

            	
              (2)

            	
              $

            	
              472,575.69
                

            	
              July
                25, 2036

            
	
              I-50-B

            	
              (2)

            	
              $

            	
              472,575.69
                

            	
              July
                25, 2036

            
	
              I-51-A

            	
              (2)

            	
              $

            	
              460,577.23
                

            	
              July
                25, 2036

            
	
              I-51-B

            	
              (2)

            	
              $

            	
              460,577.23
                

            	
              July
                25, 2036

            
	
              I-52-A

            	
              (2)

            	
              $

            	
              449,124.15
                

            	
              July
                25, 2036

            
	
              I-52-B

            	
              (2)

            	
              $

            	
              449,124.15
                

            	
              July
                25, 2036

            
	
              I-53-A

            	
              (2)

            	
              $

            	
              437,943.77
                

            	
              July
                25, 2036

            
	
              I-53-B

            	
              (2)

            	
              $

            	
              437,943.77
                

            	
              July
                25, 2036

            
	
              I-54-A

            	
              (2)

            	
              $

            	
              426,763.39
                

            	
              July
                25, 2036

            
	
              I-54-B

            	
              (2)

            	
              $

            	
              426,763.39
                

            	
              July
                25, 2036

            
	
              I-55-A

            	
              (2)

            	
              $

            	
              416,401.08
                

            	
              July
                25, 2036

            
	
              I-55-B

            	
              (2)

            	
              $

            	
              416,401.08
                

            	
              July
                25, 2036

            
	
              I-56-A

            	
              (2)

            	
              $

            	
              1,008,688.67
                

            	
              July
                25, 2036

            
	
              I-56-B

            	
              (2)

            	
              $

            	
              1,008,688.67
                

            	
              July
                25, 2036

            
	
              I-57-A

            	
              (2)

            	
              $

            	
              374,951.86
                

            	
              July
                25, 2036

            
	
              I-57-B

            	
              (2)

            	
              $

            	
              374,951.86
                

            	
              July
                25, 2036

            
	
              I-58-A

            	
              (2)

            	
              $

            	
              365,680.32
                

            	
              July
                25, 2036

            
	
              I-58-B

            	
              (2)

            	
              $

            	
              365,680.32
                

            	
              July
                25, 2036

            
	
              I-59-A

            	
              (2)

            	
              $

            	
              356,681.48
                

            	
              July
                25, 2036

            
	
              I-59-B

            	
              (2)

            	
              $

            	
              356,681.48
                

            	
              July
                25, 2036

            
	
              I-60-A

            	
              (2)

            	
              $

            	
              14,051,014.15
                

            	
              July
                25, 2036

            
	
              I-60-B

            	
              (2)

            	
              $

            	
              14,051,014.15
                

            	
              July
                25, 2036

            
	
              II

            	
              (2)

            	
              $

            	
              14,419,083.62
                

            	
              July
                25, 2036

            
	
              II-1-A

            	
              (2)

            	
              $

            	
              3,794,675.39
                

            	
              July
                25, 2036

            
	
              II-1-B

            	
              (2)

            	
              $

            	
              3,794,675.39
                

            	
              July
                25, 2036

            
	
              II-2-A

            	
              (2)

            	
              $

            	
              4,171,778.93
                

            	
              July
                25, 2036

            
	
              II-2-B

            	
              (2)

            	
              $

            	
              4,171,778.93
                

            	
              July
                25, 2036

            
	
              II-3-A

            	
              (2)

            	
              $

            	
              4,535,016.69
                

            	
              July
                25, 2036

            
	
              II-3-B

            	
              (2)

            	
              $

            	
              4,535,016.69
                

            	
              July
                25, 2036

            
	
              II-4-A

            	
              (2)

            	
              $

            	
              4,883,479.46
                

            	
              July
                25, 2036

            
	
              II-4-B

            	
              (2)

            	
              $

            	
              4,883,479.46
                

            	
              July
                25, 2036

            
	
              II-5-A

            	
              (2)

            	
              $

            	
              5,214,666.83
                

            	
              July
                25, 2036

            
	
              II-5-B

            	
              (2)

            	
              $

            	
              5,214,666.83
                

            	
              July
                25, 2036

            
	
              II-6-A

            	
              (2)

            	
              $

            	
              5,523,123.43
                

            	
              July
                25, 2036

            
	
              II-6-B

            	
              (2)

            	
              $

            	
              5,523,123.43
                

            	
              July
                25, 2036

            
	
              II-7-A

            	
              (2)

            	
              $

            	
              5,808,849.26
                

            	
              July
                25, 2036

            
	
              II-7-B

            	
              (2)

            	
              $

            	
              5,808,849.26
                

            	
              July
                25, 2036

            
	
              II-8-A

            	
              (2)

            	
              $

            	
              5,957,053.91
                

            	
              July
                25, 2036

            
	
              II-8-B

            	
              (2)

            	
              $

            	
              5,957,053.91
                

            	
              July
                25, 2036

            
	
              II-9-A

            	
              (2)

            	
              $

            	
              5,854,310.81
                

            	
              July
                25, 2036

            
	
              II-9-B

            	
              (2)

            	
              $

            	
              5,854,310.81
                

            	
              July
                25, 2036

            
	
              II-10-A

            	
              (2)

            	
              $

            	
              5,687,012.31
                

            	
              July
                25, 2036

            
	
              II-10-B

            	
              (2)

            	
              $

            	
              5,687,012.31
                

            	
              July
                25, 2036

            
	
              II-11-A

            	
              (2)

            	
              $

            	
              5,524,032.67
                

            	
              July
                25, 2036

            
	
              II-11-B

            	
              (2)

            	
              $

            	
              5,524,032.67
                

            	
              July
                25, 2036

            
	
              II-12-A

            	
              (2)

            	
              $

            	
              5,365,371.86
                

            	
              July
                25, 2036

            
	
              II-12-B

            	
              (2)

            	
              $

            	
              5,365,371.86
                

            	
              July
                25, 2036

            
	
              II-13-A

            	
              (2)

            	
              $

            	
              5,211,711.83
                

            	
              July
                25, 2036

            
	
              II-13-B

            	
              (2)

            	
              $

            	
              5,211,711.83
                

            	
              July
                25, 2036

            
	
              II-14-A

            	
              (2)

            	
              $

            	
              5,062,370.65
                

            	
              July
                25, 2036

            
	
              II-14-B

            	
              (2)

            	
              $

            	
              5,062,370.65
                

            	
              July
                25, 2036

            
	
              II-15-A

            	
              (2)

            	
              $

            	
              4,928,031.77
                

            	
              July
                25, 2036

            
	
              II-15-B

            	
              (2)

            	
              $

            	
              4,928,031.77
                

            	
              July
                25, 2036

            
	
              II-16-A

            	
              (2)

            	
              $

            	
              4,802,330.60
                

            	
              July
                25, 2036

            
	
              II-16-B

            	
              (2)

            	
              $

            	
              4,802,330.60
                

            	
              July
                25, 2036

            
	
              II-17-A

            	
              (2)

            	
              $

            	
              4,690,040.57
                

            	
              July
                25, 2036

            
	
              II-17-B

            	
              (2)

            	
              $

            	
              4,690,040.57
                

            	
              July
                25, 2036

            
	
              II-18-A

            	
              (2)

            	
              $

            	
              4,570,704.01
                

            	
              July
                25, 2036

            
	
              II-18-B

            	
              (2)

            	
              $

            	
              4,570,704.01
                

            	
              July
                25, 2036

            
	
              II-19-A

            	
              (2)

            	
              $

            	
              5,793,392.34
                

            	
              July
                25, 2036

            
	
              II-19-B

            	
              (2)

            	
              $

            	
              5,793,392.34
                

            	
              July
                25, 2036

            
	
              II-20-A

            	
              (2)

            	
              $

            	
              93,326,647.50
                

            	
              July
                25, 2036

            
	
              II-20-B

            	
              (2)

            	
              $

            	
              93,326,647.50
                

            	
              July
                25, 2036

            
	
              II-21-A

            	
              (2)

            	
              $

            	
              1,753,224.59
                

            	
              July
                25, 2036

            
	
              II-21-B

            	
              (2)

            	
              $

            	
              1,753,224.59
                

            	
              July
                25, 2036

            
	
              II-22-A

            	
              (2)

            	
              $

            	
              1,669,575.34
                

            	
              July
                25, 2036

            
	
              II-22-B

            	
              (2)

            	
              $

            	
              1,669,575.34
                

            	
              July
                25, 2036

            
	
              II-23-A

            	
              (2)

            	
              $

            	
              1,590,017.63
                

            	
              July
                25, 2036

            
	
              II-23-B

            	
              (2)

            	
              $

            	
              1,590,017.63
                

            	
              July
                25, 2036

            
	
              II-24-A

            	
              (2)

            	
              $

            	
              1,492,502.61
                

            	
              July
                25, 2036

            
	
              II-24-B

            	
              (2)

            	
              $

            	
              1,492,502.61
                

            	
              July
                25, 2036

            
	
              II-25-A

            	
              (2)

            	
              $

            	
              1,336,114.89
                

            	
              July
                25, 2036

            
	
              II-25-B

            	
              (2)

            	
              $

            	
              1,336,114.89
                

            	
              July
                25, 2036

            
	
              II-26-A

            	
              (2)

            	
              $

            	
              1,072,665.22
                

            	
              July
                25, 2036

            
	
              II-26-B

            	
              (2)

            	
              $

            	
              1,072,665.22
                

            	
              July
                25, 2036

            
	
              II-27-A

            	
              (2)

            	
              $

            	
              1,040,842.14
                

            	
              July
                25, 2036

            
	
              II-27-B

            	
              (2)

            	
              $

            	
              1,040,842.14
                

            	
              July
                25, 2036

            
	
              II-28-A

            	
              (2)

            	
              $

            	
              1,011,292.13
                

            	
              July
                25, 2036

            
	
              II-28-B

            	
              (2)

            	
              $

            	
              1,011,292.13
                

            	
              July
                25, 2036

            
	
              II-29-A

            	
              (2)

            	
              $

            	
              982,424.05
                

            	
              July
                25, 2036

            
	
              II-29-B

            	
              (2)

            	
              $

            	
              982,424.05
                

            	
              July
                25, 2036

            
	
              II-30-A

            	
              (2)

            	
              $

            	
              954,465.19
                

            	
              July
                25, 2036

            
	
              II-30-B

            	
              (2)

            	
              $

            	
              954,465.19
                

            	
              July
                25, 2036

            
	
              II-31-A

            	
              (2)

            	
              $

            	
              927,642.88
                

            	
              July
                25, 2036

            
	
              II-31-B

            	
              (2)

            	
              $

            	
              927,642.88
                

            	
              July
                25, 2036

            
	
              II-32-A

            	
              (2)

            	
              $

            	
              8,430,389.41
                

            	
              July
                25, 2036

            
	
              II-32-B

            	
              (2)

            	
              $

            	
              8,430,389.41
                

            	
              July
                25, 2036

            
	
              II-33-A

            	
              (2)

            	
              $

            	
              606,229.74
                

            	
              July
                25, 2036

            
	
              II-33-B

            	
              (2)

            	
              $

            	
              606,229.74
                

            	
              July
                25, 2036

            
	
              II-34-A

            	
              (2)

            	
              $

            	
              591,000.12
                

            	
              July
                25, 2036

            
	
              II-34-B

            	
              (2)

            	
              $

            	
              591,000.12
                

            	
              July
                25, 2036

            
	
              II-35-A

            	
              (2)

            	
              $

            	
              575,997.81
                

            	
              July
                25, 2036

            
	
              II-35-B

            	
              (2)

            	
              $

            	
              575,997.81
                

            	
              July
                25, 2036

            
	
              II-36-A

            	
              (2)

            	
              $

            	
              561,677.42
                

            	
              July
                25, 2036

            
	
              II-36-B

            	
              (2)

            	
              $

            	
              561,677.42
                

            	
              July
                25, 2036

            
	
              II-37-A

            	
              (2)

            	
              $

            	
              547,584.34
                

            	
              July
                25, 2036

            
	
              II-37-B

            	
              (2)

            	
              $

            	
              547,584.34
                

            	
              July
                25, 2036

            
	
              II-38-A

            	
              (2)

            	
              $

            	
              533,945.88
                

            	
              July
                25, 2036

            
	
              II-38-B

            	
              (2)

            	
              $

            	
              533,945.88
                

            	
              July
                25, 2036

            
	
              II-39-A

            	
              (2)

            	
              $

            	
              520,307.41
                

            	
              July
                25, 2036

            
	
              II-39-B

            	
              (2)

            	
              $

            	
              520,307.41
                

            	
              July
                25, 2036

            
	
              II-40-A

            	
              (2)

            	
              $

            	
              507,578.18
                

            	
              July
                25, 2036

            
	
              II-40-B

            	
              (2)

            	
              $

            	
              507,578.18
                

            	
              July
                25, 2036

            
	
              II-41-A

            	
              (2)

            	
              $

            	
              494,621.64
                

            	
              July
                25, 2036

            
	
              II-41-B

            	
              (2)

            	
              $

            	
              494,621.64
                

            	
              July
                25, 2036

            
	
              II-42-A

            	
              (2)

            	
              $

            	
              482,347.02
                

            	
              July
                25, 2036

            
	
              II-42-B

            	
              (2)

            	
              $

            	
              482,347.02
                

            	
              July
                25, 2036

            
	
              II-43-A

            	
              (2)

            	
              $

            	
              470,299.71
                

            	
              July
                25, 2036

            
	
              II-43-B

            	
              (2)

            	
              $

            	
              470,299.71
                

            	
              July
                25, 2036

            
	
              II-44-A

            	
              (2)

            	
              $

            	
              458,479.71
                

            	
              July
                25, 2036

            
	
              II-44-B

            	
              (2)

            	
              $

            	
              458,479.71
                

            	
              July
                25, 2036

            
	
              II-45-A

            	
              (2)

            	
              $

            	
              447,114.32
                

            	
              July
                25, 2036

            
	
              II-45-B

            	
              (2)

            	
              $

            	
              447,114.32
                

            	
              July
                25, 2036

            
	
              II-46-A

            	
              (2)

            	
              $

            	
              435,748.94
                

            	
              July
                25, 2036

            
	
              II-46-B

            	
              (2)

            	
              $

            	
              435,748.94
                

            	
              July
                25, 2036

            
	
              II-47-A

            	
              (2)

            	
              $

            	
              425,065.47
                

            	
              July
                25, 2036

            
	
              II-47-B

            	
              (2)

            	
              $

            	
              425,065.47
                

            	
              July
                25, 2036

            
	
              II-48-A

            	
              (2)

            	
              $

            	
              414,154.70
                

            	
              July
                25, 2036

            
	
              II-48-B

            	
              (2)

            	
              $

            	
              414,154.70
                

            	
              July
                25, 2036

            
	
              II-49-A

            	
              (2)

            	
              $

            	
              403,925.85
                

            	
              July
                25, 2036

            
	
              II-49-B

            	
              (2)

            	
              $

            	
              403,925.85
                

            	
              July
                25, 2036

            
	
              II-50-A

            	
              (2)

            	
              $

            	
              393,924.31
                

            	
              July
                25, 2036

            
	
              II-50-B

            	
              (2)

            	
              $

            	
              393,924.31
                

            	
              July
                25, 2036

            
	
              II-51-A

            	
              (2)

            	
              $

            	
              383,922.77
                

            	
              July
                25, 2036

            
	
              II-51-B

            	
              (2)

            	
              $

            	
              383,922.77
                

            	
              July
                25, 2036

            
	
              II-52-A

            	
              (2)

            	
              $

            	
              374,375.85
                

            	
              July
                25, 2036

            
	
              II-52-B

            	
              (2)

            	
              $

            	
              374,375.85
                

            	
              July
                25, 2036

            
	
              II-53-A

            	
              (2)

            	
              $

            	
              365,056.23
                

            	
              July
                25, 2036

            
	
              II-53-B

            	
              (2)

            	
              $

            	
              365,056.23
                

            	
              July
                25, 2036

            
	
              II-54-A

            	
              (2)

            	
              $

            	
              355,736.61
                

            	
              July
                25, 2036

            
	
              II-54-B

            	
              (2)

            	
              $

            	
              355,736.61
                

            	
              July
                25, 2036

            
	
              II-55-A

            	
              (2)

            	
              $

            	
              347,098.92
                

            	
              July
                25, 2036

            
	
              II-55-B

            	
              (2)

            	
              $

            	
              347,098.92
                

            	
              July
                25, 2036

            
	
              II-56-A

            	
              (2)

            	
              $

            	
              840,811.33
                

            	
              July
                25, 2036

            
	
              II-56-B

            	
              (2)

            	
              $

            	
              840,811.33
                

            	
              July
                25, 2036

            
	
              II-57-A

            	
              (2)

            	
              $

            	
              312,548.14
                

            	
              July
                25, 2036

            
	
              II-57-B

            	
              (2)

            	
              $

            	
              312,548.14
                

            	
              July
                25, 2036

            
	
              II-58-A

            	
              (2)

            	
              $

            	
              304,819.68
                

            	
              July
                25, 2036

            
	
              II-58-B

            	
              (2)

            	
              $

            	
              304,819.68
                

            	
              July
                25, 2036

            
	
              II-59-A

            	
              (2)

            	
              $

            	
              297,318.52
                

            	
              July
                25, 2036

            
	
              II-59-B

            	
              (2)

            	
              $

            	
              297,318.52
                

            	
              July
                25, 2036

            
	
              II-60-A

            	
              (2)

            	
              $

            	
              11,712,485.85
                

            	
              July
                25, 2036

            
	
              II-60-B

            	
              (2)

            	
              $

            	
              11,712,485.85
                

            	
              July
                25, 2036

            
	
              P

            	
              (3)

            	
              $

            	
              100.00
                

            	
              July
                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 LT-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 I Regular Interest) for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC II.” The R-II 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

            	
              $

            	
              526,714,767.99

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IA1

            	
              $

            	
              2,208,695.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IIA1

            	
              $

            	
              1,267,240.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IIA2

            	
              $

            	
              133,805.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IIA3

            	
              $

            	
              357,025.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IIA4

            	
              $

            	
              83,025.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M1

            	
              $

            	
              217,670.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M2

            	
              $

            	
              201,545.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M3

            	
              $

            	
              123,615.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M4

            	
              $

            	
              107,490.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M5

            	
              $

            	
              99,430.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M6

            	
              $

            	
              91,365.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M7

            	
              $

            	
              85,990.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M8

            	
              $

            	
              75,240.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M9

            	
              $

            	
              56,430.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-B1

            	
              $

            	
              53,745.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-B2

            	
              $

            	
              53,745.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-ZZ

            	
              $

            	
              5,533,225.98

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IO

            	 	
              (4)

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-P

            	
              $

            	
              100.00

            	
              (3)

            	
              July
                25, 2036

            
	
              LT-1SUB

            	
              $

            	
              14,451.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-1GRP

            	
              $

            	
              58,624.91

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-2SUB

            	
              $

            	
              12,046.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-2GRP

            	
              $

            	
              48,867.90

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-XX

            	
              $

            	
              537,330,059.16

            	
              (2)

            	
              July
                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 LT-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-III 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
                I-A-1

            	
              $

            	
              441,739,000

            	
              Class
                I-A-1 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                II-A-1

            	
              $

            	
              253,448,000

            	
              Class
                II-A-1 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                II-A-2

            	
              $

            	
              26,761,000

            	
              Class
                II-A-2 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                II-A-3

            	
              $

            	
              71,405,000

            	
              Class
                II-A-3 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                II-A-4

            	
              $

            	
              16,605,000

            	
              Class
                II-A-4 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-1

            	
              $

            	
              43,534,000

            	
              Class
                M-1 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-2

            	
              $

            	
              40,309,000

            	
              Class
                M-2 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-3

            	
              $

            	
              24,723,000

            	
              Class
                M-3 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-4

            	
              $

            	
              21,498,000

            	
              Class
                M-4 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-5

            	
              $

            	
              19,886,000

            	
              Class
                M-5 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-6

            	
              $

            	
              18,273,000

            	
              Class
                M-6 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-7

            	
              $

            	
              17,198,000

            	
              Class
                M-7 Pass-Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-8

            	
              $

            	
              15,048,000

            	
              Class
                M-8 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-9

            	
              $

            	
              11,286,000

            	
              Class
                M-9 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                B-1

            	
              $

            	
              10,749,000

            	
              Class
                B-1 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                B-2

            	
              $

            	
              10,749,000

            	
              Class
                B-2 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                X(2)

            	
              $

            	
              31,717,098

            	
              Class
                X Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                P

            	
              $

            	
              100

            	
              N/A(3)

            	
              July
                25, 2036

            
	
              Class
                IO Interest

            	 	
              (4)

            	
              (5)

            	
              July
                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 Class of
                Certificates.

            
	
              (2)

            	
              The
                Class X Certificates will not accrue interest on their Certificate
                Principal Balance, but will accrue interest at the Class X Pass-Through
                Rate on the Certificate Notional Balance of the Class X Certificates
                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 LT-P). 

            
	
              (3)

            	
              The
                Class P Certificates 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.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    In
      consideration of the mutual agreements herein contained, the Depositor, the
      Servicer, 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 Account.

     

    Accrual
      Period:
      With
      respect to the Senior Certificates, the Subordinate Certificates and the Class
      X
      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. All calculations of interest on the Senior Certificates
      and
      Subordinate Certificates will be 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, REMIC I Regular Interests and REMIC II Regular
      Interests will be based on a 360-day year consisting of twelve 30-day
      months.

     

    Additional
      Disclosure Notification:
      Has the
      meaning set forth in Section 5.13(a) of this Agreement.

     

    Additional
      Form 10-D Disclosure:
      Has the
      meaning set forth in Section 5.13(a) of this Agreement.

     

    Additional
      Form 10-K Disclosure:
      Has the
      meaning set forth in Section 5.13(e) of this Agreement.

     

    Adjustment
      Date:
      With
      respect to each adjustable rate 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
      adjustable rate 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 the related Servicer or by the Master Servicer
      pursuant to Section 5.01of this Agreement or pursuant to the 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).

     

    Affected
      Party:
      As
      defined in the Swap Agreement.

     

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

     

    Aggregate
      Loan Group Balance:
      With
      respect to either Loan Group I or Loan Group II and any Distribution Date,
      the
      aggregate of the Stated Principal Balances of the Mortgage Loans in the related
      Loan Group 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.

     

    Amounts
      Held for Future Distribution:
      As to
      any Distribution Date, the aggregate amount held in the Servicer’s 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 related Mortgage Loans due after the related Due Period and (ii)
      Principal Prepayments and Liquidation Proceeds received in respect of the
      related Mortgage Loans after the last day of the related Prepayment
      Period.

     

    Applied
      Loss Amount:
      With
      respect to the Senior Certificates and the Subordinate Certificates and any
      Distribution Date, the excess of the aggregate Certificate Principal Balance
      of
      the Senior Certificates and the Subordinate Certificates over the Aggregate
      Loan
      Balance of the Mortgage Loans 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 Subordinate 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 August
      31, 2006, among the Sponsor, the Depositor and Wells Fargo, as servicer,
      pursuant to which the Servicing Agreement was assigned to the Depositor, a
      copy
      of which is attached hereto as Exhibit R.

     

    Assumed
      Final Distribution Date:
      The
      Distribution Date in July 2036.

     

    Authorized
      Servicer Representative:
      Any
      officer of a 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
      such Servicer on the Closing Date, as such list may from time to time be
      amended.

     

    Available
      Distribution Amount:
      The sum
      of the Interest Remittance Amount and Principal Remittance Amount, exclusive
      of
      amounts set forth in Section 5.08.

     

    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 5.10 hereof.

     

    Basis
      Risk Shortfall:
      With
      respect to any Class of Senior Certificates or Subordinate Certificates and
      any
      Distribution Date, the sum of (i) the excess, if any, of the related Current
      Interest (calculated without regard to the applicable 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 lesser of (x) One Month LIBOR plus the applicable Certificate Margin
      and
      (y) the applicable Maximum Interest 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 Senior Certificates
      and Subordinate 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 State of New York, the State of Delaware, the State of
      Maryland, the State of Minnesota, the State of Florida, the city in which any
      Corporate Trust Office of the Securities Administrator 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.

     

    Carryforward
      Interest:
      With
      respect to any Class of Publicly Offered Certificates and any Class of Class
      B
      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 to 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-6.

     

    Certificate
      Margin:
      With
      respect to each Distribution Date on or prior to the first possible Optional
      Termination Date with respect to the Mortgage Loans, the Certificate Margins
      for
      the Class I-A-1, Class II-A-1, Class II-A-2, Class II-A-3, Class II-A-4, Class
      M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class
      M-8, Class M-9, Class B-1 and Class B-2 Certificates are 0.150%, 0.040%, 0.100%,
      0.150%, 0.280%, 0.300%, 0.330%, 0.340%, 0.390%, 0.410%, 0.460%, 0.800%, 0.950%,
      1.850%, 2.100%, and 2.100%, respectively. With respect to each Distribution
      Date
      following the first possible optional termination date with respect to the
      Mortgage Loans, the Certificate Margins for the Class I-A-1, Class II-A-1,
      Class
      II-A-2, Class II-A-3, Class II-A-4, Class M-1, Class M-2, Class M-3, Class
      M-4,
      Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class B-1 and Class
      B-2
      Certificates are 0.300%, 0.080%, 0.200%, 0.300%, 0.560%, 0.450%, 0.495%, 0.510%,
      0.585, 0.615%, 0.690%, 1.200%, 1.425%, 2.775%, 3.150%, and 3.150%,
      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 LT-P) for such Distribution Date. As of the Closing
      Date, the Certificate Notional Balance of the Class X Certificates is equal
      to
      $1,074,928,097.94.

     

    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, Subordinate Certificate or Class P 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 5.05(d) 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 5.04 and (b) with respect to any Class of Subordinate Certificates,
      any reductions in the Certificate Principal Balance of such Certificate deemed
      to have occurred in connection with the allocations of Realized Losses, if
      any,
      plus (ii) with respect to the Subordinate Certificates, any Subsequent
      Recoveries added to the Certificate Principal Balance of any such Certificate
      pursuant to Section 5.05(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 Publicly Offered Certificates and the Class B
      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
      I-A-1 Certificate:
      Any
      Certificate designated as a “Class I-A-1 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 I-A-1 Certificates as set
      forth
      herein and evidencing (i) a REMIC 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
      I-A-1 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.150% or (B) after the first
      possible Optional Termination Date, 0.300% and (ii) the applicable Net Funds
      Cap.

     

    Class
      II-A-1 Certificate:
      Any
      Certificate designated as a “Class II-A-1 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 II-A-1 Certificates as set
      forth herein and evidencing (i) a REMIC 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
      II-A-1 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.040% or (B) after the first
      possible Optional Termination Date, 0.080% and (ii) the applicable Net Funds
      Cap.

     

    Class
      II-A-2 Certificate:
      Any
      Certificate designated as a “Class II-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 II-A-2 Certificates as set
      forth herein and evidencing (i) a REMIC 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
      II-A-2 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.100% or (B) after the first
      possible Optional Termination Date, 0.200% and (ii) the applicable Net Funds
      Cap.

     

    Class
      II-A-3 Certificate:
      Any
      Certificate designated as a “Class II-A-3 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 II-A-3 Certificates as set
      forth herein and evidencing (i) a REMIC 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
      II-A-3 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.150% or (B) after the first
      possible Optional Termination Date, 0.300% and (ii) the applicable Net Funds
      Cap.

     

    Class
      II-A-4 Certificate:
      Any
      Certificate designated as a “Class II-A-4 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 II-A-4 Certificates as set
      forth herein and evidencing (i) a REMIC 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
      II-A-4 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.280% (B) after the first
      possible Optional Termination Date, 0.560% (ii) the applicable Net Funds
      Cap.

     

    Class
      B Certificates:
      The
      Class B-1 Certificates and Class B-2 Certificates.

     

    Class
      B-1 Certificate:
      Any
      Certificate designated as a “Class B-1 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 B-1 Certificates as set forth herein and
      evidencing (i) a REMIC 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
      B-1 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 2.100% or (B) after the first
      possible Optional Termination Date, 3.150% and (ii) the applicable Net Funds
      Cap.

     

    Class
      B-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 and the Mezzanine Certificates, in each
      case, after giving effect to payments on such Distribution Date and (ii) the
      Certificate Principal Balance of the Class B-1 Certificates immediately prior
      to
      such Distribution Date exceeds (y) the lesser of (A) the product of (i) 92.10%
      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) 0.50% of the Aggregate Loan Balance as of the Cut-off
      Date.

     

    Class
      B-2 Certificate:
      Any
      Certificate designated as a “Class B-2 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 B-2 Certificates as set forth herein and
      evidencing (i) a REMIC 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
      B-2 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 2.100% or (B) after the first
      possible Optional Termination Date, 3.150% and (ii) the applicable Net Funds
      Cap.

     

    Class
      B-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, the Mezzanine Certificates and the Class
      B-1 Certificates, in each case, after giving effect to payments on such
      Distribution Date and (ii) the Certificate Principal Balance of the Class B-2
      Certificates immediately prior to such Distribution Date exceeds (y) the lesser
      of (A) the product of (i) 94.10% 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) 0.50% of the Aggregate Loan
      Balance as of the Cut-off Date.

     

    Class
      IO Distribution Amount:
      As defined in Section 5.11 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 5.11
      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
      (i) a REMIC 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 lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.300% or (B) after the first
      possible Optional Termination Date, 0.450% and (ii) the applicable Net Funds
      Cap.

     

    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, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates, in each case, 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) 58.80% 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) 0.50% 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 REMIC 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 lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.330% or (B) after the first
      possible Optional Termination Date, 0.495% and (ii) the applicable Net Funds
      Cap.

     

    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, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates and the 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) 66.30% 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) 0.50% 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 REMIC 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 lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.340% or (B) after the first
      possible Optional Termination Date, 0.510% and (ii) the applicable Net Funds
      Cap.

     

    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, 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)
      70.90% 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) 0.50% 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 REMIC 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 lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.390% or (B) after the first
      possible Optional Termination Date, 0.585% and (ii) the applicable Net Funds
      Cap.

     

    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, 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)
      74.90% 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) 0.50% 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 REMIC 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 lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.410% or (B) after the first
      possible Optional Termination Date, 0.615% and (ii) the applicable Net Funds
      Cap.

     

    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, 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) 78.60% 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) 0.50% of the Aggregate Loan Balance as
      of
      the Cut-off Date.

     

    Class
      M-6 Certificate:
      Any
      Certificate designated as a “Class M-6 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-6 Certificates as set forth herein and
      evidencing (i) a REMIC 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-6 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.460% or (B) after the first
      possible Optional Termination Date, 0.690% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-6 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 sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1, Class M-2, Class M-3, Class M-4 and
      Class
      M-5 Certificates, in each case, after giving effect to payments on such
      Distribution Date and (ii) the Certificate Principal Balance of the Class M-6
      Certificates immediately prior to such Distribution Date exceeds (y) the lesser
      of (A) the product of (i) 82.00% 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) 0.50% of the Aggregate Loan
      Balance as of the Cut-off Date.

     

    Class
      M-7 Certificate:
      Any
      Certificate designated as a “Class M-7 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-7 Certificates as set forth herein and
      evidencing (i) a REMIC 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-7 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.800% or (B) after the first
      possible Optional Termination Date, 1.200% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-7 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 sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5 and Class M-6 Certificates, in each case, after giving effect to payments
      on
      such Distribution Date and (ii) the Certificate Principal Balance of the Class
      M-7 Certificates immediately prior to such Distribution Date exceeds (y) the
      lesser of (A) the product of (i) 85.20% 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) 0.50% of the Aggregate
      Loan
      Balance as of the Cut-off Date.

     

    Class
      M-8 Certificate:
      Any
      Certificate designated as a “Class M-8 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-8 Certificates as set forth herein and
      evidencing (i) a REMIC 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-8 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.950% or (B) after the first
      possible Optional Termination Date, 1.425% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-8 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 sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5, Class M-6 and Class M-7 Certificates, in each case, after giving effect
      to
      payments on such Distribution Date and (ii) the Certificate Principal Balance
      of
      the Class M-8 Certificates immediately prior to such Distribution Date exceeds
      (y) the lesser of (A) the product of (i) 88.00% 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) 0.50% of the
      Aggregate Loan Balance as of the Cut-off Date.

     

    Class
      M-9 Certificate:
      Any
      Certificate designated as a “Class M-9 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-9 Certificates as set forth herein and
      evidencing (i) a REMIC 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-9 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 1.850% or (B) after the first
      possible Optional Termination Date, 2.775% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-9 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 sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5, Class M-6, Class M-7 and Class M-8 Certificates, in each case, after giving
      effect to payments on such Distribution Date and (ii) the Certificate Principal
      Balance of the Class M-9 Certificates immediately prior to such Distribution
      Date exceeds (y) the lesser of (A) the product of (i) 90.10% 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)
      0.50% 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-5 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class P Certificates as set forth herein and
      evidencing a
      REMIC
      Regular Interest in REMIC III.

     

    Class
      P Certificate Account:
      The
      Eligible Account established and maintained by the Securities Administrator
      pursuant to Section 5.09.

     

    Class
      R Certificate:
      Any
      Certificate designated as a “Class R” Certificate on the face thereof in the
      form of Exhibit A-6 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-I Interest, Class R-II Interest and Class R-III
      Interest.

     

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

     

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

     

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

     

    Class
      X Certificate:
      Any
      Certificate designated as a “Class 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 X Certificates as set forth herein and
      evidencing (i) a REMIC 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
      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 1 through 25 of Section 5.04(a)(iii)(B);
      provided, however that on and after the Distribution Date on which the
      Certificate Principal Balances of the Publicly Offered Certificates and the
      Class B Certificates have been reduced to zero, the Class X Distribution Amount
      shall include the Overcollateralization Amount. 

     

    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 (R) 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-IA1, REMIC II Regular Interest LT-IIA1, REMIC
      II
      Regular Interest LT-IIA2, REMIC II Regular Interest LT-IIA3, REMIC II Regular
      Interest LT-IIA4, 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-M6, REMIC II Regular
      Interest LT-M7, REMIC II Regular Interest LT-M8, REMIC II Regular Interest
      LT-M9, REMIC II Regular Interest LT-B1, REMIC II Regular Interest LT-B2 and
      REMIC II Regular Interest LT-ZZ. For purposes of calculating the Pass-Through
      Rate for the Class X Certificates, 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-IA1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-IA1;

     

    (C)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-IIA1,
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-IIA1;

     

    (D)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-IIA2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-IIA2;

     

    (E)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-IIA3,
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-IIA3;

     

    (F)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-IIA4,
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-IIA4;

     

    (G)  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;

     

    (H)  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;

     

    (I)  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;

     

    (J)  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; 

     

    (K)  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; 

     

    (L)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M6
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M6;

     

    (M)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M7
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M7;

     

    (N)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M8
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M8;

     

    (O)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M9
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M9;

     

    (P)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-B1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-B1;

     

    (Q)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-B2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-B2; and

     

    (R)  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.

     

    Cleanup
      Call:
      As
      defined in Section 10.01.

     

    Closing
      Date:
      August
      31, 2006.

     

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

     

    Combined
      Loan-to-Value Ratio:
      With
      respect to any Mortgage Loan as of any Determination Date, the ratio on such
      Determination Date of the Stated Principal Balance of the Mortgage Loan and
      any
      other mortgage loan which is secured by a lien on the related Mortgaged Property
      to the Appraised Value of the Mortgaged Property.

     

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

     

    Compensating
      Interest:
      With
      respect to any Distribution Date and (i) Ocwen, an amount equal to the lesser
      of
      (a) the aggregate amount of Prepayment Interest Shortfalls resulting from
      prepayments in full on the Mortgage Loans serviced by Ocwen for such
      Distribution Date and received during the portion of the Prepayment Period
      occurring from the 16th
      day of
      the month prior to the month in which the related Distribution Date occurs
      and
      ending on the last day of such month, and (b) the aggregate Servicing Fee due
      Ocwen on the Mortgage Loans serviced by Ocwen for such Distribution Date, (ii)
      Wells Fargo Bank, as servicer an amount equal to the lesser of (a) the aggregate
      amount of Prepayment Interest Shortfalls resulting from prepayments in full
      on
      the Mortgage Loans serviced by Wells Fargo Bank for such Distribution Date
      and
      received during the related Prepayment Period, and (b) the aggregate Servicing
      Fee due Wells Fargo Bank on the Mortgage Loans serviced by Wells Fargo Bank
      for
      such Distribution Date, or (iii) the Master Servicer, any Prepayment Interest
      Shortfall required to be funded by the Servicers pursuant to clause (i) and
      (ii)
      of this definition and not funded by the Servicers, up to the aggregate Master
      Servicing Compensation due to the Master Servicer for such Distribution
      Date.

     

    Corporate
      Trust Office:
      The
      principal corporate trust office of the Trustee which office at the date of
      the
      execution of this instrument is located at 452 Fifth Avenue, New York, New
      York
      10018, Attention: Nomura Home Equity Loan, Inc., 2006-HE3 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. 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 (NHEL 2006-HE3),
      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
      (NHEL 2006-HE3) (or for overnight deliveries, at 9062 Old Annapolis Road,
      Columbia, Maryland 21045, Attention: Corporate Trust Services - Client Manager
      (NHEL 2006-HE3)).

     

    Corresponding
      Certificate:
      With
      respect to:

     

    
      	
              (i)

            	
              REMIC
                II Regular Interest LT-IA1, the Class I-A-1
                Certificates;

            
	
              (ii)

            	
              REMIC
                II Regular Interest LT-IIA1, the Class II-A-1
                Certificates;

            
	
              (iii)

            	
              REMIC
                II Regular Interest LT-IIA2, the Class II-A-2
                Certificates;

            
	
              (iv)

            	
              REMIC
                II Regular Interest LT-IIA3, the Class II-A-3
                Certificates;

            
	
              (v)

            	
              REMIC
                II Regular Interest LT-IIA4, the Class II-A-4
                Certificates;

            
	
              (vi)

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

            
	
              (vii)

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

            
	
              (viii)

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

            
	
              (ix)

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

            
	
              (x)

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

            
	
              (xi)

            	
              REMIC
                II Regular Interest LT-M6, the Class M-6 Certificates;

            
	
              (xii)

            	
              REMIC
                II Regular Interest LT-M7, the Class M-7 Certificates;

            
	
              (xiii)

            	
              REMIC
                II Regular Interest LT-M8, the Class M-8 Certificates;

            
	
              (xiv)

            	
              REMIC
                II Regular Interest LT-M9, the Class M-9 Certificates;

            
	
              (xv)

            	
              REMIC
                II Regular Interest LT-B1, the Class B-1 Certificates;

            
	
              (xvi)

            	
              REMIC
                II Regular Interest LT-B2, the Class B-2 Certificates;

            
	
              (xvii)

            	
              REMIC
                II Regular Interest LT-P, the Class P
                Certificates.

            

    

    

    Credit
      Risk Manager:
      Wells
      Fargo Bank, National Association, and its successors and assigns.

     

    Current
      Interest:
      With
      respect to any Class of Senior Certificates and Subordinate 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 Subordinate 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 Subordinate Certificate after the Distribution Date
      on
      which the outstanding Certificate Principal Balance of such Certificate has
      been
      reduced to zero.

     

    Custodial
      Account:
      Each
      account established and maintained by the Servicers with respect to receipts
      on
      the related Mortgage Loans and related REO Properties in accordance with
      Section 3.26(b) of this Agreement or the Servicing Agreement, as
      applicable.

     

    Custodial
      Agreement:
      The
      Custodial Agreement dated as of August 1, 2006 among Wells Fargo, in its
      capacity as Custodian, the Servicers and the Trustee.

     

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

     

    Cut-off
      Date:
      August
      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.

     

    DBRS:
      Dominion Bond Rating Service or its successor in interest.

     

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

     

    Defaulting
      Party:
      As
      defined in the Swap Agreement.

     

    Deferred
      Amount:
      With
      respect to any Class of Subordinate 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 than the then outstanding
      indebtedness under such Mortgage Loan, or any reduction in the amount of
      principal to be paid in connection with any Scheduled Payment that results
      in a
      permanent forgiveness of principal, which valuation or reduction results from
      an
      order of such court that is final and non-appealable in a proceeding under
      the
      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 the Mortgage Loans and 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 sixty (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 all Mortgage Loans as of the close of
      the
      last day of the related Due Period.

     

    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
      Home Equity Loan, Inc., 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
      Account:
      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 and designated “HSBC Bank USA, National Association, in trust
      for registered holders of Nomura Home Equity Loan, Inc., Asset-Backed
      Certificates, Series 2006-HE3”. 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 (25th)
      day is
      not a Business Day, the next succeeding Business Day, commencing in September
      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.

     

    Escrow
      Account:
      Shall
      mean the account or accounts maintained by Ocwen pursuant to Section 3.29
      of this Agreement or by Wells Fargo pursuant to the Servicing Agreement. Each
      Escrow Account shall be an Eligible Account.

     

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

     

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

     

    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 Master Servicer Fee Rate and Servicing Fee Rate attributable to the
      Mortgage Loans.

     

    Extra
      Principal Distribution Amount:
      With
      respect to any Distribution Date, is the lesser of (x) the Overcollateralization
      Deficiency Amount for such Distribution Date and (y) the sum of (i) the Monthly
      Excess Cashflow for such Distribution Date and (ii) amounts available from
      the
      Supplemental Interest Trust to pay principal as provided in Section
      5.04(b)(ii).

     

    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 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 and its successor in interest.

     

    Form
      8-K Disclosure Information:
      Has the
      meaning set forth in Section 5.13(c) of this Agreement.

     

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

     

    Gross
      Margin:
      With
      respect to each adjustable rate 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.

     

    Group
      I Certificates:
      The
      Class I-A-1 Certificates.

     

    Group
      I Allocation Amount:
      With
      respect to any Distribution Date, the product of the Senior Principal Payment
      Amount for that Distribution Date and a fraction the numerator of which is
      the
      Principal Remittance Amount derived from the Group I Mortgage Loans and the
      denominator of which is the Principal Remittance Amount, in each case for that
      Distribution Date.

     

    Group
      I Allocation Percentage:
      With
      respect to any Distribution Date, the Aggregate Loan Group Balance of the Group
      I Mortgage Loans divided by the Aggregate Loan Balance.

     

    Group
      I Excess Interest Amount:
      With
      respect to any Distribution Date, the product of the Monthly Excess Interest
      required to be distributed on that Distribution Date pursuant to Section
      5.04(a)(iii)(1)(A) and a fraction the numerator of which is the Principal
      Remittance Amount derived from the Group I Mortgage Loans and the denominator
      of
      which is the Principal Remittance Amount, in each case for that Distribution
      Date.

     

    Group
      I Mortgage Loans:
      Those
      Mortgage Loans identified on the Mortgage Loan Schedule as Group I Mortgage
      Loans.

     

    Group
      II Certificates:
      The
      Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4
      Certificates.

     

    Group
      II Allocation Amount:
      With
      respect to any Distribution Date, the product of the Senior Principal Payment
      Amount for that Distribution Date and a fraction the numerator of which is
      the
      Principal Remittance Amount derived from the Group II Mortgage Loans and the
      denominator of which is the Principal Remittance Amount, in each case for that
      Distribution Date.

     

    Group
      II Allocation Percentage:
      With
      respect to any Distribution Date, the Aggregate Loan Group Balance of the Group
      II Mortgage Loans divided by the Aggregate Loan Balance.

     

    Group
      II Excess Interest Amount:
      With
      respect to any Distribution Date, the product of the Monthly Excess Interest
      required to be distributed on that Distribution Date pursuant to Section
      5.04(a)(iii)(1)(A) and a fraction the numerator of which is the Principal
      Remittance Amount derived from the Group II Mortgage Loans and the denominator
      of which is the Principal Remittance Amount, in each case for that Distribution
      Date.

     

    Group
      II Mortgage Loans:
      Those
      Mortgage Loans identified on the Mortgage Loan Schedule as Group II Mortgage
      Loans.

     

    Indemnified
      Persons:
      The
      Trustee, any Servicer (including any successor to any Servicer), the Master
      Servicer, the Securities Administrator, the Custodian 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 adjustable rate Mortgage Loan which will generally be based on
      Six-Month 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 Servicer of the
      related Mortgage Loan 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 in the Servicing Agreement, as applicable, 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 and each Loan Group, the portion of the
      Available Distribution Amount for such Distribution Date, generally equal to
      (i)
      the sum, without duplication, of (a) all scheduled interest received during
      the
      related Due Period with respect to the related Mortgage Loans less the Servicing
      Fee, the Master Servicing Fee, the fee payable to any provider of lender-paid
      mortgage insurance, if any, and Prepayment Interest Excess, if any, with respect
      to the related Mortgage Loans, (b) all Advances relating to interest with
      respect to the related Mortgage Loans made on or prior to the related Remittance
      Date, (c) all Compensating Interest with respect to the related Mortgage Loans
      and required to be remitted by the related Servicer or the Master Servicer
      pursuant to this Agreement or the Servicing Agreement, as applicable, with
      respect to such Distribution Date, (d) Liquidation Proceeds and Subsequent
      Recoveries with respect to the related Mortgage Loans collected during the
      related Prepayment Period (to the extent such Liquidation Proceeds and
      Subsequent Recoveries relate to interest), (e) all amounts relating to interest
      with respect to each related Mortgage Loan repurchased by the Sponsor pursuant
      to Sections 2.02 and 2.03 and (f) 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
      (ii) all amounts required to be reimbursed by the Trust pursuant to
      Sections 3.27, 3.32, 7.03 or as otherwise set forth in this Agreement or
      the Custodial Agreement,
      allocated
      to the respective Loan Group on a pro rata basis, based on the Aggregate Loan
      Group Balance as of the last day of the related Due Period, to the extent such
      amounts are attributable to both Loan Groups, and otherwise allocated to the
      Loan Group to which such amounts are attributable.

     

    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 August 31, 2006, as amended and supplemented
      from time to time, between the Swap Provider and the Trustee, as trustee on
      behalf of the Supplemental Interest Trustee.

     

    Last
      Scheduled Distribution Date:
      With
      respect to the Certificates, the Distribution Date in July 2036.

     

    Latest
      Possible Maturity Date:
      The
      first 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 each REMIC 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
      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
      Group:
      Either
      Loan Group I or Loan Group II. “Loan Group I” refers to the Group I Mortgage
      Loans and “Loan Group II” refers to the Group II Mortgage Loans.

     

    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 Publicly Offered Certificates and the Class B Certificates 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-IA1, REMIC II Regular Interest LT-IIA1, REMIC II Regular Interest
      LT-IIA2, REMIC II Regular Interest LT-IIA3, REMIC II Regular Interest LT-IIA4,
      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-M6, REMIC II Regular Interest
      LT-M7, REMIC II Regular Interest LT-M8, REMIC II Regular Interest LT-M9, REMIC
      II Regular Interest LT-B1, REMIC II Regular Interest LT-B2 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 LT-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
      Servicing Fee:
      With
      respect to each Mortgage Loan and for any calendar month, an amount equal to
      one
      twelfth of the product of the Master Servicing Fee Rate multiplied by the Stated
      Principal Balance of the Mortgage Loans as of the Due Date in the preceding
      calendar month. The Master Servicing Fee includes the Credit Risk Manager’s
      fee.

     

    Master
      Servicing Fee Rate:
      0.0110%
      per annum.

     

    Master
      Servicing Compensation:
      The
      Master Servicing Fee plus all income and gain realized from any investment
      of
      funds in the Distribution Account.

     

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

     

    Maximum
      Interest Rate:
      With
      respect to any Distribution Date and the related Accrual Period and the related
      Senior Certificates, an annual rate equal to the weighted average of the Maximum
      Mortgage Interest Rates of the Mortgage Loans in the related Loan Group as
      stated on the Mortgage Loan Schedule minus the weighted average Expense Fee
      Rate
      of the Mortgage Loans in the related Loan Group. With respect to any
      Distribution Date and the related Accrual Period and the Subordinate
      Certificates,
      an
      annual rate equal to the weighted average of the Maximum Mortgage Interest
      Rates
      of the Mortgage Loans as stated on the Mortgage Loan Schedule minus the weighted
      average Expense Fee 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 adjustable rate 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, Class, M-3, Class M-4, Class M-5, Class M-6, Class M-7,
      Class M-8 and Class M-9 Certificates.

     

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

     

    Minimum
      Mortgage Interest Rate:
      With
      respect to each adjustable rate 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 Servicer appointed pursuant to Section 7.06(b)
      hereunder:

     

    (i)  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

     

    (ii)  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
      Subordinate 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 Subordinate Certificates
      for such Distribution Date.

     

    Monthly
      Statement:
      The
      statement delivered to the Certificateholders pursuant to
      Section 5.06.

     

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

     

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

     

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

     

    Mortgage
      Loan Documents:
      As
      defined in Section 2.01.

     

    Mortgage
      Loans:
      Each 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 August 31, 2006, between the
      Sponsor, as seller and the Depositor, as purchaser, a form of which is attached
      hereto as Exhibit
      C.

     

    Mortgage
      Loan Schedule:
      The
      list of Mortgage Loans (as from time to time amended by the Servicer of the
      related Mortgage Loans 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, setting forth the following information with
      respect to each Mortgage Loan:

     

    (i)  the
      Mortgage Loan identifying number;

     

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

     

    (iii)  the
      type
      of Residential Dwelling constituting the Mortgaged Property;

     

    (iv)  the
      original months to maturity;

     

    (v)  the
      original date of the Mortgage Loan and the remaining months to maturity from
      the
      Cut-off Date, based on the original amortization schedule;

     

    (vi)  the
      Loan-to-Value Ratio or Combined Loan-to-Value Ratio, as applicable, at
      origination;

     

    (vii)  the
      Mortgage Rate in effect immediately following the Cut-off Date;

     

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

     

    (ix)  the
      stated maturity date;

     

    (x)  the
      amount of the Monthly Payment at origination;

     

    (xi)  the
      amount of the Monthly Payment as of the Cut-off Date;

     

    (xii)  the
      last
      Due Date on which a Monthly Payment was actually applied to the unpaid Stated
      Principal Balance;

     

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

     

    (xiv)  the
      Stated Principal Balance of the Mortgage Loan as of the close of business on
      the
      Cut-off Date;

     

    (xv)  with
      respect to each adjustable rate Mortgage Loan, the first Adjustment
      Date;

     

    (xvi)  with
      respect to each adjustable rate Mortgage Loan, the Gross Margin;

     

    (xvii)  a
      code
      indicating the purpose of the loan (i.e., purchase financing, rate/term
      refinancing, cash-out refinancing);

     

    (xviii)  with
      respect to each adjustable rate Mortgage Loan, the Maximum Mortgage Rate under
      the terms of the Mortgage Note;

     

    (xix)  with
      respect to each adjustable rate Mortgage Loan, the Minimum Mortgage Rate under
      the terms of the Mortgage Note;

     

    (xx)  the
      Mortgage Rate at origination;

     

    (xxi)  with
      respect to each adjustable rate Mortgage Loan, the Periodic Rate
      Cap;

     

    (xxii)  with
      respect to each adjustable rate Mortgage Loan, the first Adjustment Date
      immediately following the Cut-off Date;

     

    (xxiii)  with
      respect to each adjustable rate Mortgage Loan, the Index;

     

    (xxiv)  the
      date
      on which the first Monthly Payment was due on the Mortgage Loan and, if such
      date is not consistent with the Due Date currently in effect, such Due
      Date;

     

    (xxv)  a
      code
      indicating whether the Mortgage Loan is an Adjustable Rate Mortgage Loan or
      a
      fixed rate Mortgage Loan;

     

    (xxvi)  a
      code
      indicating the documentation style (i.e., full, stated or limited);

     

    (xxvii)  a
      code
      indicating if the Mortgage Loan is subject to a primary insurance policy or
      lender paid mortgage insurance policy and the name of the insurer;

     

    (xxviii)  the
      Appraised Value of the Mortgaged Property;

     

    (xxix)  the
      sale
      price of the Mortgaged Property, if applicable;

     

    (xxx)  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;

     

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

     

    (xxxii)  the
      Mortgagor’s debt to income ratio;

     

    (xxxiii)  the
      FICO
      score at origination; 

     

    (xxxiv)  the
      initial seller who sold such Mortgage Loan to the Sponsor;

     

    (xxxv)  the
      related Loan Group; and

     

    (xxxvi)  the
      related 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 with respect to each adjustable rate Mortgage Loan
      (A)
      as of any date of determination until the first Adjustment Date following the
      Cut-off Date shall be the rate set forth in the Mortgage Loan Schedule as the
      Mortgage 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 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 and the Group I Certificates, a per annum
      rate
      equal to the product of (I)(a) a fraction, expressed as a percentage, the
      numerator of which is the Optimal Interest Remittance Amount for such
      Distribution Date and the denominator of which is the aggregate Stated Principal
      Balance of the Group I Mortgage Loans for the immediately preceding Distribution
      Date, minus (b) the sum of (1) the Group I Allocation Percentage of any Net
      Swap
      Payment payable to the Swap Provider on such Distribution Date, divided by
      the
      outstanding Stated Principal Balance of the Group I Mortgage Loans for the
      immediately preceding Distribution Date, and (2) the Group I Allocation
      Percentage of 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
      swap
      agreement that may be entered into by the Supplemental Interest Trust Trustee)
      payable to the Swap Provider on such Distribution Date, divided by the
      outstanding aggregate Stated Principal Balance of the Group I Mortgage Loans
      for
      the immediately preceding Distribution Date and (II) 12. The Net Funds Cap
      with
      respect to the Group I Certificates will be adjusted to an effective rate
      reflecting the accrual of interest on an actual/360 basis. With respect to
      any
      Distribution Date and the REMIC III Regular Interests the ownership of which
      is
      represented by the Group I Certificates, a per annum rate equal to the weighted
      average (adjusted for the actual number of days elapsed in the related Accrual
      Period) of the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular
      Interest LT-1GRP, weighted on the basis of the Uncertificated Principal Balance
      of such REMIC II Regular Interest immediately prior to such Distribution
      Date

     

    With
      respect to any Distribution Date and the Group II Certificates, a per annum
      rate
      equal to the product of (I)(a) a fraction, expressed as a percentage, the
      numerator of which is the Optimal Interest Remittance Amount for such
      Distribution Date and the denominator of which is the aggregate Stated Principal
      Balance of the Group II Mortgage Loans for the immediately preceding
      Distribution Date, minus (b) the sum of (1) the Group II Allocation Percentage
      of any Net Swap Payment payable to the Swap Provider on such Distribution Date,
      divided by the outstanding Stated Principal Balance of the Group II Mortgage
      Loans for the immediately preceding Distribution Date, and (2) the Group II
      Allocation Percentage of 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 swap agreement that may be entered into by the Supplemental Interest
      Trust Trustee) payable to the Swap Provider on such Distribution Date, divided
      by the outstanding aggregate Stated Principal Balance of the Group II Mortgage
      Loans for the immediately preceding Distribution Date and (II) 12. With respect
      to any Distribution Date and the REMIC III Regular Interests the ownership
      of
      which is represented by the Group II Certificates, a per annum rate equal to
      the
      weighted average (adjusted for the actual number of days elapsed in the related
      Accrual Period) of the Uncertificated REMIC II Pass-Through Rate on REMIC II
      Regular Interest LT-2GRP, weighted on the basis of the Uncertificated Principal
      Balance of such REMIC II Regular Interest immediately prior to such Distribution
      Date.

     

    With
      respect to the Subordinate Certificates, a per annum rate equal to the weighted
      average (weighted on the basis of the results of subtracting from the aggregate
      Stated Principal Balance of each Loan Group the current aggregate Certificate
      Principal Balance of the related Senior Certificates) of the Net Funds Cap
      for
      the Group I Certificates and the Net Funds Cap for the Group II Certificates.
      For federal income tax purposes, the equivalent of the foregoing shall be
      expressed as the weighted average of the Uncertificated REMIC II Pass-Through
      Rates on REMIC II Regular Interest LT-1SUB and REMIC II Regular Interest
      LT-2SUB, in each case subject to a cap and a floor equal Net Funds Cap for
      the
      Group I Certificates and the Net Funds Cap for the Group II Certificates,
      respectively, weighted in each case on the basis of the Uncertificated Principal
      Balance of each such REMIC II Regular Interest. With respect to any Distribution
      Date and the REMIC III Regular Interests the ownership of which is represented
      by the Subordinate Certificates, a per annum rate equal to the weighted average
      (adjusted for the actual number of days elapsed in the related Accrual Period)
      of (a) REMIC II Regular Interest LT-1SUB, subject to a cap and a floor equal
      to
      the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular Interest
      LT-1GRP and (b) REMIC II Regular Interest LT-2SUB, subject to a cap and a floor
      equal to the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular
      Interest LT-2GRP, in each case as determined for such Distribution Date,
      weighted on the basis of the Uncertificated Principal Balance of each such
      REMIC
      II Regular Interest immediately prior to such Distribution Date.

     

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

     

    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 Expense Fee Rate and (ii) 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 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 Distribution Date shall be equal to the lesser of (a) the Aggregate Loan
      Balance of the Mortgage Loans on the Business Day immediately preceding such
      Distribution Date and (b) the Swap Notional Amount for such Distribution Date
      as
      set forth in the Swap Agreement.

     

    Ocwen:
      Ocwen
      Loan Servicing LLC, and any successor thereto appointed under this Agreement
      in
      connection with the servicing and administration of the Ocwen Mortgage Loans.
      

     

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

     

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

     

    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 the Subordinate 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 5.33000% per
      annum.

     

    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 (A)
      the Senior Certificates,
      will be
      equal to the excess of (i) the product of (1)(x) the weighted average Net
      Mortgage Rates of the Mortgage Loans in
      the
      related Loan Group as
      of the
      first day of the related Due Period divided by (y) 12 and (2) the Aggregate
      Loan
      Balance of the Mortgage Loans in
      the
      related Loan Group 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 in
      the
      related Loan Group or
      were
      not taken into account in computing the Expense
      Fee Rate, and (B) the Subordinate 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 of the Mortgage Loans 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 the Mortgage Loans and any related REO Property pursuant to
      Section 10.01.

     

    Optional
      Termination Date:
      The
      first Distribution Date on which the Master Servicer or Ocwen Loan Servicing,
      LLC, as applicable, may purchase, at its option, the Mortgage Loans and related
      REO Properties as described in Section 10.01.

     

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

     

    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 the Subordinate 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, 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 the
      Subordinate 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, 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 I-A-1, Class II-A-1, Class II-A-2, Class II-A-3, Class II-A-4, Class
      M-1,
      Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8,
      Class M-9, Class B-1, Class B-2 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 any adjustable rate Mortgage Loan, the fixed
      percentage set forth in the related Mortgage Note, which is the maximum amount
      by which the Mortgage Rate for such adjustable rate 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:

     

    (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 (iv) above;

     

    (viii)  securities
      (other than stripped bonds, stripped coupons or instruments sold at a purchase
      price in excess of 115% of the face amount thereof) bearing interest or sold
      at
      a discount issued by any corporation incorporated under the laws of the United
      States or any state thereof which, at the time of such investment, have one
      of
      the two highest 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 or AAAm-G, 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.

     

    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 K (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 Excess:
      With
      respect to each Mortgage Loan serviced by Ocwen that was the subject of a
      Principal Prepayment in full during the portion of the related Prepayment Period
      occurring between the first day of the calendar month in which such Distribution
      Date occurs and the Determination Date of the calendar month in which such
      Distribution Date occurs, an amount equal to interest (to the extent received)
      at the applicable Net Mortgage Rate on the amount of such Principal Prepayment
      for the number of days commencing on the first day of the calendar month in
      which such Distribution Date occurs and ending on the last date through which
      interest is collected from the related Mortgagor. Ocwen may withdraw such
      Prepayment Interest Excess from the related Custodial Account in accordance
      with
      Section 3.27(a)(i) of this Agreement.

     

    Prepayment
      Interest Shortfall:
      With
      respect to any Distribution Date, for each Mortgage Loan that was the subject
      of
      a Principal Prepayment during the portion of the related Prepayment Period
      occurring in the month prior to the month in which such Distribution Date
      occurs, (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 Servicing
      Fee, (b) the Master Servicing 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) Ocwen, the 16th day of the immediately
      preceding calendar month (or with respect to the first Prepayment Period, the
      Closing Date) through the 15th day of the calendar month in which such
      Distribution Date occurs with respect to Principal Prepayments in full and
      the
      calendar month immediately preceding the calendar month in which such
      Distribution Date occurs with respect to Principal Prepayments in part and
      (ii)
      Wells Fargo Bank, the calendar month immediately preceding the calendar month
      in
      which such Distribution Date occurs.

     

    Principal
      Payment Amount:
      With
      respect to each Distribution Date, the Principal Remittance Amount for such
      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 loans purchased or repurchased under Sections
      2.02, 2.03, 3.26 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 and each Loan Group, 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 principal portion of all
      unscheduled collections (other than Payaheads) including Insurance Proceeds,
      Condemnation 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, (c) 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, (d) 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(c), (e) amounts in respect of principal on the
      Mortgage Loans paid by the Master Servicer pursuant to Section 10.01, (f)
      all 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 principal), in each
      case to the extent remitted by the Servicers to the Distribution Account
      pursuant to this Agreement and (g) the principal portion of Payaheads previously
      received on the Mortgage Loans and intended for application in the related
      Due
      Period, minus (ii) all amounts required to be reimbursed by the Trust pursuant
      to Sections 4.02 and 9.05 or as otherwise set forth in this Agreement, the
      Servicing Agreement or the Custodial Agreement and to the extent not reimbursed
      from the Interest Remittance Amount for
      such
      Distribution Date.

     

    Private
      Certificate:
      Each of
      the Class B-1, Class B-2, Class X, Class P and Class R
      Certificates.

     

    Prospectus
      Supplement:
      The
      Prospectus Supplement dated August 29, 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 elected to be repurchased by the Sponsor pursuant
      to Section 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) 30 days’ accrued interest thereon at the applicable Net
      Mortgage Rate, plus any portion of the Servicing Fee, Master 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, S&P, Fitch and DBRS. 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 related Servicer pursuant to this Agreement or the Servicing Agreement.
      To
      the extent a 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 a 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 X, Class P and Class R
      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 Publicly Offered Certificates and Class B 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 Publicly Offered Certificates and Class
      B
      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
      Servicers.

     

    Regular
      Certificate:
      Any
      Certificate other than a Residual Certificate.

     

    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
      Servicers, 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, the Servicing Agreement and the Assignment
      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 Group I Regular Interests:
      REMIC I
      Regular Interest I and REMIC I Regular Interest I-1-A through REMIC I Regular
      Interest I-60-B as designated in the Preliminary Statement hereto.

     

    REMIC
      I Group II Regular Interests:
      REMIC I
      Regular Interest II and REMIC I Regular Interest II-1-A through REMIC I Regular
      Interest II-60-B as designated in the Preliminary Statement hereto.

     

    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.
      The
      REMIC I Regular Interests consist of the REMIC I Group I Regular Interests,
      REMIC I Group II Regular Interests and REMIC I Regular Interest P.

     

    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 (as holders of the Class R-II
      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 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 Marker Allocation Percentage:
      50% of
      any amount payable or loss attributable from the Mortgage Loans, which shall
      be
      allocated to REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-IA1,
      REMIC II Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC
      II
      Regular Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, 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-M6, REMIC II Regular Interest LT-M7, REMIC II Regular
      Interest LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest
      LT-B1, REMIC II Regular Interest LT-B2 and REMIC II Regular Interest
      LT-ZZ.

     

    REMIC
      II Overcollateralization Amount:
      With
      respect to any date of determination, (i) 0.50% of 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-IA1,
      REMIC
      II Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular
      Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, 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-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2 and REMIC II Regular Interest LT-P, 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)
      0.50% of aggregate Stated Principal Balance of the Mortgage Loans and 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-IA1, REMIC II Regular Interest LT-IIA1, REMIC II Regular
      Interest LT-IIA2, REMIC II Regular Interest LT-IIA3, REMIC II Regular Interest
      LT-IIA4, 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-M6, REMIC II Regular Interest
      LT-M7, REMIC II Regular Interest LT-M8, REMIC II Regular Interest LT-M9, REMIC
      II Regular Interest LT-B1, REMIC II Regular Interest LT-B2 and the denominator
      of which is the aggregate of the Uncertificated Principal Balances of REMIC
      II
      Regular Interest LT-IA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular
      Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, 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-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2 and REMIC II Regular Interest LT-ZZ.

     

    REMIC
      II Regular Interests:
      REMIC
      II Regular Interest LT-AA, REMIC II Regular Interest LT-IA, REMIC II Regular
      Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular Interest
      LT-IIA3, REMIC II Regular Interest LT-IIA4, 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-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2, REMIC II Regular Interest LT-ZZ, REMIC II Regular
      Interest LT-P, REMIC II Regular Interest LT-1SUB, REMIC II Regular Interest
      LT-1GRP, REMIC II Regular Interest LT-2SUB, REMIC II Regular Interest LT-2GRP,
      REMIC II Regular Interest LT-XX 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-IA1:
      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-IA1 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-IIA1:
      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-IIA1
      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-IIA2:
      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-IIA2 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-IIA3:
      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-IIA3 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-IIA4:
      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-IIA4 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-B1:
      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-B1 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-B2:
      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-B2 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, subject to the terms and
      conditions hereof.

     

    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 LT-M6:
      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-M6 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-M7:
      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-M7 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-M8:
      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-M8 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-M9:
      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-M9 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-1SUB:
      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-1SUB 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-1GRP:
      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-1GRP 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-2SUB:
      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-2SUB 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-2GRP:
      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-2GRP 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-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 LT-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-IA1, REMIC II Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2,
      REMIC II Regular Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, 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-M6, REMIC II Regular Interest LT-M7, REMIC
      II Regular Interest LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular
      Interest LT-B1 and REMIC II Regular Interest LT-B2 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 Sub
      WAC Allocation Percentage:
      50% of
      any amount payable or loss attributable from the Mortgage Loans, which shall
      be
      allocated to REMIC II Regular Interest LT-1SUB, REMIC II Regular Interest
      LT-1GRP, REMIC II Regular Interest LT-2SUB, REMIC II Regular Interest LT-2GRP
      and REMIC II Regular Interest LT-XX.

     

    REMIC
      II Subordinated Balance Ratio:
      The
      ratio among the Uncertificated Principal Balances of each REMIC II Regular
      Interest ending with the designation “SUB”, equal to the ratio between, with
      respect to each such REMIC II Regular Interest, the excess of (x) the aggregate
      Stated Principal Balance of the Group I Mortgage Loans and the Group II Mortgage
      Loans, as applicable, over (y) the current Certificate Principal Balance of
      the
      related Senior Certificates.

     

    REMIC
      II Targeted Overcollateralization Amount:
      0.50%
      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 Certificate:
      Any
      Regular Certificate or Class R Certificate.

     

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

     

    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, Regular Certificate or
      Class IO Interest.

     

    Remittance
      Date:
      Shall
      mean (a) with respect to Ocwen, not later than 3:00 p.m. Eastern Time on the
      twenty-third (23rd) day of the month and if such day is not a Business Day,
      the
      immediately preceding Business Day and (b) with respect to Wells Fargo, the
      eighteenth (18th)
      day of
      the month and if such day is not a Business Day, the immediately following
      Business Day.

     

    REO
      Property:
      A
      Mortgaged Property acquired by the related 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) 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 or Combined 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) have the same lien priority as the Deleted Mortgage
      Loan; (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, if applicable; (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, if applicable; 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 5.13(c) of this Agreement.

     

    Reporting
      Servicer:
      Shall
      mean the 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.

     

    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 5.13.

     

    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
      Certificates:
      The
      Class I-A-1, Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4
      Certificates.

     

    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 Subordinate Certificates and the Overcollateralization
      Amount, in each case after giving effect to payments on such Distribution Date
      (assuming no Trigger Event is in effect), 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) 50.70% 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) 0.50% of the
      Aggregate Loan Balance as of the Cut-off Date.

     

    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.

     

    Servicer:
      Shall
      mean either Ocwen or Wells Fargo, or any successor thereto appointed hereunder
      in connection with the servicing and administration of the 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 of this Agreement or pursuant to the Servicing
      Agreement.

     

    Servicing
      Advances:
      All
      customary, reasonable and necessary “out of pocket” costs and expenses
      (including reasonable legal fees) incurred prior to, on or after the Cut-off
      Date in the performance by a Servicer of its servicing obligations hereunder,
      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, (v) payment of taxes, (vi) obtaining
      broker price opinions and (vii) obtaining any legal documentation required
      to be
      included in the Mortgage File and/or correcting any outstanding title issues
      (i.e., any lien or encumbrance on the Mortgaged Property that prevents the
      effective enforcement of the intended lien position) reasonably necessary for
      the related Servicer to perform its obligations under this Agreement or the
      Servicing Agreement, as applicable. Servicing Advances also include any
      reasonable “out-of-pocket” cost and expenses (including legal fees) incurred by
      a Servicer in connection with executing and recording instruments of
      satisfaction, deeds of reconveyance or Assignments to the extent not recovered
      from the Mortgagor or otherwise payable under this Agreement or the Servicing
      Agreement, as applicable. The Servicers shall not be required to make any
      Servicing Advances that would constitute a Nonrecoverable Advance, provided
      that
      such Servicer delivers an Officer’s Certificate to the Master Servicer and the
      Trustee certifying that such Servicing Advance would constitute a Nonrecoverable
      Advance.

     

    Servicing
      Agreement:
      The
      Seller’s
      Warranties and Servicing Agreement, dated as of March 1, 2006, between the
      Sponsor and Wells Fargo (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:
      0.50%
      per annum.

     

    Servicing
      Function Participant:
      Means
      any Subservicer or Subcontractor of the Servicers, the Master Servicer and
      the
      Securities Administrator or the Custodian, respectively. For purposes of Section
      5.13(b), such term also shall include the Servicers, the Master Servicer, the
      Securities Administrator and the Custodian.

     

    Servicing
      Officer:
      Any
      officer of a Servicer involved in, or responsible for, the administration and
      the servicing of 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 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
      later to occur of (x) the Distribution Date in September 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 Publicly
      Offered Certificates and the Class B Certificates on such Distribution Date)
      is
      greater than or equal to 49.30%.

     

    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 any Mortgage Loans
      under the direction or authority of a Servicer (or a Subservicer of the
      Servicer), the Master Servicer, the Trustee, the Custodian or the Securities
      Administrator and is determined by the Person engaging such vendor,
      subcontractor or other Person to be “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB.

     

    Subordinate
      Certificates:
      Shall
      mean, collectively, the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class B-1 and Class B-2
      Certificates.

     

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

     

    Subservicer:
      Shall
      mean any Person who is identified in Item 1122(d) of Regulation AB that services
      the 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 by such Subservicer subject to Section 3.03
      of
      this Agreement or the Servicing Agreement, as applicable.

     

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

     

    Successor
      Servicer:
      The
      Master Servicer or any successor to the Servicer appointed pursuant to
      Section 8.02 of this Agreement or pursuant to the Servicing Agreement, as
      applicable, after the occurrence of a Servicer Default or upon the resignation
      of the Servicer pursuant to this Agreement or pursuant to the Servicing
      Agreement, as applicable.

     

    Supplemental
      Interest Trust:
      The
      corpus of a trust created pursuant to Section 5.11 of this Agreement and
      designated as the “Supplemental Interest Trust,” consisting of the Swap
      Agreement, the Class IO Interest 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.

     

    Supplemental
      Interest Trust Trustee:
      HSBC
      Bank USA, National Association, as trustee on behalf of the Supplemental
      Interest Trust

     

    Swap
      Agreement:
      The
      interest rate swap agreement, dated August 31, 2006, between the Supplemental
      Interest Trust Trustee, 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 Swiss Re Financial Products Corporation.

     

    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, 2.95% 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) 5.90% of the Aggregate Loan Balance for such
      Distribution Date, or (b) 0.50% 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 the Subordinate 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 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
      Delinquency Rate as of the last day of the related Due Period exceeds 32.45%
      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
      percentage set forth in the following table:

     

    
      	
              Distribution
                Date

            	
              Percentage

            
	
              September
                2008 - August 2009

            	
              1.50%

            
	
              September
                2009 - August 2010

            	
              3.35%

            
	
              September
                2010 - August 2011

            	
              5.25%

            
	
              September
                2011 - August 2012

            	
              6.75%

            
	
              September
                2012 - August 2013

            	
              7.55%

            
	
              September
                2013 and thereafter

            	
              7.60%

            

    

    

    *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 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 and 5.07).

     

    Uncertificated
      Notional Amount:
      With
      respect to the Class X Interest and any Distribution Date, an amount equal
      to
      the aggregate Uncertificated Principal Balance of the REMIC II Regular Interests
      (other than REMIC II Regular Interest P) for such Distribution Date.

     

    With
      respect to REMIC II Regular Interest LT-IO and each Distribution Date listed
      below, the aggregate Uncertificated Principal Balance of the REMIC 1 Regular
      Interests ending with the designation “A” listed below: 

     

    
      	
              Distribution
                Date

            	
              REMIC
                1 Regular Interests

            
	
              1

            	
              I-1-A
                through I-60-A and II-1-A through II-60-A 

            
	
              2

            	
              I-2-A
                through I-60-A and II-2-A through II-60-A 

            
	
              3

            	
              I-3-A
                through I-60-A and II-3-A through II-60-A 

            
	
              4

            	
              I-4-A
                through I-60-A and II-4-A through II-60-A 

            
	
              5

            	
              I-5-A
                through I-60-A and II-5-A through II-60-A 

            
	
              6

            	
              I-6-A
                through I-60-A and II-6-A through II-60-A 

            
	
              7

            	
              I-7-A
                through I-60-A and II-7-A through II-60-A 

            
	
              8

            	
              I-8-A
                through I-60-A and II-8-A through II-60-A 

            
	
              9

            	
              I-9-A
                through I-60-A and II-9-A through II-60-A 

            
	
              10

            	
              I-10-A
                through I-60-A and II-10-A through II-60-A 

            
	
              11

            	
              I-11-A
                through I-60-A and II-11-A through II-60-A 

            
	
              12

            	
              I-12-A
                through I-60-A and II-12-A through II-60-A 

            
	
              13

            	
              I-13-A
                through I-60-A and II-13-A through II-60-A 

            
	
              14

            	
              I-14-A
                through I-60-A and II-14-A through II-60-A 

            
	
              15

            	
              I-15-A
                through I-60-A and II-15-A through II-60-A 

            
	
              16

            	
              I-16-A
                through I-60-A and II-16-A through II-60-A 

            
	
              17

            	
              I-17-A
                through I-60-A and II-17-A through II-60-A 

            
	
              18

            	
              I-18-A
                through I-60-A and II-18-A through II-60-A 

            
	
              19

            	
              I-19-A
                through I-60-A and II-19-A through II-60-A 

            
	
              20

            	
              I-20-A
                through I-60-A and II-20-A through II-60-A 

            
	
              21

            	
              I-21-A
                through I-60-A and II-21-A through II-60-A 

            
	
              22

            	
              I-22-A
                through I-60-A and II-22-A through II-60-A 

            
	
              23

            	
              I-23-A
                through I-60-A and II-23-A through II-60-A 

            
	
              24

            	
              I-24-A
                through I-60-A and II-24-A through II-60-A 

            
	
              25

            	
              I-25-A
                through I-60-A and II-25-A through II-60-A 

            
	
              26

            	
              I-26-A
                through I-60-A and II-26-A through II-60-A 

            
	
              27

            	
              I-27-A
                through I-60-A and II-27-A through II-60-A 

            
	
              28

            	
              I-28-A
                through I-60-A and II-28-A through II-60-A 

            
	
              29

            	
              I-29-A
                through I-60-A and II-29-A through II-60-A 

            
	
              30

            	
              I-30-A
                through I-60-A and II-30-A through II-60-A 

            
	
              31

            	
              I-31-A
                through I-60-A and II-31-A through II-60-A 

            
	
              32

            	
              I-32-A
                through I-60-A and II-32-A through II-60-A 

            
	
              33

            	
              I-33-A
                through I-60-A and II-33-A through II-60-A 

            
	
              34

            	
              I-34-A
                through I-60-A and II-34-A through II-60-A 

            
	
              35

            	
              I-35-A
                through I-60-A and II-35-A through II-60-A 

            
	
              36

            	
              I-36-A
                through I-60-A and II-36-A through II-48-A

            
	
              37

            	
              I-37-A
                through I-60-A and II-37-A through II-48-A

            
	
              38

            	
              I-38-A
                through I-60-A and II-38-A through II-48-A

            
	
              39

            	
              I-39-A
                through I-60-A and II-39-A through II-48-A

            
	
              40

            	
              I-40-A
                through I-60-A and II-40-A through II-48-A

            
	
              41

            	
              I-41-A
                through I-60-A and II-41-A through II-48-A

            
	
              42

            	
              I-42-A
                through I-60-A and II-42-A through II-48-A

            
	
              43

            	
              I-43-A
                through I-60-A and II-43-A through II-48-A

            
	
              44

            	
              I-44-A
                through I-60-A and II-44-A through II-48-A

            
	
              45

            	
              I-45-A
                through I-60-A and II-45-A through II-48-A

            
	
              46

            	
              I-46-A
                through I-60-A and II-46-A through II-48-A

            
	
              47

            	
              I-47-A
                through I-60-A and II-47-A through II-60-A

            
	
              48

            	
              I-48-A
                through I-60-A and II-48-A through II-60-A

            
	
              49

            	
              I-49-A
                through I-60-A and II-49-A through II-60-A

            
	
              50

            	
              I-50-A
                through I-60-A and II-50-A through II-60-A

            
	
              51

            	
              I-51-A
                through I-60-A and II-51-A through II-60-A

            
	
              52

            	
              I-52-A
                through I-60-A and II-52-A through II-60-A

            
	
              53

            	
              I-53-A
                through I-60-A and II-53-A through II-60-A

            
	
              54

            	
              I-54-A
                through I-60-A and II-54-A through II-60-A

            
	
              55

            	
              I-55-A
                through I-60-A and II-55-A through II-60-A

            
	
              56

            	
              I-56-A
                through I-60-A and II-56-A through II-60-A

            
	
              57

            	
              I-57-A
                through I-60-A and II-57-A through II-60-A

            
	
              58

            	
              I-58-A
                through I-60-A and II-58-A through II-60-A

            
	
              59

            	
              I-59-A
                and I-60-A and II-59-A and II-60-A

            
	
              60

            	
              I-60-A
                and II-60-A

            
	
              thereafter

            	
              $0.00

            

    

    

    

     

    Uncertificated
      Principal Balance:
      With
      respect to each REMIC Regular Interest (other than REMIC II Regular Interest
      LT-IO), 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 such 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
      Pass-Through Rate:
      The
      Uncertificated REMIC I Pass-Through Rate or Uncertificated REMIC II Pass-Through
      Rate.

     

    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 Loan
      Group I.
      With
      respect to each REMIC
      I
      Group
      I
      Regular Interest ending with the designation “A”, a per annum rate equal to the
      weighted average Net Mortgage Rate of Loan
      Group I
      multiplied by 2, subject to a maximum rate of 10.750%. 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 Loan
      Group I over (ii) 10.750% and (y) 0.00%. With respect to REMIC I Regular
      Interest II, a per annum rate equal to the weighted average Net Mortgage Rate
      of
      Loan Group II. With respect to each REMIC I Group II Regular Interest ending
      with the designation “A”, a per annum rate equal to the weighted average Net
      Mortgage Rate of Loan Group II multiplied by 2, subject to a maximum rate of
      10.750%. With respect to each REMIC I Group II 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 Loan
      Group
      II over (ii) 10.750%
      and (y) 0.00%.

     

    Uncertificated
      REMIC II
      Pass-Through Rate: With respect to REMIC II Regular Interest LT-AA, REMIC II
      Regular Interest LT-IA1,
      REMIC II Regular Interest LT-IIA1,
      REMIC
      II Regular Interest LT-IIA2,
      REMIC
      II Regular Interest LT-IIA3,
      REMIC
      II Regular Interest LT-IIA4,
      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-M6, REMIC II Regular Interest LT-M7, REMIC
      II Regular Interest LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular
      Interest LT-B1, REMIC II Regular Interest LT-B2,
      REMIC II
      Regular Interest LT-ZZ,
      REMIC
      II Regular Interest LT-1SUB, REMIC II Regular Interest LT-2SUB, and REMIC II
      Regular Interest LT-XX,
      a
      per
      annum rate (but not less than zero) equal to the weighted average of (w) with
      respect to REMIC I Regular Interest I, REMIC
      I
      Regular Interest II, 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 Rates 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
                1 Regular Interest

            	
              Rate

            
	
              1

            	
              I-1-A
                through I-60-A

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

            
	 	
              II-1-A
                through II-60-A

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

            
	
              2

            	
              I-2-A
                through I-60-A

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

            
	 	
              II-2-A
                through II-60-A

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

            
	 	
              I-1-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              3

            	
              I-3-A
                through I-60-A

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

            
	 	
              II-3-A
                through II-60-A

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

            
	 	
              I-1-A
                and I-2-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                and II-2-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              4

            	
              I-4-A
                through I-60-A

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

            
	 	
              II-4-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-3-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-3-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              5

            	
              I-5-A
                through I-60-A

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

            
	 	
              II-5-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-4-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-4-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              6

            	
              I-6-A
                through I-60-A

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

            
	 	
              II-6-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-5-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-5-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              7

            	
              I-7-A
                through I-60-A

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

            
	 	
              II-7-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-6-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-6-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              8

            	
              I-8-A
                through I-60-A

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

            
	 	
              II-8-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-7-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-7-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              9

            	
              I-9-A
                through I-60-A

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

            
	 	
              II-9-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-8-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-8-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              10

            	
              I-10-A
                through I-60-A

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

            
	 	
              II-10-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-9-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-9-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              11

            	
              I-11-A
                through I-60-A

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

            
	 	
              II-11-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-10-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-10-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              12

            	
              I-12-A
                through I-60-A

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

            
	 	
              II-12-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-11-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-11-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              13

            	
              I-13-A
                through I-60-A

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

            
	 	
              II-13-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-12-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-12-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              14

            	
              I-14-A
                through I-60-A

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

            
	 	
              II-14-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-13-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-13-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              15

            	
              I-15-A
                through I-60-A

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

            
	 	
              II-15-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-14-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-14-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              16

            	
              I-16-A
                through I-60-A

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

            
	 	
              II-16-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-15-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-15-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              17

            	
              I-17-A
                through I-60-A

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

            
	 	
              II-17-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-16-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-16-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              18

            	
              I-18-A
                through I-60-A

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

            
	 	
              II-18-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-17-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-17-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              19

            	
              I-19-A
                through I-60-A

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

            
	 	
              II-19-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-18-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-18-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              20

            	
              I-20-A
                through I-60-A

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

            
	 	
              II-20-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-19-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-19-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              21

            	
              I-21-A
                through I-60-A

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

            
	 	
              II-21-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-20-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-20-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              22

            	
              I-22-A
                through I-60-A

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

            
	 	
              II-22-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-21-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-21-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              23

            	
              I-23-A
                through I-60-A

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

            
	 	
              II-23-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-22-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-22-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              24

            	
              I-24-A
                through I-60-A

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

            
	 	
              II-24-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-23-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-23-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              25

            	
              I-25-A
                through I-60-A

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

            
	 	
              II-25-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-24-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-24-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              26

            	
              I-26-A
                through I-60-A

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

            
	 	
              II-26-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-25-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-25-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              27

            	
              I-27-A
                through I-60-A

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

            
	 	
              II-27-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-26-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-26-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              28

            	
              I-28-A
                through I-60-A

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

            
	 	
              II-28-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-27-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-27-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              29

            	
              I-29-A
                through I-60-A

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

            
	 	
              II-29-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-28-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-28-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              30

            	
              I-30-A
                through I-60-A

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

            
	 	
              II-30-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-29-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-29-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              31

            	
              I-31-A
                through I-60-A

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

            
	 	
              II-31-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-30-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-30-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              32

            	
              I-32-A
                through I-60-A

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

            
	 	
              II-32-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-31-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-31-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              33

            	
              I-33-A
                through I-60-A

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

            
	 	
              II-33-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-32-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-32-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              34

            	
              I-34-A
                through I-60-A

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

            
	 	
              II-34-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-33-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-33-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              35

            	
              I-35-A
                through I-60-A

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

            
	 	
              II-35-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-34-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-34-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              36

            	
              I-36-A
                and I-60-A

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

            
	 	
              II-36-A
                and II-60-A

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

            
	 	
              I-1-A
                through I-35-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-35-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              37

            	
              I-37-A
                and I-60-A

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

            
	 	
              II-37-A
                and II-60-A

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

            
	 	
              I-1-A
                through I-36-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-36-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              38

            	
              I-38-A
                through I-60-A

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

            
	 	
              II-38-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-37-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-37-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              39

            	
              I-39-A
                through I-60-A

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

            
	 	
              II-39-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-38-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-38-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              40

            	
              I-40-A
                through I-60-A

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

            
	 	
              II-40-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-39-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-39-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              41

            	
              I-41-A
                through I-60-A

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

            
	 	
              II-41-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-40-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-40-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              42

            	
              I-42-A
                through I-60-A

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

            
	 	
              II-42-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-41-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-41-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              43

            	
              I-43-A
                through I-60-A

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

            
	 	
              II-43-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-42-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-42-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              44

            	
              I-44-A
                through I-60-A

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

            
	 	
              II-44-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-43-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-43-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              45

            	
              I-45-A
                through I-60-A

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

            
	 	
              II-45-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-44-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-44-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              46

            	
              I-46-A
                through I-60-A

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

            
	 	
              II-46-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-45-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-45-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              47

            	
              I-47-A
                and I-60-A

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

            
	 	
              II-47-A
                and II-60-A

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

            
	 	
              I-1-A
                through I-46-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-46-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              48

            	
              I-48-A
                through I-60-A

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

            
	 	
              II-48-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-47-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-47-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              49

            	
              I-49-A
                and I-60-A

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

            
	 	
              II-49-A
                and II-60-A

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

            
	 	
              I-1-A
                through I-48-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-48-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              50

            	
              I-50-A
                and I-60-A

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

            
	 	
              II-50-A
                and II-60-A

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

            
	 	
              I-1-A
                through I-49-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-49-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              51

            	
              I-51-A
                through I-60-A

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

            
	 	
              II-15-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-50-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-50-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              52

            	
              I-52-A
                through I-60-A

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

            
	 	
              II-52-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-51-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-51-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              53

            	
              I-53-A
                through I-60-A

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

            
	 	
              II-53-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-52-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-52-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              54

            	
              I-54-A
                through I-60-A

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

            
	 	
              II-54-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-53-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-53-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              55

            	
              I-55-A
                through I-60-A

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

            
	 	
              II-55-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              56

            	
              I-56-A
                through I-60-A

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

            
	 	
              II-56-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-55-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-55-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              57

            	
              I-57-A
                through I-60-A

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

            
	 	
              II-57-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-56-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-56-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              58

            	
              I-58-A
                through I-60-A

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

            
	 	
              II-58-A
                through II-60-A

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

            
	 	
              I-1-A
                through I-57-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-57-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              59

            	
              I-59-A
                and I-60-A

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

            
	 	
              II-59-A
                and II-60-A

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

            
	 	
              I-1-A
                through I-58-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-58-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              60

            	
              I-60-A

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

            
	 	
              II-60-A

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

            
	 	
              I-1-A
                through I-60-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-60-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              thereafter

            	
              I-1-A
                through I-60-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-60-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            

    

    

    With
      respect to REMIC II Regular Interest LT-1GRP, 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
      Group I Regular Interests ending with the designation “B”, the weighted average
      of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular
      Interests, weighted on the basis of the Uncertificated Principal Balance of
      each
      such REMIC I Regular Interest for each such Distribution Date and (y) with
      respect to REMIC I Group I Regular Interests ending with the designation “A”,
      for each Distribution Date listed below, the weighted average of the rates
      listed below for such REMIC I Regular Interests 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
                1 Regular Interest

            	
              Rate

            
	
              1

            	
              I-1-A
                through I-60-A

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

            
	 	 	 
	
              2

            	
              I-2-A
                through I-60-A

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

            
	 	
              I-1-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              3

            	
              I-3-A
                through I-60-A

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

            
	 	
              I-1-A
                and I-2-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              4

            	
              I-4-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-3-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              5

            	
              I-5-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-4-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              6

            	
              I-6-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-5-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              7

            	
              I-7-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-6-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              8

            	
              I-8-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-7-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              9

            	
              I-9-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-8-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              10

            	
              I-10-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-9-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              11

            	
              I-11-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-10-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              12

            	
              I-12-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-11-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              13

            	
              I-13-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-12-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              14

            	
              I-14-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-13-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              15

            	
              I-15-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-14-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              16

            	
              I-16-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-15-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              17

            	
              I-17-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-16-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              18

            	
              I-18-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-17-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              19

            	
              I-19-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-18-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              20

            	
              I-20-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-19-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              21

            	
              I-21-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-20-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              22

            	
              I-22-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-21-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              23

            	
              I-23-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-22-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              24

            	
              I-24-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-23-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              25

            	
              I-25-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-24-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              26

            	
              I-26-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-25-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              27

            	
              I-27-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-26-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              28

            	
              I-28-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-27-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              29

            	
              I-29-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-28-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              30

            	
              I-30-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-29-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              31

            	
              I-31-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-30-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              32

            	
              I-32-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-31-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              33

            	
              I-33-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-32-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              34

            	
              I-34-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-33-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              35

            	
              I-35-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-34-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              36

            	
              I-36-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-35-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              37

            	
              I-37-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-36-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              38

            	
              I-38-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-37-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              39

            	
              I-39-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-38-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              40

            	
              I-40-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-39-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              41

            	
              I-41-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-40-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              42

            	
              I-42-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-41-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              43

            	
              I-43-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-42-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              44

            	
              I-44-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-43-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              45

            	
              I-45-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-44-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              46

            	
              I-46-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-45-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              47

            	
              I-47-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-46-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              48

            	
              I-48-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-47-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              49

            	
              I-49-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-48-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              50

            	
              I-50-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-49-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              51

            	
              I-51-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-50-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              52

            	
              I-52-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-51-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              53

            	
              I-53-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-52-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              54

            	
              I-54-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-53-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              55

            	
              I-55-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              56

            	
              I-56-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-55-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              57

            	
              I-57-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-56-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              58

            	
              I-58-A
                through I-60-A

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

            
	 	
              I-1-A
                through I-57-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              59

            	
              I-59-A
                and I-60-A

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

            
	 	
              I-1-A
                through I-58-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              60

            	
              I-60-A

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

            
	 	
              I-1-A
                through I-60-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              thereafter

            	
              I-1-A
                through I-60-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            

    

    

    With
      respect to REMIC II Regular Interest LT-2GRP, a per annum rate (but not less
      than zero) equal to the weighted average of (w) with respect to REMIC I Regular
      Interest II, the Uncertificated REMIC I Pass-Through Rate for such REMIC I
      Regular Interest for each such Distribution Date, (x) with respect to REMIC
      I
      Group II Regular Interests ending with the designation “B”, the weighted average
      of the Uncertificated REMIC I Pass-Through Rates for such REMIC I Regular
      Interests, weighted on the basis of the Uncertificated Principal Balance of
      each
      such REMIC I Regular Interest for each such Distribution Date and (y) with
      respect to REMIC I Group II Regular Interests ending with the designation “A”,
      for each Distribution Date listed below, the weighted average of the rates
      listed below for such REMIC I Regular Interests
      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
                1 Regular Interest

            	
              Rate

            
	
              1

            	
              II-1-A
                through II-60-A

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

            
	 	 	 
	
              2

            	
              II-2-A
                through II-60-A

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

            
	 	
              II-1-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              3

            	
              II-3-A
                through II-60-A

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

            
	 	
              II-1-A
                and II-2-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              4

            	
              II-4-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-3-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              5

            	
              II-5-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-4-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              6

            	
              II-6-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-5-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              7

            	
              II-7-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-6-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              8

            	
              II-8-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-7-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              9

            	
              II-9-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-8-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              10

            	
              II-10-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-9-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              11

            	
              II-11-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-10-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              12

            	
              II-12-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-11-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              13

            	
              II-13-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-12-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              14

            	
              II-14-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-13-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              15

            	
              II-15-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-14-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              16

            	
              II-16-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-15-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              17

            	
              II-17-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-16-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              18

            	
              II-18-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-17-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              19

            	
              II-19-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-18-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              20

            	
              II-20-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-19-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              21

            	
              II-21-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-20-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              22

            	
              II-22-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-21-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              23

            	
              II-23-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-22-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              24

            	
              II-24-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-23-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              25

            	
              II-25-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-24-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              26

            	
              II-26-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-25-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              27

            	
              II-27-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-26-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              28

            	
              II-28-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-27-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              29

            	
              II-29-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-28-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              30

            	
              II-30-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-29-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              31

            	
              II-31-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-30-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              32

            	
              II-32-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-31-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              33

            	
              II-33-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-32-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              34

            	
              II-34-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-33-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              35

            	
              II-35-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-34-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              36

            	
              II-36-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-35-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              37

            	
              II-37-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-36-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              38

            	
              II-38-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-37-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              39

            	
              II-39-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-38-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              40

            	
              II-40-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-39-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              41

            	
              II-41-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-40-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              42

            	
              II-42-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-41-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              43

            	
              II-43-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-42-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              44

            	
              II-44-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-43-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              45

            	
              II-45-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-44-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              46

            	
              II-46-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-45-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              47

            	
              II-47-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-44-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              48

            	
              II-48-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-47-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              49

            	
              II-49-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-48-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              50

            	
              II-50-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-49-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              51

            	
              II-51-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-50-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              52

            	
              II-52-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-51A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              53

            	
              II-53-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-52-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              54

            	
              II-54-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-53-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              55

            	
              II-55-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              56

            	
              II-56-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-55-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              57

            	
              II-57-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-56-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              58

            	
              II-58-A
                through II-60-A

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

            
	 	
              II-1-A
                through II-57-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              59

            	
              II-59-A
                and II-60-A

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

            
	 	
              II-1-A
                through II-58-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              60

            	
              II-60-A

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

            
	 	
              II-1-A
                through II-58-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              thereafter

            	
              II-1-A
                through II-60-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            

    

    

     

    With
      respect to REMIC II 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, the REMIC II Regular Interests and the Class IO
      Interest.

     

    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) 95% to the Certificates (other than the Class X, Class P
      and the Residual Certificates) and (ii) 3% to the Class X Certificates and
      1% to each of the Class P Certificates and the Class R 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.

     

    Wells
      Fargo:
      Wells
      Fargo Bank, National Association, and any successor thereto appointed under
      the
      Servicing Agreement in connection with the servicing and administration of
      the
      Wells Fargo Mortgage Loans. 

     

    Wells
      Fargo Mortgage Loans:
      Those
      Mortgage Loans serviced by Wells Fargo 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 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 Subordinate Certificates and (2) the aggregate amount of any Realized Losses
      allocated to the Subordinate Certificates and Basis Risk Shortfalls allocated
      to
      the Senior Certificates and the Subordinate 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 Group I Regular Interests for any Distribution Date the aggregate amount
      of any Net Interest Shortfalls incurred in respect of Loan Group I for any
      Distribution Date shall be allocated first,
      to
      REMIC I Regular Interest I and to the REMIC I Group 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
      Group 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 Rates 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 I Group
      II Regular Interests for any Distribution the aggregate amount of any Net
      Interest Shortfalls incurred in respect of Loan Group II for any Distribution
      Date shall be allocated first,
      REMIC I Regular Interest II and to the REMIC I Group II 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
      Group II 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 Rates 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
      REMIC
      II Marker Allocation Percentage of 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 LT-AA, REMIC II Regular Interest LT-IA1, REMIC II
      Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular
      Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, 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-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2 and REMIC I Regular Interest LT-ZZ, 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 Balance of each such REMIC I Regular Interest.

     

    The
      REMIC
      II Sub WAC Allocation Percentage of the aggregate amount of any Net Interest
      Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
      shall be allocated to the Uncertificated Accrued Interest payable to REMIC
      II
      Regular Interest LT-1SUB, REMIC II Regular Interest LT-1GRP, REMIC II Regular
      Interest LT-2SUB, REMIC II Regular Interest LT-2GRP and REMIC II Regular
      Interest LT-XX, 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.

     

    

     

    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 and
      the
      Supplemental Interest Trust.

     

    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 and the Supplemental
      Interest Trust.

     

    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 related 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, including but not limited to certain
      insurance policies and documents contemplated by this Agreement, 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. The Servicers
      shall not be responsible for any custodial fees or other costs incurred in
      obtaining such documents and the Depositor shall cause the Servicers to be
      reimbursed for any such costs the Servicers 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 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 understand and agree that it is not intended that any
      mortgage loan be included in the Trust 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, the
      Servicers 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 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 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 related 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 receipt of notice of the 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 Securities Administrator 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 Securities Administrator on their
      behalf. The Sponsor shall promptly reimburse the Securities Administrator for
      any fees, costs and expenses (including all reasonable and documented attorneys
      fees and expenses) incurred by the Securities Administrator 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 Ocwen, the Sponsor and the Master
      Servicer.

     

    (a)  Ocwen
      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 state of its formation 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 an Ocwen 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 Ocwen
      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 power and authority to service each Ocwen 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 Ocwen
      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 Ocwen 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)  Ocwen
      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)  Ocwen
      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 Ocwen
      Mortgage Loans that are registered with MERS.

     

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

     

    If
      the
      covenant of Ocwen set forth in Section 2.03(a)(ix) above is breached, Ocwen
      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 related
      Custodial Account within ninety (90) days of the earlier of discovery by the
      Servicer or receipt of notice by the Servicer of such breach. Notwithstanding
      the foregoing, or anything to the contrary contained in this Agreement, Ocwen
      shall have no liability for a waiver of any Prepayment Charge in the event
      that
      Ocwen’s determination to make such a waiver was made by Ocwen in reliance on
      information properly received by Ocwen from any Person in accordance with the
      terms of this Agreement.

     

    (b)  The
      Sponsor hereby represents and warrants to and covenants with, the Depositor,
      Ocwen, 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 5.7 Revised (attached hereto as Exhibit O) 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 (xxxiii), (xxxvii), (xxxviii), (xl), (xlv) and/or
      (lii) 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 and, with respect to the Wells Fargo Mortgage
      Loans, the Servicing 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 receipt of notice of 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 related Servicer 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 Certificateholder,
      the
      Depositor or the Trustee.

     

    (d)  The
      Master Servicer hereby represents, warrants and covenants with Ocwen, 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 Ocwen, 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, Ocwen, 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 REMIC I, REMIC II or REMIC
      III or contributions after the Closing Date, as defined in sections 860F(a)(2)
      and 860G(d) of the Code, respectively or (ii) cause any of REMIC I, REMIC II
      or
      REMIC III 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 and the Class R Certificates.

     

    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-I 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-I
      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-I Interest
      and the REMIC I Regular Interests, respectively, and all ownership interests
      evidenced or constituted by the Class R-I 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; Issuance and Conveyance of the REMIC II
      Regular Interests.

     

    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-II 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-II Interest and REMIC II (as holder of the REMIC I Regular Interests). The
      rights of the Holder of the Class R-II 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-II Interest and the REMIC II Regular Interests,
      respectively, and all ownership interests evidenced or constituted by the Class
      R-II Interest and the REMIC II Regular Interests, shall be as set forth in
      this
      Agreement. The Class R-II Interest and the REMIC II Regular Interests shall
      constitute the entire beneficial ownership interest in REMIC II.

     

    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-III 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-III Interest and REMIC III (as holder of the REMIC II Regular
      Interests). The rights of the Holder of the Class R-III 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-III Interest and the Regular
      Certificates and the Class IO Interest, respectively, and all ownership
      interests evidenced or constituted by the Class R-III Interest and the Regular
      Certificates and the Class IO Interest, shall be as set forth in this Agreement.
      The Class R-III Interest, the Regular Certificates and the Class IO Interest
      shall constitute the entire beneficial ownership interest in REMIC
      III.

     

    Section
      2.08  Issuance
      of Class R Certificates.

     

    The
      Trustee acknowledges the assignment to it of the REMIC I Regular Interests
      and
      the 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. 

     

    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 Home Equity Loan, Inc., Home Equity Loan Trust,
      Series 2006-HE3” 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  Ocwen
      to act as a Servicer.

     

    The
      obligations of Ocwen hereunder to service and administer the Mortgage Loans
      shall be limited to the Ocwen Mortgage Loans, and with respect to the duties
      and
      obligations of Ocwen, references herein to the related Mortgage Loans shall
      be
      limited to the Ocwen Mortgage Loans. The Wells Fargo Mortgage Loans will be
      serviced and administered by Wells Fargo pursuant to the terms and provisions
      of
      the Servicing Agreement, and Ocwen will not have any responsibility to service
      or administer the Wells Fargo Mortgage Loans or have any other obligation or
      liability with respect to the Wells Fargo Mortgage Loans.

     

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

     

    To
      the
      extent consistent with the foregoing, Ocwen shall seek the timely and complete
      recovery of principal and interest on the Mortgage Notes related to the Ocwen
      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 Ocwen,
      maximize recovery of total proceeds taking into account the value of such
      Prepayment Charge and the related Ocwen Mortgage Loan and, if such waiver is
      made in connection with a refinancing of the Ocwen 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 Ocwen
      Mortgage Loan unrelated to a default or a reasonably foreseeable default where
      (x) the related Mortgagor has stated to Ocwen an intention to refinance the
      related Ocwen Mortgage Loan and (y) Ocwen has concluded in its reasonable
      judgment that the waiver of such Prepayment Charge would induce such Mortgagor
      to refinance with Ocwen, (iii) Ocwen 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 or (iv) Ocwen
      has not been provided with information sufficient to enable it to collect the
      Prepayment Charge. If a Prepayment Charge is waived as permitted by meeting
      both
      of the standards described in clauses (i) and (ii)(B) above, then Ocwen 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 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 Ocwen
      shall
      not waive more than five-percent (5%) of the Prepayment Charges (by number
      of
      Prepayment Charges) set forth on the Prepayment Charge Schedule in accordance
      with clauses (i) and (ii)(B) above. Notwithstanding any other provisions of
      this
      Agreement, any payments made by Ocwen 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.

     

    Subject
      only to the above-described applicable servicing standards (the “Accepted
      Servicing Practices”) and the terms of this Agreement and of the Ocwen Mortgage
      Loans, Ocwen 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 Ocwen Mortgage Loan.

     

    Without
      limiting the generality of the foregoing, Ocwen, 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 Ocwen 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 Ocwen Mortgage Loans, and
      with
      respect to the related Mortgaged Properties held for the benefit of the
      Certificateholders. Ocwen 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 Ocwen to service and administer the
      Ocwen
      Mortgage Loans. Upon receipt of such documents, the Depositor and/or the Trustee
      shall execute such documents and deliver them to Ocwen. In addition, the Trustee
      shall execute, at the written request of a Servicer, and furnish to it any
      special or limited powers of attorney in the form of Exhibit
      Q
      hereto
      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, 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,
      Ocwen 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 Ocwen Mortgage Loans in order to preserve the lien on the
      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 Ocwen, 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 Ocwen Mortgage Loans, notwithstanding
      that the terms of such Ocwen 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, Ocwen 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, Ocwen shall not be required to exercise such
      rights with respect to an Ocwen Mortgage Loan if the Person to whom the related
      Mortgaged Property has been conveyed or is proposed to be conveyed satisfies
      the
      terms and conditions contained in the Mortgage Note and Mortgage related thereto
      and the consent of the mortgagee under such Mortgage Note or Mortgage is not
      otherwise so required under such Mortgage Note or Mortgage as a condition to
      such transfer. In the event that Ocwen 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, Ocwen 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 Ocwen Mortgage Loan shall continue to be covered (if so covered before
      Ocwen enters into such an agreement) by the applicable Required Insurance
      Policies. Ocwen, 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, Ocwen shall not be deemed to be in default under this
      Section 3.02(a) by reason of any transfer or assumption that it reasonably
      believes it is restricted by law from preventing.

     

    (b)  Subject
      to Ocwen’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 Ocwen Mortgage Loan, Ocwen 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, the Mortgage Rate, the amount of the Scheduled Payment, the Index,
      Gross Margin, Periodic Rate Cap, Adjustment Date, Maximum Interest Rate or
      Minimum Mortgage Interest Rate, and any other term affecting the amount or
      timing of payment on the related Ocwen Mortgage Loan) may be changed. In
      addition, the substitute Mortgagor and the Mortgaged Property must be acceptable
      to Ocwen in accordance with the servicing standard set forth in
      Section 3.01. Ocwen 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 Ocwen for entering into an assumption or substitution of liability agreement
      will be retained by Ocwen as additional servicing compensation.

     

    Section
      3.03  Subservicers.

     

    Ocwen
      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 Ocwen of a Subservicer shall not release Ocwen 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 Ocwen Mortgage Loans in a manner
      consistent with the servicing arrangements contemplated hereunder and Ocwen
      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 Ocwen. 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. Ocwen 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 Ocwen, specifying (i) the identity
      of each such Subservicer, (ii) which (if any) of such Subservicer 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 Subservicer identified
      pursuant to clause (ii) of this subsection. Ocwen shall be responsible for
      obtaining from each Subservicer 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.
      Ocwen
      shall pay all fees of each of its Subservicers from its own funds.

     

    Notwithstanding
      the foregoing, with respect to the Ocwen Mortgage Loans, Ocwen 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 Ocwen’s obligation to perform all or substantially all of the servicing of
      the related Ocwen Mortgage Loans to such Subcontractor. Ocwen 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 Ocwen, specifying (i) the identity of each such Subcontractor
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB and (ii) which elements of the Servicing Criteria will be
      addressed in assessments of compliance provided by each such Subcontractor
      identified pursuant to clause (i) of this subsection; provided, however, that
      Ocwen shall not 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. In such event, the use
      by
      Ocwen of any such Subcontractor shall not release Ocwen from any of its
      obligations hereunder and Ocwen shall remain responsible hereunder for all
      acts
      and omissions of such Subcontractor as fully as if such acts and omissions
      were
      those of Ocwen, and Ocwen shall pay all fees and expenses of the Subcontractor
      from Ocwen’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, Ocwen 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 Ocwen. Ocwen 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 Ocwen, without any right of reimbursement from its Custodial
      Account, Ocwen 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 Ocwen,
      at
      its option, from electing to service the Ocwen Mortgage Loans itself. In the
      event that Ocwen’s responsibilities and duties under this Agreement are
      terminated pursuant to Section 8.01, Ocwen shall at its own cost and
      expense terminate the rights and responsibilities of each Subservicer and
      Subcontractor with respect to the Ocwen Mortgage Loans effective as of the
      date
      of Ocwen’s termination. Ocwen shall pay all fees, expenses or penalties
      necessary in order to terminate the rights and responsibilities of each
      Subservicer and Subcontractor from Ocwen’s own funds without reimbursement from
      the Trust Fund.

     

    Notwithstanding
      the foregoing, Ocwen shall not be relieved of its obligations hereunder with
      respect to the Ocwen 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 Ocwen Mortgage Loans. Ocwen shall be entitled to enter into
      an
      agreement with a Subservicer or Subcontractor, as applicable, for
      indemnification of Ocwen 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
      Ocwen Mortgage Loans involving a Subservicer or Subcontractor shall be deemed
      to
      be between such Subservicer or Subcontractor and Ocwen 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, Ocwen shall be deemed
      to
      have received a payment on a Mortgage Loan when a Subservicer or Subcontractor
      has received such payment.

     

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

     

    Notwithstanding
      any other provisions of this Agreement, Ocwen shall transmit to the Trustee
      as
      required by this Agreement all documents and instruments in respect of an Ocwen
      Mortgage Loan coming into the possession of Ocwen from time to time and shall
      account fully to the Securities Administrator for any funds received by Ocwen
      or
      that otherwise are collected by Ocwen as Liquidation Proceeds or Insurance
      Proceeds in respect of any such Ocwen Mortgage Loan. All Mortgage Files and
      funds collected or held by, or under the control of, Ocwen in respect of any
      Ocwen Mortgage Loans, whether from the collection of principal and interest
      payments or from Liquidation Proceeds, including but not limited to, any funds
      on deposit in the related Custodial Account, shall be held by Ocwen 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. Ocwen
      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 maintained by Ocwen, 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, an Ocwen Mortgage Loan, except, however, that Ocwen
      shall
      be entitled to set off against and deduct from any such funds any amounts that
      are properly due and payable to it under this Agreement.

     

    Section
      3.05  Maintenance
      of Hazard Insurance.

     

    (a)  Ocwen
      shall cause to be maintained for each Ocwen Mortgage Loan 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. Ocwen 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 Ocwen Mortgage
      Loan at the time it became an REO Property. Ocwen 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 Ocwen 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 Ocwen 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 Ocwen in maintaining any such insurance shall not, for the purpose of
      calculating distributions to Certificateholders, be added to the Stated
      Principal Balance of the related Ocwen Mortgage Loan, notwithstanding that
      the
      terms of such Ocwen 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, Ocwen 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 Ocwen 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 Ocwen 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 Ocwen
      Mortgage Loans, 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 Ocwen 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 Ocwen 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
      Ocwen Mortgage Loans, Ocwen 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)  Ocwen
      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 its
      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 Ocwen Mortgage Loans, unless Ocwen has obtained a
      waiver of such requirements from Fannie Mae or Freddie Mac. Ocwen shall provide
      the Master Servicer, upon request, with copies of such insurance policies and
      fidelity bond (or waiver thereof). Ocwen shall also maintain a fidelity bond
      in
      the form and amount that would meet the requirements of Fannie Mae or Freddie
      Mac, unless Ocwen has obtained a waiver of such requirements from Fannie Mae
      or
      Freddie Mac. Ocwen 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 Ocwen. 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. Ocwen 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.

     

    Ocwen
      shall prepare and present on behalf of the Trustee and the Certificateholders
      all claims under the applicable Insurance Policies and take such reasonable
      actions (including the negotiation, settlement, compromise or enforcement of
      the
      insured’s claim) as shall be necessary to permit recovery under such Insurance
      Policies. Any proceeds disbursed to Ocwen 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 Ocwen Mortgage Loan
      to
      the insurer under any applicable Insurance Policy need not be so deposited
      (or
      remitted). Notwithstanding any provision to the contrary, Ocwen shall have
      no
      responsibility to a primary mortgage insurance policy unless it has been made
      aware of such policy, as reflected on the Mortgage Loan Schedule or otherwise
      and has been provided with adequate information to administer such
      policy.

     

    Section
      3.07  Maintenance
      of Insurance Policies.

     

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

     

    Section
      3.08  Reserved.

     

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

     

    (a)  Ocwen
      shall use reasonable efforts to foreclose upon or otherwise comparably convert
      the ownership of properties securing such of the Ocwen Mortgage Loans as come
      into and continue in default and as to which no satisfactory arrangements can
      be
      made for collection of delinquent payments. In connection with such foreclosure
      or other conversion, Ocwen 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 Ocwen 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
      Ocwen 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 Ocwen reasonably believes that Liquidation Proceeds
      with
      respect to any such Ocwen Mortgage Loan would not be increased as a result
      of
      such foreclosure or other action, such Ocwen Mortgage Loan will be charged-off
      and will become a Liquidated Loan. Ocwen will give notice of any such charge-off
      to the Securities Administrator. Ocwen 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 Ocwen has knowledge that a
      Mortgaged Property that it 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 it, Ocwen 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 Certificateholders (or the
      Trustee’s nominee on behalf of the 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. Ocwen 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, Ocwen shall either itself,
      or
      through an agent selected by it, 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 Certificateholders, rent the same, or any part thereof, as
      Ocwen deems to be in the best interest of Ocwen and the Certificateholders
      for
      the period prior to the sale of such REO Property. Ocwen 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. Ocwen 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 an Ocwen Mortgage
      Loan, Ocwen 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, REMIC II or REMIC III as defined in section 860F of the Code or
      cause either REMIC I, REMIC II or REMIC III 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 either
      REMIC I, REMIC II or REMIC III 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 Ocwen has agreed to indemnify and
      hold
      harmless the Trust Fund with respect to the imposition of any such
      taxes.

     

    The
      decision of Ocwen to foreclose on a defaulted Ocwen Mortgage Loan shall be
      subject to a determination by Ocwen 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 Ocwen for expenses incurred
      (including any property or other taxes) in connection with such management
      and
      net of unreimbursed Servicing Fees, unreimbursed Master 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 Ocwen Mortgage Loans
      (with interest accruing as though such Ocwen 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
      related Ocwen Mortgage Loan, such excess shall be considered to be a partial
      Principal Prepayment for all purposes hereof.

     

    The
      Liquidation Proceeds from any liquidation of an Ocwen Mortgage Loan, net of
      any
      payment to Ocwen 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 Ocwen 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 Ocwen
      for any related unreimbursed Servicing Advances and Servicing Fees, pursuant
      to
      Section 3.27 or this Section 3.09; second, to reimburse Ocwen 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, Ocwen shall determine the respective aggregate amounts
      of
      Excess Liquidation Proceeds and Realized Losses, if any, with respect to any
      Ocwen Mortgage Loan for the related Prepayment Period and report the same to
      the
      Securities Administrator pursuant to Section 3.28.

     

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

     

    Section
      3.10  Servicing
      Compensation.

     

    As
      compensation for its activities hereunder, Ocwen shall be entitled to retain
      or
      withdraw from the related Custodial Account out of each payment of interest
      on
      each Ocwen Mortgage Loan included in the Trust Fund an amount equal to the
      Servicing Fee. In addition, Ocwen 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 Ocwen Mortgage Loans in the form of
      any
      Excess Liquidation Proceeds, Prepayment Interest Excess, if applicable,
      assumption fees, late payment charges, insufficient funds charges and ancillary
      income to the extent such fees or charges are received by Ocwen, 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 Ocwen
      to
      the extent not required to be deposited in the related Custodial Account
      pursuant to Section 3.27. Ocwen 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 Ocwen Mortgage Loan, the deed or certificate of sale shall be issued
      to
      the Trustee, or to its nominee, on behalf of the related Certificateholders.
      Ocwen 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, Ocwen shall protect and conserve such REO Property in the manner
      and
      to the extent required herein, in accordance with the REMIC
      Provisions.

     

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

     

    (c)  Ocwen,
      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, Ocwen shall submit a liquidation
      report to the Trustee containing such information as shall be mutually
      acceptable to it and the Trustee with respect to such Mortgaged
      Property.

     

    Section
      3.13  Annual
      Statement as to Compliance.

     

    (a)  Ocwen,
      the Master Servicer and the Securities Administrator shall deliver or otherwise
      make available 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 party’s performance under this
      Agreement 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 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 Ocwen to comply timely with this Section 3.13 shall be deemed a
      Servicer Default as to Ocwen, without any cure period, and the Master Servicer
      may, in addition to whatever rights the Master Servicer 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 Ocwen under
      this Agreement and in and to the Ocwen Mortgage Loans and the proceeds thereof
      without compensating Ocwen for the same. The Master Servicer shall so terminate
      Ocwen 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 Ocwen to duly perform its obligations under this Section 3.13 on or before
      March 31 of each such year shall be deemed a Servicer Default as provided for
      in
      Section 8.01(a)(x). The Master Servicer may terminate Ocwen 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 Servicers 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 Ocwen, the Master Servicer or the Securities Administrator is terminated
      or resigns pursuant to the terms of this Agreement, such party shall provide
      an
      Officer’s Certificate pursuant to this Section 3.13 with respect to the period
      of time it was subject to this Agreement notwithstanding any such termination,
      assignment or resignation.

     

    Section
      3.14  Assessments
      of Compliance and Attestation Reports.

     

    (a)  By
      March
      15 of
      each
      year, commencing in March 2007,
      Ocwen,
      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, however,
      notwithstanding anything herein to the contrary, no Subcontractor will be
      required to deliver any assessment of compliance in any such given year in
      which
      a Form 10-K is not required to be filed.

     

    (b)  No
      later
      than February 1 of each year, commencing in February 2007, Ocwen 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 Ocwen 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 Ocwen, 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 each Servicing Agreement in respect of Wells Fargo
      as a Servicer 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, notwithstanding any such termination, assignment
      or resignation.

     

    The
      Master Servicer shall include all annual reports on assessment of compliance
      received by it from each Servicer 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, Ocwen, 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 an attestation report to the Master Servicer, the Securities
      Administrator and the Depositor 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; however, notwithstanding
      anything herein to the contrary, no Subcontractor will be required to deliver
      any assessment of compliance in any such given year in which a Form 10-K is
      not
      required to be filed.

     

    (d)  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 each such report on assessment of compliance and attestation
      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 report furnished to it
      by
      each Servicer 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
      obligations 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 or such other agreement with respect to the period of time it
      was
      subject to this Agreement or such other agreement, as the case may be,
      notwithstanding any such termination, assignment or resignation.

     

    (e)  (i)For
      so
      long as the Trust Fund is subject to Exchange Act reporting requirements,
      failure of Ocwen to comply timely with this Section 3.14 shall be deemed a
      Servicer Default as to Ocwen, automatically, without notice and without any
      cure
      period, and the Master Servicer may, in addition to whatever rights the Master
      Servicer 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 Ocwen under this Agreement and in and to the Ocwen Mortgage
      Loans and the proceeds thereof without compensating Ocwen for the same. The
      Master Servicer shall so terminate Ocwen 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 Servicer to perform its obligations under this Section 3.14 on or before
      March 31 of each such year shall be deemed a Servicer Default as provided for
      in
      Section 8.01(a)(ix). The Master Servicer may terminate Ocwen by delivery of
      notice thereof via first class mail, facsimile or electronic mail.

     

    Section
      3.15  Books
      and Records.

     

    Ocwen
      shall be responsible for maintaining, and shall maintain, a complete set of
      books and records for the Ocwen Mortgage Loans which shall be appropriately
      identified in the Servicer’s computer system to clearly reflect the ownership of
      the Ocwen Mortgage Loans by the Trust. In particular, Ocwen 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 Ocwen 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 Servicer complies with the requirements of Accepted Servicing
      Practices.

     

    Ocwen
      shall maintain with respect to each Ocwen Mortgage Loan 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 Ocwen 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
      agreeable to the Trustee and necessary or appropriate to enable the Servicers
      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 Servicers 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)  Ocwen,
      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 Ocwen, 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, the
      Servicing Agreement 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)  Ocwen
      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 under the terms of this Agreement, any merger, consolidation
      or
      sale of substantially all of the assets of Ocwen, Ocwen’s engagement of any
      Subservicer to perform or assist in the performance of any of the Servicer’s
      obligations under this Agreement, any material litigation or governmental
      proceedings involving Ocwen (or its Subservicer or Subcontractor, as applicable)
      that is material to any REMIC III Certificateholder, and any affiliation or
      other significant relationship between Ocwen (or its Subservicer or
      Subcontractor, as applicable) and any other Transaction Parties, First NLC
      Financial, Inc., Equifirst Corporation and People’s Choice Home Loan, Inc. that
      would be required to be reported under Item 1119 of Regulation AB

     

    (ii)  any
      merger, consolidation or sale of substantially all of the assets of Ocwen,
      the
      appointment of a Subservicer or a Successor Servicer by Ocwen or its designee;
      provided, such notice and description required under this clause (ii) shall
      be
      delivered at least fifteen (15) calendar days prior to the effective date of
      such event and shall be 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
      Ocwen
      or any Servicing Function Participant engaged by Ocwen 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 Ocwen or any Subservicer, Ocwen 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
      Ocwen (Item 1121(a)(12) of Regulation AB); and

     

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

     

    (c)  Ocwen
      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 Ocwen pursuant
      to
      this Agreement, and such other information related to Ocwen or any Servicing
      Function Participant engaged by Ocwen 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 Ocwen Mortgage Loan, or the receipt
      by Ocwen 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, Ocwen will (or if Ocwen 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 Ocwen the
      related Mortgage File. Within three (3) Business Days of receipt of such
      certification and request, the Custodian, on behalf of the Trustee, shall
      release the related Mortgage File to Ocwen and the Trustee and the Custodian
      shall have no further responsibility with regard to such Mortgage File. Upon
      any
      such payment in full, Ocwen 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 unless determined to be a Servicing
      Advance.

     

    (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, within three (3) Business Days following 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 such 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 related 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 such Servicer.

     

    Section
      3.20  Documents,
      Records and Funds in Possession of Ocwen to be held for Trustee.

     

    (a)
       Ocwen
      (to
      the extent required by this Agreement) shall transmit to the Trustee or the
      Custodian such documents and instruments coming into the possession of the
      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 Ocwen in respect of
      any
      Ocwen Mortgage Loan or which otherwise are collected by the Servicer as
      Liquidation Proceeds or Insurance Proceeds in respect of any Ocwen Mortgage
      Loan
      shall be held for the benefit of the Trustee and the Certificateholders subject
      to the right of Ocwen to retain its Servicing Fee and other amounts as provided
      in this Agreement.

     

    Section
      3.21  Possession
      of Certain Insurance Policies and Documents.

     

    Ocwen
      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 Ocwen, 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  UCC.

     

    The
      Sponsor agrees to execute and file continuation statements for any Uniform
      Commercial Code financing statements which the Sponsor has informed the Trustee
      were filed on the Closing Date in connection with the Trust. The Sponsor shall
      file any financing statements or amendments and continuation statements thereto
      required by any change in the Uniform Commercial Code.

     

    Section
      3.24  Optional
      Purchase of Defaulted 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 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 such Servicer to the
      Securities Administrator on the Remittance Date in the month immediately
      following the month in which the Purchase Price was deposited in the related
      Custodial Account.

     

    If
      at any
      time the Sponsor remits to a 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
      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 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 repurchases 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 such 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 Servicer Under Credit Risk Management Agreement.

     

    Notwithstanding
      anything in this Agreement or the Credit Risk Management Agreement 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 Agreement or this Agreement, as applicable, with respect to any
      action taken or not taken by the Servicers pursuant to a recommendation of
      the
      Credit Risk Manager or otherwise in connection with obligations of the Servicers
      under this Agreement or the Credit Risk Management Agreement, as
      applicable.

     

    Section
      3.26  Collection
      of Mortgage Loan Payments; Custodial Account.

     

    (a)  Ocwen
      shall make reasonable efforts in accordance with Accepted Servicing Practices
      to
      collect all payments called for under the terms and provisions of the Ocwen
      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, Ocwen may in its discretion (i) waive any late
      payment charge and (ii) extend the due dates for payments due on a Mortgage
      Note
      for an Ocwen Mortgage Loan 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, Ocwen shall make Advances on the related
      Ocwen Mortgage Loan during the scheduled period in accordance with the
      amortization schedule of such Ocwen Mortgage Loan without modification thereof
      by reason of such arrangements, and shall be entitled to reimbursement therefor
      in accordance with Section 5.01. Ocwen 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) an Ocwen Mortgage Loan is in default or default is imminent or (y) Ocwen
      delivers to the Trustee and the Securities Administrator a REMIC Opinion, Ocwen
      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)  Ocwen
      shall establish and maintain a segregated Custodial Account (which shall at
      all
      times be an Eligible Account) with a depository institution in the name of
      Ocwen
      for the benefit of the Trustee on behalf of the Certificateholders and
      designated “HSBC Bank USA, National Association, as trustee for registered
      holders of Nomura Home Equity Loan, Inc., Asset-Backed Certificates, Series
      2006-HE3.” On behalf of the Trust Fund, Ocwen 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
      Ocwen’s receipt thereof, and shall thereafter deposit in the Custodial Account,
      in no event more than two Business Days after Ocwen’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 Ocwen Mortgage
      Loans subsequent to the Cut-off Date (other than in respect of principal and
      interest due on the Mortgage Loans on or before the Cut-off Date) and the
      following amounts required to be deposited hereunder:

     

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

     

    (ii)  all
      payments on account of interest on the Ocwen Mortgage Loans net of the Servicing
      Fee permitted under Section 3.10 and any Prepayment Interest
      Excess;

     

    (iii)  all
      Liquidation Proceeds, Insurance Proceeds and condemnation proceeds with respect
      to the 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 Servicer’s normal servicing procedures;

     

    (iv)  any
      amount required to be deposited by Ocwen pursuant to Section 3.26(c) in
      connection with any losses on Permitted Investments;

     

    (v)  any
      amounts required to be deposited by Ocwen pursuant to
      Section 3.05;

     

    (vi)  any
      amounts required to be deposited by Ocwen pursuant to
      Section 5.02;

     

    (vii)  any
      amounts paid by an Advance Financing Person in respect of Advances or Servicing
      Advances;

     

    (viii)  any
      Prepayment Charges collected by the Servicer in connection with the Principal
      Prepayment of any of the Ocwen Mortgage Loans and any Servicer Prepayment Charge
      Payment Amounts;

     

    (ix)  the
      Purchase Price with respect to any Ocwen 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 Mortgage Loans
      purchased by the Sponsor pursuant to Section 3.24; and

     

    (x)  any
      other
      amounts required to be deposited hereunder.

     

    The
      foregoing requirements for deposit by Ocwen 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, and any Prepayment Interest Excess need not
      be
      deposited by Ocwen. In the event that Ocwen 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
      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. Ocwen shall maintain
      adequate records with respect to all withdrawals made pursuant to this Section.
      All funds deposited in the Custodial Account shall be held in trust for the
      Certificateholders until withdrawn in accordance with
      Section 3.27.

     

    (c)  The
      institution that maintains the Custodial Account, or other authorized entity
      shall invest the funds in the Custodial Account, in the manner directed by
      Ocwen, 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 Ocwen
      as servicing compensation and shall be remitted to it monthly as provided
      herein. The amount of any losses incurred in Ocwen’s Custodial Account in
      respect of any such investments shall be deposited by Ocwen into the Custodial
      Account immediately as realized, out of its own funds.

     

    (d)  Ocwen
      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 Custodial Account
      prior to any change thereof.

     

    Section
      3.27  Permitted
      Withdrawals From the Custodial Account.

     

    (a)  Ocwen
      may
      from time to time make withdrawals from its Custodial Account for the following
      purposes:

     

    (i)  to
      pay
      itself (to the extent not previously paid to or withheld by it), 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 itself 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 Ocwen 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 an Ocwen 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 Ocwen
      Mortgage Loan are insufficient to reimburse Ocwen 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 Custodial Account relating to the Ocwen 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, including any unpaid Servicing Fees to the
      extent not recoverable from Liquidation Proceeds, Insurance Proceeds or other
      amounts received with respect to any Liquidated Loan, and to reimburse itself
      or
      any Advance Financing Person for any unreimbursed Servicing Advances, provided,
      however, that Ocwen’s or such Advance Financing Person’s right to reimbursement
      for Servicing Advances pursuant to this subclause (v) with respect to any Ocwen
      Mortgage Loan shall be limited to amounts received on particular Ocwen 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 Ocwen 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; and

     

    (ix)  to
      clear
      and terminate the related Custodial Account upon termination of this Agreement
      pursuant to Section 10.01 hereof.

     

    In
      addition, no later than 3:00 p.m. Eastern time on the Remittance Date, Ocwen
      shall withdraw from the related Custodial Account and remit to the Securities
      Administrator (a) all amounts deposited in the Custodial Account as of the
      close
      of business on the last day of the related Due Period (net of charges against
      or
      withdrawals from the Custodial Account pursuant to this Section 3.27(a)),
      plus (b) all Advances, if any, which Ocwen 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 the related 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 Ocwen. Ocwen shall pay to the Securities
      Administrator interest on any such late payment by Ocwen 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 Ocwen 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
      Ocwen
      of any such interest, or the failure of the Securities Administrator to notify
      Ocwen of such interest, shall not be deemed an extension of time for payment
      or
      a waiver of any Servicer Default by Ocwen.

     

    Ocwen
      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 Custodial Account pursuant to subclause (iii),
      Ocwen 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 the Servicer to be a Nonrecoverable Advance
      and identifying the related Ocwen Mortgage Loan(s), and their respective
      portions of such Nonrecoverable Advance.

     

    (b)  Notwithstanding
      the foregoing, any Amounts Held For Future Distribution withdrawn by Ocwen
      as
      permitted in Section 3.27(a)(ii) in reimbursement of Advances previously
      made by Ocwen shall be appropriately reflected in Ocwen’s records and replaced
      by Ocwen by deposit in the related Custodial 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 Securities Administrator
      will notify Ocwen and the Master Servicer by the close of business on the
      Business Day prior to the Distribution Date in the event that the amount
      remitted by Ocwen to the Securities Administrator on such date is less than
      the
      Advances required to be made by Ocwen for the related Distribution
      Date.

     

    Section
      3.28  Reports
      to Master Servicer.

     

    (a)  Not
      later
      than 3:00 p.m. Eastern time on the eighteenth (18th) calendar day of each month
      (or if such eighteenth calendar day is not a Business Day, the immediately
      following Business Day), Ocwen shall furnish to the Master Servicer (i) (a)
      monthly loan data in a mutually agreed-upon format, (b) default loan data in
      the
      format set forth in Exhibit X-1 hereto (or in such other format mutually
      agreed-upon between Ocwen and the Master Servicer) and (c) information regarding
      realized losses and gains in the format set forth in Exhibit X-2 hereto (or
      in
      such other format mutually agreed between Ocwen 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 reasonably 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.

     

    (b)  In
      addition, each month Ocwen shall provide to the Depositor, or the Depositor’s
      designee (which may include NovaStar Mortgage, Inc. (“NovaStar”)), loan-level
      performance data of each Ocwen Mortgage Loan listed on the Mortgage Loan
      Schedule; provided that the information provided to NovaStar shall only be
      with
      respect to those Ocwen Mortgage Loans listed on the Mortgage Loan Schedule
      as
      having been originated by NovaStar, if any. For purposes of this subsection,
      loan level performance data shall be limited to the following: (i) date (as
      of
      end of the month); (ii) loan identification number; (iii) current interest
      rate;
      (iv) actual beginning principal balance; (v) actual ending principal balance;
      (vi) scheduled principal and interest; (vii) scheduled principal; (viii) actual
      principal collected account; (ix) actual gross interest collected amount; (x)
      next payment due date; (xi) loan modification flag (Y/N); (xii) in foreclosure
      (Y/N); (xiii) in REO (Y/N); (xiv) bankruptcy type (7, 11, 13 or blank); (xv)
      post-petition due date (for bankruptcy chapter 13 loans only); (xvi)
paid-in-full
      date;
      (xvii) paid-in-full principal; (xviii) prepay penalty collected amount; (xix)
      foreclosure completed date; (xx) liquidation date; (xxi) liquidation type (REO
      sale, short sale, third party sale, write off, other); (xxii) loss amount before
      any mortgage insurance claim; (xxiii) mortgage insurance company name; (xxiv)
      mortgage insurance claim received amount.

     

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

     

    To
      the
      extent required by the Mortgage Note related to an Ocwen Mortgage Loan, Ocwen
      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 Servicing Advances made by Ocwen) for the payment of taxes,
      assessments, hazard insurance premiums or comparable items for the account
      of
      the Mortgagors. Nothing herein shall require Ocwen 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 Ocwen out of related
      collections for any payments made with respect to each Ocwen 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 adjustable
      rate Ocwen Mortgage Loan shall be adjusted, in compliance with the requirements
      of the related Mortgage and Mortgage Note, to equal the sum of the 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. Ocwen shall execute
      and deliver the notices required by each Mortgage and Mortgage Note, applicable
      laws and regulations regarding interest rate adjustments. The Servicer shall
      also provide timely notification to the Master Servicer of all applicable data
      and information regarding such interest rate adjustments and Ocwen’s methods of
      implementing such interest rate adjustments. Upon the discovery by Ocwen or
      the
      Master Servicer that Ocwen has failed to adjust a Mortgage Rate or a Scheduled
      Payment pursuant to the terms of the related Mortgage Note and Mortgage, Ocwen
      shall immediately deposit in the related Custodial Account 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, the 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 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 Mortgage Loans withdrawn by the
      Servicers from the Custodial Accounts and remitted by the Servicers to the
      Securities Administrator;

     

    (ii)  Any
      Advance and any Compensating Interest Payments;

     

    (iii)  Any
      Prepayment Charges collected by the Servicers in connection with the Principal
      Prepayment of any of the 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 a Custodial
      Account;

     

    (v)  The
      Purchase Price with respect to any 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 Mortgage Loans purchased by the Sponsor
      pursuant to Section 3.24, and all proceeds of any 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 Master Servicer as Successor Servicer or the related Servicer
      for
      any Advance or Servicing Advance of its own funds, the right of the Master
      Servicer as Successor Servicer or the related Servicer 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 from Insurance Proceeds
      or
      Liquidation Proceeds relating to a particular Mortgage Loan for amounts expended
      by the Master Servicer as Successor Servicer or the related Servicer in good
      faith in connection with the restoration of the related Mortgaged Property
      which
      was damaged by an uninsured cause or in connection with the liquidation of
      such
      Mortgage Loan;

     

    (iv)  to
      reimburse the Master Servicer as Successor Servicer or the related Servicer
      from
      Insurance Proceeds relating to a particular Mortgage Loan for insured expenses
      incurred with respect to such Mortgage Loan and to reimburse the Master Servicer
      as Successor Servicer or the related Servicer from Liquidation Proceeds from
      a
      particular Mortgage Loan for Liquidation Expenses incurred with respect to
      such
      Mortgage Loan;

     

    (v)  to
      reimburse the Master Servicer as Successor Servicer or the related Servicer
      for
      advances of funds pursuant to this Agreement or the Servicing 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 Master Servicer as Successor Servicer or the related Servicer
      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)  [reserved];

     

    (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 for expenses incurred in the transfer of servicing
      responsibilities of the 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
      Section 5.04.

     

    
      	Section
              3.33  	
              Credit
                Risk Management Services and Reports; Reliability of Data.

            

    

     

    (a) The
      Depositor hereby appoints Wells Fargo Bank, National Association as Credit
      Risk
      Manager. The Credit Risk Manager shall perform certain services related to
      servicer review and oversight, monitoring and reporting of various Mortgage
      Loans and each Servicer’s performance, preparation of Mortgage Loan and REO
      Property payment, delinquency and loss information, reconciliation of Prepayment
      Charge collections by such Servicer and monitoring information related to
      insurance claims and foreclosures. If the Credit Risk Manager is not also acting
      as the Master Servicer, Ocwen shall furnish to the Credit Risk Manager all
      reports required to be provided in Section 3.28 on the eighteenth
      (18th)
      calendar day of each month (or if such day is not a Business Day, the
      immediately following Business Day), which reports shall be provided in
      electronic format, and Wells Fargo shall furnish to the Credit Risk Manager
      all
      reports required to provided in Section 5.02 of the Servicing Agreement as
      provided therein. No later than the end of each calendar month, the Credit
      Risk
      Manager shall prepare and make available certain reports containing various
      performance, payment, delinquency and loss information and information related
      to insurance claims and foreclosures. Such reports shall be made available
      through the facilities of Wells Fargo’s corporate trust services website,
      currently located at www.CTSLink.com,
      and
      shall be in a format and contain such content as is mutually agreed upon by
      the
      Sponsor and the Credit Risk Manager. None of the Trustee, the Securities
      Administrator or the Master Servicer shall have any obligation to review such
      reports or otherwise monitor or supervise the activities of the Credit Risk
      Manager.

    

    (b) The
      Transaction Parties acknowledge and agree that the reports that are compiled
      and
      prepared by the Credit Risk Manager are based on information provided to the
      Credit Risk Manager by the Servicers, the Master Servicer and from various
      unaffiliated third parties, including other Persons involved in the servicing
      and administration of the related Mortgage Loans or related REO Properties.
      The
      Credit Risk Manager makes no representation or warranty as to the accuracy
      or
      completeness of any such information or data, and the Credit Risk Manager shall
      not be responsible for any misstatements, omissions, errors, or inaccuracies
      in
      any such reports or information resulting from any misstatements, omissions,
      errors, or inaccuracies in any information or data provided by third
      parties.

    

    
      	Section
              3.34  	
              Intellectual
                Property and Confidentiality.

            

    

     

    The
      Transaction Parties acknowledge and agree that the Credit Risk Manager’s
      services hereunder involve the use of various data, information, templates,
      processes, ideas, inventions, technology, software, algorithms, mathematical
      models, analytical tools, evaluative processes, parameters, measurements,
      methods, know-how, techniques, business practices, functionalities, ideas and
      concepts developed or utilized by the Credit Risk Manager or its affiliates
      in
      connection with the Credit Risk Manager’s performance of the credit risk
      management services and various other services (collectively, “Wells
      Fargo Intellectual Property”),
      and
      that all such Wells Fargo Intellectual Property is the sole and exclusive
      property of the Credit Risk Manager and its affiliates and that no license
      for
      use of such Wells Fargo Intellectual Property is granted hereby or can be
      implied by the terms of this Agreement or the activities of the parties
      hereunder. The Transaction Parties covenant and agree to preserve the
      confidentiality of such Wells Fargo Intellectual Property, and further covenant
      and agree that neither the Transaction Parties nor any of their affiliates,
      directors, officers, employees, agents or representatives, including their
      outside counsel, auditors and advisors, respectively, shall use (or otherwise
      appropriate in any respect) any such Wells Fargo Intellectual Property or
      disclose, publicize, transfer, or otherwise compromise the value of any such
      Wells Fargo Intellectual Property.

    

    
      	Section
              3.35  	
              Limitation
                Upon Liability of Credit Risk Manager; Indemnification.

            

    

     

    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 the Servicers, 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 the Servicers, the Master Servicer or any
      Transaction Party or of errors in judgment; provided, however, that this
      provision shall not protect the Credit Risk Manager against any breach of
      representations or warranties made herein, failure to perform its obligations
      hereunder, or any liability which would otherwise be imposed by reason of
      willful misfeasance, bad faith, or gross negligence of the Credit Risk Manager
      in the performance of duties hereunder or by reason of a breach of its
      obligations and duties under this Agreement. The Credit Risk Manager and any
      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. Subject to the terms of this
      Agreement, the Credit Risk Manager shall be under no obligation to appear in,
      prosecute, or defend any legal action which, in its opinion, may involve it
      in
      any expense or liability; provided, however, that the Credit Risk Manager may
      with the consent of the applicable Transaction Party, and at such Transaction
      Party’s expense, undertake any such action that it may deem necessary or
      desirable in respect to this Agreement and the rights, duties, and the interests
      of the parties hereto. 

     

    The
      Credit Risk Manager 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 its part that may be sustained in
      connection with, arising out of, or relating to this Agreement or any action
      taken or not taken by it under this Agreement unless such claims, liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses or disbursements were imposed on, incurred by or asserted against
      the
      Credit Risk Manager or such other Person solely as a result of (i) the breach
      by
      the Credit Risk Manager of its obligations hereunder, which breach would subject
      the Credit Risk Manager to liability pursuant to the first paragraph of this
      Section or (ii) the breach by a Transaction Party of its obligations under
      this
      Agreement, in which case the related Transaction Party shall indemnify the
      Credit Risk Manager. Notwithstanding the foregoing, neither the Trust Fund
      nor
      the Transaction Parties shall indemnify the Credit Risk Manager for ordinary
      costs and expenses otherwise incurred by the Credit Risk Manager in the
      performance of the Credit Risk Manager’s duties under this Agreement. The
      foregoing indemnification shall survive the termination of this agreement or
      the
      termination, removal or substitution of any party to this Agreement.

     

    Section
      3.36. Resignation
      or Removal of Credit Risk Manager.
      

    

    The
      Credit Risk Manager may resign upon thirty (30) days’ prior written notice to
      the Trustee. The Credit Risk Manager may be removed as Credit Risk Manager
      hereunder upon any material breach by the Credit Risk Manager in the performance
      of its duties hereunder following written notice of such breach provided by
      the
      Trustee at the direction of Certificateholders holding not less than a 66-2/3%
      of the Voting Rights and the Credit Risk Manager’s failure to cure such breach
      within a reasonable period following such notice.

     

    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, as applicable, 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 enforce the Servicer’s obligation to perform and
      observe the covenants, obligations and conditions to be performed or observed
      by
      such Servicer under this Agreement or the Servicing Agreement. The Master
      Servicer shall independently and separately monitor the Servicer’s servicing
      activities 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
      Servicers’ 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 Servicer 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
      any
      Servicer is a party to (the “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 agreeable to the Trustee
      necessary or appropriate to enable the Servicers and the Master Servicer to
      service or master service and administer the related Mortgage Loans and REO
      Property. The Trustee shall have no responsibility for any action of the Master
      Servicer or the Servicers pursuant to any such limited power of attorney or
      any
      other executed document delivered by the Trustee pursuant to this paragraph
      and
      shall be indemnified by the Master Servicer and 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 the 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 its
      compliance with the terms of this Agreement. 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 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 (or, if Wells Fargo is the
      defaulting Servicer, the Trustee) 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 (or, if Wells Fargo is the defaulting Servicer, the Trustee) shall
      act
      as servicer of the Mortgage Loans or enter in to a new servicing agreement
      with
      a successor servicer selected by the Master Servicer (or, if Wells Fargo is
      the
      defaulting Servicer, the Trustee); 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 or the Trustee, as
      applicable, in its good faith business judgment, would require were it the
      owner
      of the Mortgage Loans. The Master Servicer or the Trustee, as applicable, shall
      pay the costs of such enforcement, provided that no provision of this Agreement
      shall require the Master Servicer or the Trustee to expend or risk their own
      funds or otherwise incur any financial liability in the performance of any
      of
      their duties hereunder, or in the exercise of any of their rights or powers,
      if
      they shall have reasonable grounds for believing that repayment of such funds
      or
      adequate indemnity against such risk or liability is not reasonably assured
      to
      them.

     

    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 or the Trustee if Wells Fargo is the defaulting 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 or the Trustee, as applicable shall be entitled
      to
      reimbursement of such costs and expenses from the Distribution
      Account.

     

    The
      Master Servicer shall require the Servicers to comply with the remittance
      requirements and other obligations set forth in this Agreement and the Servicing
      Agreement, as applicable.

     

    If
      the
      Master Servicer acts as Successor Servicer, it shall not assume liability for
      the representations and warranties of the related 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 any 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 agreeable to
      the
      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 a 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 and 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 enforce the Servicer’s obligation to enforce such clauses in
      accordance with this 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.

     

    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 shall, to the extent required
      by
      Article III of this Agreement or the Servicing Agreement, as applicable, enforce
      each Servicer’s obligation 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
      Servicers 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 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 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) 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 obligation 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 the Master Servicer or the related Servicer, would have
      been
      covered thereunder. The Master Servicer shall use its best reasonable efforts
      to
      enforce the related Servicer’s obligation to keep in force and effect (to the
      extent that the related 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 a 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 enforce each Servicer’s obligation 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 Master Servicer or the related Servicer
      under any primary mortgage insurance policies shall be deposited by the related
      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 has 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 enforce each Servicer’s obligation 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 the Master Servicing Fee and to retain all income and gain realized
      from any investment of funds in the Distribution Account. The Master Servicer
      shall be required to pay all expenses incurred by it in connection with its
      activities hereunder and shall not be entitled to reimbursement therefor except
      as provided in this Agreement.

     

    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 enforce each Servicer’s obligation 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. Further, the Master Servicer shall
      enforce each Servicer’s obligation to sell any REO Property prior to three (3)
      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 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 enforce each Servicer’s
      obligation 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 enforce each Servicer’s obligation to deposit all funds
      collected and received in connection with the operation of any REO Property
      in
      the Custodial Account maintained by the Servicer.

     

    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
      and Master Servicing Fees from Liquidation Proceeds received in connection
      with
      the final disposition of such REO Property; provided, that any such unreimbursed
      Advances as well as any unpaid Master 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
      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 Servicer under this Agreement with respect to
      Prepayment Interest Shortfalls on the Mortgage Loans for the related
      Distribution Date, and not so paid by the 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)  Ocwen
      shall make an Advance with respect to any Ocwen Mortgage Loan and deposit such
      Advance in the Distribution Account no later than noon Eastern time on the
      Remittance Date in immediately available funds. The amount of any Advances
      to be
      made by Ocwen on any Distribution Date shall equal (i) the aggregate amount
      of
      Monthly Payments (net of the related Servicing Fees), due during the related
      Due
      Period in respect of the Mortgage Loans, which Monthly Payments were delinquent
      as of the close of business on the related Determination Date and (ii) with
      respect to each REO Property, which was acquired during or prior to the related
      Prepayment Period and as to which an REO Disposition did not occur during the
      related Prepayment Period, an amount equal to the excess, if any, of the REO
      Imputed Interest on such REO Property for the most recently ended calendar
      month, over the net income from such REO Property deposited in the related
      Custodial Account pursuant to Section 3.26 of this Agreement for distribution
      on
      such Distribution Date; provided, however, Ocwen shall not be required to make
      P&I Advances with respect to Relief Act Interest Shortfalls, shortfalls
      resulting from a Debt Service Reduction or with respect to Prepayment Interest
      Shortfalls in excess of its obligations under Section 5.02. For purposes of
      the
      preceding sentence, the Monthly Payment on each Balloon Mortgage Loan with
      a
      delinquent Balloon Payment is equal to the assumed monthly payment that would
      have been due on the related Due Date based on the original principal
      amortization schedule for such Balloon Mortgage Loan. Ocwen shall be obligated
      to make any such Advance only to the extent that such advance would not be
      a
      Nonrecoverable Advance. If Ocwen 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, Ocwen 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
      Master Servicer an Officer’s Certificate setting forth the basis for such
      determination. Wells Fargo’s obligation in respect of Advances is set forth in
      the Servicing Agreement.

     

    In
      lieu
      of making all or a portion of such Advance from its own funds, Ocwen may (i)
      cause to be made an appropriate entry in its records relating to its Custodial
      Account that any Amounts Held for Future Distribution has been used by it in
      discharge of its obligation to make any such Advance and (ii) transfer such
      funds from its Custodial Account to the Distribution Account. Any funds so
      applied and transferred shall be replaced by Ocwen 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 its Custodial Account shall
      be
      less than the amount required to be remitted to the Securities Administrator
      on
      such Remittance Date. 

     

    The
      Securities Administrator will notify each Servicer and the Master Servicer
      by
      the close of business on the Business Day prior to the Distribution Date in
      the
      event that the amount remitted by the related Servicer to the Securities
      Administrator on such date is less than the Advances required to be made by
      the
      Servicer for the related Distribution Date.

     

    Each
      Servicer shall be entitled to be reimbursed from its Custodial Account for
      all
      Advances of its own funds made pursuant to this Section or pursuant to the
      Servicing Agreement, as applicable, as provided in Section 3.27 of this
      Agreement or the Servicing Agreement. 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 a
      Successor 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 this Section 5.01 and Section 8.02.

     

    (b)  (i)
      Ocwen
      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) Ocwen 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 Ocwen
      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 Ocwen 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 Ocwen. Notwithstanding the existence of any Advance Facility
      under which an Advance Financing Person agrees to fund Advances and/or Servicing
      Advances, (A) Ocwen (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
      Ocwen
      enters into an Advance Facility, Ocwen 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 “Ocwen’s Assignee”)
      that will, subject to Section 5.01(b)(iii) hereof, have the right to make
      withdrawals from the related 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 Ocwen would be permitted to reimburse itself in accordance with
      Section 3.27 hereof, assuming Ocwen 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, Ocwen, on behalf of the Advance Financing
      Person and Ocwen’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, Ocwen shall no longer be entitled to receive reimbursement for any
      Advance Reimbursement Amounts and Ocwen’s Assignee shall immediately have the
      right to receive from the Custodial Account all Advance Reimbursement Amounts.
      Notwithstanding the foregoing, and for the avoidance of doubt, (i) Ocwen and/or
      Ocwen’s Assignee shall only be entitled to reimbursement of Advance
      Reimbursement Amounts hereunder from withdrawals from the 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 Ocwen or Ocwen’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 Ocwen
      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 Ocwen’s Assignee. Ocwen shall indemnify the Master
      Servicer, the Securities Administrator, the 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, the Depositor, the Trustee or
      any
      Successor Servicer, as the case may be. Ocwen 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 Ocwen, 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.

     

    (v)  As
      between Ocwen 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
      Ocwen’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 Ocwen or its related Advance Financing Person in error, then Ocwen’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, Ocwen shall remain
      entitled to be reimbursed by the Advance Financing Person for all Advances
      and/or Servicing Advances funded by Ocwen to the extent the related Advance
      Reimbursement Amounts have not been assigned or pledged to such Advance
      Financing Person or Ocwen’s Assignee.

     

    (vi)  For
      purposes of any Officer’s Certificate of Ocwen delivered pursuant to
      Section 5.01(a), any Nonrecoverable Advance referred to therein may have
      been made by Ocwen. In making its determination that any Advance or Servicing
      Advance theretofore made has become a Nonrecoverable Advance, Ocwen shall apply
      the same criteria in making such determination regardless of whether such
      Advance or Servicing Advance shall have been made by Ocwen.

     

    (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 Ocwen 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 Ocwen. 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
      Ocwen 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 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) Ocwen will be responsible
      for remitting to the related Advance Financing Person the applicable amounts
      collected by it as reimbursement for Advances and/or Servicing Advances funded
      by such 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 Ocwen 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 full by the Mortgagor with respect to any Ocwen Mortgage
      Loan during the portion of the related Prepayment Period occurring in the month
      prior to the month in which the related Distribution Date occurs, Ocwen shall,
      to the extent of the Servicing Fee for such Distribution Date, deposit into
      its
      Custodial Account, as a reduction of and to the extent of, the Servicing Fee
      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, Ocwen 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 I Regular Interests and REMIC II Regular Interests
      in
      accordance with Section 5.07 hereof.

     

    Section
      5.04  Distributions.

     

    (a)  On
      each
      Distribution Date, the Securities Administrator will withdraw funds on deposit
      in the Distribution Account and make distributions to the Certificateholders
      in
      accordance with the Remittance Report for such Distribution Date, in the
      following order of priority:

     

     
      (i)  On
      each
      Distribution Date, the Interest Remittance Amount for such Distribution Date,
      to
      the extent of funds in the Distribution Account, will be paid in the following
      order of priority:

     

    
      	(1)  	
              from
                the Interest Remittance Amount for Loan Group I and Loan Group II,
                the
                Group I Allocation Percentage and the Group II Allocation Percentage,
                as
                applicable, of any Net Swap Payment and any Swap Termination Payment
                paid
                to the Supplemental Interest Trust and owed to the Swap Provider
                (unless
                the Swap Provider is a 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);

            

    

     

    
      	(2)  	
              from
                the Interest Remittance Amount for Loan Group I and Loan Group II
                to the
                Senior Certificates, pro rata based on amounts due, Current Interest
                and
                Carryforward Interest for each such Class and such Distribution Date
                applied in accordance with the allocation rules set forth
                below;

            

    

     

    
      	(3)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class M-1
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date;

            

    

     

    
      	(4)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class M-2
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date;

            

    

     

    
      	(5)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class M-3
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date;

            

    

     

    
      	(6)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class M-4
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date;

            

    

     

    
      	(7)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class M-5
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date;

            

    

     

    
      	(8)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class M-6
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date; 

            

    

     

    
      	(9)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class M-7
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date; 

            

    

     

    
      	(10)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class M-8
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date; 

            

    

     

    
      	(11)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class M-9
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date;

            

    

     

    
      	(12)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class B-1
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date; 

            

    

     

    
      	(13)  	
              first,
                from the Interest Remittance Amount for Loan Group II and then from
                the
                Interest Remittance Amount for Loan Group I, to the Class B-2
                Certificates, Current Interest and Carryforward Interest for such
                Class
                and Distribution Date; and

            

    

     

    
      	(14)  	
              for
                application as part of Monthly Excess Cashflow for such Distribution
                Date
                pursuant to subclause (iii) below, any such Interest Remittance Amount
                remaining after application pursuant to clauses (1) through (14)
                above for
                such Distribution Date.

            

    

     

    The
      remaining Interest Remittance Amount for Loan Group I and Loan Group II
      distributed pursuant to clause (2) above will be applied to the Senior
      Certificates as follows:

     

    (1) the
      Interest Remittance Amount for Loan Group I will be distributed in the following
      order of priority: (x) first, to the Class I-A-1 Certificates, Current Interest
      and Carryforward Interest for such Class for such Distribution Date; and then
      (y) concurrently, to the Class II-A-1, Class II-A-2, Class II-A-3 and Class
      II-A-4 Certificates, Current Interest and Carryforward Interest for each such
      Class for such Distribution Date, on a pro rata basis based on the entitlement
      of each such Class, after taking into account the distribution of the Interest
      Remittance Amount for Loan Group II on such Distribution Date; and

     

    (2) the
      Interest Remittance Amount for Loan Group II will be distributed in the
      following order of priority: (x) first, concurrently to the Class II-A-1, Class
      II-A-2, Class II-A-3 and Class II-A-4 Certificates, Current Interest and
      Carryforward Interest for each such Class for such Distribution Date, on a
      pro
      rata basis based on the entitlement of each such Class; and then (y) to the
      Class I-A-1 Certificates, Current Interest and Carryforward Interest for such
      Class for such Distribution Date, after taking into account the distribution
      of
      the Interest Remittance Amount for Loan Group I on such Distribution
      Date.

     

    (ii)  The
      Principal Payment Amount will be paid on each Distribution Date as
      follows:

     

    I. 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:

     

    
      	(A)  	
              to
                the Supplemental Interest Trust from the Principal Payment Amount
                derived
                from the Group I Mortgage Loans and the Group II Mortgage Loans,
                the Group
                I Allocation Percentage and the Group II Allocation Percentage, as
                applicable, of any Net Swap Payment and any Swap Termination Payment
                owed
                to the Swap Provider (unless the Swap Provider is a 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 Amounts on such
                Distribution Date;

            

    

     

    
      	(B)  	
              (i)from
                the Principal Payment Amount derived from the Group I Mortgage Loans
                remaining after payments pursuant to clause (A) above, to the Class
                I-A-1 Certificates, until the Certificate Principal Balance thereof
                has
                been reduced to zero;

            

    

     

    (ii)
       from
      the
      Principal Payment Amount derived from the Group II Mortgage Loans remaining
      after payments pursuant to clause (A) above, sequentially, to the Class
      II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4 Certificates, in that order,
      until the Certificate Principal Balance of each such Class has been reduced
      to
      zero; 

     

    
      	(C)  	
              (i)
                from
                the Principal Payment Amount derived from the Group I Mortgage Loans
                remaining after payments pursuant to clause (A) above and after the
                Certificate Principal Balance of the Class I-A-1 Certificates has
                been
                reduced to zero, sequentially, to the Class II-A-1, Class II-A-2,
                Class
                II-A-3 and Class II-A-4 Certificates, in that order, after taking
                into
                account payments pursuant to clause I(B)(ii) above, until the Certificate
                Principal Balance of each such Class has been reduced to
                zero;

            

    

     

    (ii) from
      the
      Principal Payment Amount derived from the Group II Mortgage Loans remaining
      after payments pursuant to clause (A) above and after the Certificate
      Principal Balances of the Class II-A-1, Class II-A-2, Class II-A-3 and Class
      II-A-4 Certificates have been reduced to zero, to the Class I-A-1 Certificates,
      after taking into account payments pursuant to clause I(B)(i) above, until
      its
      Certificate Principal Balance has been reduced to zero; 

     

    
      	(D)  	
              to
                the Class M-1 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(E)  	
              to
                the Class M-2 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(F)  	
              to
                the Class M-3 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(G)  	
              to
                the Class M-4 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(H)  	
              to
                the Class M-5 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(I)  	
              to
                the Class M-6 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(J)  	
              to
                the Class M-7 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(K)  	
              to
                the Class M-8 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(L)  	
              to
                the Class M-9 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(M)  	
              to
                the Class B-1 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(N)  	
              to
                the Class B-2 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero; and

            

    

     

    
      	(O)  	
              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 I(A) through I(N)
                above.

            

    

     

    The
      foregoing notwithstanding, on and after the Distribution Date on which the
      Aggregate Certificate Principal Balance of each Class of Subordinate
      Certificates has been reduced to zero, distributions to the Group II
      Certificates will be allocated to the Class II-A-1, Class II-A-2, Class II-A-3
      and Class II-A-4 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.

     

    II. 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:

     

    
      	(A)  	
              to
                the Supplemental Interest Trust from the Principal Payment Amount
                derived
                from the Group I Mortgage Loans and the Group II Mortgage Loans,
                the Group
                I Allocation Percentage and the Group II Allocation Percentage, as
                applicable, of any Net Swap Payment and any Swap Termination Payment
                owed
                to the Swap Provider (unless the Swap Provider is a 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
                Amounts
                on such Distribution Date;

            

    

     

    
      	(B)  	
              (i)from
                the Group I Allocation Amount, to the Class I-A-1 Certificates, until
                its
                Certificate Principal Balance has been reduced to zero;
                

            

    

     

    (ii) from
      the
      Group II Allocation Amount, sequentially, to the Class II-A-1, Class II-A-2,
      Class II-A-3 and Class II-A-4 Certificates, in that order, until the Certificate
      Principal Balance of each such Class has been reduced to zero;

     

    
      	(C)  	
              (i)
                from
                the Group I Allocation Amount remaining after the Certificate Principal
                Balance of the Class I-A-1 Certificates has been reduced to zero,
                sequentially, to the Class II-A-1, Class II-A-2, Class II-A-3 and
                Class
                II-A-4 Certificates, in that order, after taking into account payments
                pursuant to clause II(B)(ii) above, until the Certificate Principal
                Balance of each such Class has been reduced to
                zero;

            

    

     

    (ii) from
      the
      Group II Allocation Amount remaining after the Certificate Principal Balances
      of
      the Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4 Certificates
      have
      been reduced to zero, to the Class I-A-1 Certificates, after taking into account
      payments pursuant to clause II(B)(i) above, until its Certificate Principal
      Balance has been reduced to zero;

     

    
      	(D)  	
              to
                the Class M-1 Certificates, the Class M-1 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(E)  	
              to
                the Class M-2 Certificates, the Class M-2 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(F)  	
              to
                the Class M-3 Certificates, the Class M-3 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(G)  	
              to
                the Class M-4 Certificates, the Class M-4 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(H)  	
              to
                the Class M-5 Certificates, the Class M-5 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero; 

            

    

     

    
      	(I)  	
              to
                the Class M-6 Certificates, the Class M-6 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(J)  	
              to
                the Class M-7 Certificates, the Class M-7 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(K)  	
              to
                the Class M-8 Certificates, the Class M-8 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(L)  	
              to
                the Class M-9 Certificates, the Class M-9 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(M)  	
              to
                the Class B-1 Certificates, the Class B-1 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(N)  	
              to
                the Class B-2 Certificates, the Class B-2 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero; and

            

    

     

    
      	(O)  	
              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 II(A) through II(N)
                above.

            

    

     

    The
      foregoing notwithstanding, on and after the Distribution Date on which the
      Aggregate Certificate Principal Balance of each Class of Subordinate
      Certificates has been reduced to zero, distributions to the Group II
      Certificates will be allocated to the Class II-A-1, Class II-A-2, Class II-A-3
      and Class II-A-4 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.

     

    (iii)  On
      each
      Distribution Date, the Monthly Excess Cashflow will be distributed in the
      following order of priority:

     

    
      	(1)  	
              (A)
                until the aggregate Certificate Principal Balance of the Senior
                Certificates and Subordinate Certificates equals the Aggregate Loan
                Balance for such Distribution Date minus the Targeted
                Overcollateralization Amount for such Distribution Date, on each
                Distribution Date (a) prior to the Stepdown Date or (b) 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
                Subordinate Certificates, in the following order of
                priority:

            

    

     

    (i)    
        (a)
      the
      Group
      I Excess Interest Amount in the following order of priority: (x) first, to
      the
      Class I-A-1 Certificates, until its Certificate Principal Balance has been
      reduced to zero, and then (y) sequentially, to the Class II-A-1, Class II-A-2,
      Class II-A-3 and Class II-A-4 Certificates, in that order, after taking into
      account the distribution of the Group II Excess Interest Amount, until the
      Certificate Principal Balance of each such Class has been reduced to zero;
      

     

    (b) the
      Group
      II Excess Interest Amount in the following order of priority: (x) first,
      sequentially, to the Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4
      Certificates, in that order, until the Certificate Principal Balance of each
      such Class has been reduced to zero, and then (y) to the Class I-A-1
      Certificates, after taking into account the distribution of the Group I Excess
      Interest Amount, until its Certificate Principal Balance has been reduced to
      zero; 

     

    (ii)  to
      the
      Class M-1 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (iii)  to
      the
      Class M-2 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (iv)  to
      the
      Class M-3 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (v)  to
      the
      Class M-4 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (vi)  to
      the
      Class M-5 Certificates, until the Certificate Principal Balance thereof has
      been
      reduced to zero;

     

    (vii)  to
      the
      Class M-6 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (viii)  to
      the
      Class M-7 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (ix)  to
      the
      Class M-8 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (x)  to
      the
      Class M-9 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (xi)  to
      the
      Class B-1 Certificates, until its Certificate Principal Balance has been reduced
      to zero; and

     

    (xii)  to
      the
      Class B-2 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (B) 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 5.04(a)(ii)II,
      after
      giving effect to the distribution of the Principal Payment Amount for such
      date,
      in accordance with the priorities set forth therein;

     

    
      	(2)  	
              to
                the Class M-1 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(3)  	
              to
                the Class M-2 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(4)  	
              to
                the Class M-3 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(5)  	
              to
                the Class M-4 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(6)  	
              to
                the Class M-5 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(7)  	
              to
                the Class M-6 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(8)  	
              to
                the Class M-7 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(9)  	
              to
                the Class M-8 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(10)  	
              to
                the Class M-9 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(11)  	
              to
                the Class B-1 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(12)  	
              to
                the Class B-2 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(13)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class I-A-1, Class II-A-1, Class II-A-2,
                Class II-A-3 and Class II-A-4 Certificates, concurrently, any Basis
                Risk
                Shortfall for each such Class, on a pro rata basis based on the
                entitlement of each such Class;

            

    

     

    
      	(14)  	
              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;

            

    

     

    
      	(15)  	
              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;

            

    

     

    
      	(16)  	
              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;

            

    

     

    
      	(17)  	
              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;

            

    

     

    
      	(18)  	
              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;

            

    

     

    
      	(19)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-6 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(20)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-7 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(21)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-8 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(22)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-9 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(23)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class B-1 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(24)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class B-2 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(25)  	
              to
                the Supplemental Interest Trust, any Swap Termination Payment owed
                to the
                Swap Provider in the event of a Swap Provider Trigger Event and the
                Swap
                Provider is a Defaulting Party or the sole Affected Party (as defined
                in
                the ISDA Master Agreement) 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;

            

    

     

    
      	(26)  	
              to
                the Class X Certificates, the Class X Distribution Amount;
                and

            

    

     

    
      	(27)  	
              to
                the Class R Certificates, any remaining amount. It is not anticipated
                that
                any amounts will be distributed to the Class R Certificates under
                this
                clause (27).

            

    

     

    Notwithstanding
      the foregoing, distributions pursuant to clauses (1) through (24) 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 Subordinate
      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; sixth, to the Class M-5 Certificates, the amount of any
      Basis
      Risk Shortfalls allocated to such Class for such Distribution Date; seventh,
      to
      the Class M-6 Certificates, the amount of any Basis Risk Shortfall allocated
      to
      such Class for such Distribution Date for such Class; eighth, to the Class
      M-7
      Certificates, the amount of any Basis Risk Shortfall allocated to such Class
      for
      such Distribution Date for such Class; ninth, to the Class M-8 Certificates,
      the
      amount of any Basis Risk Shortfall allocated to such Class for such Distribution
      Date for such Class; tenth, to the Class M-9 Certificates, the amount of any
      Basis Risk Shortfall allocated to such Class for such Distribution Date for
      such
      Class; eleventh, to the Class B-1 Certificates, the amount of any Basis Risk
      Shortfall allocated to such Class for such Distribution Date for such Class;
      and
      twelfth, to the Class B-2 Certificates, the amount of any Basis Risk Shortfall
      allocated to such Class for such Distribution Date for such Class.

     

    (iv)  Subject
      to Section 10.02 hereof respecting the final distribution on a Class of
      Senior Certificates or a Class of Subordinate Certificates, on each Distribution
      Date the Securities Administrator shall make distributions to each Holder of
      a
      Senior Certificate or Subordinate 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 Subordinate Certificates registered in the
      name of a Depository shall be made to such Depository in immediately available
      funds.

     

    (v)  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 Certificateholders. 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 Subordinate Certificates and shall
      be
      paid as set forth in Section 5.04(a)(iii)(25).

     

    (b)  On
      each
      Distribution Date, the Securities Administrator shall distribute from the
      amounts received from the Swap Provider in respect of any Net Swap Payment
      then
      on deposit in the Supplemental Interest Trust in the following order of
      priority:

     

    (i)  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 such Class or Classes to the extent not covered by the Interest
      Remittance Amount on that Distribution Date and solely to the extent the amount
      of any Carryforward Interest is a result of the allocation of the interest
      portion of Realized Losses;

     

    (ii)  sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
      M-7, Class M-8, Class M-9, Class B-1 and Class B-2 Certificates, in that order,
      in an amount equal to Current Interest and any Carryforward Interest for such
      Class or Classes to the extent not covered by the Interest Remittance Amount
      on
      that Distribution Date and solely to the extent the amount of any Carryforward
      Interest is as a result of the allocation of the interest portion of Realized
      Losses; 

     

    (iii)  sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
      M-7, Class M-8, Class M-9, Class B-1 and Class B-2 Certificates, in an amount
      equal to any Deferred Amounts, for such Class or Classes, with interest thereon
      at the applicable Pass-Through Rate, prior to giving effect to amounts available
      to be paid in respect of Deferred Amounts pursuant to Section 5.04(iii);

     

    (iv)  to
      the
      holders of the Senior Certificates and Subordinate Certificates then entitled
      to
      receive distributions in respect of principal, in an amount necessary to
      maintain or restore the Targeted Overcollateralization Amount prior to taking
      into account distributions made pursuant to Section 5.04(iii).

     

    (v)  to
      the
      Basis Risk Shortfall Reserve Fund, to pay the Senior Certificates and
      Subordinate 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 remaining unpaid, and second, sequentially, to the Class M-1,
      Class
      M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class
      M-9, Class B-1 and Class B-2 Certificates, in that order, any related Basis
      Risk
      Shortfall Amount for such Class or Classes remaining unpaid on such Distribution
      Date, in each case to the extent not covered by the Monthly Excess Cashflow
      on
      that Distribution Date; and

     

    (vi)
       to
      the
      Class X Certificates, any remaining amounts.

     

    Section
      5.05  Allocation
      of Realized Losses.

     

    (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, based solely on the reports
      delivered by the Servicer pursuant to this Agreement.

     

    (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 Interest Rate 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 B-2 Certificates, until the Certificate Principal
      Balance thereof has been reduced to zero; fourth, to the Class B-1 Certificates,
      until the Certificate Principal Balance thereof has been reduced to zero; fifth,
      to the Class M-9 Certificates, until the Certificate Principal Balance thereof
      has been reduced to zero; sixth, to the Class M-8 Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero; seventh, to
      the
      Class M-7 Certificates, until the Certificate Principal Balance thereof has
      been
      reduced to zero; eighth, to the Class M-6 Certificates, until the Certificate
      Principal Balance thereof has been reduced to zero; ninth, to the Class M-5
      Certificates, until the Certificate Principal Balance thereof has been reduced
      to zero; tenth, to the Class M-4 certificates, until the Certificate Principal
      Balance thereof has been reduced to zero; eleventh, to the Class M-3
      Certificates, until the Certificate Principal Balance thereof has been reduced
      to zero; thirteenth, to the Class M-2 Certificates, until the Certificate
      Principal Balance thereof has been reduced to zero; and fourteenth, to the
      Class
      M-1 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 Classes of Subordinate 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 Subordinate 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 Subordinate
      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 5.04(iii)(26). No
      allocations of any Realized Losses shall be made to the Certificate Principal
      Balances of the Senior Certificates or Class P Certificates.

     

    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
      Servicers under this Agreement or the Servicing Agreement, as applicable, that
      any Subsequent Recoveries have been collected by a Servicer with respect to
      the
      related Mortgage Loans, the amount of such Subsequent Recoveries will be applied
      to increase the Certificate Principal Balance of the Class of Subordinate
      Certificates with the highest payment priority to which Realized Losses on
      the
      Mortgage Loans have been allocated, but not by more than the amount of Realized
      Losses previously allocated to that Class of Subordinate Certificates pursuant
      to this Section 5.05. After the Certificate Principal Balances of any Class
      of Subordinate Certificates have been increased up to the amount of Realized
      Losses allocated thereto pursuant to this Section 5.05 to the extent that
      such Applied Loss Amounts have not been paid to such certificates 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 remaining
      Subordinate Certificates, beginning with the Class of Subordinate Certificates
      with the next highest payment priority, up to the amount of such Realized Losses
      previously allocated to such Class of Certificates pursuant to this
      Section 5.05 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 Subordinate
      Certificate in accordance with its respective Percentage Interest. 

     

    (e)  With
      respect to the REMIC I Regular Interests, all Realized Losses on the Group
      I
      Mortgage Loans shall be allocated 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.
      All
      Realized Losses on the Group II Mortgage Loans shall be allocated on each
      Distribution Date first, to REMIC I Regular Interest II until the Uncertificated
      Principal Balance has been reduced to zero, and second, to REMIC I Regular
      Interest II-1-A through REMIC I Regular Interest II-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)  The
      REMIC
      II Market Allocation Percentage of 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-B2 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until
      the Uncertificated Principal Balance of REMIC II Regular Interest LT-B2 has
      been
      reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC
      II
      Regular Interest LT-AA, REMIC II Regular Interest LT-B1 and REMIC II Regular
      Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-B1 has been reduced to zero; fifth,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC
      II Regular Interest LT-M9 and REMIC II Regular Interest LT-ZZ, 98%, 1% and
      1%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest LT-M9 has been reduced to zero; sixth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M8
      and
      REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the
      Uncertificated Principal Balance of REMIC II Regular Interest LT-M8 has been
      reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC
      II
      Regular Interest LT-AA, REMIC II Regular Interest LT-M7 and REMIC II Regular
      Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-M7 has been reduced to zero; eighth,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC
      II Regular Interest LT-M6 and REMIC II Regular Interest LT-ZZ, 98%, 1% and
      1%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest LT-M6 has been reduced to zero; ninth, 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; tenth, 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; eleventh,
      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; twelfth, 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; and thirteenth, 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.

     

    The
      REMIC
      II Sub WAC Allocation Percentage of all Realized Losses on the Mortgage Loans
      shall be applied after all distributions have been made on each Distribution
      Date first, so as to keep the Uncertificated Principal Balance of each REMIC
      II
      Regular Interest ending with the designation “GRP” equal to 0.01% of the
      aggregate Stated Principal Balance of the Mortgage Loans in the related Loan
      Group; second, to each REMIC II Regular Interest ending with the designation
      “SUB,” so that the Uncertificated Balance of each such REMIC II Regular Interest
      is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance
      of
      the Mortgage Loans in the related Loan Group over (y) the current Certificate
      Principal Balance of the Senior Certificate in the related Loan Group (except
      that if any such excess is a larger number than in the preceding distribution
      period, the least amount of Realized Losses shall be applied to such REMIC
      II
      Regular Interests such that the REMIC II Subordinated Balance Ratio is
      maintained); and third, any remaining Realized Losses shall be allocated to
      REMIC II Regular Interest LT-XX.

     

    Section
      5.06  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)  with
      respect to each Loan Group, 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 Monthly Excess Interest with respect to
      the
      Certificates (if any) and (D) the amount of Prepayment Charges distributed
      to
      the Class P Certificates;

     

    (v)  the
      amount distributed to Holders of each Class on such Distribution Date allocable
      to interest;

     

    (vi)  the
      Certificate Principal 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 Servicers pursuant to
      Section 5.02 of this Agreement or pursuant to the Servicing Agreement, as
      applicable, or the Master Servicer pursuant to Section 4.14 of this
      Agreement;

     

    (x)  the
      cumulative amount of Realized Losses 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 and the Senior Enhancement Percentage, any
      Overcollateralization Deficiency Amount and any Overcollateralization Release
      Amount for such Distribution Date

     

    (xii)  with
      respect to each Loan Group, 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)  with
      respect to each Loan Group, 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
      (not including Liquidated Mortgage Loans as of the end of the related Prepayment
      Period) (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 in
      each
      Loan Group 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 Loan Group Balance of the Mortgage Loans in a Loan Group
      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 Aggregate Loan Group
      Balance of all of the Mortgage Loans in such Loan Group as of the last day
      related Due Period; 

     

    (xix)  the
      aggregate Servicing Fee received by each Servicer, and each Master Servicing
      Fees, if any, received by the Master Servicer during the related Due
      Period;

     

    (xx)  the
      amount of the Credit Risk Management fees paid to the Credit Risk Manager and/or
      the Sponsor for such Distribution Date;

     

    (xxi)  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;

     

    (xxii)  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;
      

     

    (xxiii)  amounts
      payable in respect of the Swap Agreement; and

     

    (xxiv)  whether
      the Stepdown Date has occurred and whether any 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 Servicer and the Swap Provider.
      The Securities Administrator will make available a copy of each statement
      provided pursuant to this Section 5.06 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 5.06 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
      5.07  REMIC
      Designations, REMIC I and REMIC II Allocations.

     

    (a)  The
      Securities Administrator shall elect that each of REMIC I, REMIC II and REMIC
      III 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.

     

    (b)  On
      each
      Distribution Date, the following amounts, in the following order of priority
      and
      in accordance with the Remittance Report, shall be distributed by REMIC I to
      REMIC II on account of the REMIC I Group I Regular Interests or withdrawn from
      the Distribution Account and distributed to the Holders of the Class R-I
      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 to REMIC I Regular Interest
      I,
      then 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

     

    (iii)  to
      the
      Holders of REMIC I Regular Interest P, (A) on each Distribution Date, 100%
      of
      the amount paid in respect of Prepayment Charges and (B) on the Distribution
      Date in September 2011 until $100 has been distributed pursuant to this
      clause.

     

    (c)  On
      each
      Distribution Date, the following amounts, in the following order of priority
      and
      in accordance with the Remittance Report, shall be distributed by REMIC I to
      REMIC II on account of the REMIC I Group II Regular Interests or withdrawn
      from
      the Distribution Account and distributed to the Holders of the Class R-I
      Interest, as the case may be:

     

    (i)  to
      Holders of each of REMIC I Regular Interest II and REMIC I Regular Interest
      II-1-A through II-60-B, pro rata, in an amount equal to (A) 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: to REMIC I Regular
      Interest II, then to REMIC I Regular interests II-1-A through II-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.

     

    (d)  On
      each
      Distribution Date, the following amounts, in the following order of priority
      and
      in accordance with the Remittance Report, 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-II Interest,
      as the case may be:

     

    (i)  first,
      to
      the Holder of REMIC II Regular Interest LT-IO 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 and then to the Holders of REMIC II Regular Interest
      LT-AA, REMIC
      II
      Regular Interest LT-IA1,
      REMIC II
      Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular
      Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, 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-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2 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-IA1, REMIC II Regular Interest LT-IIA1, REMIC
      II
      Regular Interest LT-IIA2, REMIC II Regular Interest LT-IIA3, REMIC II Regular
      Interest LT-IIA4, 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-M6, REMIC II Regular
      Interest LT-M7, REMIC II Regular Interest LT-M8, REMIC II Regular Interest
      LT-M9, REMIC II Regular Interest LT-B1 and REMIC II Regular Interest LT-B2
      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;

     

    (ii)  second,
      to the Holders of REMIC II Regular Interests, in an amount equal to the
      remainder of the REMIC II Marker Allocation Percentage 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 LT-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 LT-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 LT-P, until $100 has
      been distributed pursuant to this clause;

     

    (B)  2.00%
      of
      such remainder, first, to the Holders REMIC II Regular Interest LT-IA1, REMIC
      II
      Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular
      Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, 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-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1 and
      REMIC II Regular Interest LT-B2, 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-II 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
      LT-P, in that order and (ii) REMIC II Regular Interest LT-ZZ, respectively;
      provided that REMIC II Regular Interest LT-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 LT-P, until $100 has been distributed
      pursuant to this clause.

     

    (iii)  third,
      to
      the Holders of REMIC II Regular Interest LT-1SUB, REMIC II Regular Interest
      LT-1GRP, REMIC II Regular Interest LT-2SUB, REMIC II Regular Interest LT-2GRP
      and REMIC II Regular Interest LT-XX, 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; and

     

    (iv)  fourth,
      to the Holders of REMIC II Regular Interests, in an amount equal to the
      remainder of the REMIC II Sub WAC Allocation Percentage of the Interest
      Remittance Amount and the Principal Payment Amount for such Distribution Date
      after the distributions made pursuant to clause (iii) above, such that
      distributions of principal shall be deemed to be made to the REMIC II Regular
      Interests first, so as to keep the Uncertificated Principal Balance of each
      REMIC II Regular Interest ending with the designation “GRP” equal to 0.01% of
      the aggregate Stated Principal Balance of the Mortgage Loans in the related
      Loan
      Group; second, to each REMIC II Regular Interest ending with the designation
      “SUB,” so that the Uncertificated Principal Balance of each such REMIC II
      Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated
      Principal Balance of the Mortgage Loans in the related Loan Group over (y)
      the
      current Certificate Principal Balance of the Senior Certificates in the related
      Loan Group (except that if any such excess is a larger number than in the
      preceding distribution period, the least amount of principal shall be
      distributed to such REMIC II Regular Interests such that the REMIC II
      Subordinated Balance Ratio is maintained); and third, any remaining principal
      to
      REMIC II Regular Interest LT-XX.

     

    Section
      5.08  Prepayment
      Charges.

     

    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 in accordance with the Remittance
      Report 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. The Master Servicer shall not be responsible for
      calculating or otherwise verifying Prepayment Charge amounts.

     

    Section
      5.09  Class
      P Certificate Account.

     

    The
      Securities Administrator shall establish and maintain with itself a separate,
      segregated trust account titled “Wells Fargo Bank, NA, as Securities
      Administrator, for the benefit of Nomura Home Equity Loan, Inc., Home Equity
      Loan Trust 2006-HE3 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
      5.10  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 Subordinate
      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 Home Equity Loan, Inc., Asset-Backed Certificates, Series
      2006-HE3, Class I-A-1, Class II-A-1, Class II-A-2, Class II-A-3, Class II-A-4,
      Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
      Class M-8, Class M-9, Class B-1 and Class B-2 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 (13) through
      (24)
      of Section 5.04(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
      Subordinate Certificates in the amounts and priorities set forth in
      Section 5.04(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 5.04(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 Subordinate 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
      5.11  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 Subordinate 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 5.04(a)(i)(1),
      5.04(a)(ii)(I)(A), 5.04(a)(ii)(II)(A) and 5.04(a)(iii)(25) 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 5.04(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 5.04(a)(i)(1), 5.04(a)(ii)(I)(A)
      and
      5.04(a)(ii)(II)(A) (other than any Swap Termination Payments) shall first be
      deemed paid to the Supplemental Interest Trust in respect of the Class IO
      Interest to the extent of the amount distributable on such Class IO Interest
      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.

     

    (f)  The
      Securities Administrator shall treat the Holders of Certificates (other than
      the
      Class P, Class X and Class R 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 Certificates
      (other than the Class P, Class X and Class R 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 Class R 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 Class R 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.

     

    (g)  The
      Sponsor shall provide to the Securities Administrator the value of the right
      of
      the holders of the Senior and Subordinate Certificates to receive payments
      from
      the Supplemental Interest Trust for federal tax return and information reporting
      not later than the December 31, 2006.

     

    (h)  In
      the
      event that the Swap Agreement is terminated prior to the Distribution Date
      in
      August 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 Subordinate Certificates
      of amounts described in Section 5.11(c).

     

    Section
      5.12  Tax
      Treatment of Swap Payments and Swap Termination Payments.

     

    For
      federal income tax purposes, each holder of a Senior Certificate or Subordinate
      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
      Subordinate Certificate as follows: each Senior Certificate and Subordinate
      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 Subordinate Certificate.
      Resecuritization of any Senior Certificate and Subordinate Certificate in a
      REMIC will be permissible only if the Securities Administrator hereunder is
      the
      trustee/securities administrator in such resecuritization.

     

    The
      REMIC
      Regular Interest corresponding to a Senior Certificate and Subordinate
      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 Subordinate
      Certificate may exceed the actual amount of distributions on the Senior
      Certificate and Subordinate Certificate.

     

    Section
      5.13  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. Any disclosure in addition to the Monthly Statement that is required
      to
      be included on Form 10-D (“Additional Form 10-D Disclosure”) shall be reported
      to the Depositor and the Securities Administrator by the entity indicated on
      Exhibit N and approved by the Depositor pursuant to the following paragraph.
      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 five (5) calendar days after the related
      Distribution Date, (i) each Transaction Party 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 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 (2) Business
      Days
      after receipt of such copy, but no later than the twelfth (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, 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
      5.13(d)(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-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 5.13(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)  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.

     

    (c)  (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 second (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 forward
      electronically a copy of the Form 8-K to the Depositor. Promptly, but no later
      than the close of business on the third (3rd) 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, 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 5.13(d)(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 it has filed. The parties to this Agreement acknowledge that the
      performance by the Master Servicer and the Securities Administrator of its
      duties under this Section 5.13(c) 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.

     

    (d)  (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 5.12(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.

     

    (e)  (i)For
      so
      long as the trust is subject to Exchange Act reporting requirements, within
      ninety (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”),
      (it
      being understood that the fiscal year for the trust ends on December 31 of
      each
      year) commencing in March 2007, the Securities Administrator shall prepare
      and
      file on behalf of the Trust 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 as described under Section 3.13 and the Custodial Agreement, (ii)(A)
      the annual reports on assessment of compliance with servicing criteria for
      each
      Reporting Servicer, as described under Section 3.14 and the Custodial Agreement,
      and (B) if any Reporting Servicer’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. 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”)
      shall
      be reported to the Depositor and the Securities Administrator by the parties
      set
      forth on Exhibit N, and shall be approved by the Depositor pursuant to the
      following paragraph. 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 15 of each year that the Trust
      is
      subject to the Exchange Act reporting requirements, commencing in 2007, (i)
      each
      Transaction Party 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 forward
      electronically a copy of the Form 10-K to the Depositor. Within three (3)
      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, 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 5.13(d)(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 5.13(e) 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 5.13(e), 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.

     

    (f)  The
      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 5.13 or
      such party’s negligence, bad faith or willful misconduct in connection
      therewith. 

     

    Notwithstanding
      the provisions of Section 11.01, this Section 5.13 may be amended without the
      consent of the Certificateholders.

     

    (g)  Any
      notice required to be delivered by the Securities Administrator to the Depositor
      pursuant to this Sections 3.13, 3.14, 3.18 or 5.13 shall be delivered by the
      Securities Administrator by facsimile and electronic mail to Juliet Buck, Esq.
      at (646) 587-9817 and ,
      with a
      copy to John Graham at (646) 587-9592 and and
      a
      copy to N. Dante LaRocca at (646) 587-9804 and .

     

    

     

    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-6. 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

            
	
              I-A-1

            	
              $25,000

            	
              $1

            	
              $

            	
              441,739,000

            	
              Class
                I-A-1 Pass-Through Rate

            
	
              II-A-1

            	
              $25,000

            	
              $1

            	
              $

            	
              253,448,000

            	
              Class
                II-A-1 Pass-Through Rate

            
	
              II-A-2

            	
              $25,000

            	
              $1

            	
              $

            	
              26,761,000

            	
              Class
                II-A-2 Pass-Through Rate

            
	
              II-A-3

            	
              $25,000

            	
              $1

            	
              $

            	
              71,405,000

            	
              Class
                II-A-3 Pass-Through Rate

            
	
              II-A-4

            	
              $25,000

            	
              $1

            	
              $

            	
              16,605,000

            	
              Class
                II-A-4 Pass-Through Rate

            
	
              M-1

            	
              $25,000

            	
              $1

            	
              $

            	
              43,534,000

            	
              Class
                M-1 Pass-Through Rate

            
	
              M-2

            	
              $25,000

            	
              $1

            	
              $

            	
              40,309,000

            	
              Class
                M-2 Pass-Through Rate

            
	
              M-3

            	
              $25,000

            	
              $1

            	
              $

            	
              24,723,000

            	
              Class
                M-3 Pass-Through Rate

            
	
              M-4

            	
              $25,000

            	
              $1

            	
              $

            	
              21,498,000

            	
              Class
                M-4 Pass-Through Rate

            
	
              M-5

            	
              $25,000

            	
              $1

            	
              $

            	
              19,886,000

            	
              Class
                M-5 Pass-Through Rate

            
	
              M-6

            	
              $25,000

            	
              $1

            	
              $

            	
              18,273,000

            	
              Class
                M-6 Pass-Through Rate

            
	
              M-7

            	
              $25,000

            	
              $1

            	
              $

            	
              17,198,000

            	
              Class
                M-7 Pass-Through Rate

            
	
              M-8

            	
              $25,000

            	
              $1

            	
              $

            	
              15,048,000

            	
              Class
                M-8 Pass-Through Rate

            
	
              M-9

            	
              $25,000

            	
              $1

            	
              $

            	
              11,286,000

            	
              Class
                M-9 Pass-Through Rate

            
	
              B-1

            	
              $25,000

            	
              $1

            	
              $

            	
              10,749,000

            	
              Class
                B-1 Pass-Through Rate

            
	
              B-2

            	
              $25,000

            	
              $1

            	
              $

            	
              10,749,000

            	
              Class
                B-2 Pass-Through Rate

            
	
              X

            	
              $1

            	
              $1

            	
              $

            	
              31,717,098

            	
              Class
                X Pass-Through Rate

            
	
              P

            	
              $1

            	
              $1

            	
              $

            	
              100.00

            	
              N/A

            
	
              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 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.

     

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

     

    No
      transfer of any Class B-1 Certificate or Class B-2 Certificate that is a
      Book-Entry Certificate or interest therein shall be made by any related
      Certificate Owner except (A) in the manner set forth in the preceding paragraph
      and in reliance on Rule 144A under the 1933 Act to a “qualified institutional
      buyer” that is acquiring such Book-Entry Certificate for its own account or for
      the account of another “qualified institutional buyer” or (B) in the manner set
      forth in the second preceding paragraph and in the form of a Definitive
      Certificate.

     

    If
      any
      Certificate Owner that is required under this Section 6.02(b) to transfer its
      Book-Entry Certificates in the form of Definitive Certificates, (i) notifies
      the
      Securities Administrator of such transfer or exchange and (ii) transfers such
      Book-Entry Certificates to the Securities Administrator, in its capacity as
      such, through the book-entry facilities of the Depository, then the Securities
      Administrator shall decrease the balance of such Book-Entry Certificates or,
      the
      Securities Administrator shall use reasonable efforts to cause the surrender
      to
      the Certificate Registrar of such Book-Entry Certificates by the Depository,
      and
      thereupon, the Securities Administrator shall execute, authenticate and deliver
      to such Certificate Owner or its designee one or more Definitive Certificates
      in
      authorized denominations and with a like aggregate principal
      amount.

     

    Subject
      to the provisions of this Section 6.02(b) governing registration of transfer
      and
      exchange, Class B-1 Certificates or Class B-2 Certificates (i) held as
      Definitive Certificates may be transferred in the form of Book-Entry
      Certificates in reliance on Rule 144A under the 1933 Act to one or more
“qualified institutional buyers” that are acquiring such Definitive Certificates
      for their own accounts or for the accounts of other “qualified institutional
      buyers” and (ii) held as Definitive Certificates by a “qualified institutional
      buyer” for its own account or for the account of another “qualified
      institutional buyer” may be exchanged for Book-Entry Certificates, in each case
      upon surrender of such Class B-1 Certificates or Class B-2 Certificates for
      registration of transfer or exchange at the offices of the Securities
      Administrator maintained for such purpose. Whenever any such Class B-1
      Certificates are so surrendered for transfer or exchange, either the Securities
      Administrator shall increase the balance of the related Book-Entry Certificates
      or the Securities Administrator shall execute, authenticate and deliver the
      Book-Entry Certificates for which such Class B-1 Certificates or Class B-2
      Certificates were transferred or exchanged, as necessary and appropriate. No
      Holder of Definitive Certificates other than a “qualified institutional buyer”
holding such Certificates for its own account or for the account of another
      “qualified institutional buyer” may exchange such Class B-1 Certificates or
      Class B-2 Certificates for Book-Entry Certificates. Further, any Certificate
      Owner of a Book-Entry Certificate other than any such “qualified institutional
      buyers” shall notify the Securities Administrator of its status as such and
      shall transfer such Book-Entry Certificate to the Securities Administrator,
      through the book-entry facilities of the Depository, whereupon, and also upon
      surrender to the Securities Administrator of such Book-Entry Certificate by
      the
      Depository, (which surrender the Securities Administrator shall use reasonable
      efforts to cause to occur), the Securities Administrator shall execute,
      authenticate and deliver to such Certificate Owner or such Certificate Owner’s
      nominee one or more Definitive Certificates in authorized denominations and
      with
      a like aggregate principal amount.

     

    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, the Trustee or
      the
      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, the Servicer or the Trustee. 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.

     

    For
      so
      long as the Supplemental Interest Trust is in existence, each beneficial owner
      of a Publicly Offered Certificate, Class B Certificate or any interest therein,
      shall be deemed to have represented, by virtue of its acquisition or holding
      of
      the Publicly Offered Certificate, Class B Certificate or interest therein,
      that
      either (i) it is not a Plan or (ii)(A) it is an accredited investor within
      the
      meaning of Prohibited Transaction Exemption 2002-41, as amended from time to
      time (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 Prohibited Transaction
      Class Exemption (“PTCE”) 84-14 (for transactions by independent “qualified
      professional asset managers”), 91-38 (for transactions by bank collective
      investment funds), 90-1 (for transactions by insurance company pooled separate
      accounts), 95-60 (for transactions by insurance company general accounts) or
      96-23 (for transactions effected by “in-house asset managers”) in the case of a
      Publicly Offered Certificate, or PTCE 95-60 in the case of a Class B-2
      Certificate.

     

    Each
      beneficial owner of a Subordinate Certificate or any interest therein that
      is
      acquired after the termination of the Supplemental Interest Trust 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) in the case of a Certificate other than a Class B-2
      Certificate, 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,
      Fitch 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.

     

    If
      any
      Certificate, or any interest therein, is acquired or held in violation of this
      section 6.02(b), the next preceding permitted beneficial owner will be treated
      as the beneficial owner of that Certificate, retroactive to the date of transfer
      to the purported beneficial owner. Any purported beneficial owner whose
      acquisition or holding of a Certificate, or interest therein, was effected
      in
      violation of this Section shall indemnify to the extent permitted by law and
      hold harmless the Depositor, the Sponsor, the Master Servicer, the Securities
      Administrator, the Servicers, the Underwriter and the Trustee from and against
      any and all liabilities, claims, costs or expenses incurred by such parties
      as a
      result of such acquisition or holding.

     

    (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 Trustee 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(c) 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 B-2)
      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(c), 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(c)
      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(c) 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(c) 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 Trust REMIC to cease to
      qualify as a REMIC and will not cause any Trust 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, 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-I Interest, the Class R-II Interest and the Class R-III Interest
      respectively, in each case that was evidenced by the Class R 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 Servicer, 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 Servicers, 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, OCWEN
      AND
      THE MASTER SERVICER

     

    Section
      7.01  Liabilities
      of the Depositor, Ocwen and the Master Servicer.

     

    Each
      of
      the Depositor, Ocwen 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, Ocwen or the Master Servicer.

     

    (a)  Each
      of
      the Depositor and Ocwen will keep in full force and effect its rights and
      franchises as a corporation or limited liability company, as applicable, under
      the laws of the state of its 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 Ocwen 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, Ocwen or the Master Servicer may be merged or consolidated, or any
      person resulting from any merger or consolidation to which the Depositor, Ocwen
      or the Master Servicer shall be a party, or any Person succeeding to the
      business of the Depositor, Ocwen or the Master Servicer shall be the successor
      of the Depositor, Ocwen 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
      by Depositor, Ocwen 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 and the termination of this Agreement.

     

    (b)  Ocwen
      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 Ocwen’s
      gross negligence in the performance of its duties under this Agreement or
      failure to service the Mortgage Loans in material compliance with the terms
      of
      this Agreement and for a material breach of any representation, warranty or
      covenant of Ocwen contained herein. Ocwen shall immediately notify the Trustee
      if a claim relating to the preceding sentence is made by a third party with
      respect to this Agreement or the Ocwen Mortgage Loans, assume (with the consent
      of the Trustee and with counsel reasonably satisfactory to the Trustee) the
      defense of any such claim and, subject to Section 7.04(e), 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 Ocwen
      shall not limit its obligations hereunder. Ocwen 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
      of
      the Depositor, Master Servicer, Securities Administrator and any Servicing
      Function Participant engaged by such party, respectively, shall indemnify and
      hold harmless the Master Servicer, the Securities Administrator and the
      Depositor, respectively, and each of its 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 under hereunder, including particularly its obligations
      to provide any Assessment of Compliance, Attestation Report, Compliance
      Statement or any information, data or materials required to be included in
      any
      1934 Act report, (b) any material misstatement or omission in any information,
      data or materials provided by such party (or, in the case of the Securities
      Administrator or Master Servicer, any material misstatement or material omission
      in (i) any Compliance Statement, Assessment of Compliance or Attestation Report
      delivered by it, or by any Servicing Function Participant engaged by it,
      pursuant to this Agreement, or (ii) any Additional Form 10-D Disclosure,
      Additional Form 10-K Disclosure or Form 8-K Disclosure concerning the Master
      Servicer or the Securities Administrator), or (c) the negligence, bad faith
      or
      willful misconduct of such indemnifying party in connection with its performance
      hereunder. If the indemnification provided for in this Section 11.03(c) is
      unavailable or insufficient to hold harmless the Master Servicer, the Securities
      Administrator or the Depositor, as the case may be, then each such party agrees
      that it shall contribute to the amount paid or payable by the Master Servicer,
      the Securities Administrator or the Depositor, as applicable, as a result of
      any
      claims, losses, damages or liabilities incurred by such party in such proportion
      as is appropriate to reflect the relative fault of the indemnified party on
      the
      one hand and the indemnifying party on the other. This indemnification shall
      survive the termination of this Agreement or the termination of any party to
      this Agreement.

     

    Section
      7.04  Limitations
      on Liability of the Depositor, the Securities Administrator, the Master
      Servicer, Ocwen and Others.

     

    Subject
      to the obligation of the Depositor and Ocwen to indemnify the Indemnified
      Persons pursuant to Section 7.03:

     

    (a)  Neither
      the Depositor, the Securities Administrator, the Master Servicer, Ocwen nor
      any
      of the directors, officers, employees or agents of the Depositor, the Securities
      Administrator, the Master Servicer and Ocwen 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, Ocwen 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, Ocwen 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, Ocwen, the
      Trustee, the Custodian and any director, officer, employee or agent of the
      Depositor, the Securities Administrator, the Master Servicer, Ocwen, 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 Ocwen, such loss, liability or
      expense related to Ocwen’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 under the Custodial Agreement,
      (ii) with respect to Ocwen, any such loss, liability or expense incurred by
      reason of Ocwen’s willful misfeasance, bad faith or gross negligence in the
      performance of its duties hereunder or (iii) with respect to the 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, Ocwen 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, Ocwen 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, Ocwen and the Master Servicer shall
      be
      entitled to be reimbursed therefor out of the Distribution Account as provided
      by Section 3.27 or Section 3.32, as applicable. 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 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 the Servicer, the
      Depositor or the Custodian.

     

    Section
      7.05  Ocwen
      Not to Resign.

     

    (a)  Ocwen
      shall not 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
      reasonably cured by Ocwen. Any determination permitting the resignation of
      Ocwen
      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 Ocwen 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 Ocwen hereunder. Ocwen 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 Ocwen’s
      responsibilities and obligations hereunder. Ocwen shall notify the Master
      Servicer and the Rating Agencies of its resignation.

     

    (b)  Except
      as
      expressly provided herein, Ocwen 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 Ocwen hereunder. The
      foregoing prohibition on assignment shall not prohibit Ocwen from designating
      a
      Subservicer as payee of any indemnification amount payable to Ocwen hereunder;
      provided, however, that as provided in Section 3.03, no Subservicer shall
      be a third-party beneficiary hereunder and the parties hereto shall not be
      required to recognize any Subservicer as an indemnitee under this
      Agreement.

     

    (c)  Notwithstanding
      anything to the contrary herein, Ocwen may pledge or assign as collateral all
      its rights, title and interest under this Agreement to a lender (the “Servicing
      Rights Lender”), provided, that:

     

    (i)  upon
      a
      Servicer Event of Default and receipt of a notice of termination by Ocwen,
      the
      Servicing Rights Lender may direct Ocwen or its designee to appoint a Successor
      Servicer pursuant to the provisions, and subject to the conditions, set forth
      in
      Section 8.02 regarding such appointment of a Successor
      Servicer;

     

    (ii)  the
      Servicing Rights Lender’s rights are subject to this Agreement; and

     

    (iii)  Ocwen
      shall remain subject to termination as servicer under this Agreement pursuant
      to
      the terms hereof.

     

    Section
      7.06  Appointment
      of Special Servicer; Termination of Ocwen.

     

    (a)  The
      Sponsor may appoint a special servicer with respect to the Ocwen Mortgage Loans.
      The Sponsor and Ocwen 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 Ocwen Mortgage Loan. Any subservicing agreement shall
      contain terms and provisions not inconsistent with this Agreement and shall
      obligate the special servicer to service such Ocwen Mortgage Loans in accordance
      with Accepted Servicing Practices. The fee payable to the special servicer
      for
      the performance of such duties and obligations will be paid from the Servicing
      Fee collected by Ocwen with respect to each such Ocwen Mortgage Loan and will
      be
      remitted to such special servicer by Ocwen. The Sponsor shall reimburse Ocwen
      for Servicing Fee shortfalls, if any, incurred as a result of the fee payable
      to
      such special servicer.

     

    (b)  If
      at any
      time the Sponsor retains or comes into possession of any servicing rights with
      respect to any of the Ocwen Mortgage Loans, the Sponsor may, at its option,
      terminate the servicing responsibilities of Ocwen hereunder with respect to
      such
      Ocwen Mortgage Loans without cause. No such termination shall become effective
      unless and until a successor to Ocwen shall have been appointed to service
      and
      administer the related Ocwen 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 Ocwen hereunder to the extent of the related
      Mortgage Loans and (v) all amounts reimbursable to Ocwen pursuant to the terms
      of this Agreement shall have been paid to Ocwen by the Successor Servicer
      appointed pursuant to the terms of this Section 7.06 or by the Sponsor
      including without limitation, all unpaid Servicing Fees accrued and unreimbursed
      Advances and Servicing Advances made by Ocwen and all out-of-pocket expenses
      of
      Ocwen incurred in connection with the transfer of servicing to such successor.
      The Sponsor shall provide a copy of the agreement executed by such successor
      to
      the Trustee and the Master 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 Ocwen and the Master Servicer.

     

    Each
      of
      the Master Servicer and Ocwen shall afford (and any Sub-Servicing Agreement
      shall provide that each Subservicer shall afford) the Depositor and the Trustee,
      upon reasonable notice, during normal business hours, access to all records
      maintained by the Master Servicer or Ocwen (and any such Subservicer) in respect
      of Ocwen’s rights and obligations hereunder and access to officers of the Master
      Servicer or Ocwen (and those of any such Subservicer) responsible for such
      obligations, and the Master Servicer shall have access to all such records
      maintained by Ocwen and any Subservicers. Upon request, each of the Master
      Servicer and Ocwen shall furnish to the Depositor and the Trustee its (and
      any
      such Subservicer’s) most recent financial statements and such other information
      relating to the Master Servicer’s or Ocwen’s capacity to perform its obligations
      under this Agreement as it possesses (and that any such Subservicer 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 Ocwen’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, Ocwen 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,
      Ocwen 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 Ocwen to comply with any
      applicable law prohibiting disclosure of information regarding the Mortgagors
      and the failure of Ocwen 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 Ocwen to collect, create,
      collate or otherwise generate any information that it does not generate in
      its
      usual course of business. Ocwen 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 Ocwen 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 Ocwen under this Agreement or exercise
      the
      rights of the Master Servicer or Ocwen under this Agreement; provided that
      neither the Master Servicer nor Ocwen 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 Ocwen and is not
      obligated to supervise the performance of the Master Servicer or Ocwen under
      this Agreement or otherwise.

     

    ARTICLE
      VIII

    DEFAULT;
      TERMINATION OF SERVICER
      AND MASTER SERVICER

     

    Section
      8.01  Events
      of Default.

     

    (a)  (I)
      In
      case
      one or more of the following events of default by Ocwen (each, an “Ocwen
      Default”) and shall occur and be continuing, that is to say:

     

    (i)  any
      failure by Ocwen to remit to the Securities Administrator any payment required
      to be made under the terms of this Agreement (other than Advances pursuant
      to
      Section 5.01) which continues unremedied for a period of two Business
      Days
      after
      the date upon which written notice of such failure, requiring the same to be
      remedied, shall have been given to Ocwen by the Master Servicer or the
      Securities Administrator or to Ocwen and the Master Servicer or the or the
      Securities Administrator by the holders of Certificates evidencing not less
      than
      twenty-five percent (25%) of the Voting Rights evidenced by the Certificates;
      provided, however, failure of Ocwen to remit any Advance required pursuant
      to
      Section 5.01 by noon on the related Distribution Date shall be a default
      hereunder without notice; or

     

    (ii)  failure
      on the part of Ocwen
      to
      duly
      observe or perform in any material respect any other of the covenants or
      agreements on the part of Ocwen 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 (30) days after
      the
      date on which written notice of such failure, requiring the same to be remedied,
      shall have been given to Ocwen by the Master Servicer or the Securities
      Administrator or to Ocwen and the Master Servicer or the Securities
      Administrator by the holders of Certificates evidencing not less than 25% of
      the
      Voting Rights evidenced by the Certificates; 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, marshaling of assets and liabilities or
      similar proceedings, or for the winding-up or liquidation of its affairs, shall
      have been entered against Ocwen and such decree or order shall have remained
      in
      force undischarged or unstayed for a period of sixty days; or

     

    (iv)  Ocwen
      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 Ocwen or of or relating
      to
      all or substantially all of its property; or

     

    (v)  Ocwen
      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)  Ocwen
      attempts to assign its right to servicing compensation hereunder (other than
      any
      payment by Ocwen to the Sponsor of any portion of the Servicing Fee payable
      to
      Ocwen as provided in a separate side letter between the Sponsor and Ocwen)
      or
      Ocwen 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

     

    (vii)  Ocwen
      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 Ocwen’s ability to perform its obligations
      hereunder;

     

    (viii)  so
      long
      as the trust is subject to Exchange Act reporting requirements, failure by
      Ocwen
      to duly perform, within the required time period, its obligations under Sections
      3.13, 3.14, 3.18 or 5.13, which default shall not be subject to notice or a
      cure
      period; or

     

    (ix)  after
      the
      trust ceases to be subject to Exchange Act reporting requirements, any failure
      by Ocwen to duly perform, within the required time period, its obligation to
      provide the annual statements of compliance, assessments 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 Ocwen by the Master Servicer; or

     

    (x)  any
      failure by Ocwen to provide, within the required time period set forth in
      Section 3.28 hereof, any required reports or data pertaining to the Ocwen
      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 Ocwen by the Master Servicer; or

     

    
      	(II)  	
              with
                respect to Wells Fargo only, an event of default by Wells Fargo under
                the
                Servicing Agreement (a “Wells Fargo Servicer Default”).
                

            

    

     

    Any
      Ocwen
      Default or Wells Fargo Servicer Default shall be referred to herein as a
“Servicer Default”.

     

    then,
      and
      in each and every such case, so long as a Servicer Default with respect to
      Ocwen
      shall not have been remedied, the Master Servicer, by notice in writing to
      Ocwen
      shall with respect to a payment default by Ocwen pursuant to
      Section 8.01(i) of this Agreement and, upon the occurrence and continuance
      of any other Servicer Default with respect to Ocwen, may, and, at the written
      direction of Certificateholders evidencing not less than twenty-five percent
      (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, as applicable and at law or equity to damages, including injunctive
      relief and specific performance, terminate all the rights and obligations of
      Ocwen under this Agreement and in and to the Ocwen Mortgage Loans and the
      proceeds thereof without compensating Ocwen for the same with respect to a
      default by Ocwen. In connection with the occurrence of a Servicer Default by
      Wells Fargo which shall not have been remedied, the Master Servicer shall notify
      the Trustee and the Trustee, by notice in writing to Wells Fargo, shall with
      respect to a payment default by Wells Fargo pursuant to the Servicing Agreement,
      and upon the occurrence and continuance of any other Servicer Default by Wells
      Fargo, 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 and
      at
      law or equity to damages, including injunctive relief and specific performance,
      terminate the rights and obligations of Wells Fargo under the Servicing
      Agreement and in and to the related Wells Fargo Mortgage Loans and the proceeds
      thereof without compensating Wells Fargo for the same with respect to a default
      by Wells Fargo. 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 or the
      Trustee, as applicable. Upon written request from the Master Servicer or the
      Trustee, as applicable, 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 or the Trustee, as applicable
      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 5.12, which default shall not
      be
      subject to notice or a cure period.

     

    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 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.

     

    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.

     

    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.

     

    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 or the Trustee, as applicable, 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 or the Trustee’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 or the Trustee, as applicable, 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
      or
      the Trustee, as applicable, 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 neither the Master Servicer
      nor the Trustee shall 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
      or
      the Trustee assumes the duties and responsibilities of the terminated Servicer
      in accordance with this Section 8.02, the Master Servicer or the Trustee,
      as applicable, 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 or the Trustee, as applicable, 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 or the
      Trustee, as applicable, 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 this Servicing
      Agreement. The Master Servicer or the Trustee, as applicable 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 or the Trustee, as applicable, 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 or the Trustee, as applicable,
      to
      correct any errors or insufficiencies in the servicing data or otherwise to
      enable the Master Servicer, the Trustee 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 or the Trustee, as applicable, 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. 

     

    Notwithstanding
      the foregoing, if an Ocwen Default occurs, Ocwen or the Servicing Rights Lender
      shall have a period of up to thirty (30) days after receipt of a notice of
      termination to appoint a Successor Servicer that satisfies the eligibility
      criteria of a Successor Servicer set forth herein, which appointment shall
      be
      subject to the consent of the Depositor, the Seller, the Master Servicer, and
      the Trustee, which consent shall not be unreasonably withheld or delayed;
      provided that such Successor Servicer agrees to fully effect the servicing
      transfer within 120 days following the termination of Ocwen and to make all
      P&I Advances that would otherwise be made by the Master Servicer under
      Section 8.01 as of the date of such appointment, and to reimburse the Master
      Servicer for any unreimbursed P&I Advances they have made and any
      reimbursable expenses that they may have incurred in connection with this
      Section 8.02. Any proceeds received in connection with the appointment of such
      Successor Servicer shall be the property of Ocwen or its designee. This 30-day
      period shall terminate immediately (i) at the close of business on the second
      Business Day of such 30-day period if (A) Ocwen was terminated because of an
      Event of Default described in Section 8.01(a)(i) for failing to make a required
      Advance pursuant to section 5.01, and (B) Ocwen shall have failed to make (or
      cause to be made) such Advance, or shall fail to reimburse (or cause to be
      reimbursed) the Master Servicer for an Advance made by the Master Servicer,
      by
      the close of business on such second Business Day, or (ii) at the close of
      business on the second Business Day following the date (if any) during such
      30-day period on which an Advance is due to be made, if Ocwen shall have failed
      to make (or caused to be made) such Advance, or Ocwen shall have failed to
      reimburse (or cause to be reimbursed) the Master Servicer for such Advance,
      by
      the close of business on such second Business Day; provided, that such 30-day
      period shall only be terminated to the extent that the Lender has received
      notice of such failure from the Master Servicer and the Lender has not cured
      or
      caused the cure of such failure within two (2) Business Days following receipt
      of notice, provided, however, that such notice requirement shall only be
      applicable to the extent that the Master Servicer has been provided with the
      written address and contact information for the Lender.

     

    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 Master Servicer
      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
      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 such 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 Ocwen if Ocwen is terminated as 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 Wells
      Fargo Servicer Default or 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 Wells Fargo Servicer Default or a Master Servicer Default
      hereunder and after the curing or waiver of all Wells Fargo Servicer Defaults
      or
      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;

     

    (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 Securities Administrator, on behalf of the
      Trustee, under the Swap Agreement at closing shall be paid by the Depositor;
      

     

    (xii)  None
      of
      the Securities Administrator, the Master Servicer, the Servicers, 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; and

     

    (xiii)  The
      permissive rights of the Trustee enumerated herein shall not be construed as
      duties.

     

    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 of this Agreement (other than
      as
      specifically set forth in Section 9.12), 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 Sections 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, the Credit Risk Manager 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 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 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 a 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 REMIC I 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,
      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/F1" by Fitch, if Fitch is
      a
      Rating Agency, or 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 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 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 the REMIC I or 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, Ocwen 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 9.13, 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 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 of 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 of 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 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
      will
      be paid first with amounts otherwise to be distributed to the Class R
      Certificateholders, and second with amounts otherwise to be distributed to
      all
      other Certificateholders in the following order of priority: first, to the
      Class
      B-2 Certificates; second, to the Class B-1 Certificates; third, to the Class
      M-9
      Certificates; fourth, to the Class M-8 Certificates; fifth, to the Class M-7
      Certificates; sixth, to the Class M-6 Certificates; seventh, to the Class M-5
      Certificates; eighth, to the Class M-4 Certificates; ninth, to the Class M-3
      Certificates; tenth, to the Class M-2 Certificates; eleventh, to the Class
      M-1
      Certificates; and twelfth, 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 Class R Certificates (and, if
      necessary, second, from the Holders of the other 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 or the Classes of 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 “Cleanup Call”), (b)
      Ocwen’s exercise of its optional right to purchase the Mortgage Loans and
      related REO Properties (the “Backup Cleanup Call”) and (c) the later of (i) the
      maturity or other liquidation (or any Advance with respect thereto) of the
      last
      Mortgage Loan remaining in the Trust Fund and the disposition of all REO
      Property and (ii) the distribution to Certificateholders of all amounts required
      to be distributed to them pursuant to this Agreement, as applicable. 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 or Backup Cleanup Call shall be exercisable at a price (the
“Termination Price”) equal to the sum of (i) 100% of the Stated Principal
      Balance of each Mortgage Loan, (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 mutually agreed upon by the Master Servicer or Ocwen
      Loan Servicing LLC, as applicable, and the Trustee, (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
      such Cleanup Call or Backup 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.

     

    The
      right
      to exercise the Backup Cleanup Call pursuant to the second paragraph hereof
      shall be exercisable if the Master Servicer fails to exercise the Cleanup Call
      and the Stated Principal Balance of all of the Mortgage Loans at the time of
      any
      such repurchase, is less than or equal to five percent (5%) 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 related Certificates at the office of the
      Securities Administrator set forth herein. If the Master Servicer or Ocwen
      Loan
      Servicing, LLC (each, a “Terminator”) elects to terminate the Trust Fund
      pursuant to Section 10.01, at least twenty (20) days prior to the date
      notice is to be mailed to the Certificateholders, the related Terminator shall
      notify the Securities Administrator and the Trustee of the date the related
      Terminator intends to terminate the Trust Fund. The related Terminator shall
      remit the related Termination Price to the Securities Administrator on behalf
      of
      the Trust Fund on the Business Day prior to the Distribution Date for such
      Optional Termination by the related Terminator.

     

    Notice
      of
      the exercise of the Cleanup Call or Backup Cleanup Call, as applicable,
      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 the 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 related Terminator shall remit to the Master
      Servicer to, deposit in the Distribution Account on the Business Day prior
      to
      the applicable Distribution Date 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 applicable Terminator the Mortgage Files
      for the remaining Mortgage Loans, 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 related Certificates, the Securities
      Administrator shall cause to be distributed to Certificateholders of each 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 affected 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 affected 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 applicable
      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 affected 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 affected Certificates shall
      not
      have been surrendered for cancellation, the related 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, (ii) the exercise by Ocwen Loan Servicing, LLC
      of
      the Backup Cleanup Call pursuant to the terms of this Agreement, or (iii) the
      final payment on or other liquidation of the last Mortgage Loan or 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 applicable Terminator (in the case of the exercise of
      the
      Cleanup Call or the Backup 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 any Certificates are outstanding:

     

    
      	
              (1)

            	
              The
                applicable Terminator (in the case of the exercise of the Cleanup
                Call or
                the Backup Cleanup Call) or the Depositor (in all other cases) shall
                establish a ninety-day liquidation period and notify the Trustee
                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 REMIC
                pursuant to Treasury Regulation Section 1.860F-1. The Master
                Servicer, Ocwen Loan Servicing, LLC 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,
                Ocwen Loan Servicing, LLC 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 applicable Terminator
                (in the
                case of the exercise of the Cleanup Call or the Backup 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
                Securities Administrator shall distribute or credit, or cause to
                be
                distributed or credited, to the Holders of the related 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), Ocwen Loan
      Servicing, LLC (in the case of the exercise of the Backup Cleanup Call) or
      the
      Depositor (in all other cases) to specify the ninety-day liquidation period
      for
      REMIC I, REMIC II and REMIC III, 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, Ocwen Loan Servicing, LLC 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, Ocwen Loan Servicing, LLC 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 any Custodial Account
      maintained by a Servicer 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); 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 servicer satisfying
      the
      Minimum Servicing Requirements.

     

    Notwithstanding
      the foregoing, without the consent of the Certificateholders, the parties hereto
      may at any time and from time to time amend this Agreement to effect any changes
      in the parties obligations as are necessary to accommodate evolving
      interpretations of the provisions of Regulation AB and 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 created hereunder as a REMIC under
      the Code or to avoid or minimize the risk of the imposition of any tax on any
      of
      REMIC pursuant to the Code that would be a claim against any of 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); 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 created hereunder 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. None of the parties
      hereto shall consent to an amendment to this Agreement for which the consent
      of
      the Swap Provider is expressly required without the consent of the Swap
      Provider, which consent shall not be unreasonably withheld.

     

    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
      WHICH SHALL GOVERN.

     

    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 and the
      Swap
      Provider, 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.

     

    (a)  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:

     

    (i)  Any
      material change or amendment to this Agreement;

     

    (ii)  The
      occurrence of any Servicer Default or Master Servicer Default that has not
      been
      cured;

     

    (iii)  The
      resignation or termination of a Servicer, the Master Servicer or the Trustee
      and
      the appointment of any successor; and

     

    (iv)  The
      final
      payment to Certificateholders.

     

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

     

    (i)
       Each
      annual statement as to compliance described in Section 4.14;
      and

     

    (ii)
       Each
      annual independent public accountants’ servicing report described in
      Section 4.15.

     

    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 Home Equity Loan, Inc., 2 World Financial Center, Building B, New York,
      New York 10281 Attention: Nomura Home Equity Loan, Inc., Home Equity Loan Trust,
      Series 2006-HE3; (ii) in the case of the Sponsor, Nomura Credit & Capital,
      Inc., 2 World Financial Center, Building B, New York, New York 10281, Attention:
      Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-HE3 or such
      other address as may be hereafter furnished to the other parties hereto by
      the
      Sponsor in writing; (iii) in the case of Ocwen, Ocwen Loan Servicing, LLC,
      1661
      Worthington Road, Suite 100, West Palm Beach, Florida 33409, Attention:
      Secretary; (iv) 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; (v) in the case of Wells Fargo Bank, National Association, as Custodian,
      24 Executive Park, Suite 100, Irvine, California 92614, (vi) in the case of
      the
      Securities Administrator, its Corporate Trust Office; (vii) 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 - NHEL 2006-HE3) and (viii) 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; (b) Moody’s
      Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention:
      Home Equity Monitoring; (c) Fitch Ratings, 1 State Street Plaza, New York,
      New
      York 10004; and (d) Dominion Bond Rating Service, Inc., 55 Broadway, Residential
      Mortgage Ratings, New York, New York 10006. 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  Third
      Party Beneficiaries.

     

    The
      Swap
      Provider is an express third party beneficiary to this Agreement, and shall
      have
      to the right to enforce the provisions of this Agreement.

     

    Section
      11.11  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 5.13 of this Agreement is to facilitate compliance by the Sponsor
      and
      the Depositor with the provisions of Regulation AB. 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
      and (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.

     

    Notwithstanding
      the foregoing, Ocwen shall be under no obligation to provide any information
      in
      addition to that required by Sections 3.13, 3.14, 3.18 and 5.13 of this
      Agreement as of the Closing Date that the Depositor deems required under
      Regulation AB if (i) Ocwen does not believe that such additional information
      is
      required under Regulation AB and (ii) Ocwen is not providing such additional
      information for its own securitizations, unless the Depositor pays all
      reasonable costs incurred by Ocwen in connection with the preparation and
      delivery of such additional information and Ocwen is given reasonable time
      to
      establish the necessary systems and procedures to produce such additional
      information.

     

    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, Ocwen, 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
                HOME EQUITY LOAN, INC.,

              as
                Depositor

            
	 	 
	
              By:

            	
              /s/
                John P. Graham

            
	
              Name:

            	
              John
                P. Graham

            
	
              Title:

            	
              Managing
                Director

            
	 
	 
	
              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

            
	 
	 
	
              OCWEN
                LOAN SERVICING, LLC,

              as
                Servicer

            
	 	 
	
              By:

            	
              /s/
                Richard Delgado

            
	
              Name:

            	
              Richard
                Delgado

            
	
              Title:

            	
              Authorized
                Representative

            
	 
	 
	
              With
                respect to Sections 3.33, 3.34, 3.35 and 3.36

              WELLS
                FARGO BANK, NATIONAL ASSOCIATION, as Credit Risk
                Manager

            
	 	 
	
              By:

            	
              /s/
                Amy Doyle

            
	
              Name:

            	Amy
              Doyle
	
              Title:

            	
              Vice
                President

            

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            

    

    

    On
      this
      ___ day of August 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 Home Equity Loan, Inc.,
      one of the entities 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 August 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., one of the entities 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 CALIFORNIA

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF 

            	
              )

            

    

    

    On
      this
      ____ day of August 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 Ocwen Loan Servicing, LLC, one
      of
      the entities 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 August 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, one of the entities 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 August
      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, one of the entities
      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]

     

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

      EXHIBIT
        A-1

      

       

      FORM
        OF CLASS [I][II]-A-[1][2][3][4] 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 THE
        PRINCIPAL PAYMENTS HEREON. 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 TRUSTEE
        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.

       

      PRIOR
        TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, ANY PERSON ACQUIRING
        A
        CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS IN SECTION 6.02(b)
        OF THE POOLING AND SERVICING AGREEMENT.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No. [__]

              	
                Pass-Through
                  Rate: Floating

              
	 	 
	
                Class
                  [I][II]-A-[1][2][3][4] Senior

              	 
	 	 
	
                Date
                  of Pooling and Servicing Agreement

                and
                  Cut-off Date: August 1, 2006

              	
                Aggregate
                  Initial Certificate Principal Balance of the Class [I][II]-A-[1][2][3][4]
                  Certificates as of the Cut-off Date:

                $

              
	 	 
	
                Trustee:
                  HSBC Bank USA, National Association

              	 
	 	 
	
                First
                  Distribution Date: September 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:

                July
                  25, 2036

              	
                CUSIP:
                  [______________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-HE3

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        [I][II]-A-[1][2][3][4] Certificates with respect to a Trust Fund consisting
        primarily of a pool of conventional one- to four-family fixed rate and
        adjustable rate mortgage loans sold by NOMURA HOME EQUITY LOAN,
        INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator 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 NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, 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 and second lien, fixed-rate and 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 NHEL.
        The Mortgage Loans were sold by Nomura Credit & Capital, Inc. (the
“Sponsor”) to NHEL. The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among NHEL, as depositor (the “Depositor”), the Sponsor,
Ocwen
        Loan Servicing, LLC, as a servicer (the “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”), 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 will equal the lesser 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, [___]% and (ii) the Net Funds Cap. 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 the
        month following the latest scheduled maturity date of any Mortgage Loan and
        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.

       

      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. The Certificates are limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund, 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.

       

      Prior
        to
        the termination of the Supplemental Interest Trust, any transferee of this
        Certificate shall be deemed to make the representations 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
        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 either 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 (i) by the Master
        Servicer only if on such Distribution Date the aggregate 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 and (ii) by Ocwen Loan Servicing,
        LLC
        only if on such Distribution Date the aggregate Stated Principal Balance
        of the
        Mortgage Loans is less than or equal to 5% 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 to occur of (i) 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: August
                  __, 2006

              	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class [I][II]-A-[1][2][3][4] 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][6][7][8][9] 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] [[,/AND] THE
        CLASS
        M-5 CERTIFICATES] [[,/AND] THE CLASS M-6 CERTIFICATES] [[,/AND] THE CLASS
        M-7
        CERTIFICATES] [AND] THE CLASS M-8 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 TRUSTEE 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][6][7][8][9] Subordinate

              	 
	 	
                 

              
	
                Date
                  of Pooling and Servicing Agreement and Cut-off Date: August 1,
                  2006

              	
                Aggregate
                  Initial Certificate Principal Balance of the Class
                  M-[1][2][3][4][5][6][7][8][9] Certificates as of the Cut-off
                  Date:

                $
                  

              
	 	 
	
                Trustee:
                  HSBC Bank USA, National Association

              	 
	 	 
	
                First
                  Distribution Date: September 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:

                July
                  25, 2036

              	
                CUSIP:
                  [__________________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-HE3

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        M-[1][2][3][4][5][6][7][8][9] Certificates with respect to a Trust Fund
        consisting primarily of a pool of conventional one- to four-family fixed
        rate
        and adjustable rate mortgage loans sold by NOMURA HOME EQUITY LOAN,
        INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator 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 NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, 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 and second lien, fixed-rate and 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 NHEL. The Mortgage Loans were sold by Nomura Credit &
Capital, Inc. (the “Sponsor”) to NHEL. The Trust Fund was created pursuant to
        the Pooling and Servicing Agreement dated as of the Cut-off Date specified
        above
        (the “Agreement”), among NHEL, as depositor (the “Depositor”), the Sponsor,
        Ocwen Loan Servicing, LLC, as a servicer (the “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”), 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 will equal the lesser 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, [___]% and (ii) the Net Funds Cap. 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 the
        month following the latest scheduled maturity date of any Mortgage Loan and
        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. The Certificates are limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund, 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
        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 either 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 (i) by the Master
        Servicer only if on such Distribution Date the aggregate 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 and (ii) by Ocwen Loan Servicing,
        LLC
        only if on such Distribution Date the aggregate Stated Principal Balance
        of the
        Mortgage Loans is less than or equal to 5% 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 to occur of (i) 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: August
                  __, 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][6][7][8][9] 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 B-[1][2] CERTIFICATE

       

      THIS
        CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES
        [AND][,] THE MEZZANINE CERTIFICATES [AND THE CLASS B-1 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 THE
        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 TRUSTEE NAMED 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) 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 TRUSTEE OF A LETTER SUBSTANTIALLY IN THE FORM PROVIDED IN
        THE
        AGREEMENT AND (B) THE RECEIPT BY THE TRUSTEE OF SUCH OTHER EVIDENCE ACCEPTABLE
        TO THE TRUSTEE 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.

       

      ANY
        TRANSFEREE OF THIS CERTIFICATE SHALL MAKE OR BE DEEMED TO MAKE THE
        REPRESENTATIONS SET FORTH IN SECTION 6.02(b) OF THE
        AGREEMENT.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No. [__]

              	
                Pass-Through
                  Rate: Floating

              
	 	 
	
                Class
                  B-[1][2] Subordinate

              	 
	 	
                 

              
	
                Date
                  of Pooling and Servicing Agreement and Cut-off Date:

                August
                  1, 2006

              	
                Aggregate
                  Initial Certificate Principal Balance of the Class B-[1][2] Certificates
                  as of the Cut-off Date:

                $
                  

              
	 	 
	
                Trustee:
                  HSBC Bank USA, National Association

              	 
	 	 
	
                First
                  Distribution Date: September 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:

                July
                  25, 2036

              	
                CUSIP:
                  [__________________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-HE3

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        B-[1][2] Certificates with respect to a Trust Fund consisting primarily of
        a
        pool of conventional one- to four-family fixed rate and adjustable rate mortgage
        loans sold by NOMURA HOME EQUITY LOAN, INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator 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 NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, 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 and second lien, fixed-rate and 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 NHEL. The Mortgage Loans were sold by Nomura Credit &
Capital, Inc. (the “Sponsor”) to NHEL. The Trust Fund was created pursuant to
        the Pooling and Servicing Agreement dated as of the Cut-off Date specified
        above
        (the “Agreement”), among NHEL, as depositor (the “Depositor”), the Sponsor,
        Ocwen Loan Servicing, LLC, as a servicer (the “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”), 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 will equal the lesser 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, [___]% and (ii) the Net Funds Cap. 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 Business Day of the calendar month 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 the month following the latest scheduled maturity date of any Mortgage
        Loan
        and 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. The Certificates are limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund, 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.

       

      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
        or the
        Securities Administrator 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 Securities
        Administrator 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.

       

      Any
        Transferee of this Certificate shall make or be deemed to make the
        representations set forth in Section 6.02(b) of the Agreement.

       

      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
        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 either 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 (i) by the Master
        Servicer only if on such Distribution Date the aggregate 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 and (ii) by Ocwen Loan Servicing,
        LLC
        only if on such Distribution Date the aggregate Stated Principal Balance
        of the
        Mortgage Loans is less than or equal to 5% 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 to occur of (i) 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:
        August __, 2006

      
        	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Authorized
                  Signatory

              

      

      

      

      

       

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class B-[1][2] 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 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 SUBORDINATE
        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) 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 TRUSTEE 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 CERTIFICATE 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:

                August
                  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: September 25, 2006

              	
                 

              
	 	 
	
                Assumed
                  Final Distribution Date:

                July
                  25, 2036

              	
                CUSIP:
                  [_____________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-HE3

       

      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 fixed rate and adjustable rate mortgage
        loans
        sold by NOMURA HOME EQUITY LOAN, INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator 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 NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, 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 and second lien, fixed-rate
        and 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 NHEL. The Mortgage Loans were sold
        by Nomura Credit & Capital, Inc. (the “Sponsor”) to NHEL. The Trust Fund was
        created pursuant to the Pooling and Servicing Agreement dated as of the Cut-off
        Date specified above (the “Agreement”), among NHEL, as depositor (the
“Depositor”), the Sponsor, Ocwen Loan Servicing, LLC, as a servicer (the
“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”), 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 the month following the latest
        scheduled maturity date of any Mortgage Loan.

       

      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.

       

      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
        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 either 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 (i) by the Master
        Servicer only if on such Distribution Date the aggregate 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 and (ii) by Ocwen Loan Servicing,
        LLC
        only if on such Distribution Date the aggregate Stated Principal Balance
        of the
        Mortgage Loans is less than or equal to 5% 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 to occur of (i) 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:
        August __, 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
        A-5

       

      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) 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 TRUSTEE 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 CERTIFICATE 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:

                August
                  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: September 25, 2006

              	 
	 	 
	
                Assumed
                  Final Distribution Date:

                July
                  25, 2036

              	
                CUSIP:
                  [________________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-HE3

       

      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 fixed rate and adjustable rate mortgage
        loans
        sold by NOMURA HOME EQUITY LOAN, INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator 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 NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, 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 and second lien, fixed-rate
        and 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 NHEL. The Mortgage Loans were sold
        by Nomura Credit & Capital, Inc. (the “Sponsor”) to NHEL. The Trust Fund was
        created pursuant to the Pooling and Servicing Agreement dated as of the Cut-off
        Date specified above (the “Agreement”), among NHEL, as depositor (the
“Depositor”), the Sponsor, Ocwen Loan Servicing, LLC (the “Servicer”), 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”), 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 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 the month following the latest scheduled maturity date
        of
        any Mortgage Loan.

       

      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.

       

      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
        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 either 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 (i) by the Master
        Servicer only if on such Distribution Date the aggregate 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 and (ii) by Ocwen Loan Servicing,
        LLC
        only if on such Distribution Date the aggregate Stated Principal Balance
        of the
        Mortgage Loans is less than or equal to 5% 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 to occur of (i) 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:
        August __, 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-6

       

      FORM
        OF CLASS R 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 CERTIFICATE 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

              	
                Percentage
                  Interest: [__]

              
	 	 
	
                Date
                  of Pooling and Servicing Agreement 

                and
                  Cut-off Date: August 1, 2006

              	 
	 	 
	
                Trustee:
                  HSBC Bank USA, National Association 

              	
                Master
                  Servicer and Securities Administrator: Wells Fargo Bank,
                  N.A.

              
	 	 
	
                First
                  Distribution Date: September 25, 2006

              	 
	 	 
	
                Assumed
                  Final Distribution Date:

                July
                  25, 2036

              	
                CUSIP:
                  [_______________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-HE3

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        R Certificates
        with respect to a Trust Fund consisting primarily of a pool of conventional
        one-
        to four-family fixed rate and adjustable rate mortgage loans sold by NOMURA
        HOME
        EQUITY LOAN, INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator 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 NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, 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 and second lien, fixed-rate and 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 NHEL.
        The Mortgage Loans were sold by Nomura Credit & Capital, Inc. (the
“Sponsor”) to NHEL. The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among NHEL, as depositor (the “Depositor”), the Sponsor, Ocwen
        Loan Servicing, LLC (the “Servicer”), 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”), 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 the month following the latest scheduled maturity date
        of
        any Mortgage Loan.

       

      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 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. The Certificates are limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund, 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
        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 either 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 (i) by the Master
        Servicer only if on such Distribution Date the aggregate 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 and (ii) by Ocwen Loan Servicing,
        LLC
        only if on such Distribution Date the aggregate Stated Principal Balance
        of the
        Mortgage Loans is less than or equal to 5% 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 to occur of (i) 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:
        August __, 2006

      
        	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Authorized
                  Signatory

              

      

      

      

      

       

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class R 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)  	
                a
                  code indicating to which Loan Group a Mortgage Loan has been assigned,
                  if
                  applicable;

              

      

       

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

              

      

       

      
        	d)  	
                the
                  type of Residential Dwelling constituting the Mortgaged
                  Property;

              

      

       

      
        	e)  	
                the
                  original months to maturity;

              

      

       

      
        	f)  	
                the
                  original date of the Mortgage Loan and the remaining months to
                  maturity
                  from the Cut-off Date, based on the original amortization
                  schedule;

              

      

       

      
        	g)  	
                the
                  Loan-to-Value Ratio or Combined Loan-to-Value Ratio, as applicable,
                  at
                  origination;

              

      

       

      
        	h)  	
                the
                  Mortgage Rate in effect immediately following the Cut-off
                  Date;

              

      

       

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

              

      

       

      
        	j)  	
                the
                  stated maturity date;

              

      

       

      
        	k)  	
                the
                  amount of the Monthly Payment at
                  origination;

              

      

       

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

              

      

       

      
        	m)  	
                the
                  last Due Date on which a Monthly Payment was actually applied to
                  the
                  unpaid Stated Principal Balance;

              

      

       

      
        	n)  	
                the
                  original principal amount of the Mortgage
                  Loan;

              

      

       

      
        	o)  	
                the
                  Stated Principal Balance of the Mortgage Loan as of the close of
                  business
                  on the Cut-off Date;

              

      

       

      
        	p)  	
                with
                  respect to each adjustable rate Mortgage Loan, the first Adjustment
                  Date;

              

      

       

      
        	q)  	
                with
                  respect to each adjustable rate Mortgage Loan, the Gross
                  Margin;

              

      

       

      
        	r)  	
                a
                  code indicating the purpose of the loan (i.e., purchase financing,
                  rate/term refinancing, cash-out
                  refinancing);

              

      

       

      
        	s)  	
                with
                  respect to each adjustable rate Mortgage Loan, the Maximum Mortgage
                  Rate
                  under the terms of the Mortgage
                  Note;

              

      

       

      
        	t)  	
                with
                  respect to each adjustable rate Mortgage Loan, the Minimum Mortgage
                  Rate
                  under the terms of the Mortgage
                  Note;

              

      

       

      
        	u)  	
                the
                  Mortgage Rate at origination;

              

      

       

      
        	v)  	
                with
                  respect to each adjustable rate Mortgage Loan, the Periodic Rate
                  Cap;

              

      

       

      
        	w)  	
                with
                  respect to each adjustable rate Mortgage Loan, the first Adjustment
                  Date
                  immediately following the Cut-off
                  Date;

              

      

       

      
        	x)  	
                with
                  respect to each adjustable rate Mortgage Loan, the
                  Index;

              

      

       

      
        	y)  	
                the
                  date on which the first Monthly Payment was due on the Mortgage
                  Loan and,
                  if such date is not consistent with the Due Date currently in effect,
                  such
                  Due Date;

              

      

       

      
        	z)  	
                a
                  code indicating whether the Mortgage Loan is an Adjustable Rate
                  Mortgage
                  Loan or a fixed rate Mortgage Loan;

              

      

       

      
        	aa)  	
                a
                  code indicating the documentation style (i.e., full, stated or
                  limited);

              

      

       

      
        	bb)  	
                a
                  code indicating if the Mortgage Loan is subject to a primary insurance
                  policy or lender paid mortgage insurance policy and the name of
                  the
                  insurer;

              

      

       

      
        	cc)  	
                the
                  Appraised Value of the Mortgaged
                  Property;

              

      

       

      
        	dd)  	
                the
                  sale price of the Mortgaged Property, if
                  applicable;

              

      

       

      
        	ee)  	
                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;

              

      

       

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

              

      

       

      
        	gg)  	
                the
                  Mortgagor’s debt to income ratio at
                  origination;

              

      

       

      
        	hh)  	
                the
                  FICO score at origination;

              

      

       

      
        	ii)  	
                the
                  applicable Servicer; and

              

      

       

      
        	jj)  	
                the
                  initial seller who sold such Mortgage Loan to the
                  Sponsor.

              

      

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT C

       

      MORTGAGE
        LOAN PURCHASE AGREEMENT

       

      This
        is a
        Mortgage Loan Purchase Agreement (this “Agreement”), dated August 31, 2006,
        between Nomura Credit & Capital, Inc., a Delaware corporation (the “Seller”)
        and Nomura Home Equity Loan, Inc., a Delaware corporation (the
“Purchaser”).

      

      Preliminary
        Statement

      

      The
        Seller intends to sell the Mortgage Loans (as hereinafter identified) 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 asset-backed certificates designated as Nomura Home Equity Loan,
        Inc.,
        Home Equity Loan Trust, Series 2006-HE3, Asset-Backed Certificates (the
“Certificates”). The Certificates will consist of nineteen (19) classes of
        certificates. The Certificates will be issued pursuant to a Pooling and
        Servicing Agreement for Series 2006-HE3, dated as of August 1, 2006 (the
        “Pooling and Servicing Agreement”), among the Purchaser, as depositor, Wells
        Fargo Bank, N.A. as master servicer and securities administrator (“Wells
        Fargo”), Ocwen Loan Servicing, LLC as a servicer (“Ocwen”), the Seller as
        sponsor, and HSBC Bank USA, National Association as trustee (the “Trustee”). The
        Purchaser will sell the Class I-A-1, Class II-A-1, Class II-A-2, Class II-A-3,
        Class II-A-4, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
        M-6,
        Class M-7, Class M-8, Class M-9, Class B-1 and Class B-2 Certificates to
        Nomura
        Securities International, Inc. (“NSII”) and Greenwich Capital Markets, Inc.
        (“Greenwich”, together with NSII, the “Underwriters”), pursuant to the Amended
        and Restated Underwriting Agreement, dated June 1, 2006, between the Purchaser
        and NSII, and the Terms Agreement, dated August 29, 2006 (collectively, the
        “Underwriting Agreement”), among the Purchaser and the Underwriters. 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 August 1, 2006 (the “Custodial Agreement”), among the Trustee, Ocwen, Wells
        Fargo as a servicer (together with Ocwen, each individually a “Servicer” and
        together, the “Servicers”) 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 August 31, 2006
        (the
“Closing Date”), certain conventional, one-to four family, fixed-rate and
        adjustable-rate mortgage loans secured by first and second liens on residential
        real properties (the “Mortgage Loans”), having an aggregate principal balance as
        of the close of business on August 1, 2006 (the “Cut-off Date”) of approximately
        $1,074,928,098 (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.

      

      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
        set 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 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 B-1, Class B-2, Class X, Class P and Class R
        certificates (collectively the “Private Certificates”) of which the Class B-1
        and Class B-2 Certificates shall be registered in the name of the Underwriters
        and the Class X, Class P and Class R certificates shall be registered solely
        in
        the name of NSII.

      

      (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, 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. 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 custodians. 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 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:

      

      1.  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.

       

      2.  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.

       

      3.  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.

       

      

      4.  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.

       

      5.  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.

       

      6.  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.

       

      7.  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.

       

      8.  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.

       

      9.  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.

       

      10.  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.

      

      11.  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).

       

      12.  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.

       

      13.  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:

      

      1.  Information
        provided to the Rating Agencies, including the loan level detail, is true
        and
        correct according to the Rating Agency requirements;

       

      2.  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;

       

      3.  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;

       

      4.  Neither
        the Seller nor the related originator of the Mortgage Loan has advanced any
        Monthly Payment required under the terms of the Mortgage Note;

       

      5.  There
        are
        no delinquent taxes, assessment liens or insurance premiums affecting the
        related Mortgaged Property;

       

      6.  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;

       

      7.  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;

       

      8.  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 transactions contemplated hereby will not involve the
        violation of any such laws;

       

      9.  The
        Mortgage has not been satisfied, cancelled, subordinated (other than with
        respect to second lien Mortgage Loans, the subordination to the first lien)
        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;

       

      10.  The
        Mortgage was recorded or was submitted for recording in accordance with all
        applicable laws and is a valid, existing and enforceable perfected first
        or
        second 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;

       

      11.  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;

       

      12.  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
        (other than with respect to second lien Mortgage Loans, the subordination
        to the
        first 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;

       

      13.  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;

       

      14.  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;

       

      15.  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;

       

      16.  Except
        with respect to approximately 15.94% of the Mortgage Loans by aggregate
        principal balance as of the Cut-off Date, which are balloon loans and
        approximately 19.54% 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 and no Mortgage Loan permits negative amortization;

       

      17.  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;

       

      18.  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;

       

      19.  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;

       

      20.  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;

       

      21.  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;

       

      22.  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;

       

      23.  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;

       

      24.  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;

       

      25.  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;

       

      26.  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;

       

      27.  No
        Mortgagor has notified the Seller of any relief requested or allowed under
        the
        Servicemembers Civil Relief Act;

       

      28.  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;

       

      29.  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;

       

      30.  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;

       

      31.  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;

       

      32.  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;

       

      33.  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);

       

      34.  Each
        Mortgage Loan is directly secured by a first or second 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;

       

      35.  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; 

       

      36.  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;

       

      37.  With
        respect to each Group I Mortgage Loan, no Mortgagor obtained a prepaid
        single-premium credit-life, credit-disability, credit unemployment or credit
        property insurance policy in connection with the origination of such Group
        I
        Mortgage Loan;

       

      

       

      38.  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;

       

      39.  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 federal, state 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);

       

      40.  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;

       

      41.  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;

       

      42.  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;

       

      43.  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;

       

      44.  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;

       

      45.  With
        respect to any Group I Mortgage Loan originated on or after August 1, 2004,
        neither the related Mortgage nor the related Mortgage Note requires the
        Mortgagor to submit to arbitration to resolve any dispute arising out of
        or
        relating in any way to the Mortgage Loan transaction;

       

      46.  With
        respect to the Group I Mortgage Loans, the related Mortgage Loan’s Mortgagor was
        not encouraged or required to select a mortgage loan product offered by such
        Mortgage Loan’s originator which is a higher cost product designed for less
        creditworthy borrowers, taking into account such facts as, without limitation,
        the Mortgage Loan’s requirements and the Mortgagor’s credit history, income,
        assets and liabilities and any such Mortgagor who sought financing through
        such
        originator’s higher-priced lending channel, the Mortgagor was directed towards
        or offered the such originator’s standard mortgage line if such Mortgagor
        qualified for one of the standard products;

       

      47.  With
        respect to the Group I Mortgage Loans, the methodology used in underwriting
        the
        extension of credit for each Mortgage Loan did not rely solely on the extent
        of
        the Mortgagor’s equity in the collateral as the principal determining factor in
        approving such extension of credit. The methodology employed objective criteria
        such as the Mortgagor’s income, assets or liabilities, to the proposed mortgage
        payment and, based on such methodology, the Group I Mortgage Loan’s originator
        made a reasonable determination that at the time of origination the Mortgagor
        had the ability to make timely payments on the Mortgage Loan;;

       

      48.  With
        respect to Group I Mortgage Loans, no Mortgagor was charged “points and fees” in
        an amount greater than (a) $1,000 or (b) 5% of the principal amount of such
        Group I Mortgage Loan, whichever is greater. For purposes of this
        representation, “points and fees” (x) include origination, underwriting, broker
        and finder’s fees and charges that the lender imposed as a condition of making
        the Mortgage Loan, whether they are paid to the lender or a third party;
        and (y)
        exclude bona fide discount points, fees paid for actual services rendered
        in
        connection with the origination of the mortgage (such as attorneys’ fees,
        notaries fees and fees paid for property appraisals, credit reports, surveys,
        title examinations and extracts, flood and tax certifications, and home
        inspections); the cost of mortgage insurance or credit-risk price adjustments;
        the costs of title, hazard, and flood insurance policies; state and local
        transfer taxes or fees; escrow deposits for the future payment of taxes and
        insurance premiums; and other miscellaneous fees and charges, which
        miscellaneous fees and charges, in total, do not exceed 0.25 percent of the
        loan
        amount;

       

      49.  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 Mortgage Loan has been disclosed in writing to the Mortgagor in accordance
        with applicable state and federal law and regulation; 

       

      50.  No
        Mortgage Loan originated on or after October 1, 2002 through March 6, 2003
        is
        governed by the Georgia Fair Lending Act;

       

      51.  The
        information set forth in the applicable part of the Prepayment Penalty Schedule
        relating to the existence of Prepayment Loan 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
        penalty is permissible and enforceable in accordance with its terms upon
        the
        mortgagor’s full and voluntary principal prepayment under applicable 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;

       

      52.  No
        Mortgage Loan contains a provision whereby the Mortgagor can convert an
        Adjustable Rate Mortgage Loan into a Fixed Rate Mortgage Loan;

       

      53.  With
        respect to any Mortgage Loan that is secured by a second lien on the related
        Mortgaged Property, either (i) no consent for the Mortgage Loan is required
        by
        the holder of any related senior lien or (ii) such consent has been obtained
        and
        is contained in the Mortgage File; 

       

      54.  With
        respect to a Mortgage Loan which is a second lien, as of the date hereof,
        the
        Seller has not received a notice of default of a senior lien on the related
        Mortgaged Property which has not been cured;

       

      55.  With
        respect to any Group I Mortgage Loan that contains a provision permitting
        imposition of a penalty upon a prepayment prior to maturity: (i) the Mortgage
        Loan provides some benefit to the Mortgagor (e.g. a rate or fee reduction)
        in
        exchange for accepting such prepayment penalty, (ii) such Mortgage Loan’s
        originator had a written policy of offering the Mortgagor, or requiring
        third-party brokers to offer the Mortgagor the option of obtaining a mortgage
        loan that did not require payment of such a prepayment penalty, (iii) the
        prepayment penalty was adequately disclosed to the Mortgagor pursuant to
        applicable state and federal law, (iv) no Group I Mortgage Loan originated
        on or
        after October 1, 2002 will provide for a prepayment penalty for a term in
        excess
        of three years and any Group I Mortgage Loan originated prior to such date
        will
        not provide for prepayment penalties for a term in excess of five years;
        in each
        case unless such Mortgage Loan was modified to reduce the prepayment period
        to
        no more than three years from the date of the Mortgage Note and the Mortgagor
        was notified in writing of such reduction in prepayment period, and (v) such
        prepayment penalty shall not be imposed in any instance where the mortgage
        debt
        is accelerated or paid off in connection with the workout of a delinquent
        Group
        I Mortgage Loan due to the Mortgagor’s default notwithstanding that the terms of
        the Group I Mortgage Loan or state or federal law might permit the imposition
        of
        such penalty;

       

      56.  The
        Servicer for each Group I Mortgage Loan has fully furnished, in accordance
        with
        the Fair Credit Reporting Act and its implementing regulations, accurate
        and
        complete information (i.e., favorable and unfavorable) on its borrower credit
        files to Equifax, Experian, and Trans Union Credit Information Company (three
        of
        the credit repositories), on a monthly basis;

       

      57.  With
        respect to any Group I Mortgage Loan, the related residential dwelling is
        not a
        manufactured housing unit;

       

      58.  The
        original principal balance of each Group I Mortgage Loan which is secured
        by a
        first lien on the related Mortgaged Property is within Freddie Mac’s dollar
        amount limits for conforming one-to-four family mortgage loans;

       

      59.  With
        respect to Group I Mortgage Loans, no Mortgage Loan originated on or after
        January 1, 2005, which is a “high cost home loan” as defined under the Indiana
        Home Loan Practices Act (I.C. 24-9);

       

      60.  With
        respect to a Group I Mortgage Loan which is secured by a second lien, (a)
        such
        Mortgage Loan is secured by a one- to four-family residence that is the
        principal residence of the Mortgagor, (b) the origination amount Mortgage
        Loan
        did not exceed one-half of the one-unit limitation set forth by Freddie Mac
        for
        first lien mortgage loans, and (c) the original principal balance for the
        first
        lien plus the original principal balance of the second lien Mortgage Loan
        do not
        exceed Freddie Mac’s applicable loan limits for first lien mortgage loans for
        properties of the same type as the related Mortgaged Property; and

       

      61.  No
        Group
        I Mortgage Loan was originated more than one year prior to the Closing
        Date.

       

      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. Notwithstanding anything to the contrary
        contained herein, any breach of a representation or warranty contained in
        clauses (viii), (xxxvii), (xxxix), (xliv), (xlv), (xlvi), (xlvii), (xlviii),
        (l), (lv), (lvi), (lvii), (lviii), (lix), (lx) and/or (lxi)of Section 8 above,
        shall be automatically deemed to affect materially and adversely the interests
        of the Purchaser or the Purchaser’s assignee, transferee or designee.

      

      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 8(lii) 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 a 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
        (NHEL
        2006-HE3), 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:______________________________________

      Name: Timothy
        P.F. Crowley 

      Title: Vice
        President

      

      

      NOMURA
        HOME EQUITY LOAN, INC.

      

      

      

      By:______________________________________

      Name: 
        John P.
        Graham

      Title: 
        Managing
        Director

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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 such 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 such 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 August 31,
        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 Home Equity
                  Loan,
                  Inc., Home Equity Loan Trust, Series 2006-HE3 Asset-Backed Certificates,
                  Class R Certificates (the “Class R Certificates”), on behalf of whom I
                  make this affidavit and agreement. Capitalized terms used but not
                  defined
                  herein have the respective meanings assigned thereto in the Pooling
                  and
                  Servicing Agreement pursuant to which the Class R Certificates
                  were
                  issued.

              

      

       

      
        	 	
                2.

              	
                The
                  Investor (i) is and will be a “Permitted Transferee” as of
                  ____________________. ____ and (ii) is acquiring the Class R 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 Certificates to disqualified organizations under the Internal
                  Revenue Code of 1986 that applies to all transfers of the Class
                  R
                  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 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 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 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 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 Certificates and the provisions of Section 6.02(d) of the Pooling
                  and
                  Servicing Agreement under which the Class R 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(d)); 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 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
                  Certificates, have sufficient assets to pay any taxes owed by the
                  holder
                  of such Class R Certificates, and hereby represents to and for
                  the benefit
                  of the person from whom it acquired the Class R Certificates that
                  the
                  Investor intends to pay taxes associated with holding such Class
                  R
                  Certificates as they become due, fully understanding that it may
                  incur tax
                  liabilities in excess of any cash flows generated by the Class
                  R
                  Certificates.

              

      

       

      
        	 	
                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
                  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 Certificates with the intent
                  to
                  transfer the Class R Certificates to any person or entity that
                  will not
                  have sufficient assets to pay any taxes owed by the holder of such
                  Class R
                  Certificates, or that may become insolvent or subject to a bankruptcy
                  proceeding, for so long as the Class R Certificates remain
                  outstanding.

              

      

       

      
        	 	
                14.

              	
                The
                  Investor will, in connection with any transfer that it makes of
                  the Class
                  R Certificates, obtain from its transferee the representations
                  required by
                  Section 6.02(d) of the Pooling and Servicing Agreement under which
                  the
                  Class R 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 Certificates, deliver to the Securities Administrator an affidavit,
                  which represents and warrants that it is not transferring the Class
                  R
                  Certificates to impede the assessment or collection of any tax
                  and that it
                  has no actual knowledge that the proposed transferee: (i) has insufficient
                  assets to pay any taxes owed by such transferee as holder of the
                  Class R
                  Certificates; (ii) may become insolvent or subject to a bankruptcy
                  proceeding for so long as the Class R Certificates remains outstanding;
                  and (iii) is not a “Permitted
                  Transferee”.

              

      

       

      
        	 	
                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 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 Certificate. In connection with any transfer of the Class
                  R
                  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 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 B-2. 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 August 1, 2006, among Nomura
        Home Equity Loan, Inc., Nomura Credit & Capital, Inc., Ocwen Loan Servicing,
        LLC, 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:

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        E

       

      FORM
        OF
        TRANSFEROR CERTIFICATE

       

      ______________,
        2006

       

      Nomura
        Home Equity Loan, Inc.

      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 Home Equity Loan, Inc., Home Equity Loan Trust, Series
        2006-HE3

       

      
        	
                Re:

              	
                Nomura
                  Home Equity Loan, Inc. 

                Asset-Backed
                  Certificates, Series 2006-HE3, Class
                  [B-1][B-2][X][P][R]

              

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with the sale by ___________ (the “Sponsor”) to ________ (the
“Purchaser”) of $_________ Initial Certificate Principal Balance of Asset-Backed
        Certificates, Series 2006-HE3, Class _____ (the “Certificates”), issued pursuant
        to the Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”),
        dated as of August 1, 2006, among Nomura Home Equity Loan, Inc., as depositor
        (the “Depositor”), Nomura Credit & Capital, Inc., as sponsor, Ocwen
        Loan Servicing, LLC, as a servicer (the “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
        Home Equity Loan, Inc.

      2
        World
        Financial Center

      New
        York,
        New York 10281

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series
        2006-HE3

       

      
        	
                Re:

              	
                Nomura
                  Home Equity Loan, Inc., Home Equity Loan Trust, Asset-Backed Certificates,
                  Series 2006-HE3

              

      

       

      Ladies
        and Gentlemen:

       

      _______________
        (the “Purchaser”) intends to purchase from ____________ (the “Sponsor”)
        $_________ Initial Certificate Principal Balance of Asset-Backed Certificates,
        Series 2006-HE3, Class [B-1][B-2][X][P][R] (the “Certificates”), issued pursuant
        to the Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”),
        dated as of August 1, 2006, among Nomura Home Equity Loan, Inc., as depositor
        (the “Depositor”), Nomura Credit & Capital, Inc., as sponsor, Ocwen Loan
        Servicing, LLC, as a servicer (the “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
        Home Equity Loan, Inc.

      2
        World
        Financial Center

      New
        York,
        New York 10281

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

       

      
        	
                Re:

              	
                Nomura
                  Home Equity Loan, Inc., Home Equity Loan Trust, Asset-Backed Certificates,
                  Series 2006-HE3 (the “Certificates”), 

                including
                  the Class [B-1][B-2][X][P][R] 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 B Certificate, are making or are deemed to make the representations
                  set forth in Section 6.02(b) of the Agreement, or (iii) 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] 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.

                 

              
	 	
                [FOR
                  CLASS B-1 CERTIFICATES] ANY TRANSFEREE OF THIS CERTIFICATE SHALL
                  MAKE OR
                  BE DEEMED TO MAKE THE REPRESENTATIONS SET FORTH IN SECTION 6.02(b)
                  OF THE
                  AGREEMENT.

                 

              
	 	
                [FOR
                  CLASS B-2, CLASS X, CLASS P AND CLASS R CERTIFICATES] 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 August 1, 2006, between Nomura Home
        Equity
        Loan, Inc., as depositor, Nomura Credit & Capital, Inc., as sponsor, Ocwen
        Loan Servicing, LLC, as a servicer (the “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 Trustee 

      Old
        Annapolis Road

      Columbia,
        Maryland 21045

      Fax:
        (410) 715-2380

      E-mail:
        cts.sec.notifications@wellsfargo.com

       

      Attn: Corporate
        Trust Services - Nomura Home Equity Loan, Inc., Home Equity Loan Trust,
 Asset-Backed
        Certificates, Series 2006-HE3 - 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 August 1, 2006, among the Purchaser as depositor, Nomura
        Credit & Capital, Inc. as sponsor, Ocwen
        Loan Servicing, LLC, as a servicer (“Ocwen”), 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

       

      Prepayment
        Charge Schedule

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        L

       

      RELEVANT
        SERVICING CRITERIA

      

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      

      Assessments
        of Compliance and Attestation Reports Servicing Criteria1 

      

      
        	
                Reg.
                  AB Item 1122(d) Servicing Criteria

              	
                Depositor

              	
                Seller

              	
                Servicer

              	
                Trustee

              	
                Custodian

              	
                Wells
                  Fargo2 

              
	
                (1) General
                  Servicing Considerations

              	 	 	 	 	 	 
	
                (i) monitoring
                  performance or other triggers and events of default

              	 	 	
                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

              
	
                (ii) wire
                  transfers to investors by authorized personnel

              	 	 	
                X

              	 	 	
                X

              
	
                (iii) advances
                  or guarantees made, reviewed and approved as required

              	 	 	
                X

              	 	 	
                X

              
	
                (iv) accounts
                  maintained as required

              	 	 	
                X

              	 	 	
                X

              
	
                (v) accounts
                  at federally insured depository institutions

              	 	 	
                X

              	 	 	
                X

              
	
                (vi) unissued
                  checks safeguarded

              	 	 	
                X

              	 	 	
                X

              
	
                (vii) monthly
                  reconciliations of accounts

              	 	 	
                X

              	 	 	
                X

              
	
                (3) Investor
                  Remittances and Reporting

              	 	 	 	 	 	 
	
                (i) investor
                  reports

              	 	 	
                X

              	 	 	
                X

              
	
                (ii) remittances

              	 	 	
                X

              	 	 	
                X

              
	
                (iii) proper
                  posting of distributions

              	 	 	
                X

              	 	 	
                X

              
	
                (iv) reconciliation
                  of remittances and payment statements

              	 	 	
                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

              
	
                (xv) maintenance
                  of external credit enhancement or other support

              	
                X

              	
                X

              	 	 	 	
                X

              

      

      

      

      

        

        
          1
             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.

        

        
          2
             Wells Fargo in its capacity as Paying Agent, Master Servicer and
            Securities Administrator.

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      EXHIBIT
        M

       

      FORM
        OF
        BACK-UP CERTIFICATION

       

      Re: __________
        (the “Trust”)

       

       

      Asset-Backed
        Certificates, Series 2006-HE3

       

      I,
        [identify the certifying individual], certify to Nomura Home Equity Loan,
        Inc.
        (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 August 1,
        2006, among Nomura Home Equity Loan, Inc., Nomura Credit & Capital, Inc.,
        Ocwen Loan Servicing, LLC, Wells Fargo Bank, N.A. 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 5.12. 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 “5.07 statement” are required to be
        included in the periodic Distribution Date statement under Section 5.07,
        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 5.07 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 sknown 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 sknown 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/Trustee

              
	
                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

       

       

      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 

              
	
                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 

              

      

      

       

      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
                  as amended (Mar. 7, 2003 - current) 

              	
                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                  seq.
                  

                Effective
                  for loans closed on or after March 7, 2003 

              	
                High
                  Cost Home Loan 

              
	
                HOEPA
                  Section 32 

              	
                Home
                  Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R.
                  §§ 226.32 and 226.34 

                Effective
                  October 1, 1995, amendments October 1, 2002 

              	
                High
                  Cost Loan 

              
	
                Illinois
                  

              	
                High
                  Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et
                  seq.
                  

                Effective
                  January 1, 2004 (prior to this date, regulations under Residential
                  Mortgage License Act effective from May 14, 2001) 

              	
                High
                  Risk Home Loan 

              
	
                Kansas
                  

              	
                Consumer
                  Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et
                  seq.
                  

                Sections
                  16a-1-301 and 16a-3-207 became effective April 14, 1999; Section
                  16a-3-308a became effective July 1, 1999 

              	
                High
                  Loan to Value Consumer Loan (id.
                  §
                  16a-3-207) and; 

              
	
                High
                  APR Consumer Loan (id.
                  §
                  16a-3-308a) 

              
	
                Kentucky
                  

              	
                2003
                  KY H.B. 287 - High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100
                  et
                  seq.
                  

                Effective
                  June 24, 2003 

              	
                High
                  Cost Home Loan 

              
	
                Maine
                  

              	
                Truth
                  in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et
                  seq.
                  

                Effective
                  September 29, 1995 and as amended from time to time 

              	
                High
                  Rate High Fee Mortgage 

              
	
                Massachusetts
                  

              	
                Part
                  40 and Part 32, 209 C.M.R. §§ 32.00 et
                  seq.
                  and 209 C.M.R. §§ 40.01 et
                  seq.
                  

                Effective
                  March 22, 2001 and amended from time to time

              	
                High
                  Cost Home Loan 

              

      

      

      Standard
        & Poor’s High Cost Loan Categorization

       

      
        	
                 State/Jurisdiction

              	
                 Name
                  of Anti-Predatory Lending Law/Effective Date

              	
                 Category
                  under Applicable Anti-Predatory Lending Law

              
	
                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 

              
	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
        P

       

      

      INTEREST
        RATE SWAP AGREEMENT

      

      

      SWISS
        RE FINANCIAL PRODUCTS CORPORATION

      55
        East
        52nd
        Street

      New
        York,
        New York 10055

      Fax:
        (212) 317-5335/Phone: (212) 317-5161/5433

      

      31
        August
        2006

      

      HSBC
        Bank USA, National Association, not individually, but solely as

      trustee
        on behalf of the Supplemental Interest Trust with respect to

      Nomura
        Home Equity Loan, Inc., Home Equity Loan Trust, Series 

      2006-HE3,
        Asset-Backed Certificates, Series 2006-HE3

      

      Our
        Reference Number: 10496344

      

      

      

      Dear
        Sir/Madam

      

      The
        purpose of this letter agreement (this "Confirmation") is to confirm the
        terms
        and conditions of the Transaction entered into between us on the Trade Date
        specified below (the “Transaction"). This Confirmation constitutes a
        "Confirmation" as referred to in the Agreement specified below.

      

      In
        this
        Confirmation "Party A" means Swiss Re Financial Products Corporation and
        "Counterparty" means HSBC Bank USA, National Association, not individually,
        but
        solely as Trustee on behalf of the Supplemental Interest Trust with respect
        to
        Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-HE3,
        Asset-Backed Certificates, Series 2006-HE3.

      

      1.          
         The
        definitions and provisions contained in the 2000 ISDA Definitions (as published
        by the International Swaps and Derivatives Association, Inc.) are incorporated
        into this Confirmation. In the event of any inconsistency between those
        definitions and provisions and this Confirmation, this Confirmation will
        govern.
        References herein to a "Transaction" shall be deemed to be references to
        a "Swap
        Transaction" for the purposes of the 2000 ISDA Definitions.

      

      
        	 	
                This
                  Confirmation supplements, forms part of, and is subject to, the
                  1992 ISDA
                  Master Agreement dated as of 28 July 2006 as amended and supplemented
                  from
                  time to time (the "Agreement"), between you and us. All provisions
                  contained in the Agreement govern this Confirmation except as expressly
                  modified below. For the avoidance of doubt, the Transaction described
                  herein shall be the sole Transaction governed by such
                  Agreement.

              

      

       

      
        	 	
                Party
                  A represents that it has entered into this Transaction in reliance
                  upon
                  such tax, accounting, regulatory, legal, and financial advice as
                  it deems
                  necessary and not upon any view expressed by the other, and Counterparty
                  represents that it has been directed to enter into this
                  Transaction.

              

      

      

      
        	
                2.

              	
                The
                  terms of the particular Transaction to which this Confirmation
                  relates are
                  as follows:

              

      

      

      Notional
        Amount:                               
 For
        each
        Calculation Period, the lesser of (i) the aggregate Certificate Principal
        Balance of the Senior Certificates and the Subordinate Certificates immediately
        preceding the related Distribution Date and (ii) the Notional Amount for
        such
        Calculation Period as set forth in Schedule A attached hereto.

      

      Trade
        Date:                                            
 August
        9,
        2006

      

      Effective
        Date:                                         August
        31, 2006

       

      
        	 	 	
                Termination
                  Date:

              	
                August
                  25, 2011; subject to adjustment in accordance with the Following
                  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:                                   
 Counterparty 

       

      Fixed
        Rate Payer

      
        	 	 	
                Period
                  End Dates:

              	
                The
                  25th day of each month, commencing on September 25, 2006, with
                  No
                  Adjustment.

              

      

      

      Fixed
        Rate Payer

      
        	 	 	
                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. The Fixed Rate Payer Payment Date
                  shall be
                  one Business Day preceding each Fixed Rate Payer Period End Date.
                  

              

      

      

      Fixed
        Rate                                               
 5.375
        per
        cent

       

      Fixed
        Rate

      Day
        Count
        Fraction:                             
 30/360

      

      Floating
        Amounts:

      

      Floating
        Rate
        Payer:                              
 Party
        A   

      

       

      Floating
        Rate Payer

      
        	 	 	
                Payment
                  Dates:

              	
                The
                  25th day of each month, commencing on September 25, 2006, subject
                  to
                  adjustment in accordance with the Following Business Day
                  Convention.

              

      

      Floating
        Rate Payer

      
        	 	 	
                Payment
                  Dates:

              	
                Early
                  Payment shall be applicable. The Floating Rate Payer Payment Date
                  shall be
                  one Business Day preceding each Floating Rate Payer Period End
                  Date.
                  

              

      

      

      

      Floating
        Rate
        Option:                           
 USD-LIBOR-BBA

      

      Designated
        Maturity:                           
 1
        month

      

      Floating
        Rate

      Day
        Count
        Fraction:                             
 Actual/360

      

      
        	 	 	
                Reset
                  Dates:

              	
                The
                  first day of each Calculation
                  Period

              

      

      

      Compounding:                                       
         Inapplicable

      

      
        	 	
                Additional
                  Payment

              	
                On
                  the Effective Date, Party A will make a payment to Counterparty
                  of USD
                  $80,000.

              

      

      

      Calculation
        Agent:                                                
 Party
        A

      

      Business
        Days:                                                      
 New
        York

       

      Account
        Details:

      

      Payments
        to Party
        A:                            
 JPMorgan
        Chase Bank

      SWIFT:
        CHASUS33

      Account
        of: Swiss Re Financial Products

      Account
        No.: 066-911184

      ABA#
        021000021

      

      Payments
        to
        Counterparty:                  
 Wells
        Fargo Bank, N.A.

      ABA#
        121-000-248

      Acct#
        3970771416

      Acct.
        Name: SAS Clearing

      FFC:
        NHEL
        2006-HE3, Supplemental Interest Trust Account, Account # 50943201

      

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SCHEDULE
        A to
        the
        Confirmation dated as of August 31, 2006 

      Re:
        Reference Number 10496344

      

      Between
        Swiss Re Financial Products Corporation and HSBC Bank USA, National Association,
        not individually, but solely as trustee on behalf of the Supplemental Interest
        Trust with respect to Nomura
        Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-HE3, Asset-Backed
        Certificates, Series 2006-HE3.

      

      Amortization
        Schedule, Floating
        Rate Payer Period End Dates shall be subject to adjustment in accordance
        with
        the Following Business Day Convention and Fixed Rate Payer Period End Dates
        will
        use No Adjustment.

       

      
        	
                From
                  and including:

              	
                To
                  but excluding:

              	
                Notional
                  Amount (USD):

              
	
                Effective
                  Date

              	
                9/25/2006

              	
                1,043,211,000.00

              
	
                9/25/2006

              	
                10/25/2006

              	
                1,026,517,000.00

              
	
                10/25/2006

              	
                11/25/2006

              	
                1,008,164,000.00

              
	
                11/25/2006

              	
                12/25/2006

              	
                  
                  988,213,000.00

              
	
                12/25/2006

              	
                1/25/2007

              	
                  
                  966,729,000.00

              
	
                1/25/2007

              	
                2/25/2007

              	
                  
                  943,788,000.00

              
	
                2/25/2007

              	
                3/25/2007

              	
                  
                  919,490,000.00

              
	
                3/25/2007

              	
                4/25/2007

              	
                  
                  893,935,000.00

              
	
                4/25/2007

              	
                5/25/2007

              	
                  
                  867,728,000.00

              
	
                5/25/2007

              	
                6/25/2007

              	
                  
                  841,973,000.00

              
	
                6/25/2007

              	
                7/25/2007

              	
                  
                  816,954,000.00

              
	
                7/25/2007

              	
                8/25/2007

              	
                  
                  792,652,000.00

              
	
                8/25/2007

              	
                9/25/2007

              	
                  
                  769,048,000.00

              
	
                9/25/2007

              	
                10/25/2007

              	
                  
                  746,120,000.00

              
	
                10/25/2007

              	
                11/25/2007

              	
                  
                  723,849,000.00

              
	
                11/25/2007

              	
                12/25/2007

              	
                  
                  702,169,000.00

              
	
                12/25/2007

              	
                1/25/2008

              	
                  
                  681,042,000.00

              
	
                1/25/2008

              	
                2/25/2008

              	
                  
                  660,409,000.00

              
	
                2/25/2008

              	
                3/25/2008

              	
                  
                  640,301,000.00

              
	
                3/25/2008

              	
                4/25/2008

              	
                  
                  614,814,000.00

              
	
                4/25/2008

              	
                5/25/2008

              	
                  
                  204,240,000.00

              
	
                5/25/2008

              	
                6/25/2008

              	
                  
                  196,527,000.00

              
	
                6/25/2008

              	
                7/25/2008

              	
                  
                  189,182,000.00

              
	
                7/25/2008

              	
                8/25/2008

              	
                  
                  182,187,000.00

              
	
                8/25/2008

              	
                9/25/2008

              	
                  
                  175,621,000.00

              
	
                9/25/2008

              	
                10/25/2008

              	
                  
                  169,743,000.00

              
	
                10/25/2008

              	
                11/25/2008

              	
                  
                  165,024,000.00

              
	
                11/25/2008

              	
                12/25/2008

              	
                  
                  160,445,000.00

              
	
                12/25/2008

              	
                1/25/2009

              	
                  
                  155,996,000.00

              
	
                1/25/2009

              	
                2/25/2009

              	
                  
                  151,674,000.00

              
	
                2/25/2009

              	
                3/25/2009

              	
                  
                  147,475,000.00

              
	
                3/25/2009

              	
                4/25/2009

              	
                  
                  143,394,000.00

              
	
                4/25/2009

              	
                5/25/2009

              	
                  
                  106,306,000.00

              
	
                5/25/2009

              	
                6/25/2009

              	
                  
                  103,639,000.00

              
	
                6/25/2009

              	
                7/25/2009

              	
                  
                  101,039,000.00

              
	
                7/25/2009

              	
                8/25/2009

              	
                    
                  98,505,000.00

              
	
                8/25/2009

              	
                9/25/2009

              	
                    
                  96,034,000.00

              
	
                9/25/2009

              	
                10/25/2009

              	
                    
                  93,625,000.00

              
	
                10/25/2009

              	
                11/25/2009

              	
                    
                  91,276,000.00

              
	
                11/25/2009

              	
                12/25/2009

              	
                    
                  88,987,000.00

              
	
                12/25/2009

              	
                1/25/2010

              	
                    
                  86,754,000.00

              
	
                1/25/2010

              	
                2/25/2010

              	
                    
                  84,578,000.00

              
	
                2/25/2010

              	
                3/25/2010

              	
                    
                  82,456,000.00

              
	
                3/25/2010

              	
                4/25/2010

              	
                    
                  80,387,000.00

              
	
                4/25/2010

              	
                5/25/2010

              	
                    
                  78,370,000.00

              
	
                5/25/2010

              	
                6/25/2010

              	
                    
                  76,403,000.00

              
	
                6/25/2010

              	
                7/25/2010

              	
                    
                  74,486,000.00

              
	
                7/25/2010

              	
                8/25/2010

              	
                    
                  72,616,000.00

              
	
                8/25/2010

              	
                9/25/2010

              	
                    
                  70,794,000.00

              
	
                9/25/2010

              	
                10/25/2010

              	
                    
                  69,017,000.00

              
	
                10/25/2010

              	
                11/25/2010

              	
                    
                  67,284,000.00

              
	
                11/25/2010

              	
                12/25/2010

              	
                    
                  65,595,000.00

              
	
                12/25/2010

              	
                1/25/2011

              	
                    
                  63,948,000.00

              
	
                1/25/2011

              	
                2/25/2011

              	
                    
                  62,342,000.00

              
	
                2/25/2011

              	
                3/25/2011

              	
                    
                  60,777,000.00

              
	
                3/25/2011

              	
                4/25/2011

              	
                    
                  59,250,000.00

              
	
                4/25/2011

              	
                5/25/2011

              	
                    
                  55,551,000.00

              
	
                5/25/2011

              	
                6/25/2011

              	
                    
                  54,176,000.00

              
	
                6/25/2011

              	
                7/25/2011

              	
                    
                  52,835,000.00

              
	
                7/25/2011

              	
                Termination
                  Date

              	
                    
                  51,527,000.00

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Please
        confirm that the foregoing correctly sets forth the terms of our agreement
        by
        executing the copy of this Confirmation enclosed for that purpose and returning
        it to us.

      

      
        	
                Swiss
                  Re Financial Products Corporation

              	 	
                Accepted
                  and confirmed as of the date first written:

                 

                HSBC
                  Bank USA, National Association, not individually, 

                but
                  solely as trustee on behalf of the Supplemental Interest
                  

                Trust
                  with respect to Nomura Home Equity Loan, Inc., Home 

                Equity
                  Loan Trust, Series 2006-HE3, Asset-Backed 

                Certificates,
                  Series 2006-HE3

                 

              
	
                By:
                  _______________________________

              	 	
                By:_________________________________

              
	
                Name:
                  ____________________________

              	 	
                Name:_______________________________

              	 
	
                Title:
                  _____________________________

              	 	
                Title:________________________________

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (Multicurrency—Cross
        Border)

      ISDA®

      International
        Swap and Derivatives Association, Inc.

       

      MASTER
        AGREEMENT

      

      

      dated
        as
        of August 31, 2006

      

      
        	
                SWISS
                  RE FINANCIAL PRODUCTS CORPORATION 

              	
                and

              	
                HSBC
                  Bank USA, National Association, not individually, but solely as
                  trustee on
                  behalf of the
                  Supplemental Interest Trust with respect to Nomura Home Equity
                  Loan, Inc.,
                  Home Equity Loan Trust, Series 2006-HE3, Asset-Backed Certificates,
                  Series
                  2006-HE3

              

      

       

      
        	____________________________________________ 	 	_______________________________________________ 
	
                ("Party
                  A")

              	 	
                ("Party
                  B")

              

      

       

      
        	
                have
                  entered and/or anticipate entering into one or more transactions
                  (each a
                  “Transaction”) that are or will be governed by this Master
                  Agreement, which includes the schedule (the “Schedule”),
                  and the documents and other confirming evidence (each
                  a “Confirmation”) exchanged between the parties confirming those
                  Transactions. 

                 

              
	
                Accordingly,
                  the parties agree as follows:—

                 

              
	
                1. Interpretation

                 

              
	
                (a)  Definitions.
                  The
                  terms defined in Section 14 and in the Schedule will have
                  the meanings therein specified for the purpose of this
                  Master Agreement.

                 

              
	
                (b) Inconsistency.
                  In
                  the event of any inconsistency between the provisions of
                  the Schedule and the
                  other provisions of this Master Agreement, the Schedule
                  will prevail. In the event of any inconsistency
                  between the provisions of any Confirmation and this Master
                  Agreement (including the Schedule), such
                  Confirmation will prevail for the purpose of
                  the relevant Transaction.

                 

              
	
                (c) Single
                  Agreement. All
                  Transactions are entered into in reliance on the
                  fact that this Master Agreement and all
                  Confirmations form a single agreement between the parties
                  (collectively referred to as
                  this “Agreement”), and the parties would not otherwise enter
                  into any Transactions.

                 

              
	
                2. Obligations

                 

              
	
                (a) General
                  Conditions.

                 

              
	
                (i) Each
                  party will make each payment or delivery specified in each Confirmation
                  to be made by it, subject to the other provisions
                  of this Agreement.

                 

              
	
                (ii) Payments
                  under this Agreement will be made on the due date for value on
                  that
                  date in the place
                  of the account specified in the relevant Confirmation or
                  otherwise pursuant to this Agreement, in
                  freely transferable funds and in the manner customary for
                  payments in the required currency. Where
                  settlement is by delivery (that is, other than by payment), such
                  delivery will be made for receipt on the due date in
                  the manner customary for the relevant obligation unless
                  otherwise specified in the
                  relevant Confirmation or elsewhere in this
                  Agreement.

                 

              
	
                (iii) Each
                  obligation of each party under Section 2(a)(i) is subject to (1)
                  the condition precedent that no Event of Default
                  or Potential Event of Default with respect to the other
                  party has occurred and is continuing, (2) the
                  condition precedent that no Early Termination Date
                  in respect of the relevant Transaction has
                  occurred or been effectively designated and (3)
                  each other applicable condition precedent specified in
                  this Agreement.

              

      

      

      Copyright
        © 1992 by International Swap and Derivatives Association, Inc.

       

      
        	
                (b) Change
                  of Account. Either
                  party may change its account for receiving a payment
                  or delivery by giving notice to the other party at
                  least five Local Business Days prior to the scheduled date for
                  the payment or delivery to which such change applies unless
                  such other party gives timely notice of a reasonable objection
                  to such change.

                 

              
	
                (c) Netting.
                  If
                  on any date amounts would otherwise be payable:—

                 

              
	
                (i) in
                  the same currency; and

                 

              
	
                (ii) in
                  respect of the same Transaction,

                 

              
	
                by
                  each party to the other, then, on such date, each party's obligation
                  to
                  make payment of any such amount will be automatically
                  satisfied and discharged and, if the aggregate amount that would
                  otherwise have been
                  payable by one party exceeds the aggregate amount that would otherwise
                  have been payable by the other party, replaced by an
                  obligation upon the party by whom the larger aggregate amount
                  would have been payable to pay
                  to the other party the excess of the larger aggregate amount over
                  the
                  smaller aggregate amount.

                 

              
	
                The
                  parties may elect in respect of two or more Transactions that a
                  net amount
                  will be determined in respect of all amounts
                  payable on the same date in the same currency in respect of such
                  Transactions, regardless of
                  whether such amounts are payable in respect of the same
                  Transaction. The election may be made in the
                  Schedule or a Confirmation by specifying that subparagraph (ii)
                  above will not apply to the Transactions identified as being
                  subject to the election, together with the starting date (in which
                  case
                  subparagraph (ii) above will not, or will cease to, apply
                  to such Transactions from such date). This election may be made
                  separately for different groups of Transactions and will apply
                  separately to each pairing of Offices through
                  which the parties make and receive payments or
                  deliveries.

                 

              
	
                (d) Deduction
                  or Withholding for Tax.

                 

              
	
                (i) Gross-Up.
                  All
                  payments under this Agreement will be made without
                  any deduction or withholding for or on account of any Tax
                  unless such deduction or withholding is required by any
                  applicable law, as modified by the practice of any relevant
                  governmental revenue
                  authority, then in
                  effect. If a party is so required to deduct or withhold, then that
                  party
                  (“X”) will:—

                 

              
	
                (1) promptly
                  notify the other party (“Y”) of such requirement;

                 

              
	
                (2) pay
                  to the relevant authorities the full amount required to be
                  deducted or withheld (including the full amount
                  required to be deducted or withheld from any additional amount
                  paid by X to Y under this Section 2(d)) promptly upon the earlier of
                  determining that such deduction or withholding is
                  required or receiving notice that such amount has been assessed
                  against Y;

                 

              
	
                (3) promptly
                  forward to Y an official receipt (or a certified copy), or
                  other documentation reasonably acceptable to Y, evidencing such
                  payment to such authorities; and

                 

              
	
                (4) if
                  such Tax is an Indemnifiable Tax, pay to Y, in addition to the
                  payment
                  to which Y is otherwise entitled under this
                  Agreement, such additional amount as is necessary
                  to ensure that the net amount
                  actually received by Y (free and clear of Indemnifiable Taxes,
                  whether assessed
                  against X or Y) will equal the full amount Y would have received
                  had no such deduction or withholding been required.
                  However, X will not be required to pay any additional amount to
                  Y to the extent that it would not be required to be paid but
                  for:—

                 

              
	
                (A) the
                  failure by Y to comply with or perform any
                  agreement contained in Section 4(a)(i), 4(a)(iii) or
                  4(d); or

                 

              
	
                (B) the
                  failure of a representation made by Y pursuant to Section 3(f)
                  to
                  be accurate and true unless such failure would not
                  have occurred but for (I) any action taken by a taxing
                  authority, or brought in a court of competent jurisdiction, on or
                  after the date on which a Transaction is entered into
                  (regardless of whether such action is taken or brought with
                  respect to a party to this Agreement) or (II) a Change in Tax
                  Law.

                 

              
	
                (ii) Liability.
                  If:—

                 

              
	
                (1) X
                  is required by any applicable law, as modified by the practice
                  of
                  any relevant governmental revenue authority, to make any
                  deduction
                  or withholding in respect of which X
                  would not be required to pay an additional amount to Y under
                  Section 2(d)(i)(4);

                 

              
	
                (2) X
                  does not so deduct or withhold; and

                 

              
	
                (3) a
                  liability resulting from such Tax is assessed directly against
                  X,

                 

              
	
                then,
                  except to the extent Y has satisfied or then satisfies the liability
                  resulting from such Tax, Y will promptly pay to X the
                  amount of such liability (including any related liability
                  for interest, but including any related liability for
                  penalties only if Y has failed to comply with or perform any
                  agreement contained in Section 4(a)(i), 4(a)(iii) or
                  4(d)).

                 

              
	
                (e) Default
                  Interest; Other Amounts. Prior
                  to the occurrence or effective designation of an Early
                  Termination Date in respect of the relevant Transaction, a party that
                  defaults in the performance of any payment obligation
                  will, to the extent permitted by law and subject to
                  Section 6(c), be required to pay interest
                  (before as well
                  as after judgment) on the overdue amount to the other party on
                  demand in
                  the same currency
                  as such overdue amount, for the period from (and including) the
                  original due date for payment to (but excluding) the date
                  of actual payment, at the Default Rate. Such interest will be calculated
                  on the basis of daily compounding
                  and the actual number of days elapsed. If, prior to the occurrence
                  or
                  effective designation
                  of an Early Termination Date in respect of the relevant
                  Transaction, a party defaults in the performance of
                  any obligation required to be settled by delivery, it will
                  compensate
                  the other party on demand
                  if
                  and to the extent provided for in the relevant Confirmation
                  or elsewhere in this Agreement.

                 

              
	
                3. Representations

                 

              
	
                Each
                  party represents to the other party (which representations will
                  be
                  deemed to be repeated
                  by each party on each date on which a Transaction is
                  entered into and, in the
                  case of the representations
                  in
                  Section 3(f), at all times until the termination of
                  this Agreement) that:—

                 

              
	
                (a) Basic
                  Representations.

                 

              
	
                (i) Status.
                  It
                  is duly organised and validly existing under the laws of the
                  jurisdiction of its organisation or incorporation and, if
                  relevant under such laws, in good standing;

                 

              
	
                (ii) Powers.
                  It
                  has the power to execute this Agreement and any other
                  documentation relating to this Agreement to which it is a
                  party, to
                  deliver this Agreement and any other
                  documentation relating to this Agreement that it is
                  required by this Agreement to deliver and to perform its obligations
                  under this Agreement and any obligations it has under any Credit
                  Support Document to which it is a party and has taken
                  all necessary action to authorise such execution, delivery and
                  performance;

                 

              
	
                (iii) No
                  Violation or Conflict.
                  Such
                  execution, delivery and
                  performance do not
                  violate or  conflict with any law applicable to it,
                  any provision of its constitutional documents, any order or judgment
                  of any court or other agency of government applicable to it or
                  any of its assets or any contractual restriction binding on
                  or affecting it or any of its assets;

                 

              
	
                (iv) Consents.
                  All
                  governmental and other consents that are required to have been
                  obtained by it with respect to this Agreement or any
                  Credit Support Document to which it is a party have been
                  obtained and are in full force and effect and all conditions of any
                  such consents have been complied with; and

                 

              
	
                (v) Obligations
                  Binding. Its
                  obligations under
                  this Agreement and any
                  Credit Support Document to which it is a party
                  constitute its legal, valid and binding obligations,
                  enforceable in accordance with their respective terms
                  (subject to applicable bankruptcy, reorganisation, insolvency,
                  moratorium or similar laws affecting creditors' rights generally
                  and subject, as to enforceability, to equitable principles of
                  general application (regardless of whether enforcement
                  is sought in a proceeding in equity or at
                  law)).

                 

              
	
                (b) Absence
                  of Certain Events. No
                  Event of Default or Potential Event of Default or,
                  to its knowledge, Termination Event
                  with respect to it has occurred
                  and is continuing and
                  no such event
                  or
                  circumstance would occur as a
                  result of its entering into or performing its
                  obligations under this Agreement
                  or
                  any Credit Support Document to which it is a
                  party.

                 

              
	
                (c) Absence
                  of Litigation.
                  There
                  is not pending or, to its knowledge, threatened against it or
                  any of its Affiliates any action, suit or proceeding
                  at law or in equity or before any court,
                  tribunal, governmental body, agency or official or any
                  arbitrator that is likely to affect the legality, validity or
                  enforceability against it of this Agreement or
                  any Credit Support Document
                  to
                  which it is a party or its ability to perform its obligations
                  under this Agreement or such Credit Support
                  Document.

                 

              
	
                (d) Accuracy
                  of Specified Information. All
                  applicable information
                  that
                  is
                  furnished in writing by or on behalf of it to the
                  other party and is identified for the purpose of this Section 3(d)
                  in the
                  Schedule is, as of the date of the information,
                  true, accurate and complete in every material respect.

                 

              
	
                (e) Payer
                  Tax Representation. Each
                  representation specified in the Schedule as being made by it for
                  the purpose of this Section 3(e) is accurate and
                  true.

                 

              
	
                (f) Payee
                  Tax Representations. Each
                  representation specified in the Schedule as being
                  made by it for the purpose of this Section 3(f)
                  is accurate and true.

                 

              
	
                4. Agreements

                 

              
	
                Each
                  party agrees with the other that, so long as either party has or
                  may have
                  any obligation under this Agreement or under any
                  Credit Support Document to which it is a party:—

                 

              
	
                (a) Furnish
                  Specified Information. It
                  will deliver to the other party or, in certain cases under
                  subparagraph (iii) below, to such government or taxing authority
                  as the other party reasonably directs:—

                 

              
	
                (i) any
                  forms, documents or certificates relating to taxation specified
                  in the
                  Schedule or any Confirmation;

                 

              
	
                (ii) any
                  other documents specified in the Schedule or any Confirmation;
                  and

                 

              
	
                (iii) upon
                  reasonable demand by such other party, any form or document that
                  may
                  be required or reasonably requested in writing in order to
                  allow such other party or its Credit Support Provider to
                  make a payment under this Agreement or any applicable Credit
                  Support Document without any deduction or withholding for
                  or on account of any Tax or with such deduction
                  or withholding at a reduced rate (so long as the
                  completion, execution or submission of such form or document would
                  not materially prejudice the legal or commercial position of the
                  party in receipt of such demand), with any such form or
                  document to be accurate and completed in a manner
                  reasonably satisfactory to such other party and to be
                  executed
                  and to be delivered with any
                  reasonably required certification,

                 

              
	
                in
                  each case by the date specified in the Schedule or such Confirmation
                  or,
                  if none is specified, as soon as
                  reasonably practicable.

                 

              
	
                (b) Maintain
                  Authorisations. It will
                  use all reasonable efforts to maintain in full force
                  and effect all consents of any governmental or other
                  authority that are required to be obtained by it with
                  respect to this Agreement or any
                  Credit Support Document to which
                  it is a party and will use
                  all reasonable efforts to obtain any that may become
                  necessary in the future.

                 

              
	
                (c) Comply
                  with Laws. It
                  will comply in all material respects with all applicable laws
                  and orders to which it may
                  be subject if failure
                  so
                  to comply would materially impair its ability to perform
                  its obligations under this Agreement or any Credit Support
                  Document to which it is a party.

                 

              
	
                (d) Tax
                  Agreement. It
                  will give notice of any failure of a representation made by it
                  under Section 3(f) to be accurate and true promptly
                  upon learning of such failure.

                 

              
	
                (e) Payment
                  of Stamp Tax. Subject
                  to Section 11, it will pay any Stamp Tax levied or imposed upon
                  it or in respect
                  of its execution or performance
                  of
                  this Agreement by
                  a jurisdiction in which it is incorporated,

                 

              
	
                organised,
                  managed and controlled, or considered to have its seat, or in which
                  a
                  branch or office through which it is
                  acting for the purpose of this Agreement is located
                  (“Stamp Tax Jurisdiction”) and will indemnify the other party
                  against any Stamp Tax levied or imposed upon
                  the other party or in respect of the other party's execution or performance
                  of this Agreement by any such
                  Stamp Tax Jurisdiction which is not also a Stamp
                  Tax Jurisdiction with respect to the other party.

                 

              
	
                5. Events
                  of Default and Termination Events

                 

              
	
                (a) Events
                  of Default. The
                  occurrence at any time with respect to a party or, if
                  applicable, any Credit Support Provider of
                  such party or any Specified
                  Entity of such party of any of the following events constitutes
                  an event of default (an “Event of Default”) with respect to such
                  party:—

                 

              
	
                (i) Failure
                  to Pay or Deliver. Failure
                  by the party to make, when due, any payment under this
                  Agreement or delivery under Section 2(a)(i) or 2(e) required to
                  be made by it if such failure is not remedied on or before
                  the third Local Business Day after notice of such failure is given
                  to the
                  party;

                 

              
	
                (ii) Breach
                  of Agreement. Failure
                  by the party to comply with or perform any agreement or
                  obligation (other than an obligation to make any payment under this
                  Agreement or delivery under Section 2(a)(i) or 2(e) or to
                  give notice of a Termination Event or any
                  agreement or obligation under Section 4(a)(i),
                  4(a)(iii) or 4(d)) to be complied with or performed by the
                  party in accordance with this Agreement if such
                  failure is not remedied on or before the thirtieth day
                  after notice of such failure is given to the
                  party;

                 

              
	
                (iii) Credit
                  Support Default.

                 

              
	
                (1) Failure
                  by the party or any Credit Support Provider of such party to
                  comply with or perform any agreement or obligation to
                  be complied with or performed by it in accordance
                  with any Credit Support Document if such failure is continuing
                  after any applicable grace
                  period has elapsed;

                 

              
	
                (2) the
                  expiration or termination
                  of
                  such Credit Support Document or the failing or ceasing
                  of such Credit
                  Support Document to be in full force and
                  effect for the purpose of this Agreement (in either case
                  other than in accordance with its terms)
                  prior to the satisfaction
                  of all obligations of such party
                  under each Transaction to which
                  such Credit Support Document relates without
                  the written consent of the other party; or

                 

              
	
                (3) the
                  party or such
                  Credit Support
                  Provider disaffirms, disclaims, repudiates or rejects, in
                  whole or in part, or challenges the validity of, such Credit
                  Support Document;

                 

              
	
                (iv) Misrepresentation.
                  A
                  representation (other than a representation under
                  Section 3(e) or (f))
                  made or repeated
                  or deemed to have been made or repeated by the party or
                  any Credit Support
                  Provider of such
                  party in this Agreement or any Credit Support Document proves
                  to have been
                  incorrect or misleading
                  in any
                  material respect when made or repeated or deemed to
                  have been made
                  or repeated;

                 

              
	
                (v) Default
                  under Specified Transaction. The
                  party, any Credit Support Provider of such party or
                  any applicable Specified
                  Entity of such party (1) defaults under a Specified
                  Transaction and, after
                  giving effect
                  to any applicable notice requirement or grace period, there occurs
                  a
                  liquidation of, an
                  acceleration of obligations
                  under, or an
                  early termination of, that Specified Transaction, (2) defaults,
                  after giving effect to any applicable notice requirement or
                  grace period, in making any payment or delivery due on
                  the last payment, delivery or exchange date of, or any payment
                  on early termination of, a Specified Transaction (or
                  such default continues for at least three Local
                  Business Days if there is no applicable notice
                  requirement or grace period) or (3) disaffirms,
                  disclaims, repudiates or rejects, in whole or in part,
                  a Specified Transaction (or such action is taken by any
                  person or entity appointed or empowered to operate it
                  or act on its behalf);

                 

              
	
                (vi) Cross
                  Default. If
                  “Cross Default” is specified in
                  the Schedule as applying to the party, the occurrence or existence
                  of (1) a default, event of default or other similar condition or
                  event
                  (however

                 

              
	
                described)
                  in respect of such
                  party, any Credit Support Provider of such party
                  or any applicable Specified Entity of such party under
                  one or more agreements or instruments relating to Specified
                  Indebtedness of any of them (individually or collectively) in an
                  aggregate amount of not less than the applicable Threshold
                  Amount (as
                  specified in the Schedule) which has resulted in such Specified
                  Indebtedness becoming, or becoming capable at such time of being
                  declared, due and payable under such agreements or
                  instruments, before it would
                  otherwise have been due and payable or (2) a default
                  by such party, such Credit Support Provider or such Specified
                  Entity (individually or collectively) in making one or
                  more payments on the due date thereof
                  in an aggregate
                  amount of not less than the applicable Threshold Amount
                  under such agreements or instruments (after giving effect to any
                  applicable notice requirement or grace period);

                 

              
	
                (vii) Bankruptcy.
                  The
                  party, any Credit Support Provider
                  of
                  such party or any applicable Specified Entity of such
                  party:—

                 

              
	
                (1) is
                  dissolved (other than pursuant to a consolidation, amalgamation
                  or
                  merger); (2) becomes
                  insolvent or is
                  unable to
                  pay its debts or fails or admits in writing
                  its inability generally to pay its debts as they
                  become due; (3) makes a general assignment,
                  arrangement or composition with or for the benefit of
                  its creditors; (4) institutes or has instituted
                  against it a proceeding seeking a judgment of
                  insolvency or bankruptcy or any other relief under
                  any bankruptcy or insolvency law or
                  other similar law affecting
                  creditors' rights, or a petition is presented for its
                  winding-up or liquidation, and, in the case of any such
                  proceeding or petition instituted or
                  presented against it, such proceeding or petition (A) results in
                  a judgment of insolvency or bankruptcy or the entry of
                  an order for relief or the making of an order for its winding-up or
                  liquidation or (B) is
                  not dismissed, discharged, stayed or restrained in each
                  case within 30 days of the institution
                  or presentation thereof; (5) has
                  a resolution
                  passed for its winding-up, official management or
                  liquidation (other than pursuant to a consolidation,
                  amalgamation or merger); (6) seeks or becomes subject
                  to the appointment of an administrator, provisional liquidator,
                  conservator, receiver,
                  trustee, custodian or other similar official
                  for it or for all or substantially all its assets; (7)
                  has a secured party take possession of all or substantially all
                  its
                  assets or has a distress, execution, attachment,
                  sequestration
                  or other legal process
                  levied, enforced or sued on or against all or
                  substantially all its assets and such secured party
                  maintains possession, or any such process
                  is not dismissed, discharged, stayed or restrained, in each
                  case within 30 days thereafter; (8) causes or is subject to
                  any event with respect to it which, under the applicable
                  laws of any jurisdiction, has an analogous effect to any of the
                  events specified in clauses (1) to (7) (inclusive);
                  or (9) takes any action in
                  furtherance of, or indicating its consent to, approval
                  of, or acquiescence in, any of the foregoing acts;
                  or

                 

              
	
                (viii) Merger
                  Without Assumption. The
                  party or any Credit Support Provider of such party
                  consolidates or amalgamates
                  with, or merges with or into,
                  or transfers all or substantially all its assets
                  to, another entity and, at the time of such consolidation,
                  amalgamation, merger or transfer:—

                 

              
	
                (1) the
                  resulting, surviving or transferee entity fails
                  to assume all the obligations of such party
                  or such Credit Support Provider under this Agreement or any
                  Credit Support Document to which it or its predecessor
                  was a party by operation of law or pursuant to an agreement
                  reasonably satisfactory to the other party to this Agreement;
                  or

                 

              
	
                (2) the
                  benefits of any Credit Support Document fail to extend (without
                  the
                  consent of the other party) to the performance by such
                  resulting, surviving or transferee entity of its
                  obligations under this Agreement.

                 

              
	
                (b) Termination
                  Events. The
                  occurrence at any time with respect to a party or, if
                  applicable, any Credit Support Provider of
                  such party or any Specified
                  Entity of such party of any event specified below constitutes
                  an Illegality if the event is specified in (i) below, a Tax
                  Event if the event is specified in (ii) below or a Tax
                  Event Upon Merger if the event is specified in (iii) below, and,
                  if specified to be
                  applicable, a Credit Event

              

      

      

      
        	
                Upon
                  Merger if the event is specified pursuant to (iv) below
                  or
                  an Additional Termination Event if the event
                  is specified pursuant to (v) below:—

                 

              
	
                (i) Illegality.
                  Due
                  to
                  the adoption of, or any change in, any
                  applicable law after the date on which
                  a Transaction is entered into, or due to the promulgation
                  of, or any change in, the interpretation by
                  any court, tribunal or regulatory authority with competent
                  jurisdiction of any applicable law after
                  such date, it becomes unlawful (other than as a result of a
                  breach by the party of Section 4(b)) for
                  such party (which will be the Affected Party):—

                 

              
	
                (1) to
                  perform any absolute or contingent obligation to make a payment
                  or delivery or to receive a payment or delivery
                  in respect of such Transaction or to comply with any other
                  material provision of this Agreement relating to such Transaction;
                  or

                 

              
	
                (2) to
                  perform, or for any Credit Support
                  Provider of such
                  party to perform, any contingent
                  or other obligation which the party (or such Credit Support
                  Provider) has under any Credit
                  Support Document relating to such Transaction;

                 

              
	
                (ii) Tax
                  Event. Due
                  to (x) any action
                  taken by a taxing authority, or brought in a court of competent
                  jurisdiction, on or after the date on which a Transaction
                  is entered into (regardless of whether such
                  action is taken or brought with respect to a party to this
                  Agreement) or (y) a Change in Tax Law,
                  the party (which will be the Affected Party) will, or there is a
                  substantial likelihood that it will, on
                  the next succeeding Scheduled Payment Date (1) be required to
                  pay to the other party an additional amount in respect
                  of an Indemnifiable Tax under Section 2(d)(i)(4) (except
                  in respect of interest under Section 2(e),
                  6(d)(ii) or 6(e)) or (2) receive a payment from which an amount
                  is required to be deducted or withheld for or on
                  account of a Tax (except in respect of interest
                  under Section 2(e), 6(d)(ii) or 6(e)) and no
                  additional amount is required to be paid in respect of
                  such Tax under Section 2(d)(i)(4) (other than by
                  reason of Section 2(d)(i)(4)(A) or (B));

                 

              
	
                (iii) Tax
                  Event Upon Merger. The
                  party (the “Burdened Party”) on the next succeeding Scheduled
                  Payment Date will
                  either (1) be required to pay an additional
                  amount in respect of an Indemnifiable Tax under Section
                  2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii)
                  or 6(e)) or (2) receive a
                  payment from which an amount has been deducted or withheld for
                  or
                  on account of any Indemnifiable Tax
                  in respect of which the other
                  party is not required to pay an additional amount
                  (other than by reason of Section 2(d)(i)(4)(A) or (B)), in
                  either case as a result of a party
                  consolidating or amalgamating with, or merging with or into, or
                  transferring all or substantially all its assets to,
                  another entity (which will be the Affected Party) where such action
                  does not constitute an event described in Section
                  5(a)(viii);

                 

              
	
                (iv)  Credit
                  Event Upon Merger. If
                  “Credit Event Upon Merger” is specified in the
                  Schedule as applying
                  to the party,
                  such party (“X”), any Credit Support Provider of X or any applicable
                  Specified Entity of X
                  consolidates or amalgamates
                  with, or merges with or into,
                  or transfers all or substantially all its assets
                  to, another entity and such action does
                  not constitute an event described
                  in
                  Section 5(a)(viii) but the creditworthiness of the
                  resulting, surviving or transferee entity is materially
                  weaker than that of X, such Credit Support
                  Provider or such Specified Entity,
                  as
                  the case may be, immediately prior
                  to such action (and, in such event, X or its successor
                  or transferee, as appropriate, will be the Affected Party);
                  or

                 

              
	
                (v) Additional
                  Termination Event. If
                  any “Additional Termination Event” is specified in the
                  Schedule or any Confirmation as applying, the occurrence of such
                  event (and, in such event, the Affected Party or
                  Affected Parties shall be as specified for such Additional
                  Termination Event in the Schedule or such
                  Confirmation).

                 

              
	
                (c) Event
                  of Default and Illegality. If
                  an event or circumstance which would otherwise constitute or
                  give rise to an Event of Default also constitutes an
                  Illegality, it will be treated as an
                  Illegality and will not
                  constitute an Event of
                  Default.

              

      

       

      

      
        	
                6. Early
                  Termination

                 

              
	
                (a) Right
                  to Terminate Following Event of Default. If
                  at any time an Event of Default with respect to
                  a party (the “Defaulting Party”) has occurred and is then
                  continuing, the other party (the “Non-defaulting
                  Party”) may, by
                  not more than 20 days notice to
                  the Defaulting Party specifying the relevant Event of Default,
                  designate a day not earlier than the day such notice is
                  effective as an Early Termination Date in respect of
                  all outstanding Transactions. If, however, “Automatic Early
                  Termination” is specified in the Schedule as
                  applying to a party, then an Early Termination Date in
                  respect of all outstanding Transactions will occur immediately upon the
                  occurrence with respect to such party of an Event
                  of Default specified in Section 5(a)(vii)(l), (3), (5),
                  (6)
                  or, to the extent analogous thereto, (8), and as of
                  the time immediately preceding the institution of the
                  relevant proceeding or the presentation of the
                  relevant petition upon the occurrence with respect
                  to such party of an Event of Default
                  specified in Section 5(a)(vii)(4) or, to the extent
                  analogous thereto, (8).

                 

              
	
                (b) Right
                  to Terminate Following Termination Event.

                 

              
	
                (i) Notice.
                  If
                  a Termination Event occurs, an Affected Party will, promptly upon
                  becoming aware of
                  it, notify the other
                  party, specifying the nature of that Termination Event
                  and each Affected Transaction
                  and will also give
                  such other information about
                  that Termination Event as the
                  other party may reasonably
                  require.

                 

              
	
                (ii) Transfer
                  to Avoid Termination Event. If
                  either an Illegality under Section 5(b)(i)(l) or a Tax
                  Event occurs and there is only one Affected Party, or if a Tax
                  Event Upon Merger occurs and the Burdened Party is the
                  Affected Party, the Affected Party will, as a condition to its
                  right to designate an Early Termination Date under
                  Section 6(b)(iv), use all reasonable efforts (which
                  will not require such party to incur a loss,
                  excluding
                  immaterial, incidental expenses)
                  to transfer within 20 days after it gives notice under
                  Section 6(b)(i) all its rights and obligations under this
                  Agreement in respect of the Affected Transactions
                  to another of its Offices or Affiliates so that
                  such Termination Event ceases to exist.

                 

              
	
                If
                  the Affected Party is not able to make such a transfer it will
                  give notice
                  to the other party to that effect within such
                  20 day period, whereupon the other party may effect such
                  a transfer within
                  30 days after the notice is given under Section
                  6(b)(i).

                 

              
	
                Any
                  such transfer by a party under this Section 6(b)(ii) will be subject
                  to
                  and conditional upon the prior written consent of the
                  other party, which consent will not be withheld if
                  such other party's policies in effect at such time
                  would permit it to enter into transactions with
                  the transferee on the terms proposed.

                 

              
	
                (iii) Two
                  Affected Parties. If
                  an Illegality under Section 5(b)(i)( 1) or
                  a
                  Tax Event occurs and there are two Affected Parties,
                  each party will use
                  all reasonable efforts to reach agreement within 30 days
                  after notice thereof is given under Section 6(b)(i) on action to
                  avoid that Termination Event.

                 

              
	
                (iv) Right to
                  Terminate. If:—

                 

              
	
                (1) a
                  transfer under
                  Section 6(b)(ii) or an agreement
                  under Section 6(b)(iii), as the case may
                  be, has not been effected with respect to all Affected
                  Transactions within 30 days after an
                  Affected Party gives notice under Section 6(b)(i);
                  or

                 

              
	
                (2) an
                  Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger
                  or an Additional Termination Event occurs,
                  or a Tax Event
                  Upon Merger occurs and the Burdened Party is not
                  the Affected Party,

                 

              
	
                either
                  party in the case of an Illegality, the
                  Burdened Party in the
                  case of a Tax Event Upon Merger,
                  any Affected Party in the case of a Tax Event or an Additional
                  Termination Event if there is more
                  than one Affected Party, or the party which is not the Affected
                  Party in the case of a Credit Event
                  Upon Merger or an Additional Termination Event if there is only
                  one Affected Party may, by not more than 20 days
                  notice to
                  the other party and provided that the relevant
                  Termination Event is then

                 

              

      

      

      
        	
                continuing,
                  designate a day not earlier than the day such notice is effective
                  as
                  an Early Termination Date in respect of all Affected
                  Transactions.

                 

              
	
                (c) Effect
                  of Designation.

                 

              
	
                (i) If
                  notice designating an Early Termination Date is given under Section
                  6(a)
                  or (b), the Early Termination Date will occur on the
                  date so designated, whether or not the
                  relevant Event of Default or Termination Event is
                  then continuing.

                 

              
	
                (ii) Upon
                  the occurrence or effective designation of an Early
                  Termination Date, no further
                  payments or deliveries under Section 2(a)(i) or 2(e) in respect
                  of the Terminated Transactions will be required to
                  be made, but without prejudice to the
                  other provisions of this Agreement. The amount,
                  if any, payable in
                  respect of an Early Termination Date shall
                  be
                  determined pursuant to Section 6(e).

                 

              
	
                (d) Calculations.

                 

              
	
                (i) Statement.
                  On
                  or as soon as reasonably practicable following the
                  occurrence of an Early
                  Termination Date, each
                  party will make the calculations on its
                  part, if any, contemplated by Section 6(e)
                  and will provide to the other party a statement (1) showing, in
                  reasonable detail, such calculations (including all relevant
                  quotations and specifying any amount
                  payable under Section 6(e)) and (2) giving
                  details of the
                  relevant account to which any
                  amount payable to it is to be paid. In the
                  absence of written confirmation from the
                  source of a quotation obtained in determining a Market
                  Quotation, the records of
                  the party obtaining such quotation will be conclusive
                  evidence of the existence and accuracy of such
                  quotation.

                 

              
	
                (ii) Payment
                  Date. An
                  amount calculated as being due in respect of any
                  Early Termination Date under Section 6(e) will
                  be payable on the day that notice of the amount payable
                  is effective (in the case of an Early
                  Termination Date which is designated or occurs as a result of
                  an Event of Default) and on the day
                  which is two Local Business Days after the day on
                  which notice of the amount payable is effective (in
                  the
                  case of an Early Termination Date which
                  is
                  designated as a result of a Termination
                  Event). Such amount will be paid together with (to the extent
                  permitted under applicable law)
                  interest thereon (before as well
                  as after judgment) in the Termination Currency, from (and including)
                  the relevant Early Termination Date to (but excluding) the date
                  such amount is paid, at the Applicable Rate. Such
                  interest will be calculated on the basis of daily
                  compounding and the actual
                  number of days elapsed.

                 

              
	
                (e) Payments
                  on Early Termination. If
                  an Early Termination Date
                  occurs, the following provisions shall apply based
                  on the parties' election in the Schedule of a payment measure,
                  either “Market Quotation” or “Loss”, and a
                  payment method, either the “First Method” or the “Second Method”. If the
                  parties fail to designate a payment
                  measure or payment method in the Schedule, it will be
                  deemed that “Market Quotation”
                  or the “Second Method”, as
                  the case may be, shall apply. The amount,
                  if any, payable in respect of an Early
                  Termination Date and determined pursuant to this Section will be
                  subject to any Set-off.

                 

              
	
                (i) Events
                  of Default. If
                  the Early Termination Date results from an Event of Default:—

                 

              
	
                (1) First
                  Method and Market Quotation.
                  If
                  the First Method and Market Quotation apply, the
                  Defaulting Party will
                  pay to the Non-defaulting Party the excess, if a positive
                  number, of (A) the
                  sum of the Settlement Amount (determined by the
                  Non-defaulting Party) in respect of the Terminated Transactions and
                  the Termination Currency Equivalent of the Unpaid Amounts owing
                  to the Non-defaulting Party over (B) the Termination Currency
                  Equivalent of the Unpaid Amounts owing to the
                  Defaulting Party.

                 

              
	
                (2) First
                  Method and Loss. If
                  the First Method and Loss apply, the
                  Defaulting Party will pay
                  to the Non-defaulting Party, if a positive number, the
                  Non-defaulting Party's Loss in respect
                  of this Agreement.

                 

              
	
                (3) Second
                  Method and Market Quotation. If
                  the Second Method and Market Quotation apply,
                  an amount will be payable equal to (A) the sum of the Settlement
                  Amount (determined by
                  the 

                 

              
	
                Non-defaulting
                  Party) in
                  respect of the Terminated Transactions and
                  the Termination Currency
                  Equivalent of the
                  Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination
                  Currency Equivalent of the Unpaid Amounts owing to the
                  Defaulting Party. If that amount is a positive number, the
                  Defaulting Party will pay it to the Non-defaulting Party; if
                  it is a negative
                  number, the Non-defaulting
                  Party will pay the absolute value of that amount to the Defaulting
                  Party.

                 

              
	
                (4) Second
                  Method and Loss.
                  If
                  the Second Method and Loss apply, an
                  amount will be payable
                  equal to the Non-defaulting Party's Loss in respect of this
                  Agreement. If that amount is a
                  positive number, the
                  Defaulting Party will pay it to the Non-defaulting Party;
                  if it is a negative number, the Non-defaulting
                  Party will pay the absolute value of that amount
                  to the Defaulting Party.

                 

              
	
                (ii) Termination
                  Events. If
                  the Early Termination Date results from a Termination Event:—

                 

              
	
                (1) One
                  Affected Party.
                  If
                  there is one Affected Party, the amount payable will be determined
                  in accordance with Section
                  6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if Loss
                  applies, except that,
                  in either case, references to the Defaulting Party and
                  to the Non-defaulting Party will be deemed to be
                  references to the Affected Party and the party
                  which is not the Affected Party, respectively,
                  and, if Loss applies and fewer than all the Transactions are being
                  terminated, Loss shall be calculated in respect of all
                  Terminated Transactions.

                 

              
	
                (2) Two
                  Affected Parties. If
                  there are two Affected Parties:—

                 

              
	
                (A) if
                  Market Quotation applies, each party will determine
                  a Settlement Amount in respect of the Terminated
                  Transactions, and an amount will be payable
                  equal to (I) the sum of (a) one-half of the
                  difference between the Settlement Amount of the party with
                  the higher Settlement Amount (“X”) and the Settlement
                  Amount of the party with the
                  lower Settlement Amount (“Y”) and (b) the Termination
                  Currency Equivalent of the Unpaid Amounts owing
                  to X less (II) the Termination Currency Equivalent of the Unpaid
                  Amounts owing to Y; and

                 

              
	
                (B) if
                  Loss applies, each party will determine its
                  Loss in respect of this Agreement (or,
                  if fewer than all the Transactions are being terminated, in
                  respect of all Terminated Transactions) and an
                  amount will be payable equal to one-half
                  of
                  the difference between the Loss of
                  the party with the higher Loss (“X”) and
                  the Loss of the party with the lower
                  Loss (“Y”).

                 

              
	
                If
                  the amount payable is a positive number, Y will pay it to X; if
                  it is
                  a negative number, X will pay the absolute
                  value of that amount to Y.

                 

              
	
                (iii) Adjustment
                  for Bankruptcy. In
                  circumstances where an Early Termination Date occurs
                  because “Automatic Early Termination” applies in respect of a
                  party, the amount determined under
                  this Section 6(e) will be subject to such adjustments as
                  are appropriate and permitted by law to
                  reflect any payments or
                  deliveries made by one
                  party to the other under this Agreement (and retained
                  by such other party) during the period from the relevant
                  Early Termination Date to the date for
                  payment determined under Section 6(d)(ii).

                 

              
	
                (iv) Pre-Estimate.
                  The
                  parties
                  agree that if Market Quotation
                  applies an amount recoverable under
                  this Section 6(e) is a reasonable pre-estimate of loss and
                  not a penalty. Such amount is payable for
                  the loss of bargain and the loss of protection against
                  future risks and except as otherwise provided
                  in this Agreement neither party will be entitled to recover
                  any additional damages as a consequence
                  of such losses.

                 

              
	
                7. Transfer

                 

              
	
                Subject
                  to Section 6(b)(ii), neither this Agreement nor any interest or
                  obligation
                  in or under this Agreement
                  may be transferred (whether
                  by way of security or otherwise) by either party without
                  the prior written consent
                  of the other party, except that: —

                 

              
	
                (a) a
                  party may make such a transfer of this Agreement pursuant to
                  a consolidation or amalgamation
                  with, or merger with or into, or transfer of all or
                  substantially all its assets to,
                  another entity (but without
                  prejudice to any other right or remedy under this
                  Agreement); and

                 

              
	
                (b) a
                  party may make such a transfer of all or any part of its interest
                  in
                  any amount payable to it from
                  a Defaulting Party under Section 6(e).

                 

              
	
                Any
                  purported transfer that is not in compliance with this Section
                  will be
                  void.

                 

              
	
                8. Contractual
                  Currency

                 

              
	
                (a) Payment
                  in the Contractual Currency. Each
                  payment under this Agreement will be made in the
                  relevant currency specified
                  in this Agreement for that payment (the “Contractual Currency”). To the extent
                  permitted by applicable law, any obligation to make payments
                  under this Agreement in the Contractual
                  Currency will not be discharged or satisfied by any tender in
                  any currency other than the Contractual
                  Currency, except to the
                  extent such tender results in the actual receipt
                  by
                  the party to which payment is owed,
                  acting in a reasonable manner and
                  in good faith in converting the currency
                  so
                  tendered into the Contractual Currency, of the full amount
                  in the Contractual Currency of all amounts
                  payable in respect of this Agreement.
                  If for any reason the amount in the Contractual Currency so
                  received falls short of the amount in the
                  Contractual Currency payable
                  in respect of this Agreement, the party required
                  to
                  make the payment will, to the extent permitted by
                  applicable law, immediately pay such additional amount
                  in the Contractual Currency
                  as may be necessary to
                  compensate for the shortfall. If for any reason
                  the amount in the Contractual Currency
                  so received exceeds the amount
                  in the Contractual Currency payable
                  in
                  respect of this Agreement, the party
                  receiving the payment will refund promptly the amount of such
                  excess.

                 

              
	
                (b) Judgments.
                  To
                  the extent permitted by applicable law, if any judgment or
                  order expressed in a currency other than the
                  Contractual Currency is rendered (i) for the payment
                  of
                  any amount owing in respect
                  of this Agreement, (ii) for the payment of any
                  amount relating to any early
                  termination in respect of this
                  Agreement or (iii) in respect
                  of a judgment or order of another court for the
                  payment of any amount described
                  in (i) or (ii) above, the party seeking recovery, after
                  recovery in full of the aggregate amount to which such
                  party is entitled pursuant to the judgment or order, will
                  be entitled to receive immediately from the other
                  party the amount of any shortfall of the Contractual
                  Currency received by such party as a consequence of
                  sums paid in such other currency and will refund promptly
                  to the other party any excess of the Contractual
                  Currency received by such party as a consequence of sums paid in
                  such other currency if such shortfall or
                  such excess arises or results from any variation between the
                  rate of exchange at which the Contractual
                  Currency is converted into the
                  currency of the judgment or order for
                  the purposes of such judgment or order
                  and the rate of exchange at which such party is able,
                  acting in a reasonable manner and in good faith in
                  converting the currency received
                  into the Contractual Currency, to purchase
                  the Contractual Currency with
                  the amount of the currency of the judgment or order
                  actually received by such party. The term “rate of
                  exchange” includes, without
                  limitation, any premiums and costs
                  of
                  exchange payable in connection with the
                  purchase of or conversion into the Contractual
                  Currency.

                 

              
	
                (c) Separate
                  Indemnities. To
                  the extent permitted by applicable law,
                  these indemnities constitute separate and independent
                  obligations from the other obligations in this Agreement,
                  will be enforceable as separate and independent
                  causes of action, will apply notwithstanding any indulgence
                  granted by the party to which any payment is
                  owed and will not be affected by judgment being obtained or
                  claim or proof being made for any other sums
                  payable in respect of this Agreement.

                 

              
	
                (d) Evidence
                  of Loss. For
                  the purpose of this Section 8, it will be sufficient for
                  a party to demonstrate that it would have
                  suffered a loss had an actual exchange or purchase been made.

                 

              
	
                9. Miscellaneous

                 

              
	
                (a) Entire
                  Agreement. This
                  Agreement constitutes the entire agreement and understanding of the parties
                  with respect to its subject matter and supersedes all oral
                  communication and prior writings with respect
                  thereto.

                 

              
	
                (b) Amendments.
                  No
                  amendment, modification or waiver in respect of this
                  Agreement will be effective unless in writing
                  (including a writing evidenced by a facsimile transmission) and
                  executed
                  by each of the parties or confirmed by an
                  exchange of telexes or electronic messages on an electronic messaging
                  system.

                 

              
	
                (c) Survival
                  of Obligations. Without
                  prejudice to Sections 2(a)(iii) and 6(c)(ii),
                  the obligations of the parties under this
                  Agreement will survive the termination of any Transaction.

                 

              
	
                (d) Remedies
                  Cumulative. Except
                  as provided in this Agreement, the
                  rights, powers, remedies and
                  privileges provided in this Agreement are cumulative and not
                  exclusive of any rights, powers, remedies
                  and privileges provided by law.

                 

              
	
                (e) Counterparts
                  and Confirmations.

                 

              
	
                (i) This
                  Agreement (and each amendment, modification and waiver in respect
                  of it) may be executed and delivered in
                  counterparts (including by facsimile transmission), each
                  of which will be deemed an original.

                 

              
	
                (ii) The
                  parties intend that they are legally
                  bound by the terms of each Transaction
                  from the moment they agree to those terms
                  (whether orally or otherwise).
                  A Confirmation shall be entered into as
                  soon as practicable and may be executed and delivered in
                  counterparts (including by facsimile
                  transmission) or be created by an exchange of telexes or by an
                  exchange of electronic messages on an electronic messaging system,
                  which in
                  each case will be sufficient
                  for all purposes to evidence a binding supplement to
                  this Agreement. The parties will specify therein or
                  through another effective
                  means that any such counterpart, telex or electronic
                  message constitutes a
                  Confirmation.

                 

              
	
                (f) No
                  Waiver of Rights.
                  A
                  failure
                  or delay in exercising any right,
                  power or privilege in respect of this
                  Agreement will not
                  be presumed to operate
                  as
                  a waiver, and a single or partial exercise
                  of any right, power or privilege will not be
                  presumed to preclude any subsequent or further exercise, of that
                  right, power or privilege or the exercise of any other
                  right, power or privilege.

                 

              
	
                (g) Headings.
                  The
                  headings used in this Agreement are for convenience of reference
                  only and are not to affect the construction
                  of or to be taken into consideration in interpreting this
                  Agreement.

                 

              
	
                10. Offices;
                  Multibranch Parties

                 

              
	
                (a) If
                  Section 10(a) is specified in the Schedule as applying, each party
                  that
                  enters into a Transaction through an Office other
                  than its head or home office represents to the other party
                  that, notwithstanding the place of booking office
                  or jurisdiction
                  of incorporation or organisation
                  of
                  such party, the obligations of such party are the same
                  as if it had entered into the Transaction through its head
                  or
                  home office. This representation
                  will be deemed to be repeated by such party on each date on
                  which a Transaction is entered
                  into.

                 

              
	
                (b) Neither
                  party may change the Office through which it makes and
                  receives payments or deliveries
                  for the purpose of a Transaction without the prior written
                  consent of the other party.

                 

              
	
                (c) If
                  a party is specified as a Multibranch Party in the Schedule, such
                  Multibranch Party may make
                  and receive payments or deliveries under
                  any Transaction through any Office listed
                  in
                  the Schedule, and the
                  Office through which it makes and receives payments or
                  deliveries with respect to a Transaction will be
                  specified in the relevant Confirmation.

                 

              
	
                11. Expenses

                 

              
	
                A
                  Defaulting Party will, on demand, indemnify and hold harmless the
                  other
                  party for and against all
                  reasonable out-of-pocket expenses, including legal fees and
                  Stamp Tax, incurred by such other party by
                  reason of the enforcement
                  and protection of its rights under this Agreement or
                  any Credit Support Document 

                 

              
	
                to which the Defaulting
                  Party is a party or by reason of the early
                  termination of any Transaction, including,
                  but not limited to, costs of collection.

                 

              
	
                12. Notices

                 

              
	
                (a) Effectiveness. Any
                  notice or other
                  communication in respect of this Agreement
                  may be given in any manner set forth below
                  (except that a notice or other communication
                  under Section 5 or 6 may not be given
                  by facsimile transmission or electronic messaging system) to the
                  address or number or in accordance with
                  the electronic messaging system details provided (see the
                  Schedule) and will be deemed effective as
                  indicated:—

                 

              
	
                (i) if
                  in writing and delivered in person or by courier, on the date it
                  is
                  delivered;

                 

              
	
                (ii) if
                  sent by telex, on the date the recipient's answerback is
                  received;

                 

              
	
                (iii) if
                  sent by facsimile transmission, on the date that transmission is
                  received by a responsible employee of  the
                  recipient in legible form (it being agreed that the burden of
                  proving receipt will be on the sender and
                  will not be met by a transmission report generated by
                  the sender's facsimile machine);

                 

              
	
                (iv) if
                  sent by certified or registered mail (airmail, if overseas) or
                  the equivalent (return receipt
                  requested), on the date that mail is delivered or its
                  delivery is attempted; or

                 

              
	
                (v) if
                  sent by electronic messaging system, on the date that electronic
                  message
                  is received,

                 

              
	
                unless
                  the
                  date of that delivery (or attempted delivery) or that receipt,
                  as
                  applicable, is not a Local Business
                  Day or that communication
                  is delivered (or attempted)
                  or
                  received, as applicable, after the close of business
                  on a Local Business Day,
                  in which case that communication
                  shall be deemed given and effective on the first
                  following day that is a Local Business Day.

                 

              
	
                (b) Change
                  of Addresses.
                  Either
                  party may by notice to the other change the
                  address, telex or facsimile
                  number or electronic messaging
                  system details at which notices
                  or
                  other communications are to be given to
                  it.

                 

              
	
                13. Governing
                  Law and Jurisdiction

                 

              
	
                (a) Governing
                  Law. This
                  Agreement will be governed by and construed
                  in accordance with the law
                  specified in the Schedule.

                 

              
	
                (b) Jurisdiction.
                  With
                  respect to any suit, action or
                  proceedings relating to this Agreement
                  (“Proceedings”), each party irrevocably:—

                 

              
	
                (i) submits
                  to the jurisdiction
                  of the English courts, if this Agreement
                  is expressed to be governed
                  by English law, or to the non-exclusive jurisdiction of the
                  courts of the State of New York and the
                  United States District Court located in the Borough of Manhattan
                  in New York City, if this
                  Agreement is expressed to be governed by the laws of the
                  State of New York; and

                 

              
	
                (ii) waives
                  any objection which it may have at any time to the laying
                  of venue of any Proceedings
                  brought in any such court, waives any claim that such
                  Proceedings have been brought in an
                  inconvenient forum and further waives the right to object,
                  with respect to such Proceedings, that
                  such court does not have any jurisdiction over such
                  party.

                 

              
	
                Nothing
                  in this Agreement precludes either party from bringing Proceedings
                  in any other jurisdiction
                  (outside, if this Agreement is expressed to be
                  governed by English law, the Contracting States, as defined
                  in Section 1(3) of
                  the Civil Jurisdiction and Judgments Act 1982 or
                  any modification, extension or
                  reenactment thereof for the time being in force) nor will
                  the bringing of Proceedings in any one or more
                  jurisdictions preclude the bringing of Proceedings in any
                  other jurisdiction.

                 

              
	
                (c) Service
                  of Process. Each
                  party
                  irrevocably appoints the Process Agent
                  (if any) specified opposite
                  its name in the Schedule
                  to receive, for it and on its behalf, service of process
                  in
                  any Proceedings. If for any

                 

              
	
                reason
                  any party's Process Agent is unable to act as such, such party
                  will
                  promptly notify the other party
                  and within 30 days appoint a substitute process agent
                  acceptable to the other party. The parties irrevocably
                  consent to service of process given in the manner provided
                  for notices in Section 12. Nothing in this
                  Agreement will affect the right of either party to serve
                  process in any other manner permitted by law.

                 

              
	
                (d) Waiver
                  of Immunities. Each
                  party irrevocably waives, to the fullest
                  extent permitted by applicable
                  law, with respect to itself
                  and its
                  revenues and assets (irrespective of their use or
                  intended use), all immunity
                  on the grounds of sovereignty
                  or other similar grounds from
                  (i) suit, (ii) jurisdiction of any court, (iii) relief
                  by way of injunction, order
                  for specific performance or for recovery of property,
                  (iv) attachment of its assets
                  (whether before or after judgment) and (v) execution or
                  enforcement of any judgment to which it or its
                  revenues or assets might otherwise be entitled in any
                  Proceedings in the courts of any jurisdiction and
                  irrevocably agrees, to the extent permitted
                  by applicable law, that it will
                  not claim any such immunity in any
                  Proceedings.

                 

              
	
                14. Definitions

                 

              
	
                As
                  used in this Agreement:—

                 

              
	
                “Additional
                  Termination Event” has
                  the meaning specified in Section 5(b).

                 

              
	
                “Affected
                  Party” has
                  the meaning specified in Section 5(b).

                 

              
	
                “Affected
                  Transactions” means
                  (a) with respect to any Termination Event
                  consisting of an Illegality, Tax
                  Event or Tax Event Upon Merger, all Transactions
                  affected by the occurrence of such Termination Event
                  and (b) with respect to any other Termination Event,
                  all Transactions.

                 

              
	
                “Affiliate”
                  means,
                  subject to the Schedule, in relation to any person, any
                  entity controlled, directly or
                  indirectly, by the person, any entity that controls,
                  directly or indirectly, the person or
                  any entity directly or indirectly under common
                  control with the person. For this
                  purpose, “control” of any entity or person means
                  ownership of a majority of the voting power of the entity
                  or person.

                 

              
	
                “Applicable
                  Rate” means:—

                 

              
	
                (a) in
                  respect of obligations payable or deliverable (or which would have been
                  but for Section 2(a)(iii))
                  by a Defaulting Party, the Default Rate;

                 

              
	
                (b) in
                  respect of an obligation
                  to pay an amount under Section 6(e) of
                  either party from and after the date
                  (determined in accordance with Section 6(d)(ii)) on which
                  that amount is payable, the Default Rate;

                 

              
	
                (c) in
                  respect of
                  all other obligations payable or deliverable
                  (or which would have been but for
                  Section 2(a)(iii)) by a Non-defaulting Party, the
                  Non-default Rate; and

                 

              
	
                (d) in
                  all other cases, the Termination Rate.

                 

              
	
                “Burdened
                  Party” has
                  the meaning specified in Section 5(b).

                 

              
	
                “Change
                  in Tax Law” means
                  the enactment,
                  promulgation, execution or ratification of,
                  or any change in or
                  amendment to, any law (or
                  in the application or official interpretation
                  of
                  any law) that occurs on or after the
                  date on which the relevant Transaction is entered
                  into.

                 

              
	
                “consent”
                  includes
                  a consent, approval, action, authorisation, exemption,
                  notice, filing, registration or
                  exchange control consent.

                 

              
	
                “Credit
                  Event Upon Merger” has
                  the meaning specified in Section 5(b).

                 

              
	
                “Credit
                  Support Document” means
                  any
                  agreement or instrument that is specified as such
                  in
                  this Agreement.

                 

              
	
                “Credit
                  Support Provider” has
                  the meaning specified in the Schedule.

                 

              
	
                “Default
                  Rate” means
                  a rate per annum equal to the cost (without proof or evidence of
                  any actual cost) to the relevant payee (as
                  certified by it) if it were to fund or of funding the relevant
                  amount plus
                  1% per
                  annum.

                 

              
	
                “Defaulting
                  Party” has
                  the meaning specified in Section 6(a).

                 

              
	
                “Early
                  Termination Date” means
                  the date determined in accordance with Section 6(a) or
                  6(b)(iv).

                 

              
	
                “Event
                  of Default” has
                  the meaning specified in Section 5(a) and,
                  if applicable, in the Schedule.

                 

              
	
                “Illegality”
                  has
                  the meaning specified in Section 5(b).

                 

              
	
                “Indemnifiable
                  Tax” means
                  any Tax other than a Tax that would not be imposed
                  in respect of a payment
                  under this Agreement but for a present or former connection
                  between the jurisdiction of the government or
                  taxation authority imposing
                  such Tax and the recipient of such payment or a person
                  related to such recipient
                  (including, without limitation, a connection arising from such
                  recipient or related person being or having
                  been a citizen or resident of such jurisdiction, or
                  being or having been organised,
                  present or engaged in a
                  trade or business in such jurisdiction, or having or having
                  had a permanent establishment or fixed place of
                  business in such jurisdiction,
                  but excluding a connection arising solely from such
                  recipient or related person
                  having executed, delivered, performed its obligations or
                  received a payment under, or enforced, this
                  Agreement or a Credit Support Document).

                 

              
	
                “law” includes
                  any treaty, law, rule
                  or regulation (as modified, in the case of tax matters,
                  by the practice of
                  any relevant governmental revenue authority) and
                  “lawful”
                  and
                  “unlawful”
                  will
                  be construed
                  accordingly.

                 

              
	
                “Local
                  Business Day” means,
                  subject to the Schedule, a day on which commercial
                  banks are open for business (including dealings
                  in foreign exchange and foreign currency deposits) (a)
                  in relation to any
                  obligation under Section 2(a)(i), in
                  the place(s) specified in the relevant Confirmation
                  or, if not so specified,
                  as otherwise agreed by
                  the parties in writing or determined pursuant
                  to
                  provisions contained, or incorporated
                  by reference, in this Agreement, (b) in relation
                  to any other payment, in the place where the relevant account
                  is located and, if different, in the principal
                  financial centre, if any, of the currency of
                  such payment, (c) in relation to any notice
                  or other communication, including notice contemplated under
                  Section 5(a)(i), in the
                  city specified in the address for notice provided by
                  the recipient and, in the case of a notice contemplated
                  by Section 2(b), in the place where the relevant
                  new account is to
                  be located and (d) in relation to
                  Section 5(a)(v)(2), in the
                  relevant locations for performance with respect to such Specified
                  Transaction.

                 

              
	
                “Loss”
                  means,
                  with respect to this Agreement or one or more Terminated Transactions,
                  as
                  the case may be, and
                  a party, the Termination Currency Equivalent of an amount
                  that party reasonably determines in good faith to be
                  its total losses and
                  costs (or
                  gain, in which case expressed
                  as
                  a negative number) in connection with this Agreement
                  or that Terminated Transaction
                  or group of Terminated Transactions, as the case may
                  be, including any loss of
                  bargain, cost of funding or, at the election of such
                  party but without duplication, loss or
                  cost incurred as a result
                  of its terminating, liquidating, obtaining or
                  reestablishing any hedge or related
                  trading position (or any gain
                  resulting from any of them). Loss includes losses and
                  costs
                  (or gains) in respect of any payment or delivery
                  required to have been made
                  (assuming satisfaction of each applicable
                  condition precedent) on or before the relevant Early Termination Date
                  and not made, except, so as to avoid duplication, if
                  Section 6(e)(i)(1) or (3) or
                  6(e)(ii)(2)(A) applies. Loss
                  does not include a party's legal fees and out-of-pocket expenses referred to under
                  Section
                  11. A party will determine its Loss as of the relevant
                  Early Termination Date, or, if that is not reasonably
                  practicable, as of the earliest date thereafter as is
                  reasonably practicable. A party may (but need not) determine
                  its Loss by reference to
                  quotations of relevant rates or prices from
                  one or more leading dealers in the relevant
                  markets.

                 

              
	
                “Market
                  Quotation” means,
                  with respect to one or more Terminated Transactions and
                  a party making the
                  determination, an amount determined on the basis of
                  quotations from Reference Market-makers. Each
                  quotation will be for an amount, if any, that would be paid
                  to such party (expressed as a negative number)
                  or by such party (expressed
                  as a positive number) in consideration of an
                  agreement between such party (taking
                  into account any existing Credit Support Document with
                  respect to the obligations of such party) and the
                  quoting Reference Market-maker to enter into a transaction (the
                  “Replacement Transaction”) that would
                  have the effect of preserving for such party the
                  economic equivalent of any payment or delivery (whether
                  the underlying obligation was absolute or contingent and
                  assuming the satisfaction of each applicable
                  condition precedent) by the
                  parties under Section 2(a)(i) in respect of such
                  Terminated Transaction or group
                  of Terminated Transactions that
                  would, but for the occurrence of the relevant
                  Early Termination Date, have 

                 

              
	
                been
                  required after that date. For
                  this purpose, Unpaid Amounts in respect of the Terminated Transaction or
                  group of Terminated Transactions are to be excluded but,
                  without limitation, any payment or delivery that
                  would, but for the relevant Early Termination Date, have
                  been required (assuming satisfaction of each
                  applicable condition precedent) after that Early Termination
                  Date is to be included. The Replacement
                  Transaction would be subject
                  to such documentation as such party and the Reference Market-maker may, in
                  good faith, agree. The
                  party making the determination (or its
                  agent) will request each Reference
                  Market maker to provide its quotation to the extent
                  reasonably practicable as of the same day and time
                  (without regard to different time zones) on or as soon as
                  reasonably practicable after the relevant Early
                  Termination Date. The day and
                  time as of which those quotations are to be obtained
                  will be selected in good
                  faith by the party obliged to
                  make a determination under Section 6(e), and,
                  if each party is so obliged, after
                  consultation with the other. If more than three quotations
                  are provided, the Market Quotation will be the
                  arithmetic mean of the quotations, without
                  regard to the quotations having the highest
                  and lowest values. If
                  exactly three such quotations are provided, the Market
                  Quotation will be the quotation remaining after
                  disregarding the highest and lowest quotations. For this
                  purpose, if more than one quotation has the same
                  highest value or lowest
                  value, then one of such quotations shall be disregarded.
                  If fewer than three quotations are provided, it will
                  be deemed that the Market Quotation in respect
                  of
                  such Terminated Transaction or group
                  of Terminated Transactions cannot be
                  determined.

                 

              
	
                “Non-default
                  Rate” means
                  a rate
                  per annum equal to the cost (without proof or evidence of any actual cost)
                  to the Non-defaulting Party (as certified by it) if it were
                  to fund the relevant amount.

                 

              
	
                “Non-defaulting
                  Party” has
                  the meaning specified in Section 6(a).

                 

              
	
                “Office”
                  means
                  a branch or office of a party, which may be such party's head or
                  home
                  office.

                 

              
	
                “Potential
                  Event of Default” means
                  any
                  event which, with the giving of notice or
                  the lapse of time or both,
                  would constitute an Event of Default.

                 

              
	
                “Reference
                  Market-makers” means
                  four leading dealers in the relevant
                  market selected by the party
                  determining a Market Quotation in good faith (a) from among
                  dealers of the highest credit standing which
                  satisfy all the criteria that such party applies generally
                  at the time in deciding whether to offer or to make
                  an extension of credit and
                  (b) to the extent practicable, from among such dealers
                  having an office in the same city.

                 

              
	
                “Relevant
                  Jurisdiction” means,
                  with respect to a party, the jurisdictions (a) in
                  which the party is incorporated, organised, managed
                  and controlled or considered to have
                  its seat, (b) where an Office through
                  which the party is acting for purposes of this Agreement is
                  located, (c) in which the party executes this
                  Agreement and (d) in relation to any payment, from or
                  through which such payment is
                  made.

                 

              
	
                “Scheduled
                  Payment Date” means
                  a date on which a payment or delivery is to be
                  made under Section 2(a)(i)
                  with respect to a Transaction.

                 

              
	
                “Set-off”
                  means
                  set-off, offset, combination of accounts, right of retention or
                  withholding or similar right
                  or requirement to which
                  the payer of an amount
                  under Section 6 is entitled
                  or
                  subject (whether arising under
                  this Agreement, another contract, applicable law or
                  otherwise) that is exercised by, or imposed on, such
                  payer.

                 

              
	
                “Settlement
                  Amount” means,
                  with respect to a party and any Early Termination Date, the sum
                  of:—

                 

              
	
                (a) the
                  Termination Currency
                  Equivalent of the Market Quotations (whether
                  positive or negative) for each
                  Terminated Transaction or group
                  of Terminated Transactions for which
                  a
                  Market Quotation is determined; and

                 

              
	
                (b) such
                  party's Loss (whether positive or negative and without reference
                  to any Unpaid Amounts) for
                  each Terminated Transaction or
                  group of Terminated Transactions for which a Market Quotation cannot be
                  determined or would not (in the reasonable belief of the
                  party making the determination) produce a
                  commercially reasonable result.

                 

              
	
                “Specified
                  Entity” has
                  the meaning specified in the Schedule.

                 

              
	
                “Specified
                  Indebtedness” means,
                  subject to the Schedule, any obligation
                  (whether present or future,
                  contingent or otherwise, as principal or surety or
                  otherwise) in respect of borrowed money.

                 

              
	
                “Specified
                  Transaction” means,
                  subject
                  to the Schedule, (a) any transaction (including
                  an agreement with respect
                  thereto) now existing or hereafter
                  entered into between one party to this
                  Agreement (or any Credit Support Provider of such party or any
                  applicable Specified Entity of such party) and the other
                  party to this Agreement (or
                  any Credit Support Provider of
                  such
                  other party or
                  any applicable Specified Entity of
                  such other party) which is
                  a rate swap transaction, basis swap, forward rate
                  transaction, commodity
                  swap, commodity option, equity or
                  equity index swap, equity or equity index option, bond
                  option, interest rate option, foreign exchange transaction,
                  cap transaction, floor transaction, collar
                  transaction, currency swap
                  transaction, cross-currency rate swap
                  transaction, currency option or any other similar
                  transaction (including any option
                  with respect to any of these
                  transactions), (b) any combination of these
                  transactions and (c) any other
                  transaction identified as a Specified
                  Transaction in  this Agreement or the
                  relevant
                  confirmation.

                 

              
	
                “Stamp
                  Tax” means
                  any stamp, registration, documentation or similar tax.

                 

              
	
                “Tax”
                  means
                  any present
                  or future tax, levy, impost, duty, charge,
                  assessment or fee of any nature (including
                  interest, penalties and additions thereto) that is imposed
                  by any government or other taxing authority in
                  respect of any payment under this Agreement
                  other than a stamp, registration, documentation
                  or
                  similar tax.

                 

              
	
                “Tax
                  Event” has
                  the meaning specified in Section 5(b).

                 

              
	
                “Tax
                  Event Upon Merger” has
                  the meaning specified in Section 5(b).

                 

              
	
                “Terminated
                  Transactions” means
                  with respect to any Early Termination Date
                  (a) if resulting from a Termination Event, all Affected Transactions
                  and (b) if resulting from
                  an
                  Event of Default, all Transactions
                  (in either case) in effect immediately
                  before the effectiveness of the notice designating that Early Termination
                  Date (or, if “Automatic Early Termination”
                  applies, immediately before that Early Termination Date).

                 

              
	
                “Termination
                  Currency” has
                  the meaning specified in the Schedule.

                 

              
	
                “Termination
                  Currency Equivalent” means,
                  in respect of any
                  amount denominated in the Termination
                  Currency, such Termination Currency
                  amount and, in respect of any amount denominated in a currency other
                  than the Termination Currency
                  (the “Other Currency”), the amount in
                  the Termination Currency determined
                  by the party making the relevant determination as
                  being required to purchase such amount of such Other
                  Currency as at the relevant Early
                  Termination Date, or, if the relevant Market Quotation or Loss (as the case
                  may be), is determined as of a
                  later date, that later date, with the
                  Termination Currency at the rate equal to
                  the spot exchange rate of the foreign exchange agent
                  (selected as provided below) for the purchase of such
                  Other Currency with the Termination Currency at or about 11:00
                  a.m. (in the city in which such foreign
                  exchange agent is located) on such date as would be
                  customary for the determination of such a rate for the
                  purchase of such Other Currency for value on the
                  relevant Early Termination Date
                  or that later date. The
                  foreign exchange agent will, if only one party is obliged
                  to make a determination under Section 6(e), be
                  selected in good faith by that party and
                  otherwise will be agreed by the parties.

                 

              
	
                “Termination
                  Event” means
                  an Illegality, a Tax Event or a Tax Event Upon Merger or,
                  if specified to be
                  applicable, a Credit Event Upon Merger or an Additional
                  Termination Event.

                 

              
	
                “Termination
                  Rate” means
                  a rate per annum equal to the arithmetic mean of
                  the cost (without proof or
                  evidence of any actual cost) to each party (as
                  certified by such party) if it were to
                  fund or of funding such amounts.

                 

              
	
                “Unpaid
                  Amounts” owing
                  to any
                  party means, with respect to an Early Termination
                  Date, the aggregate of
                  (a) in respect of all Terminated
                  Transactions, the amounts
                  that became payable (or that would have become
                  payable but for Section 2(a)(iii)) to such party under
                  Section 2(a)(i) on or prior to such Early Termination
                  Date and which remain unpaid as at such Early
                  Termination Date and (b) in respect of each Terminated
                  Transaction, for each obligation
                  under Section 2(a)(i) which was (or
                  would have been but for
                  Section 2(a) (iii)) required
                  to be settled by delivery to such party on or prior to such Early Termination Date
                  and which has not been so settled as at such Early
                  Termination Date, an amount equal to the fair market 

                 

              
	
                value
                  of that which was (or would have been) required to be delivered
                  as of
                  the originally scheduled date
                  for delivery, in each case
                  together with (to the extent permitted
                  under applicable law) interest, in the currency
                  of such amounts, from
                  (and including) the date such amounts or
                  obligations were or would have been required
                  to have been paid or
                  performed to (but excluding) such Early
                  Termination Date, at the Applicable Rate. Such
                  amounts of interest will be calculated on the basis of
                  daily compounding and the actual number of days
                  elapsed. The fair market value of any obligation referred to in
                  clause (b) above shall be reasonably
                  determined by the party
                  obliged to make the determination
                  under Section 6(e) or, if each party is so obliged,
                  it shall be the average of the Termination Currency
                  Equivalents of the fair market values reasonably
                  determined by both parties.

                 

              
	
                IN
                  WITNESS WHEREOF the parties have executed this document on the
                  respective dates specified below with effect from
                  the date specified on the first page of this
                  document.

              

      

      

      

      
        	
                SWISS
                  RE FINANCIAL PRODUCTS CORPORATION 

              	
                HSBC
                  Bank USA, National Association, not individually, but solely as
                  trustee on
                  behalf of the
                  Supplemental Interest Trust with respect to Nomura Home Equity
                  Loan, Inc.,
                  Home Equity Loan Trust, Series 2006-HE3, Asset-Backed Certificates,
                  Series
                  2006-HE3.

              

      

      

      

      
        	
                By:
                  _________________________________

                Name:
                  

                Title:
                  

                Date:
                  August 31, 2006

              	
                By:
                  ________________________________

                Name: 

                Title:

                Date:
                  August 31, 2006

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ISDAâ

      International
        Swaps and Derivatives Association, Inc.

      

       

      
        (1) 
          SCHEDULE

      

       

      to
        the

      Master
        Agreement

      

      dated
        as
        of August 31, 2006, 

      

      between
        SWISS
        RE FINANCIAL PRODUCTS CORPORATION ("SRFP")
        and
HSBC
        Bank USA, National Association, not individually, but solely as trustee on
        behalf of the
        Supplemental Interest Trust with respect to Nomura
        Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-HE3, Asset-Backed
        Certificates, Series 2006-HE3 ("Counterparty")

      

      B.  Part
        1. Termination Provisions

       

      

      (a) "Specified
        Entity"
        means in
        relation to SRFP for the purpose of:

      

      Section
        5(a)(v),                   
 None,

      Section
        5(a)(vi),                  
 None,

      Section
        5(a)(vii),                 
 None,

      Section
        5(b)(iv),                  
 None,

      

      and
        in
        relation to Counterparty for the purpose of:

      

      Section
        5(a)(v),                   
 None,

      Section
        5(a)(vi),                  
 None,

      Section
        5(a)(vii),                 
 None,

      Section
        5(b)(iv),                  
 None.

      

      (b) “Specified
        Transaction”
        will not
        be applicable to SRFP and Counterparty.

      

      (c) The
        “Breach
        of Agreement”
        provisions of Section 5(a)(ii) of the Agreement will be inapplicable to SRFP
        and
        Counterparty.

      

      (d) 
        The
“Credit
        Support Default”
        provisions of Section 5(a)(iii) of the Agreement will be inapplicable to
        SRFP
        and Counterparty.

      

      (e) 
        The
“Misrepresentation”
        provisions
        of Section 5(a)(iv) of the Agreement will be inapplicable to SRFP and
        Counterparty.

      

      (f) 
        The
“Default
        Under Specified Transaction”
        provisions of Section 5(a)(v) of the Agreement will be inapplicable to SRFP
        and
        Counterparty.

      

      (g) 
        The
“Bankruptcy”
        provision of Section 5(a)(vii)(2) of the Agreement will be inapplicable to
        Counterparty.

      

      (h) The
        “Merger
        Without Assumption”
        provision of Section 5(a)(viii) will
        be
        inapplicable to Counterparty.

      

      (i) The
        "Cross
        Default"
        provisions of Section 5(a)(vi) of this Agreement will be inapplicable to
        SRFP
        and Counterparty.

      

      (j) The
        "Credit
        Event Upon Merger"
        provisions of Section 5(b)(iv) of this Agreement will be inapplicable to
        SRFP
        and Counterparty.

      

      (k)
        The
"Automatic
        Early Termination"
        provisions of Section 6(a) of this Agreement will be inapplicable to SRFP
        and
        Counterparty.

      

      (l)
        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.

      

      (m) "Termination
        Currency"
        means
        U.S. Dollars.

      

      (n) Additional
        Termination Event will
        apply. An Additional Termination Event will occur upon the occurrence of
        any of
        the following events:

      
        

        
          	 	
                  (i)

                	
                  If
                    a Rating
                    Agency Trigger Event (as
                    defined herein) has occurred and SRFP has not complied with Part
                    5,
                    paragraph (10), an Additional Termination Event shall have occurred
                    with
                    respect to SRFP and SRFP shall be the sole Affected Party with
                    respect to
                    such Additional Termination Event;

                

        

        

        
          	 	
                  (ii)

                	
                  The
                    Trust Fund is terminated pursuant to the Pooling and Servicing
                    Agreement
                    (other than in accordance with clause (iii) below) and Counterparty
                    shall
                    be the sole Affected Party with respect to such Additional Termination
                    Event provided, however, that notwithstanding Section 6(b)(iv)
                    of the
                    Agreement, only Counterparty shall have the right to designate
                    an Early
                    Termination Date in respect of this Additional Termination
                    Event;

                

        

        

        (iii)
           If, at any time, the Master Servicer purchases the Mortgage Loans and
          related REO Properties pursuant to Section 10.01 of the Pooling and Servicing
          Agreement (defined below) (an “Optional Termination”), an Additional Termination
          Event shall have occurred with respect to Counterparty and each of SRFP
          and
          Counterparty shall be an Affected Party with respect to such Additional
          Termination Event; provided, however, that notwithstanding Section 6(b)(iv)
          of
          the Agreement, only Counterparty shall have the right to designate an Early
          Termination Date in respect of this Additional Termination Event. If such
          an
          Additional Termination Event occurs then the definition of Notional Amount
          in
          the Confirmation shall be deleted in its entirety and replaced with the
          following: “With respect to each Calculation Period the Notional Amount as set
          forth in Appendix A attached hereto multiplied by a factor. The factor
          will be
          set at the time of the Optional Termination to be the quotient of (i) the
          Notional Amount immediately prior to the Optional Termination divided by
          (ii)
          the Notional Amount set forth in Appendix A for the period immediately
          prior to
          the Optional Termination.”;

        

        (iv)
          The
          Pooling and Servicing Agreement is amended or modified in a manner
          which would have a material adverse effect on SFRP without the prior
          written consent of SRFP (such consent not to be unreasonably withheld),
          where
          such consent is required under the terms of the Pooling and Servicing Agreement
          (defined below). Counterparty shall be the sole Affected Party with respect
          to
          such Additional Termination Event; or

        

        
          	 	
                  (v)

                	
                  If,
                    upon the occurrence of a Swap Disclosure Event (as defined in
                    Part 5(15)
                    below) SRFP has not, within 10 days after such Swap Disclosure
                    Event
                    complied with any of the provisions set forth in Part 5(15) below,
                    then an
                    Additional Termination Event shall have occurred with respect
                    to SRFP and
                    SRFP shall be the sole Affected Party with respect to such Additional
                    Termination Event.

                

        

      

       

      Part
        2. Tax Representations

      

      (a) Payer
        Tax Representation.
        For the
        purpose of Section 3(e) of this Agreement, SRFP and Counterparty will make
        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 representation made by the other party
        pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of the
        agreement of the other party 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) of this Agreement by reason of material prejudice to its legal
        or
        commercial position.

      

      (b) Payee
        Tax Representations.
        For the
        purpose of Section 3(f) of this Agreement, SRFP and Counterparty make the
        representations specified below, if any: 

      

      (i)
        SRFP
        represents that it is a corporation organized under the laws of the State
        of
        Delaware, and  

      (ii)
        Counterparty represents that it is the trustee and a national banking
        association organized under the laws of the United States.

      

      II.  PART
        3. AGREEMENT TO DELIVER DOCUMENTS

       

      

      For
        the
        purpose of Section 4(a)(i) and (ii) of this Agreement, each party agrees
        to
        deliver the following documents, as applicable:

      

      
        	
                Party
                  required

                to
                  deliver
                  document

              	
                Form/Document/Certificate

              	
                Date
                  by which

                to
                  be delivered

              	
                Covered
                  by Section 3(d) Representation

              

      

      

      (a)
        Tax
        forms

      

      
        	
                 

                Counterparty

              	
                 

                IRS
                  Form W-9 (or any successors thereto); each completed in a manner
                  reasonably satisfactory to SRFP.

              	
                 

                (i)
                  Before the first scheduled payment; (ii) promptly upon reasonable
                  demand
                  by SRFP; and (iii) promptly upon learning that any Form W-9 (or
                  any
                  successor thereto) previously provided by Counterparty has become
                  obsolete
                  or incorrect.

              	
                 

                N/A

              
	
                 

                SRFP

              	
                 

                IRS
                  Form W-9 (or any successors thereto); each completed in a manner
                  reasonably satisfactory to Counterparty.

              	
                 

                (i)
                  Before the first scheduled payment; (ii) promptly upon reasonable
                  demand
                  by Counterparty; and (iii) promptly upon learning that any Form
                  W-9 (or
                  any successor thereto) previously provided by SRFP has become obsolete
                  or
                  incorrect.

              	
                 

                N/A

              

      

      

      (b) Other
        documents

      

      
        	
                 

                SRFP

              	
                 

                A
                  copy of the financial statements of the Credit Support Provider
                  containing
                  the consolidated financial statements certified by independent
                  certified
                  public accountants and prepared in accordance with accounting principles
                  that are generally accepted in the United States of
                  America.

              	
                 

                As
                  soon as practicable after execution of this Agreement and thereafter
                  on
                  request.

              	
                 

                No

              
	
                 

                SRFP

              	
                 

                Evidence
                  of (i) the authority of SRFP and its Credit Support Provider, as
                  applicable, to enter into this Agreement and supplemental Confirmations
                  and the Credit Support Document specified in Part 4, Section (f)
                  of this
                  Schedule, as the case may be, and
                  (ii) the authority and signature specimens of persons authorised
                  to sign
                  on behalf of SRFP and its Credit Support Provider, as applicable,
                  reasonably satisfactory to the other party.

              	
                 

                As
                  soon as practicable after execution of this Agreement or
                  execution of a Confirmation of a Transaction, as applicable.
                  

              	
                 

                Yes
                  

              
	
                 

                Counterparty
                  

              	
                 

                Evidence
                  of (i) the authority of Counterparty to enter into this Agreement
                  and
                  supplemental Confirmations and (ii) the authority and signature
                  specimens
                  of persons authorised to sign on behalf of Counterparty reasonably
                  satisfactory to the other party.

              	
                 

                Upon
                  execution of this Agreement. 

              	
                 

                Yes

              
	
                 

                SRFP
                  

              	
                 

                A
                  duly executed copy of the Credit Support Document specified in
                  Part 4,
                  Section (f) of this Schedule to be delivered by SRFP.

              	
                 

                As
                  soon as practicable after execution of this Agreement.

              	
                 

                No

              
	
                 

                SRFP 

                 

              	
                 

                An
                  opinion of SRFP’s counsel addressed to Counterparty in form and substance
                  reasonably acceptable to Counterparty.

              	
                 

                Closing
                  Date.

              	
                 

                No

              
	
                 

                Counterparty 

                 

              	
                 

                An
                  opinion of Counterparty’s counsel addressed to SRFP in form and substance
                  reasonably acceptable to SRFP.

              	
                 

                Closing
                  Date.

              	
                 

                No

              
	
                Counterparty

              	
                The
                  Pooling and Servicing Agreement

              	
                Closing
                  Date.

              	
                Yes

              

      

      

      Part
        4. Miscellaneous

      

      (a)
        Addresses
        for Notices.
        For the
        purpose of Section 12(a) of this Agreement:

      

      Address
        for notices or communications to SRFP:

      

      
        	(1)  	
                Address
                  for notices or communications to SRFP (other than by facsimile)
                  :

              

      

      

      Address:                  
         55
        East
        52nd
        Street            Attention: (1)
        Head
        of Operations;

      New
        York,
        New York   (2)
        Legal
        Department

      10055

      

      
        	(2)  	
                For
                  the purpose of facsimile notices or communications under this Agreement
                  (other than a notice or communication under Section 5 or
                  6):

              

      

      

      Facsimile
        No.:           (212)
        317-5335

      Attention               
          Operations

      

      With
        copy
        to:

      

      Facsimile
        No.:           (212)
        317-5475

      Attention:              
          Legal
        Department

      

      Telephone
        number for oral confirmation of receipt of facsimile in legible form: (212)
        317-5161

      

      Address
        for notices or communications to Counterparty: 

      

      HSBC
        Bank
        USA, National Association

      452
        Fifth
        Avenue

      New
        York,
        NY 10018

      Attention:
        NHEL 06-HE3, Corporate Trust - Susie Moy 

      Phone
        No:
        (212) 525-1501 

      Facsimile
        No: (212) 525-1300

      

      With
        copy
        to:

       

      Wells
        Fargo Bank, N.A.

      9062
        Old
        Annapolis Road

      Columbia,
        MD 21045

      Attention:
        NHEL 06-HE3 (Client Manager)

      Fax:
        (410) 715-2380

      

      

      (b) Process
        Agent.
        For the
        purpose of Section 13(c) of this Agreement,

      

      SRFP
        appoints as its Process Agent: None. 

      

      Counterparty
        appoints as its Process Agent: None.

      

      (c) Offices.
        With
        respect to SRFP, the provisions of Section 10(a) will apply to this
        Agreement.

      

      (d) Multibranch
        Party.
        For the
        purpose of Section 10(c) of this Agreement:

      

      SRFP
        is
        not a Multibranch Party; and

      

      Counterparty
        is not a Multibranch Party. 

      

      (e) Calculation
        Agent.
        The
        Calculation Agent shall be SRFP.

      

      (f) Credit
        Support Document.
        Details
        of any Credit Support Document:

      

      
        	 	
                (i)

              	
                in
                  the case of SRFP, Guaranty of Swiss Re dated as of the date hereof,
                  in the
                  form annexed hereto as Exhibit A.

              

      

      

      
        	 	
                (ii)

              	
                in
                  the case of Counterparty, the Pooling and Servicing
                  Agreement.

              

      

      

      (g) Credit
        Support Provider.
        "Credit
        Support Provider"
        shall
        mean, in respect of SRFP, Swiss Re, and, in respect of Counterparty,
        None.

      

      (h) Governing
        Law.
        This
        Agreement will be governed by and construed in accordance with the laws of
        the
        State of New York without reference to choice of law doctrine, other than
        New
        York General Obligations Law Sections 5-1401 and 5-1402. 

      

      (i) Netting
        of Payments.
        Subparagraph (ii) of Section 2(c) of this Agreement will apply, unless otherwise
        stated in any Confirmation for a Transaction.

      

      (j) "Affiliate",
        with
        respect to SRFP, shall have the meaning specified in Section 14 of this
        Agreement, and with respect to Counterparty shall mean: None.

      

      (k) Jurisdiction.
        Section
        13(b) of this Agreement is hereby amended by: (i) deleting in the second
        line of
        subparagraph (i) thereof the word "non-": and (ii) deleting the final paragraph
        thereof.

      

      A.  Part
        5. Other Provisions

       

      
        	1.  	
                Definitions

              

      

       

      This
        Agreement, including each Confirmation and each Swap Transaction, is subject
        to
        the 2000 ISDA Definitions, as amended, supplemented, updated, and superseded
        from time to time (the "Definitions"), as published by the International
        Swaps
        and Derivatives Association, Inc. ("ISDA") and will be governed in all respects
        by the Definitions (except that references to "Swap Transactions" shall be
        deemed to be references to "Transactions"). The Definitions are incorporated
        by
        reference in, and made part of, this Agreement and each Confirmation as if
        set
        forth in full in this Agreement and such Confirmations. In the event of any
        inconsistency between the provisions of this Agreement and the Definitions,
        this
        Agreement will prevail (and, in the event of any inconsistency between any
        Confirmation and the Definitions, the Confirmation will control). Any reference
        in a Confirmation to any Definitions which are amended or supplemented in
        this
        Schedule shall be deemed to be a reference to such Definitions as so amended
        or
        supplemented, unless the Confirmation states, by specific reference to any
        such
        amendment or supplement, that such amendment or supplement will not apply
        in
        respect of the Transaction to which such Confirmation relates. Any capitalized
        terms used but not otherwise defined in this Agreement shall have the meanings
        assigned to them (or incorporated by reference) in the Pooling and Servicing
        Agreement (the “Pooling and Servicing Agreement”), dated as of August 1, 2006,
        among Nomura Home Equity Loan, Inc., as depositor (the “Depositor”), Nomura
        Credit & Capital, Inc., as sponsor (in such capacity, the “Sponsor”), Wells
        Fargo Bank, National Association, as master servicer (the “Master Servicer”) and
        securities administrator (the “Securities Administrator”), Ocwen Loan Servicing
        LLC, as servicer (the “Servicer”) and HSBC Bank, USA, National Association, not
        in its individual capacity, but solely as trustee (the “Trustee”).

       

      
        	2.  	
                Set-Off

              

      

      

      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. The provisions
        for
        Set-off set forth in Section 6(e) of the Agreement shall not apply for purposes
        of this Transaction.

      

       

      
        	3.  	
                Consent
                  to Recording

              

      

      

      Each
        party (a) consents to the recording of the telephone conversations of trading
        and marketing personnel of the parties in connection with this Agreement
        or any
        potential Transaction between the parties and (b) agrees to obtain any necessary
        consent of, and give notice of such recording to, its personnel.

      

       

      
        	4.  	
                Additional
                  Representations and Agreements 

              

      

      

      Each
        party represents to the other party (which representations shall be deemed
        repeated by each party on each date on which a Transaction is entered into
        and
        shall be representations for all purposes of this Agreement including, without
        limitation, Sections 3, 4, and 5(a)(iv) hereof):

      

      
        	 	
                (i)
                  

              	
                No
                  Agency.
                  It is entering into this Agreement and each Transaction as principal
                  and
                  not as agent of any person nor in any other capacity, fiduciary
                  or
                  otherwise;

              

      

      

      (ii) (a)  
         Non-Reliance.
        In
        the
        case of SFRP, it is acting for its own account and in the case of the
        Counterparty, it is acting as trustee on behalf of the Supplemental Interest
        Trust. In the case of SFRP, it has made its own independent decisions to
        enter
        into that Transaction and as to whether that Transaction is appropriate or
        proper for it based upon its own judgment and upon advice from such advisors
        as
        it has deemed necessary and in the case of the Counterparty, it has entered
        into
        this Transaction pursuant to the terms of the Pooling and Servicing Agreement
        and at the direction of the Issuer. It is not relying on any communication
        (written or oral) of the other party as investment advice or as a recommendation
        to enter into that Transaction; it being understood that information and
        explanations related to the terms and conditions of a Transaction shall not
        be
        considered investment advice or a recommendation to enter into that Transaction.
        No communication (written or oral) received from the other party shall be
        deemed
        to be an assurance or guarantee as to the expected results of that
        Transaction.,

      

      (b)
          Assessment
        and Understanding. It
        is
        capable of evaluating and understanding (on its own behalf or through
        independent professional advice), and understands and accepts, the terms,
        conditions and risks of this Agreement and each Transaction hereunder. It
        is
        also capable of assuming, and assumes, all financial and other risks of this
        Agreement and each Transaction hereunder, and

      

      (c)
         Status
        of Parties. The
        other
        party is not acting as a fiduciary for or an adviser to it in respect of
        that
        Transaction;

      

      (iii) Eligible
        Contract Participant.
        It is an
        "eligible contract participant" as defined in Section 1a(12) of the Commodity
        Exchange Act, as amended;

      

      (iv) Individual
        Negotiation.
        This
        Agreement and each Transaction hereunder is subject to individual negotiation
        by
        the parties.

      

       

      
        	5.  	
                Waiver
                  of Jury
                  Trial

              

      

      

      Each
        party hereby irrevocably waives its right to jury trial with respect to any
        obligation arising under, or in connection with, this Agreement.

      

       

      
        	6.  	
                Severability

              

      

       

      Any
        provision of this Agreement which is prohibited or unenforceable in any
        jurisdiction in respect of any Transaction shall, as to such Transaction,
        be
        ineffective to the extent of such prohibition or unenforceability but without
        invalidating the remaining provisions of this Agreement or affecting the
        validity or enforceability of such provision in any other jurisdiction or
        in
        respect of any other Transaction, unless such severance shall substantially
        impair the benefits of the remaining portions of this Agreement to, or changes
        the reciprocal obligations of, either of the parties. The parties hereto
        shall
        endeavor in good faith negotiations to replace the prohibited or unenforceable
        provision with a valid provision the economic effect of which comes as close
        as
        possible to that of the prohibited or unenforceable provision.

       

       

      
        	7.  	
                Non-Recourse;
                  Priority
                  of Payments 

              

      

       

      Notwithstanding
        any provision herein or in the Agreement to the contrary, the obligations
        of
        Counterparty hereunder are limited recourse obligations of Counterparty,
        payable
        solely from the Swap Account and the proceeds thereof, in accordance with
        the
        terms of the Pooling and Servicing Agreement. In the event that the Swap
        Account
        and proceeds thereof should be insufficient to satisfy all claims outstanding
        and following the realization of the Swap Account and the proceeds thereof,
        any
        claims against or obligations of Counterparty under the Agreement or any
        other
        confirmation thereunder still outstanding shall be extinguished and thereafter
        not revive. The trustee shall not have liability for any failure or delay
        in
        making a payment hereunder to SRFP due to any failure or delay in receiving
        the
        amount in the Swap Account from the Supplemental Interest Trust.

       

      SRFP
        hereby agrees that, notwithstanding any provision of this agreement to the
        contrary, Counterparty’s obligations to pay any amounts owing under this
        Agreement shall be subject to Section 5.04 of the Pooling and Servicing
        Agreement and SRFP’s right to receive payment of such amounts shall be subject
        to Section 5.04 of the Pooling and Servicing Agreement.

       

      This
        provision shall survive the termination of this Agreement.

       

       

      
        	8.  	
                Proceedings

              

      

      

      SRFP
        shall not institute against or cause any other person to institute against,
        or
        join any other person in instituting against, the Counterparty, the Supplemental
        Interest Trust, or the trust formed pursuant to the Pooling and Servicing
        Agreement any bankruptcy, reorganization, arrangement, insolvency or liquidation
        proceedings, or other proceedings under any federal or state bankruptcy,
        dissolution or similar law, before a period of one year and one day (or,
        if
        longer, any applicable preference period) following indefeasible payment
        in full
        of the Certificates. This
        provision shall survive the termination of this Agreement.

      

       

      
        	9.  	
                Transfer,
                  Amendment
                  and Assignment. 

              

      

       

      No
        transfer, amendment, waiver, supplement, assignment or other modification
        of
        this Agreement shall be permitted by either party unless each of Standard
&
Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”) and Moody’s
        Investors Service, Inc. (“Moody’s”, each a “Rating Agency”) has been provided
        notice of the same and each of S&P, DBRS, Fitch and Moody’s confirms in
        writing (including by facsimile transmission) that it will not downgrade,
        qualify, withdraw or otherwise modify its then-current rating of the
        Certificates.

       

      
        	10.  	
                Downgrade

              

      

       

      If
        a
        Rating Agency Trigger Event occurs, then, within 30 days after the occurrence
        of
        such Rating Agency Trigger Event (unless, within such 30 days SRFP shall
        obtain
        written acknowledgment from each Rating Agency then providing a rating for
        the
        Certificates that the then-current ratings of the Certificates will not be
        downgraded, withdrawn or put on watch for downgrade notwithstanding the Rating
        Agency Trigger Event), SRFP shall, at its own expense and subject to the
        Rating
        Agency Condition, either (i) cause another entity that meets or exceeds the
        Approved Rating Thresholds to replace SRFP as party to this Agreement 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 SRFP’s obligations under this Agreement or (iii) post collateral according
        to the terms of an ISDA 1994 New York Law Credit Support Annex.

       

      If
        a
        Replacement Event occurs, then, within 10 days after the occurrence of such
        Replacement Event, SRFP shall, at its own expense and subject to the Rating
        Agency Condition, either (i) cause another entity that meets or exceeds the
        Approved Rating Thresholds to replace SRFP as party to this Agreement 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 SRFP’s obligations under this Agreement.

       

      A
        “Rating
        Agency Trigger Event”
        shall
        occur if (i) for so long as the Certificates are rated by S&P, the
        short-term rating of SRFP or its Credit Support Provider is below, or is
        downgraded below, “A-1” by S&P, or (ii) for so long as the Certificates are
        rated by Moody’s, the short-term rating of SRFP or its Credit Support Provider
        is withdrawn or downgraded below “P-1” by Moody’s (or, if SRFP or its Credit
        Support Provider do not have a short-term rating by Moody’s, the long-term
        rating of such entity is withdrawn or downgraded below “Aa3” by Moody’s). The
        lowest ratings which will not result in a Rating Agency Trigger Event shall
        constitute the “Approved Ratings Thresholds.”

       

      A
        “Replacement
        Event” shall
        occur if, for so long as the Certificates are rated by S&P, the long-term
        rating of SRFP or its Credit Support Provider is below, or is withdrawn or
        downgraded below, “BBB-” by S&P.

       

      “Rating
        Agency Condition”
        means,
        with respect to any particular proposed act or omission to act hereunder,
        that
        the party acting or failing to act has consulted with any of the Rating Agencies
        then providing a rating of the Certificates and received a prior written
        confirmation that the proposed action or inaction would not cause a downgrade
        or
        withdrawal of the then-current rating of the Certificates.

       

       

      
        	11.  	
                Limitation
                  of Liability 

              

      

       

      It
        is
        expressly understood and agreed by the parties hereto that (a) this Agreement
        is
        executed and delivered by HSBC Bank USA, National Association (“HSBC”), not in
        its individual capacity or personally, but solely as the trustee on behalf
        of
        the Supplemental Interest Trust, in the exercise of the powers and authority
        conferred and vested in it under the Pooling and Servicing Agreement (b)
        the
        representations, undertakings and agreements herein made on the part of the
        Counterparty are made and intended not as personal representations, undertakings
        and agreements by HSBC but are made and intended for the purpose of binding
        only
        the Counterparty, (c) nothing herein contained shall be construed as creating
        any liability on HSBC, in its individual capacity or personally, to perform
        any
        covenant either expressed or implied contained herein, all such liability,
        if
        any, being expressly waived by the parties who are signatories to this Agreement
        and by any person claiming by, through or under such parties, (d) under no
        circumstances shall HSBC be personally liable for the payment of any
        indebtedness or expenses of the Counterparty (including, but not limited
        to the
        Fixed Rate Payment) or be liable for the breach or failure of any obligation,
        representation, warranty or covenant made or undertaken by the Counterparty
        under this Agreement, and (e) the parties hereto acknowledge and agree that
        the
        Securities Administrator may act for Counterparty hereunder.

       

      
        	12.  	
                Regarding
                  SRFP

              

      

       

      Counterparty
        acknowledges and agrees that SRFP has had and will have no involvement in
        and,
        accordingly SRFP accepts no responsibility for: (i) the establishment,
        structure, or choice of assets of Counterparty; (ii) the selection of any
        person
        performing services for or acting on behalf of Counterparty; (iii) the selection
        of SRFP as the Counterparty; (iv) the terms of the Certificates; (v) the
        preparation of or passing on the disclosure and other information contained
        in
        any offering circular for the Certificates, the Trust Agreement, or any other
        agreements or documents used by Counterparty or any other party in connection
        with the marketing and sale of the Certificates; (vi) the ongoing operations
        and
        administration of Counterparty, including the furnishing of any information
        to
        Counterparty which is not specifically required under this Agreement; or
        (vii)
        any other aspect of Counterparty’s existence.

       

      
        	13.  	
                Failure
                  to Pay or Deliver

              

      

       

      The
        word
“third” shall be replaced by the word “first” in the third line of Section
        5(a)(i) of the Agreement.

       

      
        	14.  	
                Deduction
                  or Withholding for Tax

              

      

       

      The
        provisions of Section 2(d)(i)(4) and 2(d)(ii) of the Agreement shall not
        apply
        to Counterparty and Counterparty shall not be required to pay any additional
        amounts referred to therein.

       

      15.
        Compliance
        with Regulation AB

       

      (i) SRFP
        agrees and acknowledges that Nomura Home Equity Loan, Inc. (“Nomura”) is
        required under Regulation AB under the Securities Act of 1933, as amended,
        and
        the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
        (“Regulation AB”), to disclose certain financial information regarding SRFP or
        its group of affiliated entities, if applicable, depending on the aggregate
        “significant percentage” of this Agreement and any other derivative contracts
        between SRFP or its group of affiliated entities, if applicable, and
        Counterparty, 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, Nomura requests from SRFP the applicable financial
        information described in Item 1115 of Regulation AB (such request to be based
        on
        a reasonable determination by Nomura, in good faith, that such information
        is
        required under Regulation AB) (the “Swap Financial Disclosure”).

       

      (iii) Upon
        the
        occurrence of a Swap Disclosure Event, SRFP, at its own expense, shall (1)(a)
        either (i) provide to Nomura 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 Nomura to incorporation by reference of such current
        Swap Financial Disclosure as is filed with the Securities and Exchange
        Commission in the Exchange Act Reports of Nomura, (b) if applicable, cause
        its
        outside accounting firm to provide its consent to filing or incorporation
        by
        reference in the Exchange Act Reports of Nomura of such accounting firm’s report
        relating to their audits of such current Swap Financial Disclosure, and (c)
        provide to Nomura any updated Swap Financial Disclosure with respect to SRFP
        or
        any entity that consolidates SRFP within five days of the release of any
        such
        updated Swap Financial Disclosure; (2) secure another entity to replace SRFP
        as
        party to this Agreement on terms substantially similar to this Agreement
        which
        entity (or a guarantor therefore) meets or exceeds the Approved Rating
        Thresholds and which satisfies the Rating Agency Condition and which entity
        is
        able to comply with the requirements of Item 1115 of Regulation AB or (3)
        obtain
        a guaranty of SRFP’s obligations under this Agreement from an affiliate of the
        SRFP, subject to the Rating Agency Condition, that is able to comply with
        the
        financial information disclosure requirements of Item 1115 of Regulation
        AB,
        such that disclosure provided in respect of the affiliate will satisfy any
        disclosure requirements applicable to SRFP, and cause such affiliate to provide
        Swap Financial Disclosure. If permitted by Regulation AB, any required Swap
        Financial Disclosure may be provided by incorporation by reference from reports
        filed pursuant to the Exchange Act. 

       

      (iv) SRFP
        and
        the primary obligor under any Credit Support Document agree that, in the
        event
        that SRFP provides Swap Financial Disclosure to Nomura in accordance with
        Part
        5(15)(iii)(a) or causes its affiliate to provide Swap Financial Disclosure
        to
        Nomura in accordance with Part 5(15)(iii)(c), SRFP and such primary obligor
        will
        indemnify and hold harmless Nomura, its respective directors or officers
        and any
        person controlling Nomura, 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, when considered in conjunction with any other information
        regarding Party A or the derivative instrument being written by Party A in
        the
        free writing prospectus or the final prospectus supplement for Nomura Home
        Equity Loan, Inc., Home Equity Loan Trust, Series 2006-HE3, Asset-Backed
        Certificates, Series 2006-HE3, required to be stated therein or necessary
        to
        make the statements therein, in light of the circumstances under which they
        were
        made, not misleading.

       

      16.
        Third Party Beneficiary.
        Nomura
        shall be an express third party beneficiary of this Agreement as if a party
        hereto to the extent of Nomura’s rights explicitly specified
        herein.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

       

      

      
        	
                IN
                  WITNESS WHEREOF the parties have executed this document on the
                  respective dates specified below with effect from
                  the date specified on the first page of this
                  document.

              

      

      

      
        	
                SWISS
                  RE FINANCIAL PRODUCTS CORPORATION 

                 

                 

                 

                 

                 

                By:___________________________________

                Name:

                Title:

              	
                HSBC
                  Bank USA, National Association, not individually, 

                but
                  solely as trustee on behalf of the
                  Supplemental Interest 

                Trust
                  with respect to Nomura Home Equity Loan, Inc., 

                Home
                  Equity Loan Trust, Series 2006-HE3, Asset-Backed 

                Certificates,
                  Series 2006-HE3

                 

                 

                By:
                  _________________________________

                Name:

                Title:

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        A

       

      GUARANTY

      

      To:
        HSBC
        Bank USA, National Association (the “Beneficiary”), not individually, but solely
        as trustee on behalf of the Supplemental Interest Trust with respect to Nomura
        Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-HE3, Asset-Backed
        Certificates, Series 2006-HE3 (the “Rated Security”)

      

      1. The
        undersigned, SWISS REINSURANCE COMPANY, a Swiss company (the "Guarantor"),
        hereby absolutely and unconditionally guarantees the prompt payment as and
        when
        due of all obligations of its indirect, wholly-owned subsidiary SWISS RE
        FINANCIAL PRODUCTS CORPORATION, a Delaware corporation ("THE GUARANTEED
        SUBSIDIARY") under, in connection with or ancillary to an ISDA Master Agreement
        dated as of August 31, 2006 between the Beneficiary and the Guaranteed
        Subsidiary as amended or restated from time to time (the “Agreements”) which
        support the issuance of the Rated Security. In this Guarantee these obligations
        are referred to as the “Guaranteed Obligations”. This Guarantee is given solely
        for the benefit of, and is enforceable only by, the Beneficiary or any trustee
        as assignee of the Beneficiary to which this Guarantee has been validly assigned
        in accordance with applicable law and who is acting as trustee for the investors
        in the Rated Securities.

      

      2. This
        Guarantee constitutes a Guarantee of payment and not of collection and is
        not
        conditional or contingent upon any attempts to collect from, or pursue or
        exhaust any rights or remedies against, THE GUARANTEED SUBSIDIARY. A demand
        for
        payment hereunder may at the Beneficiary’s option be made in writing addressed
        to the Chief Financial Officer of the Guarantor. This Guarantee is not however
        dependent in any way on the manner of the demand for payment. Delay in making
        a
        claim will not affect the Guarantor’s obligations under this Guarantee unless
        the relevant legal limitation period has expired.

      

      3. This
        Guarantee constitutes, and is intended by the Guarantor to constitute, an
        unlimited non-accessory undertaking („unbeschr’nkte, nicht akzessorische
        Verpflichtung“) within the meaning of Article 111 of the Swiss Code of
        Obligations (‚CO‘) and is not a mere surety („Bürgschaft“) within the meaning of
        Article 492 et seq of the CO. 

      

      4. Notwithstanding
        any reference to the obligations of THE GUARANTEED SUBSIDIARY, the Guarantor’s
        obligations under this Guarantee are its absolute and independent obligations
        as
        a primary obligor. Payment of a claim hereunder is required as soon as the
        Guaranteed Obligations are due and payable.

      

      5. To
        the
        extent that any event or circumstance would give rise to any legal or equitable
        discharge, defence or other rights of the Guarantor under this Guarantee,
        but
        which event or circumstance would not give rise to any discharge, defence
        or
        other rights of THE GUARANTEED SUBSIDIARY under the Agreements, the Guarantor
        hereby fully waives, subject to paragraph 7 below, such discharge, defence,
        or
        other rights and the Guarantor’s liability hereunder shall continue as if such
        event or circumstance had not arisen.

      

      6. The
        Guarantor further agrees, subject to paragraph 7 below, that to the extent
        that
        any event or circumstance gives rise to any legal or equitable discharge,
        defence or other rights available to both the Guarantor under the Guarantee
        and
        THE GUARANTEED SUBSIDIARY under the Agreements, the Guarantor hereby agrees
        to
        waive such discharge, defense or other rights against the Beneficiary, until
        such time as all the Guaranteed Obligations in relation to the same event
        or
        circumstance have been fully met as required to protect investors in the
        Rated
        Securities.

      

      7. Notwithstanding
        any other provision of this Guarantee, the Guarantor will have the right,
        prior
        to making any payment under this Guarantee, to (a) assert such rights of
        offset
        as are set forth in the Agreements to the extent that such rights relate
        to
        amounts due and payable by the Beneficiary to THE GUARANTEED SUBSIDIARY and
        not
        to amounts which are subject to dispute; and (b) defend manifestly fraudulent
        claims under this Guarantee made by the Beneficiary.

      

      8. This
        Guarantee will continue in full force and effect in relation to all Guaranteed
        Obligations until all the Guaranteed Obligations have been satisfied in full.
        For the avoidance of doubt, all Guaranteed Obligations entered into by THE
        GUARANTEED SUBSIDIARY during the term of this Guarantee shall be honoured
        in
        accordance with this Guarantee and shall be binding on the Guarantor and
        its
        successors and assigns. This Guarantee may be amended only as necessary to
        reflect changes to the Guaranteed Obligations which are validly agreed to
        by the
        Beneficiary (or the trustee as assignee of the Beneficiary) in accordance
        with
        the terms of the Rated Securities, including any requirement to obtain the
        consent of some or all of the investors in the Rated Securities.

      

      9. If
        any
        payment by THE GUARANTEED SUBSIDIARY is avoided, recaptured or reduced as
        a
        result of insolvency or any similar event affecting creditors rights generally
        having occurred in respect of THE GUARANTEED SUBSIDIARY, the Guarantor‘s
        liability under this Guarantee shall continue as if the avoided, recaptured
        or
        reduced payment had not occurred.

      

      10. Upon
        payment by the Guarantor to the Beneficiary of any amount due under this
        Guarantee, the Guarantor shall be entitled to require the assignment to it
        of
        the rights of the Beneficiary against THE GUARANTEED SUBSIDIARY to the extent
        satisfied by such payment, and the Beneficiary will take at the Guarantor's
        expense such steps as the Guarantor may reasonably require to implement such
        assignment. The Guarantor shall not exercise any rights against THE GUARANTEED
        SUBSIDIARY which it may acquire in consequence of such payment and assignment
        unless and until all the Guaranteed Obligations to the Beneficiary shall
        have
        been paid in full.

      

      11. This
        Guarantee is governed and will be construed in accordance with Swiss law.
        The
        exclusive place of jurisdiction for any legal proceeding hereunder shall
        be
        Zurich, Switzerland.

      

       

      IN
        WITNESS WHEREOF, the Guarantor has caused this Guarantee to be executed in
        its
        name as of the 31st
        day of
        August, 2006.

      

      

      

      SWISS
        REINSURANCE COMPANY

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        Q

      

      FORM
        OF
        POWER OF ATTORNEY

      

      RECORDING
        REQUESTED BY

      AND
        WHEN
        RECORDED MAIL TO

      [Servicer]

      [Servicer’s
        Address]

      

      Attn:
        _________________________________

      

      LIMITED
        POWER OF ATTORNEY

      

      

      KNOW
        ALL
        MEN BY THESE PRESENTS, that ________________, having its principal place
        of
        business at ____________________, as Trustee (the “Trustee”) pursuant to that
        Pooling and Servicing Agreement among ___________________ (the “Depositor”),
        ___________________ (the “Sponsor”), Ocwen Loan Servicing, LLC, as a servicer,
        Wells Fargo Bank, N.A. (“Wells Fargo”), as Master Servicer and Securities
        Administrator, and the Trustee, dated as of August 1, 2006 (the “Pooling and
        Servicing Agreement”), hereby constitutes and appoints Ocwen Loan Servicing, LLC
        (the “Servicer”), by and through the Servicer’s officers, the Trustee’s true and
        lawful Attorney-in-Fact, in the Trustee’s name, place and stead and for the
        Trustee’s benefit, in connection with all mortgage loans serviced by the
        Servicer pursuant to the Pooling and Servicing Agreement for the purpose
        of
        performing all acts and executing all documents in the name of the Trustee
        as
        may be customarily and reasonably necessary and appropriate to effectuate
        the
        following enumerated transactions in respect of any of the mortgages or deeds
        of
        trust (the “Mortgages” and the “Deeds of Trust”, respectively) and promissory
        notes secured thereby (the “Mortgage Notes”) for which the undersigned is acting
        as Trustee for various certificateholders (whether the undersigned is named
        therein as mortgagee or beneficiary or has become mortgagee by virtue of
        endorsement of the Mortgage Note secured by any such Mortgage or Deed of
        Trust)
        and for which the Servicer is acting as servicer, all subject to the terms
        of
        the Pooling and Servicing Agreement and Servicing Agreement.

      

      This
        appointment shall apply to the following enumerated transactions
        only:

      

      
        	1.  	
                The
                  modification or re-recording of a Mortgage or Deed of Trust, where
                  said
                  modification or re-recordings is for the purpose of correcting
                  the
                  Mortgage or Deed of Trust to conform same to the original intent
                  of the
                  parties thereto or to correct title errors discovered after such
                  title
                  insurance was issued and said modification or re-recording, in
                  either
                  instance, does not adversely affect the lien of the Mortgage or
                  Deed of
                  Trust as insured.

              

      

      

      
        	2.  	
                The
                  subordination of the lien of a Mortgage or Deed of Trust to an
                  easement in
                  favor of a public utility company of a government agency or unit
                  with
                  powers of eminent domain; this section shall include, without limitation,
                  the execution of partial satisfactions/releases, partial reconveyances
                  or
                  the execution or requests to trustees to accomplish
                  same.

              

      

      

      
        	3.  	
                The
                  conveyance of the properties to the mortgage insurer, or the closing
                  of
                  the title to the property to be acquired as real estate owned,
                  or
                  conveyance of title to real estate
                  owned.

              

      

      

       
        4.   The
        completion of loan assumption agreements.

      

      
        	5.  	
                The
                  full satisfaction/release of a Mortgage or Deed of Trust or full
                  conveyance upon payment and discharge of all sums secured thereby,
                  including, without limitation, cancellation of the related Mortgage
                  Note.

              

      

      

      
        	6.  	
                The
                  assignment of any Mortgage or Deed of Trust and the related Mortgage
                  Note,
                  in connection with the repurchase of the mortgage loan secured
                  and
                  evidenced thereby.

              

      

      

      
        	7.  	
                The
                  full assignment of a Mortgage or Deed of Trust upon payment and
                  discharge
                  of all sums secured thereby in conjunction with the refinancing
                  thereof,
                  including, without limitation, the assignment of the related Mortgage
                  Note.

              

      

      

      
        	8.  	
                With
                  respect to a Mortgage or Deed of Trust, the foreclosure, the taking
                  of a
                  deed in lieu of foreclosure, or the completion of judicial or non-judicial
                  foreclosure or termination, cancellation or rescission of any such
                  foreclosure, including, without limitation, any and all of the
                  following
                  acts:

              

      

      

      
        	a.  	
                the
                  substitution of trustee(s) serving under a Deed of Trust, in accordance
                  with state law and the Deed of
                  Trust;

              

      

      

      
        	b.  	
                the
                  preparation and issuance of statements of breach or
                  non-performance;

              

      

      

      
        	c.  	
                the
                  preparation and filing of notices of default and/or notices of
                  sale;

              

      

      

      
        	d.  	
                the
                  cancellation/rescission of notices of default and/or notices of
                  sale;

              

      

      

      
        	e.  	
                the
                  taking of a deed in lieu of foreclosure;
                  and

              

      

      

      
        	f.  	
                the
                  preparation and execution of such other documents and performance
                  of such
                  other actions as may be necessary under the terms of the Mortgage,
                  Deed of
                  Trust or state law to expeditiously complete said transactions
                  in
                  paragraphs 8.a. through 8.e.,
                  above.

              

      

      

      The
        undersigned gives said Attorney-in-Fact full power and authority to execute
        such
        instruments and to do and perform all and every act and thing necessary and
        proper to carry into effect the power or powers granted by or under this
        Limited
        Power of Attorney as fully as the undersigned might or could do, and hereby
        does
        ratify and confirm to all that said Attorney-in-Fact shall lawfully do or
        cause
        to be done by authority hereof. 

      

      Third
        parties without actual notice may rely upon the exercise of the power granted
        under this Limited Power of Attorney; and may be satisfied that this Limited
        Power of Attorney shall continue in full force and effect and has not been
        revoked unless an instrument of revocation has been made in writing by the
        undersigned.

      

      IN
        WITNESS WHEREOF, ________________ as Trustee pursuant to that Pooling and
        Servicing Agreement among the Depositor, the Sponsor, the Servicer, Wells
        Fargo
        and the Trustee, dated as of ___________ 1, 200__ (_____________ Asset-Backed
        Certificates, Series 200__-___), has caused its corporate seal to be hereto
        affixed and these presents to be signed and acknowledged in its name and
        behalf
        by ____________ its duly elected and authorized Vice President this _________
        day of _________, 200__.

      

      
        	 	 	 	 	 	 	 	 	
                as
                  Trustee for _____ Asset 

                Backed
                  Certificates, Series 200__-___

                 

              
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	 

      

      

      

      
        	
                STATE
                  OF ___________________

              
	 
	
                COUNTY
                  OF _________________

              

      

      

      On
        _______________, 200__, before me, the undersigned, a Notary Public in and
        for
        said state, personally appeared ____________, Vice President of
        ____________________ as Trustee for ___________ Asset-Backed Certificates,
        Series 200__-___, personally known to me to be the person whose name is
        subscribed to the within instrument and acknowledged to me that he/she executed
        that same in his/her authorized capacity, and that by his/her signature on
        the
        instrument the entity upon behalf of which the person acted and executed
        the
        instrument.

      

      WITNESS
        my hand and official seal.

      (SEAL)

      
        	 	 
	 	
                Notary
                  Public

              
	 	
                My
                  Commission Expires
                  _________________

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        R

      

      
        

          ASSIGNMENT,
            ASSUMPTION AND RECOGNITION AGREEMENT

           

          This
            Assignment, Assumption and Recognition Agreement (this “AAR Agreement”) is made
            and entered into as of August 31, 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 Home Equity Loan, Inc., having an address at 2 World
            Financial Center, Building B, 21st
            Floor,
            New York, New York 10281 (the “Assignee”) and Wells Fargo Bank, N.A., having an
            address at 1 Home Campus, Des Moines, Iowa 50328-0001 (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 Warranties and
            Servicing Agreement (WFHM 2006-M03), dated as of March 1, 2006, between
            the
            Assignor and the Servicer (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 August 1, 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 Home Equity Loan, Inc., Nomura Home Equity Loan
            Trust,
            Series 2006-HE3 Asset Backed Certificates (the “Certificateholders”) pursuant to
            the Pooling and Servicing Agreement, dated as of August 1, 2006 (the
“Pooling
            and Servicing Agreement”) among the Assignor, as the sponsor, the Assignee, as
            depositor, Ocwen Loan Servicing, LLC, as a servicer, the Trustee 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 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 to the extent set forth
            herein,
            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 insolvency, liquidation, conservatorship or other similar
            laws
            administered by the Federal Deposit Insurance Corporation affecting the
            enforcement of contract obligations of insured banks, and by general
            principals
            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
“Wells Fargo Bank, N.A., as Servicer for HSBC Bank USA, National Association
            as
            Trustee, in trust for the registered holders of Nomura Home
            Equity Loan Trust, Series 2006-HE3”
and
            shall be established and maintained with a Qualified Depository. 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 Trustee, 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 10.01 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, except with respect to Section 4.23 of 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 10.01 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:
            121-000-248

          Acct
            #:3970771416

          Acct
            Name: SAS Clearing

          For
            Further Credit to: NHEL 2006-HE3 Account #50943201

          

          7.  Pursuant
            to Section 9.01(a) 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 Servicer 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
            certify in writing or electronic mail 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 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, the Master 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
            proper 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.

           

          “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 September 2006.

           

          “Securities
            Administrator”:
            Wells
            Fargo Bank, N.A. or any successor thereto.

           

          “Trust”:
            Nomura
            Home Equity Loan Trust, Series 2006-HE3.

           

          “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 South 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 “Commission” in Article I of the Servicing Agreement is modified
            by replacing such definition with the following:

           

          “Commission”:
            The
            United States Securities and Exchange Commission.

           

          (d)  The
            definition of “Depositor” in Article I of the Servicing Agreement is modified by
            replacing such definition with the following:

           

          “Depositor”:
            Nomura
            Home Equity Loan, Inc.”

           

          (e)  The
            definition of “Master Servicer” in Article I of the Servicing Agreement is
            modified by replacing such definition with the following:

           

          “Master
            Servicer”:
            Wells
            Fargo Bank, N.A. or any successor thereto.”

           

          (f)  The
            definition of “Officer’s Certificate” in Article I of this 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; provided, however,
            any
            Opinion of Counsel provided by the Company pursuant to clause (b) above
            may be
            provided by internal counsel; provided that the delivery of such Opinion
            of
            Counsel shall not release the Company from any of its obligations hereunder
            and
            the Company shall be responsible for such contemplated actions or inaction,
            as
            the case may be, to the extent it conflicts with the terms of this
            Agreement.”

           

          (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., Standard & Poor’s Ratings Services,
            Dominion Bond Rating Service, and Fitch Ratings 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 “Qualified Depository” in Article I of the Servicing Agreement is
            hereby amended by deleting the words “Group or” following the words “Standard
& Poor’s Ratings” and replacing it with “Services and”.

           

          (j)  The
            following language is added to the end of the definition of “REMIC Provisions”
in Article I of the Servicing Agreement: 

           

          “as
            well
            as provisions of applicable state laws”

           

          (k)  The
            definition of “Servicer” in Article I of the Servicing Agreement is modified by
            replacing such definition with the following:

           

          “Servicer”:
            As
            defined in Section 9.01(d)(iii).

           

          (l)  The
            definition of “Servicing Advances” in Article I of the Servicing Agreement is
            hereby amended by adding the following language after the phrase “including
            reasonable attorney's fees and disbursements”: “but excluding any fees
            associated with the registration of any Mortgage Loan on the MERS System
            as
            required under Section 4.01”.

           

          (m)  The
            definition of “Servicing Advances” in Article I of the Servicing Agreement is
            further amended by adding the following language at the end thereof:
“and (f)
            payment of taxes.”

           

          (n)  The
            first
            sentence of the second 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”.

           

          (o)  The
            second sentence of the first paragraph of Section 4.02 of the Servicing
            Agreement is modified by deleting the phrase “, provided that the Company shall
            not commence foreclosure proceedings if the Purchaser objects to such
            action
            within three (3) Business Days of receiving such notice”.

           

          (p)  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 expenses incurred
            and reimbursable to it pursuant to the fees paid to MERS under Section
            4.01; and
            (xi) to reimburse itself for any Monthly Advance or Servicing Advance
            previously
            made by it which the Company has determined to be a nonrecoverable Monthly
            Advance or a nonrecoverable Servicing Advance, as evidenced by the delivery
            to
            the Master Servicer of a certificate signed by two officers of the
            Company”.

           

          (q)  Section
            4.16 of the Servicing Agreement is modified by deleting the “.” from the first
            sentence in the second paragraph and adding the following: “in a manner which
            does not cause such REO Property to fail to qualify as “foreclosure property”
within the meaning of Section 860G(a)(8) of the Code or result in the
            receipt by
            any Trust REMIC created hereunder of any “income from non-permitted assets”
within the meaning of Section 860F(a)(2)(B) of the Code, or any “net income from
            foreclosure property” which is subject to taxation under the REMIC
            Provisions.”

           

          (r)  Section
            4.16 of the Servicing Agreement is further modified by deleting the first
            sentence from the third paragraph and replacing it with the following:
“The
            Company, shall either sell any REO Property by the close of the third
            calendar
            year following the calendar year in which the Trust acquires ownership
            of such
            REO Property for purposes of Section 860(a)(8) of the Code or request
            from the
            Internal Revenue Service, no later than 60 days before the day on which
            the
            three-year grace period would otherwise expire an extension of the three-year
            grace period, unless the Company had delivered to the Trustee an Opinion
            of
            Counsel, addressed to the Trustee and the Depositor, to the effect that
            the
            holding by the Trust of such REO Property subsequent to three years after
            its
            acquisition will not result in the imposition on any Trust REMIC created
            hereunder of taxes on “prohibited transactions” thereof, as defined in Section
            860F of the Code, or cause any Trust REMIC hereunder to fail to qualify
            as a
            REMIC under Federal law at any time that any Certificates issued by the
            Trust
            are outstanding.”

           

          (s)  Section
            4.17 of the Servicing Agreement is modified by deleting the words “on or before
            the Remittance Date” from the first sentence therein.

           

          (t)  The
            second paragraph of Section 5.01 of the Servicing Agreement is modified
            by
            deleting from the first sentence therein the words “second Business Day
            following the” and by deleting the word “second” from the second sentence
            therein.

           

          (u)  Section
            5.02 of the Servicing Agreement is deleted in its entirety and replaced
            with the
            following:

           

          “No
            later
            than the tenth (10th)
            calendar day (or if such tenth (10th)
            day is
            not a Business Day, the first Business Day immediately preceding such
            tenth
            (10th)
            day) of
            each month, Company shall furnish to the Master Servicer a computer tape
            or data
            file containing the data specified in Exhibit I, which data shall reflect
            information from the Due Period immediately preceding the Remittance
            Date and
            such other information with respect to the Mortgage Loans as the Master
            Servicer
            may reasonably require to allocate remittances made pursuant to this
            Agreement
            and provide appropriate statements with respect to such
            remittances.”

           

          (v)  Section
            5.03 of the Servicing Agreement is modified by deleting the words “that if
            requested by a Rating Agency” from the first sentence of clause (ii)
            therein.

           

          (w)  The
            first
            paragraph of Section 6.02 of the Servicing Agreement is modified by deleting
            the
            words Aand
            may
            request the release of any Mortgage Loan Documents” and adding the words
Aand
            may
            request that the Purchaser or its designee release the related Mortgage
            Loan
            Documents” in the last line of such paragraph.

           

          (x)  Section
            6.04 of the Servicing Agreement is modified by deleting the words “the
            Purchaser, any Master Servicer and any Depositor” and “the Purchaser, such
            Master Servicer and such Depositor” and replacing such with “the Master
            Servicer”. 

           

          (y)  Section
            6.05 of the Servicing Agreement is deleted in its entirety and replaced
            with
“Reserved”.

           

          (z)  Section
            6.06 of the Servicing Agreement is modified by deleting the words “the
            Purchaser, any Master Servicer and any Depositor” and “the Purchaser, such
            Master Servicer and such Depositor” and replacing such with “the Master
            Servicer,”.

           

          (aa)  Section
            6.07 of the Servicing Agreement (entitled “Remedies”) is modified by adding the
            language “, Master Servicer,” after the phrase “(or such designee)” in clause
            (iii) therein. 

           

          (bb)  Section
            6.07 of the Servicing Agreement (entitled “Compliance with REMIC provisions”),
            which follows Section 6.08 thereof, is incorrectly numbered and is hereby
            renumbered as Section 6.09. In addition, the following paragraph is hereby
            added
            to new Section 6.09 of the Servicing Agreement:

           

          “The
            Company shall not permit the creation of any “interests” (within the meaning of
            Section 860G of the Code) in any REMIC. The Company shall not enter into
            any
            arrangement by which a REMIC will receive a fee or other compensation
            for
            services nor permit a 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.”

           

          (cc)  Section
            8.01 of the Servicing Agreement is deleted in its entirety and replaced
            with the
            following:

           

          “The
            Company shall indemnify the Purchaser and Master Servicer and hold them
            harmless
            against any and all claims, losses, damages, penalties, fines, forfeitures,
            reasonable and necessary legal fees and related costs, judgments, and
            any other
            costs, fees and expenses that the Purchaser or Master Servicer may sustain
            in
            any way related to the failure of the Company to perform its duties and
            service
            the Mortgage Loans in strict compliance with the terms of this Agreement.
            The
            Company immediately shall notify the Purchaser and Master Servicer if
            a claim is
            made by a third party with respect to this Agreement or the Mortgage
            Loans,
            assume (with prior written consent of the Purchaser or Master Servicer,
            respectively) the defense of any such claim and pay all expenses in connection
            therewith, including counsel fees, and promptly pay, discharge and satisfy
            and
            judgment or decree which may be entered against it or the Purchaser or
            Master
            Servicer in respect of such claim. The Company shall follow any written
            instructions received from the Purchaser or Master Servicer in connection
            with
            such claim. The Purchaser or Master Servicer promptly shall reimburse
            the
            Company for all amounts advanced by it pursuant to the preceding sentence
            except
            when the claim is in any way related to the Company’s indemnification pursuant
            to Section 3.03, or the failure of the Company to service and administer
            the
            Mortgage Loans in strict compliance with the terms of this
            Agreement.”

           

          (dd)  Section
            9.01(d) of the Servicing Agreement is modified by deleting phrase “(i), (ii),
            (iii) and (vii)” in the first paragraph thereof in its entirety and replacing it
            with the phrase “(i), (ii), (iii), (vii) and (viii)”.

           

          (ee)  Section
            9.01(d)(vi)(A) of the Servicing Agreement is modified by deleting the
            phrase
“The Company shall be deemed to represent” in the first line there thereof in
            its entirety and replacing it with the phrase “The Company hereby
            represents”.

           

          (ff)  Section
            9.01(d)(viii) of the Servicing Agreement is modified adding the following
            language at the end thereof: “as may reasonably requested by the Purchaser, any
            Master Servicer, or any Depositor.”

           

          (gg)  Section
            9.01(e)(iv) of the Servicing Agreement is modified adding the following
            language
            at the end thereof: “or Sections 4.25, 6.04, 6.06, 6.07, 9.01(d) or (f) or
            12.14.”

           

          (hh)  Section
            9.01 of the Servicing Agreement is modified by deleting the phrase “Section
            9.01(d)” in the first sentence of the third paragraph thereof in its entirety
            and replacing it with the phrase “Sections 4.25, 6.04, 6.06, 6.07, 9.01(d), (e)
            and (f) and 12.14.”

           

          (ii)  Section
            10.01 of the Servicing Agreement is modified by adding the language “(not
            including Sections 6.04 or 6.06 of this Agreement)” after the phrase “set forth
            in this Agreement” in clause (ii) therein, and by replacing “thirty (30)” with
“fourteen (14)” in clause (x) therein.

           

          (jj)  Section
            11.02 of the Servicing Agreement is hereby deleted in its entirety.

           

          (kk)  Exhibit
            I
            of the Servicing Agreement is modified to include the information set
            forth on
Attachment
            3
            hereto
            or in such other format mutually agreed upon by the Company and the Master
            Servicer.

           

          (ll)  Exhibit
            I
            of the Servicing Agreement is further modified by deleting the phrase
“Form of
            Remittance Advice” in its entirety and replacing it with the phrase “Form of
            Remittance Report”. 

           

          (mm)  Exhibit
            K
            of the Servicing Agreement is hereby deleted in its entirety and replaced
            with
Attachment
            4
            hereto.

           

          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 Assistant 

          

          (b)  In
            the
            case of Assignee,

           

          Nomura
            Home Equity Loan, Inc.

          2
            World
            Financial Center

          Building
            B, 18th
            Floor

          New
            York,
            New York 10281

          Attention:
            Legal Assistant

           

          (c)  In
            the
            case of Master Servicer,

           

          Wells
            Fargo Bank, N.A.

          9062
            Old
            Annapolis Road

          Columbia,
            Maryland 21045

          Attention:
            Client Manager - NHEL 2006-HE3

           

          Telecopier:
            (410) 715-2380

           

          (d)  In
            the
            case of Servicer,

           

          Wells
            Fargo Bank, N.A.

          1
            Home
            Campus

          Des
            Moines, Iowa 50328-0001

          Attention:
            John B. Brown, MAC X2302-033

           

          With
            a
            copy to:

          

          Wells
            Fargo Bank, N.A.

          1
            Home
            Campus

          Des
            Moines, Iowa 50328-0001

          Attention:
            General Counsel MAC X2401-06T

           

          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.

           

          

          [SIGNATURES
            COMMENCE ON FOLLOWING PAGE]

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          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:

                  	 	
                  	 	 
	
                    Name:

                  	 	 	 
	
                    Title:

                  	 	 	 

          

          

          

          

          
            	
                    NOMURA
                      HOME EQUITY LOAN, INC.

                    Assignee

                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    By:

                  	 	
                  	 	 
	
                    Name:

                  	 	 	 
	
                    Title:

                  	 	 	 

          

          

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          

          
            	
                    WELLS
                      FARGO BANK, N.A.

                    Servicer

                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    By:

                  	 	
                  	 	 
	
                    Name:

                  	 	 	 
	
                    Title:

                  	 	 	 

          

          

          

          

          
            	
                    ACKNOWLEDGED
                      AND AGREED TO:

                    HSBC
                      BANK USA, NATIONAL ASSOCIATION

                    Trustee
                      for the holders of the Nomura Home Equity Loan, Inc.,

                    Home
                      Equity Loan Trust, Series 2006-HE3

                    Asset-Backed
                      Certificates

                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    By:

                  	 	
                  	 	 
	
                    Name:

                  	 	 	 
	
                    Title:

                  	 	 	 

          

          

          

          

          
            	
                    ACKNOWLEDGED
                      AND AGREED TO:

                    WELLS
                      FARGO BANK, N.A.

                    Master
                      Servicer

                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    By:

                  	 	
                  	 	 
	
                    Name:

                  	 	 	 
	
                    Title:

                  	 	 	 

          

          

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          ATTACHMENT
            I

          ASSIGNED
            LOAN SCHEDULE

           

           

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          ATTACHMENT
            2

           

          SELLER’S
            WARRANTIES AND SERVICING AGREEMENT

           

           

          
            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            NOMURA
              CREDIT & CAPITAL, INC.

            Purchaser

             

            
 

            and

             

            
 

            WELLS
              FARGO BANK, N.A.

            Company

            

            

            

            
              	 	 	 

            

            

            

            SELLER'S
              WARRANTIES AND SERVICING AGREEMENT

            

            Dated
              as of March 1, 2006

            

            

            

            
              	 	 	 

            

            

            

            Subprime
              Adjustable Rate and Fixed Rate Mortgage Loans

            

            WFHM
              Series 2006-M03

            

             

            
 

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            TABLE
              OF CONTENTS

            

            

             

            ARTICLE
              I

             

            DEFINITIONS

             

             

             

            ARTICLE
              II

             

            CONVEYANCE
              OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES; BOOKS AND RECORDS;
              CUSTODIAL
              AGREEMENT; DELIVERY OF DOCUMENTS

             

             

             

            ARTICLE
              III

             

            REPRESENTATIONS
              AND WARRANTIES REMEDIES AND BREACH

             

             

             

            ARTICLE
              IV

             

            ADMINISTRATION
              AND SERVICING OF MORTGAGE LOANS

             

             

             

            ARTICLE
              V

             

            PAYMENTS
              TO PURCHASER

             

             

             

            ARTICLE
              VI

             

            GENERAL
              SERVICING PROCEDURES

             

             

             

            ARTICLE
              VII

             

            COMPANY
              TO COOPERATE

             

             

             

            ARTICLE
              VIII

             

            THE
              COMPANY

             

             

             

            ARTICLE
              IX

             

            SECURITIZATION
              TRANSACTIONS, WHOLE LOAN SALES AND AGENCY SALES

             

             

             

            ARTICLE
              X

             

            DEFAULT

             

             

             

            ARTICLE
              XI

             

            TERMINATION

             

             

             

            ARTICLE
              XII

             

            MISCELLANEOUS
              PROVISIONS

             

             

             

            
 

            EXHIBITS

            

            
              	
                      Exhibit
                        A

                    	
                      Mortgage
                        Loan Schedule

                    
	
                      Exhibit
                        B

                    	
                      Data
                        File Elements

                    
	
                      Exhibit
                        C

                    	
                      Contents
                        of Each Mortgage Loan File

                    
	
                      Exhibit
                        D

                    	
                      Custodial
                        Agreement

                    
	
                      Exhibit
                        E

                    	
                      Form
                        of Opinion of Counsel

                    
	
                      Exhibit
                        F

                    	
                      Form
                        of Officer’s Certificate

                    
	
                      Exhibit
                        G

                    	
                      Form
                        of Custodial Account Certification

                    
	
                      Exhibit
                        H

                    	
                      Form
                        of Escrow Account Certification

                    
	
                      Exhibit
                        I

                    	
                      Form
                        of Remittance Report

                    
	
                      Exhibit
                        J

                    	
                      Servicing
                        Criteria

                    
	
                      Exhibit
                        K

                    	
                      Sarbanes
                        Certication

                    
	
                      Exhibit
                        L

                    	
                      Form
                        of Assignment, Assumption and Recognition
                        Agreement

                    

            

             

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            

            This
              is a
              Seller's Warranties and Servicing Agreement for adjustable rate and
              fixed rate
              residential first lien and second lien mortgage loans, dated and effective
              as of
              March 1, 2006, and is executed between Nomura Credit & Capital, Inc., as
              purchaser (the "Purchaser") and Wells Fargo Bank, N.A., as seller and
              servicer
              (the "Company").

            

            

            W I T N E S S E T H

            

            

            WHEREAS,
              the Purchaser has agreed to purchase from the Company and the Company
              has agreed
              to sell to the Purchaser certain Mortgage Loans (as defined below)
              which have an
              aggregate unpaid scheduled principal balance as of the close of business
              on the
              Cut-off Date, after deduction of payments due on or before such
              date;

            

            WHEREAS,
              each of the Mortgage Loans is secured by a mortgage, deed of trust
              or other
              security instrument creating a first lien on a residential dwelling
              located in
              the jurisdiction indicated on the Mortgage Loan Schedule, which is
              annexed
              hereto as Exhibit A; and 

            

            WHEREAS,
              the Purchaser and the Company wish to prescribe the manner of purchase
              of the
              Mortgage Loans and the conveyance, servicing and control of the Mortgage
              Loans.

            

            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 Company agree as
              follows:

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            ARTICLE
              I

             

            DEFINITIONS

            

            Whenever
              used herein, the following words and phrases, unless the content otherwise
              requires, shall have the following meanings:

            

            Accepted
              Servicing Practices:
              With
              respect to any Mortgage Loan, those mortgage servicing practices of
              prudent
              mortgage lending institutions which service mortgage loans of the same
              type as
              such Mortgage Loan in the jurisdiction where the related Mortgaged
              Property is
              located.

            

            Adjustable
              Rate Mortgage Loan:
              A
              Mortgage Loan which provides for the adjustment of the Mortgage Interest
              Rate
              payable in respect thereto.

            

            Adjustment
              Date:
              As to
              each Adjustable Rate Mortgage Loan, the date on which the Mortgage
              Interest Rate
              is adjusted in accordance with the terms of the related Mortgage Note
              and
              Mortgage.

            

            Agency/Agencies:
              Fannie
              Mae, Freddie Mac or GNMA, or any of them as applicable.

            

            Agency
              Sale:
              Any
              sale or transfer of some or all of the Mortgage Loans by the Purchaser
              to an
              Agency which sale or transfer is not a Securitization Transaction or
              Whole Loan
              Transfer.

            

            Agreement:
              This
              Seller's Warranties and Servicing Agreement and all exhibits thereto,
              amendments
              hereof and supplements hereto.

            

            ALTA:
              The
              American Land Title Association or any successor thereto.

            

            Appraised
              Value:
              With
              respect to any Mortgage Loan, the lesser of (i) the value set forth
              on the
              appraisal made in connection with the origination of the related Mortgage
              Loan
              as the value of the related Mortgaged Property, or (ii) the purchase
              price paid
              for the Mortgaged Property, provided, however, that in the case of
              a refinanced
              Mortgage Loan, such value shall be based solely on the appraisal made
              in
              connection with the origination of such Mortgage Loan.

            

            Appropriate
              Federal Banking Agency:
              Appropriate Federal Banking Agency shall have the meaning ascribed
              to it by
              Section 1813(q) of Title 12 of the United States Code, as amended from
              time to
              time.

            

            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 sale of the Mortgage
              to the
              Purchaser or if the related Mortgage has been recorded in the name
              of MERS or
              its designee, such actions as are necessary to cause the Purchaser
              to be shown
              as the owner of the related Mortgage on the records of MERS for purposes
              of the
              system of recording transfers of beneficial ownership of mortgages
              maintained by
              MERS, including assignment of the MIN Number which will appear either
              on the
              Mortgage or the Assignment of Mortgage to MERS.

            

            Assignment
              of Mortgage Note and Pledge Agreement:
              With
              respect to a Cooperative Loan, as assignment of the Mortgage Note and
              Pledge
              Agreement.

            

            Assignment
              of Proprietary Lease:
              With
              respect to a Cooperative Loan, as assignment of the Proprietary Lease
              sufficient
              under the laws of the jurisdiction wherein the related Cooperative
              Apartment is
              located to effect the assignment of such Proprietary Lease.

            

            Balloon
              Loan:
              A
              Mortgage Loan for which the Monthly Payments will not fully amortize
              the loan by
              the end of the term, at which time the balance of the principal is
              due in a lump
              sum.

            

            Business
              Day:
              Any day
              other than (i) a Saturday or Sunday, or (ii) a day on which banking
              and savings
              and loan institutions in the states where the parties are located are
              authorized
              or obligated by law or executive order to be closed.

            

            Buydown
              Agreement:
              An
              agreement between the Company and a Mortgagor, or an agreement among
              the
              Company, a Mortgagor and a seller of a Mortgaged Property or a third
              party with
              respect to a Mortgage Loan which provides for the application of Buydown
              Funds.

            

            Buydown
              Funds:
              In
              respect of any Buydown Mortgage Loan, any amount contributed by the
              seller of a
              Mortgaged Property subject to a Buydown Mortgage Loan, the buyer of
              such
              property, the Company or any other source, plus interest earned thereon,
              in
              order to enable the Mortgagor to reduce the payments required to be
              made from
              the Mortgagor’s funds in the early years of a Mortgage Loan.

            

            Buydown
              Mortgage Loan:
              Any
              Mortgage Loan in respect of which, pursuant to a Buydown Agreement,
              (i) the
              Mortgagor pays less than the full monthly payments specified in the
              Mortgage
              Note for a specified period, and (ii) the difference between the payments
              required under such Buydown Agreement and the Mortgage Note is provided
              from
              Buydown Funds.

            

            Buydown
              Period:
              The
              period of time when a Buydown Agreement is in effect with respect to
              a related
              Buydown Mortgage Loan.

            

            Closing
              Date:
              March
              30, 2006.

            

            Code:
              The
              Internal Revenue Code of 1986, as it may be amended from time to time
              or any
              successor statute thereto, and applicable U.S. Department of the Treasury
              regulations issued pursuant thereto.

            

            Combined
              Loan-to-Value Ratio or CLTV:
              As to
              any Second Lien Mortgage Loan at any date of determination, the ratio
              on such
              date of the principal balance of such Mortgage Loan,
              plus
              the
              principal balance of any Superior Lien, to the Appraised Value of the
              related
              Mortgaged Property.

            

            Commission:
              The
              Securities and Exchange Commission.

            

            Company:
              Wells
              Fargo Bank, N.A., or its successor in interest or assigns, or any successor
              to
              the Company under this Agreement appointed as herein provided.

            

            Company
              Information:
              As
              defined in Section 9.01(e)(i)(A).

            

            Condemnation
              Proceeds:
              All
              awards or 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.

            

            Cooperative:
              The
              entity that holds title (fee or an acceptable leasehold estate) to
              all of the
              real property that the Project comprises, including the land, separate
              dwelling
              units and all common areas.

            

            Cooperative
              Apartment:
              The
              specific dwelling unit relating to a Cooperative Loan.

            

            Cooperative
              Lien Search:
              A
              search for (a) federal tax liens, mechanics’ liens, lis
              pendens,
              judgments of record or otherwise against (i) the Cooperative, (ii)
              the seller of
              the Cooperative Apartment and (iii) the Company if the Cooperative
              Loan is a
              refinanced Mortgage Loan, (b) filings of financing statements and (c)
              the deed
              of the Project into the Cooperative.

            

            Cooperative
              Loan: A
              Mortgage Loan that is secured by Cooperative Shares and a Proprietary
              Lease
              granting exclusive rights to occupy the related Cooperative
              Apartment.

            

            Cooperative
              Shares:
              The
              shares of stock issued by a Cooperative, owned by the Mortgagor, and
              allocated
              to a Cooperative Apartment.

            

            Covered
              Loan:
              A
              Mortgage Loan categorized as “Covered” pursuant to the Standard & Poor’s
              Glossary for File Format for LEVELS® Version 5.6d, Appendix E, revised January
              1, 2006 (excluding New Jersey “Covered Home Loans” as that term is defined in
              clause (1) of the definition of that term in the New Jersey Home Ownership
              Security Act of 2002).

            

            Custodial
              Account:
              The
              separate account or accounts created and maintained pursuant to Section
              4.04.

            

            Custodial
              Agreement:
              The
              agreement governing the retention of the originals of each Mortgage
              Note,
              Mortgage, Assignment of Mortgage and other Mortgage Loan Documents.

            

            Custodian:
              The
              custodian under the Custodial Agreement, or its successor in interest
              or
              assigns, or any successor to the Custodian under the Custodial Agreement
              as
              provided therein.

            

            Cut-off
              Date:
              March
              1, 2006.

            

            Data
              File:
              The
              electronic data file prepared by the Company and delivered to the Purchaser
              including the data fields set forth on Exhibit B, with respect to the
              Mortgage
              Loans.

            

            Deleted
              Mortgage Loan:
              A
              Mortgage Loan which is repurchased by the Company in accordance with
              the terms
              of this Agreement and which is, in the case of a substitution pursuant
              to
              Section 3.03, replaced or to be replaced with a Qualified Substitute
              Mortgage
              Loan.

            

            Depositor:
              The
              depositor, as such term is defined in Regulation AB, with respect to
              any
              Securitization Transaction.

            

            Determination
              Date:
              The
              Business Day immediately preceding the related Remittance Date.

            

            Due
              Date:
              The day
              of the month on which the Monthly Payment is due on a 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 the Remittance Date and ending on the
              first day of
              the month of the Remittance Date.

            

            Errors
              and Omissions Insurance Policy:
              An
              errors and omissions insurance policy to be maintained by the Company
              pursuant
              to Section 4.12.

            

            Escrow
              Account:
              The
              separate account or accounts created and maintained pursuant to Section
              4.06.

            

            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 or any other related document.

            

            Event
              of Default:
              Any one
              of the conditions or circumstances enumerated in Section 10.01.

            

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

            

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

            

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

            

            Fidelity
              Bond:
              A
              fidelity bond to be maintained by the Company pursuant to Section
              4.12.

            

            First
              Lien:
              With
              respect to each Mortgaged Property, the lien on the mortgage, deed
              of trust or
              other instrument securing a Mortgage Note which creates a first lien
              on the
              Mortgaged Property.

             

            First
              Lien Mortgage Loan:
              A
              Mortgage Loan secured by a First Lien on the Mortgage Property.

             

            First
              Remittance Date:
              April
              18, 2006.

            

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

            

            Gross
              Margin:
              With
              respect to each Adjustable Rate Mortgage Loan, the fixed percentage
              amount set
              forth in the related Mortgage Note which is added to the Index in order
              to
              determine the related Mortgage Interest Rate, as set forth in the Mortgage Loan
              Schedule.

            

            High
              Cost Loan:
              A
              Mortgage Loan that is (a) classified as a “high cost” loan under the Home
              Ownership and Equity Protection Act of 1994, (b) classified as a “high cost
              home,” “threshold,” “covered,” (excluding New Jersey “Covered Home Loans” as
              that term is defined in clause (1) of the definition of that term in
              the New
              Jersey Home Ownership Security Act of 2002 that are first lien purchase
              money
              Mortgage Loans originated between November 26, 2003, and July 7, 2004),
“high
              risk home,” “predatory” or similar loan under any other applicable state,
              federal or local law or (c) a Mortgage Loan categorized as “High Cost” pursuant
              to the Standard & Poor’s Glossary for File Format for LEVELS® Version 5.6d,
              Appendix E, revised January 1, 2006. 

             

            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 interest thereon.

             

            Insurance
              Proceeds:
              With
              respect to each Mortgage Loan, proceeds of insurance policies insuring
              the
              Mortgage Loan or the related Mortgaged Property.

            

            Insured
              Depository Institution:
              Insured
              Depository Institution shall have the meaning ascribed to such term
              by Section
              1813(c)(2) of Title 12 of the United States Code, as amended from time
              to
              time.

            

            Interest
              Only Mortgage Loan:
              A
              Mortgage Loan for which an interest-only payment feature is allowed
              during the
              interest-only period set forth in the related Mortgage Note.

            

            Liquidation
              Proceeds:
              Cash
              received in connection with the liquidation of a defaulted Mortgage
              Loan,
              whether through the sale or assignment of such Mortgage Loan, trustee's
              sale,
              foreclosure sale or otherwise, or the sale of the related Mortgaged
              Property if
              the Mortgaged Property is acquired in satisfaction of the Mortgage
              Loan.

            

            Loan-to-Value
              Ratio or LTV:
              With
              respect to any First Lien Mortgage Loan, the ratio of the original
              loan amount
              of the Mortgage Loan at its origination (unless otherwise indicated)
              to the
              Appraised Value of the Mortgaged Property.

            

            LPMI
              Policy: A
              PMI
              Policy for which the Company pays all premiums from its own funds,
              on or before
              the Closing Date, without reimbursement.

            

            Master
              Servicer:
              With
              respect to any Securitization Transaction, the “master servicer,” if any,
              identified in the related transaction documents.

            

            MERS:
              Mortgage Electronic Registration Systems, Inc., a Delaware corporation,
              or any
              successor in interest 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:
              Mortgage Identification Number used to identify mortgage loans registered
              under
              MERS.

            

            Monthly
              Advance:
              The
              portion of each Monthly Payment that is delinquent with respect to
              each Mortgage
              Loan at the close of business on the Determination Date required to
              be advanced
              by the Company pursuant to Section 5.03 on the Business Day immediately
              preceding the Remittance Date of the related month.

            

            Monthly
              Payment:
              The
              scheduled monthly payment of principal and interest on a Mortgage Loan
              or in the
              case of an Interest Only Mortgage Loan, payment of (i) interest or
              (ii)
              principal and interest, as applicable, on a Mortgage Loan.

            

            Mortgage:
              The
              mortgage, deed of trust or other instrument securing a Mortgage Note,
              which
              creates a first lien on an unsubordinated estate in fee simple in real
              property
              securing the Mortgage Note or the Pledge Agreement securing the Mortgage
              Note
              for a Cooperative Loan.

            

            Mortgage
              File:
              The
              items pertaining to a particular Mortgage Loan referred to as items
              1 through 10
              and 17 in Exhibit C annexed hereto, and any additional documents required
              to be
              added to the Mortgage File pursuant to this Agreement.

            

            Mortgage
              Impairment Insurance Policy:
              A
              mortgage impairment or blanket hazard insurance policy as described
              in Section
              4.11.

            

            Mortgage
              Interest Rate:
              The
              annual rate of interest borne on a Mortgage Note in accordance with
              the
              provisions of the 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
              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
              and all other rights, benefits, proceeds and obligations arising from
              or in
              connection with such Mortgage Loan.

            

            Mortgage
              Loan Documents:
              The
              documents referred to in Exhibit C as items 1 through 10 and 17.

            

            Mortgage
              Loan Remittance Rate:
              With
              respect to each Mortgage Loan, the annual rate of interest remitted
              to the
              Purchaser, which shall be equal to the related Mortgage Interest Rate
              minus the
              Servicing Fee Rate.

            

            Mortgage
              Loan Schedule:
              A
              schedule of Mortgage Loans annexed hereto as Exhibit A, such schedule
              setting
              forth the following information with respect to each Mortgage Loan:
              (1) the
              Company’s Mortgage Loan number; (2) the full street address, city, state and
              zip
              code of the Mortgaged Property; (3) a code indicating whether the Mortgaged
              Property is a single family residence, two-family residence, three-family
              residence, four-family residence, Cooperative Loan, manufactured dwelling,
              planned unit development or condominium; (4) the current Mortgage Interest
              Rate;
              (5) the current net Mortgage Interest Rate; (6) the current Monthly
              Payment; (7)
              the original term to maturity; (8) the scheduled maturity date; (9)
              the
              principal balance of the Mortgage Loan as of the Cut-off Date after
              deduction of
              payments of principal due on or before the Cut-off Date whether or
              not
              collected; (10) the Loan-to-Value Ratio; (11) a code indicating the
              mortgage
              guaranty insurance company; (12) the Servicing Fee Rate; (13) a code
              indicating
              whether the Mortgage Loan is a Buydown Mortgage Loan; (14) the date
              of
              origination; (15) the last payment date on which a payment was applied;
              (16) the
              PMI policy insurer’s name; (17) the documentation level (full, alternative,
              limited); (18) loan purpose; (19) a code indicating whether the Mortgaged
              Property is owner-occupied or investor property; (20) the Gross Margin;
              (21) the
              Index; and (22) the next Adjustment Date.

            

            Mortgage
              Note:
              The
              note or other evidence of the indebtedness of a Mortgagor secured by
              a
              Mortgage.

            

            Mortgaged
              Property:
              The
              real property securing repayment of the debt evidenced by a Mortgage
              Note, or
              with respect to a Cooperative Loan, the Cooperative Apartment.

            

            Mortgagor:
              The
              obligor on a Mortgage Note.

            

            Officer's
              Certificate:
              A
              certificate signed by the Chairman of the Board or the Vice Chairman
              of the
              Board or the President or a Vice President or an Assistant Vice President
              and
              certified by the Treasurer or the Secretary or one of the Assistant
              Treasurers
              or Assistant Secretaries of the Company, 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 Company,
              reasonably
              acceptable to the Purchaser.

            

            Periodic
              Interest Rate Cap:
              As to
              each Adjustable Rate Mortgage Loan, the maximum increase or decrease
              in the
              Mortgage Interest Rate on any Adjustment Date pursuant to the terms
              of the
              Mortgage Note.

            

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

            

            Pledge
              Agreement:
              With
              respect to a Cooperative Loan, the specific agreement creating a first
              lien on
              and pledge of the Cooperative Shares and the appurtenant Proprietary
              Lease.

             

            Pledge
              Instruments:
              With
              respect to a Cooperative Loan, the Stock Power, the Assignment of the
              Proprietary Lease and the Assignment of the Mortgage Note and Pledge
              Agreement.

             

            PMI
              Policy:
              A
              policy of primary mortgage guaranty insurance evidenced by an electronic
              form
              and certificate number issued by a Qualified Insurer, as required by
              this
              Agreement with respect to certain Mortgage Loans. The premiums of a
              PMI Policy
              may be paid by the Mortgagor or by the Company from its own funds,
              without
              reimbursement. If the premiums are paid by the Company, the PMI Policy
              is an
              LPMI Policy.

            

            Prepayment
              Interest Shortfall:
              As to
              any Remittance Date and each Mortgage Loan subject to a Principal Prepayment
              received during the calendar month preceding such Remittance Date,
              the amount,
              if any, by which one month’s interest at the related Mortgage Loan Remittance
              Rate on such Principal Prepayment exceeds the amount of interest paid
              in
              connection with such Principal Prepayment.

            

            Prepayment
              Penalty:
              The
              prepayment charge or penalty interest required to be paid by a Mortgagor
              as the
              result of a Principal Prepayment in full of the related Mortgage Loan,
              not
              otherwise due thereon in respect of principal or interest, which is
              intended to
              be a disincentive to prepayment, as provided in the related Mortgage
              Note or
              Mortgage.

            

            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.

            

            Principal
              Prepayment:
              Any
              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.

            

            Principal
              Prepayment Period:
              The
              calendar month preceding the month in which the related Remittance
              Date
              occurs.

            

            Project:
              With
              respect to a Cooperative Loan, all real property owned by the related
              Cooperative including the land, separate dwelling units and all common
              areas.

             

            Proprietary
              Lease:
              With
              respect to a Cooperative Loan, a lease on a Cooperative Apartment evidencing
              the
              possessory interest of the Mortgagor in such Cooperative Apartment. 

             

            Purchaser:
              Nomura
              Credit & Capital, Inc., or its successor in interest or any successor or
              assignee to the Purchaser under this Agreement as herein provided.

            

            Qualified
              Correspondent:
              Any
              Person from which the Company purchased Mortgage Loans, provided that
              the
              following conditions are satisfied: (i) such Mortgage Loans were originated
              pursuant to an agreement between the Company and such Person that contemplated
              that such Person would underwrite mortgage loans from time to time,
              for sale to
              the Company, in accordance with underwriting guidelines designated
              by the
              Company (“Designated Guidelines”) or guidelines that do not vary materially from
              such Designated Guidelines; (ii) such Mortgage Loans were in fact underwritten
              as described in clause (i) above and were acquired by the Company within
              180
              days after origination; (iii) either (x) the Designated Guidelines
              were, at the
              time such Mortgage Loans were originated, used by the Company in origination
              of
              mortgage loans of the same type as the Mortgage Loans for the Company’s own
              account or (y) the Designated Guidelines were, at the time such Mortgage
              Loans
              were underwritten, designated by the Company on a consistent basis
              for use by
              lenders in originating mortgage loans to be purchased by the Company;
              and (iv)
              the Company employed, at the time such Mortgage Loans were acquired
              by the
              Company, pre-purchase or post-purchase quality assurance procedures
              (which may
              involve, among other things, review of a sample of mortgage loans purchased
              during a particular time period or through particular channels) designed
              to
              ensure that Persons from which it purchased mortgage loans properly
              applied the
              underwriting criteria designated by the Company.

            

            Qualified
              Depository:
              A
              deposit account or accounts maintained with a federal or state chartered
              depository institution the deposits in which are insured by the FDIC
              to the
              applicable limits and the short-term unsecured debt obligations of
              which (or, in
              the case of a depository institution that is a subsidiary of a holding
              company,
              the short-term unsecured debt obligations of such holding company)
              are rated A-1
              by Standard & Poor’s Ratings Group or Prime-1 by Moody’s Investors Service,
              Inc. (or a comparable rating if another rating agency is specified
              by the
              Purchaser by written notice to the Company) at the time any deposits
              are held on
              deposit therein.

            

            Qualified
              Insurer:
              A
              mortgage guaranty insurance company duly authorized and licensed where
              required
              by law to transact mortgage guaranty insurance business and approved
              as an
              insurer by Fannie Mae or Freddie Mac.

            

            Qualified
              Substitute Mortgage Loan:
              A
              mortgage loan eligible to be substituted by the Company for a Deleted
              Mortgage
              Loan which must, on the date of such substitution, (i) have an outstanding
              principal balance, after deduction of all scheduled payments due in
              the month of
              substitution (or in the case of a substitution of more than one mortgage
              loan
              for a Deleted Mortgage Loan, an aggregate principal balance), not in
              excess of
              the Stated Principal Balance of the Deleted Mortgage Loan; (ii) have
              a Mortgage
              Loan Remittance Rate not less than, and not more than two percent (2%)
              greater,
              than the Mortgage Loan Remittance Rate of the Deleted Mortgage Loan;
              (iii) have
              a remaining term to maturity not greater than and not more than one
              year less
              than that of the Deleted Mortgage Loan; (iv) be of the same type as
              the Deleted
              Mortgage Loan and (v) comply with each representation and warranty
              set forth in
              Sections 3.01 and 3.02.

            

            Rating
              Agency:
              Each of
              Fitch, Inc., Moody’s Investors Service, Inc., Standard & Poor’s Ratings
              Services and Dominion Bond Rating Service, Inc., or any successor
              thereto.

            

            Recognition
              Agreement:
              An
              agreement whereby a Cooperative and a lender with respect to a Cooperative
              Loan
              (i) acknowledge that such lender may make, or intends to make, such
              Cooperative
              Loan, and (ii) make certain agreements with respect to such Cooperative
              Loan.

            

            Reconstitution:
              Any
              Securitization Transaction or Whole Loan Transfer.

            

            Reconstitution
              Agreement:
              The
              agreement or agreements entered into by the Company and the Purchaser
              and/or
              certain third parties on the Reconstitution Date or Dates with respect
              to any or
              all of the Mortgage Loans serviced hereunder, in connection with a
              Whole Loan
              Transfer or Securitization Transaction.

            

            Reconstitution
              Date:
              The
              date on which any or all of the Mortgage Loans serviced under this
              Agreement may
              be removed from this Agreement and reconstituted as part of a Securitization
              Transaction, Agency Sale or Whole Loan Transfer pursuant to Section
              9.01 hereof.
              The Reconstitution Date shall be such date which the Purchaser shall
              designate.

            

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

            

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

            

            REMIC
              Provisions:
              Provisions of the federal income tax law relating to a REMIC, which
              appear at
              Section 860A through 860G of Subchapter M of Chapter 1, Subtitle A
              of the Code,
              and related provisions, regulations, rulings or pronouncements promulgated
              thereunder, as the foregoing may be in effect from time to time.

            

            Remittance
              Date:
              The
              18th day (or if such 18th day is not a Business Day, the first Business
              Day
              immediately following) of any month, beginning with the First Remittance
              Date.

            

            REO
              Disposition:
              The
              final sale by the Company of any REO Property.

            

            REO
              Disposition Proceeds:
              All
              amounts received with respect to an REO Disposition pursuant to Section
              4.16.

            

            REO
              Property:
              A
              Mortgaged Property acquired by the Company on behalf of the Purchaser
              through
              foreclosure or by deed in lieu of foreclosure, as described in Section
              4.16.

            

            Repurchase
              Price:
              Unless
              agreed otherwise by the Purchaser and the Company, a price equal to
              (i) the
              Stated Principal Balance of the Mortgage Loan plus (ii) interest on
              such Stated
              Principal Balance at the Mortgage Loan Remittance Rate from the date
              on which
              interest has last been paid and distributed to the Purchaser through
              the last
              day of the month in which such repurchase takes place, less amounts
              received or
              advanced in respect of such repurchased Mortgage Loan which are being
              held in
              the Custodial Account for distribution in the month of repurchase.

            

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

            

            Securitization
              Transaction:
              Any
              transaction involving either (a) a sale or other transfer of some or
              all of the
              Mortgage Loans directly or indirectly to an issuing entity in connection
              with an
              issuance of publicly offered or privately placed, rated or unrated
              mortgage-backed securities or (b) an issuance of publicly offered or
              privately
              placed, rated or unrated securities, the payments on which are determined
              primarily by reference to one or more portfolios of residential mortgage
              loans
              consisting, in whole or in part, of some or all of the Mortgage
              Loans.

            

            Servicer:
              As
              defined in Section 9.01(e)(iii).

            

            Servicing
              Advances:
              All
              customary, reasonable and necessary "out of pocket" costs and expenses
              other
              than Monthly Advances (including reasonable attorney's fees and disbursements)
              incurred in the performance by the Company of its servicing obligations,
              including, but not limited to, the cost of (a) the preservation, restoration
              and
              protection of the Mortgaged Property, (b) any enforcement or judicial
              proceedings, including foreclosures, (c) the management and liquidation
              of any
              REO Property, (d) compliance with the obligations under Section 4.08
              (excluding
              the Company’s obligation to pay the premiums on LPMI Policies) and (e) force
              placing flood insurance in accordance with Section 4.10.

            

            Servicing
              Criteria:
              The
“servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be
              amended from time to time.

            

            Servicing
              Fee:
              With
              respect to each Mortgage Loan, the amount of the annual fee the Purchaser
              shall
              pay to the Company, which shall, for a period of one full month, be
              equal to
              one-twelfth of the product of (a) the Servicing Fee Rate and (b) the
              outstanding
              principal balance of such Mortgage Loan. Such fee shall be payable
              monthly,
              computed on the basis of the same principal amount and period respecting
              which
              any related interest payment on a Mortgage Loan is received. The obligation
              of
              the Purchaser to pay the Servicing Fee is limited to, and the Servicing
              Fee is
              payable solely from, the interest portion (including recoveries with
              respect to
              interest from Liquidation Proceeds, to the extent permitted by Section
              4.05) of
              such Monthly Payment collected by the Company, or as otherwise provided
              under
              Section 4.05.

            

            Servicing
              Fee Rate:
              0.50%
              per annum per Mortgage Loan.

            

            Servicing
              File:
              With
              respect to each Mortgage Loan, the file retained by the Company consisting
              of
              originals of all documents in the Mortgage File which are not delivered
              to the
              Custodian and copies of the Mortgage Loan Documents listed in the Custodial
              Agreement the originals of which are delivered to the Custodian pursuant
              to
              Section 2.03.

            

            Servicing
              Officer:
              Any
              officer of the Company 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 Company to the Purchaser upon request, as
              such list
              may from time to time be amended.

            

            Stated
              Principal Balance:
              As to
              each Mortgage Loan and as of any date of determination, (i) the principal
              balance of the Mortgage Loan at the 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
              related
              Mortgage Loan representing payments or recoveries of principal or advances
              in
              lieu thereof. 

            

            Static
              Pool Information:
              Static
              pool information as described in Item 1105(a)(1)-(3) and 1105(c) of
              Regulation
              AB.

            

            Stock
              Certificate:
              With
              respect to a Cooperative Loan, a certificate evidencing ownership of
              the
              Cooperative Shares issued by the Cooperative.

             

            Stock
              Power:
              With
              respect to a Cooperative Loan, an assignment of the Stock Certificate
              or an
              assignment of the Cooperative Shares issued by the Cooperative. 

             

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

             

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

             

            Third-Party
              Originator:
              Each
              Person, other than a Qualified Correspondent, that originated Mortgage
              Loans
              acquired by the Company.

            

            Underwriting
              Guidelines: The
              underwriting guidelines of the Company, a copy of which has been delivered
              by
              the Company to the Purchaser.

            

            Whole
              Loan Transfer:
              Any
              sale or transfer of some or all of the Mortgage Loans by the Purchaser
              to a
              third party, which sale or transfer is not a Securitization
              Transaction.

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            ARTICLE
              II

             

            CONVEYANCE
              OF MORTGAGE LOANS; POSSESSION OF MORTGAGE FILES; BOOKS AND RECORDS;
              CUSTODIAL
              AGREEMENT; DELIVERY OF DOCUMENTS

            

            Section
              2.01 Conveyance
              of Mortgage Loans; Possession of Mortgage Files; Maintenance of Servicing
              Files.

            

            The
              Company, simultaneously with the execution and delivery of this Agreement,
              does
              hereby sell, transfer, assign, set over and convey to the Purchaser,
              without
              recourse, but subject to the terms of this Agreement, all the right,
              title and
              interest of the Company in and to the Mortgage Loans. Pursuant to Section
              2.03,
              the Company has delivered the Mortgage Loan Documents to the
              Custodian.

            

            The
              contents of each Mortgage File not delivered to the Custodian are and
              shall be
              held in trust by the Company for the benefit of the Purchaser as the
              owner
              thereof. The Company shall maintain a Servicing File consisting of
              a copy of the
              contents of each Mortgage File and the originals of the documents in
              each
              Mortgage File not delivered to the Custodian. The possession of each
              Servicing
              File by the Company is at the will of the Purchaser for the sole purpose
              of
              servicing the related Mortgage Loan, and such retention and possession
              by the
              Company is in a custodial capacity only. Upon the sale of the Mortgage
              Loans the
              ownership of each Mortgage Note, the related Mortgage and the related
              Mortgage
              File and Servicing File shall vest immediately 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 the Company shall
              vest
              immediately in the Purchaser and shall be retained and maintained by
              the
              Company, in trust, at the will of the Purchaser and only in such custodial
              capacity. The Company shall release its custody of the contents of
              any Servicing
              File only in accordance with written instructions from the Purchaser,
              unless
              such release is required as incidental to the Company's servicing of
              the
              Mortgage Loans, in the case of the Servicing File, or is in connection
              with a
              repurchase of any Mortgage Loan pursuant to Section 3.03 or 6.02. All
              such costs
              associated with the release, transfer and re-delivery to the Company
              shall be
              the responsibility of the Purchaser.

            

            In
              addition, in connection with the assignment of any MERS Mortgage Loan,
              the
              Company agrees that it will cause, the MERS® System to indicate that such
              Mortgage Loans have been assigned by the Company 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 as
              beneficial owner of such Mortgage Loans. 

            

            Section
              2.02 Books
              and Records; Transfers of Mortgage Loans.

            

            From
              and
              after the sale of the Mortgage Loans to 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, shall be received and held by the
              Company in
              trust for the benefit of the Purchaser as owner of the Mortgage Loans,
              and the
              Company shall retain record title to the related Mortgages for the
              sole purpose
              of facilitating the servicing and the supervision of the servicing
              of the
              Mortgage Loans.

            

            The
              sale
              of each Mortgage Loan shall be reflected on the Company's balance sheet
              and
              other financial statements as a sale of assets by the Company. The
              Company shall
              be responsible for maintaining, and shall maintain, a complete set
              of books and
              records for each Mortgage Loan which shall be marked clearly to reflect
              the
              ownership of each Mortgage Loan by the Purchaser. In particular, the
              Company
              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, 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 Fannie Mae or Freddie Mac
              and records
              of periodic inspections 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 Company 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 Company complies with the requirements of the Fannie Mae Selling
              and
              Servicing Guide, as amended from time to time.

            

            The
              Company shall maintain with respect to each Mortgage Loan and shall
              make
              available for inspection by any 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.

            

            The
              Company shall keep at its servicing office books and records in which,
              subject
              to such reasonable regulations as it may prescribe, the Company shall
              note
              transfers of Mortgage Loans. No transfer of a Mortgage Loan may be
              made unless
              such transfer is in compliance with the terms hereof. For the purposes
              of this
              Agreement, the Company shall be under no obligation to deal with any
              Person with
              respect to this Agreement or the Mortgage Loans unless the books and
              records
              show such Person as the owner of the Mortgage Loan. The Purchaser may,
              subject
              to the terms of this Agreement, sell and transfer one or more of the
              Mortgage
              Loans. The Purchaser also shall advise the Company of the transfer.
              Upon receipt
              of notice of the transfer, the Company shall mark its books and records
              to
              reflect the ownership of the Mortgage Loans of such assignee, and shall
              release
              the previous Purchaser from its obligations hereunder with respect
              to the
              Mortgage Loans sold or transferred. Such notification of a transfer
              shall
              include a final loan schedule which shall be received by the Company
              no fewer
              than five (5) Business Days before the last Business Day of the month.
              If such
              notification is not received as specified above, the Company’s duties to remit
              and report as required by Section 5 shall begin with the next Due
              Period.

            

            Section
              2.03 Custodial
              Agreement; Delivery of Documents.

            

            The
              Company has delivered to the Custodian those Mortgage Loan Documents
              contained
              in the Mortgage File as identified in Exhibit C to this Agreement with
              respect
              to each Mortgage Loan.

            

            The
              Custodian has certified its receipt of all such Mortgage Loan Documents
              required
              to be delivered pursuant to the Custodial Agreement, as evidenced by
              the initial
              certification of the Custodian in the form annexed to the Custodial
              Agreement.
              The Company shall be responsible for recording the initial Assignments
              of
              Mortgage. The Purchaser will be responsible for the fees and expenses
              of its
              Custodian.

            

            The
              Company shall forward to the Custodian 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 one week
              of their
              execution, provided, however, that the Company shall provide the Custodian
              with
              a certified true copy of any such document submitted for recordation
              within ten
              (10) days of its execution, and shall 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 sixty days of its submission for recordation.

            

            In
              the
              event the public recording office is delayed in returning any original
              document,
              the Company shall deliver to the Custodian within 240 days of its submission
              for
              recordation, a copy of such document and an Officer's Certificate,
              which shall
              (i) identify the recorded document; (ii) state that the recorded document
              has
              not been delivered to the Custodian due solely to a delay by the public
              recording office, (iii) state the amount of time generally required
              by the
              applicable recording office to record and return a document submitted
              for
              recordation, and (iv) specify the date the applicable recorded document
              will be
              delivered to the Custodian. The Company will be required to deliver
              the document
              to the Custodian by the date specified in (iv) above. An extension
              of the date
              specified in (iv) above may be requested from the Purchaser, which
              consent shall
              not be unreasonably withheld. In
              the
              event that any document described above has not been delivered to the
              Custodian
              by the date set forth in (iv) above or by the extended date as may
              be agreed to
              by both parties, then the Company shall, at Purchaser’s request, repurchase the
              related Mortgage Loan for which such documents have not been
              delivered.

            

            In
              the
              event that new, replacement, substitute or additional Stock Certificates
              are
              issued with respect to existing Cooperative Shares, the Company immediately
              shall deliver to the Custodian the new Stock Certificates, together
              with the
              related Stock Powers in blank. Such new Stock Certificates shall be
              subject to
              the related Pledge Instruments and shall be subject to all of the terms,
              covenants and conditions of this Agreement.

            

            Section
              2.04 Examination
              of Mortgage Files. 

            

            Prior
              to
              the Closing Date, the Company shall (a) deliver to the Purchaser in
              escrow, for
              examination, the Mortgage File for each Mortgage Loan, including a
              copy of the
              Assignment of Mortgage, pertaining to each Mortgage Loan, or (b) make
              the
              Mortgage Files available to the Purchaser for examination at the Company's
              offices or such other location as shall otherwise be agreed upon by
              the
              Purchaser and the Company. Such examination may be made by the Purchaser
              at any
              time before or after the Closing Date or by any prospective purchaser
              of the
              Mortgage Loans from the Purchaser, at any time after the Closing Date
              upon prior
              reasonable notice to the Company. The fact that the Purchaser or any
              prospective
              purchaser of the Mortgage Loans has conducted or has failed to conduct
              any
              partial or complete examination of the Mortgage Files shall not affect
              the
              Purchaser's (or any of its successor's) rights to demand repurchase,
              substitution or other relief or remedy as provided under this
              Agreement.

            

            Prior
              to
              Company’s receipt of the Purchase Price, the Purchaser shall cause the Custodian
              to act as bailee for the sole and exclusive benefit of the Company
              pursuant to
              the Custodial Agreement and act only in accordance with Company’s instructions.
              Upon the Company’s receipt of the Purchase Price, the Company shall provide
              notification to the Custodian to release ownership of the Mortgage
              Loan
              Documents to the Purchaser. Such notification shall be in a form of
              a written
              notice by facsimile or other electronic media, with a copy sent to
              the
              Purchaser. Subsequent to such release, such Mortgage Loan Documents
              shall be
              retained by the Custodian for the benefit of the Purchaser. All Mortgage
              Loan
              Documents related to Mortgage Loans not purchased by the Purchaser
              on the
              Closing Date, shall be maintained by the Custodian for the benefit
              of the
              Company and shall be returned to the Company within two (2) Business
              Days after
              the Closing Date. 

            

            Section
              2.05 Representations,
              Warranties and Agreements of Company. 

            

            The
              Company agrees and acknowledges that it shall, as a condition to the
              consummation of the transactions contemplated hereby, make the representations
              and warranties specified in Section 3.01 and 3.02 of this Agreement,
              as of the
              Closing Date. The Company, without conceding that the Mortgage Loans
              are
              securities, hereby makes the following additional representations,
              warranties
              and agreements which shall be deemed to have been made as of the Closing
              Date:

            

            
              	 	
                      (a)

                    	
                      neither
                        the Company nor anyone acting on its behalf has offered,
                        transferred,
                        pledged, sold or otherwise disposed of any Mortgage Loans,
                        any interest in
                        any Mortgage Loans or any other similar security to, or solicited
                        any
                        offer to buy or accept a transfer, pledge or other disposition
                        of any
                        Mortgage Loans, any interest in any Mortgage Loans or any
                        other similar
                        security from, or otherwise approached or negotiated with
                        respect to any
                        Mortgage Loans, any interest in any Mortgage Loans or any
                        other similar
                        security with, any Person in any manner, or made any general
                        solicitation
                        by means of general advertising or in any other manner, or
                        taken any other
                        action which would constitute a distribution of the Mortgage
                        Loans under
                        the Securities Act or which would render the disposition
                        of any Mortgage
                        Loans a violation of Section 5 of the Securities Act or require
                        registration pursuant thereto, nor will it act, nor has it
                        authorized or
                        will it authorize any Person to act, in such manner with
                        respect to the
                        Mortgage Loans; and

                    

            

            

            
              	 	
                      (b)

                    	
                      the
                        Company has not dealt with any broker or agent or anyone
                        else who might be
                        entitled to a fee or commission in connection with this transaction
                        other
                        than the Purchaser.

                    

            

            

            Section
              2.06 Representation,
              Warranties and Agreement of Purchaser. 

            

            The
              Purchaser, without conceding that the Mortgage Loans are securities,
              hereby
              makes the following representations, warranties and agreements, which
              shall have
              been deemed to have been made as of the Closing Date.

            

            
              	 	
                      (a)

                    	
                      the
                        Purchaser understands that the Mortgage Loans have not been
                        registered
                        under the Securities Act or the securities laws of any
                        state;

                    

            

            

            
              	 	
                      (b)

                    	
                      the
                        Purchaser is acquiring the Mortgage Loans for its own account
                        only and not
                        for any other Person;

                    

            

            

            
              	 	
                      (c)

                    	
                      the
                        Purchaser considers itself a substantial, sophisticated institutional
                        investor having such knowledge and experience in financial
                        and business
                        matters that it is capable of evaluating the merits and risks
                        of
                        investment in the Mortgage Loans;

                    

            

            

            
              	 	
                      (d)

                    	
                      the
                        Purchaser has been furnished with all information regarding
                        the Mortgage
                        Loans which it has requested from the Company;
                        and

                    

            

            

            
              	 	
                      (e)

                    	
                      neither
                        the Purchaser nor anyone acting on its behalf offered, transferred,
                        pledged, sold or otherwise disposed of any Mortgage Loan,
                        any interest in
                        any Mortgage Loan or any other similar security to, or solicited
                        any offer
                        to buy or accept a transfer, pledge or other disposition
                        of any Mortgage
                        Loan, any interest in any Mortgage Loan or any other similar
                        security
                        from, or otherwise approached or negotiated with respect
                        to any Mortgage
                        Loan, any interest in any Mortgage Loan or any other similar
                        security
                        with, any Person in any manner, or made any general solicitation
                        by means
                        of general advertising or in any other manner, or taken any
                        other action
                        which would constitute a distribution of the Mortgage Loans
                        under the
                        Securities Act or which would render the disposition of any
                        Mortgage Loan
                        a violation of Section 5 of the Securities Act or require
                        registration
                        pursuant thereto, nor will it act, nor has it authorized
                        or will it
                        authorize any Person to act, in such manner with respect
                        to the Mortgage
                        Loans.

                    

            

            

            Section
              2.07 Closing. 

            

            The
              closing for the purchase and sale of the Mortgage Loans, shall take
              place on the
              Closing Date. At the Purchaser's option, 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 shall be subject to each of the following conditions:

            

            
              	 	
                      (a)

                    	
                      all
                        of the representations and warranties of the Company under
                        this Agreement
                        shall be true and correct as of the Closing Date and no event
                        shall have
                        occurred which, with notice or the passage of time, would
                        constitute an
                        Event of Default under this
                        Agreement;

                    

            

            

            
              	 	
                      (b)

                    	
                      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 respective
                        terms
                        thereof;

                    

            

            

            
              	 	
                      (c)

                    	
                      the
                        Company shall have delivered and released to the Custodian
                        under this
                        Agreement all documents required pursuant to this Agreement;
                        and

                    

            

            

            
              	 	
                      (d)

                    	
                      all
                        other terms and conditions of this Agreement shall have been
                        complied
                        with.

                    

            

            

            Subject
              to the foregoing conditions, the Purchaser shall pay to the Company
              on the
              Closing Date the Purchase Price by wire transfer of immediately available
              funds
              to the account designated by the Company.

            

            Section
              2.08 Closing
              Documents. 

            

            With
              respect to the Mortgage Loans, the closing documents shall consist
              of fully
              executed originals of the following documents:

            

            
              	 	
                      (a)

                    	
                      this
                        Agreement, dated as of the Cut-off Date, in two
                        counterparts;

                    

            

            

            
              	 	
                      (b)

                    	
                      the
                        Custodial Agreement, in three counterparts, in the form attached
                        as
                        Exhibit D to this Agreement;

                    

            

            

            
              	 	
                      (c)

                    	
                      the
                        Mortgage Loan Schedule, one copy to be attached to each counterpart
                        of
                        this Agreement;

                    

            

            

            
              	 	
                      (d)

                    	
                      a
                        receipt and certification, as required under the Custodial
                        Agreement;

                    

            

            

            
              	(e)  	
                      an
                        Opinion of Counsel of the Company, in the form of Exhibit
                        E hereto;
                        

                    

            

            

            
              	(f)  	
                      an
                        Officer’s Certificate of the Company, in the form of Exhibit F hereto;
                        and

                    

            

            

            
              	(g)  	
                      the
                        Commitment Letter.

                    

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            ARTICLE
              III

             

            REPRESENTATIONS
              AND WARRANTIES REMEDIES AND BREACH

             

            

            Section
              3.01 Company
              Representations and Warranties.

            

            The
              Company hereby represents and warrants to the Purchaser that, as of
              the Closing
              Date:

            

            
              	 	
                      (a)

                    	
                      Due
                        Organization and Authority.

                    

            

            

            The
              Company is a national banking association duly organized, validly existing
              and
              in good standing under the laws of the United States and has all licenses
              necessary to carry on its business as now being conducted and is licensed,
              qualified and in good standing in each state where a Mortgaged Property
              is
              located if the laws of such state require licensing or qualification
              in order to
              conduct business of the type conducted by the Company, and in any event
              the
              Company is in compliance with the laws of any such state to the extent
              necessary
              to ensure the enforceability of the related Mortgage Loan and the servicing
              of
              such Mortgage Loan in accordance with the terms of this Agreement;
              the Company
              has the full power and authority to execute and deliver this Agreement
              and to
              perform in accordance herewith; the execution, delivery and performance
              of this
              Agreement (including all instruments of transfer to be delivered pursuant
              to
              this Agreement) by the Company and the consummation of the transactions
              contemplated hereby have been duly and validly authorized; this Agreement
              evidences the valid, binding and enforceable obligation of the Company;
              and all
              requisite action has been taken by the Company to make this Agreement
              valid and
              binding upon the Company in accordance with its terms;

            

            
              	 	
                      (b)

                    	
                      Ordinary
                        Course of Business.

                    

            

            

            The
              consummation of the transactions contemplated by this Agreement are
              in the
              ordinary course of business of the Company, who is in the business
              of selling
              and servicing loans, and the transfer, assignment and conveyance of
              the Mortgage
              Notes and the Mortgages by the Company pursuant to this Agreement are
              not
              subject to the bulk transfer or any similar statutory provisions in
              effect in
              any applicable jurisdiction;

            

            
              	 	
                      (c)

                    	
                      No
                        Conflicts.

                    

            

            

            Neither
              the execution and delivery of this Agreement, the acquisition of the
              Mortgage
              Loans by the Company, the sale of the Mortgage Loans to the Purchaser
              or the
              transactions contemplated hereby, nor the fulfillment of or compliance
              with the
              terms and conditions of this Agreement will conflict with or result
              in a breach
              of any of the terms, articles of incorporation or by-laws or any legal
              restriction or any agreement or instrument to which the Company is
              now a party
              or by which it is bound, or constitute a default or result in the violation
              of
              any law, rule, regulation, order, judgment or decree to which the Company
              or its
              property is subject, or impair the ability of the Purchaser to realize
              on the
              Mortgage Loans, or impair the value of the Mortgage Loans;

            

            
              	 	
                      (d)

                    	
                      Ability
                        to Service.

                    

            

            

            The
              Company is an approved seller/servicer of conventional residential
              mortgage
              loans for Fannie Mae or Freddie Mac, with the facilities, procedures,
              and
              experienced personnel necessary for the sound servicing of mortgage
              loans of the
              same type as the Mortgage Loans. The Company is in good standing to
              sell
              mortgage loans to and service mortgage loans for Fannie Mae or Freddie
              Mac, and
              no event has occurred, including but not limited to a change in insurance
              coverage, which would make the Company unable to comply with Fannie
              Mae or
              Freddie Mac eligibility requirements or which would require notification
              to
              either Fannie Mae or Freddie Mac;

            

            
              	 	
                      (e)

                    	
                      Reasonable
                        Servicing Fee.

                    

            

            

            The
              Company 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 Company, for accounting and tax purposes, as
              compensation for the servicing and administration of the Mortgage Loans
              pursuant
              to this Agreement;

            

            
              	 	
                      (f)

                    	
                      Ability
                        to Perform.

                    

            

            

            The
              Company 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.
              The
              Company is solvent and the sale of the Mortgage Loans will not cause
              the Company
              to become insolvent. The sale of the Mortgage Loans is not undertaken
              to hinder,
              delay or defraud any of the Company's creditors;

            

            
              	 	
                      (g)

                    	
                      No
                        Litigation Pending.

                    

            

            

            There
              is
              no action, suit, proceeding or investigation pending or threatened
              against the
              Company which, either in any one instance or in the aggregate, may
              result in any
              material adverse change in the business, operations, financial condition,
              properties or assets of the Company, or in any material impairment
              of the right
              or ability of the Company to carry on its business substantially as
              now
              conducted, or in any material liability on the part of the Company,
              or which
              would draw into question the validity of this Agreement or the Mortgage
              Loans or
              of any action taken or to be contemplated herein, or which would be
              likely to
              impair materially the ability of the Company to perform under the terms
              of this
              Agreement;

            

            
              	 	
                      (h)

                    	
                      No
                        Consent Required.

                    

            

            

            No
              consent, approval, authorization or order of any court or governmental
              agency or
              body is required for the execution, delivery and performance by the
              Company of
              or compliance by the Company with this Agreement or the sale of the
              Mortgage
              Loans as evidenced by the consummation of the transactions contemplated
              by this
              Agreement, or if required, such approval has been obtained prior to
              the Closing
              Date;

            

            
              	 	
                      (i)

                    	
                      Selection
                        Process.
                        

                    

            

            

            The
              Mortgage Loans were selected from among the outstanding adjustable
              rate and
              fixed rate one- to four-family mortgage loans in the Company's mortgage
              banking
              portfolio at the Closing Date as to which the representations and warranties
              set
              forth in Section 3.02 could be made and such selection was not made
              in a manner
              so as to affect adversely the interests of the Purchaser;

            

            
              	 	
                      (j)

                    	
                      No
                        Untrue Information.

                    

            

            

            Neither
              this Agreement nor any statement, report or other document furnished
              or to be
              furnished pursuant to this Agreement or in connection with the transactions
              contemplated hereby contains any untrue statement of fact or omits
              to state a
              fact necessary to make the statements contained therein not
              misleading;

            

            
              	 	
                      (k)

                    	
                      Sale
                        Treatment.

                    

            

            

            The
              Company has determined that the disposition of the Mortgage Loans pursuant
              to
              this Agreement will be afforded sale treatment for accounting and tax
              purposes;

            

            
              	 	
                      (l)

                    	
                      No
                        Material Change.
                        

                    

            

            

            There
              has
              been no material adverse change in the business, operations, financial
              condition
              or assets of the Company since the date of the Company’s most recent financial
              statements; 

            

            
              	 	
                      (m)

                    	
                      No
                        Brokers’ Fees.

                    

            

            

            The
              Company has not dealt with any broker, investment banker, agent or
              other Person
              that may be entitled to any commission or compensation in the connection
              with
              the sale of the Mortgage Loans; 

            

            (n) Fair
              Consideration. 

            

            The
              consideration received by the Company upon the sale of the Mortgage
              Loans under
              this Agreement constitutes fair consideration and reasonably equivalent
              value
              for the Mortgage Loans; and

            

            
              	(o)  	
                      MERS.

                    

            

            

            The
              Company is a member of MERS in good standing.

            

            

            Section
              3.02 Representations
              and Warranties Regarding Individual Mortgage Loans.

            

            As
              to
              each Mortgage Loan, the Company hereby represents and warrants to the
              Purchaser
              that as of the Closing Date:

            

            
              	 	
                      (a)

                    	
                      Mortgage
                        Loans as Described.

                    

            

            

            The
              information set forth in the Mortgage Loan Schedule attached hereto
              as Exhibit A
              and the information contained on the Data File delivered to the Purchaser
              is
              true and correct;

            

            
              	 	
                      (b)

                    	
                      Payments
                        Current.

                    

            

            

            All
              payments required to be made up to the Cut-off Date for the Mortgage
              Loan under
              the terms of the Mortgage Note have been made and credited. No payment
              under any
              Mortgage Loan has been thirty (30) days delinquent more than one (1)
              time within
              twelve (12) months prior to the Closing Date;

            

            
              	 	
                      (c)

                    	
                      No
                        Outstanding Charges.

                    

            

            

            There
              are
              no defaults in complying with the terms of the Mortgages, and all taxes,
              governmental assessments, insurance premiums, leasehold payments, water,
              sewer
              and municipal charges, which previously became due and owing have been
              paid, or
              an escrow of funds has been established in an amount sufficient to
              pay for every
              such item which remains unpaid and which has been assessed but is not
              yet due
              and payable. The Company has not advanced funds, or induced, or solicited
              directly or indirectly, the payment of any amount required under the
              Mortgage
              Loan, except for interest accruing from the date of the Mortgage Note
              or date of
              disbursement of the Mortgage Loan proceeds, whichever is later, to
              the day which
              precedes by one month the Due Date of the first installment of principal
              and
              interest;

            

            
              	 	
                      (d)

                    	
                      Original
                        Terms Unmodified.

                    

            

            

            The
              terms
              of the Mortgage Note and Mortgage have not been impaired, waived, altered
              or
              modified in any respect, except by a written instrument which has been
              recorded,
              if necessary, to protect the interests of the Purchaser and which has
              been
              delivered to the Custodian. The substance of any such waiver, alteration
              or
              modification has been approved by the issuer of any related PMI Policy
              and the
              title insurer, to the extent required by the policy, and its terms
              are reflected
              on the Mortgage Loan Schedule. No Mortgagor has been released, in whole
              or in
              part, except in connection with an assumption agreement approved by
              the issuer
              of any related PMI Policy and the title insurer, to the extent required
              by the
              policy, and which assumption agreement is part of the Mortgage File
              delivered to
              the Custodian and the terms of which are reflected in the Mortgage
              Loan
              Schedule;

            

            
              	 	
                      (e)

                    	
                      No
                        Defenses.

                    

            

            

            The
              Mortgage Loan is 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 either the Mortgage Note or
              the
              Mortgage unenforceable, in whole or in part, or subject to any 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;

            

            
              	 	
                      (f)

                    	
                      No
                        Satisfaction of Mortgage.

                    

            

            

            The
              Mortgage has not been satisfied, canceled, 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, release, cancellation, subordination
              or
              rescission. The
              Company 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 Company waived any default resulting from any
              action or
              inaction by the Mortgagor;

            

            
              	 	
                      (g)

                    	
                      Validity
                        of Mortgage Documents.

                    

            

            

            The
              Mortgage Note and the Mortgage and related documents are genuine, and
              each is
              the legal, valid and binding obligation of the maker thereof enforceable
              in
              accordance with its terms. All parties to the Mortgage Note and the
              Mortgage had
              legal capacity to enter into the Mortgage Loan and to execute and deliver
              the
              Mortgage Note and the Mortgage, and the Mortgage Note and the Mortgage
              have been
              duly and properly executed by such parties;

            

            With
              respect to each Cooperative Loan, the Mortgage Note, the Mortgage,
              the Pledge
              Agreement, and related documents are genuine, and each is the legal,
              valid and
              binding obligation of the maker thereof enforceable in accordance with
              its
              terms. All parties to the Mortgage Note, the Mortgage, the Pledge Agreement,
              the
              Proprietary Lease, the Stock Power, Recognition Agreement and the Assignment
              of
              Proprietary Lease had legal capacity to enter into the Mortgage Loan
              and to
              execute and deliver such documents, and such documents have been duly
              and
              properly executed by such parties;

            

            (h) No
              Fraud.

            

            No
              error,
              omission, misrepresentation, negligence, fraud or similar occurrence
              with
              respect to a Mortgage Loan has taken place on the part of the Company,
              or the
              Mortgagor, or to the best of the Company’s knowledge, any appraiser, any
              builder, or any developer, or any other party involved in the origination
              of the
              Mortgage Loan or in the application of any insurance in relation to
              such
              Mortgage Loan;

            

            
              	 	
                      (i)

                    	
                      Compliance
                        with Applicable Laws.

                    

            

            

            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 and privacy, equal credit opportunity, disclosure
              or predatory
              and abusive lending laws applicable to the Mortgage Loan have been
              complied
              with. 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. Each Mortgage File contains
              evidence
              of such compliance as required by applicable law or regulation;

            

            
              	 	
                      (j)

                    	
                      Location
                        and Type of Mortgaged Property.

                    

            

            

            The
              Mortgaged Property is located in the state identified in the Mortgage
              Loan
              Schedule and consists of a contiguous parcel of real property with
              a detached
              single family residence erected thereon, 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 townhouse, provided, however, that
              any
              condominium project or planned unit development shall conform with
              the
              applicable Fannie Mae or Freddie Mac requirements, or the Underwriting
              Guidelines, regarding such dwellings, and no residence or dwelling
              is a mobile
              home, log home, manufactured dwelling or Cooperative Loan. As of the
              respective
              appraisal date for each Mortgaged Property, any Mortgaged Property
              being used
              for commercial purposes conforms to the Underwriting Guidelines and,
              to the best
              of the Company’s knowledge, since the date of such appraisal, no portion of the
              Mortgaged Property has been used for commercial purposes outside of
              the
              Underwriting Guidelines;

            

            (k) Valid
              First Lien.

            

            Each
              First Lien Mortgage Loan is a valid, subsisting and enforceable first
              lien on
              the Mortgaged Property, including all buildings on the Mortgaged Property
              and
              all installations and mechanical, electrical, plumbing, heating and
              air
              conditioning systems located in or annexed to such buildings, and all
              additions,
              alterations and replacements made at any time with respect to the foregoing.
              The
              lien of the Mortgage is subject only to:

            

            
              	 	
                      (1)

                    	
                      the
                        lien of current real property taxes and assessments not yet
                        due and
                        payable;

                    

            

            

            
              	 	
                      (2)

                    	
                      covenants,
                        conditions and restrictions, rights of way, easements and
                        other matters of
                        the public record as of the date of recording acceptable
                        to mortgage
                        lending institutions generally and specifically referred
                        to in the
                        lender's title insurance policy delivered to the originator
                        of the
                        Mortgage Loan and (i) referred to or otherwise considered
                        in the appraisal
                        made for the originator of the Mortgage Loan and (ii) which
                        do not
                        adversely affect the Appraised Value of the Mortgaged Property
                        set forth
                        in such appraisal; and

                    

            

            

            
              	 	
                      (3)

                    	
                      other
                        matters to which like properties are commonly subject which
                        do not
                        individually or in the aggregate, materially interfere with
                        the benefits
                        of the security intended to be provided by 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 each First Lien Mortgage Loan establishes
              and
              creates a valid, subsisting and enforceable first lien and first priority
              security interest on the property described therein and the Company
              has full
              right to sell and assign the same to the Purchaser; 

            

            With
              respect to each Cooperative Loan, each Pledge Agreement creates a valid,
              enforceable and subsisting first security interest in the Cooperative
              Shares and
              Proprietary Lease, subject only to (i) the lien of the related 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 (ii) 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 Pledge Agreement;
              provided, however, that the appurtenant Proprietary Lease may be subordinated
              or
              otherwise subject to the lien of any mortgage on the Project; 

            

            (l) Full
              Disbursement of Proceeds.

            

            The
              proceeds of the Mortgage Loan have been fully disbursed, except for
              escrows
              established or created due to seasonal weather conditions, and there
              is no
              requirement for future advances thereunder. All costs, fees and expenses
              incurred in making or closing the Mortgage Loan and the recording of
              the
              Mortgage were paid, and the Mortgagor is not entitled to any refund
              of any
              amounts paid or due under the Mortgage Note or Mortgage;

            

            
              	 	
                      (m)

                    	
                      Consolidation
                        of Future Advances.

                    

            

            

            Any
              future advances made 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 first
              lien priority
              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 or Freddie Mac; the consolidated principal amount does not
              exceed the
              original principal amount of the Mortgage Loan; the Company shall not
              make
              future advances after the Cut-off Date;

            

            (n) Ownership.

            

            The
              Company is the sole owner of record and holder of the Mortgage Loan
              and the
              related Mortgage Note and the Mortgage are not assigned or pledged,
              and the
              Company has good and marketable title thereto and has full right and
              authority
              to transfer and sell the Mortgage Loan to the Purchaser. The Company
              is
              transferring the Mortgage Loan free and clear of any and all encumbrances,
              liens, pledges, equities, participation interests, claims, charges
              or security
              interests of any nature encumbering such Mortgage Loan;

            

            (o) Origination/Doing
              Business.

            

            The
              Mortgage Loan was originated by a savings and loan association, a savings
              bank,
              a commercial bank, a credit union, an insurance company, or similar
              institution
              which is supervised and examined by a federal or state authority or
              by a
              mortgagee approved by the Secretary of Housing and Urban Development
              pursuant to
              Sections 203 and 211 of the National Housing Act. All parties which
              have had any
              interest in the Mortgage Loan, whether as mortgagee, assignee, pledgee
              or
              otherwise, 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 laws of the state wherein the Mortgaged Property
              is located,
              and (2) organized under the laws of such state, or (3) qualified to
              do business
              in such state, or (4) federal savings and loan associations or national
              banks
              having principal offices in such state, or (5) not doing business in
              such
              state;

            

            (p) LTV,
              PMI Policy.

            

            No
              Mortgage Loan has an LTV or CLTV greater than 100%. If the LTV of the
              Mortgage
              Loan was greater than 80% at the time of origination, a portion of
              the unpaid
              principal balance of the Mortgage Loan is and will be insured as to
              payment
              defaults by a PMI Policy. If the Mortgage Loan is insured by a PMI
              Policy for
              which the Mortgagor pays all premiums, the coverage will remain in
              place until
              (i) the LTV decreases to 78% or (ii) the PMI Policy is otherwise terminated
              pursuant to the Homeowners Protection Act of 1998, 12 USC §4901, et seq. All
              provisions of such PMI Policy have been and are being complied with,
              such policy
              is in full force and effect, and all premiums due thereunder have been
              paid. The
              Qualified Insurer has a claims paying ability acceptable to Fannie
              Mae or
              Freddie Mac. Any Mortgage Loan subject to a PMI Policy obligates the
              Mortgagor
              thereunder to maintain the PMI Policy and to pay all premiums and charges
              in
              connection therewith. The Mortgage Interest Rate for the Mortgage Loan
              as set
              forth on the Mortgage Loan Schedule is net of any such insurance
              premium;

            

            (q) Title
              Insurance.

            

            The
              Mortgage Loan is covered by an ALTA lender's title insurance policy
              (or in the
              case of any Mortgage Loan secured by a Mortgaged Property located in
              a
              jurisdiction where such policies are generally not available, an opinion
              of
              counsel of the type customarily rendered in such jurisdiction in lieu
              of title
              insurance) or other generally acceptable form of policy of 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 the Company, its successors
              and assigns,
              as to the first priority lien (or second priority if such Mortgage
              Loan is a
              Second Lien Mortgage Loan) of the Mortgage in the original principal
              amount of
              the Mortgage Loan, subject only to the exceptions contained in clauses
              (1), (2)
              and (3) of Paragraph (k) of this Section 3.02 and against any loss
              by reason of
              the invalidity or unenforceability of the lien resulting from the provisions
              of
              the Mortgage providing for adjustment to the Mortgage Interest Rate
              and Monthly
              Payment. Additionally, such lender’s title insurance policy includes no
              exceptions regarding ingress, egress or encroachments that impact the
              value or
              the marketability of the Mortgaged Property. The Company is the sole
              insured of
              such lender's title insurance policy, and such lender's title insurance
              policy
              is in full force and effect and will be in force and effect upon the
              consummation of the transactions contemplated by this Agreement. No
              claims have
              been made under such lender's title insurance policy, and no prior
              holder of the
              Mortgage, including the Company, has done, by act or omission, anything
              which
              would impair the coverage of such lender's title insurance policy;

            

            (r) No
              Defaults.

            

            There
              is
              no default, breach, violation 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
              default, breach, violation or event of acceleration, and neither the
              Company nor
              its predecessors have waived any default, breach, violation or event
              of
              acceleration; 

            

            (s) No
              Mechanics' Liens.

            

            There
              are
              no mechanics' or similar liens or claims which have been filed for
              work, labor
              or material (and no rights are outstanding that under the law could
              give rise to
              such liens) affecting the related Mortgaged Property which are or may
              be liens
              prior to, or equal or coordinate with, the lien of the related Mortgage
              which
              are not insured against by the title insurance policy referenced in
              Paragraph
              (q) above;

            

            (t) Location
              of Improvements; No Encroachments.

            

            Except
              as
              insured against by the title insurance policy referenced in Paragraph
              (q) above,
              all improvements which were considered in determining the Appraised
              Value of the
              Mortgaged Property lay wholly within the boundaries and building restriction
              lines of the Mortgaged Property and no improvements on adjoining properties
              encroach upon the Mortgaged Property. No improvement located on or
              being part of
              the Mortgaged Property is in violation of any applicable zoning law
              or
              regulation;

            

            
              	 	
                      (u)

                    	
                      Payment
                        Terms.

                    

            

            

            Principal
              payments commenced no more than sixty (60) days after the funds were
              disbursed
              to the Mortgagor in connection with the Mortgage Loan. The Mortgage
              Loans have
              an original term to maturity of not more than thirty (30) years, with
              interest
              payable in arrears each month. With respect to each Balloon Loan, the
              Mortgage
              Loan is payable in equal monthly installments of principal and interest
              based on
              a fifteen (15) or thirty (30) year amortization schedule, as set forth
              in the
              related Mortgage Note, and a final lump sum payment substantially greater
              than
              the preceding Monthly Payment is required which is sufficient to amortize
              the
              remaining principal balance of the Balloon Loan. No Balloon Loan has
              an original
              stated maturity of less than seven (7) years. As to each Adjustable
              Rate
              Mortgage Loan on each applicable Adjustment Date, the Mortgage Interest
              Rate
              will be adjusted to equal the sum of the Index plus the applicable
              Gross Margin,
              rounded up or down to the nearest multiple of 0.125% indicated by the
              Mortgage
              Note; provided that the Mortgage Interest Rate will not increase or
              decrease by
              more than the Periodic Interest Rate Cap on any Adjustment Date, and
              will in no
              event exceed the maximum Mortgage Interest Rate or be lower than the
              minimum
              Mortgage Interest Rate listed on the Mortgage Note for such Mortgage
              Loan. Each
              Mortgage Note requires a monthly payment which is sufficient, during
              the period
              prior to the first adjustment to the Mortgage Interest Rate, to fully
              amortize
              the outstanding principal balance as of the first day of such period
              over the
              then remaining term of such Mortgage Note and to pay interest at the
              related
              Mortgage Interest Rate. As to each Adjustable Rate Mortgage Loan, if
              the related
              Mortgage Interest Rate changes on an Adjustment Date, the then outstanding
              principal balance will be reamortized over the remaining life of such
              Mortgage
              Loan. No Mortgage Loan contains terms or provisions which would result
              in
              negative amortization; 

            

            (v) Customary
              Provisions.

            

            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, (i) in the case of a Mortgage designated
              as a deed
              of trust, by trustee's sale, and (ii) otherwise by judicial foreclosure.
              There
              is no homestead or other exemption available to a Mortgagor which would
              interfere with the right to sell the Mortgaged Property at a trustee's
              sale or
              the right to foreclose the Mortgage;

            

            (w) Occupancy
              of the Mortgaged Property.

            

            As
              of the
              date of origination, the Mortgaged Property was lawfully occupied under
              applicable law and to the best of the Company's knowledge, the Mortgaged
              Property is lawfully occupied as of the Closing Date;

            

            (x) No
              Additional Collateral.

            

            The
              Mortgage Note is not and has not been secured by any collateral, pledged
              account
              or other security except the lien of the corresponding Mortgage and
              the security
              interest of any applicable security agreement or chattel mortgage referred
              to in
              Paragraph (k) above;

            

            (y) Deeds
              of Trust.

            

            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 Mortgagee to the trustee under the deed of trust, except
              in
              connection with a trustee's sale after default by the Mortgagor;

            

            (z) Acceptable
              Investment.

            

            The
              Company has no knowledge of any circumstances or conditions with respect
              to the
              Mortgage Loan, the Mortgaged Property, the Mortgagor or the Mortgagor's
              credit
              standing that can reasonably be expected to cause private institutional
              investors to regard the Mortgage Loan as an unacceptable investment,
              cause the
              Mortgage Loan to become delinquent, or adversely affect the value or
              marketability of the Mortgage Loan;

            

            (aa) Transfer
              of Mortgage Loans.

            

            If
              the
              Mortgage Loan is not a MERS Mortgage Loan, the Assignment of Mortgage
              upon the
              insertion of the name of the assignee and recording information is
              in recordable
              form and is acceptable for recording under the laws of the jurisdiction
              in which
              the Mortgaged Property is located;

            

            (bb) Mortgaged
              Property Undamaged.

            

            The
              Mortgaged Property is undamaged by waste, fire, earthquake or earth
              movement,
              windstorm, flood, tornado or other casualty so as to affect adversely
              the value
              of the Mortgaged Property as security for the Mortgage Loan or the
              use for which
              the premises were intended;

            

            (cc) Servicing
              Practices; Escrow Deposits.

            

            The
              origination, servicing and collection practices used with respect to
              the
              Mortgage Loan have been in accordance with Accepted Servicing Practices,
              and
              have been in all material respects legal, proper and in accordance
              with the
              terms of the Mortgage Note. With respect to escrow deposits and Escrow
              Payments,
              all such payments are in the possession of the Company 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 in
              full compliance with state and federal law. No escrow deposits or Escrow
              Payments or other charges or payments due the Company have been capitalized
              under the Mortgage Note;

            

            (dd) No
              Condemnation.

            

            There
              is
              no proceeding pending or to the best of the Company’s knowledge threatened for
              the total or partial condemnation of the related Mortgaged
              Property;

            

            (ee) The
              Appraisal.

            

            The
              Mortgage File contains an appraisal of the related Mortgaged Property
              which
              generally conforms to the requirements of Fannie Mae and Freddie Mac
              which was
              conducted by an appraiser 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 the appraisal and the appraiser both satisfy the applicable
              requirements of Title XI of the Financial Institution Reform, Recovery,
              and
              Enforcement Act of 1989 and the regulations promulgated thereunder,
              all as in
              effect on the date the Mortgage Loan was originated;

            

            (ff) Insurance.

            

            The
              Mortgaged Property securing each Mortgage Loan is insured by an insurer
              acceptable to Fannie Mae or Freddie Mac against loss by fire and such
              hazards as
              are covered under a standard extended coverage endorsement and such
              other
              hazards as are customary in the area where the Mortgaged Property is
              located
              pursuant to insurance policies conforming to the requirements of Section
              4.10,
              in an amount which is at least equal to the lesser of (a) 100% of the
              insurable
              value, on a replacement cost basis, of the improvements on the related
              Mortgaged
              Property, or (b) the greater of (1) the outstanding principal balance
              of the
              Mortgage Loan and (2) an amount such that the proceeds of such insurance
              shall
              be sufficient to avoid the application to the Mortgagor or loss payee
              of any
              co-insurance clause under the policy. If the Mortgaged Property is
              a condominium
              unit, it is included under the coverage afforded by a blanket policy
              for the
              project. If the improvements on the Mortgaged Property are in an area
              identified
              in the Federal Register by the Federal Emergency Management Agency
              as having
              special flood hazards, a flood insurance policy meeting the requirements
              of the
              current guidelines of the Federal Insurance Administration is in effect
              with a
              generally acceptable insurance carrier, in an amount representing coverage
              not
              less than the least of (A) the outstanding principal balance of the
              Mortgage Loan, (B) the full insurable value and (C) the maximum amount
              of insurance which was available under the Flood Disaster Protection
              Act of
              1973, as amended. All individual insurance policies contain a standard
              mortgagee
              clause naming the Company and its successors and assigns as mortgagee,
              and all
              premiums thereon have been paid. The Mortgage obligates the Mortgagor
              thereunder
              to maintain a hazard insurance policy at the Mortgagor's cost and expense,
              and
              on the Mortgagor's failure to do so, authorizes the holder of the Mortgage
              to
              obtain and maintain such insurance at such Mortgagor's cost and expense,
              and to
              seek reimbursement therefor from the Mortgagor. The hazard insurance
              policy is
              the valid and binding obligation of the insurer, is in full force and
              effect,
              and will be in full force and effect and inure to the benefit of the
              Purchaser
              upon the consummation of the transactions contemplated by this Agreement.
              The
              Company has not acted or failed to act so as to impair the coverage
              of any such
              insurance policy or the validity, binding effect and enforceability
              thereof;

            

            
              	 	
                      (gg)

                    	
                      Servicemembers
                        Civil Relief Act.

                    

            

            

            The
              Mortgagor has not notified the Company, and the Company has no knowledge
              of any
              relief requested or allowed to the Mortgagor under the Servicemembers
              Civil
              Relief Act, as amended;

            

            
              	 	
                      (hh)

                    	
                      No
                        Graduated Payments or Contingent Interests.

                    

            

            

            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;

            

            
              	 	
                      (ii)

                    	
                      No
                        Construction Loans.

                    

            

            

            No
              Mortgage Loan was made in connection with (i) the construction or rehabilitation
              of a Mortgage Property or (ii) facilitating the trade-in or exchange
              of a
              Mortgaged Property other than a construction-to-permanent loan which
              has
              converted to a permanent Mortgage Loan;

            

            
              	 	
                      (jj)

                    	
                      Underwriting.

                    

            

            

            Each
              Mortgage Loan was underwritten in accordance with the Underwriting
              Guidelines;
              and the Mortgage Note and Mortgage are on forms acceptable to Freddie
              Mac or
              Fannie Mae;

            

            
              	 	
                      (kk)

                    	
                      Buydown
                        Mortgage Loans.

                    

            

            

            No
              Mortgage Loan is a Buydown Mortgage Loan;

            

            
              	 	
                      (ll)

                    	
                      Delivery
                        of Mortgage Files.

                    

            

            

            The
              Mortgage Loan Documents for the Mortgage Loans have been or will be
              delivered to
              the Custodian. The Company is in possession of a complete Mortgage
              File in
              compliance with Exhibit C, except for such documents the originals
              of which have
              been delivered to the Custodian;

            

            
              	 	
                      (mm)

                    	
                      No
                        Violation of Environmental Laws.

                    

            

            

            There
              is
              no pending action or proceeding directly involving any Mortgaged Property
              of
              which the Company is aware in which compliance with any environmental
              law, rule
              or regulation is an issue; and to the best of the Company’s knowledge, nothing
              further remains to be done to satisfy in full all requirements of each
              such law,
              rule or regulation constituting a prerequisite to use and enjoyment
              of said
              property;

            

            
              	 	
                      (nn)

                    	
                      No
                        Bankruptcy.

                    

            

            

            No
              Mortgagor was a debtor in any state or federal bankruptcy or insolvency
              proceeding at the time the Mortgage Loan was originated and as of the
              Closing
              Date, the Company has not received notice that any Mortgagor is a debtor
              in
              state or federal bankruptcy or insolvency proceeding; 

            

            
              	 	
                      (oo)

                    	
                      The
                        Mortgagor.

                    

            

            

            The
              Mortgagor is one or more natural persons and/or trustees for an Illinois
              land
              trust or a trustee under a “living trust” and such “living trust” is in
              compliance with Fannie Mae. In the event the Mortgagor is a trustee,
              the
              borrower is a natural person; 

            

            
              	(pp)  	
                      Leasehold
                        Estates.

                    

            

            

            With
              respect to Mortgage Loans that are secured by a leasehold estate, the
              lease is
              valid, in full force and effect and conforms to the Underwriting
              Guidelines;

            

            
              	(qq)  	
                      Cooperative
                        Loans.

                    

            

            

            No
              Mortgage Loan is a Cooperative Loan;

            

            
              	(rr)  	
                      MERS
                        Mortgage Loans.

                    

            

            

            With
              respect to each MERS Mortgage Loan, a MIN has been assigned to the
              Mortgage
              Loan, the MIN appears on the Mortgage or related Assignment of Mortgage
              to MERS,
              the Mortgage or the related Assignment of Mortgage to MERS has been
              duly and
              properly recorded on MERS, and the transfer to the Purchaser has been
              properly
              reflected in the MERS System pursuant to the Purchaser’s registration
              instructions.

            

            
              	(ss)  	
                      Texas
                        Refinance Mortgage Loans.

                    

            

             

            Each
              Mortgage Loan originated in the state of Texas pursuant to Article
              XVI, Section
              50(a)(6) of the Texas Constitution (a “Texas Refinance Loan”) has been
              originated in compliance with the provisions of Article XVI, Section
              50(a)(6) of
              the Texas Constitution, Texas Civil Statutes and the Texas Finance
              Code;

             

            
              	(tt)  	
                      Homeownership
                        and Equity Protection Act.

                    

            

            

            No
              Mortgage Loan is a Covered Loan or a High Cost Loan;

             

            (uu) Prepayment
              Penalties.

             

            With
              respect to Mortgage Loans with Prepayment Penalties: (i) all information
              on the
              related Mortgage Loan Schedule, Data File and Underwriting Guidelines
              regarding
              Prepayment Penalties is complete and accurate in all material respects
              (ii)
              except for balloon mortgage loans originated in certain states specified
              in the
              Underwriting Guidelines with restrictions on collection of Prepayment
              Penalties,
              each prepayment Penalty is permissible and enforceable in accordance
              with the
              terms under applicable law, (iii) prior to the Mortgage Loan’s origination, the
              Mortgagor agreed to such Prepayment Penalty in exchange for a monetary
              benefit,
              including but not limited to a rate or fee reduction, (iv) prior to
              the Mortgage
              Loan’s origination, the Mortgagor was offered the option of obtaining a
              mortgage
              loan that did not require payment of such a Prepayment Penalty, (v)
              the
              Prepayment Penalty is disclosed to the Mortgagor in the Mortgage Loan
              documents
              pursuant to applicable state and federal law (vi) for Mortgage Loans
              originated
              on or after October 1, 2002, the duration of the prepayment penalty
              period shall
              not exceed three (3) years from the date of the Mortgage Note, unless
              the
              Mortgage Loan was modified to reduce the prepayment period to no more
              than three
              (3) years from the date of the Mortgage Note and the Mortgagor was
              notified in
              writing of such reduction in prepayment period, and (vii) notwithstanding
              any
              state or federal law to the contrary, the Company shall not impose
              such
              Prepayment Penalty in any instance when the Mortgage debt is accelerated
              as the
              result of the Mortgagor’s default in making the Mortgage Loan payments.
              Prepayment Penalties on the Mortgage Loans are applicable to prepayments
              resulting from both refinancings and sales of the related Mortgaged
              Properties
              and the terms of such Prepayment Penalties do not provide for a waiver
              or
              release (i.e., “holidays”) during the term of the Prepayment Penalty.
              ;

             

            

            
              	 	
                      (vv)

                    	
                      Simple
                        Interest Loans.

                    

            

            

            No
              Mortgage Loan is a simple interest Mortgage Loan; 

            

            
              	 	
                      (ww)

                    	
                      Calculation
                        of Interest.

                    

            

            

            Interest
              on each Mortgage Loan is calculated on the basis of a 360-day year
              consisting of
              twelve 30-day months;

            

            
              	 	
                      (xx)

                    	
                      Anti
                        Money Laundering Laws.
                        

                    

            

            

            The
              Company has complied with all applicable anti money laundering laws
              and
              regulations, (collectively, the “Anti Money Laundering Laws”); and the Company
              has established an anti money laundering compliance program as required
              by the
              Anti Money Laundering Laws, has conducted the requisite due diligence
              in
              connection with the origination of each Mortgage Loan for purposes
              of the Anti
              Money Laundering Laws;

            

            
              	 	
                      (yy)

                    	
                      Due
                        on Sale.
                        

                    

            

            

            The
              Mortgage contains an enforceable provision,
              to the
              extent allowable under applicable laws governing the application of
              due-on-sale
              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;

            

            
              	 	
                      (zz)

                    	
                      Tax
                        Service Contract; Flood Certification Contract. 

                    

            

            

            Each
              Mortgage Loan shall have a tax service contract and, if applicable,
              a flood
              insurance contract which shall have a term of the life of the Mortgage
              Loan.
              Each such tax service and flood insurance contract shall be fully transferable
              without penalty, premium or cost to the Purchaser or its designee unless,
              with
              respect to tax service contracts, the Company is terminated pursuant
              to Section
              11.02 hereof; 

            

            
              	 	
                      (aaa)

                    	
                      Credit
                        Reporting.
                        

                    

            

            

            The
              Company, in its capacity as servicer for each Mortgage Loan, has fully
              furnished
              in accordance with the Fair Credit Reporting Act and its implementing
              regulations, accurate and complete information on its Mortgagors credit
              files to
              Equifax, Experian and Trans Union Credit Information Company on a monthly
              basis;

            

            
              	 	
                      (bbb)

                    	
                      Single
                        Premium Credit Life Insurance.
                        

                    

            

             

            No
              mortgagor was required to purchase any single-premium credit insurance
              policy
              (e.g., life, disability, accident, unemployment, 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 insurance policy
              (e.g.,
              life, mortgage, disability, accident, unemployment, or health insurance
              product)
              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; 

            

            (ccc) Arbitration.

            

            No
              Mortgagor agreed to submit to arbitration to resolve any dispute arising
              out of
              or relating in any way to the Mortgage Loan transaction; and

            

            (ddd) Valid
              Second Lien.

            

            With
              respect to any Second Lien Mortgage Loan, such Mortgage is a valid,
              subsisting
              and enforceable second lien on the Mortgaged Property, including all
              buildings
              on the Mortgaged Property and all installations and mechanical, electrical,
              plumbing, heating and air conditioning systems located in or annexed
              to such
              buildings, and all additions, alterations and replacements made at
              any time with
              respect to the foregoing. The lien of such Mortgage is subject only
              to:

            

            
              	 	
                      (i)

                    	
                      the
                        lien of current real property taxes and assessments not yet
                        due and
                        payable;

                    

            

            

            
              	(ii)  	
                      superior
                        position mortgage lien(s) acceptable in accordance with the
                        Underwriting
                        Guidelines;

                    

            

            

            
              	 	
                      (iii)

                    	
                      covenants,
                        conditions and restrictions, rights of way, easements and
                        other matters of
                        the public record as of the date of recording acceptable
                        to mortgage
                        lending institutions in accordance with Accepted Servicing
                        Practices and
                        (i) referred to or otherwise considered in the appraisal
                        and (ii) which do
                        not adversely affect the Appraised Value;
                        and

                    

            

            

            
              	 	
                      (iv)

                    	
                      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 such Mortgage Loan establishes and creates
              a valid,
              subsisting, and enforceable second lien and second lien security interest
              on the
              property described therein and the Company has full right to sell and
              assign the
              same to the Purchaser. With respect to each Second Lien Mortgage Loan:
              (a) the
              first lien is in full force and effect, (b) there is no default, breach,
              violation or event of acceleration existing under such first lien mortgage
              or
              the related mortgage note, (c) if the related first lien mortgage loan
              provides
              for negative amortization, the LTV was calculated at the maximum principal
              balance of such first lien that could result upon application of such
              negative
              amortization feature, (d) either no consent for the Second Lien Mortgage
              Loan is
              required by the holder of the first lien or such consent has been obtained
              and
              is contained in the Mortgage File and (e) to the best of Company’s knowledge, 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 or
              acceleration under the related first lien mortgage loan. 

            

            (eee) Georgia
              Properties.

             

            No
              Mortgage Loan on
              or
              after March 7, 2003 is a “High-Cost Home Loan” as defined in the Georgia Fair
              Lending Act, as amended (the “Georgia Act”). No Mortgage Loan was originated on
              or after October 1, 2002 and before March 7, 2003, which is secured
              by property
              located in the State of Georgia;

             

            
              	 	
                      (fff)

                    	
                      Higher
                        Cost Products.

                    

            

            

            No
              Mortgagor was encouraged or required to select a Mortgage Loan product
              offered
              by the Mortgage Loan’s originator which is a higher cost product designed for
              less creditworthy borrowers, unless at the time of the Mortgage Loan’s
              origination, such Mortgagor did not qualify taking into account credit
              history
              and debt to income ratios for a lower cost credit product then offered
              by the
              Mortgage Loan’s originator or any affiliate of the Mortgage Loan’s originator.
              If, at the time of loan application, the Mortgagor may have qualified
              for a
              lower cost credit product then offered by any mortgage lending affiliate
              of the
              Mortgage Loan’s originator, the Mortgage Loan’s originator referred the
              Mortgagor’s application to such affiliate for underwriting
              consideration;

            

            
              	 	
                      (ggg)

                    	
                      Methodology.

                    

            

            

            The
              methodology used in underwriting the extension of credit for each Mortgage
              Loan
              employs objective mathematical principles which relate the Mortgagor’s income,
              assets and liabilities to the proposed payment and such underwriting
              methodology
              does not rely on the extent of the Mortgagor’s equity in the collateral as the
              principal determining factor in approving such credit extension. Such
              underwriting methodology confirmed that at the time of origination
              (application/approval) the Mortgagor had a reasonable ability to make
              timely
              payments on the Mortgage Loan; and

            

            
              	 	
                      (hhh)

                    	
                      Points
                        and Fees.

                    

            

            

            All
              points and fees related to each Mortgage Loan were disclosed in writing
              to the
              borrower in accordance with applicable state and federal law and
              regulation.

            

            Section
              3.03 Repurchase.

            

            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
              to the
              Purchaser and the delivery of the Mortgage Loan Documents to the Custodian
              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 failure to examine any Mortgage File. Upon discovery
              by either
              the Company 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 (or which materially and adversely
              affects the interests of Purchaser in the related Mortgage Loan in
              the case of a
              representation and warranty relating to a particular Mortgage Loan),
              the party
              discovering such breach shall give prompt written notice to the
              other.

            

            Within
              sixty (60) days of the earlier of either discovery by or notice to
              the Company
              of any breach of a representation or warranty which materially and
              adversely
              affects the value of the Mortgage Loans, the Company shall use its
              best efforts
              promptly to cure such breach in all material respects and, if such
              breach cannot
              be cured, the Company shall, at the Purchaser's option, repurchase
              such Mortgage
              Loan at the Repurchase Price. In the event that a breach shall involve
              any
              representation or warranty set forth in Section 3.01, and such breach
              cannot be
              cured within sixty (60) days of the earlier of either discovery by
              or notice to
              the Company of such breach, all of the Mortgage Loans shall, at the
              Purchaser's
              option, be repurchased by the Company at the Repurchase Price. 

            

            Notwithstanding
              the above paragraphs, within sixty (60) days of the earlier of either
              discovery
              by, or notice to, the Company of any breach of the representations
              or warranties
              set forth in clauses (tt), (uu), (aaa), (bbb) or (ccc) of Section 3.02,
              the
              Company shall repurchase such Mortgage Loan at the Repurchase Price.
              However, if
              the breach shall involve a representation or warranty set forth in
              Section 3.02
              and the Company discovers or receives notice of any such breach within
              one
              hundred twenty (120) days of the Closing Date, the Company shall, if
              the breach
              cannot be cured, at the Purchaser's option and provided that the Company
              has a
              Qualified Substitute Mortgage Loan, rather than repurchase the Mortgage
              Loan as
              provided above, remove such Mortgage Loan (a "Deleted Mortgage Loan")
              and
              substitute in its place a Qualified Substitute Mortgage Loan or Loans,
              provided
              that any such substitution shall be effected not later than 120 days
              after the
              Closing Date. If the Company has no Qualified Substitute Mortgage Loan,
              it shall
              repurchase the deficient Mortgage Loan within ninety (90) days of the
              written
              notice of the breach or the failure to cure, whichever is later. Any
              repurchase
              of a Mortgage Loan or Loans pursuant to the foregoing provisions of
              this Section
              3.03 shall be accomplished by deposit in the Custodial Account of the
              amount of
              the Repurchase Price for distribution to Purchaser on the Remittance
              Date
              immediately following the Principal Prepayment Period in which such
              Repurchase
              Price is received, after deducting therefrom any amount received in
              respect of
              such repurchased Mortgage Loan or Loans and being held in the Custodial
              Account
              for future distribution.

            

            At
              the
              time of repurchase, the Purchaser and the Company shall arrange for
              the
              reassignment of the repurchased Mortgage Loan to the Company and the
              delivery to
              the Company of any documents held by the Custodian relating to the
              repurchased
              Mortgage Loan. If
              the
              Company repurchases a Mortgage Loan that is a MERS Mortgage Loan, the
              Company
              shall cause MERS to designate on the MERS® System to remove the Purchaser as the
              beneficial holder with respect to such Mortgage Loan. In
              the
              event of a repurchase or substitution, the Company shall, simultaneously
              with
              such reassignment, give written notice to the Purchaser that such repurchase
              or
              substitution has taken place, amend the Mortgage Loan Schedule to reflect
              the
              withdrawal of the Deleted Mortgage Loan from this Agreement, and, in
              the case of
              substitution, identify a Qualified Substitute Mortgage Loan and amend
              the
              Mortgage Loan Schedule to reflect the addition of such Qualified Substitute
              Mortgage Loan to this Agreement. In connection with any such substitution,
              the
              Company shall be deemed to have made as to such Qualified Substitute
              Mortgage
              Loan the representations and warranties set forth in this Agreement
              except that
              all such representations and warranties set forth in this Agreement
              shall be
              deemed made as of the date of such substitution. The Company shall
              effect such
              substitution by delivering to the Custodian for such Qualified Substitute
              Mortgage Loan the documents required by Section 2.03, with the Mortgage
              Note
              endorsed as required by Section 2.03. No substitution will be made
              in any
              calendar month after the Determination Date for such month. The Company
              shall
              deposit in the Custodial Account the Monthly Payment less the Servicing
              Fee due
              on such Qualified Substitute Mortgage Loan or Loans in the month following
              the
              date of such substitution. Monthly Payments due with respect to Qualified
              Substitute Mortgage Loans in the month of substitution shall be retained
              by the
              Company. With respect to any Deleted Mortgage Loan, distributions to
              Purchaser
              shall include the Monthly Payment due on any Deleted Mortgage Loan
              in the month
              of substitution, and the Company shall thereafter be entitled to retain
              all
              amounts subsequently received by the Company in respect of such Deleted
              Mortgage
              Loan.

            

            In
              addition to such repurchase obligation, the Company shall indemnify
              the
              Purchaser and hold it harmless against any losses, damages, penalties,
              fines,
              forfeitures, reasonable and necessary legal fees and related costs,
              judgments,
              and other costs and expenses resulting from any claim, demand, defense
              or
              assertion based on or grounded upon, or resulting from, a breach of
              the
              Company’s representations and warranties contained in this Agreement. It is
              understood and agreed that the obligations of the Company set forth
              in this
              Section 3.03 to cure or repurchase a defective Mortgage Loan and to
              indemnify
              the Purchaser as provided in this Section 3.03 constitute the sole
              remedies of
              the Purchaser respecting a breach of the foregoing representations
              and
              warranties.

            

            Any
              cause
              of action against the Company 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) discovery of such breach by the Purchaser
              or notice
              thereof by the Company to the Purchaser, (ii) failures by the Company
              to cure
              such breach or repurchase such Mortgage Loan as specified above, and
              (iii)
              demand upon the Company by the Purchaser for compliance with this
              Agreement.

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            ARTICLE
              IV

             

            ADMINISTRATION
              AND SERVICING OF MORTGAGE LOANS

            

            Section
              4.01 Company
              to Act as Servicer.

            

            The
              Company, as an independent contractor, shall service and administer
              the Mortgage
              Loans and shall have full power and authority, acting alone or through
              the
              utilization of a Subservicer or Subcontractor, to do any and all things
              in
              connection with such servicing and administration which the Company
              may deem
              necessary or desirable, consistent with the terms of this Agreement
              and with
              Accepted Servicing Practices. The Company shall be responsible for
              any and all
              acts of a Subservicer and a Subcontractor, and the Company’s utilization of a
              subservicer or a Subcontractor shall in no way relieve the liability
              of the
              Company under this Agreement.

            

            Consistent
              with the terms of this Agreement, the Company may waive, modify or
              vary any term
              of any Mortgage Loan or consent to the postponement of strict compliance
              with
              any such term or in any manner grant indulgence to any Mortgagor if
              in the
              Company's reasonable and prudent determination such waiver, modification,
              postponement or indulgence is not materially adverse to the Purchaser,
              provided,
              however, the Company shall not make any future advances with respect
              to a
              Mortgage Loan. The Company shall not permit any modification with respect
              to any
              Mortgage Loan that would change the Mortgage Interest Rate, defer or
              forgive the
              payment of principal (except for actual payments of principal) or change
              the
              final maturity date on such Mortgage Loan, unless the Mortgagor is
              in default
              with respect to the Mortgage Loan or such default is, in the judgment
              of the
              Company, imminent. In the event that no default exists or is imminent,
              the
              Company shall request written consent from the Purchaser to permit
              such a
              modification and the Purchaser shall provide written consent or notify
              the
              Company of its objection to such modification within three (3) Business
              Days of
              its receipt of the Company's request. In the event of any such modification
              which permits the deferral of interest or principal payments on any
              Mortgage
              Loan, the Company 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 5.03, the difference between (a) such month's
              principal
              and one month's interest at the Mortgage Loan Remittance Rate on the
              unpaid
              principal balance of such Mortgage Loan and (b) the amount paid by
              the
              Mortgagor. The Company shall be entitled to reimbursement for such
              advances to
              the same extent as for all other advances made pursuant to Section
              5.03. Without
              limiting the generality of the foregoing, the Company shall continue,
              and is
              hereby authorized and empowered, to execute and deliver on behalf of
              itself and
              the Purchaser, 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. If
              reasonably
              required by the Company, the Purchaser shall furnish the Company with
              any powers
              of attorney and other documents necessary or appropriate to enable
              the Company
              to carry out its servicing and administrative duties under this
              Agreement.

            

            In
              servicing and administering the Mortgage Loans, the Company shall employ
              procedures (including collection procedures) and exercise the same
              care that it
              customarily employs and exercises in servicing and administering mortgage
              loans
              for its own account, giving due consideration to Accepted Servicing
              Practices
              where such practices do not conflict with the requirements of this
              Agreement,
              and the Purchaser's reliance on the Company.

            

            The
              Company is authorized and empowered by the Purchaser, in its own name,
              when the
              Company 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
              Company shall cause to be maintained for each Cooperative Loan a copy
              of the
              financing statements and shall file and such financing statements and
              continuation statements as necessary, in accordance with the Uniform
              Commercial
              Code applicable in the jurisdiction in which the related Cooperative
              Apartment
              is located, to perfect and protect the security interest and lien of
              the
              Purchaser.

            

            Section
              4.02 Liquidation
              of Mortgage Loans.

            

            In
              the
              event that any payment due under any Mortgage Loan and not postponed
              pursuant to
              Section 4.01 is not paid when the same becomes due and payable, or
              in the event
              the Mortgagor fails to perform any other covenant or obligation under
              the
              Mortgage Loan and such failure continues beyond any applicable grace
              period, the
              Company shall take such action as (1) the Company would take under
              similar
              circumstances with respect to a similar mortgage loan held for its
              own account
              for investment, (2) shall be consistent with Accepted Servicing Practices,
              (3)
              the Company shall determine prudently to be in the best interest of
              Purchaser,
              and (4) is consistent with any related PMI Policy. In the event that
              any payment
              due under any Mortgage Loan is not postponed pursuant to Section 4.01
              and
              remains delinquent for a period of ninety (90) days or any other default
              continues for a period of ninety (90) days beyond the expiration of
              any grace or
              cure period, the Company shall commence foreclosure proceedings, the
              Company
              shall first notify the Purchaser in writing of the Company's intention
              to do so
              and shall provide such information regarding the Mortgage Loan as the
              Purchaser
              may reasonably request, provided that the Company shall not commence
              foreclosure
              proceedings if the Purchaser objects to such action within three (3)
              Business
              Days of receiving such notice. The Company shall follow any written
              directions
              of the Purchaser with respect to the servicing of such Mortgage Loan,
              as long as
              such directions do not violate applicable law. In the event the Purchaser
              objects to such foreclosure action, the Company shall not be required
              to make
              Monthly Advances with respect to such Mortgage Loan, pursuant to Section
              5.03,
              and the Company's obligation to make such Monthly Advances shall terminate
              on
              the 90th day referred to above. In such connection, the Company shall
              from its
              own funds make all necessary and proper Servicing Advances, provided,
              however,
              that the Company shall not be required to expend its own funds in connection
              with any foreclosure or towards the restoration or preservation of
              any Mortgaged
              Property, unless it shall determine (a) that such preservation, restoration
              and/or foreclosure will increase the proceeds of liquidation of the
              Mortgage
              Loan to Purchaser after reimbursement to itself for such expenses and
              (b) that
              such expenses will be recoverable by it either through Liquidation
              Proceeds
              (respecting which it shall have priority for purposes of withdrawals
              from the
              Custodial Account pursuant to Section 4.05) or through Insurance Proceeds
              (respecting which it shall have similar priority).

            

            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 Company
              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. The
              cost for
              such inspection or review shall be borne by the Purchaser. Upon completion
              of
              the inspection or review, the Company shall promptly provide the Purchaser
              with
              a written report of the environmental inspection.

            

            After
              reviewing the environmental inspection report, the Company shall proceed,
              in the
              best interest of the Purchaser, with respect to the Mortgaged Property.
              In the
              event (a) the environmental inspection report indicates that the Mortgaged
              Property is contaminated by hazardous or toxic substances or wastes
              and (b) the
              Company shall proceed with foreclosure or acceptance of a deed in lieu
              of
              foreclosure, the Company shall be reimbursed for all reasonable costs
              associated
              with such foreclosure or acceptance of a deed in lieu of foreclosure
              and any
              related environmental clean up costs, as applicable, from the related
              Liquidation Proceeds, or if the Liquidation Proceeds are insufficient
              to fully
              reimburse the Company, the Company shall be entitled to be reimbursed
              from
              amounts in the Custodial Account pursuant to Section 4.05 hereof. In
              the event
              the Company does not proceed with foreclosure or acceptance of a deed
              in lieu of
              foreclosure, the Company shall be reimbursed for all Servicing Advances
              made
              with respect to the related Mortgaged Property from the Custodial Account
              pursuant to Section 4.05 hereof.

            

            Section
              4.03 Collection
              of Mortgage Loan Payments.

            

            Continuously
              from the date hereof until the principal and interest on all Mortgage
              Loans are
              paid in full, the Company shall proceed diligently to collect all payments
              due
              under each of the Mortgage Loans when the same shall become due and
              payable and
              shall take special care in ascertaining and estimating Escrow Payments
              and all
              other charges that will become due and payable with respect to the
              Mortgage Loan
              and the Mortgaged Property, to the end that the installments payable
              by the
              Mortgagors will be sufficient to pay such charges as and when they
              become due
              and payable.

            

            Section
              4.04 Establishment
              of and Deposits to Custodial Account.

            

            The
              Company shall segregate and hold all funds collected and received pursuant
              to a
              Mortgage Loan separate and apart from any of its own funds and general
              assets
              and shall establish and maintain one or more Custodial Accounts, in
              the form of
              time deposit or demand accounts, titled "Wells Fargo Bank, N.A., in
              trust for
              the Purchaser and/or subsequent purchasers of Mortgage Loans - P & I." The
              Custodial Account shall be established with a Qualified Depository.
On
              the
              Closing Date,
              the
              Company shall provide the Purchaser with written confirmation of the
              existence
              of such Custodial Account in the form of Exhibit G.
              The
              Custodial Account shall at all times be insured to the fullest extent
              allowed by
              applicable law. Funds deposited in the Custodial Account may be drawn
              on by the
              Company in accordance with Section 4.05.

            

            The
              Company shall deposit in the Custodial Account within two (2) Business
              Days of
              Company’s receipt, and retain therein, the following collections received by
              the
              Company and payments made by the Company after the Cut-off Date, other
              than
              payments of principal and interest due on or before the Cut-off Date,
              or
              received by the Company prior to the Cut-off Date but allocable to
              a period
              subsequent thereto:

            

            
              	 	
                      (i)

                    	
                      all
                        payments on account of principal on the Mortgage Loans, including
                        all
                        Principal Prepayments (including Prepayment Penalties paid
                        by the
                        Mortgagor or other amounts paid by the Company pursuant to
                        Section 4.23 of
                        this Agreement);

                    

            

            

            
              	 	
                      (ii)

                    	
                      all
                        payments on account of interest on the Mortgage Loans adjusted
                        to the
                        Mortgage Loan Remittance Rate;

                    

            

            

            
              	 	
                      (iii)

                    	
                      all
                        Liquidation Proceeds;

                    

            

            

            
              	 	
                      (iv)

                    	
                      all
                        Insurance Proceeds including amounts required to be deposited
                        pursuant to
                        Section 4.10 (other than proceeds to be held in the Escrow
                        Account and
                        applied to the restoration or repair of the Mortgaged Property
                        or released
                        to the Mortgagor in accordance with Section 4.14), Section
                        4.11 and
                        Section 4.15;

                    

            

            

            
              	 	
                      (v)

                    	
                      all
                        Condemnation Proceeds which are not applied to the restoration
                        or repair
                        of the Mortgaged Property or released to the Mortgagor in
                        accordance with
                        Section 4.14;

                    

            

            

            
              	 	
                      (vi)

                    	
                      any
                        amount required to be deposited in the Custodial Account
                        pursuant to
                        Section 4.01, 5.03, 6.01 or 6.02;

                    

            

            

            
              	 	
                      (vii)

                    	
                      any
                        amounts payable in connection with the repurchase of any
                        Mortgage Loan
                        pursuant to Section 3.03 and all amounts required to be deposited
                        by the
                        Company in connection with a shortfall in principal amount
                        of any
                        Qualified Substitute Mortgage Loan pursuant to Section
                        3.03;

                    

            

            

            
              	 	
                      (viii)

                    	
                      with
                        respect to each Principal Prepayment, the Prepayment Interest
                        Shortfall
                        (to be paid by the Company out of its
                        funds);

                    

            

             

            
              	 	
                      (ix)

                    	
                      any
                        amounts required to be deposited by the Company pursuant
                        to Section 4.11
                        in connection with the deductible clause in any blanket hazard
                        insurance
                        policy; and

                    

            

            

            
              	 	
                      (x)

                    	
                      any
                        amounts received with respect to or related to any REO Property
                        and all
                        REO Disposition Proceeds pursuant to Section
                        4.16.

                    

            

            

            The
              foregoing requirements for deposit into 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 and
              assumption
              fees, to the extent permitted by Section 6.01, need not be deposited
              by the
              Company into the Custodial Account. Any interest paid on funds deposited
              in the
              Custodial Account by the depository institution shall accrue to the
              benefit of
              the Company and the Company shall be entitled to retain and withdraw
              such
              interest from the Custodial Account pursuant to Section 4.05.

            

            Section
              4.05 Permitted
              Withdrawals From Custodial Account.

            

            The
              Company shall, from time to time, withdraw funds 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 of the Company's funds made pursuant
              to
              Section 5.03, the Company's right to reimburse itself pursuant to this
              sub
              clause (ii) being limited to amounts received on the related Mortgage
              Loan which
              represent late payments of principal and/or interest respecting which
              any such
              advance was made, it being understood that, in the case of any such
              reimbursement, the Company's right thereto shall be prior to the rights
              of
              Purchaser, except that, where the Company is required to repurchase
              a Mortgage
              Loan pursuant to Section 3.03 or 6.02, the Company's right to such
              reimbursement
              shall be subsequent to the payment to the Purchaser of the Repurchase
              Price
              pursuant to such sections 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 for any unpaid
              Servicing Fees, the Company's right to reimburse itself pursuant to
              this sub
              clause (iii) with respect to any Mortgage Loan being limited to related
              Liquidation Proceeds, Condemnation Proceeds, Insurance Proceeds and
              such other
              amounts as may be collected by the Company from the Mortgagor or otherwise
              relating to the Mortgage Loan, it being understood that, in the case
              of any such
              reimbursement, the Company's right thereto shall be prior to the rights
              of
              Purchaser, except that where the Company is required to repurchase
              a Mortgage
              Loan pursuant to Section 3.03 or 6.02, in which case the Company's
              right to such
              reimbursement shall be subsequent to the payment to the Purchaser of
              the
              Repurchase Price pursuant to such sections and all other amounts required
              to be
              paid to the Purchaser with respect to such Mortgage Loan;

            

            (iv) to
              pay
              itself interest on funds deposited in the Custodial Account;

            

            (v) to
              reimburse itself for expenses incurred and reimbursable to it pursuant
              to
              Section 8.01;

            

            (vi) to
              pay
              any amount required to be paid pursuant to Section 4.16 related to
              any REO
              Property, it being understood that, in the case of any such expenditure
              or
              withdrawal related to a particular REO Property, the amount of such
              expenditure
              or withdrawal from the Custodial Account shall be limited to amounts
              on deposit
              in the Custodial Account with respect to the related REO Property;

            

            (vii) to
              reimburse itself for any Servicing Advances or REO expenses after liquidation
              of
              the Mortgaged Property not otherwise reimbursed above;

            

            (viii) to
              remove
              funds inadvertently placed in the Custodial Account by the Company;
              and

            

            (ix) to
              clear
              and terminate the Custodial Account upon the termination of this
              Agreement.

            

            In
              the
              event that the Custodial Account is interest bearing, on each Remittance
              Date,
              the Company shall withdraw all funds from the Custodial Account except
              for those
              amounts which, pursuant to Section 5.01, the Company is not obligated
              to remit
              on such Remittance Date. The Company may use such withdrawn funds only
              for the
              purposes described in this Section 4.05.

            

            Section
              4.06 Establishment
              of and Deposits to Escrow Account.

            

            The
              Company shall segregate and hold all funds collected and received pursuant
              to a
              Mortgage Loan constituting Escrow Payments separate and apart from
              any of its
              own funds and general assets and shall establish and maintain one or
              more Escrow
              Accounts, in the form of time deposit or demand accounts, titled, "Wells
              Fargo
              Bank, N.A., in trust for the Purchaser and/or subsequent purchasers
              of
              Residential Mortgage Loans, and various Mortgagors - T & I." The Escrow
              Accounts shall be established with a Qualified Depository, in a manner
              which
              shall provide maximum available insurance thereunder. On
              the
              Closing Date, the Company shall provide the Purchaser with written
              confirmation
              of the existence of such Escrow Account in the form of Exhibit H.
              Funds
              deposited in the Escrow Account may be drawn on by the Company in accordance
              with Section 4.07.

            

            The
              Company shall deposit in the Escrow Account or Accounts within two
              (2) Business
              Days of Company’s receipt, 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
                        amounts representing Insurance Proceeds or Condemnation Proceeds
                        which are
                        to be applied to the restoration or repair of any Mortgaged
                        Property;
                        

                    

            

            

            
              	 	
                      (iii)

                    	
                      all
                        payments on account of Buydown Funds;
                        and

                    

            

            

            
              	 	
                      (iv)

                    	
                      all
                        Servicing Advances for Mortgagors whose Escrow Payments are
                        sufficient to
                        cover escrow disbursements.

                    

            

            

            The
              Company shall make withdrawals from the Escrow Account only to effect
              such
              payments as are required under this Agreement, as set forth in Section
              4.07. The
              Company shall be entitled to retain any interest paid on funds deposited
              in the
              Escrow Account by the depository institution, other than interest on
              escrowed
              funds required by law to be paid to the Mortgagor. To the extent required
              by
              law, the Company shall pay interest on escrowed funds to the Mortgagor
              notwithstanding that the Escrow Account may be non-interest bearing
              or that
              interest paid thereon is insufficient for such purposes.

            

            Section
              4.07 Permitted
              Withdrawals From Escrow Account.

            

            Withdrawals
              from the Escrow Account or Accounts may be made by the Company
              only:

            

            
              	 	
                      (i)

                    	
                      to
                        effect timely payments of ground rents, taxes, assessments,
                        water rates,
                        mortgage insurance premiums, condominium charges, fire and
                        hazard
                        insurance premiums or other items constituting Escrow Payments
                        for the
                        related Mortgage;

                    

            

            

            
              	 	
                      (ii)

                    	
                      to
                        reimburse the Company for any Servicing Advances made by
                        the Company
                        pursuant to Section 4.08 with respect to a related Mortgage
                        Loan, but only
                        from amounts received on the related Mortgage Loan which
                        represent late
                        collections of Escrow Payments
                        thereunder;

                    

            

            

            
              	 	
                      (iii)

                    	
                      to
                        refund to any Mortgagor any funds found to be in excess of
                        the amounts
                        required under the terms of the related Mortgage
                        Loan;

                    

            

            

            
              	 	
                      (iv)

                    	
                      for
                        transfer to the Custodial Account and application to reduce
                        the principal
                        balance of the Mortgage Loan in accordance with the terms
                        of the related
                        Mortgage and Mortgage Note;

                    

            

            

            
              	 	
                      (v)

                    	
                      for
                        application to the restoration or repair of the Mortgaged
                        Property in
                        accordance with the procedures outlined in Section
                        4.14;

                    

            

            

            
              	 	
                      (vi)

                    	
                      to
                        pay to the Company, or any Mortgagor to the extent required
                        by law, any
                        interest paid on the funds deposited in the Escrow
                        Account;

                    

            

            

            
              	 	
                      (vii)

                    	
                      to
                        remove funds inadvertently placed in the Escrow Account by
                        the
                        Company;

                    

            

            

            
              	 	
                      (viii)

                    	
                      to
                        remit to Purchaser payments on account of Buydown Funds as
                        applicable;
                        and

                    

            

            

            
              	 	
                      (ix)

                    	
                      to
                        clear and terminate the Escrow Account on the termination
                        of this
                        Agreement.

                    

            

            

            Section
              4.08 Payment
              of Taxes, Insurance and Other Charges.

            

            With
              respect to each Mortgage Loan, the Company shall maintain accurate
              records
              reflecting the status of ground rents, taxes, assessments, water rates,
              sewer
              rents, and other charges which are or may become a lien upon the Mortgaged
              Property and the status of PMI Policy premiums 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, employing for such purpose
              deposits
              of the Mortgagor in the Escrow Account which shall have been estimated
              and
              accumulated by the Company in amounts sufficient for such purposes,
              as allowed
              under the terms of the Mortgage. The Company assumes full responsibility
              for the
              timely payment of all such bills and shall effect timely payment of
              all such
              charges irrespective of each Mortgagor's faithful performance in the
              payment of
              same or the making of the Escrow Payments, and the Company shall make
              advances
              from its own funds to effect such payments.

            

            Section
              4.09 Protection
              of Accounts.

            

            The
              Company may transfer the Custodial Account or the Escrow Account to
              a different
              Qualified Depository from time to time; provided, that the Company
              shall provide
              notice to the Purchaser.

            

            Section
              4.10 Maintenance
              of Hazard Insurance.

            

            The
              Company shall cause to be maintained for each Mortgage Loan hazard
              insurance
              such that all buildings upon the Mortgaged Property are insured by
              an insurer
              acceptable to Fannie Mae or Freddie Mac against loss by fire, hazards
              of
              extended coverage and such other hazards as are customary or required
              by law in
              the area where the Mortgaged Property is located, in an amount which
              is at least
              equal to the lesser of (i) 100% of the insurable value, on a replacement
              cost
              basis, of the improvements on the related Mortgaged Property or (ii)
              the greater
              of (a) the outstanding principal balance of the Mortgage Loan and (b)
              an amount
              such that the proceeds of such insurance shall be sufficient to avoid
              the
              application to the Mortgagor or loss payee of any co-insurance clause
              under the
              policy. In the event a hazard insurance policy shall be in danger of
              being
              terminated, or in the event the insurer shall cease to be acceptable
              to Fannie
              Mae or Freddie Mac, the Company shall notify the Purchaser and the
              related
              Mortgagor, and shall use its best efforts, as permitted by applicable
              law, to
              obtain from another qualified insurer a replacement hazard insurance
              policy
              substantially and materially similar in all respects to the original
              policy. In
              no event, however, shall a Mortgage Loan be without a hazard insurance
              policy at
              any time, subject only to Section 4.11 hereof.

            

            If
              the
              related Mortgaged Property is located in an area identified by the
              Flood
              Emergency Management Agency as having special flood hazards (and such
              flood
              insurance has been made available) the Company shall cause to be maintained
              a
              flood insurance policy meeting the requirements of the current guidelines
              of the
              Federal Insurance Administration is in effect with a generally acceptable
              insurance carrier acceptable to Fannie Mae or Freddie Mac in an amount
              representing coverage equal to the lesser of (i) the minimum amount
              required,
              under the terms of coverage, to compensate for any damage or loss on
              a
              replacement cost basis (or the unpaid balance of the mortgage if replacement
              cost coverage is not available for the type of building insured) and
              (ii) 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 Company determines in accordance with the applicable
              law and
              pursuant to the Fannie Mae Seller/Servicer Guide, that the Mortgaged
              Property is
              located in a special flood hazard area and is not covered by flood
              insurance
              meeting the requirements of the Flood Disaster Protection Act of 1973,
              as
              amended, the Company shall notify the related Mortgagor that they must
              obtain
              such flood insurance coverage and if the Mortgagor fails to provide
              proof of
              such coverage within forty-five (45) days of such notice, the Company
              shall
              force place the required flood insurance on the Mortgagor's behalf.
              If a
              Mortgage is secured by a unit in a condominium project, the Company
              shall verify
              that the coverage required of the owner's association, including hazard,
              flood,
              liability, and fidelity coverage, is being maintained in accordance
              with then
              current Fannie Mae requirements, and secure from the owner's association
              its
              agreement to notify the Company promptly of any change in the insurance
              coverage
              or of any condemnation or casualty loss that may have a material effect
              on the
              value of the Mortgaged Property as security.

            

            If
              a
              Mortgage is secured by a unit in a condominium project, the Company
              shall verify
              that the coverage required of the owner's association, including hazard,
              flood,
              liability, and fidelity coverage, is being maintained in accordance
              with then
              current Fannie Mae requirements, and secure from the owner's association
              its
              agreement to notify the Company promptly of any change in the insurance
              coverage
              or of any condemnation or casualty loss that may have a material effect
              on the
              value of the Mortgaged Property as security.

            

            In
              the
              event that any Purchaser or the Company shall determine that the Mortgaged
              Property should be insured against loss or damage by hazards and risks
              not
              covered by the insurance required to be maintained by the Mortgagor
              pursuant to
              the terms of the Mortgage, the Company shall communicate and consult
              with the
              Mortgagor with respect to the need for such insurance and bring to
              the
              Mortgagor's attention the required amount of coverage for the Mortgaged
              Property
              and if the Mortgagor does not obtain such coverage, the Company shall
              immediately force place the required coverage on the Mortgagor’s
              behalf.

            

            All
              policies required hereunder shall name the Company as loss payee and
              shall be
              endorsed with standard or union mortgagee clauses, without contribution,
              which
              shall provide for at least thirty (30) days prior written notice of
              any
              cancellation, reduction in amount or material change in coverage.

            

            The
              Company shall not interfere with the Mortgagor's freedom of choice
              in selecting
              either his insurance carrier or agent, provided, however, that the
              Company shall
              not accept any such insurance policies from insurance companies unless
              such
              companies are acceptable to Fannie Mae and Freddie Mac and are licensed
              to do
              business in the jurisdiction in which the Mortgaged Property is located.
              The
              Company shall determine that such policies provide sufficient risk
              coverage and
              amounts, that they insure the property owner, and that they properly
              describe
              the property address.

            

            Pursuant
              to Section 4.04, any amounts collected by the Company under any such
              policies
              (other than amounts to be deposited in the Escrow Account and applied
              to the
              restoration or repair of the related Mortgaged Property, or property
              acquired in
              liquidation of the Mortgage Loan, or to be released to the Mortgagor,
              in
              accordance with the Company's normal servicing procedures as specified
              in
              Section 4.14) shall be deposited in the Custodial Account subject to
              withdrawal
              pursuant to Section 4.05.

            

            Section
              4.11 Maintenance
              of Mortgage Impairment Insurance.

            

            In
              the
              event that the Company shall obtain and maintain a blanket policy insuring
              against losses arising from fire and hazards covered under extended
              coverage 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.
              The
              Company shall prepare and make any claims on the blanket policy as
              deemed
              necessary by the Company in accordance with Accepted Servicing Practices.
              Any
              amounts collected by the Company under any such policy relating to
              a Mortgage
              Loan shall be deposited in the Custodial Account subject to withdrawal
              pursuant
              to Section 4.05. Such policy may contain a deductible clause, in which
              case, in
              the event that there shall not have been maintained on the related
              Mortgaged
              Property a policy complying with Section 4.10, and there shall have
              been a loss
              which would have been covered by such policy, the Company shall deposit
              in the
              Custodial Account at the time of such loss the amount not otherwise
              payable
              under the blanket policy because of such deductible clause, such amount
              to be
              deposited from the Company's funds, without reimbursement therefor.
              Upon request
              of the Purchaser, the Company shall cause to be delivered to such Purchaser
              a
              certificate of insurance and 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 such Purchaser.

            

            Section
              4.12 Maintenance
              of Fidelity Bond and Errors and Omissions Insurance.

            

            The
              Company shall maintain with responsible companies, at its own expense,
              a blanket
              Fidelity Bond and an Errors and Omissions Insurance Policy, with broad
              coverage
              on all officers, employees or other Persons acting in any capacity
              requiring
              such Persons to handle funds, money, documents or papers relating to
              the
              Mortgage Loans ("Company Employees"). Any such Fidelity Bond and Errors
              and
              Omissions Insurance Policy shall be in the form of the Mortgage Banker's
              Blanket
              Bond and shall protect and insure the Company against losses, including
              forgery,
              theft, embezzlement, fraud, errors and omissions and negligent acts
              of such
              Company Employees. Such Fidelity Bond and Errors and Omissions Insurance
              Policy
              also shall protect and insure the Company against losses in connection
              with 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 such Fidelity Bond and Errors and Omissions Insurance Policy
              shall
              diminish or relieve the Company from its duties and obligations as
              set forth in
              this Agreement. The minimum coverage under any such Fidelity Bond and
              Errors and
              Omissions Insurance Policy shall be at least equal to the amounts acceptable
              to
              Fannie Mae or Freddie Mac. Upon the request of any Purchaser, the Company
              shall
              cause to be delivered to such Purchaser a certificate of insurance
              for such
              Fidelity Bond and Errors and Omissions Insurance Policy and a statement
              from the
              surety and the insurer that such Fidelity Bond and Errors and Omissions
              Insurance Policy shall in no event be terminated or materially modified
              without
              thirty (30) days' prior written notice to the Purchaser.

            

            Section
              4.13 Inspections.

            

            If
              any
              Mortgage Loan is more than sixty (60) days delinquent, the Company
              immediately
              shall inspect the Mortgaged Property and shall conduct subsequent inspections
              in
              accordance with Accepted Servicing Practices or as may be required
              by the
              primary mortgage guaranty insurer. The Company shall keep a record
              of each such
              inspection and, upon request, shall provide the Purchaser with such
              information.

            

            Section
              4.14 Restoration
              of Mortgaged Property.

            

            The
              Company need not obtain the approval of the Purchaser prior to releasing
              any
              Insurance Proceeds or Condemnation Proceeds to the Mortgagor to be
              applied to
              the restoration or repair of the Mortgaged Property if such release
              is in
              accordance with Accepted Servicing Practices. For claims greater than
              $15,000,
              at a minimum the Company shall comply with the following conditions
              in
              connection with any such release of Insurance Proceeds or Condemnation
              Proceeds:

            

            (i) the
              Company shall receive satisfactory independent verification of completion
              of
              repairs and issuance of any required approvals with respect
              thereto;

            

            (ii) the
              Company shall take all steps necessary to preserve the priority of
              the lien of
              the Mortgage, including, but not limited to requiring waivers with
              respect to
              mechanics' and materialmen's liens;

            

            (iii) the
              Company shall verify that the Mortgage Loan is not in default; and

            

            (iv) pending
              repairs or restoration, the Company shall place the Insurance Proceeds
              or
              Condemnation Proceeds in the Escrow Account.

            

            If
              the
              Purchaser is named as an additional loss payee, the Company is hereby
              empowered
              to endorse any loss draft issued in respect of such a claim in the
              name of the
              Purchaser.

            

            Section
              4.15 Maintenance
              of PMI Policy; Claims.

            

            Except
              as
              set forth on the Data File, with respect to each Mortgage Loan with
              an LTV in
              excess of 80% at the time of origination, the Company shall, without
              any cost to
              the Purchaser, maintain or cause the Mortgagor to maintain in full
              force and
              effect a PMI Policy insuring a portion of the unpaid principal balance
              of the
              Mortgage Loan as to payment defaults. If the Mortgage Loan is insured
              by a PMI
              Policy for which the Mortgagor pays all premiums, the coverage will
              remain in
              place until (i) the LTV decreased to 78% or (ii) the PMI Policy is
              otherwise
              terminated pursuant to the Homeowners Protection Act of 1998, 12 USC
§4901, et
              seq. In the event that such PMI Policy shall be terminated other than
              as
              required by law, the Company shall obtain from another Qualified Insurer
              a
              comparable replacement policy, with a total coverage equal to the remaining
              coverage of such terminated PMI Policy. If the insurer shall cease
              to be a
              Qualified Insurer, the Company shall determine whether recoveries under
              the PMI
              Policy are jeopardized for reasons related to the financial condition
              of such
              insurer, it being understood that the Company shall in no event have
              any
              responsibility or liability for any failure to recover under the PMI
              Policy for
              such reason. If the Company determines that recoveries are so jeopardized,
              it
              shall notify the Purchaser and the Mortgagor, if required, and obtain
              from
              another Qualified Insurer a replacement insurance policy. The Company
              shall not
              take any action which would result in noncoverage under any applicable
              PMI
              Policy of any loss which, but for the actions of the Company 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 Company
              shall
              promptly notify the insurer under the related PMI Policy, if any, of
              such
              assumption or substitution of liability in accordance with the terms
              of such PMI
              Policy and shall take all actions which may be required by such insurer
              as a
              condition to the continuation of coverage under such PMI Policy. If
              such PMI
              Policy is terminated as a result of such assumption or substitution
              of
              liability, the Company shall obtain a replacement PMI Policy as provided
              above.

            

            In
              connection with its activities as servicer, the Company agrees to prepare
              and
              present, on behalf of itself and the Purchaser, claims to the insurer
              under any
              PMI Policy in a timely fashion in accordance with the terms of such
              PMI Policy
              and, in this regard, to take such action as shall be necessary to permit
              recovery under any PMI Policy respecting a defaulted Mortgage Loan.
              Pursuant to
              Section 4.04, any amounts collected by the Company under any PMI Policy
              shall be
              deposited in the Custodial Account, subject to withdrawal pursuant
              to Section
              4.05.

            

            Section
              4.16 Title,
              Management and Disposition of REO Property.

            

            In
              the
              event that title to any Mortgaged Property is acquired in foreclosure
              or by deed
              in lieu of foreclosure, the deed or certificate of sale shall be taken
              in the
              name of the Company, or, upon the written request of the Purchaser,
              the name of
              the Purchaser's nominee, who shall have all rights of the Purchaser
              herein with
              respect to such REO Property. The Person or Persons holding such title
              other
              than the Purchaser shall acknowledge in writing that such title is
              being held as
              nominee for the Purchaser.

            

            The
              Company shall manage, conserve, protect and operate each REO Property
              for the
              Purchaser solely for the purpose of its prompt disposition and sale.
              The
              Company, either itself or through an agent selected by the Company,
              shall
              manage, conserve, protect and operate the 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 Company shall attempt to sell the
              same (and
              may temporarily rent the same for a period not greater than one year,
              except as
              otherwise provided below) on such terms and conditions as the Company
              deems to
              be in the best interest of the Purchaser.

            

            The
              Company 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 one year
              after
              title has been taken to such REO Property, unless (i) a REMIC election
              has not
              been made with respect to the arrangement under which the Mortgage
              Loans and the
              REO Property are held, and (ii) the Company 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 period longer than
              one year
              is permitted under the foregoing sentence and is necessary to sell
              any REO
              Property, (i) the Company shall report monthly to the Purchaser as
              to the
              progress being made in selling such REO Property and (ii) if, with
              the written
              consent of the Purchaser, a purchase money mortgage is taken in connection
              with
              such sale, such purchase money mortgage shall name the Company as mortgagee,
              and
              such purchase money mortgage shall not be held pursuant to this Agreement,
              but
              instead a separate participation agreement among the Company and Purchaser
              shall
              be entered into with respect to such purchase money mortgage.

            

            The
              Company shall also maintain on each REO Property fire and hazard insurance
              with
              extended coverage in amount which is at least equal to the maximum
              insurable
              value of the improvements which are a part of such property, liability
              insurance
              and, to the extent required and available under the Flood Disaster
              Protection
              Act of 1973, as amended, flood insurance in the amount required
              above.

            

            The
              disposition of REO Property shall be carried out by the Company at
              such price,
              and upon such terms and conditions, as the Company deems to be in the
              best
              interests of the Purchaser. The proceeds of sale of the REO Property
              shall be
              promptly deposited in the Custodial Account. As soon as practical thereafter
              the
              expenses of such sale shall be paid and the Company shall reimburse
              itself for
              any related unreimbursed Servicing Advances, unpaid Servicing Fees
              and
              unreimbursed advances made pursuant to Section 5.03. On the Remittance
              Date
              immediately following the Principal Prepayment Period in which such
              sale
              proceeds are received the net cash proceeds of such sale remaining
              in the
              Custodial Account shall be distributed to the Purchaser.

            

            The
              Company shall withdraw from the Custodial Account funds necessary for
              the proper
              operation management and maintenance of the REO Property, including
              the cost of
              maintaining any hazard insurance pursuant to Section 4.10 and the fees
              of any
              managing agent of the Company, or the Company itself. The Company shall
              make
              monthly distributions on each Remittance Date to the Purchaser of the
              net cash
              flow from the REO Property (which shall equal the revenues from such
              REO
              Property net of the expenses described in this Section 4.16 and of
              any reserves
              reasonably required from time to time to be maintained to satisfy anticipated
              liabilities for such expenses).

            

            Section
              4.17 Real
              Estate Owned Reports.

            

            Together
              with the statement furnished pursuant to Section 5.02, the Company
              shall furnish
              to the Purchaser on or before the Remittance Date each month a statement
              with
              respect to any REO Property covering the operation of such REO Property
              for the
              previous month and the Company's efforts in connection with the sale
              of such REO
              Property and any rental of such REO Property incidental to the sale
              thereof for
              the previous month. That statement shall be accompanied by such other
              information as the Purchaser shall reasonably request.

            

            Section
              4.18 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 Company shall
              submit to
              the Purchaser a liquidation report with respect to such Mortgaged
              Property.

            

            Section
              4.19 Reports
              of Foreclosures and Abandonments of Mortgaged Property.

            

            Following
              the foreclosure sale or abandonment of any Mortgaged Property, the
              Company shall
              report such foreclosure or abandonment as required pursuant to Section
              6050J of
              the Code. The Company shall file information reports with respect to
              the receipt
              of mortgage interest received in a trade or business and information
              returns
              relating to cancellation of indebtedness income with respect to any
              Mortgaged
              Property as required by the Code. Such reports shall be in form and
              substance
              sufficient to meet the reporting requirements imposed by the Code.

            

            Section
              4.20 Application
              of Buydown Funds.

            

            With
              respect to each Buydown Mortgage Loan, the Company shall have deposited
              into the
              Escrow Account, no later than the last day of the month, Buydown Funds
              in an
              amount equal to the aggregate undiscounted amount of payments that,
              when added
              to the amount the Mortgagor on such Mortgage Loan is obligated to pay
              on all Due
              Dates in accordance with the terms of the Buydown Agreement, is equal
              to the
              full scheduled Monthly Payments which are required to be paid by the
              Mortgagor
              under the terms of the related Mortgage Note (without regard to the
              related
              Buydown Agreement as if the Mortgage Loan were not subject to the terms
              of the
              Buydown Agreement). With respect to each Buydown Mortgage Loan, the
              Company will
              distribute to the Purchaser on each Remittance Date an amount of Buydown
              Funds
              equal to the amount that, when added to the amount required to be paid
              on such
              date by the related Mortgagor, pursuant to and in accordance with the
              related
              Buydown Agreement, equals the full Monthly Payment that would otherwise
              be
              required to be paid on such Mortgage Loan by the related Mortgagor
              under the
              terms of the related Mortgage Note (as if the Mortgage Loan were not
              a Buydown
              Mortgage Loan and without regard to the related Buydown Agreement).

            

            If
              the
              Mortgagor on a Buydown Mortgage Loan defaults on such Mortgage Loan
              during the
              Buydown Period and the Mortgaged Property securing such Buydown Mortgage
              Loan is
              sold in the liquidation thereof (either by the Company or the insurer
              under any
              related Primary Insurance Policy) the Company shall, on the Remittance
              Date
              following the date upon which Liquidation Proceeds or REO Disposition
              proceeds
              are received with respect to any such Buydown Mortgage Loan, distribute
              to the
              Purchaser all remaining Buydown Funds for such Mortgage Loan then remaining
              in
              the Escrow Account. Pursuant to the terms of each Buydown Agreement,
              any amounts
              distributed to the Purchaser in accordance with the preceding sentence
              will be
              applied to reduce the outstanding principal balance of the related
              Buydown
              Mortgage Loan. If a Mortgagor on a Buydown Mortgage Loan prepays such
              Mortgage
              Loan in its entirety during the related Buydown Period, the Company
              shall be
              required to withdraw from the Escrow Account any Buydown Funds remaining
              in the
              Escrow Account with respect to such Buydown Mortgage Loan in accordance
              with the
              related Buydown Agreement. If a principal prepayment by a Mortgagor
              on a Buydown
              Mortgage Loan during the related Buydown Period, together with any
              Buydown Funds
              then remaining in the Escrow Account related to such Buydown Mortgage
              Loan,
              would result in a principal prepayment of the entire unpaid principal
              balance of
              the Buydown Mortgage Loan, the Company shall distribute to the Purchaser
              on the
              Remittance Date occurring in the month immediately succeeding the month
              in which
              such Principal Prepayment is received, all Buydown Funds related to
              such
              Mortgage Loan so remaining in the Escrow Account, together with any
              amounts
              required to be deposited into the Custodial Account.

            

            Section
              4.21 Confidentiality/Protection
              of Customer Information.

            

            The
              Company shall keep confidential and shall not divulge to any party,
              without the
              Purchaser's prior written consent, the price paid by the Purchaser
              for the
              Mortgage Loans, except to the extent that it is reasonable and necessary
              for the
              Company to do so in working with legal counsel, auditors, taxing authorities
              or
              other governmental agencies. Each party agrees that it shall comply
              with all
              applicable laws and regulations regarding the privacy or security of
              Customer
              Information and shall maintain appropriate administrative, technical
              and
              physical safeguards to protect the security, confidentiality and integrity
              of
              Customer Information, including maintaining security measures designed
              to meet
              the objectives of the Interagency Guidelines Establishing Standards
              for
              Safeguarding Customer Information, 66 Fed. Reg. 8616 (the “Interagency
              Guidelines”). For purposes of this Section, the term “Customer Information”
shall have the meaning assigned to it in the Interagency
              Guidelines.

            

            Section
              4.22 Fair
              Credit Reporting Act

            

            The
              Company, in its capacity as servicer for each Mortgage Loan, agrees
              to fully
              furnish, in accordance with the Fair Credit Reporting Act and its implementing
              regulations, accurate and complete information (e.g., favorable and
              unfavorable)
              on its borrower credit files to Equifax, Experian and Trans Union Credit
              Information Company (three of the credit repositories), on a monthly
              basis.

            

            Section
              4.23. Prepayment
              Penalties.

             

            To
              the
              extent consistent with the terms of this Agreement, the Company may
              waive (or
              permit a subservicer to waive) a Prepayment Penalty only under the
              following
              circumstances: (i) such
              waiver relates to a default or a reasonably forseeable default and
              would, in the
              reasonable judgment of the Company, maximize recovery of total proceeds,
              taking
              into account the value of such Prepayment Penalty and the related Mortgage
              Loan,
(ii)
              such
              waiver is required under state or federal law or (iii) the mortgage
              debt has
              been accelerated as a result of the Mortgagor’s default in making its Monthly
              Payments. The
              Company shall not waive any Prepayment Penalty unless it is waived
              in accordance
              with this Section 4.23.

             

            The
              Company
shall
              pay
              the amount of any
              Prepayment
              Penalty (to the extent not collected and remitted to the Purchaser)
              to the
              Purchaser or its assignees if (1) the representation
              in
Section
              3.02(uu)
              is breached and such breach materially and adversely affects the interests
              of
              the Purchaser or its assigns,
              or
              (2)
              the Company waives any Prepayment Penalty other than as permitted under
              this
              Section 4.23. The
              Company
              shall pay the amount of such
              Prepayment Penalty, for the benefit of the Purchaser or any assignee
              of the
              Purchaser, by depositing such amount into the Custodial Account at
              the time that
              the amount prepaid on the related Mortgage Loan is required to be deposited
              into
              the Custodial Account.

            

            Section
              4.24 Notification
              of Adjustments.

            

            With
              respect to each Adjustable Rate Mortgage Loan, the Company shall adjust
              the
              Mortgage Interest Rate on the related Adjustment Date in compliance
              with the
              requirements of applicable law and the related Mortgage and Mortgage
              Note. The
              Company shall execute and deliver any and all necessary notices required
              under
              applicable law and the terms of the related Mortgage Note and Mortgage
              regarding
              the Mortgage Interest Rate adjustments. Upon the discovery by the Company
              or the
              receipt of notice from the Purchaser that the Company has failed to
              adjust a
              Mortgage Interest Rate in accordance with the terms of the related
              Mortgage
              Note, the Company shall immediately deposit in the Custodial Account
              from its
              own funds the amount of any interest loss or deferral caused the Purchaser
              thereby.

            

            Section
              4.25 Use
              of
              Subservicers and Subcontractors.

            

            The
              Company shall not hire or otherwise utilize the services of any Subservicer
              to
              fulfill any of the obligations of the Company under this Agreement
              or any
              Reconstitution Agreement unless the Company complies with the provisions
              of
              paragraph (a) of this Section 4.25. The Company shall not hire or otherwise
              utilize the services of any Subcontractor, and shall not permit any
              Subservicer
              to hire or otherwise utilize the services of any Subcontractor, to
              fulfill any
              of the obligations of the Company under this Agreement or any Reconstitution
              Agreement unless the Company complies with the provisions of paragraph
              (b) of
              this Section 4.25.

            

            (a) It
              shall
              not be necessary for the Company to seek the consent of the Purchaser,
              any
              Master Servicer or any Depositor to the utilization of any Subservicer.
              The
              Company shall cause any Subservicer used by the Company (or by any
              Subservicer)
              for the benefit of the Purchaser and any Depositor to comply with the
              provisions
              of this Section 4.25 and with Sections 6.04, 6.06, 9.01(d)(iii), 9.01(d)(v),
              9.01(d)(vi), 9.01(d)(vii), 9.01(d)(viii) and 9.01(e) of this Agreement
              to the
              same extent as if such Subservicer were the Company, and to provide
              the
              information required with respect to such Subservicer under Section
              9.01(d)(iv)
              of this Agreement. The Company shall be responsible for obtaining from
              each
              Subservicer and delivering to the Purchaser and any Depositor any servicer
              compliance statement required to be delivered by such Subservicer under
              Section
              6.04 and any assessment of compliance and attestation required to be
              delivered
              by such Subservicer under Section 6.06 and any certification required
              to be
              delivered to the Person that will be responsible for signing the Sarbanes
              Certification under Section 6.06 as and when required to be
              delivered.

            

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

            

            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 Company shall cause any such Subcontractor used
              by the
              Company (or by any Subservicer) for the benefit of the Purchaser and
              any
              Depositor to comply with the provisions of Sections 6.06 and 9.01(e)
              of this
              Agreement to the same extent as if such Subcontractor were the Company.
              The
              Company shall be responsible for obtaining from each Subcontractor
              and
              delivering to the Purchaser and any Depositor any assessment of compliance
              and
              attestation and the other certifications required to be delivered by
              such
              Subcontractor under Section 6.06, in each case as and when required
              to be
              delivered.

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            ARTICLE
              V

             

            PAYMENTS
              TO PURCHASER

            

            Section
              5.01 Remittances.

            

            On
              each
              Remittance Date the Company shall remit by wire transfer of immediately
              available funds to the Purchaser (a) all amounts deposited in the Custodial
              Account as of the close of business on the Determination Date (net
              of charges
              against or withdrawals from the Custodial Account pursuant to Section
              4.05),
              plus (b) all amounts, if any, which the Company is obligated to distribute
              pursuant to Section 5.03, minus (c) any amounts attributable to Principal
              Prepayments received after the applicable Principal Prepayment Period
              which
              amounts shall be remitted on the following Remittance Date, together
              with any
              additional interest required to be deposited in the Custodial Account
              in
              connection with such Principal Prepayment in accordance with Section
              4.04(viii);
              minus (d) any amounts attributable to Monthly Payments collected but
              due on a
              Due Date or Dates subsequent to the first day of the month of the Remittance
              Date, and minus (e) any amounts attributable to Buydown Funds being
              held in the
              Custodial Account, which amounts shall be remitted on the Remittance
              Date next
              succeeding the Due Period for such amounts.

            

            With
              respect to any remittance received by the Purchaser after the second
              Business
              Day following the Business Day on which such payment was due, the Company
              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 three
              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
              Company on
              the date such late payment is made and shall cover the period commencing
              with
              the day following such second Business Day 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 Company of any such interest shall not be deemed an
              extension of
              time for payment or a waiver of any Event of Default by the
              Company.

            

            Section
              5.02 Statements
              to Purchaser.

            

            Not
              later
              than the tenth (10th) Business Day of each month, the Company shall
              furnish to
              the Purchaser a monthly remittance advice, including the information
              set forth
              in Exhibit I, in a mutually agreeable electronic format, as to the
              period ending
              on the last day of the month preceding such Remittance Date.

            

            Section
              5.03 Monthly
              Advances by Company.

            

            On
              the
              Business Day immediately preceding each Remittance Date, the Company
              shall
              deposit in the Custodial Account from its own funds or from amounts
              held for
              future distribution an amount equal to all Monthly Payments (with interest
              adjusted to the Mortgage Loan Remittance Rate) which were due on the
              Mortgage
              Loans during the applicable Due Period and which were delinquent at
              the close of
              business on the immediately preceding Determination Date or which were
              deferred
              pursuant to Section 4.01. Any amounts held for future distribution
              and so used
              shall be replaced by the Company by deposit in the Custodial Account
              on or
              before any future Remittance Date if funds in the Custodial Account
              on such
              Remittance Date shall be less than payments to the Purchaser required
              to be made
              on such Remittance Date. The Company's obligation to make such Monthly
              Advances
              as to any Mortgage Loan will continue through the last Monthly Payment
              due prior
              to the payment in full of the Mortgage Loan, or through the earlier
              of: (i) the
              last Remittance Date prior to the Remittance Date for the distribution
              of all
              Liquidation Proceeds and other payments or recoveries (including Insurance
              Proceeds and Condemnation Proceeds) with respect to the Mortgage Loan;
              and (ii)
              the Remittance Date prior to the date the Mortgage Loan is converted
              to REO
              Property, provided however, that if requested by a Rating Agency in
              connection
              with a securitization, the Company shall be obligated to make such
              advances
              through the Remittance Date prior to the date on which cash is received
              in
              connection with the liquidation of REO Property; provided, however,
              that such
              obligation shall cease if the Company determines, in its sole reasonable
              opinion, that advances with respect to such Mortgage Loan are non-recoverable
              by
              the Company from Liquidation Proceeds, Insurance Proceeds, Condemnation
              Proceeds, or otherwise with respect to a particular Mortgage Loan.
              In the event
              that the Company determines that any such advances are non-recoverable,
              the
              Company shall provide the Purchaser with a certificate signed by two
              officers of
              the Company evidencing such determination. The Company shall not have
              an
              obligation to make such Monthly Advances as to any Mortgage Loan with
              respect to
              shortfalls relating to the Servicemembers Civil Relief Act or similar
              state and
              local laws.

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            ARTICLE
              VI

             

            GENERAL
              SERVICING PROCEDURES

            

            Section
              6.01 Transfers
              of Mortgaged Property.

            

            The
              Company shall use its best efforts to enforce any "due-on-sale" provision
              contained in any Mortgage or Mortgage Note and to deny assumption by
              the Person
              to whom the Mortgaged Property has been or is about to be sold whether
              by
              absolute conveyance or by contract of sale, and whether or not the
              Mortgagor
              remains liable on the Mortgage and the Mortgage Note. When the Mortgaged
              Property has been conveyed by the Mortgagor, the Company shall, to
              the extent it
              has knowledge of such conveyance, exercise its rights to accelerate
              the maturity
              of such Mortgage Loan under the "due-on-sale" clause applicable thereto,
              provided, however, that the Company shall not exercise such rights
              if prohibited
              by law from doing so or if the exercise of such rights would impair
              or threaten
              to impair any recovery under the related PMI Policy, if any.

            

            If
              the
              Company reasonably believes it is unable under applicable law to enforce
              such
              "due-on-sale" clause, the Company shall enter into (i) an assumption
              and
              modification agreement with the Person to whom such property has been
              conveyed,
              pursuant to which such Person becomes liable under the Mortgage Note
              and the
              original Mortgagor remains liable thereon or (ii) in the event the
              Company is
              unable under applicable law to require that the original Mortgagor
              remain liable
              under the Mortgage Note and the Company has the prior consent of the
              primary
              mortgage guaranty insurer, a substitution of liability agreement with
              the
              purchaser of the Mortgaged Property pursuant to which the original
              Mortgagor is
              released from liability and the purchaser of the Mortgaged Property
              is
              substituted as Mortgagor and becomes liable under the Mortgage Note.
              If an
              assumption fee is collected by the Company for entering into an assumption
              agreement the fee will be retained by the Company as additional servicing
              compensation. In connection with any such assumption, neither the Mortgage
              Interest Rate borne by the related Mortgage Note, the term of the Mortgage
              Loan,
              the outstanding principal amount of the Mortgage Loan nor any other
              material
              terms shall be changed without Purchaser’s consent.

            

            To
              the
              extent that any Mortgage Loan is assumable, the Company shall inquire
              diligently
              into the credit worthiness of the proposed transferee, and shall use
              the
              underwriting criteria for approving the credit of the proposed transferee
              which
              are used with respect to underwriting mortgage loans of the same type
              as the
              Mortgage Loan. If the credit worthiness of the proposed transferee
              does not meet
              such underwriting criteria, the Company diligently shall, to the extent
              permitted by the Mortgage or the Mortgage Note and by applicable law,
              accelerate
              the maturity of the Mortgage Loan.

            

            Section
              6.02 Satisfaction
              of Mortgages and Release of Mortgage Files.

            

            Upon
              the
              payment in full of any Mortgage Loan, or the receipt by the Company
              of a
              notification that payment in full will be escrowed in a manner customary
              for
              such purposes, the Company shall notify the Purchaser in the Monthly
              Remittance
              Advice as provided in Section 5.02, and may request the release of
              any Mortgage
              Loan Documents.

            

            If
              the
              Company satisfies or releases a Mortgage without first having obtained
              payment
              in full of the indebtedness secured by the Mortgage (other than a modification
              or liquidation of the Mortgaged Property pursuant to the terms of this
              Agreement) or should the Company otherwise prejudice any rights the
              Purchaser
              may have under the mortgage instruments, upon written demand of the
              Purchaser,
              the Company shall repurchase the related Mortgage Loan at the Repurchase
              Price
              by deposit thereof in the Custodial Account within two (2) Business
              Days of
              receipt of such demand by the Purchaser. The Company shall maintain
              the Fidelity
              Bond and Errors and Omissions Insurance Policy as provided for in Section
              4.12
              insuring the Company against any loss it may sustain with respect to
              any
              Mortgage Loan not satisfied in accordance with the procedures set forth
              herein.

            

            Section
              6.03 Servicing
              Compensation.

            

            As
              compensation for its services hereunder, the Company shall be entitled
              to
              withdraw from the Custodial Account the amount of its Servicing Fee.
              The
              Servicing Fee shall be payable monthly and shall be computed on the
              basis of the
              same unpaid principal balance and for the period respecting which any
              related
              interest payment on a Mortgage Loan is received. The obligation of
              the Purchaser
              to pay the Servicing Fee is limited to, and payable solely from, the
              interest
              portion (including recoveries with respect to interest from Liquidation
              Proceeds, to the extent permitted by Section 4.05) of such Monthly
              Payments.
              Notwithstanding the foregoing, with respect to the payment of the Servicing
              Fee
              for any month, the aggregate Servicing Fee shall be reduced (but not
              below zero)
              by an amount equal to the Prepayment Interest Shortfall for such Remittance
              Date
              relating to the Mortgage Loans.

            

            Additional
              servicing compensation in the form of assumption fees, to the extent
              provided in
              Section 6.01, and late payment charges shall be retained by the Company
              to the
              extent not required to be deposited in the Custodial Account. The Company
              shall
              be required to pay all expenses incurred by it in connection with its
              servicing
              activities hereunder and shall not be entitled to reimbursement thereof
              except
              as specifically provided for herein.

            

            Section
              6.04 Annual
              Statement as to Compliance.

            

            On
              or
              before March 1 of each calendar year, commencing in 2007, the Company
              shall
              deliver to the Purchaser, any Master Servicer and any Depositor a statement
              of
              compliance addressed to the Purchaser, such Master Servicer and such
              Depositor
              and signed by an authorized officer of the Company, to the effect that
              (i) a
              review of the Company’s activities during the immediately preceding calendar
              year (or applicable portion thereof) and of its performance under this
              Agreement
              and any applicable Reconstitution Agreement during such period has
              been made
              under such officer's supervision, and (ii) to the best of such officer's
              knowledge, based on such review, the Company has fulfilled all its
              obligations
              under this Agreement and any Reconstitution Agreement in all material
              respect
              throughout such calendar year (or applicable portion thereof) or, if
              there has
              been a failure to fulfill any such obligation in any material respect,
              specifically identifying each such failure known to such officer and
              the nature
              and status thereof.

            

            Section
              6.05 Annual
              Independent Public Accountants' Servicing Report.

            

            Except
              with respect to any Mortgage Loans that are the subject of a Securitization
              Transaction, on or before March 1, of each calendar year, commencing
              in 2007,
              the Company, at its expense, shall cause a firm of independent public
              accountants which is a member of the American Institute of Certified
              Public
              Accountants to furnish a statement to each Purchaser to the effect
              that such
              firm has examined certain documents and records relating to the servicing
              of the
              mortgage loans similar in nature and that such firm is of the opinion
              that the
              provisions of this or similar agreements have been complied with, and
              that, on
              the basis of such examination conducted substantially in compliance
              with the
              Uniform Single Attestation Program for Mortgage Bankers, nothing has
              come to
              their attention which would indicate that such servicing has not been
              conducted
              in compliance therewith, except for (i) such exceptions as such firm
              shall
              believe to be immaterial, and (ii) such other exceptions as shall be
              set forth
              in such statement. By providing Purchaser a copy of a Uniform Single
              Attestation
              Program Report from their independent public accountant's on an annual
              basis,
              Company shall be considered to have fulfilled its obligations under
              this Section
              6.05.

            

            Section
              6.06 Report
              on Assessment of Compliance and Attestation.

            

            With
              respect to any Mortgage Loans that are the subject of a Securitization
              Transaction, on or before March 1 of each calendar year, commencing
              in 2007, the
              Company shall:

            

            
              	(i)  	
                      deliver
                        to the Purchaser, any Master Servicer and any Depositor a
                        report (in form
                        and substance reasonably satisfactory to the Purchaser, such
                        Master
                        Servicer and such Depositor) regarding the Company’s assessment of
                        compliance with the Servicing Criteria during the immediately
                        preceding
                        calendar year, as required under Rules 13a-18 and 15d-18
                        of the Exchange
                        Act and Item 1122 of Regulation AB. Such report shall be
                        addressed to the
                        Purchaser, such Master Servicer and such Depositor and signed
                        by an
                        authorized officer of the Company, and shall address each
                        of the
                        “Applicable Servicing Criteria” specified on Exhibit J hereto (or those
                        Servicing Criteria otherwise mutually agreed to by the Purchaser,
                        the
                        Company and any Person that will be responsible for signing
                        any Sarbanes
                        Certification with respect to a Securitization Transaction
                        in response to
                        evolving interpretations of Regulation
                        AB);

                    

            

            

            
              	(ii)  	
                      deliver
                        to the Purchaser, any Master Servicer and any Depositor a
                        report of a
                        registered public accounting firm reasonably acceptable to
                        the Purchaser,
                        such Master Servicer and such Depositor that attests to,
                        and reports on,
                        the assessment of compliance made by the Company and delivered
                        pursuant to
                        the preceding paragraph. Such attestation shall be in accordance
                        with
                        Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the
                        Securities Act
                        and the Exchange Act; 

                    

            

            

            
              	(iii)  	
                      cause
                        each Subservicer and each Subcontractor, determined by the
                        Company
                        pursuant to Section 4.25(b) to be “participating in the servicing
                        function” within the meaning of Item 1122 of Regulation AB, to deliver
                        to
                        the Purchaser, any Master Servicer and any Depositor an assessment
                        of
                        compliance and accountants’ attestation as and when provided in paragraphs
                        (i) and (ii) of this Section 6.06; and

                    

            

            

            
              	(iv)  	
                      deliver,
                        and cause each Subservicer and each Subcontractor described
                        in clause
                        (iii) to deliver to the Purchaser, any Master Servicer, any
                        Depositor and
                        any other Person that will be responsible for signing the
                        certification (a
                        “Sarbanes Certification”) required by Rules 13a-14(d) and 15d-14(d) under
                        the Exchange Act (pursuant to Section 302 of the Sarbanes-Oxley
                        Act of
                        2002) on behalf of an asset-backed issuer with respect to
                        a Securitization
                        Transaction a certification, signed by the appropriate officer
                        of the
                        Company, in the form attached hereto as Exhibit
                        K.

                    

            

            

            The
              Company acknowledges that the parties identified in clause (iv) above
              may rely
              on the certification provided by the Company pursuant to such clause
              in signing
              a Sarbanes Certification and filing such with the Commission. Neither
              the
              Purchaser, any Master Servicer nor any Depositor will request delivery
              of a
              certification under clause (iv) above unless a Depositor is required
              under the
              Exchange Act to file an annual report on Form 10-K with respect to
              an issuing
              entity whose asset pool includes Mortgage Loans.

            

            Each
              assessment of compliance provided by a Subservicer pursuant to Section
              6.06(i)
              shall address each of the Servicing Criteria specified substantially
              in the form
              of Exhibit J hereto delivered to the Purchaser at the time of any Securitization
              Transaction or, in the case of a Subservicer subsequently appointed
              as such, on
              or prior to the date of such appointment. An assessment of compliance
              provided
              by a Subcontractor pursuant to Section 6.06(iii) need not address any
              elements
              of the Servicing Criteria other than those specified by the Company
              pursuant to
              Section 4.25.

            

            Section
              6.07 Remedies.

            

            (i) Any
              failure by the Company, any Subservicer, any Subcontractor or any Third-Party
              Originator to deliver any information, report, certification, accountants’
letter or other material when and as required under Article IX, Sections
              4.25,
              6.04 or 6.06, or any breach by the Company of a representation or warranty
              set
              forth in Section 9.01(d)(vi)(A), or in a writing furnished pursuant
              to Section
              9.01(d)(vi)(B) and made as of a date prior to the closing date of the
              related
              Securitization Transaction, to the extent that such breach is not cured
              by such
              closing date, or any breach by the Company of a representation or warranty
              in a
              writing furnished pursuant to Section 9.01(d)(vi)(B) to the extent
              made as of a
              date subsequent to such closing date, shall, except as provided in
              sub-clause
              (ii) of this Section, immediately and automatically, without notice
              or grace
              period, constitute an Event of Default with respect to the Company
              under this
              Agreement and any applicable Reconstitution Agreement, and shall entitle
              the
              Purchaser or any Depositor, as applicable, in its sole discretion to
              terminate
              the rights and obligations of the Company as servicer under this Agreement
              and/or any applicable Reconstitution Agreement without payment (notwithstanding
              anything in this Agreement or any applicable Reconstitution Agreement
              to the
              contrary) of any compensation to the Company (and, if the Company is
              servicing
              any of the Mortgage Loans in a Securitization Transaction, appoint
              a successor
              servicer reasonably acceptable to any Master Servicer for such Securitization
              Transaction); provided that to the extent that any provision of this
              Agreement
              and/or any applicable Reconstitution Agreement expressly provides for
              the
              survival of certain rights or obligations following termination of
              the Company
              as servicer, such provision shall be given effect.

            

            (ii) Any
              failure by the Company, any Subservicer or any Subcontractor to deliver
              any
              information, report, certification or accountants’ letter when and as required
              under Sections 6.04 or 6.06, including (except as provided below) any
              failure by
              the Company to identify any Subcontractor “participating in the servicing
              function” within the meaning of Item 1122 of Regulation AB, which continues
              unremedied for ten (10) calendar days after the date on which such
              information,
              report, certification or accountants’ letter was required to be delivered shall
              constitute an Event of Default with respect to the Company under this
              Agreement
              and any applicable Reconstitution Agreement, and shall entitle the
              Purchaser,
              any Master Servicer or any Depositor, as applicable, in its sole discretion
              to
              terminate the rights and obligations of the Company under this Agreement
              and/or
              any applicable Reconstitution Agreement without payment (notwithstanding
              anything in this Agreement to the contrary) of any compensation to
              the Company;
              provided that to the extent that any provision of this Agreement and/or
              any
              applicable Reconstitution Agreement expressly provides for the survival
              of
              certain rights or obligations following termination of the Company
              as servicer,
              such provision shall be given effect.

            

            Neither
              the Purchaser nor any Depositor shall be entitled to terminate the
              rights and
              obligations of the Company pursuant to this Section 6.07(ii) if a failure
              of the
              Company to identify a Subcontractor “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB was attributable solely
              to the
              role or functions of such Subcontractor with respect to mortgage loans
              other
              than the Mortgage Loans.

            

            (iii) The
              Company shall promptly reimburse the Purchaser (or any designee of
              the
              Purchaser), any Master Servicer and any Depositor, as applicable, for
              all
              reasonable expenses incurred by the Purchaser (or such designee) or
              such
              Depositor, as such are incurred, in connection with the termination
              of the
              Company as servicer and the transfer of servicing of the Mortgage Loans
              to a
              successor servicer. The provisions of this paragraph shall not limit
              whatever
              rights the Purchaser or any Depositor may have under other provisions
              of this
              Agreement and/or any applicable Reconstitution Agreement or otherwise,
              whether
              in equity or at law, such as an action for damages, specific performance
              or
              injunctive relief.

            

            Section
              6.08 Right
              to Examine Company Records.

            

            The
              Purchaser, or its designee, shall have the right to examine and audit
              any and
              all of the books, records, or other information of the Company, whether
              held by
              the Company or by another on its behalf, with respect to or concerning
              this
              Agreement or the Mortgage Loans, during business hours or at such other
              times as
              may be reasonable under applicable circumstances, upon reasonable advance
              notice. The Purchaser shall pay its own expenses associated with such
              examination.

            

            Section
              6.07 Compliance
              with REMIC Provisions.

            

            If
              a
              REMIC election has been made with respect to the arrangement under
              which the
              Mortgage Loans and REO Property are held, the Company shall not take
              any action,
              cause the REMIC to take any action or fail to take (or fail to cause
              to be
              taken) any action that, under the REMIC Provisions, if taken or not
              taken, as
              the case may be, could (i) endanger the status of the REMIC as a REMIC
              or (ii)
              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) unless the Company has received an Opinion of Counsel (at
              the expense
              of the party seeking to take such action) to the effect that the contemplated
              action will not endanger such REMIC status or result in the imposition
              of any
              such tax.

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            ARTICLE
              VII

             

            COMPANY
              TO COOPERATE

            

            Section
              7.01 Provision
              of Information.

            

            During
              the term of this Agreement, the Company shall furnish to the Purchaser
              such
              periodic, special, or other reports or information, and copies or originals
              of
              any documents contained in the Servicing File for each Mortgage Loan
              provided
              for herein. All other special reports or information not provided for
              herein as
              shall be necessary, reasonable, or appropriate with respect to the
              Purchaser or
              any regulatory agency will be provided at the Purchaser’s expense. All such
              reports, documents or information shall be provided by and in accordance
              with
              all reasonable instructions and directions which the Purchaser may
              give.

            

            The
              Company shall execute and deliver all such instruments and take all
              such action
              as the Purchaser may reasonably request from time to time, in order
              to
              effectuate the purposes and to carry out the terms of this
              Agreement.

            

            Section
              7.02 Financial
              Statements; Servicing Facility.

            

            In
              connection with marketing the Mortgage Loans, the Purchaser may make
              available
              to a prospective Purchaser a Consolidated Statement of Operations of
              the Company
              for the most recently completed two (2) fiscal years for which such
              a statement
              is available, as well as a Consolidated Statement of Condition at the
              end of the
              last two fiscal years covered by such Consolidated Statement of Operations.
              The
              Company, upon request, also shall make available any comparable interim
              statements to the extent any such statements have been prepared by
              or on behalf
              of the Company (and are available upon request to members or stockholders
              of the
              Company or to the public at large).

            

            The
              Company also shall make available to Purchaser or prospective Purchaser
              a
              knowledgeable financial or accounting officer for the purpose of answering
              questions respecting recent developments affecting the Company or the
              financial
              statements of the Company, and to permit any prospective purchaser
              to inspect
              the Company's servicing facilities for the purpose of satisfying such
              prospective purchaser that the Company has the ability to service the
              Mortgage
              Loans as provided in this Agreement.

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            ARTICLE
              VIII

             

            THE
              COMPANY

            

            Section
              8.01 Indemnification;
              Third Party Claims.

            

            The
              Company shall indemnify the Purchaser and hold it harmless against
              any and all
              claims, losses, damages, penalties, fines, forfeitures, reasonable
              and necessary
              legal fees and related costs, judgments, and any other costs, fees
              and expenses
              that the Purchaser may sustain in any way related to the failure of
              the Company
              to perform its duties and service the Mortgage Loans in strict compliance
              with
              the terms of this Agreement. The Company immediately shall notify the
              Purchaser
              if a claim is made by a third party with respect to this Agreement
              or the
              Mortgage Loans, assume (with the prior written 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 Company shall follow any written instructions received from
              the
              Purchaser in connection with such claim. The Purchaser promptly shall
              reimburse
              the Company for all amounts advanced by it pursuant to the preceding
              sentence
              except when the claim is in any way related to the Company's indemnification
              pursuant to Section 3.03, or the failure of the Company to service
              and
              administer the Mortgage Loans in strict compliance with the terms of
              this
              Agreement.

            

            Section
              8.02 Merger
              or Consolidation of the Company.

            

            The
              Company shall keep in full effect its existence, rights and franchises
              and shall
              obtain and preserve its qualification to do business in each jurisdiction
              in
              which such qualification is or shall be necessary to protect the validity
              and
              enforceability of this Agreement or any of the Mortgage Loans and to
              perform its
              duties under this Agreement.

            

            Any
              Person into which the Company may be merged or consolidated, or any
              corporation
              resulting from any merger, conversion or consolidation to which the
              Company
              shall be a party, or any Person succeeding to the business of the Company,
              shall
              be the successor of the Company 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 (i) having a net worth of
              not less than
              $25,000,000 and (ii) which is a Fannie Mae/Freddie Mac-approved seller/servicer
              in good standing. Furthermore, in the event the Company transfers or
              otherwise
              disposes of all or substantially all of its assets to an affiliate
              of the
              Company, such affiliate shall satisfy the condition above, and shall
              also be
              fully liable to the Purchaser for all of the Company's obligations
              and
              liabilities hereunder.

            

            Section
              8.03 Limitation
              on Liability of Company and Others.

            

            Neither
              the Company nor any of the directors, officers, employees or agents
              of the
              Company 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, provided, however, that this
              provision
              shall not protect the Company or any such Person against any breach
              of
              warranties or representations made herein, or failure to perform its
              obligations
              in strict compliance with any standard of care set forth in this Agreement
              or
              any other liability which would otherwise be imposed under this Agreement.
              The
              Company and any director, officer, employee or agent of the Company
              may rely in
              good faith on any document of any kind prima facie properly executed
              and
              submitted by any Person respecting any matters arising hereunder. The
              Company
              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 opinion may involve
              it in any
              expense or liability, provided, however, that the Company may, with
              the consent
              of the Purchaser, 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 Company shall be entitled to reimbursement
              from the
              Purchaser of the reasonable legal expenses and costs of such
              action.

            

            Section
              8.04 Limitation
              on Resignation and Assignment by Company.

            

            The
              Purchaser has entered into this Agreement with the Company and subsequent
              purchasers will purchase the Mortgage Loans in reliance upon the independent
              status of the Company, and the representations as to the adequacy of
              its
              servicing facilities, personnel, records and procedures, its integrity,
              reputation and financial standing, and the continuance thereof. Therefore,
              the
              Company shall neither assign this Agreement or the servicing rights
              hereunder or
              delegate its rights or duties hereunder (other than pursuant to Section
              4.01) or
              any portion hereof or sell or otherwise dispose of all of its property
              or assets
              without the prior written consent of the Purchaser, which consent shall
              not be
              unreasonably withheld.

            

            The
              Company shall not resign from the obligations and duties hereby imposed
              on it
              except by mutual consent of the Company 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 Company.
              Any such
              determination permitting the resignation of the Company 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
              Company's responsibilities and obligations hereunder in the manner
              provided in
              Section 12.01.

            

            Without
              in any way limiting the generality of this Section 8.04, in the event
              that the
              Company either shall assign this Agreement or the servicing responsibilities
              hereunder or delegate its duties hereunder (other than pursuant to
              Section 4.01)
              or any portion thereof or sell or otherwise dispose of all or substantially
              all
              of its property or assets, without the prior written consent of the
              Purchaser,
              then the Purchaser shall have the right to terminate this Agreement
              upon notice
              given as set forth in Section 10.01, without any payment of any penalty
              or
              damages and without any liability whatsoever to the Company or any
              third
              party.

             

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

             

            ARTICLE
              IX

             

            SECURITIZATION
              TRANSACTIONS, WHOLE LOAN SALES AND AGENCY SALES

            

            Section
              9.01 Removal
              of Mortgage Loans from Inclusion Under this Agreement Upon the Securitization
              Transactions

            

            The
              Purchaser and the Company agree that with respect to some or all of
              the Mortgage
              Loans, the Purchaser, at its sole option, may effect Agency Sales,
              Whole Loan
              Transfers or Securitization Transactions, retaining the Company as
              the servicer
              thereof or subservicer if a master servicer is employed, or as applicable
              the
              "seller/servicer." On the Reconstitution Date, the Mortgage Loans transferred
              may cease to be serviced by the Company pursuant to this Agreement;
              provided,
              however, that, in the event that any Mortgage Loan transferred pursuant
              to this
              Section 9.01 is rejected by the transferee, the Company shall continue
              to
              service such rejected Mortgage Loan on behalf of the Purchaser in accordance
              with the terms and provisions of this Agreement.

            

            The
              Company shall cooperate with the Purchaser in connection with each
              Agency Sale,
              Whole Loan Transfer or Securitization Transaction in accordance with
              this
              Section 9.01. In connection therewith:

            

            
              	 	
                      (a)

                    	
                      the
                        Company shall make all representations and warranties made
                        herein with
                        respect to the Mortgage Loans as of the Closing Date and
                        all
                        representations and warranties made herein with respect to
                        the Company
                        itself as of the closing date of each Agency Sale, Whole
                        Loan Transfer or
                        Securitization Transaction;

                    

            

            

            
              	 	
                      (b)

                    	
                      the
                        Company shall execute an Assignment, Assumptions and Recognition
                        Agreement
                        or at the option of the Purchaser, negotiate in good faith
                        and execute any
                        seller/servicer agreements to effectuate the foregoing provided
                        such
                        agreements create no greater obligation or cost on the part
                        of the Company
                        than otherwise set forth in this
                        Agreement;

                    

            

            

            
              	 	
                      (c)

                    	
                      the
                        Company shall provide such additional representations, warranties,
                        covenants or opinions of counsel as are reasonably believed
                        necessary by
                        the trustee, any rating agency or the Purchaser, as the case
                        may be, in
                        connection with such Whole Loan Transfers, Agency Sales or
                        Securitization
                        Transactions. The Purchaser shall pay all third party costs
                        associated
                        with the preparation of such information. The Company shall
                        execute any
                        seller/servicer agreements required within a reasonable period
                        of time
                        after receipt of such seller/servicer agreements which time
                        shall be
                        sufficient for the Company and Company’s counsel to review such
                        seller/servicer agreements. Under this Agreement, the Company
                        shall retain
                        a Servicing Fee for each Mortgage Loan at the Servicing Fee
                        Rate;
                        

                    

            

            

            
              	 	
                      (d)

                    	
                      in
                        connection with any Securitization Transaction, the Company
                        shall (1)
                        within five (5) Business Days following request by the Purchaser
                        or any
                        Depositor, provide to the Purchaser and such Depositor (or,
                        as applicable,
                        cause each Third-Party Originator and each Subservicer to
                        provide), in
                        writing and in form and substance reasonably satisfactory
                        to the Purchaser
                        and such Depositor, the information and materials specified
                        in paragraphs
                        (i), (ii), (iii) and (vii) of this subsection (d), and (2)
                        as promptly as
                        practicable following notice to or discovery by the Company,
                        provide to
                        the Purchaser and any Depositor (in writing and in form and
                        substance
                        reasonably satisfactory to the Purchaser and such Depositor)
                        the
                        information specified in paragraph (iv) of this subsection
                        (d).

                    

            

            

            
              	 	
                      (i)

                    	
                      If
                        so requested by the Purchaser or any Depositor, the Company
                        shall provide
                        such information regarding (1) the Company, as originator
                        of the Mortgage
                        Loans (including as an acquirer of Mortgage Loans from a
                        Qualified
                        Correspondent), or (2) each Third-Party Originator, and (3)
                        as applicable,
                        each Subservicer, as is requested for the purpose of compliance
                        with Items
                        1103(a)(1), 1105, 1110, 1117 and 1119 of Regulation AB. Such
                        information
                        shall include, at a minimum:

                    

            

            

            
              	 	
                      (A)

                    	
                      the
                        originator’s form of organization;

                    

            

            

            
              	 	
                      (B)

                    	
                      a
                        description of the originator’s origination program and how long the
                        originator has been engaged in originating residential mortgage
                        loans,
                        which description shall include a discussion of the originator’s
                        experience in originating mortgage loans of a similar type
                        as the Mortgage
                        Loans; information regarding the size and composition of
                        the originator’s
                        origination portfolio; and information that may be material,
                        in the good
                        faith judgment of the Purchaser or any Depositor, to an analysis
                        of the
                        performance of the Mortgage Loans, including the originators’
                        credit-granting or underwriting criteria for mortgage loans
                        of similar
                        type(s) as the Mortgage Loans and such other information
                        as the Purchaser
                        or any Depositor may reasonably request for the purpose of
                        compliance with
                        Item 1110(b)(2) of Regulation AB;

                    

            

            

            
              	 	
                      (C)

                    	
                      a
                        description of any material legal or governmental proceedings
                        pending (or
                        known to be contemplated) against the Company, each Third-Party
                        Originator
                        and each Subservicer; and

                    

            

            

            
              	 	
                      (D)

                    	
                      a
                        description of any affiliation or relationship (of a type
                        described in
                        Item 1119 of Regulation AB) between the Company, each Third-Party
                        Originator, each Subservicer and any of the following parties
                        to a
                        Securitization Transaction, as such parties are identified
                        to the Company
                        by the Purchaser or any Depositor in writing in advance of
                        a
                        Securitization Transaction:

                    

            

            

            
              	 	
                      (1)

                    	
                      the
                        sponsor;

                    

            

            (2)         
               the
              depositor;

            (3)         
               the
              issuing entity;

            (4)         
               any
              servicer;

            (5)         
               any
              trustee;

            (6)         
               any
              originator;

            (7)         
               any
              significant obligor;

            (8)         
               any
              enhancement or support provider; and

            (9)         
               any
              other
              material transaction party.

            

            
              	 	
                      (ii)

                    	
                      If
                        so requested by the Purchaser or any Depositor, the Company
                        shall provide
                        (or, as applicable, cause each Third-Party Originator to
                        provide) Static
                        Pool Information with respect to the mortgage loans (of a
                        similar type as
                        the Mortgage Loans, as reasonably identified by the Purchaser
                        as provided
                        below) originated by (1) the Company, if the Company is an
                        originator of
                        Mortgage Loans (including as an acquirer of Mortgage Loans
                        from a
                        Qualified Correspondent), and/or (2) each Third-Party Originator.
                        Such
                        Static Pool Information shall be prepared by the Company
                        (or Third-Party
                        Originator) on the basis of its reasonable, good faith interpretation
                        of
                        the requirements of Item 1105(a)(1)-(3) of Regulation AB.
                        To the extent
                        that there is reasonably available to the Company (or Third-Party
                        Originator) Static Pool Information with respect to more
                        than one mortgage
                        loan type, the Purchaser or any Depositor shall be entitled
                        to specify
                        whether some or all of such information shall be provided
                        pursuant to this
                        paragraph. The content of such Static Pool Information may
                        be in the form
                        customarily provided by the Company, and need not be customized
                        for the
                        Purchaser or any Depositor. Such Static Pool Information
                        for each vintage
                        origination year or prior securitized pool, as applicable,
                        shall be
                        presented in increments no less frequently than quarterly
                        over the life of
                        the mortgage loans included in the vintage origination year
                        or prior
                        securitized pool. The most recent periodic increment must
                        be as of a date
                        no later than 135 days prior to the date of the prospectus
                        or other
                        offering document in which the Static Pool Information is
                        to be included
                        or incorporated by reference. The Static Pool Information
                        shall be
                        provided in an electronic format that provides a permanent
                        record of the
                        information provided, such as a portable document format
                        (pdf) file, or
                        other such electronic format reasonably required by the Purchaser
                        or the
                        Depositor, as applicable.

                    

            

            

            Promptly
              following notice or discovery of a material error in Static Pool Information
              provided pursuant to the immediately preceding paragraph (including
              an omission
              to include therein information required to be provided pursuant to
              such
              paragraph), the Company shall provide corrected Static Pool Information
              to the
              Purchaser or any Depositor, as applicable, in the same format in which
              Static
              Pool Information was previously provided to such party by the
              Company.

            

            If
              so
              requested by the Purchaser or any Depositor, the Company shall provide
              (or, as
              applicable, cause each Third-Party Originator to provide), at the expense
              of the
              requesting party (to the extent of any additional incremental expense
              associated
              with delivery pursuant to this Agreement), such agreed-upon procedures
              letters
              of certified public accountants reasonably acceptable to the Purchaser
              or
              Depositor, as applicable, pertaining to Static Pool Information relating
              to
              prior securitized pools for securitizations closed on or after January
              1, 2006
              or, in the case of Static Pool Information with respect to the Company’s or
              Third-Party Originator’s originations or purchases, to calendar months
              commencing January 1, 2006, as the Purchaser or such Depositor shall
              reasonably
              request. Such letters shall be addressed to and be for the benefit
              of such
              parties as the Purchaser or such Depositor shall designate, which may
              include,
              by way of example, any sponsor, any Depositor and any broker dealer
              acting as
              underwriter, placement agent or initial purchaser with respect to a
              Securitization Transaction. Any such statement or letter may take the
              form of a
              standard, generally applicable document accompanied by a reliance letter
              authorizing reliance by the addressees designated by the Purchaser
              or such
              Depositor.

            

            
              	 	
                      (iii)

                    	
                      If
                        so requested by the Purchaser or any Depositor, the Company
                        shall provide
                        such information regarding the Company, as servicer of the
                        Mortgage Loans,
                        and each Subservicer (each of the Company and each Subservicer,
                        for
                        purposes of this paragraph, a “Servicer”), as is requested for the purpose
                        of compliance with Items 1108, 1117 and 1119 of Regulation
                        AB. Such
                        information shall include, at a
                        minimum:

                    

            

            

            
              	 	
                      (A)

                    	
                      the
                        Servicer’s form of organization;

                    

            

            

            
              	 	
                      (B)

                    	
                      a
                        description of how long the Servicer has been servicing residential
                        mortgage loans; a general discussion of the Servicer’s experience in
                        servicing assets of any type as well as a more detailed discussion
                        of the
                        Servicer’s experience in, and procedures for, the servicing function
                        it
                        will perform under this Agreement and any Reconstitution
                        Agreements;
                        information regarding the size, composition and growth of
                        the Servicer’s
                        portfolio of residential mortgage loans of a type similar
                        to the Mortgage
                        Loans and information on factors related to the Servicer
                        that may be
                        material, in the good faith judgment of the Purchaser or
                        any Depositor, to
                        any analysis of the servicing of the Mortgage Loans or the
                        related
                        asset-backed securities, as applicable, including, without
                        limitation:
                        

                    

            

            

            
              	 	
                      (1)

                    	
                      whether
                        any prior securitizations of mortgage loans of a type similar
                        to the
                        Mortgage Loans involving the Servicer have defaulted or experienced
                        an
                        early amortization or other performance triggering event
                        because of
                        servicing during the three-year period immediately preceding
                        the related
                        Securitization Transaction;

                    

            

            

            
              	 	
                      (2)

                    	
                      the
                        extent of outsourcing the Servicer
                        utilizes;

                    

            

            

            
              	 	
                      (3)

                    	
                      whether
                        there has been previous disclosure of material noncompliance
                        with the
                        applicable Servicing Criteria with respect to other securitizations
                        of
                        residential mortgage loans involving the Servicer as a servicer
                        during the
                        three-year period immediately preceding the related Securitization
                        Transaction;

                    

            

            

            
              	 	
                      (4)

                    	
                      whether
                        the Servicer has been terminated as servicer in a residential
                        mortgage
                        loan securitization, either due to a servicing default or
                        to application
                        of a servicing performance test or trigger; and

                    

            

            

            
              	 	
                      (5)

                    	
                      such
                        other information as the Purchaser or any Depositor may reasonably
                        request
                        for the purpose of compliance with Item 1108(b)(2) of Regulation
                        AB;

                    

            

            

            
              	 	
                      (C)

                    	
                      a
                        description of any material changes during the three-year
                        period
                        immediately preceding the related Securitization Transaction
                        to the
                        Servicer’s policies or procedures with respect to the servicing function
                        it will perform under this Agreement and any Reconstitution
                        Agreements for
                        mortgage loans of a type similar to the Mortgage
                        Loans;

                    

            

            

            
              	 	
                      (D)

                    	
                      information
                        regarding the Servicer’s financial condition, to the extent that there is
                        a material risk that an adverse financial event or circumstance
                        involving
                        the Servicer could have a material adverse effect on the
                        performance by
                        the Company of its servicing obligations under this Agreement
                        or any
                        Reconstitution Agreement;

                    

            

            

            
              	 	
                      (E)

                    	
                      information
                        regarding advances made by the Servicer on the Mortgage Loans
                        and the
                        Servicer’s overall servicing portfolio of residential mortgage loans
                        for
                        the three-year period immediately preceding the related Securitization
                        Transaction, which may be limited to a statement by an authorized
                        officer
                        of the Servicer to the effect that the Servicer has made
                        all advances
                        required to be made on residential mortgage loans serviced
                        by it during
                        such period, or, if such statement would not be accurate,
                        information
                        regarding the percentage and type of advances not made as
                        required, and
                        the reasons for such failure to
                        advance;

                    

            

            

            
              	 	
                      (F)

                    	
                      a
                        description of the Servicer’s processes and procedures designed to address
                        any special or unique factors involved in servicing loans
                        of a similar
                        type as the Mortgage Loans;

                    

            

            

            
              	 	
                      (G)

                    	
                      a
                        description of the Servicer’s processes for handling delinquencies,
                        losses, bankruptcies and recoveries, such as through liquidation
                        of
                        mortgaged properties, sale of defaulted mortgage loans or
                        workouts;
                        

                    

            

            

            
              	 	
                      (H)

                    	
                      information
                        as to how the Servicer defines or determines delinquencies
                        and
                        charge-offs, including the effect of any grace period, re-aging,
                        restructuring, partial payments considered current or other
                        practices with
                        respect to delinquency and loss
                        experience;

                    

            

            

            
              	 	
                      (I)

                    	
                      a
                        description of any material legal or governmental proceedings
                        pending (or
                        known to be contemplated) against the Servicer;
                        and

                    

            

            

            
              	 	
                      (J)

                    	
                      a
                        description of any affiliation or relationship between the
                        Servicer and
                        any of the following parties to a Securitization Transaction,
                        as such
                        parties are identified to the Servicer by the Purchaser or
                        any Depositor
                        in writing in advance of a Securitization
                        Transaction:

                    

            

            

            
              	 	
                      (1)

                    	
                      the
                        sponsor;

                    

            

            (2)         
               the
              depositor;

            (3)         
               the
              issuing entity;

            (4)         
               any
              servicer;

            (5)         
               any
              trustee;

            (6)         
               any
              originator;

            (7)         
               any
              significant obligor;

            (8)         
               any
              enhancement or support provider; and

            (9)         
               any
              other
              material transaction party.

            

            
              	 	
                      (iv)

                    	
                      For
                        the purpose of satisfying the reporting obligation under
                        the Exchange Act
                        with respect to any class of asset-backed securities, the
                        Company shall
                        (or shall cause each Subservicer and Third-Party Originator
                        to) (1)
                        provide prompt notice to the Purchaser, any Master Servicer
                        and any
                        Depositor in writing of (A) any material litigation or governmental
                        proceedings involving the Company, any Subservicer or any
                        Third-Party
                        Originator and (B) any affiliations or relationships that
                        develop
                        following the closing date of a Securitization Transaction
                        between the
                        Company, any Subservicer or any Third-Party Originator and
                        any of the
                        parties specified in Section 9.01(d)(i)(D) (and any other
                        parties
                        identified in writing by the requesting party) with respect
                        to such
                        Securitization Transaction, (C) any Event of Default under
                        the terms of
                        this Agreement or any Reconstitution Agreement, (D) any merger,
                        consolidation or sale of substantially all of the assets
                        of the Company,
                        and (E) the Company’s entry into an agreement with a Subservicer to
                        perform or assist in the performance of any of the Company’s obligations
                        under this Agreement or any Reconstitution Agreement and
                        (2) provide to
                        the Purchaser and any Depositor a description of such proceedings,
                        affiliations or relationships.

                    

            

            

            
              	 	
                      (v)

                    	
                      As
                        a condition to the succession to the Company or any Subservicer
                        as
                        servicer or Subservicer under this Agreement or any Reconstitution
                        Agreement by any Person (i) into which the Company or such
                        Subservicer may
                        be merged or consolidated, or (ii) which may be appointed
                        as a successor
                        to the Company or any Subservicer, the Company shall provide
                        to the
                        Purchaser and any Depositor, at least fifteen (15) calendar
                        days prior to
                        the effective date of such succession or appointment, (x)
                        written notice
                        to the Purchaser and any Depositor of such succession or
                        appointment and
                        (y) in writing and in form and substance reasonably satisfactory
                        to the
                        Purchaser and such Depositor, all information reasonably
                        requested by the
                        Purchaser or any Depositor in order to comply with is reporting
                        obligation
                        under Item 6.02 of Form 8-K with respect to any class of
                        asset-backed
                        securities.

                    

            

            

            (vi) (A) The
              Company shall be deemed to represent to the Purchaser, any Master Servicer
              and
              to any Depositor, as of the date on which information is first provided
              to the
              Purchaser under this Section 9.01(d) that, except as disclosed in writing
              to the
              Purchaser, such Master Servicer or such Depositor prior to such date:
              (1) the
              Company is not aware and has not received notice that any default,
              early
              amortization or other performance triggering event has occurred as
              to any other
              securitization due to any act or failure to act of the Company; (2)
              the Company
              has not been terminated as servicer in a residential mortgage loan
              securitization, either due to a servicing default or to application
              of a
              servicing performance test or trigger; (3) no material noncompliance
              with the
              applicable Servicing Criteria with respect to other securitizations
              of
              residential mortgage loans involving the Company as servicer has been
              disclosed
              or reported by the Company; (4) no material changes to the Company’s policies or
              procedures with respect to the servicing function it will perform under
              this
              Agreement and any Reconstitution Agreement for mortgage loans of a
              type similar
              to the Mortgage Loans have occurred during the three-year period immediately
              preceding the related Securitization Transaction; (5) there are no
              aspects of
              the Company’s financial condition that could have a material adverse effect on
              the performance by the Company of its servicing obligations under this
              Agreement
              or any Reconstitution Agreement; (6) there are no material legal or
              governmental
              proceedings pending (or known to be contemplated) against the Company,
              any
              Subservicer or any Third-Party Originator; and (7) there are no affiliations,
              relationships or transactions relating to the Company, any Subservicer
              or any
              Third-Party Originator with respect to any Securitization Transaction
              and any
              party thereto identified by the related Depositor of a type described
              in Item
              1119 of Regulation AB.

            

            (B) If
              so
              requested by the Purchaser, any Master Servicer or any Depositor on
              any date
              following the date on which information is first provided to the Purchaser,
              any
              Master Servicer or any Depositor under this Section 9.01(d), the Company
              shall,
              within five (5) Business Days following such request, confirm in writing
              the
              accuracy of the representations and warranties set forth in sub clause
              (A) above
              or, if any such representation and warranty is not accurate as of the
              date of
              such request, provide reasonably adequate disclosure of the pertinent
              facts, in
              writing, to the requesting party.

            

            
              	 	
                      (vii)

                    	
                      In
                        addition to such information as the Company, as servicer,
                        is obligated to
                        provide pursuant to other provisions of this Agreement, not
                        later than ten
                        (10) days prior to the deadline for the filing of any distribution
                        report
                        on Form 10-D in respect of any Securitization Transaction
                        that includes
                        any of the Mortgage Loans serviced by the Company or any
                        Subserservicer,
                        the Company or such Subservicer, as applicable, shall, to
                        the extent the Company or such Subservicer has knowledge
                        thereof,
                        provide
                        to
                        the party responsible for filing such report (including,
                        if applicable,
                        the Master Servicer) 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
              (Item 1121(a)(12) of Regulation AB); and

            

            (C) information
              regarding new asset-backed securities issuances backed by the same
              pool assets,
              any pool asset changes (such as, additions, substitutions or repurchases),
              and
              any material changes in origination, underwriting or other criteria
              for
              acquisition or selection of pool assets (Item 1121(a)(14) of Regulation
              AB).

            

            
              	 	
                      (viii)

                    	
                      The
                        Company shall provide to the Purchaser, any Master Servicer
                        and any
                        Depositor, evidence of the authorization of the person signing
                        any
                        certification or statement, copies or other evidence of Fidelity
                        Bond
                        Insurance and Errors and Omission Insurance policy, financial
                        information
                        and reports, and such other information related to the Company
                        or any
                        Subservicer or the Company or such Subservicer’s performance
                        hereunder.

                    

            

            

            
              	 	
                      (e)

                    	
                      The
                        Company shall indemnify the Purchaser, each affiliate of
                        the Purchaser,
                        and each of the following parties participating in a Securitization
                        Transaction: each sponsor and issuing entity; each Person
                        (including, but
                        not limited to any Master Servicer, if applicable) responsible
                        for the
                        preparation, execution or filing of any report required to
                        be filed with
                        the Commission with respect to such Securitization Transaction,
                        or for
                        execution of a certification pursuant to Rule 13a-14(d) or
                        Rule 15d-14(d)
                        under the Exchange Act with respect to such Securitization
                        Transaction;
                        each broker dealer acting as underwriter, placement agent
                        or initial
                        purchaser, each Person who controls any of such parties or
                        the Depositor
                        (within the meaning of Section 15 of the Securities Act and
                        Section 20 of
                        the Exchange Act); and the respective present and former
                        directors,
                        officers, employees, affiliates and agents of each of the
                        foregoing and of
                        the Depositor (each, an “Indemnified Party”), and shall hold each of them
                        harmless from and against any claims, losses, damages, penalties,
                        fines,
                        forfeitures, legal fees and expenses and related costs, judgments,
                        and any
                        other costs, fees and expenses that any of them may sustain
                        arising out of
                        or based upon:

                    

            

            

            (i) (A)  
               any
              untrue statement of a material fact contained or alleged to be contained
              in any
              information, report, certification, data, accountants’ letter or other material
              provided in written or electronic form under Sections 4.25, 6.04, 6.06,
              9.01(c)
              and (d) by or on behalf of the Company, or provided under Sections
              4.25, 6.04,
              6.06, 9.01(c) and (d) by or on behalf of any Subservicer, Subcontractor
              or
              Third-Party Originator (collectively, the “Company Information”), or (B) the
              omission or alleged omission to state in the Company Information a
              material fact
              required to be stated in the Company Information or necessary in order
              to make
              the statements therein, in the light of the circumstances under which
              they were
              made, not misleading; provided,
              by way of clarification, that
              clause (B) of this paragraph shall be construed solely by reference
              to the
              Company Information and not to any other information communicated in
              connection
              with a sale or purchase of securities, without regard to whether the
              Company
              Information or any portion thereof is presented together with or separately
              from
              such other information;

            

            
              	(ii)  	
                      any
                        breach by the Company of its obligations under this Section
                        9.01(e),
                        including particularly any failure by the Company, any Subservicer,
                        any
                        Subcontractor or any Third-Party Originator to deliver any
                        information,
                        report, certification, accountants’ letter or other material when and as
                        required under Sections 4.25, 6.04, 6.06, 9.01(c) and (d),
                        including any
                        failure by the Company to identify any Subcontractor “participating in the
                        servicing function” within the meaning of Item 1122 of Regulation AB;
                        or

                    

            

            

            
              	(iii)  	
                      any
                        breach by the Company of a representation or warranty set
                        forth in Section
                        9.01(d)(vi)(A) or in a writing furnished pursuant to Section
                        9.01(d)(vi)(B) and made as of a date prior to the closing
                        date of the
                        related Securitization Transaction, to the extent that such
                        breach is not
                        cured by such closing date, or any breach by the Company
                        of a
                        representation or warranty in a writing furnished pursuant
                        to Section
                        9.01(d)(vi)(B) to the extent made as of a date subsequent
                        to such closing
                        date; or

                    

            

            

            
              	 	
                      (iv)

                    	
                      the
                        negligence, bad faith or willful misconduct of the Company
                        in connection
                        with its performance under this Section 9.01(e).
                        

                    

            

            

            If
              the
              indemnification provided for herein is unavailable or insufficient
              to hold
              harmless an Indemnified Party, then the Company agrees that it shall
              contribute
              to the amount paid or payable by such Indemnified Party as a result
              of any
              claims, losses, damages or liabilities incurred by such Indemnified
              Party in
              such proportion as is appropriate to reflect the relative fault of
              such
              Indemnified Party on the one hand and the Company on the other.

            

            In
              the
              case of any failure of performance described in sub-clause (ii) of
              this Section
              9.01(e), the Company shall promptly reimburse the Purchaser, any Depositor,
              as
              applicable, and each Person responsible for the preparation, execution
              or filing
              of any report required to be filed with the Commission with respect
              to such
              Securitization Transaction, or for execution of a certification pursuant
              to Rule
              13a-14(d) or Rule 15d-14(d) under the Exchange Act with respect to
              such
              Securitization Transaction, for all costs reasonably incurred by each
              such party
              in order to obtain the information, report, certification, accountants’ letter
              or other material not delivered as required by the Company, any Subservicer,
              any
              Subcontractor or any Third-Party Originator. 

            

            This
              indemnification shall survive the termination of this Agreement or
              the
              termination of any party to this Agreement.

            

            
              	 	
                      (f)

                    	
                      The
                        Purchaser and a credit-worthy parent of the Purchaser, reasonably
                        acceptable to the Company shall
                        indemnify the Company, each affiliate of the Company, each
                        Person who
                        controls any of such parties or the Company (within the meaning
                        of Section
                        15 of the Securities Act and Section 20 of the Exchange Act)
                        and the
                        respective present and former directors, officers, employees
                        and agents of
                        each of the foregoing and of the Company, and shall hold
                        each of them
                        harmless from and against any losses, damages, penalties,
                        fines,
                        forfeitures, legal fees and expenses and related costs, judgments,
                        and any
                        other costs, fees and expenses that any of them may sustain
                        arising out of
                        or based upon:

                    

            

            

            
              	 	
                      (i)

                    	
                      any
                        untrue statement of a material fact contained or alleged
                        to be contained
                        in any offering materials related to a Securitization Transaction,
                        including without limitation the registration statement,
                        prospectus,
                        prospectus supplement, any private placement memorandum,
                        any freewriting
                        prospectuses, any ABS informational and computational material,
                        any
                        offering circular, any computational material, and any amendments
                        or
                        supplements to the foregoing (collectively, the “Securitization
                        Materials”) or 

                    

            

            

            
              	(ii)  	
                      the
                        omission or alleged omission to state in the Securitization
                        Materials a
                        material fact required to be stated in the Securitization
                        Materials or
                        necessary in order to make the statements therein, in the
                        light of the
                        circumstances under which they were made, not misleading,
                        but only to the
                        extent that such untrue statement or alleged untrue statement
                        or omission
                        or alleged omission is other than a statement or omission
                        arising out of,
                        resulting from, or based upon the Company
                        Information.

                    

            

            

            This
              indemnification shall survive the termination of this Agreement or
              the
              termination of any party to this Agreement.

            

            The
              Purchaser and the Company acknowledge and agree that the purpose of
              Section
              9.01(d) is to facilitate compliance by the Purchaser and any Depositor
              with the
              provisions of Regulation AB and related rules and regulations of the
              Commission.
              Although Regulation AB is applicable by its terms only to offerings
              of
              asset-backed securities that are registered under the Securities Act,
              the
              Company acknowledges that investors in privately offered securities
              may require
              that the Purchaser or any Depositor provide comparable disclosure in
              unregistered offerings. References in this Agreement to compliance
              with
              Regulation AB include provision of comparable disclosure in private
              offerings.

            

            Neither
              the Purchaser nor any Depositor shall exercise its right to request
              delivery of
              information or other performance under these provisions other than
              in good
              faith, or for purposes other than compliance with the Securities Act,
              the
              Exchange Act and the rules and regulations of the Commission thereunder
              (or
              provision in a private offering of disclosure comparable to that required
              under
              the Securities Act). The Company acknowledges that interpretations
              of the
              requirements of Regulation AB may change over time, whether due to
              interpretive
              guidance provided by the Commission or its staff, consensus among participants
              in the asset-backed securities markets, advice of counsel, or otherwise,
              and
              agrees to comply with requests made by the Purchaser, any Master Servicer
              or any
              Depositor in good faith for delivery of information under these provisions
              on
              the basis of evolving interpretations of Regulation AB. In connection
              with any
              Securitization Transaction, the Company shall cooperate fully with
              the Purchaser
              and any Master Servicer to deliver to the Purchaser (including any
              of its
              assignees or designees), any Master Servicer and any Depositor, any
              and all
              statements, reports, certifications, records and any other information
              necessary
              in the good faith determination of the Purchaser, the Master Servicer
              or any
              Depositor to permit the Purchaser, such Master Servicer or such Depositor
              to
              comply with the provisions of Regulation AB, together with such disclosures
              relating to the Company, any Subservicer, any Third-Party Originator
              and the
              Mortgage Loans, or the servicing of the Mortgage Loans, reasonably
              believed by
              the Purchaser or any Depositor to be necessary in order to effect such
              compliance.

            

            The
              Purchaser (including any of its assignees or designees) shall cooperate
              with the
              Company by providing timely notice of requests for information under
              these
              provisions and by reasonably limiting such requests to information
              required, in
              the Purchaser’s reasonable judgment, to comply with Regulation AB.

            

            In
              the
              event the Purchaser has elected to have the Company hold record title
              to the
              Mortgages, prior to the Reconstitution Date the Company shall prepare
              an
              Assignment of Mortgage in blank or to the trustee from the Company
              acceptable to
              the trustee for each Mortgage Loan that is part of the Whole Loan Transfers,
              Agency Sales or Securitization Transactions. The Company shall execute
              each
              Assignment of Mortgage, track such Assignments of Mortgage to ensure
              they have
              been recorded and deliver them as required by the trustee upon the
              Company's
              receipt thereof. Additionally, the Company shall prepare and execute,
              at the
              direction of the Purchaser, any note endorsements in connection with
              any and all
              seller/servicer agreements.

            

            All
              Mortgage Loans (i) not sold or transferred pursuant to Whole Loan Transfers,
              Agency Sales or Securitization Transactions or (ii) that are subject
              to a
              Securitization Transaction for which the related trust is terminated
              for any
              reason, shall remain 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
              X

             

            DEFAULT

            

            Section
              10.01 Events
              of Default.

            

            Each
              of
              the following shall constitute an Event of Default on the part of the
              Company:

            

            
              	 	
                      (i)

                    	
                      any
                        failure by the Company 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 Company by the Purchaser; or

                    

            

            

            
              	 	
                      (ii)

                    	
                      failure
                        by the Company duly to observe or perform in any material
                        respect any
                        other of the covenants or agreements on the part of the Company
                        set forth
                        in this Agreement or in the Custodial Agreement 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 Company by the Purchaser or by the Custodian;
                        or

                    

            

            

            
              	 	
                      (iii)

                    	
                      failure
                        by the Company to maintain its license to do business and
                        service
                        residential mortgage loans in any jurisdiction where the
                        Mortgaged
                        Property is located if such license is required;
                        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, readjustment of debt, including
                        bankruptcy,
                        marshaling of assets and liabilities or similar proceedings,
                        or for the
                        winding-up or liquidation of its affairs, shall have been
                        entered against
                        the Company and such decree or order shall have remained
                        in force
                        undischarged or unstayed for a period of sixty (60) days;
                        or

                    

            

            

            
              	 	
                      (v)

                    	
                      the
                        Company shall consent to the appointment of a conservator
                        or receiver or
                        liquidator in any insolvency, readjustment of debt, marshaling
                        of assets
                        and liabilities or similar proceedings of or relating to
                        the Company or of
                        or relating to all or substantially all of its property;
                        or

                    

            

            

            
              	 	
                      (vi)

                    	
                      the
                        Company 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, bankruptcy or reorganization statute, make an
                        assignment for
                        the benefit of its creditors, voluntarily suspend payment
                        of its
                        obligations or cease its normal business operations for three
                        Business
                        Days; or 

                    

            

            

            
              	 	
                      (vii)

                    	
                      the
                        Company ceases to meet the qualifications of a Fannie Mae/Freddie
                        Mac
                        servicer; or

                    

            

            

            
              	 	
                      (viii)

                    	
                      the
                        Company attempts to assign its right to servicing compensation
                        hereunder
                        or to assign this Agreement or the servicing responsibilities
                        hereunder or
                        to delegate its duties hereunder or any portion thereof in
                        violation of
                        Section 8.04; or

                    

            

            

            
              	 	
                      (ix)

                    	
                      the
                        Company, if it is an Insured Depository Institution, shall
                        become the
                        subject of a cease and desist order of the Appropriate Federal
                        Banking
                        Agency or enter into a memorandum of understanding, consent
                        agreement or
                        any similar agreement with the Appropriate Federal Banking
                        Agency, any of
                        which would have, or is purportedly the result of, any condition
                        which
                        would have a material adverse effect on the Company’s ability to service
                        the Mortgage Loans as provided in this Agreement; or

                    

            

            

            
              	(x)  	
                      failure
                        by the Company to duly perform, within the required time
                        period, its
                        obligations under Section 6.04 or 6.06 of this Agreement,
                        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 Company by any party to this
                        Agreement or by
                        any Master Servicer responsible for master servicing the
                        Mortgage Loans
                        pursuant to a Securitization Transaction;
                        or

                    

            

            

            
              	(xi)  	
                      an
                        Event of Default as set forth in Section
                        6.07.

                    

            

            

            If
              the
              Company obtains knowledge of an Event of Default, the Company shall
              promptly
              notify the Purchaser. In each and every such case, so long as an Event
              of
              Default shall not have been remedied, in addition to whatever rights
              the
              Purchaser may have at law or equity to damages, including injunctive
              relief and
              specific performance, the Purchaser, by notice in writing to the Company,
              may
              terminate all the rights and obligations of the Company under this
              Agreement and
              in and to the Mortgage Loans and the proceeds thereof.

            

            Upon
              receipt by the Company of such written notice, all authority and power
              of the
              Company 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 any Purchaser, the Company
              shall
              prepare, execute and deliver to the successor entity designated by
              the Purchaser
              any and all documents and other instruments, place in such successor's
              possession all Mortgage Files, and do or cause to be done all other
              acts or
              things necessary or appropriate to effect the purposes of such notice
              of
              termination, including but not limited to the transfer and endorsement
              or
              assignment of the Mortgage Loans and related documents, at the Company's
              sole
              expense. The Company shall cooperate with the Purchaser and such successor
              in
              effecting the termination of the Company'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 Company to the Custodial Account or Escrow Account or thereafter
              received
              with respect to the Mortgage Loans.

            

            Section
              10.02 Waiver
              of Defaults.

            

            By
              a
              written notice, the Purchaser may waive any default by the Company
              in the
              performance of its obligations hereunder and its consequences. Upon
              any 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.

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            ARTICLE
              XI

             

            TERMINATION

            

            Section
              11.01 Termination.

            

            This
              Agreement shall terminate upon either: (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 any REO Property with respect to the last
              Mortgage
              Loan and the remittance of all funds due hereunder; or (ii) mutual
              consent of
              the Company and the Purchaser in writing. The representations and warranties
              contained herein shall survive the termination of this Agreement.

            

            Section
              11.02 Termination
              Without Cause.

            

            The
              Purchaser may terminate, at its sole option, any rights the Company
              may have
              hereunder, without cause as provided in this Section 11.02. Any such
              notice of
              termination shall be in writing and delivered to the Company by registered
              mail
              as provided in Section 12.05.

            

            The
              Company shall be entitled to receive, as such liquidated damages, upon
              the
              transfer of the servicing rights, an amount equal to 2.00% of the aggregate
              outstanding principal amount of the Mortgage Loans as of the termination
              date,
              plus all costs and expenses incurred by the Company in managing the
              transfer of
              the servicing, paid by the Purchaser to the Company with respect to
              all of the
              Mortgage Loans for which the servicing rights are terminated pursuant
              to this
              Section 11.02.

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

             

            ARTICLE
              XII

             

            MISCELLANEOUS
              PROVISIONS

            

            Section
              12.01 Successor
              to Company.

            

            Prior
              to
              termination of the Company's responsibilities and duties under this
              Agreement
              pursuant to Sections 8.04, 10.01, 11.01 (ii) or pursuant to Section
              11.02 the
              Purchaser shall, (i) succeed to and assume all of the Company's
              responsibilities, rights, duties and obligations under this Agreement,
              or (ii)
              appoint a successor having the characteristics set forth in Section
              8.02 and
              which shall succeed to all rights and assume all of the responsibilities,
              duties
              and liabilities of the Company under this Agreement prior to the termination
              of
              Company's responsibilities, duties and liabilities under this Agreement
              arising
              from and after such termination. 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 it and such successor
              shall
              agree. In the event that the Company's duties, responsibilities and
              liabilities
              under this Agreement should be terminated pursuant to the aforementioned
              sections, the Company 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 Company pursuant to
              the
              aforementioned sections shall not become effective until a successor
              shall be
              appointed pursuant to this Section 12.01 and shall in no event relieve
              the
              Company of the representations and warranties made pursuant to Sections
              3.01 and
              3.02 and the remedies available to the Purchaser under Sections 3.03
              and 8.01,
              it being understood and agreed that the provisions of such Sections
              3.01, 3.02,
              3.03 and 8.01 shall be applicable to the Company notwithstanding any
              such sale,
              assignment, resignation or termination of the Company, or the termination
              of
              this Agreement.

            

            Any
              successor appointed as provided herein shall execute, acknowledge and
              deliver to
              the Company and to the Purchaser an instrument accepting such appointment,
              wherein the successor shall make the representations and warranties
              set forth in
              Section 3.01, except for subsections (h) with respect to the sale of
              the
              Mortgage Loans and subsections (i) and (k) thereof, whereupon such
              successor
              shall become fully vested with all the rights, powers, duties, responsibilities,
              obligations and liabilities of the Company, with like effect as if
              originally
              named as a party to this Agreement. Any termination or resignation
              of the
              Company or termination of this Agreement pursuant to Section 8.04,
              10.01, 11.01
              or 11.02 shall not affect any claims that any Purchaser may have against
              the
              Company arising out of the Company's actions or failure to act prior
              to any such
              termination or resignation.

            

            The
              Company shall deliver promptly to the successor servicer the funds
              in the
              Custodial Account and Escrow Account and all Mortgage Files and related
              documents and statements held by it hereunder and the Company shall
              account for
              all funds and shall execute and deliver such instruments and do such
              other
              things as may reasonably be required to more fully and definitively
              vest in the
              successor all such rights, powers, duties, responsibilities, obligations
              and
              liabilities of the Company.

            

            Upon
              a
              successor's acceptance of appointment as such, the Company shall notify
              by mail
              the Purchaser of such appointment in accordance with the procedures
              set forth in
              Section 12.05.

            

            Section
              12.02 Amendment.

            

            This
              Agreement may be amended from time to time by written agreement signed
              by the
              Company and the Purchaser.

            

            Section
              12.03 Governing
              Law.

            

            This
              Agreement shall be construed in accordance with the laws of the State
              of New
              York and the obligations, rights and remedies of the parties hereunder
              shall be
              determined in accordance with such laws.

            

            Each
              of
              the Company and the Purchaser hereby knowingly, voluntarily and intentionally
              waives any and all rights it may have to a trial by jury in respect
              of any
              litigation based on, or arising out of, under, or in connection with,
              this
              Agreement, or any other documents and instruments executed in connection
              herewith, or any course of conduct, course of dealing, statements (whether
              oral
              or written), or actions of the Company or the Purchaser. This provision
              is a
              material inducement for the Purchaser to enter into this Agreement.

            

            Section
              12.04 Duration
              of Agreement.

            

            This
              Agreement shall continue in existence and effect until terminated as
              herein
              provided. This Agreement shall continue notwithstanding transfers of
              the
              Mortgage Loans by the Purchaser.

            

            Section
              12.05 Notices.

            

            All
              demands, notices and communications hereunder shall be in writing,
              may be in the
              form of facsimile or electronic transmission, and shall be deemed to
              have been
              duly given if personally delivered at or mailed by registered mail,
              postage
              prepaid or, if sent by facsimile or electronic mail, when facsimile
              or
              electronic confirmation of receipt by the recipient is received by
              the sender of
              such demand, notice or communication, addressed as follows:

            

            (i) if
              to the
              Company:

            

            Wells
              Fargo Bank, N.A.

            1
              Home
              Campus

            Des
              Moines, Iowa 50328-0001

            Attention:
              John B. Brown, MAC X2401-042

            Facsimile:
              (515) 213-7121

            

            if
              to the
              Company with respect to all other issues:

            

            Wells
              Fargo Bank, N.A.

            7430
              New
              Technology Way

            Frederick,
              Maryland 21703

            Attention:
              Structured Finance Manager, MAC X3906-012

            Facsimile:
              (301) 846-8152

            

            in
              each
              instance, with a copy to:

            

            Wells
              Fargo Bank, N.A.

            1
              Home
              Campus

            Des
              Moines, Iowa 50328-0001

            Attention:
              General Counsel, MAC X2401-06T

            Facsimile:
              (515) 213-5192

            

            or
              such
              other address as may hereafter be furnished to the Purchaser in writing
              by the
              Company;

            

            (ii) if
              to
              Purchaser:

            

            Nomura
              Credit & Capital, Inc.

            2
              World
              Financial Center

            Building
              B, 21st
              Floor

            New
              York,
              NY 10281

            Attention:
              Dante LaRocca, Managing Director

            Phone:
              212-667-9804

            

            with
              a
              copy to:

            

            Nomura
              Credit & Capital, Inc.

            2
              World
              Financial Center

            Building
              B, 18th
              Floor

            Attention:
              NCCI Legal

            Facsimile:
              (212) 667-1024

            

            

            Section
              12.06 Severability
              of Provisions.

            

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

            

            Section
              12.07 Relationship
              of Parties.

            

            Nothing
              herein contained shall be deemed or construed to create a partnership
              or joint
              venture between the parties hereto and the services of the Company
              shall be
              rendered as an independent contractor and not as agent for the
              Purchaser.

            

            Section
              12.08 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 8.04, this Agreement shall
              inure to
              the benefit of and be binding upon the Company and the Purchaser and
              their
              respective successors and assigns. The parties agree that this Agreement
              and
              signature pages thereof may be transmitted between them by facsimile
              and that
              faxed signatures may constitute original signatures and that a faxed
              signature
              page containing the signature (faxed or original) is binding on the
              parties.

            

            Section
              12.09 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
              at the
              Company's expense in the event recordation is either necessary under
              applicable
              law or requested by the Purchaser at its sole option.

            

            Section
              12.10 Assignment
              by Purchaser.

            

            The
              Purchaser shall have the right, without the consent of the Company
              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 L hereto, and the assignee
              or
              designee shall accede to the rights and obligations hereunder of the
              Purchaser
              with respect to such Mortgage Loans. All references to the Purchaser
              in this
              Agreement shall be deemed to include its assignee or designee.

            

            Section
              12.11 Solicitation
              of Mortgagor.

            

            Neither
              party shall, after the Closing Date, take any action to solicit the
              refinancing
              of any Mortgage Loan. It is understood and agreed that neither (i)
              promotions
              undertaken by either party or any affiliate of either party which are
              directed
              to the general public at large, including, without limitation, mass
              mailings
              based upon commercially acquired mailing lists, newspaper, radio, television
              advertisements nor (ii) serving the refinancing needs of a Mortgagor
              who,
              without solicitation, contacts either party in connection with the
              refinance of
              such Mortgage or Mortgage Loan, shall constitute solicitation under
              this
              Section. 

            

            Section
              12.12 Further
              Agreements.

            

            The
              Purchaser and the Company each agree to execute and deliver to the
              other such
              additional documents, instruments or agreements as may be necessary
              or
              appropriate to effectuate the purposes of this Agreement.

            

            Section
              12.13 Waivers.
               

            

            No
              term
              or provision of this 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.

            

            Section
              12.14 Third
              Party Beneficiary.

            

            For
              purposes of Sections 4.25, 6.04, 6.06 and 9.01(d) and any related provisions
              thereto, each Master Servicer shall be considered a third-party beneficiary
              of
              this Agreement, entitled to all the rights and benefits hereof as if
              it were a
              direct party to this Agreement.

            

            

            [Intentionally
              Blank - Next Page Signature Page]

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            IN
              WITNESS WHEREOF, the Company 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 & CAPTIAL, INC.

                    	 	
                      WELLS
                        FARGO BANK, N.A.

                    
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Purchaser

                    	 	 	 	
                      Company

                    	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      By:

                    	 	 	
                      By:

                    	 
	
                      Name:

                    	 	 	
                      Name:

                    	 
	
                      Title:

                    	 	 	
                      Title:

                    	 

            

            

            

            

            

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            

            
              	
                      STATE
                        OF_____________

                    	
                      )

                    	 
	 	
                      )

                    	
                      ss.:

                    
	
                      COUNTY
                        OF___________

                    	
                      )

                    	 

            

            

            On
              the
              _____ day of _______________, 20___ before me, a Notary Public in and
              for said
              State, personally appeared _________, known to me to be __________
              of Wells
              Fargo Bank, N.A., the national banking association that executed the
              within
              instrument and also known to me to be the person who executed it on
              behalf of
              said bank, and acknowledged to me that such bank executed the within
              instrument.

            

            IN
              WITNESS WHEREOF, I have hereunto set my hand affixed my office seal
              the day and
              year in this certificate first above written.

            

            

            
              	 	 
	 	
                      Notary
                        Public

                    

            

            

            My
              Commission expires __________________

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            

            
              	
                      STATE
                        OF_____________

                    	
                      )

                    	 
	 	
                      )

                    	
                      ss.:

                    
	
                      COUNTY
                        OF___________

                    	
                      )

                    	 

            

            

            On
              the
              _____ day of _______________, 20___ before me, a Notary Public in and
              for said
              State, personally appeared _____________________________________, known
              to me to
              be the ______________________________ of ______________________________,
              the
              corporation that executed the within instrument and also known to me
              to be the
              person who executed it on behalf of said corporation, and acknowledged
              to me
              that such corporation executed the within instrument.

            

            IN
              WITNESS WHEREOF, I have hereunto set my hand affixed my office seal
              the day and
              year in this certificate first above written.

            

            

            
              	 	 
	 	
                      Notary
                        Public

                    

            

            

            My
              Commission expires __________________

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            EXHIBIT
              A

            

            

            MORTGAGE
              LOAN SCHEDULE

            

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            EXHIBIT
              B

            

            DATA
              FILE
              ELEMENTS

            

            
              	 	
                      (1)

                    	
                      the
                        Company’s Mortgage Loan identifying
                        number;

                    

            

            

            
              	 	
                      (2)

                    	
                      the
                        street address of the Mortgaged Property including the city,
                        state, county
                        and zip code;

                    

            

            

            
              	 	
                      (3)

                    	
                      a
                        code indicating whether the Mortgaged Property is a single
                        family
                        residence, a 2-4 family dwelling, a PUD, a cooperative, a
                        townhouse,
                        manufactured housing or a unit in a condominium
                        project;

                    

            

            

            (4)         
               the
              Mortgage Interest Rate as of the Cut-off Date;

            

            (5)         
               the
              current Monthly Payment;

            

            (6)         
               loan
              term, number of months;

            

            (7)         
               the
              stated maturity date;

            

            
              	 	
                      (8)

                    	
                      the
                        Stated Principal Balance of the Mortgage Loan as of the close
                        of business
                        on the Cut-off Date, after deduction of payments of principal
                        due on or
                        before the Cut-off Date;

                    

            

            

            
              	 	
                      (9)

                    	
                      the
                        Loan-to-Value Ratio;

                    

            

            

            
              	 	
                      (10)

                    	
                      a
                        code indicating whether the Mortgage Loan is an Interest
                        Only Mortgage
                        Loan;

                    

            

            

            
              	 	
                      (11)

                    	
                      a
                        code indicating whether the Mortgage Loan is a temporary
                        buydown (Y or
                        N);

                    

            

            

            
              	 	
                      (12)

                    	
                      the
                        Servicing Fee Rate;

                    

            

            

            
              	 	
                      (13)

                    	
                      a
                        code indicating the mortgage insurance provider and percent
                        of coverage,
                        if applicable;

                    

            

            

            
              	 	
                      (14)

                    	
                      a
                        code indicating whether the Mortgage Loan is covered by lender-paid
                        mortgage insurance (Y or N);

                    

            

            

            (15)       
               a
              code
              indicating whether the Mortgage Loan is a Time$aver® Mortgage Loan (Y or
              N);

            

            
              	 	
                      (16)

                    	
                      the
                        Mortgagor's first and last name;

                    

            

            

            
              	 	
                      (17)

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

                    

            

            

            
              	 	
                      (18)

                    	
                      the
                        remaining months to maturity from the Cut-off Date, based
                        on the original
                        amortization schedule; 

                    

            

            

            
              	 	
                      (19)

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

                    

            

            

            
              	 	
                      (20)

                    	
                      the
                        actual next Due Date of the Mortgage
                        Loan;

                    

            

            

            
              	 	
                      (21)

                    	
                      the
                        last Due Date on which a Monthly Payment was actually applied
                        to the
                        actual principal balance; 

                    

            

            

            
              	 	
                      (22)

                    	
                      the
                        original principal amount of the Mortgage Loan;

                    

            

            

            
              	 	
                      (23)

                    	
                      a
                        code indicating the purpose of the loan (i.e., purchase,
                        financing,
                        rate/term refinancing, cash-out refinancing);

                    

            

            

            
              	 	
                      (24)

                    	
                      the
                        Mortgage Interest Rate at origination;

                    

            

            

            
              	 	
                      (25)

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

                    

            

            

            
              	 	
                      (26)

                    	
                      a
                        code indicating the documentation style (i.e., full (providing
                        two years
                        employment verification - 2 years W-2’s and current pay stub or 2 years
                        1040’s for self employed borrowers), alternative or
                        reduced);

                    

            

            

            
              	 	
                      (27)

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

                    

            

            

            
              	 	
                      (28)

                    	
                      the
                        Appraised Value of the Mortgage
                        Property;

                    

            

            

            
              	 	
                      (29)

                    	
                      the
                        sale price of the Mortgaged Property, if
                        applicable;

                    

            

            

            (30)         the
              Mortgagor’s Underwriting FICO Score;

            

            (31)       
               term
              of
              Prepayment Penalty in years;

            

            (32)       
               a
              code
              indicating the product type;

            

            (33)       
               a
              code
              indicating the credit grade of the Mortgage Loan;

            

            
              	 	
                      (34)

                    	
                      the
                        unpaid balance of the Mortgage Loan as of the close of business
                        on the
                        Cut-off Date, after deduction of all payments of
                        principal;

                    

            

            

            (35)       
               the
              Note
              date of the Mortgage Loan;

            

            
              	 	
                      (36)

                    	
                      the
                        mortgage insurance certificate number and percentage of coverage,
                        if
                        applicable;

                    

            

            

            (37)       
               the
              Mortgagor’s and Co-Mortgagor’s (if any) date of birth;

            

            
              	 	
                      (38)

                    	
                      if
                        the Mortgage Loan is a MERS Mortgage Loan, the MIN Number
                        for each MERS
                        Mortgage Loan;

                    

            

            

            (39)      
               employer
              name;

            

            (40)      
               subsidy
              program code;

            

            (41)      
               servicer
              name;

            

            (42)      
               the
              combined Loan-to-Value Ratio;

            

            (43)      
               the
              total
              Loan-to-Value Ratio;

            

            (44)       
               whether
              the Mortgage Loan is convertible (Y or N);

            

            (45)        a
              code
              indicating whether the Mortgage Loan is a relocation loan (Y or N);

            

            (46)      
               a
              code
              indicating whether the Mortgage Loan is a leasehold loan (Y or N);

            

            (47)      
               a
              code
              indicating whether the Mortgage Loan is an Alt A loan (Y or N);

            

            (48)       
               a
              code
              indicating whether the Mortgage Loan is a no ratio loan (Y or N); 

            

            
              	 	
                      (49)

                    	
                      a
                        code indicating whether the Mortgage Loan is a Pledged Asset
                        Mortgage Loan
                        (Y or N);

                    

            

            

            (50)      
               effective
              LTV percentage for Pledged Asset Mortgage Loans;

            

            (51)      
               citizenship
              type code;

            

            
              	 	
                      (52)

                    	
                      a
                        code indicating whether the Mortgage Loan is a conforming
                        or
                        non-conforming loan, based on the original loan
                        balance;

                    

            

            

            (53)      
               the
              name
              of the client for which the Mortgage Loan was originated;

            

            (54)      
               the
              program code;

            

            (55)      
               the
              loan
              sub doc code;

            

            
              	(56)  	
                      a
                        code indicating amortization type (1 or
                        2);

                    

            

            

            
              	(57)  	
                      interest
                        only note payment;

                    

            

            

            
              	(58)  	
                      first
                        full amortization payment date;

                    

            

            

            
              	(59)  	
                      interest
                        only term, number of months;

                    

            

            

            
              	(60)  	
                      remaining
                        interest only term, number of
                        months;

                    

            

            

            
              	(61)  	
                      a
                        code indicating whether the Mortgage Loan is a 2nd
                        lien (Y or N);

                    

            

            

            
              	(62)  	
                      a
                        code indicating borrower VOA or lender VOA (L or
                        B);

                    

            

            

            
              	(63)  	
                      combined
                        current loan balance;

                    

            

            

            

            The
              Company shall provide the following

            For
              the Home Mortgage Disclosure Act (HMDA):

            

            (64)      
               the
              Mortgagor’s and co-Mortgagor’s (if applicable) ethnicity;

            

            (65)      
               the
              Mortgagor’s and co-Mortgagor’s (if applicable) race;

            

            (66)      
               lien
              status;

            

            (67)      
               for
              cash-out refinance loans, the cash purpose;

            

            (68)      
               the
              Mortgagor’s and co-Mortgagor’s (if applicable) gender;

            

            (69)      
               the
              Mortgagor’s and co-Mortgagor’s (if applicable) social security
              numbers;

            

            (70)      
               the
              number of units for the property;

            

            (71)      
               the
              year
              in which the property was built;

            

            (72)      
               the
              qualifying monthly income of the Mortgagor;

            

            (73)      
               the
              number of bedrooms contained in the property;

            

            (74)      
               a
              code
              indicating first time buyer (Y or N);

            

            (75)     
                the
              total
              rental income, if any;

            

            The
              Seller shall provide the following

            for
              the adjustable rate Mortgage Loans (if applicable):

            

            (76)      
               the
              maximum Mortgage Interest Rate under the terms of the Mortgage
              Note;

            

            (77)      
               the
              Periodic Interest Rate Cap;

            

            (78)      
               the
              Index;

            

            (79)      
               the
              next
              interest rate and payment Adjustment Date;

            

            
              	 	
                      (80)

                    	
                      the
                        Mortgage Interest Rate adjustment cap and all subsequent
                        interest rate
                        Adjustment Dates;

                    

            

            

            (81)      
               the
              Gross
              Margin; and

            

            (82)      
               the
              lifetime interest rate cap.

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            EXHIBIT
              C

            

            

            CONTENTS
              OF EACH 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
              any prospective Purchaser, and which shall be retained by the Company
              in the
              Servicing File or delivered to the Custodian pursuant to Sections 2.01
              and 2.03
              of the Seller's Warranties and the Servicing Agreement to which this
              Exhibit is
              attached (the "Agreement"):

            

            
              	 	
                      1.

                    	
                      The
                        original Mortgage Note, with all applicable addenda and riders,
                        bearing
                        all intervening endorsements, endorsed "Pay to the order
                        of  
                        without recourse" and signed in the name of the Company by
                        an authorized
                        officer (in the event that the Mortgage Loan was acquired
                        by the Company
                        in a merger, the signature must be in the following form:
                        "[Company],
                        successor by merger to [name of predecessor]"; and in the
                        event that the
                        Mortgage Loan was acquired or originated by the Company while
                        doing
                        business under another name, the signature must be in the
                        following form:
                        "[Company], formerly known as [previous
                        name]").

                    

            

            

            
              	 	
                      2.

                    	
                      The
                        original of any guarantee executed in connection with the
                        Mortgage
                        Note.

                    

            

            

            
              	3.          
                        	
                      The
                        original Mortgage, with all applicable addenda and riders,
                        with evidence
                        of recording thereon or a certified true and correct copy
                        of the Mortgage
                        sent for recordation. If in connection with any Mortgage
                        Loan, the Company
                        cannot deliver or cause to be delivered the original Mortgage
                        with
                        evidence of recording thereon on or prior to the Closing
                        Date because of a
                        delay caused by the public recording office where such Mortgage
                        has been
                        delivered for recordation or because such Mortgage has been
                        lost or
                        because such public recording office retains the original
                        recorded
                        Mortgage, the Company shall deliver or cause to be delivered
                        to the
                        Custodian, 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 Company stating that such Mortgage has been dispatched
                        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 Company; 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 certified by such public recording office or
                        by the title
                        insurance company that issued the title policy to be a true
                        and complete
                        copy of the original recorded
                        Mortgage.

                    

            

            

            Further,
              with respect to MERS Mortgage Loans, (a) the Mortgage names MERS as
              the
              Mortgagee and (b) the requirements set forth in the Electronic Tracking
              Agreement have been satisfied, with a conformed recorded copy to follow
              as soon
              as the same is received by the Company.

            

            
              	 	
                      4.

                    	
                      The
                        originals or certified true copies of any document sent for
                        recordation of
                        all assumption, modification, consolidation or extension
                        agreements, with
                        evidence of recording thereon.

                    

            

            

            
              	 	
                      5.

                    	
                      The
                        original Assignment of Mortgage for each Mortgage Loan, in
                        form and
                        substance acceptable for recording (except for the insertion
                        of the name
                        of the assignee and recording information). The Assignment
                        of Mortgage
                        must be duly recorded only if recordation is either necessary
                        under
                        applicable law or commonly required by private institutional
                        mortgage
                        investors in the area where the Mortgaged Property is located
                        or on
                        direction of the Purchaser. If the Assignment of Mortgage
                        is to be
                        recorded, the Mortgage shall be assigned to the Purchaser.
                        If the
                        Assignment of Mortgage is not to be recorded, the Assignment
                        of Mortgage
                        shall be delivered in blank. If the Mortgage Loan was acquired
                        by the
                        Company in a merger, the Assignment of Mortgage must be made
                        by
                        "[Company], successor by merger to [name of predecessor]."
                        If the Mortgage
                        Loan was acquired or originated by the Company while doing
                        business under
                        another name, the Assignment of Mortgage must be by "[Company],
                        formerly
                        know as [previous name]." Subject to the foregoing and where
                        permitted
                        under the applicable laws of the jurisdiction wherein the
                        Mortgaged
                        property is located, such Assignments of Mortgage may be
                        made by blanket
                        assignments for Mortgage Loans secured by the Mortgaged Properties
                        located
                        in the same county.

                    

            

            

            
              	 	
                      6.

                    	
                      Originals
                        or certified true copies of documents sent for recordation
                        of all
                        intervening assignments of the Mortgage with evidence of
                        recording
                        thereon, or if any such intervening assignment has not been
                        returned from
                        the applicable recording office or has been lost or if such
                        public
                        recording office retains the original recorded assignments
                        of mortgage,
                        the Company shall deliver or cause to be delivered to the
                        Custodian, a
                        photocopy of such intervening assignment, together with (i)
                        in the case of
                        a delay caused by the public recording office, an Officer's
                        Certificate of
                        the Company stating that such intervening assignment of mortgage
                        has been
                        dispatched 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 or by the title insurance company
                        that issued the
                        title policy 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 Company; or (ii) in
                        the case of an
                        intervening assignment where a public recording office retains
                        the
                        original recorded intervening assignment or in the case where
                        an
                        intervening assignment is lost after recordation in a public
                        recording
                        office, a copy of such intervening assignment certified by
                        such public
                        recording office to be a true and complete copy of the original
                        recorded
                        intervening assignment.

                    

            

            

            
              	7.          
                        	
                      The
                        electronic form of PMI Policy as identified by certificate
                        number.

                    

            

            

            
              	 	
                      8.

                    	
                      The
                        original mortgagee title insurance policy or, if such policy
                        has not been
                        issued, (a) a written commitment or binder for such policy
                        issued by a
                        title insurer or (b) a preliminary title report issued by
                        a title insurer
                        in anticipation of issuing a title insurance
                        policy.

                    

            

            

            
              	 	
                      9.

                    	
                      Any
                        security agreement, chattel mortgage or equivalent executed
                        in connection
                        with the Mortgage.

                    

            

            

            
              	 	
                      10.

                    	
                      For
                        each Cooperative Loan, the original or a seller certified
                        true copy of the
                        following:

                    

            

            

            The
              original Pledge Agreement entered into by the Mortgagor with respect
              to such
              Cooperative Loan;

             

            UCC-3
              assignment in blank (or equivalent instrument), sufficient under the
              laws of the
              jurisdiction where the related Cooperative Apartment is located to
              reflect of
              record the sale and assignment of the Cooperative Loan to the
              Purchaser;

             

            Original
              assignment of Pledge Agreement in blank showing a complete chain of
              assignment
              from the originator of the related Cooperative Loan to the Company;

             

            Original
              Form UCC-1 and any continuation statements with evidence of filing
              thereon with
              respect to such Cooperative Loan;

             

            Cooperative
              Shares with a Stock Certificate in blank attached; 

             

            Original
              Proprietary Lease;

             

            Original
              Assignment of Proprietary Lease, in blank, and all intervening assignments
              thereof;

             

            Original
              recognition agreement of the interests of the mortgagee with respect
              to the
              Cooperative Loan by the Cooperative, the stock of which was pledged
              by the
              related Mortgagor to the originator of such Cooperative Loan; and

             

            Originals
              of any assumption, consolidation or modification agreements relating
              to any of
              the items specified above.

            

            With
              respect to each Mortgage Loan, the Servicing File shall include each
              of the
              following items to the extent in the possession of the Company or in
              the
              possession of the Company’s agent(s):

            

            
              	 	
                      11.

                    	
                      The
                        original hazard insurance policy and, if required by law,
                        flood insurance
                        policy, in accordance with Section 4.10 of the
                        Agreement.

                    

            

            

            
              	 	
                      12.

                    	
                      Residential
                        loan application.

                    

            

            

            
              	 	
                      13.

                    	
                      Mortgage
                        Loan closing statement.

                    

            

            

            
              	 	
                      14.

                    	
                      Verification
                        of employment and income, unless originated under the Company's
                        Limited
                        Documentation program, Fannie Mae Timesaver
                        Plus.

                    

            

            

            
              	 	
                      15.

                    	
                      Verification
                        of acceptable evidence of source and amount of down
                        payment.

                    

            

            

            
              	 	
                      16.

                    	
                      Credit
                        report on the Mortgagor.

                    

            

            

            
              	 	
                      17.

                    	
                      Residential
                        appraisal report.

                    

            

            

            
              	 	
                      18.

                    	
                      Photograph
                        of the Mortgaged Property.

                    

            

            

            
              	 	
                      19.

                    	
                      Survey
                        of the Mortgage property, if required by the title company
                        or applicable
                        law.

                    

            

            

            
              	 	
                      20.

                    	
                      Copy
                        of each instrument necessary to complete identification of
                        any exception
                        set forth in the exception schedule in the title policy,
                        i.e. map or plat,
                        restrictions, easements, sewer agreements, home association
                        declarations,
                        etc.

                    

            

            

            
              	 	
                      21.

                    	
                      All
                        required disclosure statements.

                    

            

            

            
              	 	
                      22.

                    	
                      If
                        available, termite report, structural engineer's report,
                        water potability
                        and septic certification.

                    

            

            

            
              	 	
                      23.

                    	
                      Sales
                        contract, if applicable.

                    

            

            

            
              	 	
                      24.

                    	
                      Evidence
                        of payment of taxes and insurance premiums, insurance claim
                        files,
                        correspondence, current and historical computerized data
                        files, and all
                        other processing, underwriting and closing papers and records
                        which are
                        customarily contained in a mortgage loan file and which are
                        required to
                        document the Mortgage Loan or to service the Mortgage
                        Loan.

                    

            

            

            
              	 	
                      25.

                    	
                      Amortization
                        schedule, if available.

                    

            

            

            26.        
               Original
              or copy of power of attorney, if applicable.

            

            In
              the
              event an Officer's Certificate of the Company is delivered to the Custodian
              because of a delay caused by the public recording office in returning
              any
              recorded document, the Company shall deliver to the Custodian, within
              240 days
              of the Closing Date, an Officer's Certificate which shall (i) identify
              the
              recorded document, (ii) state that the recorded document has not been
              delivered
              to the Custodian due solely to a delay caused by the public recording
              office,
              (iii) state the amount of time generally required by the applicable
              recording
              office to record and return a document submitted for recordation, and
              (iv)
              specify the date the applicable recorded document will be delivered
              to the
              Custodian. The Company shall be required to deliver to the Custodian
              the
              applicable recorded document by the date specified in (iv) above. An
              extension
              of the date specified in (iv) above may be requested from the Purchaser,
              which
              consent shall not be unreasonably withheld. 

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            EXHIBIT
              D

            

            CUSTODIAL
              AGREEMENT

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            EXHIBIT
              E

            

            FORM
              OF
              OPINION OF COUNSEL

            

            

            

            

            

            ______________________________

            ______________________________

            ______________________________

            ______________________________

            

            Re:        
               Wells
              Fargo Bank, N.A.

            Mortgage
              Loan Series ______________________________

            

            Dear
              Sir/Madam:

            

            I
              am
              ______________________________ of Wells Fargo Bank, N.A. and have acted
              as
              counsel to Wells Fargo Bank, N.A. (the “Company”), with respect to certain
              matters in connection with the sale by the Company of the mortgage
              loans
              designated as Mortgage Loan Series ______________________________ (the
“Mortgage Loans”) pursuant to that certain Seller’s Warranties and Servicing
              Agreement by and between the Company and ______________________________
              (the “Purchaser”), dated as of ______________________________, 20__, (the
“Agreement”), which sale is in the form of whole Mortgage Loans. Capitalized
              terms not otherwise defined herein have the meanings set forth in the
              Agreement.

            

            I
              have
              examined the following documents:

            

            
              	1.  	
                      the
                        Agreement;

                    

            

            

            
              	2.  	
                      the
                        form of endorsement of the Mortgage Notes;
                        and

                    

            

            

            
              	3.  	
                      such
                        other documents, records and papers as I have deemed necessary
                        and
                        relevant as a basis for this
                        opinion.

                    

            

            

            To
              the
              extent I have deemed necessary and proper, I have relied upon the
              representations and warranties of the Company contained in the Agreement.
              I have
              assumed the authenticity of all documents submitted to me as originals,
              the
              genuineness of all signatures, the legal capacity of natural persons
              and the
              conformity to the originals of all documents.

            

            Based
              upon the foregoing, it is my opinion that;

            

            
              	
                      1.

                    	
                      The
                        Company is a national banking association duly organized,
                        validly existing
                        and in good standing under the laws of the United States.
                        

                    

            

            

            
              	
                      2.

                    	
                      The
                        Company has the power to engage in the transactions contemplated
                        by the
                        Agreement and all requisite power, authority and legal right
                        to execute
                        and deliver the Agreement and the Mortgage Loans, and to
                        perform and
                        observe the terms and conditions of such
                        instruments.

                    

            

            

            
              	
                      3.

                    	
                      Each
                        person who, as an officer or attorney-in-fact of the Company,
                        signed (a)
                        the Agreements, each dated as of ______________________________,
                        20__, by
                        and between the Company and the Purchaser, and (b) any other
                        document
                        delivered prior hereto or on the date hereof in connection
                        with the sale
                        and servicing of the Mortgage Loans in accordance with the
                        Agreement was,
                        at the respective times of such signing and delivery, and
                        is, as of the
                        date hereof, duly elected or appointed, qualified and acting
                        as such
                        officer or attorney-in-fact, and the signatures of such persons
                        appearing
                        on such documents are their genuine
                        signatures.

                    

            

            

            
              	
                      4.

                    	
                      Each
                        of the Agreement and the Mortgage Loans, has been duly authorized,
                        executed and delivered by the Company and is a legal, valid
                        and binding
                        agreement enforceable in accordance with its terms, subject
                        to the effect
                        of insolvency, liquidation, conservatorship and other similar
                        laws
                        administered by the Federal Deposit Insurance Corporation
                        affecting the
                        enforcement of contract obligations of insured banks and
                        subject to the
                        application of the rules of equity, including those respecting
                        the
                        availability of specific performance, none of which will
                        materially
                        interfere with the realization of the benefits provided thereunder
                        or with
                        the Purchaser’s ownership of the Mortgage
                        Loans.

                    

            

            

            
              	
                      5.

                    	
                      The
                        Company has been duly authorized to allow any of its officers
                        to execute
                        any and all documents by original or facsimile signature
                        in order to
                        complete the transactions contemplated by the Agreement and
                        in order to
                        execute the endorsements to the Mortgage Notes and the assignments
                        of the
                        Mortgages, and the original or facsimile signature of the
                        officer at the
                        Company executing the Agreement, the endorsements to the
                        Mortgage Notes
                        and the assignments of the Mortgages represents the legal
                        and valid
                        signature of said officer of the
                        Company.

                    

            

            

            
              	
                      6.

                    	
                      Either
                        (i) no consent, approval, authorization or order of any court
                        or
                        governmental agency or body is required for the execution,
                        delivery and
                        performance by the Company of or compliance by the Company
                        with the
                        Agreement or the sale and delivery of the Mortgage Loans
                        or the
                        consummation of the transactions contemplated by the Agreement;
                        or (ii)
                        any required consent, approval, authorization or order has
                        been obtained
                        by the Company. 

                    

            

            

            
              	
                      7.

                    	
                      Neither
                        the consummation of the transactions contemplated by, nor
                        the fulfillment
                        of the terms of the Agreement, will conflict with or results
                        in or will
                        result in a breach of or constitutes or will constitute a
                        default under
                        the charter or by-laws of the Company, the terms of any indenture
                        or other
                        agreement or instrument to which the Company is a party or
                        by which it is
                        bound or to which it is subject, or violates any statute
                        or order, rule,
                        regulations, writ, injunction or decree of any court, governmental
                        authority or regulatory body to which the Company is subject
                        or by which
                        it is bound.

                    

            

            

            
              	
                      8.

                    	
                      There
                        is no action, suit, proceeding or investigation pending or,
                        to the best of
                        my knowledge, threatened against the Company which, in my
                        opinion, either
                        in any one instance or in the aggregate, may result in any
                        material
                        adverse change in the business, operations, financial condition,
                        properties or assets of the Company or in any material impairment
                        of the
                        right or ability of the Company to carry on its business
                        substantially as
                        now conducted or in any material liability on the part of
                        the Company or
                        which would draw into question the validity of the Agreement,
                        or of any
                        action taken or to be taken in connection with the transactions
                        contemplated thereby, or which would be likely to impair
                        materially the
                        ability of the Company to perform under the terms of the
                        Agreement.

                    

            

            

            
              	
                      9.

                    	
                      For
                        purposes of the foregoing, I have not regarded any legal
                        or governmental
                        actions, investigations or proceedings to be "threatened"
                        unless the
                        potential litigant or governmental authority has manifested
                        to the legal
                        department of the Company or an employee of the Company responsible
                        for
                        the receipt of process a present intention to initiate such
                        proceedings;
                        nor have I regarded any legal or governmental actions, investigations
                        or
                        proceedings as including those that are conducted by state
                        or federal
                        authorities in connection with their routine regulatory activities.
                        The
                        sale of each Mortgage Note and Mortgage as and in the manner
                        contemplated
                        by the Agreement is sufficient fully to transfer all right,
                        title and
                        interest of the Company thereto as noteholder and mortgagee,
                        apart from
                        the rights to service the Mortgage Loans pursuant to the
                        Agreement.

                    

            

            

            
              	
                      10.

                    	
                      The
                        form of endorsement that is to be used with respect to the
                        Mortgage Loans
                        is legally valid and sufficient to duly endorse the Mortgage
                        Notes to the
                        Purchaser. Upon the completion of the endorsement of the
                        Mortgage Notes
                        and the completion of the assignments of the Mortgages, and
                        the recording
                        thereof, the endorsement of the Mortgage Notes, the delivery
                        to the
                        Custodian of the completed assignments of the Mortgages,
                        and the delivery
                        of the original endorsed Mortgage Notes to the Custodian
                        would be
                        sufficient to permit the entity to which such Mortgage Note
                        is initially
                        endorsed at the Purchaser’s direction, and to whom such assignment of
                        Mortgages is initially assigned at the Purchaser’s direction, to avail
                        itself of all protection available under applicable law against
                        the claims
                        of any present or future creditors of the Company, and would
                        be sufficient
                        to prevent any other sale, transfer, assignment, pledge or
                        hypothecation
                        of the Mortgages and the Mortgage Notes by the Company from
                        being
                        enforceable.

                    

            

            

            This
              opinion is given to you for your sole benefit, and no other person
              or entity is
              entitled to rely hereon except that the purchaser or purchasers to
              which you
              initially and directly resell the Mortgage Loans may rely on this opinion
              as if
              it were addressed to them as of its date.

            

            Sincerely,

            

            ______________________________

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            EXHIBIT
              F

            

            COMPANY’S
              OFFICER’S CERTIFICATE

             

            

              I,
              ________________________, hereby certify that I am the duly elected
              ______________ of Wells Fargo Bank, N.A., a national banking association
              (the
“Company”), and further certify, on behalf of the Company as
              follows:

              

            
              	 	
                      1.

                    	
                      Attached
                        hereto as Exhibit A is a true, correct and complete copy
                        of the Articles
                        of Association of the Company which are in full force and
                        effect on the
                        date hereof.

                    

            

            

            
              	 	
                      2.

                    	
                      Attached
                        hereto as Exhibit B is a true, correct and complete copy
                        of the bylaws of
                        the Company which are in effect on the date
                        hereof.

                    

            

            

            
              	 	
                      3.

                    	
                      The
                        execution and delivery by the Company of the Seller’s Warranties and
                        Servicing Agreement, dated as of _____________, 20__, (the
“Sale and
                        Servicing Agreement”) and the Mortgage Loan Purchase Agreement dated as of
                        _____, 20__, (the “Purchaser Agreement” and together with the Sale and
                        Servicing Agreement, the “Agreements”) are in the ordinary course of
                        business of the Company. 

                    

            

             

            

            
              	 	
                      4.

                    	
                      A
                        true and correct copy of the resolution of the Mortgage Banking
                        Committee
                        of the Board of Directors of the Company authorizing the
                        Company to enter
                        into the Agreements is attached hereto as Exhibit
                        C.

                    

            

            

            
              	 	
                      5.

                    	
                      Each
                        person who, as an officer or representative of the Company,
                        signed (a) the
                        Agreements, or (b) any other document delivered prior hereto
                        or on the
                        date hereof in connection with any transaction described
                        in the Agreements
                        was, at the respective times of such signing and delivery
                        a duly elected
                        or appointed, qualified and acting officer or representative
                        of the
                        Company, and the signatures of such persons appearing on
                        such documents
                        are their genuine signatures.

                    

            

            

            
              	 	
                      6.

                    	
                      Either
                        (i) no consent, approval, authorization or order of any court
                        or
                        governmental agency or body is required for the execution,
                        delivery and
                        performance by the Company of or compliance by the Company
                        with the
                        Agreements or the sale of the Mortgage Loans or the consummation
                        of the
                        transactions contemplated by the Agreements; or (ii) any
                        required consent,
                        approval, authorization or order has been obtained by the
                        Company.

                    

            

            

            
              	 	
                      7.

                    	
                      To
                        the best of my knowledge, neither the consummation of the
                        transactions
                        contemplated by, nor the fulfillment of the terms of the
                        Agreements,
                        conflicts or will conflict with or results or will result
                        in a breach of,
                        or constitutes or will constitute a default under, the charter
                        or by-laws
                        of the Company, the terms of any indenture or other agreement
                        or
                        instrument to which the Company is a party or by which it
                        is bound or to
                        which it is subject, or any statute or order, rule, regulation,
                        writ,
                        injunction or decree of any court, governmental authority
                        or regulatory
                        body to which the Company is subject or by which it is
                        bound.

                    

            

            

            
              	 	
                      8.

                    	
                      There
                        are no actions, suits or proceedings pending or, to the best
                        of my
                        knowledge, threatened against or affecting the Company that
                        would
                        materially and adversely affect the Company's ability to
                        perform its
                        obligations under the Agreements. No proceedings for merger,
                        consolidation, liquidation, dissolution, conservatorship
                        or receivership
                        of the Company are pending, or to my knowledge threatened,
                        and no such
                        proceeding is contemplated by the
                        Company.

                    

            

             

            
              	 	
                      9.

                    	
                      The
                        Company is duly authorized to engage in the transactions
                        described and
                        contemplated by the Agreements.

                    

            

             

            
              	 	
                      10.

                    	
                      Capitalized
                        terms used but not defined herein shall have the meanings
                        assigned in the
                        Seller’s Warranties and Servicing
                        Agreement.

                    

            

             

            IN
              WITNESS WHEREOF, I have hereunto signed by name and affixed the seal
              of the
              Company.

             

            

             

            
              	
                      Dated:

                    	 	 	
                      By:

                    	 
	 	 	 	
                      Name:

                    	 
	
                      [Seal]

                    	 	 	
                      Title:

                    	 

            

            

             

            

             

            I,
              __________, __________ of Wells Fargo Bank, N.A., hereby certify that
              ___________ is the duly elected, qualified and acting ___________ of
              the Company
              and that the signature appearing above is his genuine signature.

             

            IN
              WITNESS WHEREOF, I have hereunto signed my name.

             

            

             

            
              	
                      Dated:

                    	 	 	
                      By:

                    	 
	 	 	 	
                      Name:

                    	 
	 	 	 	
                      Title:

                    	 

            

            

            

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            EXHIBIT
              G

            

            FORMS
              OF
              CUSTODIAL ACCOUNT CERTIFICATIONS

            

            

            CUSTODIAL
              ACCOUNT CERTIFICATION

            

            

            

            __________________,20____

            

            

            Wells
              Fargo Bank, N.A. hereby certifies that it has established the account
              described
              below as a Custodial Account pursuant to Section 4.04 of the Seller's
              Warranties
              and Servicing Agreement, dated as of __________________,20____.

            

            
              	
                      Title
                        of Account:

                    	
                      Wells
                        Fargo Bank, N.A. in trust for the Purchaser and/or subsequent
                        purchasers
                        of Mortgage Loans - P & I

                    

            

            

            

            
              	
                      Address
                        of office or branch of the Company at which Account is
                        maintained:

                    	 
	 	 
	 	 
	 	 

            

            

            

            

            
              	 	 	 	 	 	 	 	
                      WELLS
                        FARGO BANK, N.A.

                      Company

                    
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                      By:

                    	 
	 	 	 	 	 	 	 	
                      Name:

                    	 
	 	 	 	 	 	 	 	
                      Title:

                    	 

            

            

            

            

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            EXHIBIT
              H

            

            FORMS
              OF
              ESCROW ACCOUNT CERTIFICATIONS

            

            

            

            ESCROW
              ACCOUNT CERTIFICATION

            

            

            

            __________________,20____

            

            

            

            Wells
              Fargo Bank, N.A. hereby certifies that it has established the account
              described
              below as an Escrow Account pursuant to Section 4.06 of the Seller's
              Warranties
              and Servicing Agreement, dated as of __________________,20____.

            

            
              	
                      Title
                        of Account:

                    	
                      Wells
                        Fargo Bank, N.A. in trust for the Purchaser and/or subsequent
                        purchasers
                        of Mortgage Loans, and various Mortgagors - T &
                        I

                    

            

            

            

            
              	
                      Address
                        of office or branch of the Company at which Account is
                        maintained:

                    	 
	 	 
	 	 
	 	 

            

            

            

            

            
              	 	 	 	 	 	 	 	
                      WELLS
                        FARGO BANK, N.A.

                      Company

                    
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                      By:

                    	 
	 	 	 	 	 	 	 	
                      Name:

                    	 
	 	 	 	 	 	 	 	
                      Title:

                    	 

            

            

            

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            EXHIBIT
              I

            

            FORM
              OF
              REMITTANCE ADVICE 

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            EXHIBIT
              J

            

            SERVICING
              CRITERIA TO BE ADDRESSED

            IN
              ASSESSMENT OF COMPLIANCE

            

            The
              assessment of compliance to be delivered by [the Company][Name of Subservicer]
              shall address, as a minimum, the criteria identified below as “Applicable
              Servicing Criteria”

            

            
              	
                      Reg
                        AB Reference

                    	
                      Servicing
                        Criteria

                    	
                      Applicable
                        Servicing Criteria

                    	
                      Inapplicable
                        Servicing Criteria

                    
	 	
                      General
                        Servicing Considerations

                    	 	 
	
                      1122(d)(1)(i)

                    	
                      Policies
                        and procedures are instituted to monitor any performance
                        or other triggers
                        and events of default in accordance with the transaction
                        agreements.

                    	
                      X

                    	 
	
                      1122(d)(1)(ii)

                    	
                      If
                        any material servicing activities are outsourced to third
                        parties,
                        policies and procedures are instituted to monitor the third
                        party’s
                        performance and compliance with such servicing activities.
                        

                    	
                      X

                    	 
	
                      1122(d)(1)(iii)

                    	
                      Any
                        requirements in the transaction agreements to maintain a
                        back-up servicer
                        for the mortgage loans are maintained. 

                    	 	
                      X

                    
	
                      1122(d)(1)(iv)

                    	
                      A
                        fidelity bond and errors and omissions policy is in effect
                        on the party
                        participating in the servicing function throughout the reporting
                        period in
                        the amount of coverage required by and otherwise in accordance
                        with the
                        terms of the transaction agreements. 

                    	
                      X

                    	 
	 	
                      Cash
                        Collection and Administration

                    	 	 
	
                      1122(d)(2)(i)

                    	
                      Payments
                        on mortgage loans are deposited into the appropriate custodial
                        bank
                        accounts and related bank clearing accounts no more than
                        two business days
                        following receipt, or such other number of days specified
                        in the
                        transaction agreements. 

                    	
                      X

                    	 
	
                      1122(d)(2)(ii)

                    	
                      Disbursements
                        made via wire transfer on behalf of an obligor or to an investor
                        are made
                        only by authorized personnel. 

                    	
                      X

                    	 
	
                      1122(d)(2)(iii)

                    	
                      Advances
                        of funds or guarantees regarding collections, cash flows
                        or distributions,
                        and any interest or other fees charged for such advances,
                        are made,
                        reviewed and approved as specified in the transaction agreements.
                        

                    	
                      X

                    	 
	
                      1122(d)(2)(iv)

                    	
                      The
                        related accounts for the transaction, such as cash reserve
                        accounts or
                        accounts established as a form of overcollateralization,
                        are separately
                        maintained (e.g., with respect to commingling of cash) as
                        set forth in the
                        transaction agreements. 

                    	
                      X

                    	 
	
                      1122(d)(2)(v)

                    	
                      Each
                        custodial account is maintained at a federally insured depository
                        institution as set forth in the transaction agreements. For
                        purposes of
                        this criterion, “federally insured depository institution” with respect to
                        a foreign financial institution means a foreign financial
                        institution that
                        meets the requirements of Rule 13k-1(b)(1) of the Securities
                        Exchange Act.
                        

                    	
                      X

                    	 
	
                      1122(d)(2)(vi)

                    	
                      Unissued
                        checks are safeguarded so as to prevent unauthorized access.
                        

                    	
                      X

                    	 
	
                      1122(d)(2)(vii)
                        

                    	
                      Reconciliations
                        are prepared on a monthly basis for all asset-backed securities
                        related
                        bank accounts, including custodial accounts and related bank
                        clearing
                        accounts. These reconciliations are (A) mathematically accurate;
                        (B)
                        prepared within 30 calendar days after the bank statement
                        cutoff date, or
                        such other number of days specified in the transaction agreements;
                        (C)
                        reviewed and approved by someone other than the person who
                        prepared the
                        reconciliation; and (D) contain explanations for reconciling
                        items. These
                        reconciling items are resolved within 90 calendar days of
                        their original
                        identification, or such other number of days specified in
                        the transaction
                        agreements. 

                    	
                      X

                    	 
	 	
                      Investor
                        Remittances and Reporting

                    	 	 
	
                      1122(d)(3)(i)

                    	
                      Reports
                        to investors, including those to be filed with the Commission,
                        are
                        maintained in accordance with the transaction agreements
                        and applicable
                        Commission requirements. Specifically, such reports (A) are
                        prepared in
                        accordance with timeframes and other terms set forth in the
                        transaction
                        agreements; (B) provide information calculated in accordance
                        with the
                        terms specified in the transaction agreements; (C) are filed
                        with the
                        Commission as required by its rules and regulations; and
                        (D) agree with
                        investors’ or the trustee’s records as to the total unpaid principal
                        balance and number of mortgage loans serviced by the Servicer.
                        

                    	
                      X

                    	 
	
                      1122(d)(3)(ii)

                    	
                      Amounts
                        due to investors are allocated and remitted in accordance
                        with timeframes,
                        distribution priority and other terms set forth in the transaction
                        agreements. 

                    	
                      X

                    	 
	
                      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

                    	 

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            
              	
                      Reg
                        AB Reference

                    	
                      Servicing
                        Criteria

                    	
                      Applicable
                        Servicing Criteria

                    	
                      Inapplicable
                        Servicing Criteria

                    
	 	
                      Pool
                        Asset Administration

                    	 	 
	
                      1122(d)(4)(i)
                        

                    	
                      Collateral
                        or security on mortgage loans is maintained as required by
                        the transaction
                        agreements or related mortgage loan documents. 

                    	
                      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

                    	 
	
                      1122(d)(4)(iv)

                    	
                      Payments
                        on mortgage loans, including any payoffs, made in accordance
                        with the
                        related mortgage loan documents are posted to the Servicer’s obligor
                        records maintained no more than two business days after receipt,
                        or such
                        other number of days specified in the transaction agreements,
                        and
                        allocated to principal, interest or other items (e.g., escrow)
                        in
                        accordance with the related mortgage loan documents. 

                    	
                      X

                    	 
	
                      1122(d)(4)(v)

                    	
                      The
                        Servicer’s records regarding the mortgage loans agree with the Servicer’s
                        records with respect to an obligor’s unpaid principal balance.
                        

                    	
                      X

                    	 
	
                      1122(d)(4)(vi)

                    	
                      Changes
                        with respect to the terms or status of an obligor's mortgage
                        loans (e.g.,
                        loan modifications or re-agings) are made, reviewed and approved
                        by
                        authorized personnel in accordance with the transaction agreements
                        and
                        related pool asset documents. 

                    	
                      X

                    	 
	
                      1122(d)(4)(vii)

                    	
                      Loss
                        mitigation or recovery actions (e.g., forbearance plans,
                        modifications and
                        deeds in lieu of foreclosure, foreclosures and repossessions,
                        as
                        applicable) are initiated, conducted and concluded in accordance
                        with the
                        timeframes or other requirements established by the transaction
                        agreements. 

                    	
                      X

                    	 
	
                      1122(d)(4)(viii)

                    	
                      Records
                        documenting collection efforts are maintained during the
                        period a mortgage
                        loan is delinquent in accordance with the transaction agreements.
                        Such
                        records are maintained on at least a monthly basis, or such
                        other period
                        specified in the transaction agreements, and describe the
                        entity’s
                        activities in monitoring delinquent mortgage loans including,
                        for example,
                        phone calls, letters and payment rescheduling plans in cases
                        where
                        delinquency is deemed temporary (e.g., illness or unemployment).
                        

                    	
                      X

                    	 
	
                      1122(d)(4)(ix)

                    	
                      Adjustments
                        to interest rates or rates of return for mortgage loans with
                        variable
                        rates are computed based on the related mortgage loan documents.
                        

                    	
                      X

                    	 
	
                      1122(d)(4)(x)

                    	
                      Regarding
                        any funds held in trust for an obligor (such as escrow accounts):
                        (A) such
                        funds are analyzed, in accordance with the obligor’s mortgage loan
                        documents, on at least an annual basis, or such other period
                        specified in
                        the transaction agreements; (B) interest on such funds is
                        paid, or
                        credited, to obligors in accordance with applicable mortgage
                        loan
                        documents and state laws; and (C) such funds are returned
                        to the obligor
                        within 30 calendar days of full repayment of the related
                        mortgage loans,
                        or such other number of days specified in the transaction
                        agreements.
                        

                    	
                      X

                    	 
	
                      1122(d)(4)(xi)

                    	
                      Payments
                        made on behalf of an obligor (such as tax or insurance payments)
                        are made
                        on or before the related penalty or expiration dates, as
                        indicated on the
                        appropriate bills or notices for such payments, provided
                        that such support
                        has been received by the servicer at least 30 calendar days
                        prior to these
                        dates, or such other number of days specified in the transaction
                        agreements. 

                    	
                      X

                    	 
	
                      1122(d)(4)(xii)

                    	
                      Any
                        late payment penalties in connection with any payment to
                        be made on behalf
                        of an obligor are paid from the Servicer’s funds and not charged to the
                        obligor, unless the late payment was due to the obligor’s error or
                        omission. 

                    	
                      X

                    	 
	
                      1122(d)(4)(xiii)

                    	
                      Disbursements
                        made on behalf of an obligor are posted within two business
                        days to the
                        obligor’s records maintained by the servicer, or such other number
                        of days
                        specified in the transaction agreements. 

                    	
                      X

                    	 
	
                      1122(d)(4)(xiv)
                        

                    	
                      Delinquencies,
                        charge-offs and uncollectible accounts are recognized and
                        recorded in
                        accordance with the transaction agreements. 

                    	
                      X

                    	 
	
                      1122(d)(4)(xv)

                    	
                      Any
                        external enhancement or other support, identified in Item
                        1114(a)(1)
                        through (3) or Item 1115 of Regulation AB, is maintained
                        as set forth in
                        the transaction agreements. 

                    	 	
                      X

                    

            

            

            

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            EXHIBIT
              K

            

            SARBANES
              CERTIFICATION

            

            
              	 	
                      Re:

                    	
                      The
                        [ ] agreement dated as of [ ], 200[ ] (the “Agreement”), among [IDENTIFY
                        PARTIES]

                    

            

            

            I,
              ________________________________, the _______________________ of [Name
              of
              Servicer] (the “Servicer”), certify to [the Purchaser], [the Depositor], and the
              [Master Servicer] [Securities Administrator] [Trustee], and their officers,
              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 [Depositor] [Master Servicer] [Securities
              Administrator] [Trustee] 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 [Depositor]
              [Master
              Servicer] [Securities Administrator] [Trustee];

            

            (4) I
              am
              responsible for reviewing the activities performed by the 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; 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 each Subservicer ad Subcontractor pursuant
              to
              the Agreement have been provided to the [Depositor] [Master Servicer].
              Any
              material instances of noncompliance described in such reports have
              been
              disclosed to the [Depositor] [Master Servicer]. Any material instance
              of
              noncompliance with the Servicing Criteria has been disclosed in such
              reports.

            

            
              	 	 	 	 	 	 	 	
                      Date:

                    
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                      By:

                    	 
	 	 	 	 	 	 	 	
                      Name:

                    	 
	 	 	 	 	 	 	 	
                      Title:

                    	 

            

            

            

            

            

            

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            EXHIBIT
              L

            

            ASSIGNMENT,
              ASSUMPTION AND RECOGNITION AGREEMENT

            

            

            ____________,
              20__

            

            

            ASSIGNMENT,
              ASSUMPTION AND RECOGNITION AGREEMENT dated ___________________, 20__
              between
              _________________, a _________________ corporation having an office
              at
              _________________ ("Assignor") and _________________, having an office
              at
              _________________ ("Assignee") and Wells Fargo Bank, N.A. (the "Company"),
              having an office at 1 Home Campus, Des Moines, IA 50328-0001:

            

            For
              and
              in consideration of the sum of one dollar ($1.00) and other valuable
              consideration the receipt and sufficiency of which are hereby acknowledged,
              and
              of the mutual covenants herein contained, the parties hereto hereby
              agree as
              follows:

            

            1. With
              respect to the Mortgage Loans listed on Exhibit A hereto, the Assignor
              hereby
              grants, transfers and assigns to Assignee all of the right, title and
              interest
              of Assignor, as Purchaser, in, to and under that certain Seller's Warranties
              and
              Servicing Agreement, (the "Seller's Warranties and Servicing Agreement"),
              dated
              as of March 1, 2006, by and between Nomura Credit & Capital, Inc. (the
              "Purchaser"), and the Company, and the Mortgage Loans delivered thereunder
              by
              the Company to the Assignor.

            

            2. The
              Assignor warrants and represents to, and covenants with, the Assignee
              that:

            

            a. The
              Assignor is the lawful owner of the Mortgage Loans with the full right
              to
              transfer the Mortgage Loans free from any and all claims and encumbrances
              whatsoever;

            

            b. The
              Assignor has not received notice of, and has no knowledge of, any offsets,
              counterclaims or other defenses available to the Company with respect
              to the
              Seller's Warranties and Servicing Agreement or the Mortgage Loans;

            

            c. The
              Assignor has not waived or agreed to any waiver under, or agreed to
              any
              amendment or other modification of, the Seller's Warranties and Servicing
              Agreement or the Mortgage Loans, including without limitation the transfer
              of
              the servicing obligations under the Seller's Warranties and Servicing
              Agreement.
              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, the Seller's Warranties and Servicing Agreement
              or the
              Mortgage Loans; and

            

            d. Neither
              the Assignor nor anyone acting on its behalf has offered, transferred,
              pledged,
              sold or otherwise disposed of the Mortgage Loans, any interest in the
              Mortgage
              Loans or any other similar security to, or solicited any offer to buy
              or accept
              a transfer, pledge or other disposition of the Mortgage Loans, any
              interest in
              the Mortgage Loans or any other similar security from, or otherwise
              approached
              or negotiated with respect to the Mortgage Loans, any interest in the
              Mortgage
              Loans or any other similar security with, any person in any manner,
              or made any
              general solicitation by means of general advertising or in any other
              manner, or
              taken any other action which would constitute a distribution of the
              Mortgage
              Loans under the Securities Act of 1933 (the "33 Act") or which would
              render the
              disposition of the Mortgage Loans a violation of Section 5 of the 33
              Act or
              require registration pursuant thereto.

            

            3. That
              Assignee warrants and represent to, and covenants with, the Assignor
              and the
              Company pursuant to Section 12.10 of the Seller's Warranties and Servicing
              Agreement that:

            

            a. The
              Assignee agrees to be bound, as Purchaser, by all of the terms, covenants
              and
              conditions of the Seller's Warranties and Servicing Agreement, the
              Mortgage
              Loans and from and after the date hereof, the Assignee assumes for
              the benefit
              of each of the Company and the Assignor all of the Assignor's obligations
              as
              purchaser thereunder;

            

            b. The
              Assignee understands that the Mortgage Loans have not been registered
              under the
              33 Act or the securities laws of any state;

            

            c. The
              purchase price being paid by the Assignee for the Mortgage Loans are
              in excess
              of $250,000.00 and will be paid by cash remittance of the full purchase
              price
              within 60 days of the sale;

            

            d. The
              Assignee is acquiring the Mortgage Loans for investment for its own
              account only
              and not for any other person. In this connection, neither the Assignee
              nor any
              person authorized to act therefor has offered to sell the Mortgage
              Loans by
              means of any general advertising or general solicitation within the
              meaning of
              Rule 502(c) of US Securities and Exchange Commission Regulation D,
              promulgated
              under the 1933 Act;

            

            e. The
              Assignee considers itself a substantial sophisticated institutional
              investor
              having such knowledge and experience in financial and business matters
              that it
              is capable of evaluating the merits and risks of investment in the
              Mortgage
              Loans;

            

            f. The
              Assignee has been furnished with all information regarding the Mortgage
              Loans
              that it has requested from the Assignor or the Company;

            

            g. Neither
              the Assignee nor anyone acting on its behalf has offered, transferred,
              pledged,
              sold or otherwise disposed of the Mortgage Loans, any interest in the
              Mortgage
              Loans or any other similar security to, or solicited any offer to buy
              or
              accepted a transfer, pledge or other disposition of the Mortgage Loans,
              any
              interest in the Mortgage Loans or any other similar security from,
              or otherwise
              approached or negotiated with respect to the Mortgage Loans, any interest
              in the
              Mortgage Loans or any other similar security with, any person in any
              manner
              which would constitute a distribution of the Mortgage Loans under the
              33 Act or
              which would render the disposition of the Mortgage Loans a violation
              of Section
              5 of the 33 Act or require registration pursuant thereto, nor will
              it act, nor
              has it authorized or will it authorize any person to act, in such manner
              with
              respect to the Mortgage Loans; and

            

            h. Either
              (1) the Assignee is not an employee benefit plan ("Plan") within the
              meaning of
              section 3(3) of the Employee Retirement Income Security Act of 1974,
              as amended
              ("ERISA") or a plan (also "Plan") within the meaning of section 4975(e)(1)
              of
              the Internal Revenue Code of 1986 ("Code"), and the Assignee is not
              directly or
              indirectly purchasing the Mortgage Loans on behalf of, investment manager
              of, as
              named fiduciary of, as Trustee of, or with assets of, a Plan; or (2)
              the
              Assignee's purchase of the Mortgage Loans will not result in a prohibited
              transaction under section 406 of ERISA or section 4975 of the Code.

            

            i. The
              Assignee's address for purposes of all notices and correspondence related
              to the
              Mortgage Loans and the Seller's Warranties and Servicing Agreements
              is:

            

            ________________.

            

            

            The
              Assignee's wire transfer instructions for purposes of all remittances
              and
              payments related to the Mortgage Loans and the Seller's Warranties
              and Servicing
              Agreement is:

            

            ___________________

            For
              the
              account of

            A/C#:

            ABA#:

            ATTN:
              Investors Accounting

            Taxpayer
              ID#:

            

            4.
              Accuracy of the Servicing Agreement.

            

            The
              Company and the Assignor represent and warrant to the Assignee that
              (i) attached
              hereto as Exhibit B is a true, accurate and complete copy of the Seller’s
              Warranties and Servicing Agreement and all amendments and modifications,
              if any,
              (ii) the Seller’s Warranties and Servicing Agreement has not been amended or
              modified in any respect, except as set forth in this Agreement, (iii)
              no notice
              of termination has been given to the Company under the Sellers’ Warranties and
              Servicing Agreement, and (iv) through the date hereof the Company has
              serviced
              the Mortgage Loans in accordance with the terms of the Seller’s Warranties and
              Servicing Agreement.

            

            5.
              Recognition of Assignee.

            

            From
              and
              after the date hereof, the Company shall note the transfer of the Mortgage
              Loans
              to the Assignee in its books and records, the Company shall recognize
              the
              Assignee as the owner of the Mortgage Loans and the Company shall service
              the
              Mortgage Loans for the benefit of the Assignee pursuant to the Seller’s
              Warranties and Servicing Agreement, the terms of which are incorporated
              herein
              by reference. It is the intention of the Assignor, the Company and
              the Assignee
              that the Seller’s Warranties and Servicing Agreement shall be binding upon and
              inure to the benefit of the Company and the Assignee and their respective
              successors and assigns.

            

            [Signatures
              Follow]

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

            

            

            IN
              WITNESS WHEREOF, the parties have caused this Assignment, Assumption
              and
              Recognition Agreement be executed by their duly authorized officers
              as of the
              date first above written.

            

            

            
              	 	 	 
	
                      Assignor

                    	 	 	 	 	 	
                      Assignee

                    	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      By:

                    	 	 	
                      By:

                    	 
	
                      Name:

                    	 	 	
                      Name:

                    	 
	
                      Its:

                    	 	 	
                      Its:

                    	 

            

            

            

            

            
              	
                      Tax
                        Payer Identification No.:

                    	
                      Tax
                        Payer Identification No.:

                    
	 	 	 	 	 	
                       

                    	 	 	 	 

            

            

            

            

            
              	
                      WELLS
                        FARGO BANK, N.A.

                      Company

                    	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      By:

                    	 	 	 	 
	
                      Name:

                    	 	 	 	 
	
                      Its:

                    	 	 	 	 

            

            

            

            

            

 

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          ATTACHMENT
            3

           

          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
            : Standard
            File Layout - Delinquency Reporting

          

            *The
            column/header names in bold
            are
            the minimum fields Wells Fargo must receive from every
            Servicer

          
            	
                    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 ($)

                  
	
                    MOTION_FOR_RELIEF_DATE

                  	
                    The
                      date the Motion for Relief was filed

                  	
                    10

                  	
                    MM/DD/YYYY

                  
	
                    FRCLSR_BID_AMT

                  	
                    The
                      foreclosure sale bid amount

                  	
                    11

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    FRCLSR_SALE_TYPE

                  	
                    The
                      foreclosure sales results: REO, Third Party, Conveyance to
                      HUD/VA

                  	
                     

                  	
                     

                  
	
                    REO_PROCEEDS

                  	
                    The
                      net proceeds from the sale of the REO property. 

                  	
                     

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    BPO_DATE

                  	
                    The
                      date the BPO was done.

                  	
                     

                  	
                     

                  
	
                    CURRENT_BPO_VAL

                  	
                    The
                      current "as is" value of th property based on a brokers price
                      opinion.

                  	
                     

                  	
                     

                  
	
                    REPAIRED_BPO_PROP_VAL

                  	
                    The
                      amount the property would be worth if repairs are completed
                      pursuant to a
                      broker's price opinion.

                  	
                     

                  	
                     

                  
	
                    CURR_APP_VAL

                  	
                     The
                      current "as is" value of the property based on an
                      appraisal.

                  	
                    11

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    CURRENT_FICO

                  	
                    The
                      current FICO score

                  	
                     

                  	
                     

                  
	
                    HAZARD_CLAIM_FILED_DATE

                  	
                    The
                      date the Hazard Claim was filed with the Hazard Insurance
                      Company.

                  	
                    10

                  	
                    MM/DD/YYYY

                  
	
                    HAZARD_CLAIM_AMT

                  	
                    The
                      amount of the Hazard Insurance Claim filed.

                  	
                    11

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    HAZARD_CLAIM_PAID_DATE

                  	
                    The
                      date the Hazard Insurance Company disbursed the claim
                      payment.

                  	
                    10

                  	
                    MM/DD/YYYY

                  
	
                    HAZARD_CLAIM_PAID_AMT

                  	
                    The
                      amount the Hazard Insurance Company paid on the claim.

                  	
                    11

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    POOL_CLAIM_FILED_DATE

                  	
                    The
                      date the claim was filed with the Pool Insurance Company.

                  	
                    10

                  	
                    MM/DD/YYYY

                  
	
                    POOL_CLAIM_AMT

                  	
                    The
                      amount of the claim filed with the Pool Insurance Company.

                  	
                    11

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    POOL_CLAIM_PAID_DATE

                  	
                    The
                      date the claim was settled and the check was issued by the
                      Pool
                      Insurer.

                  	
                    10

                  	
                    MM/DD/YYYY

                  
	
                    POOL_CLAIM_AMT_PAID

                  	
                    The
                      amount paid on the claim by the Pool Insurance Company.

                  	
                    11

                  	
                    No
                      commas(,) or dollar signs ($)

                  
	
                    FORECLOSURE_FLAG

                  	
                    Y
                      or N

                  	
                     

                  	
                    Text

                  
	
                    BANKRUPTCY_FLAG

                  	
                    Y
                      or N

                  	
                     

                  	
                    Text

                  
	
                    NOD_DATE

                  	
                     

                  	
                     

                  	
                    MM/DD/YYYY

                  
	
                    MI_CLAIM_DATE

                  	
                    Date
                      Mortgage Insurance is filed

                  	
                     

                  	
                    MM/DD/YYYY

                  
	
                    NOI_DATE

                  	
                     

                  	
                     

                  	
                    MM/DD/YYYY

                  
	
                    ACTUAL_PAYMENT_PLAN_START_DATE

                  	
                     

                  	
                     

                  	
                    MM/DD/YYYY

                  
	
                    ACTUAL_PAYMENT_
                      PLAN_END_DATE

                  	
                     

                  	
                     

                  	
                     

                  
	
                    LIST_DATE

                  	
                     

                  	
                     

                  	
                    MM/DD/YYYY

                  
	
                    VACANCY/OCCUPANCY_STATUS

                  	
                    The
                      Occupancy status of the defaulted loan's collateral

                  	
                     

                  	
                    Text

                  
	
                    ACTUAL_REO_START_DATE

                  	
                     

                  	
                     

                  	
                    MM/DD/YYYY

                  
	
                    SALES_PRICE

                  	
                     

                  	
                     

                  	
                    Number

                  
	
                    UPB_LIQUIDATION

                  	
                    Outstanding
                      Pricipal Balance of the loan upon Liquidation

                  	
                     

                  	
                    Number

                  
	
                    REALIZED_LOSS/GAIN

                  	
                    As
                      defined in the Servicing Agreement

                  	
                     

                  	
                    Number

                  
	
                    LIQUIDATION_PROCEEDS

                  	
                     

                  	
                     

                  	
                    Number

                  
	
                    PREPAYMENT_CHARGES_COLLECTED

                  	
                    The
                      amount of Prepayment Charges received

                  	
                     

                  	
                    Number

                  
	
                    PREPAYMENT_CALCULATION

                  	
                    The
                      formula behind the prepayment charge

                  	
                     

                  	
                    Text

                  
	
                    PAYOFF_DATE

                  	
                    The
                      date on which the loan was paid off

                  	
                     

                  	
                    MM/DD/YYYY

                  

          

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          

          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
            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
            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. 

          (j)  

           

          (k)  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.

           

          (l)  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

                  
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

          

          

          

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          

           

          ATTACHMENT
            4

           

          BACK-UP
            CERTIFICATION

           

          Re: __________
            (the “Trust”)

           

           

          Asset-Backed
            Certificates, Series 2006-HE3

           

          I,
            [identify the certifying individual], certify to Nomura Home Equity Loan,
            Inc.
            (the “Depositor”), HSBC Bank USA, National Association (the “Trustee”) and Wells
            Fargo Bank, N.A. (the “Master Servicer”), and their respective officers, 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 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 and 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 Seller’s Warranties and Servicing Agreement, dated as of March 1, 2006,
            between Wells Fargo Bank, N.A. and Nomura
            Credit & Capital, Inc.,
            as
            modified by the Assignment, Assumption and Recognition Agreement, dated
            as of
            August 31, 2006, among Nomura Credit & Capital, Inc., Nomura Home Equity
            Loan, Inc. and Wells Fargo Bank, N.A. (together, the “Servicing
            Agreement”).

           

          
            	
                    Date:

                  	 	
                  	
                  
	 
	 	
                  
	
                    [Signature]

                  
	 
	 	
                  
	
                    [Title]

                  

          

          

           

           

        

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        X-1

       

      FORM
        OF SERVICING CRITERIA

      

      
        	
                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

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Exhibit
        : Standard
        File Layout - Delinquency Reporting

      

        *The
        column/header names in bold
        are
        the minimum fields Wells Fargo must receive from every
        Servicer

       

      
        	
                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 ($)

              
	
                MOTION_FOR_RELIEF_DATE

              	
                The
                  date the Motion for Relief was filed

              	
                10

              	
                MM/DD/YYYY

              
	
                FRCLSR_BID_AMT

              	
                The
                  foreclosure sale bid amount

              	
                11

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FRCLSR_SALE_TYPE

              	
                The
                  foreclosure sales results: REO, Third Party, Conveyance to
                  HUD/VA

              	
                 

              	
                 

              
	
                REO_PROCEEDS

              	
                The
                  net proceeds from the sale of the REO property. 

              	
                 

              	
                No
                  commas(,) or dollar signs ($)

              
	
                BPO_DATE

              	
                The
                  date the BPO was done.

              	
                 

              	
                 

              
	
                CURRENT_BPO_VAL

              	
                The
                  current "as is" value of th property based on a brokers price
                  opinion.

              	
                 

              	
                 

              
	
                REPAIRED_BPO_PROP_VAL

              	
                The
                  amount the property would be worth if repairs are completed pursuant
                  to a
                  broker's price opinion.

              	
                 

              	
                 

              
	
                CURR_APP_VAL

              	
                 The
                  current "as is" value of the property based on an
                  appraisal.

              	
                11

              	
                No
                  commas(,) or dollar signs ($)

              
	
                CURRENT_FICO

              	
                The
                  current FICO score

              	
                 

              	
                 

              
	
                HAZARD_CLAIM_FILED_DATE

              	
                The
                  date the Hazard Claim was filed with the Hazard Insurance
                  Company.

              	
                10

              	
                MM/DD/YYYY

              
	
                HAZARD_CLAIM_AMT

              	
                The
                  amount of the Hazard Insurance Claim filed.

              	
                11

              	
                No
                  commas(,) or dollar signs ($)

              
	
                HAZARD_CLAIM_PAID_DATE

              	
                The
                  date the Hazard Insurance Company disbursed the claim
                  payment.

              	
                10

              	
                MM/DD/YYYY

              
	
                HAZARD_CLAIM_PAID_AMT

              	
                The
                  amount the Hazard Insurance Company paid on the claim.

              	
                11

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_FILED_DATE

              	
                The
                  date the claim was filed with the Pool Insurance Company.

              	
                10

              	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT

              	
                The
                  amount of the claim filed with the Pool Insurance Company.

              	
                11

              	
                No
                  commas(,) or dollar signs ($)

              
	
                POOL_CLAIM_PAID_DATE

              	
                The
                  date the claim was settled and the check was issued by the Pool
                  Insurer.

              	
                10

              	
                MM/DD/YYYY

              
	
                POOL_CLAIM_AMT_PAID

              	
                The
                  amount paid on the claim by the Pool Insurance Company.

              	
                11

              	
                No
                  commas(,) or dollar signs ($)

              
	
                FORECLOSURE_FLAG

              	
                Y
                  or N

              	
                 

              	
                Text

              
	
                BANKRUPTCY_FLAG

              	
                Y
                  or N

              	
                 

              	
                Text

              
	
                NOD_DATE

              	
                 

              	
                 

              	
                MM/DD/YYYY

              
	
                MI_CLAIM_DATE

              	
                Date
                  Mortgage Insurance is filed

              	
                 

              	
                MM/DD/YYYY

              
	
                NOI_DATE

              	
                 

              	
                 

              	
                MM/DD/YYYY

              
	
                ACTUAL_PAYMENT_PLAN_START_DATE

              	
                 

              	
                 

              	
                MM/DD/YYYY

              
	
                ACTUAL_PAYMENT_
                  PLAN_END_DATE

              	
                 

              	
                 

              	
                 

              
	
                LIST_DATE

              	
                 

              	
                 

              	
                MM/DD/YYYY

              
	
                VACANCY/OCCUPANCY_STATUS

              	
                The
                  Occupancy status of the defaulted loan's collateral

              	
                 

              	
                Text

              
	
                ACTUAL_REO_START_DATE

              	
                 

              	
                 

              	
                MM/DD/YYYY

              
	
                SALES_PRICE

              	
                 

              	
                 

              	
                Number

              
	
                UPB_LIQUIDATION

              	
                Outstanding
                  Pricipal Balance of the loan upon Liquidation

              	
                 

              	
                Number

              
	
                REALIZED_LOSS/GAIN

              	
                As
                  defined in the Servicing Agreement

              	
                 

              	
                Number

              
	
                LIQUIDATION_PROCEEDS

              	
                 

              	
                 

              	
                Number

              
	
                PREPAYMENT_CHARGES_COLLECTED

              	
                The
                  amount of Prepayment Charges received

              	
                 

              	
                Number

              
	
                PREPAYMENT_CALCULATION

              	
                The
                  formula behind the prepayment charge

              	
                 

              	
                Text

              
	
                PAYOFF_DATE

              	
                The
                  date on which the loan was paid off

              	
                 

              	
                MM/DD/YYYY

              

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        X-2

       

      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
        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
        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. 

       

      1.  

       

      2.  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.

       

      3.     
          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__________________________

                  	 	
                    ________________

                  	 
	
                    HOA/Condo
                      Fees_______________________

                  	 	
                    ________________

                  	 
	
                    ______________________________________

                  	 	
                    ________________

                  	 
	
                    ______________________________________

                  	 	
                    ________________

                  	 
	
                    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

                  	 	 
	 	
                    HUD
                      Part B

                  	
                    ________________

                  	
                    (18b)

                  
	
                    (19)

                  	
                    Pool
                      Insurance Proceeds

                  	
                    ________________

                  	
                    (19)

                  
	
                    (20)

                  	
                    Proceeds
                      from Sale of Acquired Property

                  	
                    ________________

                  	
                    (20)

                  
	
                    (21)

                  	
                    Other
                      (itemize)

                  	
                    ________________

                  	
                    (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<PAGE>

                                                                    EXHIBIT 10.1

                           FORM OF ADVISORY AGREEMENT

     THIS ADVISORY AGREEMENT (this "AGREEMENT"), dated as of ___________ ____,
2006 and effective as of the date the Registration Statement (as defined below)
is declared effective by the Securities and Exchange Commission (the "EFFECTIVE
DATE"), is by and among NNN HEALTHCARE/OFFICE REIT, INC., a Maryland corporation
(the "COMPANY"), NNN HEALTHCARE/OFFICE REIT HOLDINGS, L.P., a Delaware limited
partnership (the "PARTNERSHIP"), NNN HEALTHCARE/OFFICE REIT ADVISOR, LLC, a
Delaware limited liability company and, solely for purposes of Section 32 of
this Agreement, TRIPLE NET PROPERTIES, LLC, a Virginia limited liability company
("TRIPLE NET").

                                   WITNESSETH

     WHEREAS, the Company is filing with the Securities and Exchange Commission
a Registration Statement on Form S-11 (the "REGISTRATION STATEMENT") covering
the initial public offering of its common stock, par value $0.01 per share (the
"SHARES");

     WHEREAS, the Company intends to qualify as a REIT (as defined below), and
intends to invest its funds in investments permitted by the terms of the
Company's Articles of Incorporation and Sections 856 through 860 of the Code (as
defined below);

     WHEREAS, the Company is the general partner of the Partnership and intends
to conduct all of its business and make all of its investments in Properties and
Real Estate Related Securities through the Partnership;

     WHEREAS, the Company and the Partnership desire to avail themselves of the
experience, sources of information, advice, assistance and certain facilities
available to the Advisor (as defined below) and to have the Advisor undertake
the duties and responsibilities hereinafter set forth, on behalf of, and subject
to the supervision of, the Board of Directors of the Company all as provided
herein; and

     WHEREAS, the Advisor is willing to undertake to render such services,
subject to the supervision of the Board of Directors, on the terms and
conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

     1. DEFINITIONS. As used in this Agreement, the following terms have the
definitions hereinafter indicated:

     ACQUISITION EXPENSES. Any and all expenses incurred by the Company, the
Partnership, the Advisor, or any Affiliate of either in connection with the
selection, evaluation, acquisition and development of, and investment in
Properties, whether or not acquired or made, including, but not limited to,
legal fees and expenses, travel and communications expenses, cost of appraisals
and surveys, nonrefundable option payments on property not acquired, accounting
fees and expenses, computer use related expenses, architectural, engineering and
other property reports, environmental and asbestos audits, title insurance and
escrow fees, loan fees or points or any fee of a similar nature paid to a third
party, however designated, transfer taxes, and personnel and miscellaneous
expenses related to the selection, evaluation and acquisition of properties.

<PAGE>

     ADVISOR. NNN Healthcare/Office REIT Advisor, LLC, a Delaware limited
liability company, any successor advisor to the Company and the Partnership to
which NNN Healthcare/Office REIT Advisor, LLC or any successor advisor
subcontracts substantially all of its functions.

     AFFILIATE OR AFFILIATED. An Affiliate of another Person includes only the
following: (i) any Person directly or indirectly owning, controlling, or holding
with the power to vote ten percent (10%) or more of the outstanding voting
securities of such other Person; (ii) any Person ten percent (10%) or more of
whose outstanding voting securities are directly or indirectly owned,
controlled, or held, with power to vote, by such other Person; (iii) any Person
directly or indirectly controlling, controlled by, or under common control with
such other Person; (iv) any executive officer, director, trustee, or general
partner of such other Person; and (v) any legal entity for which such Person
acts as an executive officer, director, trustee, or general partner. An entity
shall not be deemed to control or be under common control with an
Advisor-sponsored program unless (i) the entity owns ten percent (10%) or more
of the voting equity interests of such program or (ii) a majority of the board
of directors (or equivalent governing body) of such program is comprised of
Affiliates of the entity.

     APPRAISED VALUE. Value according to an appraisal made by an Independent
Appraiser.

     ARTICLES OF INCORPORATION. The Articles of Incorporation of the Company
under Title 2 of the Corporations and Associations Article of the Annotated Code
of Maryland dated as of April 20, 2006, as amended from time to time.

     ASSET MANAGEMENT FEE. The Asset Management Fee payable to the Advisor as
defined in Section 8(b).

     AVERAGE INVESTED ASSETS. For a specified period, the average of the
aggregate Book Value of the assets of the Company invested, directly or
indirectly, in Real Estate Related Securities or Properties, before reserves for
depreciation, bad debts or other similar non-cash reserves, computed by taking
the average of such values at the end of each month during such period.

     BOARD OF DIRECTORS OR BOARD. The persons holding such office, as of any
particular time, under the Articles of Incorporation of the Company, whether
they be the Directors named therein or additional or successor Directors.

     BOOK VALUE. The value of an asset on the books of the Company, before
allowance for depreciation or amortization.

     BYLAWS. The bylaws of the Company, as the same are in effect from time to
time.

     CAPPED O&O EXPENSES. All Organizational and Offering Expenses other than
selling commissions, the marketing support fee and the due diligence
reimbursement as described under "Plan of Distribution" to the Registration
Statement.

     CAUSE. With respect to the termination of this Agreement, fraud, criminal
conduct, willful misconduct or willful or grossly negligent breach of fiduciary
duty by the Advisor, or a material breach of this Agreement by the Advisor,
provided that (i) the Advisor does not cure any such material breach within
thirty (30) days of receiving notice of such material breach from the Company or
the Partnership, or (ii) such material breach is not of a nature that can be
remedied within such period.

     CODE. Internal Revenue Code of 1986, as amended from time to time, or any
successor statute thereto. Reference to any provision of the Code shall mean
such provision as in effect from time to time,

                                      -2-

<PAGE>

as the same may be amended, and any successor provision thereto, as interpreted
by any applicable regulations as in effect from time to time.

     COMPANY. NNN Healthcare/Office REIT, Inc., a corporation organized under
the laws of the State of Maryland.

     COMPETITIVE REAL ESTATE COMMISSION. A real estate or brokerage commission
for the purchase or sale of a property which is reasonable, customary, and
competitive in light of the size, type, and location of the property.

     CONTRACT PURCHASE PRICE. The amount actually paid or allocated in respect
of the purchase, development, construction or improvement of a Property, in each
case exclusive of Real Estate Commissions and Acquisition Expenses.

     CONTRACT SALES PRICE. The total consideration received by the Company for
the sale of a Property exclusive of the applicable Disposition Fee.

     DIRECTOR. A member of the Board of Directors of the Company.

     DISPOSITION FEE. The fee payable to the Advisor under certain circumstances
in connection with the Sale of one or more Properties pursuant to Section 8(c).

     DISTRIBUTIONS. Any distributions of money or other property by the Company
to owners of Shares, including distributions that may constitute a return of
capital for federal income tax purposes.

     FISCAL YEAR. Any period for which any income tax return is submitted by the
Company to the Internal Revenue Service and which is treated by the Internal
Revenue Service as a reporting period.

     GOOD REASON. With respect to the termination of this Agreement, (i) any
failure to obtain a satisfactory agreement from any successor to the Company and
the Partnership to assume and agree to perform the Company's and the
Partnership's obligations under this Agreement; or (ii) any material breach of
this Agreement by the Company, provided that (x) the Company does not cure such
material breach within thirty (30) days of receiving notice of such material
breach from the Advisor, or (y) such material breach is not of a nature that can
be remedied within such period.

     GROSS INCOME. All cash receipts derived from the operation of any Property,
excluding (i) tenant security deposits unless and until such deposits are
forfeited upon a tenant default and (ii) proceeds from insurance claims,
condemnation proceedings, sales or refinancings.

     GROSS OFFERING PROCEEDS. The aggregate purchase price of all Shares sold
for the account of the Company through an Offering, without deduction for volume
discounts or Organizational and Offering Expenses. For the purpose of computing
Gross Offering Proceeds, the purchase price of any Share for which reduced
selling commissions are paid to the dealer manager or a soliciting dealer (where
net proceeds to the Company are not reduced) shall be deemed to be the full
amount of the offering price per Share pursuant to the prospectus for such
Offering without reduction.

     INDEPENDENT APPRAISER. A person or entity with no material current or prior
business or personal relationship with the Advisor or the Directors, who is
engaged to a substantial extent in the business of

                                      -3-

<PAGE>

rendering opinions regarding the value of assets of the type held by the
Company, and who is a qualified appraiser of real estate as determined by the
Board. Membership in a nationally recognized appraisal society such as the
American Institute of Real Estate Appraisers or the Society of Real Estate
Appraisers shall be conclusive evidence of such qualification.

     INDEPENDENT DIRECTOR. A Director who is not and within the last two years
has not been directly or indirectly associated with the Advisor by virtue of (i)
ownership of an interest in the Advisor or its Affiliates, (ii) employment by
the Advisor or its Affiliates, (iii) service as an officer or director of the
Advisor or its Affiliates, (iv) performance of services, other than as a
Director, for the Company, (v) service as a director or trustee of more than
three REITs advised by the Advisor, or (vi) maintenance of a material business
or professional relationship with the Advisor or any of its Affiliates. A
business or professional relationship is considered material if the gross income
derived by the Director from the Advisor and Affiliates (excluding fees for
serving as a director of the Company or other REIT or real estate programs
organized or advised by the Advisor or its Affiliates) exceeds five percent (5%)
of either the Director's annual gross income during either of the last two years
or the Director's net worth on a fair market value basis. An indirect
relationship shall include circumstances in which a Director's spouse, parents,
children, siblings, mothers or fathers-in-law, sons or daughters-in-law, or
brothers or sisters-in-law is or has been associated with the Advisor, any of
its Affiliates, or the Company.

     JOINT VENTURE. Any joint venture, partnership, limited liability company or
other Affiliate of the Company (other than the Partnership) that owns, in whole
or in part on behalf of the Company, any Properties.

     LEASE FEE. The Lease Fee payable to the Advisor, an Affiliate of the
Advisor or a non-affiliated third party as the Property Manager as defined in
Section 8(d).

     LISTING. The term "Listing" shall mean that the Shares have been approved
for trading on (i) the New York Stock Exchange, the American Stock Exchange, or
the Global Market or the Global Select Market of the Nasdaq Stock Market (or any
successor to such entities), or (ii) a national securities exchange (or tier or
segment thereof) that has listing standards that the U.S. Securities and
Exchange Commission has determined by rule are substantially similar to the
listing standards applicable to securities described in Section 18(b)(1)(A) of
the Securities Act of 1933, as amended. Upon such Listing, the Shares shall be
deemed Listed.

     NASAA GUIDELINES. The NASAA Statement of Policy Regarding Real Estate
Investment Trusts as in effect on the date hereof.

     NET INCOME. For any period, the total revenues applicable to such period,
less the total expenses applicable to such period excluding additions to
reserves for depreciation, bad debts or other similar non-cash reserves;
provided, however, Net Income for purposes of calculating total allowable
Operating Expenses (as defined herein) shall exclude the gain from the sale of
the Company's assets.

     OFFERING. Any offering of Shares that is registered with the SEC, excluding
Shares offered under any employee benefit plan.

     OFFERING STAGE. The period from the commencement of the Company's initial
public equity offering through the termination of the Company's last public
equity offering prior to Listing. For purposes of this definition, "public
equity offering" does not include offerings on behalf of selling stockholders or
offerings related to a distribution reinvestment plan, employee benefit plan or
the redemption of interests in the Partnership.

     OPERATING EXPENSES. All costs and expenses incurred by the Company, as
determined under generally accepted accounting principles, which in any way are
related to the operation of the Company or to Company business, including fees
paid to the Advisor, but excluding (i) the expenses of raising capital such as
Organizational and Offering Expenses, legal, audit, accounting, underwriting,
brokerage, listing, registration, and other fees, printing and other such
expenses and tax incurred in connection with

                                      -4-

<PAGE>

the issuance, distribution, transfer, registration and Listing of the Shares,
(ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as
depreciation, amortization and bad loan reserves, (v) incentive fees paid in
compliance with Section IV.F of the NASAA Guidelines and (vi) Real Estate
Commissions and Acquisition Expenses, real estate commissions on resale of
property, and other expenses connected with the acquisition, disposition, and
ownership of real estate interests, mortgage loans or other property (such as
the costs of foreclosure, insurance premiums, legal services, maintenance,
repair and improvement of property).

     ORGANIZATIONAL AND OFFERING EXPENSES. Any and all costs and expenses,
including selling commissions, the marketing support fee and the due diligence
expense reimbursement, incurred by the Advisor or any Affiliate in connection
with the formation, qualification and registration of the Company and the
marketing and distribution of the Shares, including, without limitation, the
following: total underwriting and brokerage discounts and commissions (including
fees of the underwriter's attorneys); printing, engraving, mailing and
distributing costs; salaries of employees while engaged in sales activity;
telephone and other telecommunications costs; all advertising and marketing
expenses (including the costs related to investor and broker-dealer sales
meetings); charges of transfer agents, registrars, trustees, escrow holders,
depositories and experts; and fees, expenses and taxes related to the filing,
registration and qualification of the sale of the Shares under federal and state
laws, including accountants' and attorneys' fees.

     PARTNERSHIP. NNN Healthcare/Office REIT Holdings, L.P., a Delaware limited
partnership formed to own and operate properties on behalf of the Company.

     PARTNERSHIP AGREEMENT. The Agreement of Limited Partnership of the
Partnership, as amended from time to time, between the Company, as General
Partner and the Advisor, as the initial Limited Partner.

     PERSON. An individual, corporation, partnership, estate, trust (including a
trust qualified under Section 401(a) or 501(c)(17) of the Code), a portion of a
trust permanently set aside for or to be used exclusively for the purposes
described in Section 642(c) of the Code, association, private foundation within
the meaning of Section 509(a) of the Code, joint stock company or other entity,
or any government or any agency or political subdivision thereof, and also
includes a group as that term is used for purposes of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended.

     PROPERTY OR PROPERTIES. Any land, rights in land (including leasehold
interests), and any buildings, structures, improvements, furnishings, fixtures
and equipment located on or used in connection with land and rights or interests
in land, or any portion thereof, transferred or conveyed to the Company or the
Partnership, either directly or indirectly, or such investments the Board of
Directors and the Advisor mutually designate as Properties to the extent such
investments could be classified as either Properties or Real Estate Related
Securities.

     PROPERTY MANAGEMENT FEE. The Property Management Fee payable to the
Advisor, an Affiliate of the Advisor or a no-affiliated third party as the
Property Manager as defined in Section 8(d).

     PROPERTY MANAGER. Any entity that has been retained to perform and carry
out property rental, leasing, operation and management services at one or more
of the Properties, excluding persons, entities or independent contractors
retained or hired to perform facility management or other services or tasks at a
particular Property.

     REIT. A real estate investment trust under Sections 856 through 860 of the
Code.

                                      -5-

<PAGE>

     REAL ESTATE COMMISSION. The Real Estate Commission payable to the Advisor
as defined in Section 8(a).

     REAL ESTATE RELATED SECURITIES. Any real estate related securities
investments transferred or conveyed to the Company or the Partnership, either
directly or indirectly, or such investments the Board of Directors and the
Advisor mutually designate as Real Estate Related Securities to the extent such
investments could be classified as either Real Estate Related Securities or
Properties.

     SALE OR SALES. (i) Any transaction or series of transactions whereby: (A)
the Company or the Partnership (except as described in other subsections of this
definition) sells, grants, transfers, conveys, or relinquishes its ownership of
any Property or portion thereof, including the lease of any Property consisting
of the building only, and including any event with respect to any Property which
gives rise to a significant amount of insurance proceeds or condemnation awards;
(B) the Company or the Partnership (except as described in other subsections of
this definition) sells, puts, transfers, conveys, or relinquishes its ownership
of all or substantially all of the interest of the Company or the Partnership in
any joint venture in which it is a co-venturer or partner; (C) any joint venture
(except as described in other subsections of this definition) in which the
Company or the Partnership as a co-venturer or partner sells, grants, transfers,
conveys, or relinquishes its ownership of any Property or portion thereof,
including any event with respect to any Property which gives rise to insurance
claims or condemnation awards; (D) the Company or the Partnership directly or
indirectly (except as described in other subsections of this definition) sells,
grants, conveys or relinquishes its interest in any loan or mortgage or any
portion thereof (including with respect to any mortgage or loan, all payments
thereunder or in satisfaction thereof other than regularly scheduled interest
payments) of amounts owed pursuant to such loan or mortgage and any event which
gives rise to the payment of a significant amount of insurance proceeds or
condemnation or similar award; or (E) the Company or the Partnership directly or
indirectly (except as described in other subsections of this definition) sells,
grants, transfers, conveys or relinquishes its ownership of any other Property
not previously described in this definition or any portion thereof, but (ii) not
including any transaction or series of transactions specified in clause (i)(A),
(i)(B), (i)(C), (i)(D) or (i)(E) above in which the proceeds of such transaction
or series of transactions are reinvested in one or more Properties within one
hundred eighty (180) days thereafter.

     STOCKHOLDERS. The registered holders of the Shares.

     TOTAL DEVELOPMENT COST. With regard to any Property acquired by the Company
prior to or during the development or acquisition stages, all costs and expenses
paid or incurred by the Company that are in any way related to the development
of such Property, including, but not limited to, land and construction costs.

     TRIPLE NET. Triple Net Properties, LLC, a Virginia limited liability
company.

     2%/25% GUIDELINES. The requirement pursuant to the NASAA Guidelines that,
in any twelve (12)-month period, total Operating Expenses not exceed the greater
of two percent (2%) of the Company's Average Invested Assets during such twelve
(12)-month period or twenty-five percent (25%) of the Company's Net Income over
the same twelve (12)-month period.

                                      -6-

<PAGE>

     2. APPOINTMENT. The Company and the Partnership appoints the Advisor to
serve as its advisor and asset manager as of the Effective Date, on the terms
and conditions set forth in this Agreement, and the Advisor accepts such
appointment as of the Effective Date.

     3. DUTIES AND AUTHORITY OF THE ADVISOR. The Advisor undertakes to use its
reasonable efforts (1) to present to the Company and the Partnership potential
investment opportunities in order to provide a continuing and suitable
investment program consistent with the investment objectives and policies of the
Company as determined and adopted from time to time by the Board and (2) to
manage, administer, promote, maintain, and improve the Properties on an overall
portfolio basis in a diligent manner. The services of the Advisor are to be of
scope and quality not less than those generally performed by professional asset
managers of other similar property portfolios. The Advisor shall make available
the full benefit of the judgment, experience and advice of the members of the
Advisor's organization and staff with respect to the duties it will perform
under this Agreement. The Advisor may also engage a Property Manager, which may
include Affiliates of the Advisor, to manage, promote, and lease the Properties.
To facilitate the Advisor's performance of these undertakings, but subject to
the restrictions included in Sections 4 and 7 and to the continuing and
exclusive authority of the Board and the general partner of the Partnership, the
Company and the Partnership hereby delegate to the Advisor the authority to, and
the Advisor hereby agrees to, either directly or by engaging an Affiliate:

     (A) serve as the Company's and the Partnership's investment and financial
advisor and, as requested by the Board, provide research and economic and
statistical data in connection with the Company's assets and investment
policies;

     (B) provide the daily management of the Company and the Partnership and
perform and supervise the various administrative functions reasonably necessary
for the management of the Company and the Partnership;

     (C) maintain and preserve the books and records of the Company, including
(i) a stock ledger reflecting a record of the Stockholders and their ownership
of the Company's Shares, (ii) acting as transfer agent for the Company's Shares
or selecting, engaging and overseeing the performance by a third party transfer
agent, and (iii) maintaining the accounting and other record-keeping functions
at the Property and Company levels;

     (D) investigate, select, and, on behalf of the Company and the Partnership,
engage and conduct business with such Persons as the Advisor deems necessary to
the proper performance of its obligations hereunder, including but not limited
to consultants, accountants, correspondents, lenders, technical advisors,
attorneys, brokers, underwriters, corporate fiduciaries, escrow agents,
depositaries, custodians, agents for collection, insurers, insurance agents,
banks, builders, developers, property owners, real estate management companies,
real estate operating companies, securities investment advisors, mortgagors, and
any and all agents for any of the foregoing, including Affiliates of the
Advisor, and Persons acting in any other capacity deemed by the Advisor
necessary or desirable for the performance of any of the foregoing services,
including but not limited to entering into contracts in the name of the Company
and the Partnership with any of the foregoing;

     (E) make investments in and dispositions of Real Estate Related Securities
within the discretionary limits and authority as granted by the Board and in
accordance with the Articles of Incorporation;

     (F) consult with the officers of the Company and the Board and assist the
Board in the formulation and implementation of the Company's financial policies,
and, as necessary, furnish the Board with advice and recommendations with
respect to the making of investments consistent with the

                                      -7-

<PAGE>

investment objectives and policies of the Company and in connection with any
borrowings proposed to be undertaken by the Company and the Partnership;

     (G) select joint venture partners, structure corresponding agreements and
oversee and monitor these relationships;

     (H) recommend to the Board of Directors appropriate transactions which
would provide liquidity to the Stockholders;

     (I) oversee the performance by a third party or affiliated Property Manager
of its duties, including collection of payments due from third parties under
contracts related to use of any Property and other assets of the Company and
payment of Property expenses and maintenance;

     (J) conduct periodic on-site visits to some or all (as the Advisor deems
reasonably necessary) of the Properties to inspect the physical condition of the
Properties and to evaluate the performance of a third party or affiliated
Property Manager of its duties;

     (K) review, analyze and comment upon the operating budgets, capital budgets
and leasing plans prepared and submitted by a third party or affiliated Property
Manager and aggregate these property budgets into the Company's overall budget;

     (L) review and analyze on-going financial information pertaining to each
Property, each Real Estate Related Security and the overall portfolio of
Properties and Real Estate Related Securities;

     (M) if a transaction requires approval by the Board of Directors, deliver
to the Board of Directors all documents requested by them in their evaluation of
the proposed investment in the Property or the Real Estate Related Security;

     (N) formulate and oversee the implementation of strategies for the
administration, promotion, management, operation, maintenance, improvement,
financing and refinancing, marketing, leasing, and disposition of Properties on
an overall portfolio basis;

     (O) subject to the provisions of Sections 3(m) and 4 hereof, (i) locate,
analyze and select potential investments in Properties, (ii) structure and
negotiate the terms and conditions of transactions pursuant to which investment
in Properties will be made; (iii) make investments in Properties on behalf of
the Company or the Partnership in compliance with the investment objectives and
policies of the Company; (iv) arrange for financing and refinancing and make
other changes in the asset or capital structure of, and dispose of, reinvest the
proceeds from the sale of, or otherwise deal with the investments in, Property;
(v) enter into leases, supply agreements and other income-producing contracts
relating to third party use of any Property and other assets of the Company;
(vi) enter into service contracts for any Property, including oversight of
Affiliated companies that perform property management services for the Company
and the Partnership; (vii) if applicable, oversee a non-affiliated Property
Manager and any other non-affiliated Persons who perform services for the
Company; and (viii) to the extent necessary, perform all other operational
functions for the maintenance and administration of such Property;

     (P) obtain the prior approval of the Board, any particular Directors
specified by the Board or any committee of the Board, as the case may be, for
any and all investments in Properties;

     (Q) negotiate on behalf of the Company and the Partnership with banks or
lenders for loans to be made to the Company, and negotiate on behalf of the
Company and the Partnership with investment banking firms and broker-dealers or
negotiate private sales of Shares and other securities or obtain loans

                                      -8-

<PAGE>

for the Company and the Partnership, but in no event in such a way so that the
Advisor shall be acting as broker-dealer or underwriter; provided, further, that
any fees and costs payable to third parties incurred by the Advisor in
connection with the foregoing shall be the responsibility of the Company or the
Partnership;

     (R) on behalf of the Company and the Partnership, maintain, with respect to
any Property and to the extent available, title insurance or other assurance of
title and customary fire, casualty and public liability insurance;

     (S) obtain reports (which may be prepared by the Advisor or its
Affiliates), where appropriate, concerning the value of investments or
contemplated investments of the Company and the Partnership in Properties or
Real Estate Related Securities;

     (T) from time to time, or at any time reasonably requested by the Board,
provide information or make reports to the Board related to its performance of
services to the Company and the Partnership under this Agreement;

     (U) from time to time, or at any time reasonably requested by the Board,
make reports to the Board of the investment opportunities it has presented to
other Advisor-sponsored programs or that it has pursued directly or through an
Affiliate;

     (V) provide the Company and the Partnership with all necessary cash
management services;

     (W) deliver to or maintain on behalf of the Company copies of all
appraisals obtained in connection with the investments in Properties and all
valuations of Real Estate Related Securities as may be required to be obtained
by the Board;

     (X) notify the Board of all proposed material transactions before they are
completed;

     (Y) at the direction of Company management, prepare the Company's periodic
reports and other filings made under the Securities Exchange Act of 1934, as
amended, and the Company's Post-Effective Amendments to the Registration
Statement as well as all related prospectuses, prospectus supplements and
supplemental sales literature and assist in connection with the filing of such
documents with the appropriate regulatory authorities;

     (Z) supervise the preparation and filing and distribution of returns and
reports to governmental agencies and to investors and act on behalf of the
Company in connection with investor relations;

     (AA) effect any private placements of Shares or other interests in
Properties as may be approved by the Board;

     (BB) establish and maintain bank accounts on behalf of the Company and the
Partnership pursuant to Section 5 of this Agreement;

     (CC) provide office space, equipment and personnel as required for the
performance of the foregoing services as the Advisor; and

     (DD) do all things it reasonably deems necessary to assure its ability to
render the services described in this Agreement.

                                      -9-

<PAGE>

     4. MODIFICATION OR REVOCATION OF AUTHORITY OF ADVISOR. The Board may, at
any time upon the giving of notice to the Advisor, modify or revoke the
authority or approvals set forth in Section 3; provided, however, that such
modification or revocation shall be effective upon receipt by the Advisor and
shall not be applicable to investment transactions to which the Advisor has
committed the Company and the Partnership prior to the date of receipt by the
Advisor of such notification.

     5. BANK ACCOUNTS. At the direction of the Board of Directors, the Advisor
may establish and maintain one or more bank accounts in its own name for the
account of the Company and the Partnership or in the name of the Company and the
Partnership and may collect and deposit into any such account or accounts, and
disburse from any such account or accounts, any money on behalf of the Company
and the Partnership, under such terms and conditions as the Board may approve,
provided that no funds shall be commingled with the funds of the Advisor; and
the Advisor shall from time to time render appropriate accountings of such
collections and payments to the Board and to the auditors of the Company.

     6. RECORDS; ACCESS. The Advisor shall maintain appropriate records of all
its activities hereunder and make such records available for inspection by the
Board and by counsel, auditors and authorized agents of the Company, at any time
or from time to time during normal business hours. The Advisor shall at all
reasonable times have access to the books and records of the Company and the
Partnership.

     7. LIMITATIONS ON ACTIVITIES. Anything else in this Agreement to the
contrary notwithstanding, the Advisor shall refrain from taking any action
which, in its sole judgment made in good faith, would (a) adversely affect the
status of the Company as a REIT, (b) subject the Company to regulation under the
Investment Company Act of 1940, as amended, or (c) violate any law, rule,
regulation or statement of policy of any governmental body or agency having
jurisdiction over the Company or the Partnership, its Shares or its other
securities, or otherwise not be permitted by the Articles of Incorporation or
Bylaws of the Company, except if such action shall be ordered by the Board, in
which case the Advisor shall notify promptly the Board of the Advisor's judgment
of the potential impact of such action and shall refrain from taking such action
until it receives further clarification or instructions from the Board. In such
event the Advisor shall have no liability for acting in accordance with the
specific instructions of the Board so given. Notwithstanding the foregoing, the
Advisor, its directors, officers, employees and stockholders, and stockholders,
directors and officers of the Advisor's Affiliates shall not be liable to the
Company, the Partnership, the Board or to the Stockholders for any act or
omission by the Advisor, its directors, officers, employees or stockholders, or
stockholders, directors or officers of the Advisor's Affiliates taken or omitted
to be taken in the performance of their duties under this Agreement except as
provided in Sections 19 and 20 of this Agreement.

     8. FEES.

     (A) REAL ESTATE COMMISSION. The Advisor or its Affiliates shall receive as
compensation for services rendered in connection with the investigation,
selection and acquisition of Properties (by purchase, investment or exchange) a
real estate commission payable by the Company (the "REAL ESTATE COMMISSION").
The total Real Estate Commission paid to the Advisor or its Affiliates for
services provided by the Advisor, its Affiliates or sub-contractors thereof
shall not exceed (i) three percent (3%) of the Contract Purchase Price of a
Property acquired directly or indirectly by the Company, and (ii) four percent
(4%) of the Total Development Cost of Properties developed by or on behalf of
the Company. At the Advisor's discretion, a portion of the Real Estate
Commission may be paid to third-party developers for services rendered. Real
Estate Commissions shall be payable on the acquisition of a specific Property,
on the acquisition of a portfolio of Properties through a purchase of assets,
controlling securities or by joint venture, by a merger or similar business
combination or other comparable transaction, or on the

                                      -10-

<PAGE>
completion of development of a Property or Properties for the Company. However,
the total of all Real Estate Commissions and Acquisition Expenses payable with
respect to any Properties shall not exceed six percent (6%) of the Contract
Purchase Price or the Total Development Cost (as applicable) of such Properties
unless fees in excess of such amount are approved by a majority of the Board of
Directors, including a majority of the Independent Directors.

     (B) ASSET MANAGEMENT FEE. Subject to the overall limitations contained
below in this Section 8(b), commencing on the Effective Date, the Advisor shall
be paid a monthly fee for the services rendered in connection with the
management of the Company's assets (the "ASSET MANAGEMENT FEE") in an amount
equal to (i) for Properties, one-twelfth of one percent (1%) of the Average
Invested Assets calculated as of the close of business on the last day of each
preceding month and (ii) for Real Estate Related Securities, one-twelfth of one
percent (1%) of the value of the Real Estate Related Securities under the
Advisor's management calculated as of the close of business on the last day of
each preceding month; provided, however, that the Company's obligation to pay
the Asset Management Fee shall be subject to the Stockholders receiving
annualized Distributions in an amount equal to five percent (5%) per annum of
Invested Capital (as such term is defined in the Articles of Incorporation). The
Asset Management Fee shall be payable by the Company in cash or in Shares at the
election of the Advisor in whole or in part, from time to time, by the Advisor
(without interest); provided, however, that the Company may object to the
Advisor's election and refuse to pay the Advisor in Shares if such payment would
result in a conflict with any provision of the Articles of Incorporation. If the
Advisor elects to receive the Asset Management Fee in the form of Shares and
such election does not conflict with any provision of the Articles of
Incorporation, then the Shares shall be valued at a price per share equal to the
average closing price of the Shares over the ten trading days immediately
preceding the date of such election if the Shares are Listed at such time. If
the Shares are not Listed and the Company is still in its Offering Stage at such
time, the Advisor will estimate the per share value of the Shares at a price per
share equal the most recent price paid to acquire a Share (excluding any Shares
sold at purchase price discounts for certain categories of purchasers). If the
Shares are not Listed and the Offering Stage has been completed for twelve (12)
months at such time, the Shares shall be valued at a price per share equal the
published annual estimated value of the shares as determined by the Advisor
based upon the Appraised Value of the Properties on the date of election.

     (C) DISPOSITION FEE. If the Advisor or an Affiliate of the Advisor provides
a substantial amount of the services (as determined by a majority of the
Independent Directors) in connection with the Sale of one or more Properties,
the Advisor or such Affiliate shall receive at closing a disposition fee equal
to the lessor of (i) one and three quarters percent (1.75%) of the Contract
Sales Price of such Property or Properties, or (ii) fifty percent (50%) of a
Competitive Real Estate Commission given the circumstances surrounding the sale
(the "DISPOSITION FEE"). In each case in which a Disposition Fee may be payable,
the precise amount of the fee within the limits set forth in the preceding
sentence shall be determined by the Board, including a majority of the
Independent Directors, based upon the extent of the services provided by the
Advisor or its Affiliate and market norms for the services provided.
Notwithstanding anything to the contrary herein, no Disposition Fee shall be
payable to the Advisor or its Affiliate for Property Sales if such Sales
involve the Company selling all or substantially all of its Properties in one
or more transactions designed to effectuate a business combination transaction
(as opposed to a Company liquidation, in which case the Disposition Fee would be
payable if the Advisor or an Affiliate provides a substantial amount of services
as provided above). Any Disposition Fee payable under this section may be paid
in addition to real estate commissions paid to non-Affiliates, provided that the
total real estate commissions (including such Disposition Fee) paid to all
Persons by the Company for each Property shall not exceed an amount equal to the
lesser of (i) six percent (6%) of the Contract Sales Price of the Property or
(ii) the Competitive Real Estate Commission for the Property.

     (D) PROPERTY MANAGEMENT FEE; LEASE FEE. Either the Advisor, an Affiliate of
the Advisor or a non-affiliated third party as the Property Manager shall
receive a monthly property management fee equal to four percent (4%) of the
monthly Gross Income from each Property managed by such Property Manager (the
"PROPERTY MANAGEMENT FEE"). In addition, the Advisor, an Affiliate of the

                                      -11-

<PAGE>
Advisor or a non-affiliated third party as the Property Manager may receive a
separate fee for any leasing activities in an amount not to exceed the fee
customarily charged in arm's length transactions by others rendering similar
services in the same geographic area for similar properties, as determined by a
survey of brokers and agents in such area (the "LEASE FEE"). The Lease Fee is
generally expected to range from three percent (3%) to eight percent (8%) of the
gross revenues generated during the initial term of the lease. In addition to
the above Property Management Fee and Lease Fee, for each Property managed
directly by a non-affiliated Property Manager but where an Affiliate of the
Advisor has oversight responsibility over such non-affiliated Property Manager,
the Company will pay such Affiliate of the Advisor a monthly oversight fee of up
to one percent (1%) of the Gross Income from the Property.

     (E) CHANGES TO FEE STRUCTURE. In the event of a Listing, the Company and
the Advisor shall negotiate in good faith to establish a fee structure
appropriate for a perpetual-life entity.

     9. EXPENSES.

     (A) REIMBURSABLE EXPENSES. In addition to the compensation paid to the
Advisor pursuant to Section 8 hereof, the Company or the Partnership shall pay
directly or reimburse the Advisor for all of the expenses paid or incurred by
the Advisor (to the extent not reimbursable by another party, such as the dealer
manager) in connection with the services it provides to the Company and the
Partnership pursuant to this Agreement, including, but not limited to:

          (i) the Organizational and Offering Expenses; provided, however, that
within sixty (60) days after the end of the month in which an Offering
terminates, the Advisor shall reimburse the Company to the extent (i) Capped O&O
Expenses borne by the Company exceed the maximum amount permitted pursuant to
the prospectus for the Offering and (ii) Organizational and Offering Expenses
borne by the Company exceed fifteen percent (15%) of the Gross Offering Proceeds
raised in a completed Offering;

          (ii) Real Estate Commissions and Acquisition Expenses incurred in
connection with the selection and acquisition of Properties, subject to the
aggregate six percent (6%) cap on Real Estate Commissions and Acquisition
Expenses set forth in Section 8(a) above;

          (iii) the actual cost of goods and services used by the Company and
obtained from entities not affiliated with the Advisor, other than Acquisition
Expenses, including brokerage fees paid in connection with the purchase and sale
of Real Estate Related Securities;

          (iv) interest and other costs for borrowed money, including discounts,
points and other similar fees;

          (v) taxes and assessments on income of the Company or any of the
Properties;

                                      -12-

<PAGE>

          (vi) costs associated with insurance required in connection with the
business of the Company or by the Board;

          (vii) expenses of managing and operating Properties owned by the
Company, whether payable to an Affiliate of the Company or a non-affiliated
Person;

          (viii) all compensation and expenses payable to the Independent
Directors and all expenses payable to the non-Independent Directors in
connection with their services to the Company and the Stockholders and their
attendance at meetings of the Directors and the Stockholders;

          (ix) expenses associated with Listing or with the issuance and
distribution of securities other than the Shares, such as selling commissions
and fees, advertising expenses, taxes, legal and accounting fees, listing and
registration fees;

          (x) expenses connected with payments of Distributions in cash or
otherwise made or caused to be made by the Company to the Stockholders;

          (xi) expenses of organizing, redomesticating, merging, liquidating or
dissolving the Company or of amending the Articles of Incorporation or the
Bylaws;

          (xii) expenses of maintaining communications with Stockholders or
their financial advisors, including the cost of preparation, printing, and
mailing annual reports and other Stockholder reports, proxy statements and other
reports required by governmental entities;

          (xiii) administrative service expenses (including (a) personnel costs;
provided, however, that no reimbursement shall be made for costs of personnel to
the extent that such personnel perform services in transactions for which the
Advisor receives a separate fee, and (b) the Company's allocable share of other
overhead of the Advisor such as rent and utilities);

          (xiv) transfer agent and registrar's fees and charges paid to third
parties;

          (xv) expenses associated with the disposition of Properties,
including, subject to Section 8(c), real estate commissions;

          (xvi) audit, accounting, legal and other professional fees; and

          (xvii) all other costs and expenses in any way relating to the
operations of the Company or the Partnership or the business of the Company or
the Partnership (other than any fees payable to the Advisor or its Affiliates).

     (B) OTHER SERVICES. Should the Board request that the Advisor, any
Affiliate of the Advisor or any director, officer or employee thereof render
services for the Company and the Partnership other than set forth in Section 3,
such additional services, if the Advisor elects to perform them, shall be
separately compensated at such rates and in such amounts as are agreed by the
Advisor and the Board, including a majority of the Independent Directors,
subject to the limitations contained in the Articles of Incorporation, shall not
exceed an amount that would be paid to nonaffiliated third parties for similar
services, and shall not be deemed to be services pursuant to the terms of this
Agreement.

     (C) TIMING OF AND LIMITATIONS ON REIMBURSEMENTS.

          (i) Expenses incurred by the Advisor on behalf of the Company and the
Partnership and payable pursuant to this Section 9 shall be reimbursed no less
than monthly to the Advisor. The

                                      -13-

<PAGE>

Advisor shall prepare a statement documenting the expenses of the Company and
the Partnership during each quarter, and shall deliver such statement to the
Company and the Partnership within forty-five (45) days after the end of each
quarter.

          (ii) Notwithstanding anything else in this Section 9 to the contrary,
the expenses enumerated in this Section 9 shall not become reimbursable out of
the proceeds of an Offering to the Advisor unless and until the Company has
raised the minimum offering amount, if any, as provided in the prospectus for
the Offering.

          (iii) The Company shall not reimburse the Advisor at the end of any
fiscal quarter Operating Expenses that, in the four consecutive fiscal quarters
then ended (the "EXPENSE YEAR") exceed (the "EXCESS AMOUNT") the 2%/25%
Guidelines for such year unless a majority of the Independent Directors
determines that such excess was justified, based on unusual and nonrecurring
factors which a majority of the Independent Directors deems sufficient. If a
majority of the Independent Directors does not approve such excess as being so
justified, any Excess Amount paid to the Advisor during a fiscal quarter shall
be repaid to the Company. If a majority of the Independent Directors determines
such excess was justified, then within sixty (60) days after the end of any
fiscal quarter of the Company for which total reimbursed Operating Expenses for
the Expense Year exceed the 2%/25% Guidelines, the Advisor, at the direction of
a majority of the Independent Directors, shall send to the Stockholders a
written disclosure of such fact, together with an explanation of the factors the
Independent Directors considered in determining that such excess expenses were
justified. The Company will ensure that such determination will be reflected in
the minutes of the meetings of the Board of Directors. All figures used in the
foregoing computation shall be determined in accordance with generally accepted
accounting principles applied on a consistent basis.

          (iv) The foregoing reimbursements of expenses, as limited by this
Agreement, will be made regardless of whether any cash distributions are made to
the Stockholders.

     10. STATEMENTS. The Advisor shall furnish to the Company not later than the
thirtieth (30th) day following the end of each Fiscal Year, a statement showing
a computation of the fees or other compensation payable to the Advisor or an
Affiliate of the Advisor with respect to such Fiscal Year under Sections 8 and 9
hereof. The final settlement of compensation payable under Sections 8 and 9
hereof for each Fiscal Year shall be subject to adjustments in accordance with,
and upon completion of, the annual audit of the Company's financial statements.

     11. INTERNALIZATION OF THE ADVISOR. In the event that the Company's assets
and income are, in the view of the Board of Directors, including a majority of
the Independent Directors, of sufficient size such that internalizing the
management functions by the Advisor and the Property Manager is in the best
interests of the Stockholders, the compensation payable to the Advisor upon such
internalization shall be agreed upon by the Independent Directors and the
Advisor.

     12. OTHER ACTIVITIES OF THE ADVISOR. Nothing herein contained shall prevent
the Advisor from engaging in other activities, including, without limitation,
the rendering of advice to other Persons (including other REITs) and the
management of other programs advised, sponsored or organized by the Advisor or
its Affiliates; nor shall this Agreement limit or restrict the right of any
director, officer, employee, or stockholder of the Advisor or its Affiliates to
engage in any other business or to render services of any kind to any other
partnership, corporation, firm, individual, trust or association. The Advisor
may, with respect to any investment in which the Company or the Partnership is a
participant, also render advice and service to each and every other participant
therein. The Advisor shall report to the Board the existence of any condition or
circumstance, existing or anticipated, of which it has knowledge, which creates
or could create a conflict of interest between the Advisor's obligations to the
Company and

                                      -14-

<PAGE>

the Partnership and its obligations to or its interest in any other partnership,
corporation, firm, individual, trust or association.

     13. INFORMATION FURNISHED TO THE ADVISOR. The Board of Directors will keep
the Advisor informed concerning the investment and financing policies of the
Company. The Board of Directors shall notify the Advisor promptly of its
intention to make any investments or to sell or dispose of any existing
investments. Upon request of the Advisor, the Company shall furnish the Advisor
with a certified copy of any Company financial statements, a signed copy of each
report prepared by independent certified public accountants, and such other
information with regard to its affairs as the Advisor may reasonably request.

     14. RELATIONSHIP OF ADVISOR AND COMPANY. The Company, the Partnership and
the Advisor are not partners or joint venturers with each other, and nothing in
this Agreement shall be construed to make them such partners or joint venturers
or impose any liability as such on either of them.

     15. TERM; RENEWAL OF AGREEMENT. This Agreement shall continue in force
until the first anniversary of the Effective Date, subject to an unlimited
number of successive one-year renewals upon mutual consent of the parties. The
Company, acting through the Board, will evaluate the performance of the Advisor
annually before renewing the Agreement, and each such renewal shall be for a
term of no more than one year.

     16. TERMINATION.

     (A) BY EITHER PARTY. This Agreement may be terminated upon sixty (60) days
written notice without cause or penalty, by either party (if by the Company,
only upon approval of a majority of the Independent Directors).

     (B) BY THE COMPANY. At the sole option of the Company, this Agreement shall
be terminated immediately, subject to the thirty (30)-day cure period for a "for
Cause" termination due to a material breach of this Agreement, upon written
notice of termination from the Board of Directors to the Advisor if any of the
following events occur:

          (i) For Cause;

          (ii) A court of competent jurisdiction enters a decree or order for
relief in respect of the Advisor in any involuntary case under the applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator (or
similar official) of the Advisor or for any substantial part of its property or
orders the winding up or liquidation of the Advisor's affairs; or

          (iii) The Advisor commences a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
consents to the entry of an order for relief in an involuntary case under any
such law, or consents to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
the Advisor or for any substantial part of its property, or makes any general
assignment for the benefit of creditors, or fails generally to pay its debts as
they become due.

     The Advisor agrees that if any of the events specified in subsections (ii)
or (iii) of this Section 16(b) occur, it will give written notice thereof to the
Company within seven (7) days after the occurrence of such event.

                                      -15-

<PAGE>
     (C) BY THE ADVISOR. At the sole option of the Advisor, this Agreement shall
be terminated immediately, subject to the thirty (30)-day cure period for a
"Good Reason" termination due to a material breach of this Agreement, upon
written notice of termination from the Advisor to the Company that the Advisor
has Good Reason to terminate this Agreement.

     (D) SURVIVAL. The provisions of Sections 18 through 31 shall survive
termination of this Agreement.

     17. ASSIGNMENT. This Agreement shall not be assigned by the Advisor to a
non-Affiliate. This Agreement may be assigned by the Advisor to an Affiliate
with the approval of the Board, including a majority of the Independent
Directors. Notwithstanding the foregoing, the Advisor may assign any rights to
receive fees or other payments under this Agreement without obtaining the
approval of the Board. This Agreement shall not be assigned by the Company or
the Partnership without the consent of the Advisor, except in the case of an
assignment by the Company or the Partnership to a corporation or other
organization which is a successor to all of the assets, rights and obligations
of the Company or the Partnership, as the case may be, in which case such
successor organization shall be bound hereunder and by the terms of said
assignment in the same manner as the Company and the Partnership is bound by
this Agreement.

     18. PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION. Payments to the
Advisor pursuant to this Section 18 shall be subject to the 2%/25% Guidelines to
the extent applicable.

     (A) After the expiration or termination of this Agreement, the Advisor
shall not be entitled to compensation for further services hereunder except it
shall be entitled to receive from the Company within thirty (30) days after the
effective date of such termination all unpaid reimbursements of expenses and all
earned but unpaid fees payable to the Advisor prior to termination of this
Agreement; and

     (B) The Advisor shall promptly upon termination:

          (i) pay over to the Company all money collected and held for the
account of the Company pursuant to this Agreement, after deducting any accrued
compensation and reimbursement for its expenses to which it is then entitled;

          (ii) deliver to the Board a full accounting, including a statement
showing all payments collected by it and a statement of all money held by it,
covering the period following the date of the last accounting furnished to the
Board;

          (iii) deliver to the Board all assets, including Properties and Real
Estate Related Securities, and documents of the Company then in the custody of
the Advisor; and

          (iv) cooperate with the Company to provide an orderly management
transition.

19.  INDEMNIFICATION BY THE COMPANY.

         (A) The Company shall indemnify and hold harmless the Advisor and its
Affiliates, including their respective officers, directors, partners and
employees, from all liability, claims, damages or losses arising in the
performance of their duties hereunder, and related expenses, including
reasonable attorneys' fees, to the extent such liability, claims, damages or
losses and related expenses are not fully reimbursed by insurance, provided that
the Company shall not indemnify and hold harmless the Advisor or its Affiliates
unless:

         (i)      the Advisor or its Affiliates have determined, in good faith,
                  that the course of conduct which caused the loss or liability
                  was in the best interests of the Company;

         (ii)     the Advisor or its Affiliates were acting on behalf of or
                  performing services for the Company;

         (iii)    such liability or loss was not the result of negligence or
                  misconduct by the Advisor or its Affiliates; and

         (iv)     such indemnification or agreement to hold harmless is
                  recoverable only out of Company's net assets and not from its
                  stockholders.

The obligation of the Company to indemnify or hold harmless the Advisor and its
Affiliates shall also be subject to any limitations imposed by Maryland law.

                                      -16-

<PAGE>

     (B) The Company may advance amounts to persons entitled to indemnification
hereunder for legal and other expenses and costs incurred as a result of any
legal action for which indemnification is being sought only if all of the
following conditions are satisfied: (i) the legal action relates to acts or
omissions with respect to the performance of duties or services by the
indemnified party for or on behalf of the Company; (ii) the legal action is
initiated by a third party and a court of competent jurisdiction specifically
approves such advancement; and (iii) the indemnified party receiving such
advances undertakes to repay the advanced funds to the Company, together with
the applicable legal rate of interest thereon, in which such party would not be
entitled to indemnification.

     (C) Notwithstanding the foregoing, the Advisor shall not be entitled to
indemnification or be held harmless pursuant to this Section 19 for any activity
which the Advisor shall be required to indemnify or hold harmless the Company
pursuant to Section 20. Any indemnification of the Advisor may be made only out
of the net assets of the Company and not from the Stockholders.

     20. INDEMNIFICATION BY ADVISOR. The Advisor shall indemnify and hold
harmless the Company from contract or other liability, claims, damages, taxes or
losses and related expenses, including attorneys' fees, to the extent that such
liability, claims, damages, taxes or losses and related expenses are not fully
reimbursed by insurance and are incurred by reason of the Advisor's bad faith,
fraud, willful misfeasance, misconduct, or reckless disregard of its duties, but
the Advisor shall not be held responsible for any action of the Board in
following or declining to follow advice or recommendation given by the Advisor.

     21. FIDELITY BOND. The Advisor shall not be required to obtain or maintain
a fidelity bond in connection with the performance of its services hereunder.

     22. NOTICES. Any notice, report or other communication required or
permitted to be given hereunder shall be in writing unless some other method of
giving such notice, report or other communication is required by the Articles of
Incorporation, the Bylaws, or accepted by the party to whom it is given, and
shall be given by being delivered by hand or by overnight mail or other
overnight delivery service to the addresses set forth herein:

To the Board and to the Company:   NNN Healthcare/Office REIT, Inc.
                                   Suite 200
                                   1551 N. Tustin Avenue
                                   Santa Ana, CA 92705
                                   Attention: Chief Executive Officer

To the Partnership:                NNN Healthcare/Office REIT Holdings, L.P.
                                   Suite 200
                                   1551 N. Tustin Avenue
                                   Santa Ana, CA 92705
                                   Attention: Chief Executive Officer of
                                              NNN Healthcare/Office REIT, Inc.,
                                              its General Partner

To the Advisor:                    NNN Healthcare/Office REIT Advisor, LLC
                                   Suite 200
                                   1551 N. Tustin Avenue
                                   Santa Ana, CA 92705
                                   Attention: Chief Executive Officer

     Either party may at any time give notice in writing to the other party of a
change in its address for the purposes of this Section 22.

                                      -17-

<PAGE>

     23. AMENDMENTS. This Agreement shall not be changed, modified, terminated,
or discharged, in whole or in part, except by an instrument in writing signed by
each of the parties hereto, or their respective successors or assignees.

     24. SEVERABILITY. The provisions of this Agreement are independent of and
severable from each other, and no provision shall be affected or rendered
invalid or unenforceable by virtue of the fact that for any reason any other or
others of them may be invalid or unenforceable in whole or in part.

     25. CONSTRUCTION. The provisions of this Agreement shall be construed and
interpreted in accordance with the laws of the State of Maryland.

     26. ENTIRE AGREEMENT. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements, understandings,
inducements and conditions, express or implied, oral or written, of any nature
whatsoever with respect to the subject matter hereof. The express terms hereof
control and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms hereof. This Agreement may not be modified or
amended other than by an agreement in writing.

     27. INDULGENCES, NOT WAIVER. Neither the failure nor any delay on the part
of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is
in writing and is signed by the party asserted to have granted such waiver.

     28. GENDER. Words used herein regardless of the number and gender
specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the
context requires.

     29. TITLES NOT TO AFFECT INTERPRETATION. The titles of sections and
subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the
construction or interpretation hereof.

     30. EXECUTION IN COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original as against any
party whose signature appears thereon, and all of which shall together
constitute one and the same instrument. This Agreement shall become binding when
the counterparts hereof, taken together, bear the signatures of all of the
parties reflected hereon as the signatories.

     31. NAME. NNN Healthcare/Office REIT Advisor, LLC has a proprietary
interest in the name "NNN." Accordingly, and in recognition of this right, if at
any time the Company or the Partnership ceases to retain NNN Healthcare/Office
REIT Advisor, LLC or an Affiliate thereof to perform the services of the Advisor
under this Agreement, the Company or the Partnership, as the case may be, will,
promptly after receipt of written request from NNN Healthcare/Office REIT
Advisor, LLC, cease to conduct business under or use the name "NNN" or any
variation or derivative thereof and the Company and the Partnership shall each
use its best efforts to change their respective names (and the names of any of
their Affiliates) to a name that does not contain the name "NNN" or any other
word or words that might, in the sole discretion of the Advisor, be susceptible
of indication of some form of relationship between the Company and the Advisor
or any Affiliate thereof. Consistent with the foregoing, the parties acknowledge
and agree that the Advisor or one or more of its Affiliates has in the past and
may in the

                                      -18-

<PAGE>

future organize, sponsor or otherwise permit to exist other investment vehicles
(including vehicles for investment in real estate) and financial and service
organizations having "NNN" as a part of their name, all without the need for any
consent (and without the right to object thereto) by the Company or its Board.

     32. RIGHT OF FIRST REFUSAL. In the event that Triple Net identifies an
opportunity to make an investment in one or more office buildings or other
facilities for which greater than fifty percent (50%) of the gross rentable
space at such office buildings or other facilities is leased to, or is
reasonably expected to be leased to, one or more medical or healthcare-related
tenants, either directly or indirectly through an Affiliate or in a joint
venture or other co-ownership arrangement, for itself or for any other Triple
Net-sponsored or managed program, then Triple Net agrees that it shall provide
the Company with the first opportunity to purchase such investment and that it
shall provide all necessary information to the Advisor in order to enable the
Board of Directors to determine whether to proceed with such investment. The
Advisor shall present such information to the Board of Directors within three
(3) business days of receipt from Triple Net. In the event that the Board of
Directors does not affirmatively authorize the Advisor to proceed with the
investment on behalf of the Company within seven (7) days of receipt of such
information from the Advisor, then Triple Net may proceed with the investment
opportunity for its own account or offer the investment opportunity to any other
person or entity.

                        [SIGNATURES APPEAR ON NEXT PAGE]

                                      -19-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Advisory
Agreement as of the day and year first above written.

                                       NNN HEALTHCARE/OFFICE REIT, INC.

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

                                       NNN HEALTHCARE/OFFICE REIT HOLDINGS, L.P.

                                       By: NNN Healthcare/Office REIT, Inc.,
                                           its General Partner

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

                                       NNN HEALTHCARE/OFFICE REIT ADVISOR, LLC

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

                                       TRIPLE NET PROPERTIES, LLC
                                       (solely for purposes of Section 32 of
                                       this Agreement)

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

                     [SIGNATURE PAGE TO ADVISORY AGREEMENT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]