Document:

EXHIBIT 4.4

                       [         ] 200__-[ ], as Issuer

                        INDYMAC MBS, INC., as Depositor

           ____________________, as Trust Administrator and Servicer

                    ____________________________, as Seller

                                      and

          ____________________________________, as Indenture Trustee

                          ---------------------------

                         SALE AND SERVICING AGREEMENT

                           Dated as of _______, 200_

                          ---------------------------

                                 [ ] 200__-[ ]
                             MORTGAGE BACKED NOTES

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                               TABLE OF CONTENTS

                                                                          Page
                                                                          ----

                                   ARTICLE I

                                  DEFINITIONS

Section 1.01.  Definitions...................................................4
Section 1.02.  Calculations With Respect to the Mortgage Loans..............47
Section 1.03.  Calculations With Respect to Accrued Interest................47

                                  ARTICLE II

                         CONVEYANCE OF MORTGAGE LOANS

Section 2.01.  Creation and Declaration of Trust Estate; Conveyance of
                    Mortgage Loans..........................................47
Section 2.02.  Acceptance of Trust Estate; Review of Documentation..........53
Section 2.03.  Grant Clause.................................................54
Section 2.04.  Option to Contribute Derivative Instrument...................56

                                  ARTICLE III

                        REPRESENTATIONS AND WARRANTIES

Section 3.01.  Representations and Warranties of the Depositor and
                    the Seller..............................................56
Section 3.02.  Discovery of Breach..........................................58
Section 3.03.  Repurchase, Purchase or Substitution of Mortgage Loans.......59

                                  ARTICLE IV

             ADMINISTRATION AND SERVICING OF MORTGAGE LOANS BY THE
                     SERVICER AND THE TRUST ADMINISTRATOR

Section 4.01.  Servicer to Perform Servicing Responsibilities...............59
Section 4.02.  Duties of the Servicer; Representations and Warranties.......60
Section 4.03.  Servicer Fidelity Bond and Servicer Errors and Omissions
                    Insurance Policy........................................62
Section 4.04.  Servicer's Financial Statements and Related Information......63
Section 4.05.  Power to Act; Procedures.....................................63
Section 4.06.  [Reserved]...................................................66
Section 4.07.  Establishment of and Deposits to Collection Account..........66
Section 4.08.  Application of Funds in the Collection Account...............68
Section 4.09.  Servicing of the Mortgage Loans..............................70
Section 4.10.  Reports to Trust Administrator...............................77
Section 4.11.  Reports to Indenture Trustee and Noteholders.................77

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Section 4.12.  Transfers of Mortgaged Property..............................80
Section 4.13.  Termination for Cause........................................81
Section 4.14.  Assumption of Servicing by Indenture Trustee, Successor
                    to Servicer.............................................83
Section 4.15.  [Reserved]...................................................85
Section 4.16.  Release of Mortgage Files....................................85
Section 4.17.  Documents, Records and Funds in Possession of Servicer
                    To Be Held for Indenture Trustee........................86
Section 4.18.  Opinion......................................................87
Section 4.19.  [Reserved]...................................................87
Section 4.20.  [Reserved]...................................................87
Section 4.21.  [Reserved]...................................................87
Section 4.22.  Indenture Trustee To Retain Possession of Certain
                    Insurance Policies and Documents........................87
Section 4.23.  Compensation to the Servicer.................................88
Section 4.24.  [Reserved]...................................................88
Section 4.25.  Reports to the Indenture Trustee.............................88
Section 4.26.  Annual Officer's Certificate as to Compliance................89
Section 4.27.  Inspection...................................................89
Section 4.28.  Merger or Consolidation......................................90
Section 4.29.  Resignation of Servicer......................................90
Section 4.30.  Assignment or Delegation of Duties by the Servicer...........90
Section 4.31.  Limitation on Liability of the Servicer and Others...........91
Section 4.32.  Indemnification; Third Party Claims..........................91
Section 4.33.  Alternative Index............................................92
Section 4.34.  Miscellaneous Servicing Provisions...........................92
Section 4.35.  Advance Facility.............................................92

                                   ARTICLE V

                       DEPOSITS AND PAYMENTS TO HOLDERS

Section 5.01.  The Collection Account.......................................93
Section 5.02.  Payments from the Collection Account.........................93
Section 5.03.  [Reserved]..................................................107
Section 5.04.  Control of the Trust Account and Deferred Interest..........107
Section 5.05.  Advances by Servicer........................................111
Section 5.06.  The Interest Rate Cap Agreements............................111
Section 5.07.  [ [Class AF-5B] Policy; Rights of the
                    [Class AF-5B] Insurer..................................113

                                  ARTICLE VI

                       ADMINISTRATION OF THE AGREEMENTS

Section 6.01.  Duties of the Trust Administrator...........................116
Section 6.02.  Duties of the Trust Administrator With Respect to
                    the Indenture, the Trust Agreement and this Agreement..119

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Section 6.03.  Records.....................................................119
Section 6.04.  Compensation................................................119
Section 6.05.  Additional Information to be Furnished to the Issuer........119
Section 6.06.  Independence of the Trust Administrator.....................119
Section 6.07.  No Joint Venture............................................120
Section 6.08.  Other Activities of Trust Administrator and the Depositor...120
Section 6.09.  Resignation and Removal of Trust Administrator..............120
Section 6.10.  Action upon Termination, Resignation or Removal of the
                    Trust Administrator....................................122

                                  ARTICLE VII

                          SERVICER EVENTS OF DEFAULT

Section 7.01.  Servicer Events of Default; Indenture Trustee To Act;
                    Appointment of Successor...............................122
Section 7.02.  Additional Remedies of Indenture Trustee Upon Servicer
                    Event of Default.......................................127
Section 7.03.  Waiver of Defaults..........................................127
Section 7.04.  Notification to Holders.....................................127
Section 7.05.  Directions by Noteholders and Duties of Indenture
                    Trustee During Servicer Event of Default...............127
Section 7.06.  Action Upon Certain Failures of the Servicer and Upon
                    Servicer Event of Default..............................128

                                 ARTICLE VIII

                                  TERMINATION

Section 8.01.  Termination.................................................128
Section 8.02.  Termination Prior to Maturity Date; Optional Redemption.....128
Section 8.03.  Certain Notices upon Final Payment..........................129

                                  ARTICLE IX

                           MISCELLANEOUS PROVISIONS

Section 9.01.  Binding Nature of Agreement; Assignment.....................129
Section 9.02.  Entire Agreement............................................129
Section 9.03.  Amendment...................................................129
Section 9.04.  Acts of Noteholders.........................................130
Section 9.05.  Recordation of Agreement....................................131
Section 9.06.  Governing Law...............................................131
Section 9.07.  Notices.....................................................131
Section 9.08.  Severability of Provisions..................................132
Section 9.09.  Indulgences; No Waivers.....................................133
Section 9.10.  Headings Not To Affect Interpretation.......................133

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Section 9.11.  Benefits of Agreement.......................................133
Section 9.12.  Special Notices to the Rating Agencies......................133
Section 9.13.  Counterparts................................................134
Section 9.14.  Execution by the Issuer.....................................134

                                   ARTICLE X

                            EXCHANGE ACT REPORTING

Section 10.01.  Filing Obligations.........................................135
Section 10.02.  Form 10-D Filings..........................................135
Section 10.03.  Form 8-K Filings...........................................136
Section 10.04.  Form 10-K Filings..........................................136
Section 10.05.  Sarbanes-Oxley Certification...............................137
Section 10.06.  Form 15 Filing.............................................137
Section 10.07.  Report on Assessment of Compliance and Attestation.........137
Section 10.08.  Use of Subcontractors......................................139
Section 10.09.  Amendments.................................................139

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                              ATTACHMENTS

Exhibit A-1        Form of Initial Certification
Exhibit A-2        Form of Interim Certification
Exhibit A-3        Form of Final Certification
Exhibit A-4        Form of Endorsement
Exhibit B          [Reserved]
Exhibit C          Form of Lost Note Affidavit
Exhibit D          Escrow Account Letter Agreement
Exhibit E-1        Form of Monthly Remittance Advice
Exhibit E-2        Standard Layout For Monthly Defaulted Loan Report
Exhibit E-3        Form 332 Realized Loss Report
Exhibit F-1        Form of Certification to be Provided to the Servicer
                   by the Trustee
Exhibit F-2        Form of Servicer Certification
Exhibit G          Item 1119 Party Schedule
Exhibit H          Form of Servicing Criteria to be Addressed in Assessment
                   of Compliance Statement
Exhibit I          Form of [Class AF-5B] Policy
[Exhibit J         Form of Subsequent Transfer Agreement]
Exhibit K          Form of Sarbanes-Oxley Certification (Replacement of
                   Servicer)

Schedule A                 Mortgage Loan Schedule

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                                       7

         This SALE AND SERVICING AGREEMENT, dated as of _______, 200_ (the
"Agreement" or the "Sale and Servicing Agreement"), is by and among [ ]
200__-[ ], a Delaware statutory trust, as issuer (the "Issuer"), IndyMac MBS,
INC., a Delaware corporation, as depositor (the "Depositor"),
____________________________________, as indenture trustee (the "Indenture
Trustee"), ____________________, as trust administrator (the "Trust
Administrator") and servicer (the "Servicer"), and
____________________________, as seller (the "Seller").

                             PRELIMINARY STATEMENT

         WHEREAS, the Depositor has acquired all of the rights, title and
interest of the Seller in certain conventional, adjustable rate, residential
mortgage loans identified in Schedule A hereto (the "Mortgage Loans") on a
servicing-retained basis from the Seller, and at the Closing Date is the owner
of the Mortgage Loans and the other property being conveyed by it to the
Issuer hereunder for inclusion in the Trust Estate;

         WHEREAS, the Depositor has duly authorized the execution and delivery
of this Agreement to provide for the conveyance to the Issuer of the Mortgage
Loans and the other property constituting the Trust Estate;

         WHEREAS, on the Closing Date, the Depositor will acquire the Notes
and the Ownership Certificate from the Issuer as consideration for its
transfer to the Issuer of the Mortgage Loans and the other property
constituting the Trust Estate;

         WHEREAS, pursuant to the Indenture, the Issuer will pledge the
Mortgage Loans and the other property constituting the Trust Estate to the
Indenture Trustee as security for the Notes;

         WHEREAS, the Seller desires that the Servicer service the Mortgage
Loans upon such transfer to the Issuer pursuant to this Agreement, and the
Servicer has agreed to do so;

         WHEREAS, the Servicer shall be obligated under this Agreement, among
other things, to supervise the servicing of the Mortgage Loans on behalf of
the Issuer, and shall have the right, under certain circumstances, to
terminate the rights and obligations of the Servicer under this Agreement upon
the occurrence and continuance of a Servicer Event of Default as provided
herein;

         WHEREAS, the parties hereto acknowledge and agree that, at the
direction of the Depositor, the Seller will assign all of its rights with
respect to the Mortgage Loans (other than the servicing rights) to the
Indenture Trustee;

         WHEREAS, the Issuer has entered into certain agreements in connection
with the issuance of the Notes, including (i) the Depository Agreement and
(ii) the Indenture (the Depository Agreement, the Indenture and the Trust
Agreement being hereinafter referred to collectively as the "Related
Agreements");

         WHEREAS, pursuant to the Related Agreements, the Issuer is required
to perform certain duties in connection with (a) the Notes and the collateral
therefor pledged pursuant to the

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Indenture (the "Collateral") and (b) the undivided subordinate beneficial
ownership interest in the Issuer represented by the Ownership Certificate;

         WHEREAS, the Issuer desires to have the Trust Administrator perform
certain of the duties of the Issuer referred to in the preceding clause, and
to provide such additional services consistent with the terms of this
Agreement and the Related Agreements as the Issuer or the Owner Trustee may
from time to time reasonably request; and

         WHEREAS, the Trust Administrator has the capacity to provide the
services required hereby and is willing to perform such services for the
Issuer or the Owner Trustee on the terms set forth herein.

         NOW, THEREFORE, in consideration of the mutual agreements herein
contained, the parties hereto agree as follows:

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         The following table sets forth (or describes) the Class designation,
Note Interest Rate, initial Class Principal Amount and minimum denomination
for each Class of Notes issued pursuant to the Indenture.

                                                    Initial
            Class                                Class Principal     Minimum
         Designation      Note Interest Rate         Amount       Denominations
         -----------      ------------------     ---------------  -------------
[Class AF-1A]............    Variable (1)        $ __________     $     25,000
[Class AF-1B]............    Variable (1)        $ __________     $     25,000
[Class AF-2].............    Variable (1)        $ __________     $     25,000
[Class AF-3].............    Variable (1)        $ __________     $     25,000
[Class AF-4].............    Variable (1)        $ __________     $     25,000
[Class AF-5A]............    Variable (1)        $ __________     $     25,000
[Class AF-5B]............    Variable (1)        $ __________     $     25,000
[Class AF-6].............    Variable (1)        $ __________     $     25,000
[Class MF-1].............    Variable (1)        $ __________     $    100,000
[Class MF-2].............    Variable (1)        $ __________     $    100,000
[Class MF-3].............    Variable (1)        $ __________     $    100,000
[Class MF-4].............    Variable (1)        $ __________     $    100,000
[Class MF-5].............    Variable (1)        $ __________     $    100,000
[Class MF-6].............    Variable (1)        $ __________     $    100,000
[Class MF-7].............    Variable (1)        $ __________     $    100,000
[Class MF-8].............    Variable (1)        $ __________     $    100,000
[Class BF]...............    Variable (1)        $ __________     $    100,000
[Class 2-AV-1]...........    Variable (1)        $ __________     $     25,000
[Class 2-AV-2]...........    Variable (1)        $ __________     $     25,000
[Class 3-AV-1]...........    Variable (1)        $ __________     $     25,000
[Class 3-AV-2]...........    Variable (1)        $ __________     $     25,000
[Class 3-AV-3]...........    Variable (1)        $ __________     $     25,000
[Class 3-AV-4]...........    Variable (1)        $ __________     $     25,000
[Class MV-1].............    Variable (1)        $ __________     $    100,000
[Class MV-2].............    Variable (1)        $ __________     $    100,000
[Class MV-3].............    Variable (1)        $ __________     $    100,000
[Class MV-4].............    Variable (1)        $ __________     $    100,000
[Class MV-5].............    Variable (1)        $ __________     $    100,000
[Class MV-6].............    Variable (1)        $ __________     $    100,000
[Class MV-7].............    Variable (1)        $ __________     $    100,000
[Class MV-8].............    Variable (1)        $ __________     $    100,000
[Class BV]...............    Variable (1)        $ __________     $    100,000
---------------
(1) See the definition of "Note Interest Rate" herein.

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                                  ARTICLE I

                                  DEFINITIONS

         Section 1.01.  Definitions. The following words and phrases, unless
the context otherwise requires, shall have the following meanings:

         Accounts: Any or all of the Escrow Accounts, the Collection Account,
the Interest Rate Cap Account and any other accounts created or maintained by
the Trust Administrator or the Servicer pursuant to this Agreement.

         Accountant: A Person engaged in the practice of accounting who
(except when this Agreement provides that an Accountant must be Independent)
may be employed by or affiliated with the Depositor or an Affiliate of the
Depositor.

         Accrual Period: With respect to any Payment Date and the Notes, the
period beginning on the immediately preceding Payment Date (or, in the case of
the first Payment Date, beginning on the Closing Date) and ending on the day
immediately preceding the related Payment Date.

         Additional Designated Information:  As defined in Section 10.02.

         Adjustable Rate Notes: The [Class AF-1A] Notes, the [Group AV] Notes
and the Adjustable Rate Subordinate Notes.

         Adjustable Rate Cumulative Loss Trigger Event: With respect to a
Payment Date on or after the Adjustable Rate Stepdown Date, an Adjustable Rate
Cumulative Loss Trigger Event occurs if (x) the aggregate amount of Realized
Losses on the Mortgage Loans in [Pool 2] and [Pool 3] from the Cut-off Date
for each such Mortgage Loan to (and including) the last day of the related Due
Period (reduced by the aggregate amount of any Recoveries related to the
Mortgage Loans in [Pool 2] and [Pool 3] received through the last day of that
Due Period) exceeds (y) the applicable percentage, for such Payment Date, of
the sum of the aggregate Cut-off Date Principal Balance of the Initial
Mortgage Loans in [Pool 2] and [Pool 3], as set forth below:

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    Payment Date                      Percentage
    ------------                      ----------

    _____ 200_ -- _____ 200_.........  _____% with respect to ______ 200_, plus
                                      an additional 1/12th of ____% for each
                                      month thereafter through ______ 200_
    _____ 200_ -- _____ 200_.........  _____% with respect to ______ 200_, plus
                                      an additional 1/12th of ____% for each
                                      month thereafter through ______ 200_
    _____ 200_ -- _____ 200_.........  _____% with respect to ______ 200_, plus
                                      an additional 1/12th of ____% for each
                                      month thereafter through ______ 200_
    _____ 200_ and thereafter........ ____%

         Adjustable Rate Delinquency Trigger Event: With respect to any
Payment Date on or after the Adjustable Rate Stepdown Date, an Adjustable Rate
Delinquency Trigger Event exists if the Rolling [Sixty-Day] Delinquency Rate
for outstanding Mortgage Loans in [Pool 2] and [Pool 3] equals or exceeds the
product of (x) the Adjustable Rate Senior Enhancement Percentage for such
Payment Date and (y) the applicable percentage listed below for the most
senior class of outstanding [Group AV] Notes and Adjustable Rate Subordinate
Notes:

                         Class                       Percentage

            [Group AV]......................           _____%
            [Class MV-1]....................           _____%
            [Class MV-2]....................           _____%
            [Class MV-3]....................           _____%
            [Class MV-4]....................           _____%
            [Class MV-5]....................           _____%
            [Class MV-6]....................           _____%
            [Class MV-7]....................           _____%
            [Class MV-8]....................           _____%
            [Class BV]......................           _____%

         Adjustable Rate Excess Overcollateralization Amount: With respect to
any Payment Date, an amount equal to the excess, if any, of the Adjustable
Rate Overcollateralized Amount for such Payment Date over the Adjustable Rate
Overcollateralization Target Amount for such Payment Date.

         Adjustable Rate Pool Excess Cashflow: With respect to any Payment
Date the sum of (i) the amount remaining after the distribution of interest to
Noteholders for such Payment Date pursuant to Section 5.02(c), (ii) the amount
remaining after the distribution of principal to

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Noteholders for such Payment Date, pursuant to Section 5.02(e) and (iii) the
Adjustable Rate Overcollateralization Reduction Amount for such Payment Date,
if any.

         Adjustable Rate OC Floor: For any Payment Date, an amount equal to
____% of the sum of the aggregate Cut-off Date Principal Balance of the
Initial Mortgage Loans in [Pool 2] and [Pool 3] the [Pool 2] Pre-Funded Amount
and the [Pool 3] Pre-Funded Amount.

         Adjustable Rate Overcollateralization Deficiency Amount: With respect
to any Payment Date, the amount, if any, by which the Adjustable Rate
Overcollateralization Target Amount exceeds the Adjustable Rate
Overcollateralized Amount on such Payment Date (after giving effect to
distribution of the Principal Distribution Amount (other than the portion
thereof consisting of the Extra Principal Distribution Amount) for [Pool 2]
and [Pool 3] on such Payment Date).

         Adjustable Rate Overcollateralization Reduction Amount: With respect
to any Payment Date, an amount equal to the lesser of (i) the Adjustable Rate
Excess Overcollateralization Amount for such Payment Date and (ii) the
aggregate Principal Remittance Amount for [Pool 2] and [Pool 3] for such
Payment Date.

         Adjustable Rate Overcollateralization Target Amount: With respect to
any Payment Date (a) prior to the Adjustable Rate Stepdown Date, an amount
equal to ___% of the sum of the aggregate Cut-off Date Principal Balance of
the Initial Mortgage Loans in [Pool 2] and [Pool 3], the [Pool 2] Pre-Funded
Amount and the [Pool 3] Pre-Funded Amount, and (b) on or after the Adjustable
Rate Stepdown Date, the greater of (i) an amount equal to ____% of the
aggregate Stated Principal Balance of the Mortgage Loans in [Pool 2] and [Pool
3] for the current Payment Date and (ii) the Adjustable Rate OC Floor;
provided, however, that if an Adjustable Rate Trigger Event is in effect on
any Payment Date, the Adjustable Rate Overcollateralization Target Amount will
be the Adjustable Rate Overcollateralization Target Amount as in effect for
the prior Payment Date.

         Adjustable Rate Overcollateralized Amount: With respect to any
Payment Date, the amount, if any, by which (x) the sum of the aggregate Stated
Principal Balance of the Initial Mortgage Loans in [Pool 2] and [Pool 3] and
any amount on deposit in the Pre-Funding Account in respect of [Pool 2] and
[Pool 3] for such Payment Date exceeds (y) the sum of the aggregate Note
Principal Amount of the [Group AV] Notes and the Adjustable Rate Subordinate
Notes as of such Payment Date (after giving effect to distribution of the
Principal Remittance Amounts for [Pool 2] and [Pool 3] to be made on such
Payment Date and, in the case of the Payment Date immediately following the
end of the Funding Period, any amounts to be released from the Pre-Funding
Account in respect of [Pool 2] and [Pool 3]).

         Adjustable Rate Senior Enhancement Percentage: With respect to a
Payment Date on or after the Adjustable Rate Stepdown Date, the fraction
(expressed as a percentage) (1) the numerator of which is the excess of (a)
the aggregate Stated Principal Balance of the Mortgage Loans in [Pool 2] and
[Pool 3] for the preceding Payment Date over (b) (i) before the Note Principal
Amounts of the [Group AV] Notes have been reduced to zero, the sum of the Note
Principal Amounts of the [Group AV] Notes, or (ii) after such time, the Note
Principal Amount of the most senior Class of Adjustable Rate Subordinate Notes
outstanding, as of the Business

                                      6
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Day immediately preceding the Payment Date, and (2) the denominator of which
is the aggregate Stated Principal Balance of the Mortgage Loans in [Pool 2]
and [Pool 3] for the preceding Payment Date.

         Adjustable Rate Stepdown Date: The later to occur of (x) the Payment
Date in ______ 200_ and (y) the first Payment Date on which the aggregate Note
Principal Amount of the [Group AV] Notes (after calculating anticipated
distributions on such Payment Date) is less than or equal to ____% of the
aggregate Stated Principal Balance of the Mortgage Loans in [Pool 2] and [Pool
3] for such Payment Date.

         Adjustable Rate Subordinate Class Principal Distribution Amount: With
respect to any Payment Date and any Class of Adjustable Rate Subordinate
Notes, the excess of (1) the sum of (a) the aggregate Note Principal Amount of
the [Group AV] Notes (after taking into account distribution of the [Group AV]
Principal Distribution Amount for such Payment Date), (b) the aggregate Note
Principal Amount of any Class(es) of Adjustable Rate Subordinate Notes that
are senior to the subject Class (in each case, after taking into account
distribution of the Adjustable Rate Subordinate Class Principal Distribution
Amount(s) for such senior Class(es) of Notes for such Payment Date), and (c)
the Note Principal Amount of the subject Class of Adjustable Rate Subordinate
Notes immediately prior to such Payment Date over (2) the lesser of (a) the
product of (x) [100]% minus the Stepdown Target Subordination Percentage for
the subject Class of Notes and (y) the aggregate Stated Principal Balance of
the Mortgage Loans in [Pool 2] and [Pool 3] for such Payment Date and (b) the
aggregate Stated Principal Balance of the Mortgage Loans in [Pool 2] and [Pool
3] for such Payment Date minus the Adjustable Rate OC Floor; provided,
however, that if such Class of Adjustable Rate Subordinate Notes is the only
Class of Adjustable Rate Subordinate Notes outstanding on such Payment Date,
that Class will be entitled to receive the entire remaining Principal
Distribution Amount for [Pool 2] and [Pool 3] until the Note Principal Amount
thereof is reduced to zero.

         Adjustable Rate Subordinate Notes: The [Class MF-1], [Class MF-2],
[Class MF-3], [Class MF-4], [Class MF-5], [Class MF-6], [Class MF-7], [Class
MF-8] and [Class BV] Notes.

         Adjustable Rate Trigger Event: With respect to any Payment Date on or
after the Adjustable Rate Stepdown Date, either an Adjustable Rate Delinquency
Trigger Event with respect to that Payment Date or an Adjustable Rate
Cumulative Loss Trigger Event with respect to that Payment Date.

         Advance: With respect to each Servicer Remittance Date and each
Mortgage Loan, an amount equal to the Scheduled Payment (with the interest
portion of such Scheduled Payment adjusted to the Mortgage Loan Remittance
Rate) that was due on the Mortgage Loan on the Due Date in the related
Collection Period, and that (i) was delinquent at the close of business on the
related Determination Date and (ii) was not the subject of a previous Advance,
but only to the extent that such amount is expected, in the reasonable
judgment of the Servicer to be recoverable from collections or other
recoveries in respect of such Mortgage Loan.

         Advance Facility:  As defined in Section 4.35(a) hereof.

         Advance Facility Notice:  As defined in Section 4.35(a) hereof.

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         Advancing Person:  As defined in Section 4.35(a) hereof.

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

         Aggregate Collateral Balance: As of any date of determination, an
amount equal to the Aggregate Loan Balance plus the amount on deposit in the
Pre-Funded Account.

         Aggregate Loan Balance: As of any date of determination, an amount
equal to the aggregate of the Stated Principal Balances of the Mortgage Loans
as of such date.

         Agreement: This Sale and Servicing Agreement and all amendments and
supplements hereto.

         Ancillary Income: All income derived from the Mortgage Loans,
excluding Servicing Fees and Prepayment Premiums attributable to the Mortgage
Loans and other amounts treated as payment proceeds of the Mortgage Loans,
including but not limited to, late charges, fees received with respect to
checks or bank drafts returned by the related bank for non-sufficient funds,
assumption fees, optional insurance administrative fees and all other
incidental fees and charges.

         Applied Realized Loss Amount: With respect to any Payment Date and
(i) [Pool 1] and the Fixed Rate Subordinate Notes, the amount, if any, by
which, the aggregate Note Principal Amount of the Fixed Rate Notes (after all
distributions of principal on such Payment Date) exceeds the sum of (x) the
Stated Principal Balance of the Mortgage Loans in [Pool 1] for such Payment
Date and (y) the amount on deposit in the Pre-Funding Account in respect of
[Pool 1],, (ii) [Pool 2] and [Pool 3] and the Adjustable Rate Subordinate
Notes, the amount, if any, by which, the aggregate Note Principal Amount of
the Adjustable Rate Notes (after all distributions of principal on such
Payment Date) exceeds the sum of (x) the aggregate Stated Principal Balance of
the Mortgage Loans in [Pool 2] and [Pool 3] and (y) the amount on deposit in
the Pre-Funding Account in respect of [Pool 2] and [Pool 3] and (iii) [Pool 2]
and the [Class 2-A-2] Notes, after the Note Principal Amounts of the
Adjustable Rate Subordinate Notes have been reduced to zero, the amount, if
any, by which, the aggregate Note Principal Amount of the [Group 2-AV] Notes
(after all distributions of principal on such Payment Date) exceeds the sum of
(x) the aggregate Stated Principal Balance of the Mortgage Loans in [Pool 2]
and (y) the amount on deposit in the Pre-Funding Account in respect of [Pool
2].

         Appraised Value: With respect to any Mortgage Loan, the amount set
forth in an appraisal made in connection with the origination of such Mortgage
Loan as the value of the related Mortgaged Property.

         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 assignment of the Mortgage to the

                                      8
<PAGE>

Indenture Trustee for the benefit of Noteholders, which assignment, notice of
transfer or equivalent instrument may be in the form of one or more blanket
assignments covering the Mortgage Loans secured by Mortgaged Properties
located in the same jurisdiction, if permitted by law; provided, however, that
neither the Issuer nor the Indenture Trustee shall be responsible for
determining whether any such assignment is in recordable form.

         Authorized Officer: Any Person who may execute an Officer's
Certificate on behalf of the Issuer.

         Bankruptcy: As to any Person, the making of an assignment for the
benefit of creditors, the filing of a voluntary petition in bankruptcy,
adjudication as a bankrupt or insolvent, the entry of an order for relief in a
bankruptcy or insolvency proceeding, the seeking of reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
relief, or seeking, consenting to or acquiescing in the appointment of a
trustee, receiver or liquidator, dissolution, or termination, as the case may
be, of such Person pursuant to the provisions of either the United States
Bankruptcy Code of 1986, as amended, or any other similar state laws.

         Bankruptcy Code: The United States Bankruptcy Code of 1986, as
amended.

         Basis Risk Shortfall: With respect to any Class of Notes and any
Payment Date, the amount by which (a) the amount of interest calculated at the
Note Interest Rate applicable to such Class for such date, determined without
regard to the applicable Net Funds Cap for such date (but with regard to the
Fixed Rate Cap) exceeds (b) the amount of interest calculated at the
applicable Net Funds Cap.

         Bloomberg Screen LIBO Page: The display designated as page "BBAM" on
the Bloomberg L.P. (or such other page as may replace the BBAM page on that
service for the purpose of displaying London interbank offered rates of major
banks).

         Book-Entry Notes:  As defined in the Indenture.

         Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a
day on which banking institutions in New York, New York or, if other than New
York, the city in which the Corporate Trust Office of the Indenture Trustee is
located, or the States of California, Delaware, Maryland or Minnesota are
authorized or obligated by law or executive order to be closed.

         Cap Agreement Assignment Agreement: The assignment agreement dated as
of the Closing Date among ________________________, the Issuer and the Cap
Counterparty.

         Cap Counterparty: _____________________________, as counterparty
under the Interest Rate Cap Agreements.

         Certificate:  The Ownership Certificate.

         Certificate Registrar: As defined in the Trust Agreement, the initial
Certificate Registrar shall be the Trust Administrator.

         Certificateholder: Any registered holder of the Ownership
Certificate.

                                      9
<PAGE>

         Certification Party:  As defined in Section 10.05.

         Certifying Person:  As defined in Section 10.05.

         Civil Relief Act: The Servicemembers Civil Relief Act, as such may be
amended from time to time, and any similar state laws.

         Class:  All Notes bearing the same class designation.

         Class A Notes: Collectively, the [Class AF-1A], [Class AF-1B], [Class
AF-2], [Class AF-3], [Class AF-4], [Class AF-5A], [Class AF-5B], [Class AF-6],
[Class 2-AV-1], [Class 2-AV-2]; [Class 3-AV-1], [Class 3-AV-2], [Class 3-AV-3]
and [Class 3-AV-4] Notes.

         [Class AF-1A] Cap Agreement: The interest rate cap agreement
transaction evidenced by the related Confirmation (as assigned to the Trust
pursuant to the Cap Agreement Assignment Agreement), with respect to the Class
[AF-1A] Notes.

         [Class AF-1A] Cap Agreement Payment Date: With respect to the [Class
AF-1A] Cap Agreement, the Business Day immediately preceding the related
Payment Date, beginning with the Payment Date in ________ 200_ and ending with
the Payment Date in ________ 200_.

         [Class AF-5B] Available Funds: With respect to any Payment Date,
funds allocated from amounts available pursuant to this Agreement to make
distributions on the [Class AF-5B] Notes on such Payment Date, other than any
Insured Amounts.

         [Class AF-5B] Insurer: ________________ in its capacity as insurer
under the [Class AF-5B] Policy, and any permitted successor or assign.

         [Class AF-5B] Insurer Contact Person: The officer designated by the
Servicer to provide information to the [Class AF-5B] Insurer pursuant to
Section 5.07(i)].

         [Class AF-5B] Insurer Default:  As defined in Section 5.07(k).

         [Class AF-5B] Policy: The irrevocable Note Guaranty Insurance Policy,
No. ______________, including any endorsements thereto, issued by ________
with respect to the [Class AF-5B] Notes, in the form attached hereto as
Exhibit [I].

         [Class AF-5B] Premium: For any Payment Date is the fee payable to the
[Class AF-5B] Insurer in respect of its services as [Class AF-5B] Insurer that
accrues at the [Class AF-5B] Policy Premium Rate for the [Class AF-5B] Notes
on a balance equal to the Note Principal Amount of the [Class AF-5B] Notes
immediately prior to such Payment Date. The [Class AF-5B] Premium shall be
computed on the basis of a 360-day year consisting of twelve 30-day months.

         [Class AF-5B] Policy Premium Rate: The "Premium Percentage" as
defined in the [Class AF-5B] Policy.

                                      10
<PAGE>

         [Class AF-5B] Reimbursement Amount: As to any Payment Date, (i) all
Insured Payments paid by the [Class AF-5B] Insurer, but for which the [Class
AF-5B] Insurer has not been reimbursed prior to such Payment Date pursuant to
Section 5.02 hereof, plus (ii) interest accrued on such Insured Payments not
previously repaid, calculated at the Late Payment Rate from the date such
Insured Payments were made.

         Class B Notes:  Collectively, the Class [BF] and Class [BV] Notes.

         Class C Notes:  Collectively, the Class [CF] and Class [CV] Notes.

         Class M Notes: Collectively, the [Class MF-1], [Class MF-2], [Class
MF-3], [Class MF-4], [Class MF-5], [Class MF-6], [Class MF-7], [Class MF-8],
[Class MV-1], [Class MV-2], [Class MV-3], [Class MV-4], [Class MV-5], [Class
MV-6], [Class MV-7] and [Class MV-8] Notes.

         Class P Notes:  Collectively, the Class [PF] and Class [PV] Notes.

         Class Principal Amount: With respect to each Class of Notes, the
aggregate of the Note Principal Amounts of all Notes of such Class at the date
of determination.

         Clearing Agency: An organization registered as a "clearing agency"
pursuant to Section 17A of the Exchange Act, as amended. As of the Closing
Date, the Clearing Agency shall be The Depository Trust Company.

         Closing Date:  _______, 200_.

         Code: The Internal Revenue Code of 1986, as amended, and as it may be
further amended from time to time, any successor statutes thereto, and
applicable U.S. Department of Treasury regulations issued pursuant thereto in
temporary or final form.

         Collateral:  As defined in the Indenture.

         Collection Account: A separate account established and maintained by
the Trust Administrator for the benefit of the Indenture Trustee pursuant to
Section 4.07.

         Collection Period: With respect to any Payment Date and Mortgage
Loan, the period commencing on the second day of the month immediately
preceding the month in which such Payment Date occurs and ending on the first
day of the month in which such Payment Date occurs.

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

         Compensating Interest Payment: With respect to any Payment Date, an
amount equal to the lesser of (x) the aggregate Prepayment Interest Shortfall
Amount with respect to such Payment Date and (y) the Servicing Fee payable to
the Servicer in respect of such Payment Date.

         Condemnation Proceeds: All awards of settlements in respect of a
Mortgaged Property, whether permanent or temporary, partial or entire, by
exercise of the power of eminent domain

                                      11
<PAGE>

or condemnation, to the extent not required to be released to a Mortgagor in
accordance with the terms of the related Mortgage Loan documents.

         Confirmation: Any of the Confirmations dated __________, 200_
evidencing a transaction between the Cap Counterparty and __________________,
an affiliate of the Depositor, relating to the Interest Rate Cap Agreements.

         Control:  The meaning specified in Section 8-106 of the New York UCC.

         Corporate Trust Office: With respect to (i) the Trust Administrator,
the principal corporate trust office of the Trust Administrator at which, at
any particular time, its corporate trust business shall be administered, which
office at the date of execution of this Agreement for purposes of transfers
and exchanges and for presentment and surrender of the Notes and for payment
thereof is located at ____________________, __________________, Attention:
__________________, and for all other purposes is located at
____________________,___________________________, Attention: ________________;
(ii) the Certificate Registrar, the principal office of the Certificate
Registrar at which at any particular time its corporate trust business shall
be administered, which office at the date of execution of this Agreement is
located at the Corporate Trust Office of the Trust Administrator, or at such
other address as the Certificate Registrar may designate from time to time by
notice to the Noteholders and the Trust, or the principal corporate trust
office of any successor Certificate Registrar at the address designated by
such successor Certificate Registrar by notice to the Noteholders and the
Trust; and (iii) the Indenture Trustee, the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of execution of this Agreement is
located at _____________________, Attention: ___________________, or at such
other address as the Indenture Trustee may designate from time to time by
notice to the Noteholders and the Trust, or the principal corporate trust
office of any successor Indenture Trustee at the address designated by such
successor Indenture Trustee by notice to the Noteholders and the Trust.

         Current Interest: With respect to any Class of Notes and any Payment
Date, will equal the aggregate amount of interest accrued at the applicable
Note Interest Rate during the related Accrual Period on the Class Principal
Amount of such Class immediately prior to such Payment Date, provided,
however, that for any Class of Subordinate Notes and for any Payment Date,
Current Interest shall be reduced by the amount specified in clause (a) of the
definition of Deferred Interest, if any, for such Class and Payment Date.

         Cut-off Date: In the case of any Initial Mortgage Loan, the later of
(x) _________, 200_ and (y) the date of origination of such Mortgage Loan (the
"Initial Cut-off Date"), and in the case of any Subsequent Mortgage Loan, the
later of (x) the first day of the month of the related Subsequent Transfer
Date and (y) the date of origination of such Subsequent Mortgage Loan (the
related "Subsequent Cut-off Date"). When used with respect to any Mortgage
Loan the "Cut-off Date" shall mean the related Cut-off Date.

         Cut-off Date Balance: The Aggregate Loan Balance as of the Cut-off
Date.

         Cut-off Date Collateral Balance:  The Cut-off Date Balance.

                                      12
<PAGE>

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

         Debt Service Reduction: With respect to any Mortgage Loan, a
reduction of the Scheduled Payment that the related Mortgagor is obligated to
pay on any Due Date as a result of any proceeding under Bankruptcy law or any
similar proceeding.

         Deferred Interest: For any Class of Subordinate Notes and any Payment
Date, the sum of (a) the aggregate amount of interest accrued at the
applicable Note Interest Rate during the related Accrual Period on the
Principal Deficiency Amount for the Class, (b) any amounts due pursuant to
clause (a) for such Class for prior Payment Dates that remain unpaid and (c)
interest accrued during the Accrual Period related to such Payment Date on the
amount in clause (b) at the Note Interest Rate applicable to such Class.

         Deficiency Amount:  With respect to:

                  (a) any Payment Date prior to the Last Scheduled Payment
         Date, the sum of (i) the excess, if any, of the Current Interest on
         the [Class AF-5B] Notes net of any interest shortfalls resulting from
         Prepayment Interest Shortfalls and any interest shortfalls resulting
         from the application of the Civil Relief Act, or similar state or
         local laws, over [Class AF-5B] Available Funds for such Payment Date,
         and (ii) for any Payment Date after the Note Principal Amount of the
         Fixed Rate Subordinate Notes has been reduced to zero, the excess, if
         any, of (A) the Note Principal Amount of the [Class AF-5B] Notes over
         (B) the sum of the aggregate Stated Principal Balance of the [Pool 1]
         Mortgage Loans, in each case taking into account all distributions to
         be made on such Payment Date;

                  (b) the Last Scheduled Payment Date, an amount equal to the
         sum of (i) the excess, if any, of the Current Interest on the [Class
         AF-5B] Notes net of any interest shortfalls resulting from Prepayment
         Interest Shortfalls and any interest shortfalls resulting from the
         application of the Relief Act, or similar state or local laws over
         the [Class AF-5B] Available Funds for such Payment Date and (ii) the
         Note Principal Amount of the [Class AF-5B] Notes on such Last
         Scheduled Payment Date (after taking into account all distributions
         to be made to the [Class AF-5B] Notes on such Payment Date); and

                  (c) any date on which the redemption of the Notes has been
         directed or consented to by the [Class AF-5B] Insurer, the excess of
         (i) the amount required to pay the outstanding Note Principal Amount
         of the [Class AF-5B] Notes in full, together with accrued and unpaid
         interest thereon through the date of payment of the [Class AF-5B]
         Notes and (ii) the [Class AF-5B] Available Funds for that Payment
         Date.

         Definitive Notes:  As defined in the Indenture.

         Deleted Mortgage Loan: A Mortgage Loan that is repurchased from the
Trust Estate pursuant to the terms hereof or as to which one or more
Qualifying Substitute Mortgage Loans are substituted therefor.

                                      13
<PAGE>

         Delinquency Rate: With respect to any calendar month, the fraction,
expressed as a percentage, the numerator of which is the aggregate outstanding
principal balance of all Mortgage Loans 60 or more days Delinquent (including
all foreclosures, bankruptcies and REO Properties) as of the close of business
on the last day of such month, and the denominator of which is the Aggregate
Collateral Balance as of the close of business on the last day of such month.

         Delinquent: For reporting purposes, a Mortgage Loan is "delinquent"
when any payment contractually due thereon has not been made by the close of
business on the Due Date therefor. Such 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 first 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" and the second immediately
succeeding month and "90 days Delinquent" and the third immediately succeeding
month.

         Depositor: IndyMac MBS, Inc., a Delaware corporation or its
successors in interest.

         Depository Agreement: The agreement dated _______, 200_, among the
Issuer and The Depository Trust Company, as the initial Clearing Agency,
relating to the Book-Entry Notes.

         Determination Date: With respect to each Payment Date, the 15th day
of the month in which such Payment Date occurs, or, if such 15th day is not a
Business Day, the next succeeding Business Day.

         Due Date: The day of the calendar month on which the Scheduled
Payment is due on a Mortgage Loan, exclusive of any days of grace. Pursuant to
Section 4.09(q), with respect to any Mortgage Loans for which payment from the
Mortgagor is due on a day other than the first day of the month, such Mortgage
Loans will be treated as if the Scheduled Payment is due on the first day of
the immediately succeeding month (other than with respect to the calculation
of the repurchase price).

         Due Period: [With respect to any Payment Date, the period beginning
on the second day of the calendar month preceding the calendar month in which
such Payment Date occurs and ending on the first day of the month in which
such Payment Date occurs].

         EDGAR: The Commission's Electronic Data Gathering, Analysis and
Retrieval system.

         Eligible Account: Either (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company that
complies with the definition of Eligible Institution or (ii) an account or
accounts the deposits in which are insured by the FDIC to the limits
established by such corporation, provided that any such deposits not so
insured shall be maintained in an account at a depository institution or trust
company whose commercial paper or other short term debt obligations (or, in
the case of a depository institution or trust company which is the principal
subsidiary of a holding company, the commercial paper or other short term debt
or deposit obligations of such holding company or depository institution, as
the case may be) have been rated by each Rating Agency in its highest
short-term rating category, or (iii) a

                                      14
<PAGE>

segregated trust account or accounts (which shall be a "special deposit
account") maintained with the Trust Administrator or any other federal or
state chartered depository institution or trust company, acting in its
fiduciary capacity, in a manner acceptable to the Rating Agencies. Eligible
Accounts may bear interest.

         Eligible Institution:  Any of the following:

         (i) An institution whose:

                  (A)      commercial paper, short-term debt obligations, or
                           other short-term deposits are rated at least "A-1+"
                           or long-term unsecured debt obligations are rated
                           at least "AA-" by S&P (or assigned comparable
                           ratings by the other Rating Agencies), if the
                           amounts on deposit are to be held in the account
                           for no more than 365 days; or

                  (B)      commercial paper, short-term debt obligations,
                           demand deposits, or other short-term deposits are
                           rated at least "A-2" by S&P (or assigned comparable
                           ratings by the other Rating Agencies), if the
                           amounts on deposit are to be held in the account
                           for no more than 30 days and are not intended to be
                           used as credit enhancement. Upon the loss of the
                           required rating set forth in this clause (ii), the
                           accounts shall be transferred immediately to
                           accounts which have the required rating.
                           Furthermore, commingling by the Servicer is
                           acceptable at the A-2 rating level if the Servicer
                           is a bank, thrift or depository and provided the
                           Servicer has the capability to immediately
                           segregate funds and commence remittance to an
                           Eligible Account upon a downgrade; or

         (ii)     the corporate trust department of a federal depositor
                  institution or state-chartered depositor institution subject
                  to regulations regarding fiduciary funds on deposit similar
                  to Title 12 of the U.S. Code of Federal Regulation Section
                  9.10(b), which, in either case, has corporate trust powers
                  and is acting in its fiduciary capacity.

         Eligible Investments: Any one or more of the following obligations or
securities:

         (i)      direct obligations of, and obligations fully guaranteed as
                  to timely payment of principal and interest by, the United
                  States of America or any agency or instrumentality of the
                  United States of America the obligations of which are backed
                  by the full faith and credit of the United States of America
                  ("Direct Obligations");

         (ii)     federal funds, or demand and time deposits in, certificates
                  of deposits of, or bankers' acceptances issued by, any
                  depository institution or trust company (including U.S.
                  subsidiaries of foreign depositories and the Indenture
                  Trustee or the Trust Administrator or any agent of the
                  Indenture Trustee or the Trust Administrator, acting in its
                  respective commercial capacity) incorporated or organized
                  under the laws of the United States of America or any state
                  thereof and subject to supervision and examination by
                  federal or state banking authorities, so long as at the time
                  of investment or the contractual commitment providing for

                                      15
<PAGE>

                  such investment the commercial paper or other short term
                  debt obligations of such depository institution or trust
                  company (or, in the case of a depository institution or
                  trust company which is the principal subsidiary of a holding
                  company, the commercial paper or other short term debt or
                  deposit obligations of such holding company or deposit
                  institution, as the case may be) have been rated by each
                  Rating Agency in its highest short-term rating category or
                  one of its two highest long-term rating categories;

         (iii)    repurchase agreements collateralized by Direct Obligations
                  or securities guaranteed by GNMA, Fannie Mae or FHLMC with
                  any registered broker/dealer subject to Securities
                  Investors' Protection Corporation jurisdiction or any
                  commercial bank insured by the FDIC, if such broker/dealer
                  or bank has an uninsured, unsecured and unguaranteed
                  obligation rated by each Rating Agency in its highest
                  short-term rating category;

         (iv)     securities bearing interest or sold at a discount issued by
                  any corporation incorporated under the laws of the United
                  States of America or any state thereof which have a credit
                  rating from each Rating Agency, at the time of investment or
                  the contractual commitment providing for such investment, at
                  least equal to one of the two highest long term credit
                  rating categories of each Rating Agency; provided, however,
                  that securities issued by any particular corporation will
                  not be Eligible Investments to the extent that investment
                  therein will cause the then outstanding principal amount of
                  securities issued by such corporation and held as part of
                  the Trust Estate to exceed [20]% of the sum of the Aggregate
                  Loan Balance and the aggregate principal amount of all
                  Eligible Investments in the Collection Account; provided,
                  further, that such securities will not be Eligible
                  Investments if they are published as being under review with
                  negative implications from any Rating Agency;

         (v)      commercial paper (including both non-interest-bearing
                  discount obligations and interest bearing obligations
                  payable on demand or on a specified date not more than 180
                  days after the date of issuance thereof) rated by each
                  Rating Agency in its highest short-term rating category;

         (vi)     a Qualified GIC;

         (vii)    certificates or receipts representing direct ownership
                  interests in future interest or principal payments on
                  obligations of the United States of America or its agencies
                  or instrumentalities (which obligations are backed by the
                  full faith and credit of the United States of America) held
                  by a custodian in safekeeping on behalf of the holders of
                  such receipts; and

         (viii)   any other demand, money market, common trust fund or time
                  deposit or obligation, or interest bearing or other security
                  or investment (including those managed or advised by the
                  Indenture Trustee, the Servicer, the Trust Administrator, or
                  any Affiliate thereof), (A) rated in the highest rating
                  category by each Rating Agency or (B) that would not
                  adversely affect the then current rating

                                      16
<PAGE>

                  assigned by each Rating Agency to any of the Notes. Such
                  investments in this subsection (viii) may include money
                  market mutual funds or common trust estates, including any
                  fund for which ____________________ (the "Bank") in its
                  capacity other than as the Servicer, the Trust Administrator
                  or an affiliate thereof serves as an investment advisor,
                  administrator, shareholder servicing agent, and/or custodian
                  or subcustodian, notwithstanding that (x) the Bank, the
                  Indenture Trustee, the Servicer or any affiliate thereof
                  charges and collects fees and expenses from such funds for
                  services rendered, (y) the Bank, the Indenture Trustee, the
                  Trust Administrator, the Servicer or any affiliate thereof
                  charges and collects fees and expenses for services rendered
                  pursuant to this Agreement, and (z) services performed for
                  such funds and pursuant to this Agreement may converge at
                  any time. The Bank or an affiliate thereof is specifically
                  authorized to charge and collect from the Issuer such fees
                  as are collected from all investors in such funds for
                  services rendered to such funds (but not to exceed
                  investment earnings thereon);

provided, however, that no such instrument shall be an Eligible Investment if
such instrument evidences either (i) a right to receive only interest payments
with respect to the obligations underlying such instrument, or (ii) both
principal and interest payments derived from obligations underlying such
instrument and the principal and interest payments with respect to such
instrument provide a yield to maturity of greater than [120]% of the yield to
maturity at par of such underlying obligations, provided that any such
investment will be a "permitted investment" within the meaning of Section
860G(a)(5) of the Code.

         Entitlement Order: The meaning specified in Section 8-102(a)(8) of
the New York UCC (i.e., generally, orders directing the transfer or redemption
of any Financial Asset).

         Environmental Problem Property: A Mortgaged Property or REO Property
that is in violation of any environmental law, rule or regulation.

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

         Errors and Omissions Insurance: Errors and Omissions Insurance to be
maintained by the Servicer in accordance with Section 4.03.

         Errors and Omission Insurance Policy: Any Errors and Omission
Insurance policy required to be obtained by the Servicer satisfying the
requirements of this Agreement.

         Escrow Account: The separate escrow account established and
maintained by the Servicer pursuant to Section 4.09(a) of this Agreement.

         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
document.

         Excess [Class AF-1A] Cap Amount:  As defined in Section 5.06(c).

                                      17
<PAGE>

         Excess [Class 2AV] Cap Amount:  As defined in Section 5.06(d).

         Excess [Class 3AV] Cap Amount:  As defined in Section 5.06(e).

         Excess Subordinate Cap Amount:  As defined in Section 5.06(f).

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

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

         Extra Principal Distribution Amount: With respect to any Payment Date
and (A) [Pool 1], the lesser of (1) the Fixed Rate Overcollateralization
Deficiency Amount and (2) the sum of the Fixed Rate Pool Excess Cashflow and
the Credit Comeback Excess Amount available for payment thereof and (B) each
of [Pool 2] and [Pool 3], the lesser of (1) the Adjustable Rate
Overcollateralization Deficiency Amount and (2) the Adjustable Rate Pool
Excess Cashflow available for payment thereof, to be allocated between [Pool
2] and [Pool 3], pro rata, based on the Principal Remittance Amount for each
such Pool for such Payment Date.

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

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

         FHA:  The Federal Housing Administration, an agency within HUD.

         FHA Approved Mortgagee: Those institutions which are approved by FHA
to act as servicer and mortgagee of record pursuant to FHA Regulations.

         FHA Regulations: Regulations promulgated by HUD under the National
Housing Act, codified in Title 24 of the Code of Federal Regulations, and
other HUD issuances relating to FHA Loans, including the related handbooks,
circulars, notices and mortgagee letters.

         Fidelity Bond: Any fidelity bond to be maintained by the Servicer in
accordance with Section 4.03.

         Financial Asset: The meaning specified in Section 8-102(a) of the New
York UCC.

         Fixed Rate Cap: With respect to any Payment Date, a per annum rate
equal to ___%.

         Fixed Rate Notes: The [Class AF-1B], [Class AF-2], [Class AF-3],
[Class AF-4], [Class AF-5A], [Class AF-5B], [Class AF-6] and [Class BF] Notes.

         Fixed Rate Cumulative Loss Trigger Event: With respect to a Payment
Date on or after the Fixed Rate Stepdown Date, a Fixed Rate Cumulative Loss
Trigger Event occurs if (x) the aggregate amount of Realized Losses on the
Mortgage Loans in [Pool 1] from the Cut-off Date

                                      18
<PAGE>

for each such Mortgage Loan to (and including) the last day of the related Due
Period (reduced by the aggregate amount of any Recoveries related to [Pool 1]
received through the last day of that Due Period) exceeds (y) the applicable
percentage, for such Payment Date, of the sum of the aggregate Cut-off Date
Principal Balance of the Initial Mortgage Loans in [Pool 1] and the [Pool 1]
Pre-Funded Amount, as set forth below:

  Payment Date                     Percentage
  ------------                     ----------

  _____ 200_ -- _____ 200_........  _____% with respect to ______ 200_, plus an
                                   additional 1/12th of ____% for each month
                                   thereafter through ______ 200_
  _____ 200_ -- _____ 200_........  _____% with respect to ______ 200_, plus an
                                   additional 1/12th of ____% for each month
                                   thereafter through ______ 200_
  _____ 200_ -- _____ 200_........  _____% with respect to ______ 200_, plus an
                                   additional 1/12th of ____% for each month
                                   thereafter through ______ 200_
  _____ 200_ and thereafter....... ____%

         Fixed Rate Delinquency Trigger Event: With respect to any Payment
Date on or after the Fixed Rate Stepdown Date, a Fixed Rate Delinquency
Trigger Event exists if the Rolling [Sixty-Day] Delinquency Rate for
outstanding Mortgage Loans in [Pool 1] equals or exceeds the product of (x)
the Fixed Rate Senior Enhancement Percentage for such Payment Date and (y) the
applicable percentage listed below for the most senior class of outstanding
[Group AF] Notes and Fixed Rate Subordinate Notes:

                       Class                       Percentage

          [Group AF]......................          _______%
          [Class MF-1]....................          _______%
          [Class MF-2]....................          _______%
          [Class MF-3]....................          _______%
          [Class MF-4]....................          _______%
          [Class MF-5]....................          _______%
          [Class MF-6]....................          _______%
          [Class MF-7]....................          _______%
          [Class MF-8]....................          _______%
          [Class BF]......................          _______%

         Fixed Rate Excess Overcollateralization Amount: With respect to any
Payment Date, an amount equal to the excess, if any, of the Fixed Rate
Overcollateralized Amount for such Payment Date over the Fixed Rate
Overcollateralization Target Amount for such Payment Date.

                                      19
<PAGE>

         Fixed Rate Pool Excess Cashflow: With respect to any Payment Date the
sum of (i) the amount remaining after the distribution of interest to
Noteholders and the payment of the Class [AF 5B] Premium and any Class [AF 5B]
Reimbursement Amount to the [Class AF-5B] Insurer, in each case for such
Payment Date pursuant to Section 5.02(b), and (ii) the amount remaining after
the distribution of principal to Noteholders and the payment of any unpaid
Class [AF 5B] Premium and any unpaid Class [AF 5B] Reimbursement Amount to the
[Class AF-5B] Insurer, in each case for such Payment Date pursuant to Section
5.02(d) and (iii) the Fixed Rate Overcollateralization Reduction Amount for
such Payment Date, if any.

         Fixed Rate OC Floor: An amount equal to ____% of the aggregate
Cut-off Date Principal Balance of the Initial Mortgage Loans in [Pool 1] and
the [Pool 1] Pre-Funded Amount.

         Fixed Rate Overcollateralization Deficiency Amount: With respect to
any Payment Date, the amount, if any, by which the Fixed Rate
Overcollateralization Target Amount exceeds the Fixed Rate Overcollateralized
Amount on such Payment Date (after giving effect to distributions in respect
of the Principal Remittance Amount for [Pool 1] on such Payment Date).

         Fixed Rate Overcollateralization Reduction Amount: With respect to
any Payment Date, an amount equal to the lesser of (i) the Fixed Rate Excess
Overcollateralization Amount for such Payment Date and (ii) the Principal
Remittance Amount for [Pool 1] for such Payment Date.

         Fixed Rate Overcollateralization Target Amount: With respect to any
Payment Date (a) prior to the Fixed Rate Stepdown Date, an amount equal to
___% of the sum of the aggregate Cut-off Date Principal Balance of the Initial
Mortgage Loans in [Pool 1] and the [Pool 1] Pre-Funded Amount (b) on or after
the Fixed Rate Stepdown Date, the greater of (i) an amount equal to ____% of
the aggregate Stated Principal Balance of the Mortgage Loans in [Pool 1] for
the current Payment Date and (ii) the Fixed Rate OC Floor; provided, however,
that if a Fixed Rate Trigger Event is in effect on any Payment Date, the Fixed
Rate Overcollateralization Target Amount will be the Fixed Rate
Overcollateralization Target Amount as in effect for the prior Payment Date.

         Fixed Rate Overcollateralized Amount: With respect to any Payment
Date, the amount, if any, by which (x) the aggregate Stated Principal Balance
of the Initial Mortgage Loans in [Pool 1] for such Payment Date and any amount
on deposit in the Pre-Funding Account in respect of [Pool 1] exceeds (y) the
aggregate Note Principal Amount of the [Group AF] Notes and the Fixed Rate
Subordinate Notes as of such Payment Date (after giving effect to
distributions of the Principal Remittance Amount for [Pool 1] to be made on
such Payment Date and, in the case of the Payment Date immediately following
the end of the Funding Period, any amounts to be released from the Pre-Funding
Account in respect of [Pool 1]).

         Fixed Rate Senior Enhancement Percentage: With respect to a Payment
Date on or after the Fixed Rate Stepdown Date, the fraction (expressed as a
percentage) (1) the numerator of which is the excess of (a) the aggregate
Stated Principal Balance of the Mortgage Loans in [Pool 1] for the preceding
Payment Date over (b) (i) before the Note Principal Amounts of the [Group AF]
Notes have been reduced to zero, the sum of the Note Principal Amounts of the
[Group AF] Notes, or (ii) after such time, the Note Principal Amount of the
most senior Class of Fixed Rate Subordinate Notes outstanding, as of the
related Servicer Advance Date, and (2) the denominator

                                      20
<PAGE>

of which is the aggregate Stated Principal Balance of the Mortgage Loans in
[Pool 1] for the preceding Payment Date.

         Fixed Rate Subordinate Class Principal Distribution Amount: With
respect to any Payment Date and any Class of Fixed Rate Subordinate Notes the
excess of (1) the sum of (a) the aggregate Note Principal Amount of the [Group
AF] Notes (after taking into account distribution of the [Group AF] Principal
Distribution Amount for such Payment Date), (b) the aggregate Note Principal
Amount of any Class(es) of Fixed Rate Subordinate Notes that are senior to the
subject Class (in each case, after taking into account distribution of the
Fixed Rate Subordinate Class Principal Distribution Amount(s) for such senior
Class(es) of Notes for such Payment Date), and (c) the Note Principal Amount
of such Class of Fixed Rate Subordinate Notes immediately prior to the subject
Payment Date over (2) the lesser of (a) the product of (x) 100% minus the
Stepdown Target Subordination Percentage for the subject Class of Notes and
(y) the aggregate Stated Principal Balance of the Mortgage Loans in [Pool 1]
for such Payment Date and (b) the aggregate Stated Principal Balance of the
Mortgage Loans in [Pool 1] for such Payment Date minus the Fixed Rate OC
Floor; provided, however, that if such Class of Fixed Rate Subordinate Notes
is the only Class of Fixed Rate Subordinate Notes outstanding on such Payment
Date, that Class will be entitled to receive the entire remaining Principal
Distribution Amount for [Pool 1] until the Note Principal Amount thereof is
reduced to zero.

         Fixed Rate Stepdown Date: The later to occur of (x) the Payment Date
in ______ 200_ and (y) the first Payment Date on which the aggregate Note
Principal Amount of the [Group AF] Notes (after calculating anticipated
distributions on such Payment Date) is less than or equal to ______% of the
aggregate Stated Principal Balance of the Mortgage Loans in [Pool 1] for such
Payment Date.

         Fixed Rate Subordinate Notes: The [Class MF-1], [Class MF-2], [Class
MF-3], [Class MF-4], [Class MF-5], [Class MF-6], [Class MF-7], [Class MF-8]
and [Class BF] Notes.

         Fixed Rate Trigger Event: With respect to any Payment Date on or
after the Fixed Rate Stepdown Date, consists of either a Fixed Rate
Delinquency Trigger Event with respect to that Payment Date or a Fixed Rate
Cumulative Loss Trigger Event with respect to that Payment Date.

         Form 10-D Disclosure Item: With respect to any Person, any material
litigation or governmental proceedings pending against such Person, or against
any of the Trust Fund, the Depositor, the Trust Administrator, the Indenture
Trustee, the Owner Trustee and the Servicer, if such Person has actual
knowledge thereof.

         Form 10-K Disclosure Item: With respect to any Person, (a) any Form
10-D Disclosure Item and (b) any affiliations or relationships between such
Person and any Item 1119 Party.

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

         Funding Period: The period from the Closing Date to and including the
earlier to occur of (x) the date the amount in the Pre-Funding Account is less
than $[25,000] and (y) ________ ___, 200_.

                                      21
<PAGE>

         Ginnie Mae or GNMA: The Government National Mortgage Association, a
wholly owned corporate instrumentality of the United States within HUD.

         [Group 2-AV] Cap Agreement: The interest rate cap agreement
transaction evidenced by the related Confirmation (as assigned to the Trust
pursuant to the Cap Agreement Assignment Agreement), with respect to the
[Class 2-AV-1] and [Class 2-AV-2] Notes.

         [Group 2-AV] Cap Agreement Payment Date: With respect to the [Group
AV] Cap Agreement, the Business Day immediately preceding the related Payment
Date, beginning with the Payment Date in __________ 200_ and ending with the
Payment Date in _______200_.

         [Group 2-AV] Notes:  The [Class 2-AV-1] and [Class 2-AV-2] Notes.

         [Group 2-AV] Principal Distribution Amount: With respect to any
Payment Date, the product of (x) the [Group AV] Principal Distribution Target
Amount and (y) a fraction, the numerator of which is the [Group 2-AV]
Principal Distribution Target Amount and the denominator of which is the sum
of the [Group 2-AV] Principal Distribution Target Amount and [Group 3-AV]
Principal Distribution Target Amount.

         [Group 2-AV] Principal Distribution Target Amount: With respect to
any Payment Date, the excess of (1) the aggregate Note Principal Amount of the
[Group 2-AV] Notes immediately prior to such Payment Date, over (2) the lesser
of (x) _____% of the aggregate Stated Principal Balance of the Mortgage Loans
in [Pool 2] for such Payment Date and (y) the aggregate Stated Principal
Balance of the Mortgage Loans in [Pool 2] for such Payment Date minus ___% of
the aggregate Stated Principal Balance of the Mortgage Loans in [Pool 2] and
the original [Pool 2] Pre-Funded Amount as of the Cut-off Date.

         [Group 3-AV] Cap Agreement: The interest rate cap agreement
transaction evidenced by the related Confirmation (as assigned to the Trust
pursuant to the Cap Agreement Assignment Agreement), with respect to the
[Class 3-AV-1], [Class 3-AV-2], [Class 3-AV-3] and [Class 3-AV-4] Notes.

         [Group 3-AV] Cap Agreement Payment Date: With respect to the [Group
AV] Cap Agreement, the Business Day immediately preceding the related Payment
Date, beginning with the Payment Date in __________ 200_ and ending with the
Payment Date in _______200_.

         [Group 3-AV] Notes: The [Class 3-AV-1], [Class 3-AV-2], [Class
3-AV-3] and [Class 3-AV-4] Notes.

         [Group 3-AV] Principal Distribution Amount: With respect to any
Payment Date, the product of (x) the [Group AV] Principal Distribution Target
Amount and (y) a fraction, the numerator of which is the [Group 3-AV]
Principal Distribution Target Amount and the denominator of which is the sum
of the [Group 2-AV] Principal Distribution Target Amount and the [Group 3-AV]
Principal Distribution Target Amount.

         [Group 3-AV] Principal Distribution Target Amount: With respect to
any Payment Date, the excess of (1) the aggregate Note Principal Amount of the
[Group 3-AV] Notes immediately prior to such Payment Date, over (2) the lesser
of (x) ____% of the aggregate Stated Principal

                                      22
<PAGE>

Balance of the Mortgage Loans in [Pool 3] for such Payment Date and (y) the
aggregate Stated Principal Balance of the Mortgage Loans in [Pool 3] for such
Payment Date minus ___% of the sum of the aggregate Stated Principal Balance
of the Mortgage Loans in [Pool 3] and the original [Pool 3] Pre-Funded Amount
as of the Cut-off Date.

         [Group AF] Notes: The [Class AF-1A], [Class AF-1B], [Class AF-2],
[Class AF-3], [Class AF-4], [Class AF-5A], [Class AF-5B] and [Class AF-6]
Notes.

         [Group AF] Principal Distribution Amount: With respect to any Payment
Date, the excess of (1) the aggregate Note Principal Amount of the [Group AF]
Notes immediately prior to such Payment Date, over (2) the lesser of (x) ____%
of the aggregate Stated Principal Balance of the Mortgage Loans in [Pool 1]
for such Payment Date and (y) the aggregate Stated Principal Balance of the
Mortgage Loans in [Pool 1] and the original [Pool 1] Pre-Funded Amount as of
the Cut-off Date for such Payment Date minus the Fixed Rate OC Floor.

         [Group AV] Notes:  The [Group 2-AV] and [Group 3-AV] Notes

         Guidelines:  As defined in Section 4.09(n).

         Holder or Noteholder: The registered holder of any Note or Ownership
Certificate as recorded on the books of the Note Registrar or the Certificate
Registrar except that, solely for the purposes of taking any action or giving
any consent pursuant to this Agreement, any Note registered in the name of the
Depositor, the Servicer, the Seller, the Trust Administrator or the Indenture
Trustee or any Affiliate thereof (unless any such Person owns [100]% of a
Class) shall be deemed not to be outstanding in determining whether the
requisite percentage necessary to effect any such consent has been obtained,
except that, in determining whether the Indenture Trustee and Trust
Administrator shall be protected in relying upon any such consent, only Notes
and an Ownership Certificate which a Responsible Officer thereof has actual
knowledge to be so held shall be disregarded. The Indenture Trustee and Trust
Administrator may request and conclusively rely on certifications by the
Depositor in determining whether any Note or Ownership Certificate is
registered to an Affiliate of the Depositor.

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

         Indenture: The Indenture dated as of _______, 200_, among the Issuer,
the Trust Administrator and the Indenture Trustee, as such may be amended or
supplemented from time to time.

         Indenture Event of Default: As defined in Section 5.01 of the
Indenture.

         Indenture Trustee: ____________________________________, not in its
individual capacity but solely as Indenture Trustee, or any successor in
interest.

         Independent: 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. When used with respect to any other
Person, a Person who (a) is in fact

                                      23
<PAGE>

independent of another specified Person and any Affiliate of such other
Person, (b) does not have any material direct financial interest in such other
Person or any Affiliate of such other Person, and (c) is not connected with
such other Person or any Affiliate of such other Person as an officer,
employee, promoter, trustee, partner, director or Person performing similar
functions.

         Index: The index specified in the related Mortgage Note for
calculation of the Mortgage Rate thereof.

         Insurance Policy: Any primary mortgage insurance policy, any standard
hazard insurance policy, flood insurance policy, earthquake insurance policy
or title insurance policy relating to the Mortgage Loans or the Mortgaged
Properties, to be in effect as of the Closing Date or thereafter during the
term of this Agreement.

         Insurance Proceeds: With respect to each Mortgage Loan (other than by
the [Class AF-5B] Insurer under the [Class AF-5B] Policy), proceeds of
insurance policies insuring the Mortgage Loan or the related Mortgaged
Property, if applicable, including the proceeds of any hazard or flood
insurance policy reduced by expenses incurred by the Servicer in connection
with procuring such proceeds, applied to the restoration and repair of the
related mortgaged property or to be paid to the borrower pursuant to the
mortgage note or state law.

         Insured Payments: With respect to any Payment Date, the aggregate
amount actually paid by the [Class AF-5B] Insurer to the Trust Administrator
in respect of (i) Insured Amounts for a Payment Date and (ii) Preference
Amounts for any given Business Day.

         Interest Carry Forward Amount: With respect to each Class of
interest-bearing Notes and each Payment Date, the excess of (i) the Current
Interest for such Class with respect to prior Payment Dates over (ii) the
amount actually distributed to such Class with respect to interest on such
prior Payment Dates.

         Interest Margin: For each Class of Notes and any Payment Date, the
applicable percentage set forth for such class in the following table:

                                       Interest                Interest
                Class                 Margin (1)              Margin (2)
                -----                 ----------              ----------
        [AF-1A]...............           ____%                   ____%
        [AF-1B]...............           ____%                   ____%
        [AF-2]................           ____%                   ____%
        [AF-3]................           ____%                   ____%
        [AF-4]................           ____%                   ____%
        [AF-5A]...............           ____%                   ____%
        [AF-5B]...............           ____%                   ____%
        [AF-6]................           ____%                   ____%
        [MF-1]................           ____%                   ____%
        [MF-2]................           ____%                   ____%
        [MF-3]................           ____%                   ____%
        [MF-4]................           ____%                   ____%
        [MF-5]................           ____%                   ____%

                                      24
<PAGE>

        [MF-6]................           ____%                   ____%
        [MF-7]................           ____%                   ____%
        [MF-8]................           ____%                   ____%
        [BF]..................           ____%                   ____%
        [2-AV-1]..............           ____%                   ____%
        [2-AV-2]..............           ____%                   ____%
        [3-AV-1]..............           ____%                   ____%
        [3-AV-2]..............           ____%                   ____%
        [3-AV-3]..............           ____%                   ____%
        [3-AV-4]..............           ____%                   ____%
        [MV-1]................           ____%                   ____%
        [MV-2]................           ____%                   ____%
        [MV-3]................           ____%                   ____%
        [MV-4]................           ____%                   ____%
        [MV-5]................           ____%                   ____%
        [MV-6]................           ____%                   ____%
        [MV-7]................           ____%                   ____%
        [MV-8]................           ____%                   ____%
        [BV]..................           ____%                   ____%

-----------------------------------------------------------------------------
         (1) For any Payment Date occurring prior to the Stepup Date.

         (2) For any Payment Date occurring on or after the Stepup Date.

         Interest Rate Cap Account: A separate account established and
maintained by the Trust Administrator for the benefit of the Noteholders
pursuant to Section 5.06.

         Interest Rate Cap Agreement: The [Class AF-1A] Cap Agreement, the
[Group 2-AV] Cap Agreement, the [Group 3-AV] Cap Agreement or the Subordinate
Cap Agreement, as applicable.

         Interest Rate Cap Agreement Payment Date: A [Class AF-1A] Cap
Agreement Payment Date, [Group 2-AV] Cap Agreement Payment Date, [Group 3-AV]
Cap Agreement Payment Date or Subordinate Cap Agreement Payment Date, as the
case may be.

         Interest Rate Cap Receipt: With respect to any Interest Rate Cap
Agreement Payment Date, any amount received by the Trust Administrator from
the Cap Counterparty under any Interest Rate Cap Agreement.

         Interest Remittance Amount: With respect to each Pool and any Payment
Date, (a) the sum of, without duplication, (1) all interest collected (other
than the interest portion of Payaheads) or advanced in respect of Scheduled
Payments on the Mortgage Loans in such Pool during the related Collection
Period by the Servicer or the Indenture Trustee (solely in its capacity as
successor Servicer), minus, (x) to the extent provided under Section 4.08(ii)
and (iii) herein, previously unreimbursed Advances due to the Servicer or the
Indenture Trustee (solely in its capacity as successor Servicer), to the
extent allocable to interest and the allocable portion of previously
unreimbursed Servicing Advances with respect to the Mortgage Loans in such
Pool

                                      25
<PAGE>

during the related Prepayment Period, (y) the related Servicing Fee with
respect to such Mortgage Loans in such Pool and (z) all Prepayment Premiums
received with respect to such Mortgage Loans during the related Prepayment
Period, (2) any Compensating Interest Payments or payments in respect of
Prepayment Interest Shortfalls paid by the Servicer pursuant to Section 4.23
with respect to the related Prepayment Period with respect to the Mortgage
Loans in such Pool, (3) the portion of any Purchase Price or Substitution
Amount paid with respect to the Mortgage Loans in such Pool during the related
Prepayment Period allocable to interest, and (4) all Net Liquidation Proceeds,
Insurance Proceeds and any other recoveries collected with respect to the
Mortgage Loans in such Pool during the related Prepayment Period, to the
extent allocable to interest, as reduced by (b) such Pool's pro rata share of
any costs, expenses, fees or liabilities due to the Servicer, the Indenture
Trustee, the Owner Trustee or the Trust Administrator to the extent provided
in this Agreement, the Trust Agreement and the Indenture.

         Intervening Assignments: The original intervening assignments of the
Mortgage, notices of transfer or equivalent instrument.

         Issuer: The Delaware statutory trust known as the "______ Mortgage
Investment Trust 200_-__."

         Issuer Order or Issuer Request: A written order or request signed in
the name of the Issuer by any one of its Authorized Officers and delivered to
the Indenture Trustee and the Trust Administrator.

         Item 1119 Party: The Depositor, the Seller, the Servicer, the
Indenture Trustee, the Trust Administrator, the Owner Trustee, any originator
identified in the Prospectus Supplement, the Cap Counterparty and any other
material transaction party, as identified in Exhibit H hereto, as updated
pursuant to Section 10.04.

         Last Scheduled Payment Date: With respect to the [Class AF-5B] Notes,
the Payment Date occurring in __________ 20__.

         LIBOR: (a) With respect to the first Accrual Period, the per annum
rate of ____%. With respect to each subsequent Accrual Period, a per annum
rate determined on the LIBOR Determination Date in the following manner by the
Trust Administrator on the basis of the "Interest Settlement Rate" set by the
British Bankers' Association (the "BBA") for one-month United States dollar
deposits, as such rates appear on the Telerate Page 3750, as of 11:00 a.m.
(London time) on such LIBOR Determination Date.

         (b)      If on such a LIBOR Determination Date, the BBA's Interest
Settlement Rate does not appear on the Telerate Page 3750 as of 11:00 a.m.
(London time), or if the Telerate Page 3750 is not available on such date, the
Trust Administrator will determine such rate on the basis of the offered rates
of the Reference Banks for one-month United States dollar deposits, as such
rates appear on the Reuters Screen LIBO Page or the Bloomberg Screen LIBO
Page, in either case as of 11:00 a.m. (London time) on such LIBOR
Determination Date.

         (c)      If LIBOR is determined under clause (b) above, on each LIBOR
Determination Date, LIBOR for the related Accrual Period for the Notes will be
established by the Trust Administrator as follows:

                                      26
<PAGE>

                  (1) If on such LIBOR Determination Date two or more
         Reference Banks provide such offered quotations, LIBOR for the
         related Accrual Period for the Notes shall be the arithmetic mean of
         such offered quotations (rounded upwards if necessary to the nearest
         whole multiple of [0.03125]%).

                  (2) If on such LIBOR Determination Date fewer than two
         Reference Banks provide such offered quotations, LIBOR for the
         related Accrual Period shall be the higher of (x) LIBOR as determined
         on the previous LIBOR Determination Date and (y) the Reserve Interest
         Rate.

         (d)      The establishment of LIBOR by the Trust Administrator and
the Trust Administrator's subsequent calculation of the Note Interest Rate
applicable to each Class of Notes for the relevant Accrual Period, in the
absence of manifest error, will be final and binding.

         LIBOR Business Day: Any day on which banks in London, England and The
City of New York are open for conducting transactions in foreign currency and
exchange.

         LIBOR Determination Date: The second LIBOR Business Day immediately
preceding the commencement of each Accrual Period for any Notes.

         Limited Exchange Act Reporting Obligations: The obligations of the
Servicer under Section 4.14 and Section 4.26 with respect to notice and
information to be provided to the Depositor and Article X (except Section
10.07(a)(1) and (2)).

         Liquidated Mortgage Loan: Any defaulted Mortgage Loan as to which the
Servicer has determined that all amounts that it expects to recover from or on
account of such Mortgage Loan have been recovered (exclusive of any
possibility of a deficiency judgment).

         Liquidation Expenses: Expenses that are incurred by the Servicer in
connection with the liquidation of any defaulted Mortgage Loan and are not
recoverable under the applicable primary mortgage insurance policy, if any,
including, without limitation, foreclosure and rehabilitation expenses, legal
expenses and unreimbursed amounts, if any, expended pursuant to Section
4.05(e), 4.09(f) or 4.09(j).

         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, payment in
full, discounted payoff or otherwise, or the sale of the related REO Property,
if the Mortgaged Property is acquired in satisfaction of the Mortgage Loan.

         Loan Number and Borrower Identification Mortgage Loan Schedule: With
respect to any Subsequent Transfer Date, the Loan Number and Borrower
Identification Mortgage Loan Schedule delivered in connection with such
Subsequent Transfer Date pursuant to Section 2.01(f). Each Loan Number and
Borrower Identification Mortgage Loan Schedule shall contain the information
specified in the definition of "Mortgage Loan Schedule" with respect to the
Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date, and each
Loan Number and Borrower Identification Mortgage Loan Schedule shall be deemed
to be included in the Mortgage Loan Schedule.

                                      27
<PAGE>

         Loan-to-Value Ratio: With respect to any Mortgage Loan, the ratio of
the principal balance of such Mortgage Loan at origination, or such other date
as is specified, to the Original Value of the related Mortgaged Property.

         Majority Noteholders: Until such time as the sum of the Class
Principal Amounts of all Classes of Notes has been reduced to zero, the holder
or holders of in excess of [50]% of the aggregate Class Principal Amount of
all Classes of Notes (accordingly, the holder of the Ownership Certificate
shall be excluded from any rights or actions of the Majority Noteholders
during such period); and thereafter, the holder of the Ownership Certificate.

         Material Defect: With respect to any Mortgage Loan, as defined in
Section 2.02(c) hereof.

         Maturity Date: With respect to any Class of Notes, the Payment Date
in ____ 20__.

         MERS: Mortgage Electronic Registration Systems, Inc., a Delaware
corporation, or any successor in interest thereto.

         MERS Mortgage Loan: Any Mortgage Loan as to which the related
Mortgage, or an Assignment of Mortgage, has been or will be recorded in the
name of MERS, as nominee for the holder from time to time of the Mortgage
Note.

         Moody's: Moody's Investors Service, Inc., or any successor in
interest.

         Mortgage: A mortgage, deed of trust or other instrument encumbering a
fee simple interest in real property securing a Mortgage Note.

         Mortgage File: The mortgage documents listed in Section 2.01(g)
pertaining to a particular Mortgage Loan required to be delivered to the
Indenture Trustee pursuant to this Agreement.

         Mortgage Loan: A mortgage loan that is conveyed to the Issuer
pursuant to this Agreement on the Closing Date (an "Initial Mortgage Loan") or
a mortgage loan that is conveyed to the Issuer pursuant to a Subsequent
Transfer Agreement on a Subsequent Transfer Date (a "Subsequent Mortgage
Loan"), which mortgage loan includes, without limitation, the mortgage loan
documents, the Scheduled Payments, Principal Prepayments, Liquidation
Proceeds, Condemnation Proceeds, Insurance Proceeds, any related REO Property,
REO Disposition Proceeds, and all other rights, benefits, proceeds and
obligations arising from or in connection with such mortgage loan. The Initial
Mortgage Loans subject to this Agreement are identified on the Mortgage Loan
Schedule annexed hereto as Schedule A and have an aggregate Stated Principal
Balance as of the Cut-off Date of $_________________. Any Subsequent Mortgage
Loan conveyed pursuant to a Subsequent Transfer Agreement shall be added to
the Mortgage Loan Schedule as of the Subsequent Transfer Date.

         Mortgage Loan Remittance Rate: With respect to each Mortgage Loan,
the Mortgage Rate minus the Servicing Fee Rate.

                                      28
<PAGE>

         Mortgage Loan Schedule: The schedule attached hereto as Schedule A,
which shall identify each Mortgage Loan, as such schedule may be amended from
time to time to reflect the addition of Mortgage Loans to, or the deletion of
Mortgage Loans from, the Trust Estate. Such schedule shall set forth, among
other things, the following information with respect to each Mortgage Loan:
(i) the Mortgage Loan identifying number; (ii) the Mortgagor's name; (iii) the
street address of the Mortgaged Property including the city, state and zip
code; (iv) the original principal amount of the Mortgage Loan; (v) the
Mortgage Rate at origination; (vi) the Index; (vii) the first Mortgage Rate
adjustment date; (viii) the monthly payment of principal and interest at
origination; (ix) the Servicing Fee Rate; and (x) whether such Mortgage Loan
is subject to a Prepayment Premium for voluntary prepayments by the Mortgagor,
the term during which such Prepayment Premiums are imposed and the method of
calculation of the Prepayment Premium. The Servicer shall be responsible for
providing the Indenture Trustee and the Servicer with all amendments to the
Mortgage Loan Schedule.

         Mortgage Note: The note or other evidence of the indebtedness of a
Mortgagor secured by a Mortgage under a Mortgage Loan.

         Mortgaged Property: The underlying real property securing a Mortgage
Loan.

         Mortgage Rate: As to any Mortgage Loan, the per annum rate at which
interest accrues on such Mortgage Loan, as determined under the related
Mortgage Note as reduced by the applications of the Civil Relief Act.

         Mortgagor:  The obligor on a Mortgage Note.

         NAS Factor: For any Payment Date set forth below, the percentage set
forth in the following table:

           Payment Date                                             Percentage
           ---------------------------------------------------      ----------
           _____ 200_ - _______ 200_..........................         __%
           _____ 200_ - _______ 200_..........................         __%
           _____ 200_ - _______ 200_..........................         __%
           _____ 200_ - _______ 200_..........................         __%
           _____ 200_ and thereafter..........................         __%

         NAS Principal Distribution Amount: For any Payment Date, an amount
equal to the product of (i) the [Class AF-6] Portion for such Payment Date,
(ii) any amounts distributed to the [Group AF] Notes pursuant to Section 5.02
for such Payment Date and (iii) the NAS Factor for such Payment Date.

         Net Funds Cap: With respect to any Payment Date, an annual rate equal
to:

         (i) in the case of the [Group AF] Notes, the weighted average of the
Net Mortgage Rates of the Mortgage Loans in [Pool 1] as of the first day of
the related Collection Period, adjusted to reflect the accrual of interest on
an actual/360 basis;

                                      29
<PAGE>

         (ii) in the case of the [Group 2-AV] Notes, the weighted average of
the Net Mortgage Rates of the Mortgage Loans in [Pool 2] as of the first day
of the related Collection Period, adjusted to reflect the accrual of interest
on an actual/360 basis;

         (iii) in the case of the [Group 3-AV] Notes, the weighted average of
the Net Mortgage Rates of the Mortgage Loans in [Pool 3] as of the first day
of the related Collection Period, adjusted to reflect the accrual of interest
on an actual/360 basis;

         (iv) in the case of each class of Fixed Rate Subordinate Notes, the
weighted average of the Net Mortgage Rates of the Mortgage Loans in [Pool 1]
as of the first day of the related Collection Period, weighted on the basis of
the excess of the Pool Balance for [Pool 1] as of the first day of the related
Collection Period over the aggregate of the Class Principal Amounts of the
[Group AF] Notes immediately prior to that Payment Date, and adjusted to
reflect the accrual of interest on an actual/360 basis; and

         (v) in the case of each class of Adjustable Rate Subordinate Notes,
the weighted average of (a) the weighted average of the Net Mortgage Rates of
the Mortgage Loans in [Pool 2] as of the first day of the related Collection
Period and (b) the weighted average of the Net Mortgage Rates of the Mortgage
Loans in [Pool 3] as of the first day of the related Collection Period,
weighted on the basis of the excess of (x) in the case of clause (iii)(a), the
excess of the Pool Balance for [Pool 2] as of the first day of the related
Collection Period over the aggregate of the Class Principal Amounts of the
[Group 2-AV] Notes immediately prior to that Payment Date and (y) in the case
of clause (iii)(b), the excess of the Pool Balance for [Pool 3] as of the
first day of the related Collection Period over the Class Principal Amount of
the [Group 3-AV] Notes immediately prior to that Payment Date, and adjusted to
reflect the accrual of interest on an actual/360 basis.

         Net Liquidation Proceeds: With respect to any Liquidated Mortgage
Loan, the related Liquidation Proceeds, Insurance Proceeds and Condemnation
Proceeds received and retained in connection with the liquidation of such
Mortgage Loan net of (i) Liquidation Expenses and (ii) any related
unreimbursed Advances and Servicing Advances, if any.

         Net Mortgage Rate: With respect to any Mortgage Loan, the Mortgage
Rate thereof reduced by the Servicing Fee Rate.

         Net Rate Carryover: With respect to any Class of interest bearing
Notes and any Payment Date, the sum of (A) the excess of (i) the amount of
interest that such Class would otherwise have accrued for such Payment Date
had the Note Interest Rate for such Class and the related Accrual Period not
been determined based on the applicable Net Funds Cap, over (ii) the amount of
interest accrued on such Class at the applicable Net Funds Cap for such
Payment Date and (B) the Net Rate Carryover for such Class for all previous
Payment Dates not previously paid pursuant to Section 5.02, together with
interest thereon at the then-applicable Note Interest Rate for such Class,
without giving effect to the applicable Net Funds Cap.

         New York UCC: The Uniform Commercial Code as in effect in the State
of New York.

         Non-MERS Mortgage Loan: Any Mortgage Loan other than a MERS Mortgage
Loan.

                                      30
<PAGE>

         Nonrecoverable Advance: Any Servicing Advance or Advance previously
made or proposed to be made in respect of a Mortgage Loan by the Servicer
which, in the reasonable discretion of the Servicer will not or, in the case
of a proposed Servicing Advance or Advance, would not, ultimately be
recoverable by the Servicer from the related Mortgagor, related Liquidation
Proceeds, Condemnation Proceeds, Insurance Proceeds, REO Disposition Proceeds
or otherwise.

         Note: Any [Class AF-1A], [Class AF-1B], [Class AF-2], [Class AF-3],
[Class AF-4], [Class AF-5A], [Class AF-5B], [Class AF-6], [Class MF-1], [Class
MF-2], [Class MF-3], [Class MF-4], [Class MF-5], [Class MF-6], [Class MF-7],
[Class MF-8], [Class BF], [Class 2-AV-1], [Class 2-AV-2], [Class 3-AV-1],
[Class 3-AV-2], [Class 3-AV-3], [Class 3-AV-4], [Class MV-1], [Class MV-2],
[Class MV-3], [Class MV-4], [Class MV-5], [Class MV-6], [Class MV-7], [Class
MV-8], [Class BV], [Class PF], [Class PV], [Class CF] or [Class CV] Note.

         Note Interest Rate: With respect to each Class of Notes on any
Payment Date, the least of (1) LIBOR plus the Interest Margin for such Class
and such Payment Date, (2) the applicable Net Funds Cap for such Payment Date
and (3) the Fixed Rate Cap.

         Note Principal Amount: With respect to any Note, the initial
principal amount thereof on the Closing Date, less the amount of all principal
payments previously paid with respect to such Note.

         Note Register and Note Registrar:  As defined in the Indenture.

         Officer's Certificate: A certificate signed by the Chairman of the
Board, any Vice Chairman, the President, any Senior Vice President, any Vice
President or any Assistant Vice President of a Person.

         Operative Agreements: The Trust Agreement, the Certificate of Trust
of the Issuer, this Agreement, the Indenture, the Depository Agreement, each
Interest Rate Cap Agreement, the Cap Agreement Assignment Agreement and each
other document contemplated by any of the foregoing to which the Depositor,
the Seller, the Servicer, the Owner Trustee, the Trust Administrator, the
Indenture Trustee or the Issuer is a party.

         Opinion of Counsel: A written opinion of counsel, reasonably
acceptable in form and substance to the Seller, the Trust Administrator, the
Indenture Trustee and/or the Servicer, as applicable, and who may be in house
or outside counsel to the Seller, the Servicer, the Depositor, the Servicer,
the Trust Administrator or the Indenture Trustee but which must be Independent
outside counsel with respect to any such opinion of counsel concerning federal
income tax or ERISA matters.

         Original Value: The lesser of (a) the Appraised Value of a Mortgaged
Property at the time the related Mortgage Loan was originated and (b) if the
Mortgage Loan was made to finance the acquisition of the related Mortgaged
Property, the purchase price paid for the Mortgaged Property by the Mortgagor
at the time the related Mortgage Loan was originated.

         Overcollateralization Amount: With respect to any Payment Date will
be equal to the amount, if any, by which (x) the Aggregate Collateral Balance
for such Payment Date exceeds

                                      31
<PAGE>

(y) the aggregate Class Principal Amount of the Notes, in each case after
giving effect to payments on such Payment Date.

         Overcollateralization Deficiency Amount: With respect to any Payment
Date, the excess, if any, of the Targeted Overcollateralization Amount for
that Payment Date over the Overcollateralization Amount for that Payment Date.

         Ownership Certificate: An equity certificate representing a 100%
undivided beneficial ownership interest in the Trust, substantially in the
form attached as part of Exhibit A to the Trust Agreement.

         Owner Trustee: _____________________, a ____________________, and any
successor in interest, not in its individual capacity, but solely as owner
trustee under the Trust Agreement.

         Owner Trustee Fee: The annual fee payable to the Owner Trustee by the
Trust Administrator pursuant to the Fee Letter Agreement specified in Section
7.03 of the Trust Agreement during the term of this Agreement.

         Payahead: With respect to any Mortgage Loan and any Due Date
therefor, any Scheduled Payment received by the Servicer during any Collection
Period in addition to the Scheduled Payment due on such Due Date, intended by
the related Mortgagor to be applied on a subsequent Due Date or Due Dates.

         Paying Agent: As defined in the Indenture. The initial Paying Agent
shall be the Trust Administrator.

         Payment Date: The [25th] day of each month or, if such [25th] day is
not a Business Day, the next succeeding Business Day, commencing in ________
200_.

         Percentage Interest: The Percentage Interest evidenced thereby shall
equal (i) with respect to the Ownership Certificate, the Percentage Interest
on the face of such certificate; or (ii) with respect to any Note, the initial
Note Principal Amount thereof, divided by the initial Class Principal Amount
of all Notes of the same Class.

         Performance Certification:  As defined in Section 10.05.

         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.

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

         Plan Asset Regulations: The Department of Labor regulations set forth
in 29 C.F.R. 2510.3 101.

                                      32
<PAGE>

         Pool:  [Pool 1], [Pool 2] or [Pool 3] as applicable.

         [Pool 1]: The portion of the Mortgage Pool identified as [Pool 1].

         [Pool 1] Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as [Pool 1] Mortgage Loans
on the Closing Date, which shall equal $_________________.

         [Pool 1] Senior Notes: The [Class AF-1A], [Class AF-1B], [Class
AF-2], [Class AF-3], [Class AF-4], [Class AF-5A], [Class AF-5B] and [Class
AF-6] Notes.

         [Pool 2]: The portion of the Mortgage Pool identified as [Pool 2].

         [Pool 2] Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as [Pool 2] Mortgage Loans
on the Closing Date, which shall equal $___________________.

         [Pool 2] Senior Notes:  The [Class 2-AV-1] and [Class 2-AV-2] Notes.

         [Pool 2] Sequential Trigger Event: With respect to any Payment Date
(i) prior to the Payment Date in ______ 200_, if (x) the aggregate amount of
Realized Losses on the Mortgage Loans in [Pool 2] from the Cut-off Date for
each such Mortgage Loan to (and including) the last day of the related Due
Period (reduced by the aggregate amount of any Recoveries related to the
Mortgage Loans in [Pool 2] received through the last day of that Due Period)
exceeds (y) ______% of the sum of the aggregate Cut-off Date Principal Balance
of the Initial Mortgage Loans in [Pool 2] and the [Pool 2] Pre-Funded Amount
or (ii) on or after the Payment Date in ______ 200_, if an Adjustable Rate
Trigger Event is in effect.

         [Pool 3]: The portion of the Mortgage Pool identified as [Pool 3].

         [Pool 3] Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as [Pool 3] Mortgage Loans
on the Closing Date, which shall equal $__________________.

         [Pool 3] Senior Notes: The [Class 3-AV-1], [Class 3-AV-2], [Class
3-AV-3] and [Class 3-AV-4] Notes.

         Pool Balance: With respect to each Pool and any Payment Date, the
aggregate of the Stated Principal Balances of the Mortgage Loans in such Pool.

         Prepayment Interest Excess Amount: For any Servicer Remittance Date
and any Principal Prepayment received during the portion of the related
Prepayment Period occurring from and including the first day through the
fifteenth day of the calendar month in which such Servicer Remittance Date
occurs, an amount equal to interest (to the extent received) due in connection
with such Principal Prepayment.

         Preference Amount: Any payment of principal or interest on a [Class
AF-5B] Note which has become Due for Payment and which was made to a Holder by
or on behalf of the

                                      33
<PAGE>

Trust Fund, which has been deemed a preferential transfer and was previously
recovered from the Holder pursuant to the United States Bankruptcy Code in
accordance with a final, non-appealable order of a court of competent
jurisdiction.

         Preference Claim:  As defined in Section 5.07(h).

         Pre-Funded Amount: The amount deposited in the Pre-Funding Account on
the Closing Date, which shall equal $________________.

         Pre-Funding Account: The separate Eligible Account created and
maintained by the Trust Administrator pursuant to this Agreement in the name
of the Trust Administrator for the benefit of the Noteholders and designated
"_______________________, in trust for registered holders of [ ] 200__-[ ]."
Funds in the Pre-Funding Account shall be held in trust for the Noteholders
for the uses and purposes set forth in this Agreement.

         Prepayment Interest Shortfall Amount: With respect to any voluntary
Principal Prepayment in full or in part by the Mortgagor on any Mortgage Loan
that is received during the period from the first day of the Prepayment Period
through the last day of the calendar month preceding the related Payment Date,
the amount, if any, by which one month's interest at the Mortgage Rate minus
the Servicing Fee for such Mortgage Loan on the amount of such Principal
Prepayment exceeds the amount of interest received from such Mortgagor in
respect of such Principal Prepayment.

         Prepayment Period: With respect to any Payment Date, the period
beginning from and including the sixteenth day of the month preceding the
month in which such Payment Date occurs (or, in the case of the initial
prepayment period, beginning on the Cut-off Date) to and including the
fifteenth day of the month in which such Payment Date occurs.

         Prepayment Premiums: Any prepayment fees and penalties to be paid by
the Mortgagor on a Mortgage Loan in the case of a full or partial voluntary
prepayment of such Mortgage Loan during the related Prepayment Period.

         Prime Rate: The prime rate of the United States money center
commercial banks as published in The Wall Street Journal, Northeast Edition.

         Principal Deficiency Amount: With respect to any class of Subordinate
Notes and any Payment Date, the lesser of (a) the excess, if any, of (1) the
Total Principal Deficiency Amount over (2) the aggregate of the Principal
Deficiency Amounts for the classes of Subordinate Notes, if any, that have a
lower priority of payment than the subject class and (b) the Class Principal
Amount of the subject class of Notes immediately prior to such Payment Date.

         Principal Distribution Amount: With respect to each Payment Date and
a Pool, the sum of (i) the Principal Remittance Amount for such Pool for such
Payment Date, (ii) the Extra Principal Distribution Amount for such Pool for
such Payment Date and (iii) with respect to the Payment Date immediately
following the end of the Funding Period, the amount, if any, remaining in the
Pre-Funding Account at the end of the Funding Period (net of any investment
income therefrom) allocable to such Pool.

                                      34
<PAGE>

         Principal Payment Amount: With respect to each Pool for any Payment
Date, an amount equal to the Principal Remittance Amount for such Pool for
such date minus the Aggregate Overcollateralization Release Amount
attributable to such Pool for such Payment Date.

         Principal Prepayment: Any payment or other recovery of principal on a
Mortgage Loan, including any payment or other recovery of principal in
connection with the repurchase of a Mortgage Loan by the Seller, the Servicer
or any other Person received in advance of such Mortgage Loan's scheduled Due
Date.

         Principal Remittance Amount: With respect to any Payment Date and for
each Pool, (a) the sum of (i) all principal collected (other than the
principal portion of Payaheads) or advanced in respect of Scheduled Payments
on the Mortgage Loans in such Pool during the related Collection Period by the
Servicer (less unreimbursed Advances due to the Servicer or the Indenture
Trustee as successor Servicer, or any other successor Servicer, with respect
to such Pool, and any unreimbursed Servicing Advances, in each case, to the
extent allocable to principal and to the extent provided under Sections
4.08(i) and (ii)), (ii) all Principal Prepayments in full or in part received
during the related Prepayment Period on the Mortgage Loans in such Pool, (iii)
the Stated Principal Balance of each Mortgage Loan in such Pool that was
purchased from the Trust Estate during the related Prepayment Period, (iv) the
portion of any Substitution Amount paid with respect to any Deleted Mortgage
Loan relating to a Mortgage Loan in such Pool during the related Prepayment
Period allocable to principal, (v) all Net Liquidation Proceeds, Insurance
Proceeds, REO Disposition Proceeds and other Recoveries collected with respect
to such Mortgage Loans in such Pool during the related Prepayment Period, to
the extent allocable to principal and (vi) all other unscheduled collections
and recoveries in respect of principal during the related Prepayment Period,
as reduced by (b) such Pool's pro rata share of: other costs, expenses, fees
or liabilities reimbursable to the Indenture Trustee, the Owner Trustee, the
Trust Administrator and the Servicer to the extent provided in this Agreement,
the Trust Agreement and the Indenture and to the extent not reimbursed from
the Interest Remittance Amount, or otherwise.

         Proceeding: Any suit in equity, action at law or other judicial or
administrative proceeding.

         Property Charges:  As defined in Section 4.09(d).

         Prospectus: The Prospectus Supplement, together with the accompanying
prospectus dated _________, 200_.

         Prospectus Supplement: The prospectus supplement dated _____, 200_
relating to the Notes.

         Purchase Price: With respect to the purchase of a Mortgage Loan or
related REO Property pursuant to this Agreement, an amount equal to the sum of
(a) 100% of the unpaid principal balance of such Mortgage Loan, (b) accrued
interest thereon at the applicable Mortgage Rate, from the date as to which
interest was last paid to (but not including) the Due Date in the Collection
Period during which such Mortgage Loan or REO Property is being so purchased;
(c) if applicable, the fair market value of the REO Property and all other
property being purchased;

                                      35
<PAGE>

(d) any unreimbursed Servicing Advances with respect to such Mortgage Loan;
and (e) any costs and damages incurred by the Trust Estate associated with any
violation of applicable federal, state or local anti-predatory or anti-abusive
lending laws with respect to the related Mortgage Loan. The Servicer shall be
reimbursed from the Purchase Price for any Mortgage Loan or related REO
Property for any Advances made or other amounts advanced with respect to such
Mortgage Loan that are reimbursable to the Servicer under this Agreement,
together with any accrued and unpaid Servicing Fee with respect to such
Mortgage Loan.

         Qualified GIC: A guaranteed investment contract or surety bond
providing for the investment of funds in the Collection Account and insuring a
minimum, fixed or floating rate of return on investments of such funds, which
contract or surety bond shall:

                  (i) be an obligation of an insurance company or other
         corporation whose long term debt is rated by each Rating Agency in
         one of its two highest rating categories or, if such insurance
         company has no long term debt, whose claims paying ability is rated
         by each Rating Agency in one of its two highest rating categories,
         and whose short-term debt is rated by each Rating Agency in its
         highest rating category;

                  (ii) provide that the Trust Administrator on behalf of the
         Indenture Trustee may exercise all of the rights under such contract
         or surety bond without the necessity of taking any action by any
         other Person;

                  (iii) provide that if at any time the then current credit
         standing of the obligor under such guaranteed investment contract is
         such that continued investment pursuant to such contract of funds
         would result in a downgrading of any rating of the Notes, the Trust
         Administrator shall terminate such contract without penalty and be
         entitled to the return of all funds previously invested thereunder,
         together with accrued interest thereon at the interest rate provided
         under such contract to the date of delivery of such funds to the
         Trust Administrator;

                  (iv) provide that the Indenture Trustee's interest therein
         shall be transferable to any successor trustee hereunder; and

                  (v) provide that the funds reinvested thereunder and accrued
         interest thereon be returnable to the Collection Account not later
         than the Business Day prior to any Payment Date.

         Qualified Insurer: An insurance company duly qualified as such under
the laws of the states in which the related Mortgaged Properties are located,
duly authorized and licensed in such states to transact the applicable
insurance business and to write the insurance provided and whose claims paying
ability is rated by each Rating Agency in its highest rating category or whose
selection as an insurer will not adversely affect the rating of the Notes.

         [Qualified REIT Subsidiary: A direct or indirect 100% owned
subsidiary of a REIT that satisfies the requirements of Section 856(i) of the
Code.]

         Qualifying Substitute Mortgage Loan: In the case of a Mortgage Loan
substituted for a Deleted Mortgage Loan pursuant to the terms of this
Agreement, a Mortgage Loan that, on the

                                      36
<PAGE>

date of such substitution, (i) has an outstanding Stated Principal Balance (or
in the case of a substitution of more than one mortgage loan for a Deleted
Mortgage Loan, an aggregate Stated Principal Balance), after application of
all Scheduled Payments due during or prior to the month of substitution, not
in excess of, and not more than [5]% less than, the outstanding Stated
Principal Balance of the Deleted Mortgage Loan as of the Due Date in the
calendar month during which the substitution occurs, (ii) has a Mortgage Rate
not less than, and not more than [0.50]% higher than, the Mortgage Rate on the
Deleted Mortgage Loan, (iii) if applicable, has a maximum Mortgage Rate not
less than the maximum Mortgage Rate on the Deleted Mortgage Loan, (iv) has a
minimum Mortgage Rate not less than the minimum Mortgage Rate of the Deleted
Mortgage Loan, (v) has a gross margin equal to or greater than the gross
margin of the Deleted Mortgage Loan, (vi) (a) has a next adjustment date not
later than the next adjustment date on the Deleted Mortgage Loan, (b) has an
initial periodic rate cap not less than the Deleted Mortgage Loan and (c) has
a subsequent periodic rate cap not less than the Deleted Mortgage Loan, (vii)
has the same Due Date as the Deleted Mortgage Loan, (viii) has a remaining
stated term to maturity not longer than 18 months and not more than 18 months
shorter than the remaining stated term to maturity of the related Deleted
Mortgage Loan, (ix) is current as of the date of substitution, (x) has a
Loan-to-Value Ratio as of the date of substitution equal to or lower than the
Loan-to-Value Ratio of the Deleted Mortgage Loan as of such date, (xi) has
been underwritten by the Seller in accordance with the same underwriting
criteria and guidelines as the Deleted Mortgage Loan, (xii) has a risk grading
determined by the Seller at least equal to the risk grading assigned on the
Deleted Mortgage Loan, (xiii) is secured by the same property type as the
Deleted Mortgage Loan, (xiv) conforms to each representation and warranty
applicable to the Deleted Mortgage Loan made in the Mortgage Loan Purchase
Agreement, (xv) has the same first lien position as the Deleted Mortgage Loan,
(xvi) is covered by a primary mortgage insurance policy if the Deleted
Mortgage Loan was so covered, (xvii) contains provisions covering the payment
of Prepayment Premium by the Mortgagor for early prepayment of the Mortgage
Loan at least as favorable to the Trust as the Deleted Mortgage Loan, (xviii)
has a maturity date not later than the maturity date of the latest maturing
Mortgage Loan in the Mortgage Pool as of the Closing Date, (xix) has the same
Index as the Deleted Mortgage Loan, (xx) if originated on or after November
27, 2003, is not a "high cost" loan subject to the New Jersey Home Ownership
Security Act of 2003 and (xxi) if originated on or after January 1, 2004 is
not a "high-cost" loan subject to the New Mexico Home Loan Protection Act. In
the event that one or more mortgage loans are substituted for one or more
Deleted Mortgage Loans, the amounts described in clause (i) hereof shall be
determined on the basis of aggregate Stated Principal Balances, the Mortgage
Rates described in clause (ii) hereof shall be determined on the basis of
weighted average Mortgage Rates, the risk gradings described in clause (xii)
hereof shall be satisfied as to each such mortgage loan, the terms described
in clause (viii) hereof shall be determined on the basis of weighted average
remaining term to maturity, the Loan-to-Value Ratios described in clause (x)
hereof shall be satisfied as to each such mortgage loan and, except to the
extent otherwise provided in this sentence, the representations and warranties
described in clause (xiv) hereof must be satisfied as to each Qualified
Substitute Mortgage Loan or in the aggregate, as the case may be.

         Rating Agency:  Each of Moody's and S&P.

         Realized Loss: With respect to each Liquidated Mortgage Loan, an
amount equal to (i) the unpaid principal balance of such Mortgage Loan as of
the date of liquidation, minus (ii)

                                      37
<PAGE>

Liquidation Proceeds received, to the extent allocable to principal, net of
amounts that are reimbursable therefrom to the Servicer with respect to such
Mortgage Loan (other than Advances of principal) including Liquidation
Expenses. In determining whether a Realized Loss is a Realized Loss of
principal, Liquidation Proceeds shall be allocated, first, to payment of
Liquidation Expenses, then to accrued unpaid interest and finally to reduce
the principal balance of the Mortgage Loan.

         Record Date: With respect to each Payment Date and each Class of
Notes, the Business Day prior to the related Payment Date, and with respect to
any Class of Definitive Notes, the last Business Day of the month immediately
preceding the month in which the Payment Date occurs (or, in the case of the
first Payment Date, the Closing Date).

         Recovery: With respect to any Liquidated Mortgage Loan, an amount
received in respect of principal on such Mortgage Loan which has previously
been allocated as a Realized Loss to a Class or Classes of Notes net of
reimbursable expenses.

         Redemption Date: The first Payment Date on which
_____________________ is permitted to exercise its right to purchase the
assets of the Trust pursuant to Section 8.02 hereof.

         Reference Banks: Leading banks selected by the Trust Administrator
and engaged in transactions in Eurodollar deposits in the international
Eurocurrency market (1) with an established place of business in London, (2)
whose quotations appear on the Reuters Screen LIBO Page or the Bloomberg
Screen LIBO Page on the Determination Date in question, (3) which have been
designated as such by the Trust Administrator and (4) not controlling,
controlled by, or under common control with, the Depositor, the Indenture
Trustee, the Trust Administrator, the Servicer, the Seller or any successor
servicer.

         Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation
AB), 17 C.F.R. ss.ss.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.

         REIT: A real estate investment trust within the meaning of section
856 of the Code.

         Relevant UCC: The Uniform Commercial Code as in effect in the
applicable jurisdiction.

         REO Disposition: The final sale by the Servicer of any REO Property.

         REO Disposition Proceeds: All amounts received with respect to an REO
Disposition pursuant to Section 4.09(j).

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

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

                                      38
<PAGE>

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

         (b)      termination of an Operative Agreement (other than by
expiration of the agreement on its stated termination date or as a result of
all parties completing their obligations under such agreement), even if the
Depositor is not a party to such agreement (e.g., a servicing agreement with a
servicer contemplated by Item 1108(a)(3) of Regulation AB);

         (c)      with respect to the Servicer only, if the Servicer becomes
aware of any bankruptcy or receivership with respect to the Seller, the
Depositor, the Servicer, the Trust Administrator, the Indenture Trustee, the
Cap Counterparty, any enhancement or support provider contemplated by Items
1114(b) or 1115 of Regulation AB, or any other material party contemplated by
Item 1101(d)(1) of Regulation AB;

         (d)      with respect to the Trust Administrator, the Servicer and
the Depositor only, the occurrence of an early amortization, performance
trigger or other event, including an event of default under this Agreement;

         (e)      any amendment to this Agreement;

         (f)      the resignation, removal, replacement, substitution of the
Servicer, the Trust Administrator or the Indenture Trustee;

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

         (h)      with respect to the Trust Administrator, the Servicer and
the Depositor only, a required distribution to Holders of the Notes is not
made as of the required Payment Date under this Agreement.

         Reporting Subcontractor: With respect to the Servicer, the [Indenture
Trustee], or the Trust Administrator, any Subcontractor determined by such
Person pursuant to Section 10.08(a) to be "participating in the servicing
function" within the meaning of Item 1122 of Regulation AB. References to a
Reporting Subcontractor shall refer only to the Subcontractor of such Person
and shall not refer to Subcontractors generally.

         Reserve Interest Rate: The rate per annum that the Trust
Administrator determines to be either (1) the arithmetic mean (rounded upwards
if necessary to the nearest whole multiple of

                                      39
<PAGE>

[0.03125]%) of the one-month United States dollar lending rates which New York
City banks selected by the Trust Administrator are quoting on the relevant
LIBOR Determination Date to the principal London offices of leading banks in
the London interbank market or, (2) in the event that the Trust Administrator
can determine no such arithmetic mean, the lowest one-month United States
dollar lending rate which New York City banks selected by the Trust
Administrator are quoting on such LIBOR Determination Date to leading European
banks.

         Responsible Officer: Any vice president, any assistant vice
president, any assistant secretary, any associate, any assistant treasurer, or
any other officer of the Indenture Trustee or the Trust Administrator, as
applicable, customarily performing functions similar to those performed by any
of the above-designated officers and, in each case, having direct
responsibility for the administration of the Operative Agreements and also,
with respect to a particular matter, any other officer to whom such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject.

         Reuters Screen LIBO Page: The display designated as page "LIBOR01" on
the Reuters Monitor Money Rates Service (or such other page as may replace the
LIBOR01 page on that service for the purpose of displaying London interbank
offered rates of major banks).

         Rolling [Sixty-Day] Delinquency Rate: With respect to any Payment
Date on or after the Stepdown Date and any Pool or Pools, the average of the
[Sixty-Day] Delinquency Rates for such Pool or Pools and such Payment Date and
the two immediately preceding Payment Dates.

         Rolling Three Month Delinquency Rate: With respect to any Payment
Date, the average of the Delinquency Rates for each of the three (or one and
two, in the case of the first and second Payment Dates, respectively)
immediately preceding calendar months.

         S&P: Standard & Poor's Ratings Services, a division of The McGraw
Hill Companies, Inc., or any successor in interest.

         Sarbanes-Oxley Certification:  As defined in Section 10.05.

         Scheduled Payment: Each scheduled payment of principal and interest
(or of interest only, if applicable) to be paid by the Mortgagor on a Mortgage
Loan, as reduced (except where otherwise specified herein) by the amount of
any related Debt Service Reduction or pursuant to the Civil Relief Act
(excluding all amounts of principal and interest that were due on or before
the Cut-off Date whenever received) and, in the case of an REO Property, an
amount equivalent to the Scheduled Payment that would have been due on the
related Mortgage Loan if such Mortgage Loan had remained in existence.

         Securities Act:  The Securities Act of 1933, as amended

         Securities Intermediary: The Person acting as Securities Intermediary
under this Agreement (which is ____________________), its successor in
interest, and any successor Securities Intermediary appointed pursuant to
Section 5.04.

         Security Entitlement: The meaning specified in Section 8-102(a)(17)
of the New York UCC.

                                      40
<PAGE>

         Seller:  ____________________________.

         [Seller Shortfall Interest Requirement: With respect to the Business
Day immediately preceding the Payment Date in each of ________ 200_, ________
200_ and ________ 200_, is the sum of:

         (a)      the product of: (1) the excess of the aggregate Stated
Principal Balances for such Payment Date of the Mortgage Loans (including the
Subsequent Mortgage Loans, if any) owned by the Trust Fund at the beginning of
the related Due Period, over the aggregate Stated Principal Balance for such
Payment Date have a scheduled payment of interest due in the related Due
Period, and (2) a fraction, the numerator of which is the weighted average Net
Mortgage Rate of such Mortgage Loans (including such Subsequent Mortgage
Loans, if any) (weighted on the basis of the Stated Principal Balances thereof
for such Payment Date) and the denominator of which is 12; and

         (b)      the lesser of:

                  (i) the product of: (1) the amount on deposit in the
Pre-Funding Account at the beginning of the related Due Period, and (2) a
fraction, the numerator of which is the weighted average Net Mortgage Rate of
the Mortgage Loans (including Subsequent Mortgage Loans, if any) owned by the
Trust Fund at the beginning of the related Due Period (weighted on the basis
of the Stated Principal Balances thereof for such Payment Date) and the
denominator of which is 12; and

                  (ii) the excess of (x) the sum of the amount of Current
Interest and Interest Carry Forward Amount due and payable on the
interest-bearing Notes and the [Class AF-5B] Premium, in each case for such
Payment Date, over (y) Interest Remittance Amount otherwise available to pay
Current Interest and the Interest Carry Forward Amount on the interest-bearing
Notes for such Payment Date (after giving effect to the addition of any
amounts in clause (a) of this definition of Seller Shortfall Interest
Requirement to Interest Remittance Amount for such Payment Date).

         Senior Enhancement Percentage: For any Payment Date, the fraction,
expressed as a percentage, the numerator of which is the sum of the aggregate
Class Principal Amounts of the Subordinate Notes and the Overcollateralization
Amount (which, for purposes of this definition only, shall not be less than
zero) in each case after giving effect to payments on such Payment Date and
the denominator of which is the Aggregate Collateral Balance for such Payment
Date.

         Senior Note: Any [Class AF-1A], [Class AF-1B], [Class AF-2], [Class
AF-3], [Class AF-4], [Class AF-5A], [Class AF-5B], [Class AF-6], [Class
2-AV-1], [Class 2-AV-2], [Class 3-AV-1], [Class 3-AV-2], [Class 3-AV-3] or
[Class 3-AV-4] Note.

         Servicer: _________________________, or its successor in interest or
assigns or any successor to the Servicer under this Agreement as herein
provided.

         Servicer Event of Default: Any one of the conditions or circumstances
enumerated in Section 4.13 with respect to the Servicer.

                                      41
<PAGE>

         Servicer Remittance Date: The Business Day prior to each Payment
Date, commencing in _________ 200_.

         Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses other than Advances (including reasonable
attorneys' fees and disbursements) incurred in the performance by the Servicer
of its servicing obligations, including, but not limited to, the cost of (a)
the preservation, inspection, restoration and protection of the Mortgaged
Property, (b) any enforcement or administrative or judicial proceedings,
including foreclosures, (c) the management and liquidation of the Mortgaged
Property if the Mortgaged Property is acquired in satisfaction of the
Mortgage, (d) taxes, assessments, water rates, sewer rents and other charges
which are or may become a lien upon the Mortgaged Property and fire and hazard
insurance coverage and (e) any losses sustained by the Servicer with respect
to the liquidation of the Mortgaged Property. Notwithstanding anything to the
contrary herein, in the event the Servicer determines in its reasonable
judgment that a Servicing Advance is a Nonrecoverable Advance, the Servicer
shall be under no obligation to make such Servicing Advance.

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

         Servicing Fee: As to any Payment Date and each Mortgage Loan, an
amount equal to the product of (a) one-twelfth of the Servicing Fee Rate and
(b) the Stated Principal Balance of such Mortgage Loan as of the first day of
the related Collection Period.

         Servicing Fee Rate: With respect to each Mortgage Loan, ___% per
annum.

         Servicing File: The items pertaining to a particular Mortgage Loan
including, but not limited to, the computer files, data disks, books, records,
data tapes, notes, and all additional documents generated as a result of or
utilized in originating and/or servicing each Mortgage Loan, which are held in
trust for the Indenture Trustee by the Servicer.

         Servicing Standard: The servicing and administration of the Mortgage
Loans for which the Servicer is responsible hereunder (a) in the same manner
in which, and with the same care, skill, prudence and diligence with which,
the Servicer generally services and administers similar mortgage loans with
similar mortgagors (i) for other third parties, giving due consideration to
customary and usual standards of practice of prudent institutional residential
mortgage lenders servicing their own loans or (ii) held in the Servicer's own
portfolio, (b) with a view to the maximization of the recovery on such
Mortgage Loans on a net present value basis and the best interests of the
Trust or any Person to which the Mortgage Loans may be transferred by the
Trust, (c) without regard to (i) any relationship that the Servicer or any
affiliate thereof may have with the related Mortgagor or any other party to
the transactions, (ii) the right of the Servicer to receive compensation or
other fees for its services rendered pursuant to this Agreement, (iii) the
obligation of the Servicer to make Servicing Advances, (iv) the ownership,
servicing or management by the Servicer or any affiliate thereof for others of
any other mortgage loans or mortgaged properties, and (v) any debt the
Servicer or any affiliate of the Servicer has extended to any mortgagor or any
affiliate of such mortgagor and (d) in accordance with the applicable state,
local and federal laws, rules and regulations.

                                      42
<PAGE>

         Stated Principal Balance: With respect to any Payment Date, either
(a) in the case of any Mortgage Loan, the principal balance of such Mortgage
Loan at the close of business on the Cut-off Date after giving effect to
principal payments due on or before the Cut-off Date, whether or not received,
less an amount equal to principal payments due after the Cut-off Date and on
or before the Due Date in the related Collection Period, whether or not
received from the Mortgagor or advanced by the Servicer, and all amounts
allocable to unscheduled principal payments (including Principal Prepayments,
Liquidation Proceeds, Insurance Proceeds and condemnation proceeds, in each
case to the extent identified and applied prior to or during the related
Prepayment Period), provided that the Stated Principal Balance of any
Liquidated Mortgage Loan shall be zero and (b) in the case of any REO
Property, the Stated Principal Balance of the related Mortgage Loan on the Due
Date immediately preceding the date of acquisition of such REO Property by or
on behalf of the Indenture Trustee (reduced by any amount applied as a
reduction of principal on the related Mortgage Loan).

         Stepdown Date: The later to occur of (1) the Payment Date in ________
200_ and (2) the first Payment Date on which on which the Senior Enhancement
Percentage (calculated for this purpose after giving effect to payments or
other recoveries in respect of the Mortgage Loans during the related
Collection Period, but before giving effect to payments on any Notes on such
Payment Date) is greater than or equal to _____%.

         Stepdown Target Subordination Percentage: For any Class of
Subordinate Notes, the respective percentage indicated in the following table:

                                               Stepdown Target Subordination
                                                         Percentage
                                                         ----------

[MF-1]                                                     ____%
[MF-2]                                                     ____%
[MF-3]                                                     ____%
[MF-4]                                                     ____%
[MF-5]                                                     ____%
[MF-6]                                                     ____%
[MF-7]                                                     ____%
[MF-8]                                                     ____%
[BF]                                                       ____%
[MV-1]                                                     ____%
[MV-2]                                                     ____%
[MV-3]                                                     ____%
[MV-4]                                                     ____%
[MV-5]                                                     ____%
[MV-6]                                                     ____%
[MV-7]                                                     ____%
[MV-8]                                                     ____%
[BV]                                                       ____%

                                      43
<PAGE>

         Stepup Date: The first Payment Date after the Payment Date on which
the Aggregate Collateral Balance is less than or equal to _____% of the sum of
the Aggregate Collateral Balance as of the Cut-off Date.

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

         Subordinate Cap Agreement: The interest rate cap agreement
transaction evidenced by the related Confirmation (as assigned to the Trust
pursuant to the Cap Agreement Assignment Agreement), with respect to the
Subordinate Notes.

         Subordinate Cap Agreement Payment Date: With respect to the
Subordinate Cap Agreement, the Business Day immediately preceding the related
Payment Date, beginning with the Payment Date in _________ 200_ and ending
with the Payment Date in __________ 200_.

         Subordinate Note: Any [Class MF-1], [Class MF-2], [Class MF-3],
[Class MF-4], [Class MF-5], [Class MF-6], [Class MF-7], [Class MF-8], [Class
BF], [Class MV-1], [Class MV-2], [Class MV-3], [Class MV-4], [Class MV-5],
[Class MV-6], [Class MV-7], [Class MV-8] or [Class BV] Note.

         Subordinate Priority:  As defined in clause 6.02(d)(i).

         Subsequent Cut-off Date: As defined in the definition of Cut-off
Date.

         Subsequent Deposit: With respect to any Subsequent Transfer Date, an
amount equal to the aggregate of all amounts in respect of (i) principal of
the related Subsequent Mortgage Loans due after the related Subsequent Cut-off
Date and received by the Servicer on or before such Subsequent Transfer Date
and not applied in computing the Cut-off Date Principal Balance thereof and
(ii) interest on the such Subsequent Mortgage Loans due after such Subsequent
Cut-off Date and received by the Servicer on or before the Subsequent Transfer
Date.

         Subsequent Mortgage Loan: Any Mortgage Loan conveyed to the Trustee
on a Subsequent Transfer Date, and listed on the related Loan Number and
Borrower Identification Mortgage Loan Schedule delivered pursuant to Section
2.01(f). When used with respect to a single Subsequent Transfer Date,
"Subsequent Mortgage Loan" shall mean a Subsequent Mortgage Loan conveyed to
the Trust Administrator on such Subsequent Transfer Date.

         Subsequent Transfer Agreement: A Subsequent Transfer Agreement
substantially in the form of Exhibit J hereto, executed and delivered by the
Issuer, the Depositor, the Servicer and the Trust Administrator as provided in
Section 2.01(d).

         [Subsequent Transfer Date: For any Subsequent Transfer Agreement, the
"Subsequent Transfer Date" identified in such Subsequent Transfer Agreement;
provided, however, the Subsequent Transfer Date for any Subsequent Transfer
Agreement must be a Business Day and

                                      44
<PAGE>

may not be a date earlier than the date on which the Subsequent Transfer
Agreement is executed and delivered by the parties thereto pursuant to Section
2.01(d).]

         [Subsequent Transfer Date Purchase Amount: With respect to any
Subsequent Transfer Date, the "Subsequent Transfer Date Purchase Amount"
identified in the related Subsequent Transfer Agreement which shall be an
estimate of the aggregate Stated Principal Balances of the Subsequent Mortgage
Loans identified in such Subsequent Transfer Agreement.]

         [Subsequent Transfer Date Transfer Amount: With respect to any
Subsequent Transfer Date, an amount equal to the lesser of (i) the aggregate
Stated Principal Balances as of the related Subsequent Cut-off Dates of the
Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date, as listed
on the related Loan Number and Borrower Identification Mortgage Loan Schedule
delivered pursuant to Section 2.01(f) and (ii) the amount on deposit in the
Pre-Funding Account.]

         Substitution Amount: The amount, if any, by which the Stated
Principal Balance of a Deleted Mortgage Loan exceeds the Stated Principal
Balance of the related Qualifying Substitute Mortgage Loan, or aggregate
Stated Principal Balance, if applicable, plus unpaid interest thereon, any
related unpaid Advances or Servicing Advances (including any interest on such
unpaid Advances or Servicing Advances), unpaid Servicing Fees and unpaid
Servicing Fees and the amount of any costs and damages incurred by the Trust
Fund associated with a violation of any applicable federal, state or local
predatory or abusive lending law in connection with the origination of such
Deleted Mortgage Loan.

         Target Amount: With respect to any Payment Date, an amount equal to
the Aggregate Collateral Balance as of such Payment Date minus the Targeted
Overcollateralization Amount for such Payment Date.

         Telerate Page 3750: The display currently so designated as "Page
3750" on the Moneyline Telerate Service (or such other page selected by the
Servicer as may replace Page 3750 on that service for the purpose of
displaying daily comparable rates on prices).

         Termination Price: The sum, as calculated by the Servicer, of (a)
100% of the aggregate outstanding principal balance of the Mortgage Loans,
plus accrued interest thereon at the applicable Mortgage Rate, (b) any costs
and damages incurred by the Trust associated with a violation of any
applicable federal, state or local predatory or abusive lending law, (c) the
fair market value of the REO Property and all other property being purchased,
(d) any unreimbursed Servicing Advances, (e) any Basis Risk Shortfall and
Unpaid Basis Risk Shortfall amounts and (f) all other amounts to be paid or
reimbursed to the Servicer, the Trust Administrator, the Indenture Trustee and
the Owner Trustee.

         Title Insurance Policy: A title insurance policy maintained with
respect to a Mortgage Loan.

         Total Remittance Amount: With respect to any Payment Date, the sum of
(i) the Interest Remittance Amount for all Pools for such Payment Date and
(ii) Principal Remittance Amount for all Pools for such Payment Date.

                                      45
<PAGE>

         Total Principal Deficiency Amount: With respect to any Payment Date,
the excess, if any, of the aggregate Class Principal Amount of the Notes after
giving effect to payments on such Payment Date over the Aggregate Collateral
Balance as of the last day of the related Collection Period.

         Trust or Trust Fund:  The Issuer.

         Trust Account Property: The Trust Account, all amounts and
investments held from time to time in the Trust Account (whether in the form
of deposit accounts, physical property, book-entry securities, uncertificated
securities, securities entitlements, investment property or otherwise) and all
proceeds of the foregoing.

         Trust Account:  The Collection Account.

         Trust Agreement: The trust agreement dated _______, 200_, between the
Depositor and the Owner Trustee, as amended and restated on _______, 200_,
among the Depositor, the Trust Administrator and the Owner Trustee, as such
may be amended or supplemented from time to time.

         Trust Estate: The assets of the Issuer and pledged by the Issuer to
the Indenture Trustee under the Indenture, which assets consist of all
accounts, accounts receivable, contract rights, general intangibles, chattel
paper, instruments, documents, money, deposit accounts, certificates of
deposit, goods, notes, drafts, letters of credit, advices of credit,
investment property, uncertificated securities and rights to payment of any
and every kind consisting of, arising from or relating to any of the
following: (a) the Mortgage Loans listed in the Mortgage Loan Schedule, and
principal due and payable after the Cut-off Date, but not including interest
and principal due and payable on any Mortgage Loans on or before the Cut-off
Date, together with the Mortgage Files relating to such Mortgage Loans; (b)
any Insurance Proceeds, REO Property, Liquidation Proceeds, REO Disposition
Proceeds and other recoveries (in each case, subject to clause (a) above), (c)
the Collection Account, any Escrow Account, the Interest Rate Cap Account and
all amounts deposited therein pursuant to the applicable provisions of this
Agreement, (d) any Insurance Policies, (e) the rights of the Depositor under
the Mortgage Loan Purchase Agreement, (f) the rights of the Trust under each
Interest Rate Cap Agreement and (g) all income, revenues, issues, products,
revisions, substitutions, replacements, profits, rents and all cash and
non-cash proceeds of the foregoing.

         UCC: The Uniform Commercial Code as enacted in the relevant
jurisdiction.

         Unpaid Basis Risk Shortfall: With respect to any Payment Date and any
Class of Notes, the aggregate of all Basis Risk Shortfalls with respect to
such Class remaining unpaid from all previous Payment Dates, plus interest
accrued thereon at the applicable Note Interest Rate (calculated without
giving effect to the applicable Net Funds Cap).

         Unpaid Realized Loss Amount: For the [Class 2-AV-2] Notes and any
Class of Subordinate Certificates and any Payment Date, (x) the portion of the
aggregate Applied Realized Loss Amount previously allocated to that Class
remaining unpaid from prior Payment Dates minus (y) any increase in the Note
Principal Amount of that Class due to the allocation of Recoveries to the Note
Principal Amount of that Class [P]ursuant to Section 5.02.

                                      46
<PAGE>

         Voting Interests: The portion of the voting rights of all the Notes
that is allocated to any Note for purposes of the voting provisions of this
Agreement. At all times during the term of this Agreement, [99]% of all voting
rights will be allocated among the holders of the Notes as provided below. The
portion of such voting rights allocated to any Class of Notes will be based on
the fraction, expressed as a percentage, the numerator of which is the Class
Principal Amount of such Class as of the date of determination and the
denominator of which is the aggregate Class Principal Amount of the Notes as
of such date. At all times during the term of the Indenture and this
Agreement, the holders of the Ownership Certificate will be allocated [1]% of
the voting rights for so long as the Class remains outstanding. The voting
rights allocation to any Class of Notes or the Ownership Certificate will be
allocated among all holders of each such Class or Ownership Certificate in
proportion to their respective Note Principal Amounts of such Notes or
Percentage Interests of the Ownership Certificate.

         Section 1.02. Calculations With Respect to the Mortgage Loans.
Calculations required to be made pursuant to this Agreement with respect to
any Mortgage Loan in the Trust Estate shall be made based upon current
information as to the terms of the Mortgage Loans and reports of payments
received from the Mortgagor on such Mortgage Loans. Payments to be made by the
Trust Administrator shall be based on information provided by the Servicer.
The Trust Administrator shall not be required to recompute, verify or
recalculate the information supplied to it by the Servicer.

         Section 1.03. Calculations With Respect to Accrued Interest. Accrued
interest, if any, on any Note shall be calculated based upon a 360-day year
and the actual number of days in each Accrual Period.

                                  ARTICLE II

                         CONVEYANCE OF MORTGAGE LOANS

         Section 2.01. Creation and Declaration of Trust Estate; Conveyance of
Mortgage Loans.

         (a) Mortgage Loans. As of the Closing Date, in consideration of the
Issuer's delivery of the Notes and the Ownership Certificate to the Depositor
or its designee, and concurrently with the execution and delivery of this
Agreement, the Depositor does hereby transfer, assign, set over, deposit with
and otherwise convey to the Issuer, without recourse, subject to Section 3.01,
in trust, all the right, title and interest of the Depositor in and to the
Mortgage Loans. Such conveyance includes, without limitation, the right to all
payments of principal and interest received on or with respect to the Mortgage
Loans on and after the Cut-off Date (other than payments of principal and
interest due on or before such date), and all such payments due after such
date but received prior to such date and intended by the related Mortgagors to
be applied after such date together with all of the Depositor's right, title
and interest in any REO Property and the proceeds thereof, the Depositor's
rights under any Insurance Policies related to the Mortgage Loans, the
Depositor's security interest in any collateral pledged to secure the Mortgage
Loans, including the Mortgaged Properties and any proceeds of the foregoing,
to have and to hold, in trust; and the Indenture Trustee declares that,
subject to the review provided for in Section 2.02, it has received and shall
hold the Trust Estate, as Indenture Trustee, in trust, for the benefit and use
of the Noteholders and for the purposes and subject to the terms and
conditions

                                      47
<PAGE>

set forth in this Agreement, and, concurrently with such receipt, the Issuer
has issued and delivered the Notes and the Ownership Certificate to or upon
the order of the Depositor, in exchange for the Mortgage Loans and the other
property of the Trust Estate.

         Concurrently with the execution and delivery of this Agreement, the
Depositor does hereby assign to the Issuer all of its rights and interest
under the Mortgage Loan Purchase Agreement but without delegation of any of
its obligations thereunder. The Issuer hereby accepts such assignment, and
shall be entitled to exercise all the rights of the Depositor under the
Mortgage Loan Purchase Agreement as if, for such purpose, it were the
Depositor. Upon the issuance of the Notes, ownership in the Trust Estate shall
be vested in the Issuer, subject to the lien created by the Indenture in favor
of the Indenture Trustee, for the benefit of the Noteholders. The foregoing
sale, transfer, assignment, set-over, deposit and conveyance does not and is
not intended to result in creation or assumption by the Indenture Trustee of
any obligation of the Depositor, the Seller, or any other Person in connection
with the Mortgage Loans or any other agreement or instrument relating thereto
except as specifically set forth herein.

         The Depositor further agrees to cause ________________________ to
assign all of its right, title and interest in and to the interest rate
corridor transaction evidenced by each Confirmation to the Issuer, and all
such right, title and interest shall be deemed to have been assigned by
________________________ to the Depositor and by the Depositor to the Issuer.

         (b) Subject to the execution and delivery of the related Subsequent
Transfer Agreement as provided by Section 2.01(d) and the terms and conditions
of this Agreement, the Depositor sells, transfers, assigns, sets over and
otherwise conveys to the Issuer, without recourse, on each Subsequent Transfer
Date, all the right, title and interest of the Depositor in and to the related
Subsequent Mortgage Loans, including all interest and principal received and
receivable by the Depositor on or with respect to such Subsequent Mortgage
Loans after the related Subsequent Cut-off Date (to the extent not applied in
computing the Cut-off Date Principal Balance thereof) or deposited into the
Collection Account by the Servicer on behalf of such Seller as part of any
related Subsequent Deposit as provided in this Agreement, other than principal
due on such Subsequent Mortgage Loans on or prior to the related Subsequent
Cut-off Date and interest accruing prior to the related Subsequent Cut-off
Date.

         Immediately upon the conveyance of the Subsequent Mortgage Loans
referred to in the preceding paragraph, the Depositor sells, transfers,
assigns, sets over and otherwise conveys to the Trustee for benefit of the
Noteholders and the [Class AF-5B] Insurer, without recourse, all right title
and interest in the Subsequent Mortgage Loans.

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

         (d) On any Business Day during the Funding Period designated by the
[Depositor] to the Issuer, the Depositor and trust Administrator shall
complete, execute and deliver a Subsequent Transfer Agreement. After the
execution and delivery of such Subsequent Transfer Agreement, on the
Subsequent Transfer Date, the Trust Administrator shall set aside in the
Pre-Funding Account an amount equal to the related Subsequent Transfer Date
Purchase Amount.

                                      48
<PAGE>

         (e) The transfer of Subsequent Mortgage Loans on the Subsequent
Transfer Date is subject to the satisfaction of each of the following
conditions:

                  (1) the Trust Administrator will be provided Opinions of
         Counsel addressed to the Rating Agencies as with respect to the sale
         of the Subsequent Mortgage Loans conveyed on such Subsequent Transfer
         Date (such opinions being substantially similar to the opinions
         delivered on the Closing Date to the Rating Agencies with respect to
         the sale of the Initial Mortgage Loans on the Closing Date), to be
         delivered as provided in Section 2.01(f);

                  (2) the execution and delivery of such Subsequent Transfer
         Agreement or conveyance of the related Subsequent Mortgage Loans does
         not result in a reduction or withdrawal of the any ratings assigned
         to the Notes by the Ratings Agencies (without regard to the [Class
         AF-5B] Policy, in the case of the [Class AF-5B] Notes);

                  (3) the Depositor shall deliver to the Trust Administrator
         an Officer's Certificate confirming the satisfaction of each of the
         conditions set forth in this Section 2.01(e) required to be satisfied
         by such Subsequent Transfer Date;

                  (4) each Subsequent Mortgage Loan conveyed on such
         Subsequent Transfer Date satisfies the representations and warranties
         applicable to it under this Agreement, provided, however, that with
         respect to a breach of a representation and warranty with respect to
         a Subsequent Mortgage Loan set forth in this clause (4), the
         obligation under this Agreement of the applicable Seller, to cure,
         repurchase or replace such Subsequent Mortgage Loan shall constitute
         the sole remedy against such Seller respecting such breach available
         to Noteholders, the Depositor or the Trust Administrator;

                  (5) the Subsequent Mortgage Loans conveyed on such
         Subsequent Transfer Date were selected in a manner reasonably
         believed not to be adverse to the interests of the Noteholders;

                  (6) no Subsequent Mortgage Loan conveyed on such Subsequent
         Transfer Date was [30] or more days delinquent;

                  (7) following the conveyance of the Subsequent Mortgage
         Loans on such Subsequent Transfer Date, the characteristics of each
         Pool will not vary by more than the amount specified below (other
         than the percentage of Mortgage Loans secured by Mortgaged Properties
         located in the State of California, which will not exceed [50]% of
         the Mortgage Pool and the percentage of mortgage loans in the Credit
         Grade Categories of "C" or below, which will not exceed [10]% of the
         Mortgage Loans in each Pool) from the characteristics listed below;
         provided that for the purpose of making such calculations, the
         characteristics for any Initial Mortgage Loan made will be taken as
         of the Initial Cut-off Date and the characteristics for any
         Subsequent Mortgage Loans will be taken as of the Subsequent Cut-off
         Date; and

[Pool 1]

                                      49
<PAGE>
                                                                  Permitted
                                                                   Variance
Characteristic                                      Value          or Range
--------------                                      -----          --------
Average Stated Principal Balance.................  $______            __%
Weighted Average Mortgage Rate...................   _____%           ____%
Weighted Average Original Loan-to-Value Ratio....   _____%            _%
Weighted Average Remaining Term to Maturity...... ___ months       _ months
Weighted Average Credit Bureau Risk Score........ ___ points       _ points

[Pool 2]
                                                                  Permitted
                                                                   Variance
Characteristic                                      Value          or Range
--------------                                      -----          --------
Average Stated Principal Balance.................  $______            __%
Weighted Average Mortgage Rate...................   _____%           ____%
Weighted Average Original Loan-to-Value Ratio....   _____%            _%
Weighted Average Remaining Term to Maturity...... ___ months       _ months
Weighted Average Credit Bureau Risk Score........ ___ points       _ points

[Pool 3]
                                                                  Permitted
                                                                   Variance
Characteristic                                      Value          or Range
--------------                                      -----          --------
Average Stated Principal Balance.................  $______            __%
Weighted Average Mortgage Rate...................   _____%           ____%
Weighted Average Original Loan-to-Value Ratio....   _____%            _%
Weighted Average Remaining Term to Maturity...... ___ months       _ months
Weighted Average Credit Bureau Risk Score........ ___ points       _ points

                  (8) none of the Sellers or the Depositor is insolvent and
         neither of the Sellers nor the Depositor will be rendered insolvent
         by the conveyance of Subsequent Mortgage Loans on such Subsequent
         Transfer Date.

         The Trustee shall not be required to investigate or otherwise verify
compliance with these conditions, except for its own receipt of documents
specified above, and shall be entitled to rely on the required Officer's
Certificate.

         (f) Within [six] Business Days after each Subsequent Transfer Date,
upon (1) delivery to the Trustee by the Depositor of the Opinions of Counsel
referred to in Section 2.01(e)(1) and (e)(8), (2) delivery to the Trustee by
the [Depositor] (on behalf of each Seller) of a Loan Number and Borrower
Identification Mortgage Loan Schedule reflecting the Subsequent Mortgage Loans
conveyed on such Subsequent Transfer Date and the Mortgage Pool into which
each Subsequent Mortgage Loan was conveyed, (3) deposit in the Collection
Account by the Servicer on behalf of the Sellers of the applicable Subsequent
Deposit, and (4) delivery to the Trust Administrator by the Depositor of an
Officer's Certificate confirming the satisfaction of

                                      50
<PAGE>

each of the conditions precedent set forth in this Section 2.01(f), the
Trustee shall pay the Depositor the Subsequent Transfer Date Transfer Amount
from such funds that were set aside in the Pre-Funding Account pursuant to
Section 2.01(d). The positive difference, if any, between the Subsequent
Transfer Date Transfer Amount and the Subsequent Transfer Date Purchase Amount
shall be re-invested by the Trust Administrator in the Pre-Funding Account.

         The Trustee shall not be required to investigate or otherwise verify
compliance with the conditions set forth in the preceding paragraph, except
for its own receipt of documents specified above, and shall be entitled to
rely on the required Officer's Certificate.

         Within [thirty] days after each Subsequent Transfer Date, the
Depositor shall deliver to the Trustee a letter of a nationally recognized
firm of independent public accountants stating whether or not the Subsequent
Mortgage Loans conveyed on such Subsequent Transfer Date conform to the
characteristics described in Section 2.01(e)(6) and (7).

         (g) In connection with such transfer and assignment, the Depositor
does hereby deliver to, and deposit with, or cause to be delivered to and
deposited with, the Indenture Trustee the following documents or instruments
with respect to each Mortgage Loan (each a "Mortgage File") so transferred and
assigned:

                  (i) the original Mortgage Note, endorsed either (A) in blank
         or (B) in the form of the Form of Endorsement set forth in Exhibit
         A-4 hereto, or with respect to any lost Mortgage Note, an original
         Lost Note Affidavit, in the form set forth in Exhibit C hereto,
         stating that the original Mortgage Note was lost, misplaced or
         destroyed, together with a copy of the related Mortgage Note;

                  (ii) the original of any guarantee executed in connection
         with the Mortgage Note, assigned to the Indenture Trustee;

                  (iii) the original Mortgage 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 or, if such Mortgage or power of attorney has been
         submitted for recording but has not been returned from the applicable
         public recording office, has been lost or is not otherwise available,
         a copy of such Mortgage or power of attorney, as the case may be,
         certified by an Officer's Certificate of the Depositor to be a true
         and complete copy of the original submitted for recording;

                  (iv) with respect to each Non-MERS Mortgage Loan, an
         original Assignment of Mortgage, in form and substance acceptable for
         recording. The Mortgage shall be assigned either (A) in blank,
         without recourse, or (B) so long as
         ____________________________________ is the Indenture Trustee, to
         "____________________________________, as Indenture Trustee of the
         ______ Mortgage Investment Trust 200_-__", without recourse or (C) to
         the order of the Indenture Trustee;

                  (v) an original copy of any intervening assignment of
         Mortgage showing a complete chain of assignments or, in the case of
         an intervening assignment that has been

                                      51
<PAGE>

         lost, a written Opinion of Counsel for the Seller that such original
         intervening assignment is not required to enforce the Indenture
         Trustee's interest in the Mortgage Loans;

                  (vi) the original or a certified copy of lender's title
         insurance policy (or, in lieu thereof, a commitment to issue such
         title insurance policy, with an original or a certified copy of such
         title insurance policy to follow as soon after the Closing Date as
         reasonably practicable) or attorney's opinion of title and abstract
         of title;

                  (vii) the original or copies of each assumption,
         modification, written assurance or substitution agreement, if any, or
         as to any such agreement which cannot be delivered prior to the
         Closing Date because of a delay caused by the public recording office
         where such assumption, modification or substitution agreement has
         been delivered for recordation, a photocopy of such assumption,
         modification or substitution agreement, pending delivery of the
         original thereof, together with an Officer's Certificate of the
         Depositor certifying that the copy of such assumption, modification
         or substitution agreement delivered to the Indenture Trustee is a
         true copy and that the original of such agreement has been forwarded
         to the public recording office; and

                  (viii) the original of any security agreement or equivalent
         instrument executed in connection with the Mortgage or as to any
         security agreement or equivalent instrument that cannot be delivered
         on or prior to the Closing Date because of a delay caused by the
         public recording office where such document has been delivered for
         recordation, a photocopy of such document, pending delivery of the
         original thereof, together with an Officer's Certificate of the
         Depositor certifying that the copy of such security agreement,
         chattel mortgage or their equivalent delivered to the Indenture
         Trustee is a true copy and that the original of such document has
         been forwarded to the public recording office.

         The Depositor and the Seller acknowledge and agree that the form of
endorsement attached hereto as Exhibit A-4 is intended to effect the transfer
to the Indenture Trustee, for the benefit of the Noteholders, of the Mortgage
Notes and the Mortgages.

         (h) Assignments of Mortgage with respect to each Non-MERS Mortgage
Loan shall be recorded; provided, however, that such Assignments need not be
recorded if, on or prior to the Closing Date, the Seller delivers an Opinion
of Counsel (which must be Independent counsel) acceptable to the Rating
Agencies, to the effect that recording in such states is not required to
protect the Indenture Trustee's interest in the related Non-MERS Mortgage
Loans.

         (i) In instances where a Title Insurance Policy is required to be
delivered to the Indenture Trustee under clause (b)(vi) above and is not so
delivered, the Seller will provide a copy of such Title Insurance Policy to
the Indenture Trustee as promptly as practicable after the execution and
delivery hereof, but in any case within [180] days of the Closing Date.

         (j) For Mortgage Loans (if any) that have been prepaid in full after
the Cut-off Date and prior to the Closing Date, the Depositor, in lieu of
delivering the above documents, herewith delivers to the Indenture Trustee an
Officer's Certificate which shall include a statement to the effect that all
amounts received in connection with such prepayment that are required to be
deposited in the Collection Account pursuant to Section 4.07 have been so
deposited. All

                                      52
<PAGE>

original documents that are not delivered to the Indenture Trustee shall be
held by the Servicer in trust for the benefit of the Indenture Trustee and the
Noteholders.

         Section 2.02. Acceptance of Trust Estate; Review of Documentation.

         (a) Subject to the provisions of Section 2.01, the Issuer
acknowledges receipt of the assets transferred by the Depositor of the assets
included in the Trust Estate and has directed that the documents referred to
in Section 2.01 and all other assets included in the definition of "Trust
Estate" be delivered to the Indenture Trustee on its behalf.

         The Indenture Trustee, by execution and delivery hereof, acknowledges
receipt by it of the Mortgage Files pertaining to the Mortgage Loans listed on
the Mortgage Loan Schedule, subject to review thereof by the Indenture Trustee
under this Section 2.02. The Indenture Trustee will execute and deliver to the
Depositor and the Servicer on the Closing Date an Initial Certification in the
form annexed hereto as Exhibit A-1.

         (b) Within [45] days after the Closing Date with respect to the
Initial Mortgage Loans and within [90] days after the Subsequent Transfer Date
with respect to the Subsequent Mortgage Loans, the Indenture Trustee will, for
the benefit of Noteholders, review each Mortgage File to ascertain that all
required documents set forth in Section 2.01 have been received and appear on
their face to contain the requisite signatures by or on behalf of the
respective parties thereto, and shall deliver to the Depositor and the
Servicer an Interim Certification in the form annexed hereto as Exhibit A-2 to
the effect that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan prepaid in full or any specifically identified
in such certification as not covered by such certification), (i) all of the
applicable documents specified in Section 2.01(b) are in its possession and
(ii) such documents have been reviewed by it and appear to relate to such
Mortgage Loan. The Indenture Trustee shall determine whether such documents
are executed and endorsed, but shall be under no duty or obligation to
inspect, review or examine any such documents, instruments, certificates or
other papers to determine that the same are valid, binding, legally effective,
properly endorsed, genuine, enforceable or appropriate for the represented
purpose or that they have actually been recorded or are in recordable form or
that they are other than what they purport to be on their face. The Indenture
Trustee shall not have any responsibility for verifying the genuineness or the
legal effectiveness of or authority for any signatures of or on behalf of any
party or endorser or for the perfection or priority of any document.

         (c) If in the course of the review described in paragraph (b) above
the Indenture Trustee discovers any document or documents constituting a part
of a Mortgage File that is missing, does not appear regular on its face (i.e.,
is mutilated, damaged, defaced, torn or otherwise physically altered) or
appears to be unrelated to the Mortgage Loans identified in the Mortgage Loan
Schedule, as applicable (each, a "Material Defect"), the Indenture Trustee
discovering such Material Defect shall identify the Mortgage Loan to which
such Material Defect relates in the Interim Certification delivered to the
Depositor and the Servicer. Within [90] days of its receipt of such notice,
the Seller shall be required to cure such Material Defect (and, in such event,
the Seller shall provide the Indenture Trustee with an Officer's Certificate
confirming that such cure has been effected). If the Seller does not so cure
such Material Defect, if a loss has been incurred with respect to such
Mortgage Loan that would, if such Mortgage

                                      53
<PAGE>

Loan were not purchased from the Trust Estate, constitute a Realized Loss, and
such loss is attributable to the failure of the Seller to cure such Material
Defect, the Seller shall repurchase the related Mortgage Loan from the Trust
Estate at the Purchase Price. A loss shall be deemed to be attributable to the
failure of the Seller to cure a Material Defect if, as determined by the
Seller acting in good faith, absent such Material Defect, such loss would not
have been incurred. The Seller may, in lieu of repurchasing a Mortgage Loan
pursuant to this Section 2.02, substitute for such Mortgage Loan a Qualifying
Substitute Mortgage Loan subject to the provisions of Section 3.03. The
failure of the Indenture Trustee to deliver the Interim Certification within
[45] days after the Closing Date or [90] days after the Subsequent transfer
Date shall not affect or relieve the Seller of its obligation to repurchase
any Mortgage Loan pursuant to this Section 2.02 or any other Section of this
Agreement requiring the repurchase of Mortgage Loans from the Trust Estate.

         (d) Within [180] days following the Closing Date with respect to the
Initial Mortgage Loans and within [180] days following the Subsequent Transfer
Date with respect to the Subsequent Mortgage Loans, the Indenture Trustee
shall deliver to the Depositor and the Servicer a Final Certification
substantially in the form attached as Exhibit A-3 evidencing the completeness
of the Mortgage Files in its possession or control, with any exceptions noted
thereto.

         (e) Nothing in this Agreement shall be construed to constitute an
assumption by the Trust Estate, the Indenture Trustee or the Noteholders of
any unsatisfied duty, claim or other liability on any Mortgage Loan or to any
Mortgagor.

         (f) For purposes of the determinations required to be made by the
Indenture Trustee pursuant to paragraphs (a) through (d) of this Section 2.02,
the Indenture Trustee shall be entitled to conclusively rely upon the
diskette, tape or other electronic media provided by or on behalf of the
Seller with respect to the Mortgage Loans as to whether (i) any guarantee was
executed in connection with any Mortgage Loan, (ii) any assumption,
modification or substitution agreement was executed in connection with any
Mortgage Loan, (iii) primary mortgage guaranty insurance is required with
respect to any Mortgage Loan or (iv) any security agreement or equivalent
instrument was executed in connection with any Mortgage Loan.

         Section 2.03. Grant Clause.

         (a) It is intended that the conveyance by the Depositor to the Issuer
of the Mortgage Loans, as provided for in Section 2.01, be construed as a sale
by the Depositor to the Issuer of the Mortgage Loans and other assets in the
Trust Estate for the benefit of the Noteholders. Further, it is not intended
that any such conveyance be deemed to be a pledge of the Mortgage Loans by the
Depositor to the Issuer to secure a debt or other obligation of the Depositor.
However, in the event that the Mortgage Loans are held to be property of the
Depositor or if for any reason this Agreement is held or deemed to create a
security interest in the Mortgage Loans and other assets in the Trust Estate,
then it is intended that (a) this Agreement shall also be deemed to be a
security agreement within the meaning of Articles 8 and 9 of the New York UCC
(or the Relevant UCC if not the New York UCC); (b) the conveyances provided
for in Section 2.01 shall be deemed to be (1) a grant by the Depositor to the
Issuer of a security interest in all of the Depositor's right (including the
power to convey title thereto), title and interest, whether now

                                      54
<PAGE>

owned or hereafter acquired, in and to (A) the Mortgage Loans, including the
Mortgage Notes, the Mortgages, any related insurance policies and all other
documents in the related Mortgage Files, (B) all amounts payable pursuant to
the Mortgage Loans in accordance with the terms thereof and (C) any and all
general intangibles consisting of, arising from or relating to any of the
foregoing, and all proceeds of the conversion, voluntary or involuntary, of
the foregoing into cash, instruments, securities or other property, including
without limitation all Liquidation Proceeds, all Insurance Proceeds, all
amounts from time to time held or invested in the Collection Account, whether
in the form of cash, instruments, securities or other property and (2) an
assignment by the Depositor to the Issuer of any security interest in any and
all of the Depositor's right (including the power to convey title thereto),
title and interest, whether now owned or hereafter acquired, in and to the
property described in the foregoing clauses (1)(A) through (C); (c) the
possession by the Indenture Trustee or any other agent of the Issuer of
Mortgage Notes, and such other items of property as constitute instruments,
money, negotiable documents or chattel paper shall be deemed to be "possession
by the secured party," or possession by a purchaser or a person designated by
such secured party, for purposes of perfecting the security interest pursuant
to the New York UCC and any other Relevant UCC (including, without limitation,
Section 9-313, 8-313 or 8-321 thereof); and (d) notifications to persons
holding such property, and acknowledgments, receipts or confirmations from
persons holding such property, shall be deemed notifications to, or
acknowledgments, receipts or confirmations from, financial intermediaries,
bailees or agents (as applicable) of the Issuer for the purpose of perfecting
such security interest under applicable law.

         (b) The Depositor and, at the Depositor's direction, the Issuer
shall, to the extent consistent with this Agreement, take such reasonable
actions as may be necessary to ensure that, if this Agreement were deemed to
create a security interest in the Mortgage Loans and the other property of the
Trust Estate, 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. Without limiting the
generality of the foregoing, the Depositor shall prepare and file any UCC
financing statements that are necessary to perfect the Indenture Trustee's
security interest in or lien on the Mortgage Loans, as evidenced by an
Officer's Certificate of the Depositor, and furnish a copy of each such filed
financing statement to the Trust Administrator. The Trust Administrator shall
prepare and file, at the expense of the Issuer, all filings necessary to
maintain the effectiveness of any original filings necessary under the
Relevant UCC to perfect the Indenture Trustee's security interest in or lien
on the Mortgage Loans, including without limitation (x) continuation
statements, and (y) to the extent that a Responsible Officer of the Trust
Administrator has received written notice of such change or transfer, such
other statements as may be occasioned by (1) any change of name of the Seller,
the Depositor or the Issuer, (2) any change of location of the place of
business or the chief executive office of the Seller or the Depositor or (3)
any transfer of any interest of the Seller or the Depositor in any Mortgage
Loan.

         Neither the Depositor nor the Issuer shall organize under the law of
any jurisdiction other than the State under which each is organized as of the
Closing Date (whether changing its jurisdiction of organization or organizing
under an additional jurisdiction) without giving [30] days' prior written
notice of such action to its immediate and mediate transferee, including the
Indenture Trustee. Before effecting such change, each of the Depositor or the
Issuer proposing to change its jurisdiction of organization shall prepare and
file in the appropriate filing office any financing statements or other
statements necessary to continue the perfection of the interests of

                                      55
<PAGE>

its immediate and mediate transferees, including the Indenture Trustee, in the
Mortgage Loans. In connection with the transactions contemplated by this
Agreement and the Indenture, each of the Depositor and the Issuer authorizes
its immediate or mediate transferee to file in any filing office any initial
financing statements, any amendments to financing statements, any continuation
statements, or any other statements or filings described in this Section
2.03(b).

         (c) The Depositor shall not take any action inconsistent with the
sale by the Depositor of all of its right, title and interest in and to the
Trust Estate and shall indicate or shall cause to be indicated in its records
and records held on its behalf that ownership of each Mortgage Loan and the
other property of the Issuer is held by the Issuer. In addition, the Depositor
shall respond to any inquiries from third parties with respect to ownership of
a Mortgage Loan or any other property of the Trust Estate by stating that it
is not the owner of such Mortgage Loan and that ownership of such Mortgage
Loan or other property of the Trust Estate is held by the Issuer on behalf of
the Noteholders.

         Section 2.04. Option to Contribute Derivative Instrument.

         At any time on or after the Closing Date, the Seller shall have the
right to contribute to, and deposit into, the Trust a derivative contract or
comparable instrument (a "Derivative Instrument"). The Derivative Instrument
may have a notional amount in excess of the sum of the beneficial interests in
the Trust. Any such instrument shall constitute a fully prepaid agreement. The
Trust Administrator shall have no tax reporting duties with respect to any
such Derivative Instrument.

                                 ARTICLE III

                        REPRESENTATIONS AND WARRANTIES

         Section 3.01. Representations and Warranties of the Depositor and the
Seller.

         (a) The Depositor hereby represents and warrants to the Issuer, the
Indenture Trustee for the benefit of Noteholders, the Trust Administrator, the
Servicer and the Seller as of the Closing Date or such other date as is
specified, that:

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

                  (ii) Immediately prior to the transfer by the Depositor to
         the Trust Estate of each Mortgage Loan, the Depositor had good and
         equitable title to each Mortgage Loan (insofar as such title was
         conveyed to it by the Seller) subject to no prior lien, claim,
         participation interest, mortgage, security interest, pledge, charge
         or other encumbrance or other interest of any nature;

                                      56
<PAGE>

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

                  (iv) As of the Subsequent Transfer Date, the Depositor has
         transferred all right, title and interest in the Subsequent Mortgage
         Loans to the Trust Estate

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

                  (vi) The Depositor has been duly organized and is validly
         existing as a corporation in good standing under the laws of the
         State of Delaware, with full power and authority to own its assets
         and conduct its business as presently being conducted; and

         (b) The Seller hereby represents and warrants to the Issuer, the
Indenture Trustee for the benefit of Noteholders, the Trust Administrator, the
Servicer and the Depositor as of the Closing Date or such other date as is
specified, that:

                  (i) the Seller is a ______________, duly organized validly
         existing and in good standing under the laws of the _____________,
         and has the corporate power to own its assets and to transact the
         business in which it is currently engaged. The Seller is duly
         qualified to do business as a foreign corporation and is in good
         standing in each jurisdiction in which the character of the business
         transacted by it or any properties owned or leased by it requires
         such qualification and in which the failure so to qualify would have
         a material adverse effect on the business, properties, assets, or
         condition (financial or other) of the Seller;

                  (ii) the Seller has the corporate power and authority to
         make, execute, deliver and perform this Agreement and all of the
         transactions contemplated under the Agreement, and has taken all
         necessary corporate action to authorize the execution, delivery and
         performance of this Agreement. When executed and delivered, this
         Agreement will constitute the legal, valid and binding obligation of
         the Seller enforceable in accordance with its terms, except as
         enforcement of such terms may be limited by bankruptcy, insolvency or
         similar laws affecting the enforcement of creditors' rights generally
         and by the availability of equitable remedies;

                  (iii) the Seller is not required to obtain the consent of
         any other party or any consent, license, approval or authorization
         from, or registration or declaration with, any governmental
         authority, bureau or agency in connection with the execution,
         delivery, performance, validity or enforceability of this Agreement,
         except for such consent, license, approval or authorization, or
         registration or declaration, as shall have been obtained or filed, as
         the case may be, prior to the Closing Date;

                  (iv) the execution, delivery and performance of this
         Agreement by the Seller will not violate any provision of any
         existing law or regulation or any order or decree of any court
         applicable to the Seller or any provision of the articles of
         incorporation or bylaws of the Seller, or constitute a material
         breach of any mortgage, indenture, contract or other agreement to
         which the Seller is a party or by which the Seller may be bound;

                                      57
<PAGE>

                  (v) no litigation or administrative proceeding of or before
         any court, tribunal or governmental body is currently pending, or to
         the knowledge of the Seller threatened, against the Seller or any of
         its properties or with respect to this Agreement which in the opinion
         of the Seller has a reasonable likelihood of resulting in a material
         adverse effect on the transactions contemplated by this Agreement;
         and

                  (vi) [the Seller has been organized in conformity with the
         requirements for qualification as a REIT; the Seller has filed an
         election to be treated as a REIT for federal income tax purposes; and
         the Seller currently qualifies as, and it proposes to operate in a
         manner that will enable it to continue to qualify as, a REIT.]

         (c) The Seller hereby represents and warrants to the Issuer, the
Indenture Trustee for the benefit of Noteholders, the Trust Administrator, the
Servicer and the Depositor as of the Closing Date with respect to the Initial
Mortgage Loans and the Subsequent Transfer Date with respect to the Subsequent
Transfer Date or such other date as is specified, with respect to the Mortgage
Loans, the representations and warranties set forth in Schedule II of the
Mortgage Loan Purchase Agreement.

         (d) To the extent that any fact, condition or event with respect to a
Mortgage Loan constitutes a breach of a representation or warranty of the
Seller under subsection (c) above or the Mortgage Loan Purchase Agreement, the
only right or remedy of the Indenture Trustee or any Certificateholder
hereunder shall be their rights to enforce the obligations of the Seller under
any applicable representation or warranty made by it. The Indenture Trustee on
behalf of the Issuer acknowledges that the Depositor shall have no obligation
or liability with respect to any breach of any representation or warranty with
respect to the Mortgage Loans (except as set forth in Section 3.01(a)(ii))
under any circumstances.

         Section 3.02. Discovery of Breach. It is understood and agreed that
the representations and warranties (i) of the Depositor set forth in Section
3.01(a), (ii) of the Seller set forth in Section 3.01(b) and (c) and (iii) of
the Servicer pursuant to Section 4.02 of this Agreement, shall each survive
delivery of the Mortgage Files and the Assignment of Mortgage of each Mortgage
Loan to the Indenture Trustee and shall continue throughout the term of this
Agreement. With respect to the representations and warranties which are made
to the best of the Seller's knowledge, if it is discovered by the Depositor,
the Seller, the Trust Administrator, the Indenture Trustee or the Servicer
that the substance of such representation and warranty is inaccurate and such
inaccuracy materially and adversely affects the value of the Mortgage Loans or
the interests of the Noteholders or the Indenture Trustee therein,
notwithstanding such Seller's lack of knowledge with respect to the substance
of such representation or warranty, remedies for breach will apply to such
inaccuracy. Any breach of the representation and warranty set forth in clauses
(g), (ss), (tt) and (vv) of Schedule II of the Mortgage Loan Purchase
Agreement shall be deemed to materially and adversely affect the interest of
the Trust in that Mortgage Loan, notwithstanding the Seller's lack of
knowledge with respect to the substance of such representation and warranty.
Upon discovery by any of the Depositor, the Servicer, the Trust Administrator
or the Indenture Trustee of a breach of any of such representations and
warranties made by the Seller that adversely and materially affects the value
of the related Mortgage Loan, the party discovering such breach shall give
prompt written notice to the other parties. Within [60] days of the discovery
by the Seller of a breach of any representation or warranty given to the

                                      58
<PAGE>

Indenture Trustee by the Seller or the Seller's receipt of written notice of
such a breach, the Seller shall either (a) cure such breach in all material
respects, (b) repurchase such Mortgage Loan or any property acquired in
respect thereof from the Indenture Trustee at the Purchase Price or (c)
substitute a Qualifying Substitute Mortgage Loan for the affected Mortgage
Loan.

         Section 3.03. Repurchase, Purchase or Substitution of Mortgage Loans.

         (a) With respect to any Mortgage Loan repurchased by the Seller
pursuant to Section 3.02(b) of this Agreement, the principal portion of the
funds in respect of such repurchase of a Mortgage Loan will be considered a
Principal Prepayment and the Purchase Price shall be deposited in the
Collection Account. Upon receipt by the Trust Administrator of the full amount
of the Purchase Price for a Deleted Mortgage Loan and notification thereof has
been made to the Indenture Trustee the Indenture Trustee shall release or
cause to be released and reassign to the Depositor or the Seller, as
applicable, the related Mortgage File for the Deleted Mortgage Loan and shall
execute and deliver such instruments of transfer or assignment, in each case
without recourse, representation or warranty, as shall be necessary to vest in
such party or its designee or assignee title to any Deleted Mortgage Loan
released pursuant hereto, free and clear of all security interests, liens and
other encumbrances created by this Agreement and the Indenture, which
instruments shall be prepared by the Servicer and the Indenture Trustee shall
have no further responsibility with respect to the Mortgage File relating to
such Deleted Mortgage Loan.

         (b) With respect to each Qualifying Substitute Mortgage Loan to be
delivered to the Indenture Trustee (or its custodian) in exchange for a
Deleted Mortgage Loan: (i) the Depositor or the Seller, as applicable, must
deliver to the Indenture Trustee the Mortgage File for the Qualifying
Substitute Mortgage Loan containing the documents set forth in Section 2.01(b)
along with a written certification certifying as to the delivery of such
Mortgage File and containing the granting language set forth in Section
2.01(a); and (ii) the Seller and the Depositor will be deemed to have made,
with respect to such Qualifying Substitute Mortgage Loan, each of the
representations and warranties made by it with respect to the related Deleted
Mortgage Loan. As soon as practicable after the delivery of any Qualifying
Substitute Mortgage Loan hereunder, the Indenture Trustee, at the expense of
the Depositor and at the direction and with the cooperation of the Servicer
shall (i) with respect to a Qualifying Substitute Mortgage Loan that is a
Non-MERS Mortgage Loan, cause the Assignment of Mortgage to be recorded by the
Servicer if required pursuant to Section 2.01(c), or (ii) with respect to a
Qualifying Substitute Mortgage Loan that is a MERS Mortgage Loan, cause to be
taken such actions as are necessary to cause the Indenture Trustee (on behalf
of the Issuer) to be clearly identified as the owner of each such Mortgage
Loan on the records of MERS if required pursuant to Section 2.01(c).

                                  ARTICLE IV

                ADMINISTRATION AND SERVICING OF MORTGAGE LOANS
                  BY THE SERVICER AND THE TRUST ADMINISTRATOR

         Section 4.01. Servicer to Perform Servicing Responsibilities.

         (a) Possession of Servicing Files. The Servicer shall maintain a
Servicing File with respect to each Mortgage Loan in order to service such
Mortgage Loans pursuant to this

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Agreement and each Servicing File delivered to the Servicer shall be held in
trust by the Servicer for the benefit of the Issuer and the Indenture Trustee.
The Servicer's possession of any portion of the Mortgage Loan documents shall
be at the will of the Indenture Trustee for the sole purpose of facilitating
servicing of the related Mortgage Loan pursuant to this Agreement, and such
retention and possession by the Servicer shall be in a custodial capacity
only. The ownership of each Mortgage Note, Mortgage, and the contents of the
Servicing File shall be vested in the Indenture Trustee 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 Servicer shall immediately vest in
the Indenture Trustee and shall be retained and maintained, in trust, by the
Servicer at the will of the Indenture Trustee in such custodial capacity only.
The Servicing File retained by the Servicer pursuant to this Agreement shall
be identified in accordance with the Servicer's file tracking system to
reflect the ownership of the related Mortgage Loan by the Indenture Trustee.
The Servicer shall release from its custody the contents of any Servicing File
retained by it only in accordance with this Agreement.

         (b) Books and Records. All rights arising out of the Mortgage Loans
shall be vested in the Indenture Trustee, subject to the Servicer's rights to
service and administer the Mortgage Loans hereunder in accordance with the
terms of this Agreement. All funds received on or in connection with a
Mortgage Loan, other than the Servicing Fee and other compensation and
reimbursement to which the Servicer is entitled as set forth herein, including
but not limited to Section 4.07(d) and Section 4.23 shall be received and held
by them in trust for the benefit of the Indenture Trustee pursuant to the
terms of this Agreement.

         Section 4.02. Duties of the Servicer; Representations and Warranties.

         (a) For and on behalf of the Issuer, the Indenture Trustee and the
Noteholders, the Servicer shall service the Mortgage Loans from and after the
Closing Date in accordance with the provisions of this Article IV. The
Servicer hereby represents and warrants to the Depositor, the Issuer, the
Indenture Trustee and the Trust Administrator, as of the Closing Date, that:

                  (i) it is validly existing and in good standing as a
         _____________________ and as Servicer has full power and authority to
         transact any and all business contemplated by this Agreement and to
         execute, deliver and comply with its obligations under the terms of
         this Agreement, the execution, delivery and performance of which have
         been duly authorized by all necessary corporate action on the part of
         the Servicer;

                  (ii) the execution and delivery of this Agreement by the
         Servicer and its performance and compliance with the terms of this
         Agreement will not (A) violate the Servicer's charter or bylaws, (B)
         violate any law or regulation or any administrative decree or order
         to which it is subject or (C) 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 contract,
         agreement or other instrument to which the Servicer is a party or by
         which it is bound or to which any of its assets are subject, which
         violation, default or breach would materially and adversely affect
         the Servicer's ability to perform its obligations under this
         Agreement;

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                  (iii) this Agreement constitutes, assuming due
         authorization, execution and delivery hereof by the other respective
         parties hereto, a legal, valid and binding obligation of the
         Servicer, enforceable against it in accordance with the terms hereof,
         except as such enforcement may be limited by bankruptcy, insolvency,
         reorganization, moratorium and other laws affecting the enforcement
         of creditors' rights in general, and by general equity principles
         (regardless of whether such enforcement is considered in a proceeding
         in equity or at law);

                  (iv) the Servicer is not in default with respect to any
         order or decree of any court or any order or regulation of any
         federal, state, municipal or governmental agency to the extent that
         any such default would materially and adversely affect its
         performance hereunder;

                  (v) the Servicer is not a party to or bound by any agreement
         or instrument or subject to any charter provision, bylaw or any other
         corporate restriction or any judgment, order, writ, injunction,
         decree, law or regulation that may materially and adversely affect
         its ability as Servicer to perform its obligations under this
         Agreement or that requires the consent of any third person to the
         execution of this Agreement or the performance by the Servicer of its
         obligations under this Agreement;

                  (vi) no litigation is pending or, to the best of the
         Servicer's knowledge, threatened against the Servicer which would
         prohibit its entering into this Agreement or performing its
         obligations under this Agreement;

                  (vii) the Servicer, or an affiliate thereof the primary
         business of which is the servicing of conventional residential
         mortgage loans, is a Fannie Mae- or FHLMC-approved seller/servicer;

                  (viii) no consent, approval, authorization or order of any
         court or governmental agency or body is required for the execution,
         delivery and performance by the Servicer of or compliance by the
         Servicer with this Agreement or the consummation of the transactions
         contemplated by this Agreement, except for such consents, approvals,
         authorizations and orders (if any) as have been obtained;

                  (ix) the consummation of the transactions contemplated by
         this Agreement are in the ordinary course of business of the
         Servicer;

                  (x) the Servicer has obtained an Errors and Omissions
         Insurance Policy and a Fidelity Bond in accordance with Section 4.03
         each of which is in full force and effect, and each of which provides
         at least such coverage as is required hereunder; and

                  (xi) the information about the Servicer under the heading
         "The Servicer" in the Prospectus Supplement does not include an
         untrue statement of a material fact and does not omit to state a
         material fact, with respect to the statements made, necessary in
         order to make the statements in light of the circumstances under
         which they were made not misleading.

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         (b) It is understood and agreed that the representations and
warranties set forth in this Section 4.02 shall survive the execution and
delivery of this Agreement. The Servicer shall indemnify the Depositor, the
Issuer, the Indenture Trustee, the Owner Trustee and the Trust Administrator
and hold them harmless against any loss, damages, penalties, fines,
forfeitures, 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 Servicer's representations
and warranties contained in this Section 4.02. It is understood and agreed
that the enforcement of the obligation of the Servicer set forth in this
Section to indemnify the foregoing parties as provided in this Section
constitutes the sole remedy (other than as set forth in Section 7.01) of such
parties respecting a breach of the foregoing representations and warranties.
Such indemnification shall survive any termination of the Servicer as Servicer
hereunder, and any termination of this Agreement.

         Any cause of action against the Servicer relating to or arising out
of the breach of any representations and warranties made in this Section shall
accrue upon discovery of such breach by the Depositor, the Issuer, the
Indenture Trustee or the Trust Administrator or notice thereof by any one of
such parties to the other parties. Notwithstanding anything in this Agreement
to the contrary, the Servicer shall not be liable for special, indirect or
consequential losses or damages of any kind whatsoever (including, but not
limited to, lost profits).

         Section 4.03. Servicer Fidelity Bond and Servicer Errors and
Omissions Insurance Policy.

         (a) The Servicer, at its expense, shall maintain in effect a Fidelity
Bond and a Errors and Omissions Insurance Policy, affording coverage with
respect to all directors, officers, employees and other Persons acting on the
Servicer's behalf, and covering errors and omissions in the performance of the
Servicer's obligations hereunder. The Servicer's Errors and Omissions
Insurance Policy and the Servicer Fidelity Bond shall be in such form and
amount that would be consistent with coverage customarily maintained by
servicers of mortgage loans similar to the Mortgage Loans and shall by its
terms not be cancelable without [thirty] days' prior written notice to the
Indenture Trustee. The Servicer shall provide the Depositor and the Indenture
Trustee, upon request, with a copy of such policy and fidelity bond. The
Servicer shall (i) require the Servicer to maintain an Errors and Omissions
Insurance Policy and a Fidelity Bond in accordance with the provisions of this
Section 4.03 of this Agreement, (ii) cause the Servicer to provide to the
Servicer certificates evidencing that such policy and bond is in effect and to
furnish to the Servicer any notice of cancellation, non-renewal or
modification of the policy or bond received by it, as and to the extent
provided in this Section 4.03 of the Agreement, and (iii) furnish copies of
such policies and of the certificates and notices referred to in clause (ii)
to the Indenture Trustee upon request.

         (b) The Servicer shall promptly report to the Indenture Trustee and
the Trust Administrator any material changes that may occur in the Servicer's
Fidelity Bond or the Servicer's Errors and Omissions Insurance Policy and
shall furnish either such party, on request, with certificates evidencing that
such bond and insurance policy are in full force and effect. The Servicer
shall promptly report to the Indenture Trustee and the Trust Administrator all
cases of embezzlement or fraud, if such events involve funds relating to the
Mortgage Loans. The total losses, regardless of whether claims are filed with
the applicable insurer or surety, shall be

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disclosed in such reports together with the amount of such losses covered by
insurance. If a bond or insurance claim report is filed with any of such
bonding companies or insurers, the Servicer shall promptly furnish a copy of
such report to the Indenture Trustee and the Trust Administrator. Any amounts
relating to the Mortgage Loans collected by the Servicer under any such bond
or policy shall be promptly remitted by the Servicer to the Trust
Administrator for deposit into the Collection Account.

         Section 4.04. Servicer's Financial Statements and Related
Information. For each year this Agreement is in effect, the Servicer shall
deliver to the Trust Administrator, the Indenture Trustee, each Rating Agency
and the Depositor a copy of its annual unaudited financial statements on or
prior to May 31 of each year, beginning May 31, 200_. Such financial
statements shall include a balance sheet, income statement, statement of
retained earnings, statement of additional paid in capital, statement of
changes in financial position and all related notes and schedules and shall be
in comparative form, certified by a nationally recognized firm of Independent
Accountants to the effect that such statements were examined and prepared in
accordance with generally accepted accounting principles applied on a basis
consistent with that of the preceding year.

         Section 4.05. Power to Act; Procedures.

         (a) Servicer to Service. The Servicer, acting directly or through one
or more sub-servicers as provided in this Section 4.05 shall service and
administer the Mortgage Loans from and after the Closing Date and shall have
full power and authority, acting alone, to do any and all things in connection
with such servicing and administration which the Servicer may deem necessary
or desirable, consistent with the terms of this Agreement and with the
Servicing Standard.

         (b) The Servicer shall not take any action that is inconsistent with
or prejudices the interests of the Issuer, the Indenture Trustee or the
Noteholders in any Mortgage Loan or the rights and interests of the Depositor,
the Issuer, the Indenture Trustee and the Noteholders under this Agreement and
the Indenture. The Servicer shall represent and protect the interests of the
Issuer, the Indenture Trustee and the Noteholders in the same manner as it
protects its own interests in mortgage loans in its own portfolio in any
claim, proceeding or litigation regarding a Mortgage Loan. Without limiting
the generality of the foregoing, the Servicer in its own name is hereby
authorized and empowered by the Indenture Trustee when the Servicer believes
it appropriate in its best judgment and in accordance with the Servicing
Standard, to execute and deliver, on behalf of itself and the Noteholders, the
Trust Administrator, the Indenture Trustee or any of them, any and all
instruments of satisfaction or cancellation, or of partial or full release or
discharge and all other comparable instruments, with respect to the Mortgage
Loans and with respect to the Mortgaged Properties. The Indenture Trustee
shall furnish the Servicer, upon request, with any powers of attorney (on the
standard form used by the Indenture Trustee) empowering the Servicer to
execute and deliver instruments of satisfaction or cancellation, or of partial
or full release or discharge, and to foreclose upon or otherwise liquidate
Mortgaged Property, and to appeal, prosecute or defend in any court action
relating to the Mortgage Loans or the Mortgaged Property, in accordance with
this Agreement, and the Indenture Trustee shall execute and deliver such other
documents as the Servicer may request, necessary or appropriate to enable the
Servicer to service the Mortgage Loans and carry out its duties hereunder, and
to

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allow the Servicer to service the Mortgage Loans in each case in accordance
with the Servicing Standard (and the Indenture Trustee or the Trust
Administrator shall have no liability for misuse of any such powers of
attorney by the Servicer). If the Servicer or the Indenture Trustee has been
advised that it is likely that the laws of the state in which action is to be
taken prohibit such action if taken in the name of the Indenture Trustee or
that the Indenture Trustee would be adversely affected under the "doing
business" or tax laws of such state if such action is taken in its name, then
upon request of the Indenture Trustee, the Servicer shall join with the
Indenture Trustee in the appointment of a co-trustee pursuant to Section 6.10
of the Indenture. In no event shall the Servicer, without the Indenture
Trustee's written consent: (i) initiate any action, suit or proceeding solely
under the Indenture Trustee's name without indicating the Servicer's
representative capacity or (ii) take any action with the intent to cause, and
which actually does cause, the Indenture Trustee to be registered to do
business in any state. The Servicer shall indemnify the Indenture Trustee for
any and all costs, liabilities and expenses incurred by the Indenture Trustee
in connection with the negligent or willful misuse of such powers of attorney
by the Servicer. In the performance of its duties hereunder, the Servicer
shall be an independent contractor and shall not, except in those instances
where it is taking action in the name of the Indenture Trustee, be deemed to
be the agent of the Indenture Trustee.

         (c) In servicing and administering the Mortgage Loans, the Servicer
shall employ procedures and exercise the same care that it customarily employs
and exercises in servicing and administering loans for its own account, giving
due consideration to the Servicing Standard where such practices do not
conflict with this Agreement. Consistent with the foregoing, the Servicer may
in its discretion (i) waive any late payment charge and (ii) extend the due
dates for payments due on a Mortgage Note for a period not greater than [120]
days; provided, however, that the maturity of any Mortgage Loan shall not be
extended past the date on which the final payment is due on the latest
maturing Mortgage Loan as of the Cut-off Date. In the event of any extension
described in clause (ii) above, the Servicer shall make Advances on the
related Mortgage Loan in accordance with the provisions of Section 5.05 on the
basis of the amortization schedule of such Mortgage Loan without modification
thereof by reason of such extension. Such waiver, modification, postponement
or indulgence may be made if in the Servicer's reasonable and prudent
determination such waiver, modification, postponement or indulgence is not
materially adverse to the interests of the Issuer, the Indenture Trustee and
the Noteholders. In the event of any such modification which permits the
deferral of interest or principal payments on any Mortgage Loan, the Servicer
shall, on the Business Day immediately preceding the Servicer Remittance Date
in any month in which any such principal or interest payment has been
deferred, make an Advance in accordance with Section 5.05 in an amount equal
to 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 Servicer shall be
entitled to reimbursement for such advances to the same extent as for all
other Advances made pursuant to Section 4.35. Without limiting the generality
of the foregoing, the Servicer shall continue, and is hereby authorized and
empowered, to execute and deliver on behalf of itself, the Issuer and the
Indenture Trustee, 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.
The Indenture Trustee shall execute and deliver to the Servicer powers of
attorney (on the standard form used by the Indenture Trustee) and other
documents, furnished to it by the Servicer and reasonably satisfactory to the
Indenture Trustee, necessary or appropriate to enable

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the Servicer to carry out its servicing and administrative duties under this
Agreement; provided that the Indenture Trustee shall not be liable for the
actions of the Servicer under any such powers of attorney.

                  In servicing and administering the Mortgage Loans, the
Servicer shall adhere to the Servicing Standard. Notwithstanding the
appointment of any sub-servicer pursuant to Section 4.05, the Servicer shall
remain liable for the performance of all of the servicing obligations and
responsibilities under this Agreement.

         (d) Servicer Discretion. In managing the liquidation of defaulted
Mortgage Loans, the Servicer will have sole discretion, subject to the terms
of this Agreement, to sell defaulted Mortgage Loans; provided, however, that
the Servicer shall not take any action that is inconsistent with or prejudices
the interests of the Noteholders in any Mortgage Loan or the rights and
interests of the Depositor, the Indenture Trustee and the Noteholders under
this Agreement.

         (e) Collection and Liquidation of Mortgage Loans. Continuously from
the Closing Date, until the date each Mortgage Loan ceases to be subject to
this Agreement, the Servicer 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 Loans and each related 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.

                 The Servicer shall use its best efforts, consistent with the
Servicing Standard to foreclose upon or otherwise comparably convert the
ownership of such Mortgaged Properties as come into and continue in default
and as to which no satisfactory arrangements can be made for collection of
delinquent payments pursuant to Section 4.05(a). The Servicer shall use its
best efforts to realize upon defaulted Mortgage Loans in such a manner as will
maximize the receipt of principal and interest by the Trust, taking into
account, among other things, the timing of foreclosure proceedings. The
foregoing is subject to the provisions that, in any case in which Mortgaged
Property shall have suffered damage, the Servicer shall not be required to
expend its own funds toward the restoration of such property unless it shall
determine in its discretion (i) that such restoration will increase the
proceeds of liquidation of the related Mortgage Loan to the Issuer after
reimbursement to itself for such expenses, and (ii) that such expenses will be
recoverable by the Servicer through Insurance Proceeds or Liquidation Proceeds
from the related Mortgaged Property. In the event that any payment due under
any Mortgage Loan and not otherwise postponed, deferred or waived pursuant to
Section 4.09 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 Servicer shall take such action as (1) shall be consistent with
the Servicing Standard and (2) the Servicer shall determine prudently to be in
the best interest of the Issuer, the Indenture Trustee and the Noteholders. In
the event that any payment due under any Mortgage Loan is not otherwise
postponed, deferred or waived pursuant to Section 4.05(a) and remains
delinquent for a period of [105] days or any other default continues for a
period of [105] days beyond the expiration of any grace or cure period, the
Servicer shall commence foreclosure

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proceedings. The Servicer shall be responsible for all costs and expenses
incurred by it in any such proceedings; provided, however, that it shall be
entitled to reimbursement thereof from the related Mortgaged Property, as
contemplated in Sections 4.08(i) and 4.09(j) or as otherwise provided in
Section 4.08(iii).

                  Notwithstanding the generality of the preceding paragraph,
the Servicer shall take such actions generally in accordance with the
Servicer's established default timeline and in accordance with the Servicing
Standard with respect to each Mortgage Loan and Mortgagor for which there is a
delinquency until such time as the related Mortgagor is current with all
payments due under the Mortgage Loan.

         Section 4.06. [Reserved]

         Section 4.07. Establishment of and Deposits to Collection Account.

         (a) On the Closing Date, the Trust Administrator shall open and shall
thereafter maintain a segregated account held in trust in the name of the
Securities Intermediary (the "Collection Account"), entitled "Collection
Account, _________________________________, as Indenture Trustee, in trust for
Holders of the [ ] 200__-[ ], Mortgage Backed Notes, Series 200_-__." The
Collection Account shall relate solely to the Notes issued by the Issuer, and
funds deposited in the Collection Account shall not be commingled with any
other monies.

         (b) The Collection Account shall be an Eligible Account. If an
existing Collection Account ceases to be an Eligible Account, the Trust
Administrator shall establish a new Collection Account that is an Eligible
Account within [10] days and transfer all funds and investment property on
deposit in such existing Collection Account into such new Collection Account.

         (c) The Trust Administrator shall give to the Servicer and the
Indenture Trustee prior written notice of the name and address of the
depository institution at which the Collection Account is maintained and the
account number of such Collection Account. The Trust Administrator shall take
such actions as are necessary to cause the depository institution holding the
Collection Account to hold such account in the name of the Indenture Trustee.
On each Payment Date, the entire amount on deposit in the Collection Account
relating to the Mortgage Loans (subject to permitted withdrawals set forth in
Section 4.08), other than amounts not included in Interest Remittance Amount
or Principal Remittance Amount to be paid to Noteholders for such Payment
Date, shall be applied to make the requested payment of principal and/or
interest on each class of Notes.

         The Servicer shall segregate and hold all funds collected and
received pursuant to the Mortgage Loans separate and apart from any of its own
funds and shall deposit in the Collection Account on a daily basis, but not
more than [two] Business Days after receipt by the Servicer and retain
therein, the following collections received by the Servicer and payments made
by the Servicer after the related Cut-off Date (other than scheduled payments
of principal and interest due on or before the related Cut-off Date), as
applicable:

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                                   (1) all payments on account of principal on
                           the Mortgage Loans, including all Principal
                           Prepayments and all Prepayment Premiums;

                                   (2) all payments on account of interest on
                           the Mortgage Loans adjusted to the Mortgage Loan
                           Remittance Rate;

                                   (3) all Liquidation Proceeds (net of
                           Liquidation Expenses);

                                   (4) all Insurance Proceeds including
                           amounts required to be deposited pursuant to
                           Section 4.09(f) (other than proceeds to be held in
                           the Escrow Account and applied to the restoration
                           and repair of the Mortgaged Property or released to
                           the Mortgagor in accordance with Section 4.09(f));

                                   (5) all Condemnation Proceeds that are not
                           applied to the restoration or repair of the
                           Mortgaged Property or released to the Mortgagor in
                           accordance with Section 4.09(i);

                                   (6) with respect to each Principal
                           Prepayment in full or in part, the Prepayment
                           Interest Shortfall Amount, if any, for the month of
                           payment. Such deposit shall be made from the
                           Servicer's own funds, without reimbursement
                           therefor, up to a maximum amount per month in the
                           aggregate of the Servicing Fee, actually received
                           for such month for the Mortgage Loans;

                                   (7) all Advances made by the Servicer
                           pursuant to Section 5.05;

                                   (8) any amounts received from the Seller,
                           the Depositor or any other person giving
                           representations and warranties with respect to the
                           Mortgage Loans, in connection with the repurchase
                           of any Mortgage Loan;

                                   (9) any amounts required to be deposited by
                           the Servicer pursuant to Section 4.09(f) in
                           connection with the deductible clause in any
                           blanket hazard insurance policy;

                                   (10) any amounts received with respect to
                           or related to any REO Property or REO Disposition
                           Proceeds pursuant to Section 4.09(j); and

                                   (11) any other amounts required to be
                           deposited in the Collection Account pursuant to
                           this Agreement.

         The foregoing requirements for deposit into the Collection Account
shall be exclusive, it being understood and agreed that, without limiting the
generality of the foregoing, payments in

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the nature of the Servicing Fee, Prepayment Interest Excess Amounts and
Ancillary Income need not be deposited by the Servicer into the Collection
Account.

         The Servicer agrees that it shall not create, incur or subject any
Mortgage Loans, or any funds that are deposited in any Collection Account or
Escrow Account, or any funds that otherwise are or may become due or payable
to or for the benefit of the Indenture Trustee, to any claim, lien, security
interest, judgment, levy, writ of attachment or other encumbrance, nor assert
by legal action or otherwise any claim or right of setoff against any Mortgage
Loan or any funds collected on, or in connection with, a Mortgage Loan.

         (d) Funds in the Collection Account may be invested by the Trust
Administrator in Eligible Investments selected by and at the written direction
of the Trust Administrator, which shall mature not later than [one] Business
Day prior to the next Payment Date (or on the Payment Date with respect to any
Eligible Investment of the Trust Administrator or any other fund managed or
advised by it or any Affiliate) and any such Eligible Investment shall not be
sold or disposed of prior to its maturity. All such Eligible Investments shall
be made in the name of the Servicer in trust for the benefit of the Indenture
Trustee and the Noteholders. All income and gain realized from any Eligible
Investment shall be for the benefit of the Servicer and shall be subject to
its withdrawal or order from time to time, subject to Section 4.08 and shall
not be part of the Trust Estate. The amount of any losses incurred in respect
of any such investments shall be deposited in such Collection Account by the
Servicer out of its own funds, without any right of reimbursement therefor,
immediately as realized. The foregoing requirements for deposit in the
Collection Account are exclusive, it being understood and agreed that, without
limiting the generality of the foregoing, payments of interest on funds in the
Collection Account and payments in the nature of late payment charges,
assumption fees and other incidental fees and charges relating to the Mortgage
Loans need not be deposited by the Servicer in the Collection Account and may
be retained by the Servicer as additional servicing compensation. If the
Servicer deposits in the Collection Account any amount not required to be
deposited therein, it may at any time withdraw such amount from such
Collection Account.

         Section 4.08. Application of Funds in the Collection Account. The
Trust Administrator may, from time to time, make, or cause to be made,
withdrawals from the Collection Account for the following purposes:

                  (i) to reimburse the Servicer for any previously
         unreimbursed Advances or Servicing Advances, such right to
         reimbursement pursuant to this subclause (i) being limited to amounts
         received on or in respect of a particular Mortgage Loan (including,
         for this purpose, Liquidation Proceeds, Condemnation Proceeds, REO
         Disposition Proceeds and amounts representing Insurance Proceeds with
         respect to the property subject to the related Mortgage) which
         represent late recoveries (net of the applicable Servicing Fee) of
         payments of principal or interest respecting which any such Advance
         was made, it being understood, in the case of any such reimbursement,
         that the Servicer's right thereto shall be prior to the rights of the
         Noteholders;

                  (ii) to reimburse the Servicer following a final liquidation
         of a Mortgage Loan for any previously unreimbursed Advances made by
         any such party (A) that such party determines in good faith will not
         be recoverable from amounts representing late

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         recoveries of payments of principal or interest respecting the
         particular Mortgage Loan as to which such Advance was made or from
         Liquidation Proceeds, Condemnation Proceeds, REO Disposition Proceeds
         or Insurance Proceeds with respect to such Mortgage Loan and/or (B)
         to the extent that such unreimbursed Advances exceed the related
         Liquidation Proceeds or Insurance Proceeds, it being understood, in
         the case of each such reimbursement, that the Servicer's right
         thereto shall be prior to the rights of the Noteholders;

                  (iii) to reimburse the Servicer from Liquidation Proceeds
         for Liquidation Expenses and for amounts expended by it pursuant to
         Section 4.09(i) in good faith in connection with the restoration of
         damaged property and, to the extent that Liquidation Proceeds after
         such reimbursement exceed the unpaid principal balance of the related
         Mortgage Loan, together with accrued and unpaid interest thereon at
         the applicable Mortgage Rate less the applicable Servicing Fee Rate
         for such Mortgage Loan to the Due Date next succeeding the date of
         its receipt of such Liquidation Proceeds, to pay to the Servicer out
         of such excess the amount of any unpaid assumption fees, late payment
         charges or other Mortgagor charges on the related Mortgage Loan and
         to retain any excess remaining thereafter as additional servicing
         compensation, it being understood, in the case of any such
         reimbursement or payment, that such Servicer's right thereto shall be
         prior to the rights of the Noteholders;

                  (iv) to pay to the Depositor or the Seller or any other
         Person, as applicable, with respect to each Mortgage Loan or REO
         Property acquired in respect thereof that has been purchased pursuant
         to this Agreement, all amounts received thereon and not paid on the
         date on which the related repurchase was effected, and to pay to the
         applicable party any Advances and Servicing Advances to the extent
         specified in the definition of Purchase Price;

                  (v) to the extent not paid by the Servicer, to pay any
         Insurance Premium with respect to a Mortgage Loan;

                  (vi) to pay to the Servicer income earned on the investment
         of funds on deposit in the Collection Account;

                  (vii) on each Payment Date, to make payment to the
         Noteholders in the amounts and in the manner provided for in Section
         5.02 for the related Payment Date (to the extent collected by the
         Servicer);

                  (viii) on each Payment Date, to make payment to the
         Ownership Certificate, all Prepayment Premiums received during the
         immediately preceding Prepayment Period;

                  (ix) to make payment to itself, the Servicer, the Indenture
         Trustee, the Owner Trustee and others pursuant to any provision of
         this Agreement, the Trust Agreement or the Indenture;

                  (x) to withdraw funds deposited in error in the Collection
         Account;

                  (xi) to clear and terminate the Collection Account pursuant
         to Article VIII; and

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<PAGE>

                  (xii) to reimburse a successor servicer (solely in its
         capacity as successor servicer), for any fee or advance occasioned by
         a termination of the Servicer, and the assumption of such duties by
         the Indenture Trustee as successor servicer or a successor servicer
         appointed by the Indenture Trustee pursuant to Section 7.01, in each
         case to the extent not reimbursed by the terminated Servicer, it
         being understood, in the case of any such reimbursement or payment,
         that the right of the Servicer or the Indenture Trustee thereto shall
         be prior to the rights of the Noteholders.

                  In connection with withdrawals pursuant to subclauses (i)
and (iv) above, the Servicer's or such other Person's entitlement thereto is
limited to collections or other recoveries on the related Mortgage Loan. The
Trust Administrator shall therefore keep and maintain a separate accounting
for each Mortgage Loan for the purpose of justifying any withdrawal from the
Collection Account it maintains pursuant to such subclauses.

         Section 4.09. Servicing of the Mortgage Loans.

         (a) Establishment of and Deposits to Escrow Account. The Servicer
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
"_________________________ in trust for ____________________________________,
as Indenture Trustee, for [ ] 200__-[ ]." The Escrow Accounts shall be
established with an Eligible Institution. Nothing herein shall require the
Servicer to compel a Mortgagor to establish an Escrow Account in violation of
applicable law. Funds deposited in the Escrow Account may be drawn on by the
Servicer in accordance with Section 4.09(b). The creation of any Escrow
Account shall be evidenced by a letter agreement in the form of Exhibit D
hereto. A copy of such certification or letter agreement shall be furnished to
the Servicer.

                  The Servicer shall deposit in the Escrow Account or Accounts
on a daily basis, 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; and

                  (ii) all amounts representing Insurance Proceeds or
         Condemnation Proceeds which are to be applied to the restoration or
         repair of any Mortgaged Property.

                  The Servicer shall make withdrawals from the Escrow Account
only to effect such payments as are required under this Agreement, as set
forth in Section 4.09(b). The Servicer shall be entitled to retain any
interest earnings 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 Servicer shall
pay interest on escrowed funds to the Mortgagor notwithstanding that the
Escrow Account may be non-interest bearing or the interest earnings paid
thereon are insufficient for such purposes.

         (b) Permitted Withdrawals from Escrow Account. Withdrawals from the
Escrow Account or Accounts may be made by the Servicer only:

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<PAGE>

                  (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 Servicer for any Servicing Advance of
         an Escrow Payment made by the Servicer 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 to be escrowed under the terms of the
         related Mortgage Loan;

                  (iv) to the extent permitted by applicable law, for transfer
         to the Collection 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 restoration or repair of the
         Mortgaged Property in accordance with Section 4.09(i);

                  (vi) to pay to the Servicer, or any Mortgagor to the extent
         required by law, any interest paid on the funds deposited in the
         Escrow Account; and

                  (vii) to clear and terminate the Escrow Account on the
         termination of this Agreement.

                  The Servicer will be responsible for the administration of
the Escrow Accounts and will be obligated to make Servicing Advances to the
Escrow Account in respect of its obligations under this 4.02(g), reimbursable
from the Escrow Accounts or Collection Account to the extent not collected
from the related Mortgagor, anything to the contrary notwithstanding, when and
as necessary to avoid the lapse of insurance coverage on the Mortgaged
Property, or which the Servicer knows, or in servicing the Mortgage Loans in
accordance with the Servicing Standard should know, is necessary to avoid the
loss of the Mortgaged Property due to a tax sale or the foreclosure as a
result of a tax lien. If any such payment has not been made and the Servicer
receives notice of a tax lien with respect to the Mortgage being imposed, the
Servicer will advance or cause to be advanced funds (which will constitute a
Servicing Advance) necessary to discharge such lien on the Mortgaged Property
in order to prevent loss of title to the Mortgaged Property.

         (c) Notification of Adjustments. On each Adjustment Date, the
Servicer shall make interest rate adjustments for each Mortgage Loan in
compliance with the requirements of the related Mortgage and Mortgage Note and
applicable regulations. The Servicer shall execute and deliver the notices
required by each Mortgage and Mortgage Note and applicable regulations
regarding interest rate adjustments. The Servicer also shall provide timely
notification to the Trustee of all applicable data and information regarding
such interest rate adjustments and the Servicer's methods of implementing such
interest rate adjustments. Upon the discovery by the Servicer or the Trustee
that the Servicer has failed to adjust or has incorrectly adjusted a Mortgage
Rate or a monthly payment pursuant to the terms of the related Mortgage Note
and Mortgage, the Servicer shall immediately deposit in the Collection Account
from its own funds

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<PAGE>

the amount of any loss caused thereby without reimbursement therefor;
provided, however, the Servicer shall not be liable with respect to any
interest rate adjustments made by any servicer prior to the Servicer.

         (d) Payment of Taxes, Insurance and Other Charges.

                  (i) With respect to each Mortgage Loan which provides for
         Escrow Payments, the Servicer 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 fire and hazard
         insurance coverage and shall obtain, from time to time, all bills for
         the payment of such charges (including renewal premiums) ("Property
         Charges") 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 Servicer in amounts sufficient for such
         purposes, as allowed under the terms of the Mortgage. The Servicer
         shall effect timely payment of all such charges (which will
         constitute Servicing Advances) irrespective of each Mortgagor's
         faithful performance in the payment of the same or the making of the
         Escrow Payments if necessary to avoid a lien or loss on the Mortgaged
         Property.

                  (ii) To the extent that a Mortgage does not provide for
         Escrow Payments, the Servicer shall make Servicing Advances from its
         own funds to effect payment of all Property Charges upon receipt of
         notice of any failure to pay on the part of the Mortgagor, or at such
         other time as the Servicer determines to be in the best interest of
         the Trust; provided, that in any event the Servicer shall pay such
         charges on or before any date by which payment is necessary to
         preserve the lien status of the Mortgage. The Servicer shall pay any
         late fee or penalty (which will constitute Servicing Advances) which
         is payable due to any delay in payment of any Property Charge and
         necessary to avoid a lien on or loss on Mortgage Property.

         (e) Protection of Accounts. The Servicer may transfer the Escrow
Account to a different Eligible Institution from time to time. Such transfer
shall be made only upon obtaining the consent of the Servicer, which consent
shall not be unreasonably withheld.

                  The Servicer shall bear any expenses, losses or damages
sustained by the Indenture Trustee if the Escrow Account is not an Eligible
Accounts.

         (f) Maintenance of Hazard Insurance. The Servicer shall cause to be
maintained for each Mortgage Loan hazard insurance such that all buildings
upon the related Mortgaged Property are insured by a generally acceptable
insurer acceptable under the Servicing Standard against loss by fire, hazards
of extended coverage and such other hazards as are customary in the area where
the Mortgaged Property is located, in an amount which is at least equal to the
lesser of (i) the replacement value of the improvements securing such Mortgage
Loan and (ii) the greater of (a) the outstanding principal balance of the
Mortgage Loan plus accrued interest thereon and the good faith estimate of the
Servicer of the related Liquidation Expenses to be incurred in connection
therewith and (b) an amount such that the proceeds thereof shall be sufficient
to prevent the Mortgagor or the loss payee from becoming a co-insurer. The
Servicer

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<PAGE>

shall be under no obligation to require any Mortgagor to obtain earthquake or
other additional insurance and shall be under no obligation itself to maintain
any such additional insurance on property acquired in respect of a Mortgage
Loan, other than pursuant to such applicable laws and regulations as shall at
any time be in force and as shall require such additional insurance.

                  If upon origination of the Mortgage Loan the related
Mortgaged Property was located in an area identified in the Federal Register
by the Flood 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 shall be in effect with a generally acceptable insurance
carrier acceptable under the Servicing Standard 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 Servicer
determines in accordance with applicable law and pursuant to the Servicing
Standard that a Mortgaged Property is located in a special flood hazard area
and is not covered by flood insurance or is covered in an amount less than the
amount required by the Flood Disaster Protection Act of 1973, as amended, the
Servicer shall notify the related Mortgagor that the Mortgagor must obtain
such flood insurance coverage, and if said Mortgagor fails to obtain the
required flood insurance coverage within [thirty] days after such
notification, the Servicer shall immediately force place the required flood
insurance on the Mortgagor's behalf.

                  The Servicer shall cause to be maintained on each Mortgaged
Property such other or additional insurance as may be required pursuant to
such applicable laws and regulations as shall at any time be in force and as
shall require such additional insurance, or pursuant to the requirements of
any private mortgage guaranty insurer, or as may be required to conform with
the Servicing Standard.

                  In the event that the Servicer 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 Servicer shall communicate and
consult with the Mortgagor with respect to the need for such insurance and
bring to the Mortgagor's attention the desirability of protection of the
Mortgaged Property.

                  All policies required hereunder shall name the Servicer as
loss payee and shall be endorsed with standard or union mortgagee clauses,
without contribution, which shall provide for at least [30] days' prior
written notice of any cancellation, reduction in amount or material change in
coverage.

                  The Servicer shall not interfere with the Mortgagor's
freedom of choice in selecting either his insurance carrier or agent;
provided, however, that the Servicer shall not accept any such insurance
policies from insurance companies unless such companies are generally
acceptable under the Servicing Standard. The Servicer 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. The
Servicer shall notify the Mortgagor of the

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<PAGE>

expiration of any such insurance and, prior to force placing any insurance,
will permit the Mortgagor a grace period (not to exceed [60] days) to obtain
renewal coverage.

                  Pursuant to Section 4.07, any amounts collected by the
Servicer 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 Servicer's normal
servicing procedures) shall be deposited in the Collection Account subject to
withdrawal pursuant to Section 4.08.

         (g) Maintenance of Mortgage Impairment Insurance. In the event that
the Servicer 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 4.09(f) and otherwise
complies with all other requirements of Section 4.09(f), it shall conclusively
be deemed to have satisfied its obligations as set forth in Section 4.09(f).
Any amounts collected by the Servicer under any such policy relating to a
Mortgage Loan shall be deposited in the Collection Account subject to
withdrawal pursuant to Section 4.08. 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 4.09(f), and
there shall have been a loss which would have been covered by such policy, the
Servicer shall deposit in the Collection Account at the time of such loss the
amount not otherwise payable under the blanket policy because of such
deductible clause, such amount to deposited from the Servicer's funds, without
reimbursement therefor. Upon request of the Indenture Trustee, the Servicer
shall cause to be delivered to such person a certified true copy of such
policy and a statement from the insurer thereunder that such policy shall in
no event be terminated or materially modified without [30] days' prior written
notice to the Indenture Trustee.

         (h) Inspections. The Servicer shall inspect the Mortgaged Property as
often as deemed necessary by the Servicer to assure itself that the value of
the Mortgaged Property is being preserved. In addition, the Servicer shall
inspect the Mortgaged Property and/or take such other actions as may be
necessary or appropriate in accordance with the Servicing Standard or as may
be required by the primary mortgage guaranty insurer. The Servicer shall keep
a written report of each such inspection.

         (i) Restoration of Mortgaged Property. The Servicer need not obtain
the approval of the Indenture Trustee 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 the Servicing Standard. At a minimum, the Servicer shall
comply with the following conditions in connection with any such release of
Insurance Proceeds or Condemnation Proceeds:

                  (i) the Servicer shall receive satisfactory independent
         verification of completion of repairs and issuance of any required
         approvals with respect thereto;

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<PAGE>

                  (ii) the Servicer 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; and

                  (iii) pending repairs or restoration, the Servicer shall
         place the Insurance Proceeds or Condemnation Proceeds in the Escrow
         Account.

         (j) 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 Indenture Trustee or its nominee (which shall include the
Servicer) in trust for the benefit of the Noteholders, or in the event the
Indenture Trustee is not authorized or permitted to hold title to real
property in the state where the REO Property is located, or would be adversely
affected under the "doing business" or tax laws of such state by so holding
title, the deed or certificate of sale shall be taken in the name of such
Person or Persons as shall be consistent with an Opinion of Counsel obtained
by the Servicer (with a copy delivered to the Indenture Trustee) from any
attorney duly licensed to practice law in the state where the REO Property is
located. The Person or Persons holding such title other than the Indenture
Trustee shall acknowledge in writing that such title is being held as nominee
for the Indenture Trustee.

                  The Servicer shall manage, conserve, protect and operate
each REO Property for the Indenture Trustee solely for the purpose of its
prompt disposition and sale. The Servicer, either itself or through an agent
selected by the Servicer, 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
Servicer 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 Servicer deems to be in the best interest of
the Issuer, the Indenture Trustee and the Noteholders.

                  The Servicer 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 and, to the extent required and available under the Flood Disaster
Protection Act of 1973, as amended, flood insurance in the amount required
above, which may be in the form of a blanket policy. Any amounts collected by
the Servicer under any such policy relating to a Mortgage Loan shall be
deposited in the Collection Account subject to withdrawal pursuant to Section
4.08. 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 4.09(f), and there shall have been a loss which
would have been covered by such policy, the Servicer shall deposit in the
Collection Account at the time of such loss the amount not otherwise payable
under the blanket policy because of such deductible clause, such amount to
deposited from the Servicer's funds, without reimbursement therefor.

                  The proceeds of sale of the REO Property shall be promptly
deposited in the Collection Account. As soon as practical thereafter the
expenses of such sale shall be paid and the Servicer shall reimburse itself
pursuant to Section 4.08 for any related unreimbursed

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<PAGE>

Servicing Advances, unpaid Servicing Fees and unreimbursed advances made
pursuant to this Section or Section 5.05.

         The Servicer shall make Servicing Advances of all funds necessary for
the proper operation, management and maintenance of the REO Property,
including the cost of maintaining any hazard insurance pursuant to Section
4.09(f), such advances to be reimbursed from the disposition or liquidation
proceeds of the REO Property or pursuant to Section 4.08(iii). The Servicer
shall make monthly remittances on each Servicer Remittance Date 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 4.09(j) and of any
reserves reasonably required from time to time to be maintained to satisfy
anticipated liabilities for such expenses).

         (k) Liquidation Reports. Upon the foreclosure sale of any Mortgaged
Property or the acquisition thereof by the Indenture Trustee pursuant to a
deed in lieu of foreclosure, the Servicer shall submit to the Indenture
Trustee a monthly liquidation report with respect to such Mortgaged Property.

         (l) Reports of Foreclosures and Abandonments of Mortgaged Property.
Following the foreclosure sale or abandonment of any Mortgaged Property, the
Servicer shall report such foreclosure or abandonment as required pursuant to
Section 6050J of the Code.

         (m) Prepayment Premiums. The Servicer or any designee of the Servicer
shall not waive any Prepayment Premium with respect to any Mortgage Loan that
contains a Prepayment Premium and that prepays during the term of the premium.
If the Servicer or its designee fails to collect the Prepayment Premium upon
any prepayment of any Mortgage Loan that contains a Prepayment Premium, the
Servicer shall pay to the Trust Administrator at such time (by deposit to the
Collection Account) an amount equal to amount of the Prepayment Premium that
was not collected. Notwithstanding the above, the Servicer or its designee may
waive a Prepayment Premium without paying the Issuer the amount of the
Prepayment Premium if (i) the Mortgage Loan is in default (defined as [61]
days or more delinquent) and such waiver would maximize recovery of total
proceeds taking into account the value of such Prepayment Premium and the
related Mortgage Loan or (ii) if the prepayment is not a result of a
refinancing by the Servicer or any of its affiliates and the Mortgage Loan is
foreseen to be in default and such waiver would maximize recovery of total
proceeds taking into account the value of such Prepayment Premium and the
related Mortgage Loan or (iii) the collection of the Prepayment Premium would
be in violation of applicable federal, state or local laws or would be deemed
"predatory" thereunder.

         (n) Compliance with Safeguarding Customer Information Requirements.
The Servicer has implemented and will maintain security measures designed to
meet the objectives of the Interagency Guidelines Establishing Standards for
Safeguarding Customer Information published in final form on February 1, 2001,
66 Fed. Reg. 8616, and the rules promulgated thereunder, as amended from time
to time (the "Guidelines").

         (o) Presentment of Claims and Collection of Proceeds. The Servicer
shall prepare and present on behalf of the Indenture Trustee and the
Noteholders all claims under the Insurance Policies with respect to the
Mortgage Loans, and take such actions (including the negotiation, settlement,
compromise or enforcement of the insured's claim) as shall be necessary

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to realize recovery under such policies. Any proceeds disbursed to the
Servicer in respect of such policies or bonds shall be promptly deposited in
the Collection Account upon receipt, except that any amounts realized that are
to be applied to the repair or restoration of the related Mortgaged Property
as a condition requisite 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).

         (p) [Reserved].

         (q) Due Dates Other Than the First of the Month. Mortgage Loans
having Due Dates other than the first day of a month shall be accounted for as
described in this Section 4.09(q). Any Scheduled Payment due on a day other
than the first day of each month shall be considered due on the first day of
the month following the month in which that payment is due as if such payment
were due on the first day of that month. For example, a Scheduled Payment due
on August 15 shall be considered to be due on September 1. Any Scheduled
Payment due and collected on a Mortgage Loan after the Cut-off Date shall be
deposited in the Collection Account. For Mortgage Loans with Due Dates on the
first day of a month, deposits to the Collection Account begin with the
Scheduled Payment due on the first of the month following the Cut-off Date.

         (r) Credit Reporting. For each Mortgage Loan, in accordance with its
current servicing practices, the Servicer will accurately and fully report its
underlying borrower credit files to each of the following credit repositories
or their successors: Equifax Credit Information Services, Inc., Trans Union,
LLC and Experian Information Solution, Inc., on a monthly basis in a timely
manner.

         Section 4.10. Reports to Trust Administrator.

                  Not more than [75] days after the end of each calendar year,
commencing December 31, 200_, the Servicer shall provide (as such information
becomes reasonably available to the Servicer) to the Trust Administrator such
information concerning the Mortgage Loans as is necessary for the Trust
Administrator to prepare the reports required by Section 4.11(c). Such
obligation of the Servicer shall be deemed to have been satisfied to the
extent that substantially comparable information shall be provided by the
Servicer to the Trust Administrator pursuant to any requirements of the Code
as from time to time are in force. The Servicer shall also provide to the
Trust Administrator such information as may be requested by it and required
for the completion of any tax reporting responsibility of the Trust
Administrator within such reasonable time frame as shall enable the Trust
Administrator to timely file each Schedule Q (or other applicable tax report
or return) required to be filed by it.

         Section 4.11. Reports to Indenture Trustee and Noteholders.

         (a) On each Payment Date, the Trust Administrator shall make
available to the Indenture Trustee and each Noteholder, a report setting forth
the following information (on the basis of Mortgage Loan level information
obtained from the Servicer):

                  (i) the aggregate amount of the payment to be made on such
         Payment Date to the Holders of each Class of Notes, to the extent
         applicable, allocable to principal on the Mortgage Loans, including
         Liquidation Proceeds and Insurance Proceeds, stating

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<PAGE>

         separately the amount attributable to scheduled principal payments
         and unscheduled payments in the nature of principal;

                  (ii) the aggregate amount of the payment to be made on such
         Payment Date to the Holders of each Class of Notes allocable to
         interest and the calculation thereof;

                  (iii) the amount, if any, of any payment to the Holder of
         the Ownership Certificate;

                  (iv) (A) the aggregate amount of any Advances required to be
         made by or on behalf of the Servicer with respect to such Payment
         Date, (B) the aggregate amount of such Advances actually made, and
         (C) the amount, if any, by which (A) above exceeds (B) above;

                  (v) the total number of Mortgage Loans, the aggregate Stated
         Principal Balance of all the Mortgage Loans as of the close of
         business on the last day of the related Collection Period, after
         giving effect to payments allocated to principal reported under
         clause (i) above;

                  (vi) the Class Principal Amount of each Class of Notes, to
         the extent applicable, as of such Payment Date after giving effect to
         payments allocated to principal reported under clause (i) above;

                  (vii) the amount of all Prepayment Premiums distributed to
         the Ownership Certificate;

                  (viii) the amount of any Realized Losses incurred with
         respect to the Mortgage Loans (x) in the applicable Prepayment Period
         and (y) in the aggregate since the Cut-off Date;

                  (ix) the amount of the Servicing Fee paid during the
         Collection Period to which such payment relates;

                  (x) the number and aggregate Stated Principal Balance of
         Mortgage Loans, as reported to the Trust Administrator by the
         Servicer, (a) remaining outstanding, (b) delinquent 30 to 59 days on
         a contractual basis, (c) delinquent 60 to 89 days on a contractual
         basis, (d) delinquent 90 or more days on a contractual basis, (e) as
         to which foreclosure proceedings have been commenced as of the close
         of business on the last Business Day of the calendar month
         immediately preceding the month in which such Payment Date occurs,
         (f) in bankruptcy and (g) that are REO Properties;

                  (xi) the aggregate Stated Principal Balance of any Mortgage
         Loans with respect to which the related Mortgaged Property became an
         REO Property as of the close of business on the last Business Day of
         the calendar month immediately preceding the month in which such
         Payment Date occurs;

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<PAGE>

                  (xii) with respect to substitution of Mortgage Loans in the
         preceding calendar month, the Stated Principal Balance of each
         Deleted Mortgage Loan and of each Qualifying Substitute Mortgage
         Loan;

                  (xiii) the aggregate outstanding Basis Risk Shortfalls and
         Unpaid Basis Risk Shortfalls, if any, for each Class of Notes, after
         giving effect to the payments made on such Payment Date;

                  (xiv) the Note Interest Rate applicable to such Payment Date
         with respect to each Class of Notes;

                  (xv) the Interest Remittance Amount and the Principal
         Remittance Amount applicable to such Payment Date;

                  (xvi) if applicable, the amount of any shortfall (i.e., the
         difference between the aggregate amounts of principal and interest
         which Noteholders would have received if there were sufficient
         available amounts in the Collection Account and the amounts actually
         paid);

                  (xvii) any Overcollateralization Deficiency Amount after
         giving effect to the payments made on such Payment Date; and

                  (xviii) LIBOR with respect to such Payment Date.

         In the case of information furnished pursuant to subclauses (i), (ii)
and (vi) above, the amounts shall (except in the case of the report delivered
to the holder of the Ownership Certificate) be expressed as a dollar amount
per $[1,000] of original principal amount of Notes.

         The Trust Administrator will make such report and additional loan
level information (and, at its option, any additional files containing the
same information in an alternative format) available each month to the Rating
Agencies and Noteholders via the Trust Administrator's website. The Trust
Administrator's website can be accessed at ______________. Assistance in using
the website can be obtained by calling the Trust Administrator's customer
service desk at ________________. Such parties that are unable to use the
website are entitled to have a paper copy mailed to them via first class mail
by notifying the Trust Administrator at ____________________,
________________________ (or for overnight deliveries at
_________________________), and indicating such. The Trust Administrator shall
have the right to change the way such statements are distributed in order to
make such distribution more convenient and/or more accessible to the above
parties and the Trust Administrator shall provide timely and adequate
notification to all above parties regarding any such changes.

         The foregoing information and reports shall be prepared and
determined by the Trust Administrator based solely on Mortgage Loan data
provided to the Trust Administrator by the Servicer (in a format agreed to by
the Trust Administrator and the Servicer) no later than the Payment Date. In
preparing or furnishing the foregoing information, the Trust Administrator and
the Servicer shall be entitled to rely conclusively on the accuracy of the
information or data regarding the Mortgage Loans and the related REO Property
that has been provided to the Servicer, and neither the Trust Administrator
nor the Servicer shall be obligated to verify,

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recompute, reconcile or recalculate any such information or data. The Trust
Administrator, the Indenture Trustee and the Servicer shall be entitled to
conclusively rely on all of such data and information provided to the Servicer
and shall have no liability for any errors in such data or information.

         (b) Upon the reasonable advance written request of any Noteholder
that is a savings and loan, bank or insurance company, which request, if
received by the Indenture Trustee shall be forwarded promptly to the Trust
Administrator, the Trust Administrator shall provide, or cause to be provided
(or, to the extent that such information or documentation is not required to
be provided by the Servicer, shall use reasonable efforts to obtain such
information and documentation from the Servicer), to such Noteholder such
reports and access to information and documentation regarding the Mortgage
Loans as such Noteholder may reasonably deem necessary to comply with
applicable regulations of the Office of Thrift Supervision or its successor or
other regulatory authorities with respect to an investment in the Notes;
provided, however, that the Trust Administrator shall be entitled to be
reimbursed by such Noteholder for actual expenses incurred in providing such
reports and access.

         (c) Within [90] days, or such shorter period as may be required by
statute or regulation, after the end of each calendar year, the Trust
Administrator shall have prepared and shall make available to each Person who
at any time during the calendar year was a Noteholder of record, and make
available to Security Owners (identified as such by the Clearing Agency) in
accordance with applicable regulations, a report summarizing the items
provided to the Noteholders pursuant to Section 4.11(a) on an annual basis as
may be required to enable such Holders to prepare their federal income tax
returns; provided, however, that this Section 4.11(c) shall not be applicable
where relevant reports or summaries are required elsewhere in this Agreement.
Such information shall include the amount of original issue discount accrued
on each Class of Notes and information regarding the expenses of the Issuer.
The Trust Administrator shall be deemed to have satisfied such requirement if
it forwards such information in any other format permitted by the Code. The
Servicer shall provide the Trust Administrator with such information as is
necessary for the Trust Administrator to prepare such reports.

         (d) The Trust Administrator shall furnish any other information that
is required by the Code and regulations thereunder to be made available to
Noteholders. The Servicer shall provide the Trust Administrator with such
information as is necessary for the Trust Administrator to prepare such
reports (and the Trust Administrator may rely solely upon such information).

         Section 4.12. Transfers of Mortgaged Property.

                  The Servicer 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 Servicer
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 Servicer shall not
exercise such rights if prohibited by law from doing so.

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<PAGE>

                  If the Servicer reasonably believes it is unable under
applicable law to enforce such "due-on-sale" clause, the Servicer 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 Servicer is unable under applicable law to require that the
original Mortgagor remain liable under the Mortgage Note and the Servicer has
the prior consent of the primary mortgage guaranty insurer, a substitution of
liability agreement with the seller of the Mortgaged Property pursuant to
which the original Mortgagor is released from liability and the buyer of the
Mortgaged Property is substituted as Mortgagor and becomes liable under the
Mortgage Note. In connection with any such assumption, neither the Mortgage
Rate borne by the related Mortgage Note, the timing of principal or interest
payments on the Mortgage Loan, the term of the Mortgage Loan nor the
outstanding principal amount of the Mortgage Loan shall be changed.

                  To the extent that any Mortgage Loan is assumable, the
Servicer shall inquire diligently into the creditworthiness of the proposed
transferee, and shall use the underwriting criteria for approving the credit
of the proposed transferee which are used by the Servicer, its affiliates or
Fannie Mae with respect to underwriting mortgage loans of the same type as the
Mortgage Loans. If the credit of the proposed transferee does not meet such
underwriting criteria, the Servicer diligently shall, to the extent permitted
by the Mortgage or the Mortgage Note and by applicable law, accelerate the
maturity of the Mortgage Loan.

                  Notwithstanding the foregoing paragraph or any other
provision of this Agreement, the Servicer shall not be deemed to be in
default, breach or any other violation of its obligations hereunder by reason
of any assumption of a Mortgage Loan by operation of law or any assumption
which the Servicer may be restricted by law from preventing, for any reason
whatsoever.

         Section 4.13. Termination for Cause.

                  Any of the following occurrences shall constitute an event
of default (each, a "Servicer Event of Default") on the part of the Servicer:

                                   (1) any failure by the Servicer to remit
                           any payment required to be made under the terms of
                           this Agreement 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 the
                           Servicer by the [____]; or

                                   (2) failure by the Servicer duly to observe
                           or perform in any material respect any other of the
                           covenants or agreements on the part of the Servicer
                           set forth in this Agreement (except with respect to
                           a failure related to a Limited Exchange Act
                           Reporting Obligation) which continues unremedied
                           for a period of [30] days after the date on which
                           written notice of such failure, requiring the same
                           to be remedied, shall have been given to the

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                           Servicer by the [____]; provided that the
                           [thirty-day] cure period shall not apply to the
                           failure to comply with the requirements set forth
                           in Section 10.04, Section 4.28 (with respect to
                           notice to the Depositor), Section 4.29 (with
                           respect to notice to the Depositor) or Article X,
                           for which the grace period shall not exceed the
                           lesser of 10 calendar days or such period in which
                           the applicable Exchange Act Report can be filed
                           timely (without taking into account any
                           extensions); or

                                   (3) failure by the Servicer to maintain its
                           license to do business or service residential
                           mortgage loans in any jurisdiction where the
                           Mortgaged Properties are located except where the
                           failure to so maintain such license does not have a
                           material adverse effect on the Servicer's ability
                           to service the Mortgage Loans; or

                                   (4) 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, marshalling of assets and
                           liabilities or similar proceedings, or for the
                           winding-up or liquidation of its affairs, shall
                           have been entered against the Servicer and such
                           decree or order shall have remained in force
                           undischarged or unstayed for a period of [60] days;
                           or

                                   (5) the 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 the Servicer or of or
                           relating to all or substantially all of its
                           property; or

                                   (6) the 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, 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

                                   (7) the Servicer ceases to be a FHA
                           Approved Mortgagee; or

                                   (8) the Servicer attempts to assign the
                           servicing of the Mortgage Loans or its right to
                           servicing compensation hereunder or the Servicer or
                           attempts to assign this Agreement or the servicing
                           responsibilities hereunder or to delegate its
                           duties

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<PAGE>

                           hereunder or any portion thereof in a manner not
                           permitted under this Agreement; or

                                   (9) the net worth of the Servicer shall be
                           less than $[15,000,000]; or

                                   (10) failure by the Servicer to duly
                           perform, within the required time period, its
                           obligations under Section 10.04 which failure
                           continues unremedied for a period of [7] days after
                           the date on which written notice of such failure,
                           requiring the same to be remedied, shall have been
                           given to the Servicer by the [____].

                  In the event of a Servicer Event of Default related to the
obligations set forth in Section 10.04, Section 4.28 (with respect to notice
to the Depositor), Section 4.29 (with respect to notice to the Depositor) and
Article X, the Servicer may only be terminated at the direction of the
Depositor.

                  Upon receipt by the Servicer of such written termination
notice, all authority and power of the Servicer, under this Agreement, whether
with respect to the Mortgage Loans or otherwise, shall pass to and be vested
in a successor servicer appointed by [____], in accordance with Section
[____]. Upon written request from the [____], the Servicer shall prepare,
execute and deliver to the successor servicer any and all documents and other
instruments, place in such successor's possession all Servicing 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 Servicer's sole expense. The Servicer shall
cooperate with the Seller, the Indenture Trustee and such successor in
effecting the termination of the Servicer'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 Servicer to the Collection Account or Escrow Account or thereafter
received with respect to the Mortgage Loans.

                  The Depositor shall not be entitled to terminate the rights
and obligations of the Servicer pursuant to subparagraph (2) if a failure of
the Servicer to identify a Subcontractor "participating in the servicing
function" within the meaning of Item 1122 of Regulation AB was attributable
solely to the role or functions of such Subcontractor with respect to mortgage
loans other than the Mortgage Loans.

         Section 4.14. Assumption of Servicing by Indenture Trustee, Successor
to Servicer.

         (a) In the event the Servicer shall for any reason no longer be the
Servicer (including by reason of any Servicer Event of Default under Section
7.01 of this Agreement), the Indenture Trustee shall thereupon assume all of
the rights and obligations of such Servicer hereunder. The Indenture Trustee,
its designee or any successor servicer appointed by the Indenture Trustee
shall be deemed to have assumed all of the Servicer's interest herein, except
that the Servicer shall not thereby be relieved of any liability or
obligations of the Servicer accruing prior to its replacement

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<PAGE>

as Servicer, and shall be liable to the Indenture Trustee, and hereby agrees
to indemnify and hold harmless the Indenture Trustee from and against all
costs, damages, expenses and liabilities (including reasonable attorneys'
fees) incurred by the Indenture Trustee as a result of such liability or
obligations of the Servicer and in connection with the Indenture Trustee's
assumption (but not its performance, except to the extent that costs or
liability of the Indenture Trustee are created or increased as a result of
negligent or wrongful acts or omissions of the Servicer prior to its
replacement as Servicer) of the Servicer's obligations, duties or
responsibilities thereunder.

         (b) Any successor servicer shall have the characteristics set forth
in clauses (i) and (ii) of the second paragraph of Section 4.28 and shall
succeed to all rights and assume all of the responsibilities, duties and
liabilities of the Servicer under this Agreement simultaneously with the
termination of the Servicer's responsibilities, duties and liabilities under
this Agreement. Any successor to the Servicer shall be subject to the approval
of the Indenture Trustee. Any approval of a successor servicer by the
Indenture Trustee, shall, if the successor servicer is not at that time a
servicer of other Mortgage Loans for the Trust, be conditioned upon the
receipt by the Seller, the Indenture Trustee and the Trust Administrator of a
letter from each Rating Agency to the effect that such transfer of servicing
will not result in a qualification, withdrawal or downgrade of the
then-current rating of any of the Notes. At least 15 calendar days prior to
the effective date of any such appointment, (x) the Indenture Trustee shall
provide written notice to the Depositor of such successor pursuant to this
Section 4.14 and (y) such successor servicer shall provide to the Depositor in
writing and in form and substance reasonably satisfactory to the Depositor,
all information reasonably requested by the Depositor in order to comply with
its reporting obligation under Item 6.02 of Form 8-K with respect to a
successor servicer. In the event that the Servicer's duties, responsibilities
and liabilities under this Agreement should be terminated pursuant to the
aforementioned sections, the Servicer 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 (including
continuing to make Advances during such transition period pursuant to Section
5.05) 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 Servicer pursuant to the aforementioned sections shall not become
effective until a successor shall be appointed pursuant to this Section
4.14(a) and shall in no event relieve the Servicer of the representations and
warranties made pursuant to Sections 4.02 and the remedies available to the
Indenture Trustee and the Seller under Sections 4.14(b) and 4.02(b) and (c),
it being understood and agreed that the provisions of such Sections 4.14(b)
and 4.02(b) and (c)] shall be applicable to the Servicer notwithstanding any
such resignation or termination of the Servicer, or the termination of this
Agreement. No successor servicer shall be responsible for the lack of
information and/or documents that it cannot otherwise obtain through
reasonable efforts.

                  Within a reasonable period of time, but in no event later
than [30] days following the appointment of a successor entity, the Servicer
shall prepare, execute and deliver to the successor entity any and all
documents and other instruments, place in such successor's possession all
Servicing 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 of any Mortgage Notes and the related
documents. The Servicer shall cooperate with the Indenture Trustee or the
Seller, as applicable, and such successor in effecting the termination of the
Servicer's responsibilities and rights hereunder and the transfer of servicing
responsibilities

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<PAGE>

to the successor Servicer, 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 Servicer to the Escrow Account or thereafter received with
respect to the Mortgage Loans.

                  Any successor appointed as provided herein shall execute,
acknowledge and deliver to the Indenture Trustee, the Servicer, the Trust
Administrator and the Seller an instrument (i) accepting such appointment,
wherein the successor shall make the representations and warranties set forth
in Section 4.02(a) and provide for the same remedies set forth in such Section
herein and (ii) an assumption of the due and punctual performance and
observance of each covenant and condition to be performed and observed by the
Servicer under this Agreement, whereupon such successor shall become fully
vested with all the rights, powers, duties, responsibilities, obligations and
liabilities of the Servicer, with like effect as if originally named as a
party to this Agreement. Any termination or resignation of the Servicer or
termination of this Agreement pursuant to Sections 4.02, 4.28 and 4.13 shall
not affect any claims that the Seller, the Indenture Trustee or the Trust
Administrator may have against the Servicer arising out of the Servicer's
actions or failure to act prior to any such termination or resignation.

                  The Servicer shall deliver promptly to the successor
servicer the funds in the Escrow Account(s) and all Mortgage Loan documents
and related documents and statements held by it hereunder and the Servicer
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 Servicer.

                  Upon a successor's acceptance of appointment as such, it
shall notify the Indenture Trustee, the Trust Administrator, the Seller and
the Depositor of such appointment.

         (c) Costs. The Seller shall pay the legal fees and expenses of its
attorneys. Costs and expenses incurred in connection with the transfer of the
servicing responsibilities, including fees for delivering Servicing Files,
shall be paid by (i) the terminated or resigning Servicer if such termination
or resignation is a result of an occurrence of a termination event under
Section 4.02(b) or 4.13, and (ii) to the extent not paid by such Servicer, and
in all other cases, by the Trust.

         Section 4.15. [Reserved]

         Section 4.16. Release of Mortgage Files.

         (a) Upon (i) becoming aware of the payment in full of any Mortgage
Loan or (ii) the receipt by the Servicer of a notification that payment in
full has been or will be escrowed in a manner customary for such purposes, the
Servicer will promptly notify the Indenture Trustee by a certification (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 Collection Account maintained by the Trust Administrator pursuant to
Section 4.07 have been or will be so deposited) of a Servicing Officer and
shall request the Indenture Trustee to deliver to the Servicer the related
Mortgage File. Upon receipt of such certification and request, the Indenture

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<PAGE>

Trustee shall promptly release the related Mortgage File to the Servicer and
the Indenture Trustee shall have no further responsibility with regard to such
Mortgage File. Upon any such payment in full, the Servicer is authorized to
give, as agent for the Indenture Trustee, as the mortgagee under the Mortgage
that secured the Mortgage Loan, an instrument of satisfaction (or assignment
of mortgage without recourse) regarding the Mortgaged Property subject to the
Mortgage, which instrument of satisfaction or assignment, as the case may be,
shall be delivered to the Person or Persons entitled thereto against receipt
therefor of such payment, it being understood and agreed that no expenses
incurred in connection with such instrument of satisfaction or assignment, as
the case may be, shall be chargeable to the Collection Account.

         (b) From time to time and as appropriate for the servicing or
foreclosure of any Mortgage Loan, the Indenture Trustee shall execute such
documents as shall be prepared and furnished to the Indenture Trustee by the
Servicer (in a form reasonably acceptable to the Indenture Trustee) and as are
necessary for the prosecution of any such proceedings. The Indenture Trustee
shall, upon request of the Servicer and delivery to the Indenture Trustee of a
trust receipt signed by a Servicing Officer, release the related Mortgage File
held in its possession or control to the Servicer. Such trust receipt shall
obligate the Servicer to return the Mortgage File to the Indenture Trustee
when the need therefor by the Servicer no longer exists unless the Mortgage
Loan shall be liquidated, in which case, upon receipt of a certificate of a
Servicing Officer similar to that hereinabove specified, the trust receipt
shall be released by the Indenture Trustee to the Servicer.

         Section 4.17. Documents, Records and Funds in Possession of Servicer
To Be Held for Indenture Trustee.

         (a) The Servicer shall transmit to the Indenture Trustee 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 Indenture
Trustee. Any funds received by the Servicer in respect of any Mortgage Loan or
which otherwise are collected by the Servicer as Liquidation Proceeds or
Insurance Proceeds in respect of any Mortgage Loan shall be held for the
benefit of the Indenture Trustee and the Noteholders subject to the Servicer's
right to retain or withdraw amounts provided in this Agreement and to retain
its Servicing Fee and other amounts as provided herein. The Servicer shall
provide access to information and documentation regarding the Mortgage Loans
to the Indenture Trustee, their respective agents and accountants at any time
upon reasonable request and during normal business hours, and to Noteholders
that are savings and loan associations, banks or insurance companies, the
Office of Thrift Supervision, the FDIC and the supervisory agents and
examiners of such Office and Corporation or examiners of any other federal or
state banking or insurance regulatory authority if so required by applicable
regulations of the Office of Thrift Supervision or other regulatory authority,
such access to be afforded without charge but only upon reasonable request in
writing and during normal business hours at the offices of the Servicer
designated by it. In fulfilling such a request the Servicer shall not be
responsible for determining the sufficiency of such information.

         (b) All Mortgage Files and funds collected or held by, or under the
control of, the 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 Servicer for and on behalf of the
Indenture Trustee as the Indenture Trustee's agent and bailee for purposes of

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perfecting the Indenture Trustee's security interest therein as provided by
relevant Uniform Commercial Code or laws; provided, however, that the Servicer
shall be entitled to setoff against, and deduct from, any such funds any
amounts that are properly due and payable to the Servicer under this Agreement
and shall be authorized to remit such funds to the Trust Administrator in
accordance with this Agreement.

         (c) The Servicer hereby acknowledges that concurrently with the
execution of this Agreement, the Indenture Trustee shall own or, to the extent
that a court of competent jurisdiction shall deem the conveyance of the
Mortgage Loans from the Seller to the Depositor not to constitute a sale, the
Indenture Trustee shall have a security interest in the Mortgage Loans and in
all Mortgage Files representing such Mortgage Loans and in all funds and
investment property now or hereafter held by, or under the control of, the
Servicer that are collected by the Servicer in connection with the Mortgage
Loans, whether as scheduled installments of principal and interest or as full
or partial prepayments of principal or interest or as Liquidation Proceeds or
Insurance Proceeds or otherwise, and in all proceeds of the foregoing and
proceeds of proceeds (but excluding any fee or other amounts to which the
Servicer is entitled to hereunder); and the Servicer agrees that so long as
the Mortgage Loans are assigned to and held by the Indenture Trustee, all
documents or instruments constituting part of the Mortgage Files, and such
funds relating to the Mortgage Loans which come into the possession or custody
of, or which are subject to the control of, the Servicer shall be held by the
Servicer for and on behalf of the Indenture Trustee as the Indenture Trustee's
agent and bailee for purposes of perfecting the Indenture Trustee's security
interest therein as provided by the applicable Uniform Commercial Code or
other applicable laws.

         Section 4.18. Opinion. On or before the Closing Date, the Servicer
shall cause to be delivered to the Depositor, the Seller, the Indenture
Trustee, the Issuer and the Trust Administrator one or more Opinions of
Counsel, dated the Closing Date, in form and substance reasonably satisfactory
to the Depositor, as to the due authorization, execution and delivery of this
Agreement by the Servicer and the enforceability thereof.

         Section 4.19. [Reserved]

         Section 4.20. [Reserved]

         Section 4.21. [Reserved]

         Section 4.22. Indenture Trustee To Retain Possession of Certain
Insurance Policies and Documents. The Indenture Trustee shall retain
possession and custody of the originals of the 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 payable in respect of the Notes have been
paid in full and the Servicer otherwise has fulfilled its obligations under
this Agreement, the Indenture Trustee shall also retain possession and custody
of each Mortgage File in accordance with and subject to the terms and
conditions of this Agreement. The Servicer shall promptly deliver or cause the
Servicer to deliver to the Indenture Trustee, upon the execution or receipt
thereof the originals of the primary mortgage insurance policies and any
certificates of renewal thereof, and such other

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documents or instruments that constitute portions of the Mortgage File that
come into the possession of the Servicer from time to time.

         Section 4.23. Compensation to the Servicer. [Pursuant to Section
4.07(d), all income and gain realized from any investment of funds in the
Collection Account shall be for the benefit of the Servicer as compensation.
Notwithstanding the foregoing, the Servicer shall deposit in the Collection
Account, on or before the related Payment Date, an amount equal to the lesser
of (i) its servicing compensation with respect to such Payment Date and (ii)
the amount of any Compensating Interest Payment required to be paid by the
Servicer with respect to such Payment Date pursuant to this Agreement. [As
consideration for servicing the Mortgage Loans subject to this Agreement, the
Servicer shall be paid in the aggregate the relevant Servicing Fee for each
Mortgage Loan remaining subject to this Agreement during any month or part
thereof. Such Servicing Fee shall be payable monthly and retained by the
Servicer, or as otherwise provided in Section 4.08(i)]. The obligation of the
Issuer to pay the Servicing Fee is limited to, and the Servicing Fee is
payable from, the interest portion (including recoveries with respect to
interest from Liquidation Proceeds) of such Scheduled Payment collected by the
Servicer, or as otherwise provided in Section 4.08(i). Additional servicing
compensation in the form of Ancillary Income shall be retained by the Servicer
and is not required to be deposited in the Collection Account.

                  The Servicer 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.

                  The Servicing Fee payable to or retained by the Servicer
with respect to any Collection Period shall be reduced by the aggregate
Prepayment Interest Shortfall Amount for the related Prepayment Period
required to be deposited in the Collection Account on the related Servicer
Remittance Date. The Servicer shall be obligated to remit on each Servicer
Remittance Date the aggregate Prepayment Interest Shortfall Amount, only up to
an amount equal to in the aggregate the Servicing Fee the Servicer is entitled
to receive for such Collection Period.] The Servicer shall be required to pay
all expenses incurred by it in connection with its activities hereunder and
shall not be entitled to reimbursement therefor except as provided in this
Agreement.]

         Section 4.24. [Reserved]

         Section 4.25. Reports to the Indenture Trustee.

         (a) Not later than [30] days after each Payment Date, the Trust
Administrator shall, upon request, forward to the Indenture Trustee a
statement, deemed to have been certified by a officer of the Trust
Administrator, setting forth the status of the Collection Account maintained
by the Trust Administrator as of the close of business on the related Payment
Date, indicating that all payments required by this Agreement to be made by
the Trust Administrator have been made (or if any required payment has not
been made by the Trust Administrator, specifying the nature and status
thereof) and showing, for the period covered by such statement, the aggregate
of deposits into and withdrawals from the Collection Account maintained by the
Trust Administrator. Copies of such statement shall be provided by the Trust
Administrator, upon

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<PAGE>

request, to the Depositor, Attention: _______ 200_-__ and any Noteholders (or
by the Indenture Trustee at the Trust Administrator's expense if the Trust
Administrator shall fail to provide such copies to the Noteholders (unless (i)
the Trust Administrator shall have failed to provide the Indenture Trustee
with such statement or (ii) the Indenture Trustee has no actual knowledge of
the Trust Administrator's failure to provide such statement)).

         (b) Not later than [two] Business Days following each Payment Date,
the Trust Administrator shall deliver to one Person designated by the
Depositor, in a format consistent with other electronic loan level reporting
supplied by the Servicer in connection with similar transactions, "loan level"
information with respect to the Mortgage Loans as of the related Determination
Date, to the extent that such information has been provided to the Servicer or
by the Depositor.

         (c) All information, reports and statements prepared by the Servicer
under this Agreement shall be based on information supplied to the Servicer
without independent verification thereof and the Servicer shall be entitled to
rely on such information.

         Section 4.26. Annual Officer's Certificate as to Compliance.

         (a) The Servicer shall deliver to the Indenture Trustee and the
Depositor no later than the 15th of March of each calendar year, commencing in
March 200_, an Officer's Certificate, certifying that with respect to the
period ending on the immediately preceding December 31: (i) a review of the
activities of such Person during the preceding calendar year or portion
thereof has been made under such Servicing Officer's supervision and (ii) to
the best of such Servicing Officer's knowledge, based on such review, such
Person has fulfilled its obligations under this Agreement in all material
respects throughout such year, or, if there has been a failure to fulfill any
such obligation in any material respect, specifying each such failure known to
such Servicing Officer and the nature and status thereof.

         (b) Copies of such statements shall be provided to any Noteholder
upon request, by the Servicer or by the Indenture Trustee at the Servicer's
expense if the Servicer failed to provide such copies (unless (i) the Servicer
shall have failed to provide the Indenture Trustee with such statement or (ii)
the Indenture Trustee has no actual knowledge of the Servicer's failure to
provide such statement).

         Section 4.27. Inspection.

                  The Servicer shall provide the Indenture Trustee, upon
[five] Business Days' advance notice, during normal business hours, access to
all records maintained by the Servicer in respect of its rights and
obligations hereunder and reasonable access to officers of the Servicer
responsible for such obligations. Upon request, the Servicer shall furnish to
the Indenture Trustee its most recent publicly available financial statements
and such other information relating to its capacity to perform its obligations
under this Agreement. Notwithstanding anything to the contrary in this Section
4.27, nothing in this Agreement shall limit the obligation of the Servicer to
observe any applicable law prohibiting disclosure of information regarding the
Mortgagors and the failure of the Servicer to provide access as provided in
this Section 4.27 as a result of such obligation shall not constitute a breach
of this Section 4.27.

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         Section 4.28. Merger or Consolidation. Any Person into which the
Servicer may be merged or consolidated, or any Person resulting from any
merger, conversion, other change in form or consolidation to which the
Servicer shall be a party, or any Person succeeding to the business of the
Servicer, shall be the successor to the Servicer 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 resulting Person to the Servicer shall be a
Person that shall be qualified and approved (or that have an Affiliate that is
qualified and approved) to service mortgage loans for Fannie Mae or FHLMC and
shall have a net worth of not less than $[15,000,000].

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

         Section 4.29. Resignation of Servicer. Except as otherwise provided
in Sections 4.28 and this Section 4.29 hereof, the Servicer shall not resign
from the obligations and duties hereby imposed on it unless it determines that
the Servicer's duties hereunder are no longer permissible under applicable law
or are in material conflict by reason of applicable law with any other
activities carried on by it and cannot be cured. Any such determination
permitting the resignation of the Servicer shall be evidenced by an Opinion of
Counsel that shall be Independent to such effect delivered to the Indenture
Trustee. No such resignation shall become effective until (a) the Indenture
Trustee shall have assumed, or a successor servicer shall have been appointed
by the Indenture Trustee and until such successor shall have assumed, the
Servicer's responsibilities and obligations under this Agreement and (b) the
Depositor shall have received the information described in the following
sentence. As a condition to the effectiveness of any such resignation, at
least 15 calendar days prior to the effective date of such resignation, the
Servicer shall provide (x) written notice to the Depositor of any successor
pursuant to this Section and (y) in writing and in form and substance
reasonably satisfactory to the Depositor, all information reasonably requested
by the Depositor in order to comply with its reporting obligation under Item
6.02 of Form 8-K with respect to a successor servicer. Notice of such
resignation shall be given promptly by the Servicer and the Depositor to the
Indenture Trustee.

         Section 4.30. Assignment or Delegation of Duties by the Servicer.
Except as expressly provided herein, the Servicer shall not assign or transfer
any of its rights, benefits or privileges hereunder to any other Person, or
delegate to or subcontract with, or authorize or appoint any other Person to
perform any of the duties, covenants or obligations to be performed by the
Servicer hereunder, unless the Indenture Trustee and the Depositor shall have
consented to such action; provided, however, that the Servicer shall have the
right without the prior written consent of the Indenture Trustee or the
Depositor to delegate or assign to or subcontract with or authorize or appoint
an Affiliate of the Servicer to perform and carry out any duties, covenants or
obligations to be performed and carried out by the Servicer hereunder. In no
case, however, shall any such delegation, subcontracting or assignment to an
Affiliate of the Servicer relieve the Servicer of any liability hereunder.
Notice of such permitted assignment shall be given promptly by the Servicer to
the Depositor and the Indenture Trustee. If, pursuant to any provision hereof,

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the duties of the Servicer are transferred to a successor servicer, the entire
amount of compensation payable to the Servicer pursuant hereto, including
amounts payable to or permitted to be retained or withdrawn by the Servicer
pursuant to Section 4.23 hereof, shall thereafter be payable to such successor
servicer.

         Section 4.31. Limitation on Liability of the Servicer and Others.

         (a) The Servicer undertakes to perform such duties and only such
duties as are specifically set forth in this Agreement.

         (b) No provision of this Agreement shall be construed to relieve the
Servicer from liability for its own negligent action, its own negligent
failure to act or its own willful misconduct; provided, however, that the
duties and obligations of the Servicer shall be determined solely by the
express provisions of this Agreement, the Servicer shall not be liable except
for the performance of such duties and obligations as are specifically set
forth in this Agreement; no implied covenants or obligations shall be read
into this Agreement against the Servicer and, in absence of bad faith on the
part of the Servicer, the Servicer may conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Servicer and conforming to the
requirements of this Agreement.

         (c) Neither the Servicer nor any of the directors, officers,
employees or agents of the Servicer shall be under any liability to the
Indenture Trustee or the Noteholders 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 Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence in its
performance of its duties or by reason of reckless disregard for its
obligations and duties under this Agreement. The Servicer and any director,
officer, employee or agent of the Servicer shall be entitled to
indemnification by the Trust Estate and will be held harmless against any
loss, liability or expense incurred in connection with any legal action
relating to this Agreement, the Notes or any other Operative Agreement other
than any loss, liability or expense incurred by reason of willful misfeasance,
bad faith or negligence in the performance of his or its duties hereunder or
by reason of reckless disregard of his or its obligations and duties
hereunder. The Servicer and any director, officer, employee or agent of the
Servicer may rely in good faith on any document of any kind prima facie
properly executed and submitted by any Person respecting any matters arising
hereunder. The Servicer shall be under no obligation to appear in, prosecute
or defend any legal action that is not incidental to its duties to service the
Mortgage Loans in accordance with this Agreement and that in its opinion may
involve it in any expenses or liability; provided, however, that the Servicer
may in its sole discretion undertake any such action that 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 Noteholders hereunder.
In such event, the legal expenses and costs of such action and any liability
resulting therefrom shall be expenses, costs and liabilities of the Issuer and
the Servicer shall be entitled to be reimbursed therefor out of the Collection
Account it maintains as provided by Section 4.14.

         Section 4.32. Indemnification; Third Party Claims. The Servicer
agrees to indemnify the Depositor, the Issuer, the Indenture Trustee, the
Owner Trustee and the Servicer and hold them

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<PAGE>

harmless against any and all claims, losses, penalties, fines, forfeitures,
legal fees and related costs, judgments, and any other costs, liability, fees
and expenses that the Depositor, the Issuer, the Indenture Trustee, the Owner
Trustee or the Servicer may sustain as a result of the failure of the Servicer
to perform its duties and service the Mortgage Loans in compliance with the
terms of this Agreement. The Depositor, the Issuer, the Indenture Trustee, the
Owner Trustee and the Servicer shall immediately notify the Servicer if a
claim is made by a third party with respect to this Agreement, the Mortgage
Loans entitling the Depositor, the Issuer, the Indenture Trustee, the Owner
Trustee or the Servicer to indemnification under this Section 4.32, whereupon
the Servicer shall assume 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 them in
respect of such claim. The failure to provide such immediate notice shall not
affect the Servicer's obligation pursuant to this Section 4.32 to indemnify
the Depositor, the Issuer, the Indenture Trustee, the Owner Trustee and the
Servicer, except to the extent that the Servicer is materially prejudiced by
such failure to notify.

         Section 4.33. Alternative Index. In the event that the Servicer
notifies the Servicer in writing that the Index for any Mortgage Loan, as
specified in the related Mortgage Note, becomes unavailable for any reason,
the Servicer shall select an alternative index in accordance with the terms of
such Mortgage Note or, if such Mortgage Note does not make provision for the
selection of an alternative index in such event, the Servicer shall, subject
to applicable law, select an alternative index based on information comparable
to that used in connection with the original Index and, in either case, such
alternative index shall thereafter be the Index for such Mortgage Loan.

         Section 4.34. Miscellaneous Servicing Provisions.

         (a) Protection of Confidential Information. The Servicer shall keep
confidential and shall not divulge to any party, without the Seller's prior
written consent, any nonpublic information pertaining to the Mortgage Loans or
any borrower thereunder, except to the extent that it is appropriate for the
Servicer to do so in working with legal counsel, special servicers, auditors,
taxing authorities or other governmental agencies.

         (b) No Personal Solicitation. For as long as the Servicer services
the Mortgage Loans, it covenants that it will not, and that it will ensure
that its affiliates and agents will not, directly solicit or provide
information for any other party to solicit for prepayment or refinancing of
any of the Mortgage Loans by the related mortgagors. It is understood that
promotions undertaken by the Servicer which are directed to the general public
at large, or certain segments thereof, shall not constitute solicitation as
that term is used in this Section 4.34(b).

         (c) Intention of the Parties. It is the intention of the Seller and
the Servicer that the Seller is conveying, and the Servicer is receiving, only
a contract for servicing the Mortgage Loans. Accordingly, the parties hereby
acknowledge that the Trust remains the sole and absolute owner of the Mortgage
Loans (other than the servicing rights) and all rights related thereto,
subject to the lien of the Indenture.

         Section 4.35. [Reserved].

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                                  ARTICLE V

                       DEPOSITS AND PAYMENTS TO HOLDERS

         Section 5.01. The Collection Account.

         (a) The Trust Administrator shall establish and maintain in the name
of the Notes Intermediary the Collection Account as provided in Section 4.07,
which account shall be pledged to the Indenture Trustee for the benefit of the
Noteholders.

         (b) The Trust Administrator shall make withdrawals from the
Collection Account only for the purposes set forth in Section 4.08.

         Section 5.02. Payments from the Collection Account.

         (a) [On each Payment Date, the Trust Administrator (or the Paying
Agent on behalf of the Trust Administrator) shall withdraw from the Collection
Account the Total Remittance Amount (to the extent such amount is on deposit
in the Collection Account) and shall pay such amount as specified in this
Section. All allocations and payments made between and with respect to [Pool
1], [Pool 2] and [Pool 3] in this Section shall be made concurrently.]

         (b) [On each Payment Date, the Trust Administrator (or the Paying
Agent on behalf of the Trust Administrator) shall pay the Interest Remittance
Amount for [Pool 1] for such date [in the following order of priority] in
accordance with the report of the Trust Administrator:

                  (i) from the Interest Remittance Amount for [Pool 1],
         [concurrently] to the [Class AF-5B] Insurer, the [Class AF-5B]
         Premium for such Payment Date and to each Class of [Group AF] Notes,
         the Current Interest and Interest Carry Forward Amount for each such
         Class and such Payment Date, [pro rata], based on their respective
         entitlements,

                  (ii) from the remaining Interest Remittance Amount for [Pool
         1], [sequentially]:

                           (a) to the [Class AF-5B] Insurer, any [Class AF-5B]
                           Reimbursement Amount,

                           (b) to the [Class MF-1] Notes, the Current Interest
                           for such Class,

                           (c) to the [Class MF-2] Notes, the Current Interest
                           for such Class,

                           (d) to the [Class MF-3] Notes, the Current Interest
                           for such Class,

                           (e) to the [Class MF-4] Notes, the Current Interest
                           for such Class,

                           (f) to the [Class MF-5] Notes, the Current Interest
                           for such Class,

                           (g) to the [Class MF-6] Notes, the Current Interest
                           for such Class,

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<PAGE>

                           (h) to the [Class MF-7] Notes, the Current Interest
                           for such Class,

                           (i) to the [Class MF-8] Notes, the Current Interest
                           for such Class,

                           (j) to the Class [BF] Notes, the Current Interest
                           for such Class, and

                           (k) [any remainder as part of the Fixed Rate Pool
                           Excess Cashflow.]

         (c) [On each Payment Date, the Trust Administrator (or the Paying
Agent on behalf of the Trust Administrator) shall pay the Interest Remittance
Amount for [Pool 2] and [Pool 3] for such date [in the following order of
priority] in accordance with the report of the Trust Administrator:

                  (i) [concurrently]:

                           (a) from Interest Remittance Amount for [Pool 2],
                           [concurrently] to each Class of [Group 2-AV] Notes,
                           the Current Interest and Interest Carry Forward
                           Amount for each such Class and such Payment Date,
                           [pro rata], based on their respective entitlements,

                           (b) from Interest Remittance Amount for [Pool 3],
                           [concurrently] to each Class of [Group 3-AV] Notes,
                           the Current Interest and Interest Carry Forward
                           Amount for each such Class and such Payment Date,
                           [pro rata], based on their respective entitlements,

                  (ii) from the remaining Interest Remittance Amount for [Pool
         2] and [Pool 3], to each Class of [Group AV] Notes, any remaining
         Current Interest and Interest Carry Forward Amount not paid pursuant
         to Section 5.02(c)(i), [pro rata], based on the Note Principal
         Amounts thereof, to the extent needed to pay any Current Interest and
         Interest Carry Forward Amount for each such Class; provided that
         Interest Remittance Amount remaining after such allocation to pay any
         Current Interest and Interest Carry Forward Amount based on the Note
         Principal Amounts of the Notes will be distributed to each Class of
         [Group AV] Notes with respect to which there remains any unpaid
         Current Interest and Interest Carry Forward Amount (after the
         distribution based on Note Principal Amounts), [pro rata], based on
         the amount of such remaining unpaid Current Interest and Interest
         Carry Forward Amount,

                  (iii) from the remaining Interest Remittance Amount for
         [Pool 2] and [Pool 3], [sequentially]:

                           (a) to the [Class MV-1] Notes, the Current Interest
                           for such Class,

                           (b) to the [Class MV-2] Notes, the Current Interest
                           for such Class,

                           (c) to the [Class MV-3] Notes, the Current Interest
                           for such Class,

                           (d) to the [Class MV-4] Notes, the Current Interest
                           for such Class,

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<PAGE>

                           (e) to the [Class MV-5] Notes, the Current Interest
                           for such Class,

                           (f) to the [Class MV-6] Notes, the Current Interest
                           for such Class,

                           (g) to the [Class MV-7] Notes, the Current Interest
                           for such Class,

                           (i) to the [Class MV-8] Notes, the Current Interest
                           for such Class,

                           (j) to the Class [BV] Notes, the Current Interest
                           for such Class, and

                           (k) [any remainder as part of the Adjustable Rate
                           Pool Excess Cashflow.]

         (d) [On each Payment Date, the Trust Administrator (or the Paying
Agent on behalf of the Trust Administrator) shall pay the Principal Remittance
Amount for [Pool 1] (with the Principal Distribution Amount exclusive of the
portion thereof consisting of the Extra Principal Distribution Amount being
applied first and the Extra Principal Distribution Amount being applied
thereafter) for such date in accordance with the report of the Trust
Administrator [as follows]:

                  (i) with respect to any Payment Date prior to the Fixed Rate
         Stepdown Date or on which a Fixed Rate Trigger Event is in effect,
         from the Principal Distribution Amount for [Pool 1], [sequentially]:

                           (A) to the [Class AF] Notes and to the [Class
                           AF-5B] Insurer, in the order and priorities set
                           forth in clause (3)(A) below,

                           (B) to the [Class MF-1] Notes, until the Note
                           Principal Amount thereof is reduced to zero,

                           (C) to the [Class MF-2] Notes, until the Note
                           Principal Amount thereof is reduced to zero,

                           (D) to the [Class MF-3] Notes, until the Note
                           Principal Amount thereof is reduced to zero,

                           (E) to the [Class MF-4] Notes, until the Note
                           Principal Amount thereof is reduced to zero,

                           (F) to the [Class MF-5] Notes, until the Note
                           Principal Amount thereof is reduced to zero,

                           (G) to the [Class MF-6] Notes, until the Note
                           Principal Amount thereof is reduced to zero,

                           (H) to the [Class MF-7] Notes, until the Note
                           Principal Amount thereof is reduced to zero,

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<PAGE>

                           (I) to the [Class MF-8] Notes, until the Note
                           Principal Amount thereof is reduced to zero,

                           (J) to the [Class BF] Notes, until the Note
                           Principal Amount thereof is reduced to zero, and

                           (K) [any remainder as part of the Fixed Rate Pool
                           Excess Cashflow].

                  (ii) with respect to any Payment Date on or after the Fixed
         Rate Stepdown Date and so long as a Fixed Rate Trigger Event is not
         in effect from the Principal Distribution Amount for [Pool 1],
         [sequentially]:

                           (A) in an amount up to the [Group AF] Principal
                           Distribution Amount, to the [Group AF] Notes in the
                           order and priorities set forth in clause (iii)(B)
                           below, until the Note Principal Amounts thereof are
                           reduced to zero,

                           (B) to the [Class AF-5B] Insurer, any remaining
                           [Class AF-5B] Premium and any remaining [Class
                           AF-5B] Reimbursement Amount, in each case that has
                           not been paid from Interest Remittance Amount for
                           [Pool 1] for such Payment Date,

                           (C) to the [Class MF-1] Notes, the Fixed Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

                           (D) to the [Class MF-2] Notes, the Fixed Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

                           (E) to the [Class MF-3] Notes, the Fixed Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced
                           to zero,

                           (F) to the [Class MF-4] Notes, the Fixed Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

                           (G) to the [Class MF-5] Notes, the Fixed Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced
                           to zero,

                           (H) to the [Class MF-6] Notes, the Fixed Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

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<PAGE>

                           (I) to the [Class MF-7] Notes, the Fixed Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

                           (J) to the [Class MF-8] Notes, the Fixed Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

                           (K) to the [Class BF] Notes, the Fixed Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero, and

                           (L) [any remainder as part of the Fixed Rate Pool
                           Excess Cashflow].

                  (iii) On each Payment Date on which any principal amounts
         are to be distributed to the [Group AF] Notes and the [Class AF-5B]
         Insurer pursuant to clause (i)(A) or to the [Group AF] Notes pursuant
         to clause (ii)(A) above, such amounts shall be distributed to the
         [Group AF] Notes and, if applicable, the [Class AF-5B] Insurer, [in
         the following order of priority]:

                           (A) For each Payment Date prior to the Fixed Rate
                           Stepdown Date or on which a Fixed Rate Trigger
                           Event is in effect,

                                    (1) the NAS Principal Distribution Amount
                                    to the [Class AF-6] Notes, until the Note
                                    Principal Amount thereof is reduced to
                                    zero,

                                    (2) [concurrently], to the [Class AF-1A]
                                    and [Class AF-1B] Notes, [pro rata] based
                                    on their respective Note Principal
                                    Amounts, until their respective Note
                                    Principal Amounts are reduced to zero,

                                    (3) [sequentially], to the [Class AF-2],
                                    [Class AF-3] and [Class AF-4] Notes, in
                                    that order, in each case until the Note
                                    Principal Amount thereof is reduced to
                                    zero,

                                    (4) [concurrently], to the [Class AF-5A]
                                    Notes and the [Class AF-5B] Insurer, [pro
                                    rata] (based on, with respect to clause
                                    (x), the Note Principal Amount of the
                                    [Class AF-5A] Notes, and with respect to
                                    clause (y), the Note Principal Amount of
                                    the [Class AF-5B] Notes):

                                            (a) to the [Class AF-5A] Notes,
                                            until the Note Principal Amount
                                            thereof is reduced to zero, and

                                            (b) [sequentially]:

                                                     (i) to the [Class AF-5B]
                                                     Insurer, any remaining
                                                     [Class AF-5B] Premium
                                                     that has not been paid
                                                     from

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<PAGE>

                                                     Interest Remittance
                                                     Amount for [Pool 1] for
                                                     such Payment Date, and

                                                     (ii) to the [Class AF-5B]
                                                     Notes, until the Note
                                                     Principal Amount thereof
                                                     is reduced to zero,

                                    (5) to the [Class AF-6] Notes without
                                    regard to the NAS Principal Distribution
                                    Amount, until the Note Principal Amount
                                    thereof is reduced to zero, and

                                    (6) to the [Class AF-5B] Insurer, any
                                    remaining [Class AF-5B] Reimbursement
                                    Amount that has not been paid from
                                    Interest Remittance Amount for [Pool 1]
                                    for such Payment Date.

                           (B) For each Payment Date on or after the Fixed
                           Rate Stepdown Date and so long as a Fixed Rate
                           Trigger Event is not in effect,

                                    (1) the NAS Principal Distribution Amount
                                    to the [Class AF-6] Notes, until the Note
                                    Principal Amount thereof is reduced to
                                    zero,

                                    (2) [concurrently], to the [Class AF-1A]
                                    and [Class AF-1B] Notes, [pro rata] based
                                    on their respective Note Principal
                                    Amounts, until their respective Note
                                    Principal Amounts are reduced to zero,

                                    (3) [sequentially], to the [Class AF-2],
                                    [Class AF-3] and [Class AF-4] Notes, in
                                    that order, in each case until the Note
                                    Principal Amount thereof is reduced to
                                    zero,

                                    (4) [concurrently], to the [Class AF-5A]
                                    Notes and the [Class AF-5B] Notes, [pro
                                    rata], based on the Note Principal Amounts
                                    thereof, until the Note Principal Amounts
                                    thereof are reduced to zero, and

                                    (5) to the [Class AF-6] Notes without
                                    regard to the NAS Principal Distribution
                                    Amount, until the Note Principal Amount
                                    thereof is reduced to zero.

         [Notwithstanding the foregoing order of priority, on any Payment Date
on which the aggregate Note Principal Amount of the [Group AF] Notes is
greater than the sum of the aggregate Stated Principal Balance of the Mortgage
Loans in [Pool 1] and any amount on deposit in the Supplemental Loan Account
in respect of [Pool 1], any principal amounts to be distributed to the [Group
AF] Notes and the [Class AF-5B] Insurer shall be distributed first,
[concurrently] to each Class of [Group AF] Notes, [pro rata], based on the
Note Principal Amounts thereof, in each case until the Note Principal Amount
thereof is reduced to zero, and second, to the [Class AF-5B] Insurer, any
remaining [Class AF-5B] Premium and any remaining [Class AF-5B] Reimbursement
Amount].]

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<PAGE>

         (e) [On each Payment Date, the Trust Administrator (or the Paying
Agent on behalf of the Trust Administrator) shall pay the Principal Remittance
Amount for [Pool 2] and [Pool 3] (with the Principal Distribution Amount
exclusive of the portion thereof consisting of the Extra Principal
Distribution Amount being applied first and the Extra Principal Distribution
Amount being applied thereafter) for such date in accordance with the report
of the Trust Administrator [as follows]:

                  (i) with respect to any Payment Date prior to the Adjustable
                  Rate Stepdown Date or on which an Adjustable Rate Trigger
                  Event is in effect, [sequentially]:

                           (A) [concurrently]:

                                    (1) from the Principal Distribution Amount
                                    for [Pool 2], [sequentially]:

                                            (a) to each Class of [Group 2-AV]
                                            Notes, in the order and priorities
                                            set forth in Section 5.02(e)(iii)
                                            below, until the Note Principal
                                            Amounts thereof are reduced to
                                            zero; and

                                            (b) to each Class of [Group 3-AV]
                                            Notes (after the distribution of
                                            the Principal Distribution Amount
                                            from [Pool 3] as provided in
                                            Section 5.02(d)(1)(A)(ii)(a)
                                            below), in the order and
                                            priorities set forth in Section
                                            5.02(d)(4) below, until the Note
                                            Principal Amounts thereof are
                                            reduced to zero;

                                    (2) from the Principal Distribution Amount
                                    for [Pool 3], [sequentially]:

                                            (a) to each Class of [Group 3-AV]
                                            Notes, in the order and priorities
                                            set forth in Section 5.02(d)(4)
                                            below, until the Note Principal
                                            Amounts thereof are reduced to
                                            zero; and

                                            (b) to each Class of [Group 2-AV]
                                            Notes (after the distribution of
                                            the Principal Distribution Amount
                                            from [Pool 2] as provided in
                                            Section 5.02(e)(i)(A)(1)(a)
                                            above), in the order and
                                            priorities set forth in Section
                                            5.02(e)(3) below, until the Note
                                            Principal Amounts thereof are
                                            reduced to zero;

                           (B) from the remaining Principal Distribution
                           Amounts for [Pool 2] and [Pool 3], [sequentially]:

                                    (1) to the [Class MV-1] Notes, until the
                                    Note Principal Amount thereof is reduced
                                    to zero,

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<PAGE>

                                    (2) to the [Class MV-2] Notes, until the
                                    Note Principal Amount thereof is reduced
                                    to zero,

                                    (3) to the [Class MV-3] Notes, until the
                                    Note Principal Amount thereof is reduced
                                    to zero,

                                    (4) to the [Class MV-4] Notes, until the
                                    Note Principal Amount thereof is reduced
                                    to zero,

                                    (5) to the [Class MV-5] Notes, until the
                                    Note Principal Amount thereof is reduced
                                    to zero,

                                    (6) to the [Class MV-6] Notes, until the
                                    Note Principal Amount thereof is reduced
                                    to zero,

                                    (7) to the [Class MV-7] Notes, until the
                                    Note Principal Amount thereof is reduced
                                    to zero,

                                    (8) to the [Class MV-8] Notes, until the
                                    Note Principal Amount thereof is reduced
                                    to zero,

                                    (9) to the [Class BV] Notes, until the
                                    Note Principal Amount thereof is reduced
                                    to zero, and

                                    (10) [any remainder as part of the
                                    Adjustable Rate Pool Excess Cashflow].

                  (ii) with respect to any Payment Date on or after the
                  Adjustable Rate Stepdown Date and so long as an Adjustable
                  Rate Trigger Event is not in effect, from the Principal
                  Distribution Amounts for [Pool 2] and [Pool 3],
                  [sequentially]:

                           (A) in an amount up to the [Group AV] Principal
                           Distribution Target Amount, [pro rata] based on the
                           related [Group AV] Principal Distribution
                           Allocation Amount for the [Group 2-AV] Notes and
                           the [Group 3-AV] Notes, respectively,
                           [concurrently], to (I) each Class of [Group 2-AV]
                           Notes, in an amount up to the [Group 2-AV]
                           Principal Distribution Amount in the order and
                           priorities set forth in clause (3) below, until the
                           Note Principal Amounts thereof are reduced to zero
                           and (II) each Class of [Group 3-AV] Notes, in an
                           amount up to the [Group 3-AV] Principal
                           Distribution Amount in the order and priorities set
                           forth in clause (4) below, until the Note Principal
                           Amounts thereof are reduced to zero; provided,
                           however, that if the aggregate Note Principal
                           Amount of the [Group 2-AV] Notes or [Group 3-AV]
                           Notes is reduced to zero then any remaining unpaid
                           [Group AV] Principal Distribution Target Amount
                           will be distributed to the remaining [Group AV]
                           Notes in the order and priorities set forth in
                           clause (3) or clause (4) below, as the case may be,

                                     100
<PAGE>

                           (B) to the [Class MV-1] Notes, the Adjustable Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

                           (C) to the [Class MV-2] Notes, the Adjustable Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

                           (D) to the [Class MV-3] Notes, the Adjustable Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

                           (E) to the [Class MV-4] Notes, the Adjustable Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

                           (F) to the [Class MV-5] Notes, the Adjustable Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero,

                           (G) to the [Class MV-6] Notes, the Adjustable Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero

                           (H) to the [Class MV-7] Notes, the Adjustable Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero

                           (I) to the [Class MV-8] Notes, the Adjustable Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero

                           (J) to the [Class BV] Notes, the Adjustable Rate
                           Subordinate Class Principal Distribution Amount for
                           such Class until the Note Principal Amount thereof
                           is reduced to zero, and

                           (K) [any remainder as part of the Adjustable Rate
                           Pool Excess Cashflow].

                  (iii) On each Payment Date on which any principal amounts
                  are to be distributed to the [Group 2-AV] Notes, such
                  amounts shall be distributed [concurrently], to the [Class
                  2-AV-1] and [Class 2-AV-2] Notes [pro rata], based on the
                  Note Principal Amounts thereof, in each case until the Note
                  Principal Amount thereof is reduced to zero; provided,
                  however, that if a Group [2] Sequential Trigger Event is in
                  effect, then any principal amounts to be distributed to the
                  [Class 2-AV] Notes will be distributed [sequentially], to
                  the [Class 2-AV-1] and [Class 2-AV-2] Notes, in that order,
                  in each case until the Note Principal Amount thereof is
                  reduced to zero.

                                     101
<PAGE>

                  (iv) On each Payment Date on which any principal amounts are
                  to be distributed to the [Group 3-AV] Notes, such amounts
                  shall be distributed [sequentially], to the [Class 3-AV-1],
                  [Class 3-AV-2], [Class 3-AV-3] and [Class 3-AV-4] Notes, in
                  that order, in each case until the Note Principal Amount
                  thereof is reduced to zero; provided, however, that on any
                  Payment Date on which (x) the aggregate Note Principal
                  Amount of the [Group AV] Notes is greater than the sum of
                  the aggregate Stated Principal Balance of the Adjustable
                  Rate Mortgage Loans and (y) the aggregate Note Principal
                  Amount of the [Group 3-AV] Notes is greater than the sum of
                  the aggregate Stated Principal Balance of the [Pool 3]
                  Mortgage Loans, any principal amounts to be distributed to
                  the [Group 3-AV] Notes will be distributed [pro rata], based
                  on the Note Principal Amounts thereof, in each case until
                  the Note Principal Amount thereof is reduced to zero.]

         (f) [On each Payment Date, the Trust Administrator (or the Paying
Agent on behalf of the Trust Administrator) shall pay the Fixed Rate Pool
Excess Cashflow for such date and, in the case of clauses (1), (3), (5), (7),
(9), (11), (13), (15), (17) and (19) below, any amounts in the Credit Comeback
Excess Account available for such Payment Date, shall be paid to the Classes
of Notes [in the following order of priority], in each case first to the
extent of the remaining Credit Comeback Excess Cashflow, if applicable, and
second to the extent of the remaining Fixed Rate Pool Excess Cashflow:

                  (i) to the Holders of the Class or Classes of [Group AF]
         Notes and Fixed Rate Subordinate Notes then entitled to receive
         distributions in respect of principal, in an amount equal to the
         Extra Principal Distribution Amount for [Pool 1], payable to such
         Holders as part of the Principal Distribution Amount for [Pool 1]
         pursuant to Section 5.02(d) above; provided, however, that Credit
         Comeback Excess Cashflow (if any) shall only be distributed pursuant
         to this clause, if the Fixed Rate Overcollateralization Target Amount
         has at any previous time been met;

                  (ii) to the Holders of the [Class MF-1] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (iii) to the Holders of the [Class MF-1] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (iv) to the Holders of the [Class MF-2] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (v) to the Holders of the [Class MF-2] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (vi) to the Holders of the [Class MF-3] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (vii) to the Holders of the [Class[MF-3] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                                     102
<PAGE>

                  (viii) to the Holders of the [Class MF-4] Notes, in an
         amount equal to any Interest Carry Forward Amount for such Class;

                  (ix) to the Holders of the [Class MF-4] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (x) to the Holders of the [Class MF-5] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (xi) to the Holders of the [Class MF-5] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (xii) to the Holders of the [Class MF-6] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (xiii) to the Holders of the [Class MF-6] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for such Class;

                  (xiv) to the Holders of the [Class MF-7] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (xv) to the Holders of the [Class MF-7] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (xvi) to the Holders of the [Class MF-8] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (xvii) to the Holders of the [Class MF-8] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for such Class;

                  (xviii) to the Holders of the [Class BF] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (xix) to the Holders of the [Class BF] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (xx) to each Class of [Class AF] Notes and Fixed Rate
         Subordinate Notes (in the case of the [Class AF-1A] Notes after
         application of [Class AF-1A] Cap Agreement to cover Net Rate
         Carryover), [pro rata] based on the Note Principal Amounts thereof,
         to the extent needed to pay any unpaid Net Rate Carryover for each
         such Class; and then any Fixed Rate Pool Excess Cashflow remaining
         after such allocation to pay Net Rate Carryover based on the Note
         Principal Amounts of the Notes shall be distributed to each Class of
         [Class AF] Notes and Fixed Rate Subordinate Notes with respect to
         which there remains any unpaid Net Rate Carryover, [pro rata], based
         on the amount of such unpaid Net Rate Carryover;

                  (xxi) if the Adjustable Rate Overcollateralization Target
         Amount has at any previous time been met, to the Holders of the Class
         or Classes of [Class AV] Notes and

                                     103
<PAGE>

         Adjustable Rate Subordinate Notes then entitled to receive
         distributions in respect of principal, payable to such Holders as
         part of the Principal Distribution Amount as described under Section
         5.02(e) above, in an amount equal to the Extra Principal Distribution
         Amount for [Pool 2] and [Pool 3] not covered by the Adjustable Rate
         Pool Excess Cashflow allocated [pro rata] based on the Extra
         Principal Distribution Amount for [Pool 2] and [Pool 3] not covered
         by the Adjustable Rate Pool Excess Cashflow;

                  (xxii) to the holders of the [Class 2-AV-2] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class
         2-AV-2] Notes remaining undistributed after application of the
         Adjustable Rate Pool Excess Cashflow;

                  (xxiii) to the Holders of the [Class MV-1] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MV-1]
         Notes remaining undistributed after application of the Adjustable
         Rate Pool Excess Cashflow;

                  (xxiv) to the Holders of the [Class MV-2] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MV-2]
         Notes remaining undistributed after application of the Adjustable
         Rate Pool Excess Cashflow;

                  (xxv) to the Holders of the [Class MV-3] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for the [Class MV-3] Notes
         remaining undistributed after application of the Adjustable Rate Pool
         Excess Cashflow;

                  (xxvi) to the Holders of the [Class MV-4] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MV-4]
         Notes remaining undistributed after application of the Adjustable
         Rate Pool Excess Cashflow;

                  (xxvii) to the Holders of the [Class MV-5] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MV-5]
         Notes remaining undistributed after application of the Adjustable
         Rate Pool Excess Cashflow;

                  (xxviii) to the Holders of the [Class MV-6] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MV-6]
         Notes remaining undistributed after application of the Adjustable
         Rate Pool Excess Cashflow;

                  (xxix) to the Holders of the [Class MV-7] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MV-7]
         Notes remaining undistributed after application of the Adjustable
         Rate Pool Excess Cashflow;

                  (xxx) to the Holders of the [Class MV-8] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for the [Class MV-8] Notes
         remaining undistributed after application of the Adjustable Rate Pool
         Excess Cashflow;

                  (xxxi) to the Holders of the [Class BV] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for the [Class BV] Notes
         remaining undistributed after application of the Adjustable Rate Pool
         Excess Cashflow; and

                                     104
<PAGE>

                  (xxxii) any amounts remaining shall be paid by the Trust
         Administrator to the Ownership Certificate.

         (g) [On each Payment Date, the Trust Administrator (or the Paying
Agent on behalf of the Trust Administrator) shall pay the Adjustable Rate Pool
Excess Cashflow to the Classes of Notes [in the following order of priority]:

                  (i) to the Holders of the Class or Classes of [Group
         AV]Notes and Adjustable Rate Subordinate Notes then entitled to
         receive distributions in respect of principal, in an aggregate amount
         equal to the Extra Principal Distribution Amount for [Pool 2] and
         [Pool 3], payable to such Holders of each such Class as part of the
         Principal Distribution Amount for [Pool 2] and [Pool 3] pursuant to
         Section 5.02(e) above;

                  (ii) [pro rata], to the Holders of the [Class 2-AV-2] Notes,
         in an amount equal to the Unpaid Realized Loss Amount for such Class;

                  (iii) to the Holders of the [Class MV-1] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (iv) to the Holders of the [Class MV-1] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (v) to the Holders of the [Class MV-2] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (vi) to the Holders of the [Class MV-2] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (vii) to the Holders of the [Class MV-3] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (viii) to the Holders of the [Class MV-3] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for such Class;

                  (ix) to the Holders of the [Class MV-4] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (x) to the Holders of the [Class MV-4] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (xi) to the Holders of the [Class MV-5] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (xii) to the Holders of the [Class MV-5] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (xiii) to the Holders of the [Class MV-6] Notes, in an
         amount equal to any Interest Carry Forward Amount for such Class;

                                     105
<PAGE>

                  (xiv) to the Holders of the [Class MV-6] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (xv) to the Holders of the [Class MV-7] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (xvi) to the Holders of the [Class MV-7] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (xvii) to the Holders of the [Class MV-8] Notes, in an
         amount equal to any Interest Carry Forward Amount for such Class;

                  (xviii) to the Holders of the [Class MV-8] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for such Class;

                  (xix) to the Holders of the [Class BV] Notes, in an amount
         equal to any Interest Carry Forward Amount for such Class;

                  (xx) to the Holders of the [Class BV] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for such Class;

                  (xxi) to each Class of [Group AV] Notes and Adjustable Rate
         Subordinate Notes (in each case after application of amounts received
         under the applicable Interest Rate Cap Agreement to cover Net Rate
         Carryover), [pro rata] based on the Note Principal Amounts thereof,
         to the extent needed to pay any Net Rate Carryover for each such
         Class remaining after application of amounts under the applicable
         Interest Rate Cap Agreement; provided that any Adjustable Rate Pool
         Excess Cashflow remaining after such allocation to pay Net Rate
         Carryover based on the Note Principal Amounts of the Notes shall be
         distributed to each Class of [Group AV]Notes and Adjustable Rate
         Subordinate Notes with respect to which there remains any unpaid Net
         Rate Carryover (after the distribution based on Note Principal
         Amounts), [pro rata], based on the amount of such unpaid Net Rate
         Carryover;

                  (xxii) if the Fixed Rate Overcollateralization Target Amount
         has at any previous time been met, to the Holders of the Class or
         Classes of [Group AF] Notes and Fixed Rate Subordinate Notes then
         entitled to receive distributions in respect of principal, payable to
         such Holders as part of the Principal Distribution Amount pursuant to
         Section 5.02(d) above, in an amount equal to the Extra Principal
         Distribution Amount for [Pool 1] not covered by the Fixed Rate Pool
         Excess Cashflow or Credit Comeback Excess Cashflow;

                  (xxiii) to the Holders of the [Class MF-1] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the ]Class MF-1]
         Notes remaining undistributed after application of the Fixed Rate
         Pool Excess Cashflow and Credit Comeback Excess Cashflow;

                  (xxiv) to the Holders of the [Class MF-2] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MF-2]
         Notes remaining undistributed after

                                     106
<PAGE>

         application of the Fixed Rate Pool Excess Cashflow and Credit
         Comeback Excess Cashflow;

                  (xxv) to the Holders of the [Class MF-3] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for the [Class MF-3] Notes
         remaining undistributed after application of the Fixed Rate Pool
         Excess Cashflow and Credit Comeback Excess Cashflow;

                  (xxvi) to the Holders of the [Class MF-4] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MF-4]
         Notes remaining undistributed after application of the Fixed Rate
         Pool Excess Cashflow and Credit Comeback Excess Cashflow;

                  (xxvii) to the Holders of the [Class MF-5] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MF-5]
         Notes remaining undistributed after application of the Fixed Rate
         Pool Excess Cashflow and Credit Comeback Excess Cashflow;

                  (xxviii) to the Holders of the [Class MF-6] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MF-6]
         Notes remaining undistributed after application of the Fixed Rate
         Pool Excess Cashflow and Credit Comeback Excess Cashflow;

                  (xxix) to the Holders of the [Class MF-7] Notes, in an
         amount equal to the Unpaid Realized Loss Amount for the [Class MF-7]
         Notes remaining undistributed after application of the Fixed Rate
         Pool Excess Cashflow and Credit Comeback Excess Cashflow;

                  (xxx) to the Holders of the [Class MF-8] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for the [Class MF-8] Notes
         remaining undistributed after application of the Fixed Rate Pool
         Excess Cashflow and Credit Comeback Excess Cashflow;

                  (xxxi) to the Holders of the [Class BF] Notes, in an amount
         equal to the Unpaid Realized Loss Amount for the [Class BF] Notes
         remaining undistributed after application of the Fixed Rate Pool
         Excess Cashflow and Credit Comeback Excess Cashflow; and

                  (xxxii) any amounts remaining shall be paid by the Trust
         Administrator to the Ownership Certificate.

         (h) On the Redemption Date, the Trust Administrator (or the Paying
Agent on behalf of the Trust Administrator) shall pay to each Class of Notes
the related Termination Price therefor, as set forth in the Indenture.

         Section 5.03. [Reserved].

         Section 5.04. Control of the Trust Account and Deferred Interest.

                                     107
<PAGE>

         (a) The Depositor and the Issuer hereby appoint ____________________
as Securities Intermediary with respect to the Trust Account, and the Issuer
has, pursuant to the Indenture, granted to the Indenture Trustee, for the
benefit of the Noteholders, a security interest to secure all amounts due
Noteholders hereunder in and to the Trust Account and the Security
Entitlements to all Financial Assets credited to the Trust Account, including
without limitation all amounts, securities, investments, Financial Assets,
investment property and other property from time to time deposited in or
credited to the Trust Account and all proceeds thereof. Amounts held from time
to time in the Trust Account will continue to be held by the Securities
Intermediary for the benefit of the Indenture Trustee, as collateral agent,
for the benefit of the Noteholders. Upon the termination of the Issuer or the
discharge of the Indenture, the Indenture Trustee shall inform the Securities
Intermediary of such termination. By acceptance of their Notes or interests
therein, the Noteholders shall be deemed to have appointed
____________________ as Securities Intermediary. ____________________ hereby
accepts such appointment as Securities Intermediary.

         (b) With respect to the Trust Account Property credited to the Trust
Account, the Securities Intermediary agrees that:

                  (i) with respect to any Trust Account Property that is held
         in deposit accounts, each such deposit account shall be subject to
         the exclusive custody and control of the Securities Intermediary, and
         the Securities Intermediary shall have sole signature authority with
         respect thereto;

                  (ii) the sole assets permitted in the Trust Account shall be
         those as the Securities Intermediary agrees to treat as Financial
         Assets; and

                  (iii) any such Trust Account Property that is, or is treated
         as, a Financial Asset shall be physically delivered (accompanied by
         any required endorsements) to, or credited to an account in the name
         of, the Securities Intermediary or other eligible institution
         maintaining the Trust Account in accordance with the Securities
         Intermediary's customary procedures such that the Securities
         Intermediary or such other institution establishes a Security
         Entitlement in favor of the Indenture Trustee with respect thereto
         over which the Securities Intermediary or such other institution has
         Control;

         (c) The Securities Intermediary hereby confirms that (A) the Trust
Account is an account to which Financial Assets are or may be credited, and
the Securities Intermediary shall, subject to the terms of this Agreement,
treat the Indenture Trustee, as collateral agent, as entitled to exercise the
rights that comprise any Financial Asset credited to the Trust Account, (B)
all Trust Account Property in respect of the Trust Account will be promptly
credited by the Securities Intermediary to such account, and (C) all
securities or other property underlying any Financial Assets credited to the
Trust Account shall be registered in the name of the Securities Intermediary,
endorsed to the Securities Intermediary or in blank or credited to another
securities account maintained in the name of the Securities Intermediary and
in no case will any Financial Asset credited to the Trust Account be
registered in the name of the Depositor or the Issuer, payable to the order of
the Depositor or the Issuer or specially endorsed to the Depositor or the
Issuer, except to the extent the foregoing have been specially endorsed to the
Securities Intermediary or in blank;

                                     108
<PAGE>

         (d) The Securities Intermediary hereby agrees that each item of
property (whether investment property, Financial Asset, security, instrument
or cash) credited to the Trust Account shall be treated as a Financial Asset;

         (e) If at any time the Securities Intermediary shall receive an
Entitlement Order from the Indenture Trustee (or the Trust Administrator on
its behalf) directing transfer or redemption of any Financial Asset relating
to the Trust Account, the Securities Intermediary shall comply with such
Entitlement Order without further consent by the Depositor, the Issuer or any
other Person. If at any time the Indenture Trustee or the Trust Administrator
notifies the Securities Intermediary in writing that the Issuer has been
terminated or the Indenture discharged in accordance herewith and with the
Trust Agreement or the Indenture, as applicable, and the security interest
granted pursuant to the Indenture has been released, then thereafter if the
Securities Intermediary shall receive any order from the Depositor or the
Issuer directing transfer or redemption of any Financial Asset relating to the
Trust Account, the Securities Intermediary shall comply with such Entitlement
Order without further consent by the Indenture Trustee or any other Person;

         (f) In the event that the Securities Intermediary has or subsequently
obtains by agreement, operation of law or otherwise a security interest in the
Trust Account or any Financial Asset credited thereto, the Securities
Intermediary hereby agrees that such security interest shall be subordinate to
the security interest of the Indenture Trustee. The Financial Assets credited
to the Trust Account will not be subject to deduction, set-off, banker's lien,
or any other right in favor of any Person other than the Indenture Trustee
(except that the Securities Intermediary may set-off (i) all amounts due to it
in respect of its customary fees and expenses for the routine maintenance and
operation of the Trust Account and (ii) the face amount of any checks which
have been credited to the Trust Account but are subsequently returned unpaid
because of uncollected or insufficient funds);

         (g) There are no other agreements entered into between the Securities
Intermediary in such capacity and the Depositor or the Issuer with respect to
the Trust Account. In the event of any conflict between this Agreement (or any
provision of this Agreement) and any other agreement now existing or hereafter
entered into, the terms of this Agreement shall prevail;

         (h) The rights and powers granted under the Indenture and herein to
the Indenture Trustee have been granted in order to perfect its security
interest in the Trust Account and the Security Entitlements to the Financial
Assets credited thereto, and are powers coupled with an interest and will
neither be affected by the bankruptcy of the Depositor or the Issuer nor by
the lapse of time. The obligations of the Securities Intermediary hereunder
shall continue in effect until the security interest of the Indenture Trustee
in the Trust Account, and in such Security Entitlements, has been terminated
pursuant to the terms of this Agreement and the Indenture Trustee or the
Issuer, as applicable, has notified the Securities Intermediary of such
termination in writing; and

         (i) Notwithstanding anything else contained herein, the Depositor and
the Issuer agree that the Trust Account will be established only with the
Securities Intermediary or another institution meeting the requirements of
this Section, which by acceptance of its appointment as Securities
Intermediary agrees substantially as follows: (1) it will comply with
Entitlement

                                     109
<PAGE>

Orders related to the Trust Account issued by the Indenture Trustee, as
collateral agent, without further consent by the Depositor or the Issuer,
without further consent by the Depositor; (2) until termination of the Issuer
or discharge of the Indenture, it will not enter into any other agreement
related to such accounts pursuant to which it agrees to comply with
Entitlement Orders of any Person other than the Indenture Trustee, as
collateral agent, or the Trust Administrator on its behalf; and (3) all assets
delivered or credited to it in connection with such account and all
investments thereof will be promptly credited to the applicable account.

         (j) Notwithstanding the foregoing, the Issuer shall have the power,
revocable by the Indenture Trustee or by the Owner Trustee with the consent of
the Indenture Trustee, to instruct the Indenture Trustee, the Trust
Administrator and the Servicer to make withdrawals and payments from the Trust
Account for the purpose of permitting the Servicer, the Trust Administrator or
the Owner Trustee to carry out its respective duties hereunder or permitting
the Indenture Trustee to carry out its duties under the Indenture.

         (k) Each of the Depositor and the Issuer agrees to take or cause to
be taken such further actions, to execute, deliver and file or cause to be
executed, delivered and filed such further documents and instruments
(including, without limitation, any financing statements under the Relevant
UCC or this Agreement) as may be necessary to perfect the interests created by
this Section in favor of the Issuer and the Indenture Trustee and otherwise
fully to effectuate the purposes, terms and conditions of this Section. The
Depositor shall:

                  (i) promptly execute, deliver and file any financing
         statements, amendments, continuation statements, assignments, Notes
         and other documents with respect to such interests and perform all
         such other acts as may be necessary in order to perfect or to
         maintain the perfection of the Issuer's and the Indenture Trustee's
         security interest in the Trust Account Property; and

                  (ii) make the necessary filings of financing statements or
         amendments thereto within [five] days after the occurrence of any of
         the following: (1) any change in its corporate name or any trade name
         or its jurisdiction of organization; (2) any change in the location
         of its chief executive office or principal place of business; and (3)
         any merger or consolidation or other change in its identity or
         corporate structure and promptly notify the Issuer and the Indenture
         Trustee of any such filings.

                  (iii) Neither the Depositor nor the Issuer shall organize
         under the law of any jurisdiction other than the State under which
         each is organized as of the Closing Date (whether changing its
         jurisdiction of organization or organizing under an additional
         jurisdiction) without giving [30] days prior written notice of such
         action to its immediate and mediate transferee, including the
         Indenture Trustee. Before effecting such change, each of the
         Depositor or the Issuer proposing to change its jurisdiction of
         organization shall prepare and file in the appropriate filing office
         any financing statements or other statements necessary to continue
         the perfection of the interests of its immediate and mediate
         transferees, including the Indenture Trustee, in the Trust Account
         Property. In connection with the transactions contemplated by the
         Operative Agreements relating to the Trust Account Property, each of
         the Depositor and the Issuer authorizes its immediate or mediate
         transferee to file in any filing office any initial financing
         statements, any

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         amendments to financing statements, any continuation statements, or
         any other statements or filings described in this Section 5.04.

         None of the Securities Intermediary or any director, officer,
employee or agent of the Securities Intermediary shall be under any liability
to the Indenture Trustee or the Noteholders for any action taken, or not
taken, in good faith pursuant to this Agreement, or for errors in judgment;
provided, however, that this provision shall not protect the Securities
Intermediary against any liability to the Indenture Trustee or the Noteholders
which would otherwise be imposed by reason of the Securities Intermediary's
willful misconduct, bad faith or negligence in the performance of its
obligations or duties hereunder. The Securities Intermediary and any director,
officer, employee or agent of the Securities Intermediary may rely in good
faith on any document of any kind which, prima facie, is properly executed and
submitted by any Person respecting any matters arising hereunder. The
Securities Intermediary shall be under no duty to inquire into or investigate
the validity, accuracy or content of such document. The Issuer shall indemnify
the Securities Intermediary for and hold it harmless against any loss,
liability or expense arising out of or in connection with this Agreement and
carrying out its duties hereunder, including the costs and expenses of
defending itself against any claim of liability, except in those cases where
the Securities Intermediary has been guilty of bad faith, negligence or
willful misconduct. The foregoing indemnification shall survive any
termination of this Agreement or the resignation or removal of the Securities
Intermediary.

         Section 5.05. Advances by Servicer.

         (a) Subject to this Section 5.05, Advances shall be made in respect
of each Servicer Remittance Date as provided herein. If, on any Determination
Date, the Servicer determines that any Scheduled Payments due during the
related Collection Period have not been received, such Servicer shall advance
such amount to the extent provided in this Section 5.05. The Servicer shall be
entitled to be reimbursed from the Collection Account for all Advances made by
it as provided in Section 4.07(d). Notwithstanding anything to the contrary
herein, in the event the Servicer determines in its reasonable judgment that
an Advance is a Nonrecoverable Advance, the Servicer shall be under no
obligation to make such Advance.

         (b) In the event that the Servicer fails for any reason to make an
Advance required to be made pursuant to this Section 5.05, the Indenture
Trustee, as successor Servicer, shall, on or before the related Payment Date,
deposit in the Collection Account an amount equal to the excess of (a)
Advances required to be made by the Servicer that would have been deposited in
such Collection Account over (b) the amount of any Advance made by the
Servicer with respect to such Payment Date; provided, however, that the
Indenture Trustee as successor Servicer shall be required to make such Advance
only if it is not prohibited by law from doing so and it has determined that
such Advance would be recoverable from amounts to be received with respect to
such Mortgage Loan, including late payments, Liquidation Proceeds, Insurance
Proceeds, or otherwise. The Indenture Trustee shall be entitled to be
reimbursed from the Collection Account for Advances made by it pursuant to
this Section 5.05 as if it were the Servicer and shall be entitled to receive
all compensation and fees of the Servicer in accordance with Section 7.01(b).

         Section 5.06. The Interest Rate Cap Agreements.

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         (a) The Trust Administrator shall establish and maintain an Eligible
Account in its name, in trust for the benefit of the Noteholders, the Interest
Rate Cap Account.

         (b) The Trust Administrator shall deposit any Interest Rate Cap
Receipts received with respect to any Interest Rate Cap Agreement Payment Date
into the Interest Rate Cap Account. Amounts on deposit in the Interest Rate
Cap Account shall remain uninvested.

         (c) On each [Class AF-1A] Cap Agreement Payment Date, the Trust
Administrator shall withdraw from the Interest Rate Cap Account any Interest
Rate Cap Receipts from the [Class AF-1A] Cap Agreement to make payments in the
order of priority and to the extent specified in Section 5.02(f)(iii)(1);
provided, that on each Payment Date on which there is a payment received by
the Trust Administrator under the [Class AF-1A] Cap Agreement that is based on
a notional amount in excess of the aggregate Class Principal Amount of the
Class [1A1] and Class [1A__] Notes (such amount, the "Excess [Class AF-1A] Cap
Amount"), then the Trust Administrator shall pay (i) the Excess [Class AF-1A]
Cap Amount to the Ownership Certificate and (ii) the excess of such Interest
Rate Cap Receipts over the Excess [Class AF-1A] Cap Amount for such Payment
Date in the order of priority and to the extent specified in Section
5.02(f)(iii)(1) of this Agreement.

         (d) On each [Group 2-AV] Cap Agreement Payment Date, the Trust
Administrator shall withdraw from the Interest Rate Cap Account any Interest
Rate Cap Receipts from the [Group 2-AV] Cap Agreement to make payments in the
order of priority and to the extent specified in Section 5.02(f)(iii)(2);
provided, that on each Payment Date on which there is a payment received by
the Trust Administrator under the [Group 2-AV] Cap Agreement that is based on
a notional amount in excess of the aggregate Class Principal Amount of the
[Class 2-AV-1] and [Class 2-AV-1] Notes (such amount, the "Excess [Class 2-AV]
Cap Amount"), then the Trust Administrator shall pay (i) the Excess [Group
2-AV] Cap Amount to the Ownership Certificate and (ii) the excess of such
Interest Rate Cap Receipts over the Excess [Group 2-AV] Cap Amount for such
Payment Date in the order of priority and to the extent specified in Section
5.02(f)(iii)(2) of this Agreement.

         (e) On each [Group 3-AV] Cap Agreement Payment Date, the Trust
Administrator shall withdraw from the Interest Rate Cap Account any Interest
Rate Cap Receipts from the [Group 3-AV] Cap Agreement to make payments in the
order of priority and to the extent specified in Section 5.02(f)(iii)(2);
provided, that on each Payment Date on which there is a payment received by
the Trust Administrator under the [Group 3-AV] Cap Agreement that is based on
a notional amount in excess of the aggregate Class Principal Amount of the
[Class 3-AV-1], [Class 3-AV-2], [Class 3-AV-3] and [Class 3-AV-4] Notes (such
amount, the "Excess [Group 3-AV] Cap Amount"), then the Trust Administrator
shall pay (i) the Excess [Group 3-AV] Cap Amount to the Ownership Certificate
and (ii) the excess of such Interest Rate Cap Receipts over the Excess [Group
3-AV] Cap Amount for such Payment Date in the order of priority and to the
extent specified in Section 5.02(f)(iii)(2) of this Agreement.

         (f) On each Subordinate Cap Agreement Payment Date, the Trust
Administrator shall withdraw from the Interest Rate Cap Account any Interest
Rate Cap Receipts from the Subordinate Cap Agreement to make payments in the
order of priority and to the extent specified in Section 5.02(f)(iii)(3);
provided, that on each Payment Date on which there is a payment

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received by the Trust Administrator under the Subordinate Cap Agreement that
is based on a notional amount in excess of the aggregate Class Principal
Amount of the Subordinate Notes (such amount, the "Excess Subordinate Cap
Amount"), then the Trust Administrator shall pay (i) the Excess Subordinate
Cap Amount to the Ownership Certificate and (ii) the excess of such Interest
Rate Cap Receipts over the Excess Subordinate Cap Amount for such Payment Date
in the order of priority and to the extent specified in Section
5.02(f)(iii)(3) of this Agreement.

         (g) On the Payment Date in _________ 200_, after any amounts
therefrom have been paid in accordance with Section 5.06(c), (d) and (e)
above, any amounts remaining in the Interest Rate Cap Account shall be paid by
the Trust Administrator to the Ownership Certificate, and the Interest Rate
Cap Account shall be terminated by the Trust Administrator.

         Section 5.07. [[Class AF-5B] Policy; Rights of the [Class AF-5B]
Insurer.

         (a) If, on the [third] Business Day before any Payment Date, the
Trust Administrator determines that a there will be a Deficiency Amount for
such Payment Date, the Trust Administrator shall determine the amount of any
such deficiency and shall give notice to the [Class AF-5B] Insurer by
telephone or telecopy of the amount of such deficiency, confirmed in writing
by notice substantially in the form of Exhibit A to the [Class AF-5B] Policy,
by ________, [New York time] on such [third] Business Day. The Trust
Administrator's responsibility for delivering the notice to the [Class AF-5B]
Insurer as provided in the preceding sentence is limited to the availability,
timeliness and accuracy of the information provided by the Servicer.

         (b) In the event the Trust Administrator receives a certified copy of
an order of the appropriate court that any scheduled payment of principal or
interest on a [Class AF-5B] Note has been voided in whole or in part as a
preference payment under applicable bankruptcy law, the Trust Administrator
shall (i) promptly notify the [Class AF-5B] Insurer and (ii) comply with the
provisions of the [Class AF-5B] Policy, to obtain payment by the [Class AF-5B]
Insurer of such voided scheduled payment. In addition, the Trust Administrator
shall mail notice to all Holders of the [Class AF-5B] Notes so affected that,
in the event that any such Holder's scheduled payment is so recovered, such
Holder will be entitled to payment pursuant to the terms of the [Class AF-5B]
Policy, a copy of which shall be made available to such Holders by the Trust
Administrator. The Trust Administrator shall furnish to the [Class AF-5B]
Insurer its records listing the payments on the affected [Class AF-5B] Notes,
if any, that have been made by the Trust Administrator and subsequently
recovered from the affected Holders, and the dates on which such payments were
made by the Trust Administrator.

         (c) At the time of the execution hereof, and for the purposes hereof,
the Trust Administrator shall establish a special purpose trust account in the
name of the Trust Administrator for the benefit of Holders of the [Class
AF-5B] Notes (the "[Class AF-5B] Policy Payments Account") over which the
Trust Administrator shall have exclusive control and sole right of withdrawal.
The [Class AF-5B] Policy Payments Account shall be an Eligible Account. The
Trust Administrator shall deposit any amount paid under the [Class AF-5B]
Policy into the [Class AF-5B] Policy Payments Account and distribute such
amount only for the purposes of making the payments to Holders of the [Class
AF-5B] Notes, in respect of the related Deficiency Amount for which the
related claim was made under the [Class AF-5B] Policy. Such amounts

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shall be allocated by the Trust Administrator to Holders of [Class AF-5B]
Notes affected by such shortfalls in the same manner as principal and interest
payments are to be allocated with respect to such Certificates pursuant to
Section 5.02. It shall not be necessary for such payments to be made by checks
or wire transfers separated from the checks or wire transfers used to make
regular payments hereunder with funds withdrawn from the Collection Account.
However, any payments made on the [Class AF-5B] Notes from funds in the [Class
AF-5B] Policy Payments Account shall be noted as provided in subsection (e)
below. Funds held in the [Class AF-5B] Policy Payments Account shall not be
invested by the Trust Administrator.

         (d) Any funds received from the [Class AF-5B] Insurer for deposit
into the [Class AF-5B] Policy Payments Account pursuant to the [Class AF-5B]
Policy in respect of a Payment Date or otherwise as a result of any claim
under the [Class AF-5B] Policy shall be applied by the Trust Administrator
directly to the payment in full (i) of the related Deficiency Amount on such
Payment Date or (ii) of other amounts payable under the [Class AF-5B] Policy.
Funds received by the Trust Administrator as a result of any claim under the
[Class AF-5B] Policy shall be used solely for payment to the Holders of the
[Class AF-5B] Notes and may not be applied for any other purpose, including,
without limitation, satisfaction of any costs, expenses or liabilities of the
Trust Administrator, the Servicer or the Trust Fund. Any funds remaining in
the [Class AF-5B] Policy Payments Account on the [first] Business Day after
each Payment Date shall be remitted promptly to the [Class AF-5B] Insurer in
accordance with the instructions set forth in Section 5.02.

         (e) The Trust Administrator shall keep complete and accurate records
in respect of (i) all funds remitted to it by the [Class AF-5B] Insurer and
deposited into the [Class AF-5B] Policy Payments Account and (ii) the
allocation of such funds to (A) payments of interest on and principal in
respect of any [Class AF-5B] Notes and (B) the amount of funds available to
make distributions on the [Class AF-5B] Notes pursuant to Section 5.02. The
[Class AF-5B] Insurer shall have the right to inspect such records at
reasonable times during normal business hours upon [three] Business Days'
prior notice to the Trust Administrator.

         (f) The Trust Administrator acknowledges, and each Holder of a [Class
AF-5B] Note by its acceptance of the [Class AF-5B] Note agrees, that, without
the need for any further action on the part of the [Class AF-5B] Insurer or
the Trust Administrator, to the extent the [Class AF-5B] Insurer makes
payments, directly or indirectly, on account of principal of or interest on
any [Class AF-5B] Notes, the [Class AF-5B] Insurer will be fully subrogated to
the rights of the Holders of such [Class AF-5B] Notes to receive such
principal and interest from the Trust Fund. The Holders of the [Class AF-5B]
Notes, by acceptance of the [Class AF-5B] Notes, assign their rights as
Holders of the [Class AF-5B] Notes to the extent of the [Class AF-5B]
Insurer's interest with respect to amounts paid under the [Class AF-5B]
Policy. Anything herein to the contrary notwithstanding, solely for purposes
of determining the [Class AF-5B] Insurer's rights, as applicable, as subrogee
for payments distributable pursuant to Section 5.02, any payment with respect
to distributions to the [Class AF-5B] Notes which is made with funds received
pursuant to the terms of the [Class AF-5B] Policy shall not be considered
payment of the [Class AF-5B] Notes from the Trust Fund and shall not result in
the distribution or the provision for the distribution in reduction of the
Note Principal Amount of the [Class AF-5B] Notes within the meaning of Article
V.

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         (g) Upon its becoming aware of the occurrence of an Event of Default,
the Trust Administrator shall promptly notify the [Class AF-5B] Insurer of
such Event of Default.

         (h) The Trust Administrator shall promptly notify the [Class AF-5B]
Insurer of either of the following as to which it has actual knowledge: (A)
the commencement of any proceeding by or against the Depositor commenced under
the United States bankruptcy code or any other applicable bankruptcy,
insolvency, receivership, rehabilitation or similar law (an "Insolvency
Proceeding") and (B) the making of any claim in connection with any Insolvency
Proceeding seeking the avoidance as a preferential transfer (a "Preference
Claim") of any distribution made with respect to the [Class AF-5B] Notes as to
which it has actual knowledge. Each Holder of a [Class AF-5B] Note, by its
purchase of [Class AF-5B] Notes, and the Trust Administrator hereby agrees
that the [Class AF-5B] Insurer (so long as no [Class AF-5B] Insurer Default
exists) may at any time during the continuation of any proceeding relating to
a Preference Claim direct all matters relating to such Preference Claim,
including, without limitation, (i) the direction of any appeal of any order
relating to any Preference Claim and (ii) the posting of any surety,
supersedes or performance bond pending any such appeal. In addition and
without limitation of the foregoing, the [Class AF-5B] Insurer shall be
subrogated to the rights of the Trust Administrator and each Holder of a
[Class AF-5B] Note in the conduct of any Preference Claim, including, without
limitation, all rights of any party to an adversary proceeding action with
respect to any court order issued in connection with any such Preference
Claim.

         (i) The Servicer shall designate a [Class AF-5B] Insurer Contact
Person who shall be available to the [Class AF-5B] Insurer to provide
reasonable access to information regarding the Mortgage Loans. The initial
[Class AF-5B] Insurer Contact Person is to the attention of Secondary
Marketing.

         (j) The Trust Administrator shall surrender the [Class AF-5B] Policy
to the [Class AF-5B] Insurer for cancellation upon the reduction of the Note
Principal Amount of the [Class AF-5B] Notes to zero.

         (k) For so long as there is no continuing default by the [Class
AF-5B] Insurer under its obligations under the [Class AF-5B] Policy (a "[Class
AF-5B] Insurer Default"), each Holder of a [Class AF-5B] Note agrees that the
[Class AF-5B] Insurer shall be treated by the Depositor, the Servicer and the
Trust Administrator as if the [Class AF-5B] Insurer were the Holder of all of
the [Class AF-5B] Notes, for the purpose (and solely for the purpose) of the
giving of any consent, the making of any direction or the exercise of any
voting or other control rights otherwise given to the Holders of the [Class
AF-5B] Notes hereunder.

         (l) With respect to this Section 5.07, the terms "Receipt" and
"Received" shall mean actual delivery to the [Class AF-5B] Insurer, if any,
prior to _______, [New York time], on a Business Day; delivery either on a day
that is not a Business Day or after _____, [New York time], shall be deemed to
be Receipt on the next succeeding Business Day. If any notice or certificate
given under the [Class AF-5B] Policy by the Trust Administrator is not in
proper form or is not properly completed, executed or delivered, it shall be
deemed not to have been Received. The [Class AF-5B] Insurer shall promptly so
advise the Trust Administrator and the Trust Administrator may submit an
amended notice.

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<PAGE>

         (m) All notices, statements, reports, certificates or opinions
required by this Agreement to be sent to the Rating Agencies or the [Class
AF-5B] Noteholders shall also be sent at such time to the [Class AF-5B]
Insurer.

         (n) The [Class AF-5B] Insurer shall be an express third party
beneficiary of this Agreement for the purpose of enforcing the provisions
hereof to the extent of the [Class AF-5B] Insurer's rights explicitly
specified herein as if a party hereto.

         (o) All references herein to the ratings assigned to the Notes and to
the interests of any Noteholders shall be without regard to the [Class AF-5B]
Policy, in the case of the [Class AF-5B] Notes.]

                                  ARTICLE VI

                       ADMINISTRATION OF THE AGREEMENTS

         Section 6.01. Duties of the Trust Administrator.

         (a) The Trust Administrator agrees to perform all of the duties of
the Issuer under the Depository Agreement. In addition to its duties performed
under the Depository Agreement, the Trust Administrator shall take such action
that is the duty of the Issuer to take with respect to the following matters
under the Trust Agreement, this Agreement and the Indenture:

                  (i) the duty to cause the Note Register to be kept if the
         Issuer assumes the duties of Note Registrar, and to give the
         Indenture Trustee notice of any appointment of a new Note Registrar
         and the location, or change in location, of the Note Register
         (Section 2.04 of the Indenture);

                  (ii) the duty to cause the Certificate Register to be kept
         if the Issuer assumes the duties of Certificate Registrar, and to
         give the Owner Trustee notice of any appointment of a new Certificate
         Registrar and the location, or change in location, of the Certificate
         Register (Section 3.03 of the Trust Agreement);

                  (iii) causing the preparation of the Notes for execution by
         the Owner Trustee upon the registration of any transfer or exchange
         of the Notes (Sections 2.04 and 2.05 of the Indenture);

                  (iv) causing the preparation of Definitive Notes in
         accordance with the instructions of any Clearing Agency, the duty to
         attempt to locate a qualified successor to the Clearing Agency, if
         necessary, and the preparation of written notice to the Indenture
         Trustee of termination of the book-entry system through the Clearing
         Agency (Section 2.12 of the Indenture);

                  (v) the maintenance of an office for registration of
         transfer or exchange of Notes (Section 3.02 of the Indenture);

                  (vi) the maintenance of an office for registration of
         transfer or exchange of the Ownership Certificate (Section 3.08 of
         the Trust Agreement);

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                  (vii) the calculation of accrual of original issue discount
         and the amortization of premium on the Notes (clause (v) of the
         fourth paragraph of Section 3.03 of the Indenture);

                  (viii) upon written notice or actual knowledge thereof, the
         notification to the Indenture Trustee and each Rating Agency of a
         Servicer Event of Default or a Servicer Event of Default under this
         Agreement (Section 3.07(d) of the Indenture);

                  (ix) upon written notice or actual knowledge thereof, the
         delivery of notice to the Indenture Trustee and each Rating Agency of
         each Indenture Event of Default under the Indenture (Section 3.19 of
         the Indenture);

                  (x) the furnishing of the Indenture Trustee with the names
         and addresses of Holders of Notes during any period when the
         Indenture Trustee is not the Note Registrar (Section 7.01 of the
         Indenture);

                  (xi) causing the preparation of any continuation statements
         or amendments necessary to protect the Collateral (Section 3.05 of
         the Indenture);

                  (xii) the mailing to the Noteholders of notices with respect
         to their consent to any supplemental indentures (Sections 9.01, 9.02,
         9.03 and 9.06 of the Indenture); and

                  (xiii) any other duties expressly required to be performed
         by the Trust Administrator under the Indenture or the Trust
         Agreement.

         (b) The Seller shall undertake the duties of the Issuer with respect
to the following matters under the Indenture:

                  (i) to cause the preparation of Issuer Orders (and execute
         the same on behalf of the Issuer) (Sections 9.01 and 9.02 of the
         Indenture);

                  (ii) to obtain Opinions of Counsel with respect to the
         execution of supplemental indentures and, if necessary, to mail to
         the Noteholders notices with respect to their consent to such
         supplemental indentures (Sections 9.01, 9.02, 9.03 and 9.07 of the
         Indenture);

                  (iii) the preparation (but not the execution) of the annual
         Officer's Certificate regarding the Issuer's compliance with the
         terms of the Indenture (Section 3.09 of the Indenture); and

                  (iv) causing the preparation of an Officer's Certificate and
         the obtaining of the Opinion of Counsel (which shall not be at the
         expense of the Trust Administrator) with respect to any request by
         the Issuer to the Indenture Trustee to take any action under the
         Indenture (Sections 4.01 and 11.01 of the Indenture);

                  (v) the compliance with any request of the Indenture Trustee
         with respect to the sale of the Collateral in a commercially
         reasonable manner if an Indenture Event of

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         Default shall have occurred and be continuing under the Indenture
         (Section 5.04 of the Indenture); and

                  (vi) causing the preparation of an Issuer Request and
         Officer's Certificate (and executing the same on behalf of the
         Issuer) and the obtaining of an Opinion of Counsel (which shall not
         be at the expense of the Trust Administrator), if necessary, for the
         release of the Collateral, as defined in the Indenture (Section 8.03
         of the Indenture).

         (c) The Issuer will indemnify the Owner Trustee, the Seller and the
Trust Administrator, and their respective agents for, and hold them harmless
against, any losses, liability or expense incurred without gross negligence or
bad faith on their part, arising out of or in connection with the acceptance
or administration of the transactions contemplated by the Trust Agreement or
this Agreement, including the reasonable costs and expenses of defending
themselves against any claim or liability in connection with the exercise or
performance of any of their powers or duties under the Trust Agreement, the
Indenture or this Agreement.

         (d) Subject to subsection (e) of this Section 6.01, and in accordance
with the directions of the Owner Trustee, the Trust Administrator shall
perform or supervise the performance of such other activities in connection
with the Collateral (including the Operative Agreements) as are not covered by
any of the foregoing provisions and as are expressly requested in writing by
the Owner Trustee and are reasonably within the capability of the Trust
Administrator.

         (e) In carrying out the foregoing duties or any of its other
obligations under this Agreement, the Trust Administrator may enter into
transactions with or otherwise deal with any of its Affiliates; provided,
however, that the terms of any such transactions or dealings shall be in
accordance with any directions received from the Issuer and shall be, in the
Trust Administrator's opinion, no less favorable to the Issuer than would be
available from unaffiliated parties.

         In carrying out the foregoing duties or any of its other obligations
under this Agreement, the Trust Administrator shall be subject to the same
standard of care and have the same rights, indemnifications and immunities as
the Indenture Trustee under the Indenture, including, without limitation, the
right to reimbursement and indemnification on behalf of the Issuer from funds
in the Collection Account for all losses, costs and expenses of any kind or
nature (including without limitation attorneys' fees and disbursements)
incurred by the Trust Administrator (including without limitation in its
various capacities as Paying Agent, Certificate Paying Agent, Certificate
Registrar and Note Registrar) in connection with the performance of its duties
hereunder or under any other Operative Agreement.

         The Trust Administrator in its capacity as the Certificate Registrar,
and upon a request received from the Owner Trustee, shall promptly notify the
Certificateholders of (i) any change in the Corporate Trust Office of the
Owner Trustee, (ii) any amendment to the Trust Agreement requiring notice be
given to the Certificateholders and (iii) any other notice required to be
given to the Certificateholders by the Owner Trustee under the Trust
Agreement.

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         Section 6.02. Duties of the Trust Administrator With Respect to the
Indenture, the Trust Agreement and this Agreement.

         (a) The Trust Administrator shall take all appropriate action with
respect to the following matters under the Indenture, the Trust Agreement and
this Agreement:

                  (i) the duties of an authenticating agent for authentication
         of the Notes (Sections 2.01, 2.02, 2.05 and 2.10 of the Indenture);

                  (ii) the duties of Note Registrar to be kept (Sections 2.03,
         2.04 and 2.07 of the Indenture);

                  (iii) to provide notices and instructions to the Clearing
         Agency (Section 2.11 of the Indenture);

                  (iv) the duties of Paying Agent (Sections 3.03, 4.01, 4.02
         and 5.02 of the Indenture); and

                  (v) the duties of agent or attorney-in-fact for the purposes
         of filing amendments and continuation statements for the Issuer
         (Section 3.05 of the Indenture).

         (b) The Issuer will indemnify the Owner Trustee and the Trust
Administrator, and their respective agents for, and hold them harmless
against, any losses, liability or expense incurred without gross negligence or
bad faith on their part, arising out of or in connection with the acceptance
or administration of the transactions contemplated by the Trust Agreement or
this Agreement, including the reasonable costs and expenses of defending
themselves against any claim or liability in connection with the exercise or
performance of any of their powers or duties under the Trust Agreement, the
Indenture or this Agreement.

         Section 6.03. Records. The Trust Administrator shall maintain
appropriate books of account and records relating to services performed
hereunder, which books of account and records shall be accessible for
inspection by the Issuer and the Depositor at any time during normal business
hours.

         Section 6.04. Compensation. The Trust Administrator will perform the
duties and provide the services called for under Sections 6.01 and 6.02 above
for such compensation as shall be agreed upon between the Trust Administrator
and the Servicer.

         Section 6.05. Additional Information to be Furnished to the Issuer.
The Depositor shall furnish to the Issuer from time to time such additional
information regarding the Collateral as the Issuer shall reasonably request.

         Section 6.06. Independence of the Trust Administrator. For all
purposes of this Agreement, the Trust Administrator shall be an independent
contractor and shall not be subject to the supervision of the Issuer or the
Owner Trustee with respect to the manner in which it accomplishes the
performance of its obligations hereunder. Unless expressly authorized by the
Issuer, the Trust Administrator shall have no authority to act for or
represent the Issuer or the

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Owner Trustee in any way and shall not otherwise be deemed an agent of the
Issuer or the Owner Trustee.

         Section 6.07. No Joint Venture. Nothing contained in this Agreement
(i) shall constitute the Trust Administrator or the Depositor, respectively,
and either of the Issuer or the Owner Trustee, as members of any partnership,
joint venture, association, syndicate, unincorporated business or other
separate entity, (ii) shall be construed to impose any liability as such on
any of them or (iii) shall be deemed to confer on any of them any express,
implied or apparent authority to incur any obligation or liability on behalf
of the others.

         Section 6.08. Other Activities of Trust Administrator and the
Depositor. Nothing herein shall prevent the Trust Administrator, the Depositor
or their respective Affiliates from engaging in other businesses or, in its
sole discretion, from acting in a similar capacity as an Trust Administrator
for any other person or entity even though such person or entity may engage in
business activities similar to those of the Issuer or the Owner Trustee.

         Section 6.09. Resignation and Removal of Trust Administrator.

         (a) Subject to Section 6.09(d) hereof, the Trust Administrator may
resign its duties hereunder by providing the Issuer with at least [60] days'
prior written notice.

         (b) Subject to Section 6.09(d) hereof, the Issuer may remove the
Trust Administrator without cause by providing the Trust Administrator with at
least [60] days' prior written notice.

         (c) Subject to Section 6.09(d) hereof, the Issuer may remove the
Trust Administrator immediately upon written notice of termination from the
Issuer to the Trust Administrator if any of the following events shall occur;
provided that in the event of a breach related to the obligations set forth in
Section 6.09(d) (with respect to notice to the Depositor) or Article X, the
Trust Administrator may only be terminated at the direction of the Depositor:

                  (i) the Trust Administrator shall default in the performance
         of any of its duties under this Agreement ((except with respect to a
         failure related to a Limited Exchange Act Reporting Obligation) and,
         after notice of such default, shall not cure such default within
         [ten] days (or, if such default cannot be cured in such time, shall
         not give within [ten] days such assurance of cure as shall be
         reasonably satisfactory to the Issuer provided that the [ten-day]
         cure period shall not apply to the failure to comply with the
         requirements set forth in Section 6.09(d) (with respect to notice to
         the Depositor) or Article X, for which the grace period shall not
         exceed the lesser of 10 calendar days or such period in which the
         applicable Exchange Act Report can be filed timely (without taking
         into account any extensions)); or

                  (ii) a court having jurisdiction in the premises shall (x)
         enter a decree or order for relief, which decree or order shall not
         have been vacated within [60] days, in respect of the Trust
         Administrator in any involuntary case under any applicable
         bankruptcy, insolvency or other similar law now or hereafter in
         effect, or (y) appoint a receiver, liquidator, assignee, custodian,
         trustee, sequestrator or similar official for the Trust Administrator
         or any substantial part of its property, or (z) order the winding-up
         or liquidation of the Trust Administrator's affairs; or

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                  (iii) the Trust Administrator shall commence a voluntary
         case under any applicable bankruptcy, insolvency or other similar law
         now or hereafter in effect, shall consent to the entry of an order
         for relief in an involuntary case under any such law, or shall
         consent to the appointment of a receiver, liquidator, assignee,
         trustee, custodian, sequestrator or similar official for the Trust
         Administrator or any substantial part of its property, shall consent
         to the taking of possession by any such official of any substantial
         part of its property, shall make any general assignment for the
         benefit of creditors or shall fail generally to pay its debts as they
         become due.

         The Trust Administrator agrees that if any of the events specified in
clauses (ii) or (iii) of this Section 6.09(c) shall occur, it shall give
written notice thereof to the Issuer and the Indenture Trustee within [seven]
days after the occurrence of such event.

         The Depositor shall not be entitled to terminate the rights and
obligations of the Trust Administrator pursuant to subparagraph (c)(i) if a
failure of the Trust Administrator 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.

         (d) No resignation or removal of the Trust Administrator pursuant to
this Section shall be effective until (i) a successor Trust Administrator
shall have been appointed by the Issuer in accordance with the Trust
Agreement, (ii) such successor Trust Administrator shall have agreed in
writing to be bound by the terms of this Agreement in the same manner as the
Trust Administrator is bound hereunder and (iii) the Depositor shall have
received the information described in the following sentence. As a condition
to the effectiveness of any such resignation, at least 15 calendar days prior
to the effective date of such resignation, the Trust Administrator shall
provide (x) written notice to the Depositor of any successor pursuant to this
Section and (y) in writing and in form and substance reasonably satisfactory
to the Depositor, all information reasonably requested by the Depositor in
order to comply with its reporting obligation under Item 6.02 of Form 8-K with
respect to a successor trust administrator. If a successor Trust Administrator
does not take office within [60] days after the retiring Trust Administrator
resigns or is removed, the resigning or removed Trust Administrator or the
Issuer may petition any court of competent jurisdiction for the appointment of
a successor Trust Administrator.

         (e) The appointment of any successor Trust Administrator shall be
effective only after receipt of a letter from each Rating Agency to the effect
that such proposed appointment will not cause a reduction or withdrawal of the
then current ratings of the Notes.

         (f) Subject to Sections 6.09(d) and 6.09(e) above, the Trust
Administrator acknowledges that upon the appointment of a successor Servicer
pursuant to Section 7.01, the Trust Administrator shall immediately resign and
such successor Servicer shall automatically become the Trust Administrator
under this Agreement. Any such successor Servicer shall be required to agree
to assume the duties of the Trust Administrator under the terms and conditions
of this Agreement and the other Operative Agreements in its acceptance of
appointment as successor Servicer.

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         Section 6.10. Action upon Termination, Resignation or Removal of the
Trust Administrator. Promptly upon the effective date of termination of this
Agreement or the resignation or removal of the Trust Administrator pursuant to
Section 6.09 hereof, the Trust Administrator shall be entitled to be paid all
reimbursable expenses, including any reasonable out-of-pocket attorneys' fees,
accruing to it to the date of such termination, resignation or removal. The
Trust Administrator shall forthwith upon such termination pursuant to Section
6.09 deliver to the successor Trust Administrator all property and documents
of or relating to the Collateral then in the custody of the Trust
Administrator, or if this Agreement has been terminated, to the Depositor. In
the event of the resignation or removal of the Trust Administrator pursuant to
Section 6.09, the Trust Administrator shall cooperate with the Issuer and take
all reasonable steps requested to assist the Issuer in making an orderly
transfer of the duties of the Trust Administrator.

                                 ARTICLE VII

                          SERVICER EVENTS OF DEFAULT

         Section 7.01. Servicer Events of Default; Indenture Trustee To Act;
Appointment of Successor.

         (a) The occurrence of any one or more of the following events shall
constitute a "Servicer Event of Default":

                  (i) Any failure by the Servicer to furnish to the Trust
         Administrator the Mortgage Loan data sufficient to prepare the
         reports described in Section 4.11(a) which continues unremedied for a
         period of [one] Business Day after the date upon which written notice
         of such failure shall have been given to the Servicer by the
         Indenture Trustee by the Holders of not less than [25]% of the Class
         Principal Amount of each Class of Notes affected thereby; or

                  (ii) Any failure on the part of the Servicer duly to observe
         or perform in any material respect any other of the covenants or
         agreements on the part of the Servicer (except with respect to a
         failure related to a Limited Exchange Act Reporting Obligation)
         contained in this Agreement which continues unremedied for a period
         of [30] days after the date on which written notice of such failure,
         requiring the same to be remedied, shall have been given to the
         Servicer by the Indenture Trustee or the Trust Administrator or to
         the Servicer and the Indenture Trustee by the Majority Noteholders;
         provided that the [thirty-day] cure period shall not apply to the
         failure to comply with the requirements set forth in Section 10.04,
         Section 4.28 (with respect to notice to the Depositor), Section 4.29
         (with respect to notice to the Depositor) or Article X, for which the
         grace period shall not exceed the lesser of 10 calendar days or such
         period in which the applicable Exchange Act Report can be filed
         timely (without taking into account any extensions); or

                  (iii) failure by the Servicer to maintain its license to do
         business or service residential mortgage loans in any jurisdiction
         where the Mortgaged Properties are located except where the failure
         to so maintain such license does not have a material adverse effect
         on the Servicer's ability to service the Mortgage Loans; or

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                  (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,
         marshalling of assets and liabilities or similar proceedings, or for
         the winding up or liquidation of its affairs, shall have been entered
         against the Servicer, and such decree or order shall have remained in
         force undischarged or unstayed for a period of [60] days or any
         Rating Agency reduces or withdraws or threatens to reduce or withdraw
         the rating of the Notes because of the financial condition or loan
         servicing capability of such Servicer; or

                  (v) The Servicer shall consent to the appointment of a
         conservator or receiver or liquidator in any insolvency, readjustment
         of debt, marshalling of assets and liabilities, voluntary liquidation
         or similar proceedings of or relating to the Servicer or of or
         relating to all or substantially all of its property; or

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

                  (vii) the Servicer ceases to be a FHA Approved Mortgagee; or

                  (viii) the Servicer attempts to assign the servicing of the
         Mortgage Loans or its right to servicing compensation hereunder or
         the Servicer or attempts to assign this Agreement or the servicing
         responsibilities hereunder or to delegate its duties hereunder or any
         portion thereof in a manner not permitted under this Agreement; or

                  (ix) The Servicer shall be dissolved, or shall dispose of
         all or substantially all of its assets, or consolidate with or merge
         into another entity or shall permit another entity to consolidate or
         merge into it, such that the resulting entity does not meet the
         criteria for a successor servicer as specified in Section 4.28
         hereof; or

                  (x) If a representation or warranty set forth in Section
         4.02 hereof shall prove to be incorrect as of the time made in any
         respect that materially and adversely affects the interests of the
         Noteholders, and the circumstance or condition in respect of which
         such representation or warranty was incorrect shall not have been
         eliminated or cured within [30] days after the date on which written
         notice of such incorrect representation or warranty shall have been
         given to the Servicer by the Indenture Trustee or the Trust
         Administrator, or to the Servicer and the Indenture Trustee by the
         Majority Noteholders; or

                  (xi) A sale or pledge of any of the rights of the Servicer
         hereunder or an assignment of this Agreement by the Servicer or a
         delegation of the rights or duties of the Servicer hereunder shall
         have occurred in any manner not otherwise permitted hereunder and
         without the prior written consent of the Indenture Trustee and the
         Majority Noteholders; or

                  (xii) The Servicer has notice or actual knowledge that the
         Servicer at any time is not either an FHA Approved Mortgagee, and the
         Servicer has not terminated the rights

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         and obligations of such Servicer under this Agreement and replaced
         the Servicer with an FHA Approved Mortgagee within [60] days of the
         date the Servicer receives such notice or acquires such actual
         knowledge; or

                  (xiii) Any failure of the Servicer to remit to the Trust
         Administrator any Advance required to be made to the Trust
         Administrator for the benefit of Noteholders under the terms of this
         Agreement, which failure continues unremedied as of the close of
         business on the Business Day prior to a Payment Date.

         If a Servicer Event of Default described in clauses (i) through (ix)
of this Section 7.01 shall occur, then, in each and every case, subject to
applicable law, so long as any such Servicer Event of Default shall not have
been remedied within any period of time prescribed by this Section 7.01, the
Indenture Trustee, upon obtaining actual knowledge thereof, by notice in
writing to the Servicer may, and shall, if so directed by the Majority
Noteholders, terminate all of the rights and obligations of the Servicer
hereunder and in and to the Mortgage Loans and the proceeds thereof; provided
that in the event of a Servicer Event of Default related to the obligations
set forth in Section 4.26(a), Section 4.14(b) (with respect to notice to the
Depositor) or Article X, the Servicer may only be terminated at the direction
of the Depositor. If a Servicer Event of Default described in clause (x) of
this Section 7.01 shall occur, then, in each and every case, subject to
applicable law, so long as such Servicer Event of Default shall not have been
remedied within the time period prescribed by clause (x) of this Section 7.01,
the Indenture Trustee, by notice in writing to the Servicer, shall promptly
terminate all of the rights and obligations of the Servicer hereunder and in
and to the Mortgage Loans and the proceeds thereof. On or after the receipt by
the Servicer of such written notice, all authority and power of the Servicer,
and only in its capacity as Servicer under this Agreement, whether with
respect to the Mortgage Loans or otherwise, shall pass to and be vested in the
Indenture Trustee pursuant to and under the terms of this Agreement; and the
Indenture Trustee is hereby authorized and empowered to execute and deliver,
on behalf of the defaulting Servicer as attorney-in-fact or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents or otherwise. The defaulting Servicer
agrees to cooperate with the Indenture Trustee in effecting the termination of
the defaulting Servicer's responsibilities and rights hereunder as Servicer
including, without limitation, providing the Indenture Trustee or its designee
all documents and records in electronic or other form reasonably requested by
it to enable the Indenture Trustee or its designee to assume the defaulting
Servicer's functions hereunder and the transfer to the Indenture Trustee for
administration by it of all amounts which shall at the time be or should have
been deposited by the defaulting Servicer in the Collection Account maintained
by such defaulting Servicer and any other account or fund maintained with
respect to the Notes or thereafter received with respect to the Mortgage
Loans. The Servicer being terminated shall bear all reasonable out-of-pocket
costs of a servicing transfer, including but not limited to those of the
Indenture Trustee, legal fees and expenses, accounting and financial
consulting fees and expenses, and costs of amending the Agreement, if
necessary. In addition, if during the period that the Depositor is required to
file Exchange Act Reports with respect to the Trust Fund, the Servicer shall
fail to observe or perform any of the obligations that constitute a Limited
Exchange Act Reporting Obligation or the obligations set forth in Section
4.28(a), Section 4.14(a) or Section 10.01(a)(1) and (2), and such failure
continues for the lesser of [10] calendar

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days or such period in which the applicable Exchange Act Report can be filed
timely (without taking into account any extensions), so long as such failure
shall not have been remedied, the Trust Administrator shall, but only at the
direction of the Depositor, terminate all of the rights and obligations of the
Servicer under this Agreement and in and to the Mortgage Loans and the
proceeds thereof, other than its rights as a Noteholder hereunder. The
Depositor shall not be entitled to terminate the rights and obligations of the
Servicer if a failure of the Servicer to identify a Subcontractor
"participating in the servicing function" within the meaning of Item 1122 of
Regulation AB was the attributable solely to the role or functions of such
Subcontractor with respect to mortgage loans other than the Mortgage Loans.

         The Indenture Trustee shall be entitled to be reimbursed from the
Servicer (or by the Trust Estate, if the Servicer is unable to fulfill its
obligations hereunder) for all costs associated with the transfer of servicing
from the predecessor Servicer, including, without limitation, any costs or
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 Indenture Trustee to correct any errors or insufficiencies in
the servicing data or otherwise to enable the Indenture Trustee to service the
Mortgage Loans properly and effectively. If the terminated Servicer does not
pay such reimbursement within [thirty] days of its receipt of an invoice
therefor, such reimbursement shall be an expense of the Trust Estate and the
Indenture Trustee shall be entitled to withdraw such reimbursement from
amounts on deposit in the Collection Account pursuant to Section 4.08(ix);
provided that the terminated Servicer shall reimburse the Trust Estate for any
such expense incurred by the Trust Estate; and provided, further, that the
Indenture Trustee shall take such action, if any, as provided in the Indenture
and as directed by the Noteholders pursuant thereto with respect to pursuing
any remedy against any party obligated to make such reimbursement.

         Notwithstanding the termination of its activities as Servicer, each
terminated Servicer shall continue to be entitled to reimbursement to the
extent provided in Section 4.08 to the extent such reimbursement relates to
the period prior to such Servicer's termination.

         If any Servicer Event of Default shall occur, of which a Responsible
Officer of the Indenture Trustee has actual knowledge, the Indenture Trustee
shall promptly notify each Rating Agency and the Depositor of the nature and
extent of such Servicer Event of Default. The Trust Administrator or the
Servicer shall immediately give written notice to the Indenture Trustee upon
the Servicer's failure to remit Advances on the date specified herein.

         In the event that the Indenture Trustee assumes the duties of the
Servicer as set forth herein, the Indenture Trustee shall provide the
Depositor in writing and in form and substance reasonably satisfactory to the
Depositor, all information reasonably requested by the Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect
to a successor Servicer.

         (b) On and after the time the Servicer receives a notice of
termination from the Indenture Trustee pursuant to Section 7.01(a) or the
Indenture Trustee receives the resignation of the Servicer evidenced by an
Opinion of Counsel pursuant to Section 4.29, the Indenture Trustee, unless
another Servicer shall have been appointed, shall be the successor in all
respects to the Servicer in its capacity as such under this Agreement and the
transactions set forth or provided

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for herein and shall have all the rights and powers and be subject to all the
responsibilities, duties and liabilities relating thereto and arising
thereafter placed on the Servicer hereunder, including the obligation to make
Advances; provided, however, that any failure to perform such duties or
responsibilities caused by the Servicer's failure to provide information
required by this Agreement shall not be considered a default by the Indenture
Trustee hereunder. In addition, the Indenture Trustee shall have no
responsibility for any act or omission of the Servicer prior to the issuance
of any notice of termination and shall have no liability relating to the
representations and warranties of the Servicer set forth in Section 4.02. In
the Indenture Trustee's capacity as such successor, the Indenture Trustee
shall have the same limitations on liability herein granted to the Servicer.
As compensation therefor, the Indenture Trustee shall be entitled to receive
all compensation payable to the Servicer under this Agreement.

         (c) Notwithstanding the above, the Indenture Trustee may, if it shall
be unwilling to continue to so act, or shall, if it is unable to so act,
appoint, or petition a court of competent jurisdiction to appoint, any
established housing and home finance institution servicer, 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 Servicer as are
set forth in this Agreement, as the successor to such Servicer in the
assumption of all of the responsibilities, duties or liabilities of a
Servicer, like the Servicer. Such successor Servicer may be an Affiliate of
the Indenture Trustee; provided, however, that, unless such Affiliate meets
the net worth requirements and other standards set forth herein for a
successor Servicer, the Indenture Trustee, in its individual capacity shall
agree, at the time of such designation, to be and remain liable to the Issuer
and the Indenture Trustee for such Affiliate's actions and omissions in
performing its duties hereunder. In connection with such appointment and
assumption, the Indenture Trustee may make such arrangements for the
compensation of such successor out of payments on the Mortgage Loans as it and
such successor shall agree; provided, however, that no such compensation shall
be in excess of that permitted to the Servicer hereunder. The Indenture
Trustee and such successor shall take such actions, consistent with this
Agreement, as shall be necessary to effectuate any such succession and may
make other arrangements with respect to the servicing to be conducted
hereunder which are not inconsistent herewith. The Servicer shall cooperate
with the Indenture Trustee and any successor Servicer in effecting the
termination of the Servicer's responsibilities and rights hereunder including,
without limitation, notifying the Servicer of the assignment of the servicing
functions and providing the Indenture Trustee and successor Servicer, as
applicable, all documents and records in electronic or other form reasonably
requested by it to enable it to assume the Servicer's functions hereunder and
the transfer to the Indenture Trustee or such successor Servicer, as
applicable, all amounts or investment property which shall at the time be or
should have been deposited by the Servicer in the Collection Account and any
other account or fund maintained with respect to the Notes or thereafter be
received with respect to the Mortgage Loans. Neither the Indenture Trustee 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 payment hereunder
or any portion thereof caused by (i) the failure of the Servicer to deliver,
or any delay in delivering, cash, documents or records to it, (ii) the failure
of the Servicer to cooperate as required by this Agreement, (iii) the failure
of the Servicer to deliver the Mortgage Loan data to the Indenture Trustee as
required by this Agreement or (iv) restrictions imposed by any regulatory
authority having jurisdiction over the Servicer.

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         As a condition to any such succession, such successor Servicer shall
provide to the Depositor in writing and in form and substance reasonably
satisfactory to the Depositor, all information reasonably requested by the
Depositor in order to comply with its reporting obligation under Item 6.02 of
Form 8-K with respect to a successor Servicer.

         Section 7.02. Additional Remedies of Indenture Trustee Upon Servicer
Event of Default. During the continuance of any Servicer Event of Default, so
long as such Servicer Event of Default shall not have been remedied, the
Indenture Trustee, in addition to the rights specified in Section 7.01, shall
have the right, in its own name and as trustee of an express trust, to take
all actions now or hereafter existing at law, in equity or by statute to
enforce its rights and remedies and to protect the interests, and enforce the
rights and remedies, of the Noteholders (including the institution and
prosecution of all judicial, administrative and other proceedings and the
filings of proofs of claim and debt in connection therewith). Except as
otherwise expressly provided in this Agreement, no remedy provided for by this
Agreement shall be exclusive of any other remedy, and each and every remedy
shall be cumulative and in addition to any other remedy, and no delay or
omission to exercise any right or remedy shall impair any such right or remedy
or shall be deemed to be a waiver of any Servicer Event of Default.

         Section 7.03. Waiver of Defaults. The Majority Noteholders may, on
behalf of all Noteholders, waive any default or Servicer Event of Default by
the Servicer in the performance of its obligations hereunder, except that a
default in the making of any required deposit to the Collection Account that
would result in a failure of the Trust Administrator or the Paying Agent to
make any required payment of principal of or interest on the Notes may only be
waived with the consent of [100]% of the affected Noteholders. Notwithstanding
the foregoing, in the event of a Servicer Event of Default related to the
obligations set forth in Section 4.26, Section 4.14(b) (with respect to notice
to the Depositor) and Article X, only the Depositor may waive such Servicer
Event of Default. Upon any waiver of a past default, such default shall cease
to exist, and any Servicer 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.

         Section 7.04. Notification to Holders. Upon termination of the
Servicer or appointment of a successor to the Servicer, in each case as
provided herein, the Indenture Trustee shall promptly mail notice thereof by
first class mail to the Noteholders at their respective addresses appearing on
the applicable Register. The Indenture Trustee shall also, within [45] days
after the occurrence of any Servicer Event of Default known to the Indenture
Trustee, give written notice thereof to Noteholders, unless such Servicer
Event of Default shall have been cured or waived prior to the issuance of such
notice and within such [45] day period.

         Section 7.05. Directions by Noteholders and Duties of Indenture
Trustee During Servicer Event of Default. During the continuance of any
Servicer Event of Default, the Majority Noteholders may direct the time,
method and place of conducting any proceeding for any remedy available to the
Indenture Trustee, or exercising any trust or power conferred upon the
Indenture Trustee, under this Agreement; provided, however, that the Indenture
Trustee shall be under no obligation to pursue any such remedy, or to exercise
any of the trusts or powers vested in it by this Agreement (including, without
limitation, (i) the conducting or defending of any administrative action or
litigation hereunder or in relation hereto and (ii) the terminating of the

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Servicer or any successor Servicer from its rights and duties as Servicer
hereunder) at the request, order or direction of any of the Noteholders,
unless such Noteholders shall have offered to the Indenture Trustee security
or indemnity reasonably satisfactory to it against the cost, expenses and
liabilities which may be incurred therein or thereby; and, provided further,
that, the Indenture Trustee shall have the right to decline to follow any such
direction if the Indenture Trustee, in accordance with an Opinion of Counsel,
determines that the action or proceeding so directed may not lawfully be taken
or if the Indenture Trustee in good faith determines that the action or
proceeding so directed would involve it in personal liability for which it is
not indemnified to its satisfaction or be unjustly prejudicial to the non
assenting Noteholders.

         Section 7.06. Action Upon Certain Failures of the Servicer and Upon
Servicer Event of Default. In the event that a Responsible Officer of the
Indenture Trustee or the Trust Administrator shall have actual knowledge of
any action or inaction of the Servicer that would become a Servicer Event of
Default upon the Servicer's failure to remedy the same after notice, the
Indenture Trustee or Trust Administrator, as applicable, shall give notice
thereof to the Servicer.

                                 ARTICLE VIII

                                  TERMINATION

         Section 8.01. Termination. The respective obligations and
responsibilities of the Servicer, the Trust Administrator, the Depositor, the
Issuer, the Servicer and the Indenture Trustee created hereby (other than
obligations expressly stated to survive the termination of the Trust) shall
terminate on the day after the day on which the Notes are paid in full
(including payment pursuant to Section 8.02 below) (the "Termination Date").

         Section 8.02. Termination Prior to Maturity Date; Optional
Redemption.

         (a) On the Payment Date following the Determination Date on which the
Aggregate Collateral Balance is less than [20]% of the Aggregate Collateral
Balance as of the Cut-off Date, _____________________________ acting directly
or through one or more Affiliates, shall have the option to purchase the
Mortgage Loans, any REO Property and any other property remaining in the Trust
for a price equal to the Termination Price. The Servicer will be reimbursed
from the Termination Price for any outstanding Advances, Servicing Advances
and unpaid Servicing Fees and other amounts not previously reimbursed pursuant
to the provisions of this Agreement, as applicable, and the Trust
Administrator, the Owner Trustee and the Indenture Trustee shall be reimbursed
for any previously unreimbursed amounts for which they are entitled to be
reimbursed pursuant to this Agreement, the Indenture or the Trust Agreement,
as applicable. If such option is exercised, the Trust will be terminated
resulting in a mandatory redemption of the Notes. _____________________ shall
deliver written notice of its intention to exercise such option to the Issuer,
the Trust Administrator, the Indenture Trustee and the Servicer not less than
[15] days prior to the applicable Payment Date. If _____________________ fails
to exercise such option prior to the Stepup Date, the Note Interest Rate for
each class of Notes will be increased as set forth herein beginning on the
Stepup Date and for each Payment Date thereafter. _____________________ shall
deliver written notice of its intention to exercise such option to

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the Issuer, the Indenture Trustee and the Servicer not less than [ten] days
prior to the applicable Payment Date.

         (b) In addition, if ______________________ does not exercise its
purchase option pursuant to subsection (a) of this Section 8.02, then, on the
Payment Date following the Determination Date on which the Aggregate
Collateral Balance is less than [10]% of the Aggregate Collateral Balance as
of the Cut-off Date, the Servicer acting directly or through one or more
Affiliates, shall have the option to purchase the Mortgage Loans, any REO
Property and any other property remaining in the Trust for a price equal to
the Termination Price. All conditions applying to _____________________'s
right to purchase the Mortgage Loans pursuant to paragraph (a) above shall
also apply to the Servicer's right.

         (c) Promptly following any such purchase pursuant to paragraph (a) or
(b) of this Section and receipt of an Officer's Certificate of
_____________________ or of the Servicer, as applicable, that the purchase
price has been deposited in the Collection Account, the Indenture Trustee
shall release the Mortgage Files to the purchaser of such Mortgage Loans
pursuant to this Section 8.02, or otherwise upon its order.

         Section 8.03. Certain Notices upon Final Payment. The Servicer or the
Trust Administrator, as applicable, shall give the Issuer, the Indenture
Trustee, the Owner Trustee, each Rating Agency, each Noteholder and the
Depositor at least [30] days' prior written notice of the date on which the
Trust is expected to terminate in accordance with Section 8.01, or the date on
which the Notes will be redeemed in accordance with Section 8.02. Not later
than the [fifth] Business Day in the Collection Period in which the final
payment in respect to the Notes is payable to the Noteholders, the Indenture
Trustee shall mail to the Noteholders a notice specifying the procedures with
respect to such final payment. The Trust Administrator on behalf of the
Indenture Trustee shall give a copy of such notice to each Rating Agency at
the time such notice is given to Noteholders. Following the final payment
thereon, such Notes shall become void, no longer outstanding and no longer
evidence any right or interest in the Mortgage Loans, the Mortgage Files or
any proceeds of the foregoing.

                                  ARTICLE IX

                           MISCELLANEOUS PROVISIONS

         Section 9.01. Binding Nature of Agreement; Assignment. This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

         Section 9.02. 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 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.

         Section 9.03. Amendment.

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         (a) This Agreement may be amended from time to time by the parties
hereto, without notice to or the consent of any of the Holders of the Notes,
(i) to cure any ambiguity, (ii) to conform the provisions of this Agreement to
the information contained in the Prospectus or to correct or supplement any
provision herein, (iii) to make any other provision with respect to matters or
questions arising under this Agreement or (iv) to add, delete, or amend any
provision in order to comply with any requirements imposed by the Code, ERISA
and their related regulations. No such amendment effected pursuant to the
preceding sentence shall, as evidenced by an Opinion of Counsel (which shall
be an expense of the party requesting such amendment and shall not be an
expense of the Trust or the Indenture Trustee), (1) affect the status of the
Notes as debt for federal income tax purposes or (2) only in the case of an
amendment effected pursuant to clause (iii) of such sentence, adversely affect
in any material respect the interests of any Holder. Prior to entering into
any amendment without the consent of Holders pursuant to this paragraph, the
Indenture Trustee may require an Opinion of Counsel (at the expense of the
party requesting such amendment) to the effect that such amendment is
permitted under this paragraph. Any such amendment shall be deemed not to
adversely affect in any material respect any Holder, if the Indenture Trustee
receives written confirmation from each Rating Agency that such amendment will
not cause such Rating Agency to reduce the then current ratings assigned to
the Notes.

         (b) This Agreement may also be amended from time to time by the
parties hereto with the consent of (i) the Holders of each Class of Notes
affected thereby evidencing Voting Interests aggregating not less than
[66-2/3]% of each such Class and (ii) the Holder of the Ownership Certificate,
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or modifying in any manner
the rights of Noteholders; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments that are
required to be made in respect of any Notes without the consent of the Holder
of each such Note affected thereby or (ii) reduce the percentage of Notes the
Holders of which are required to consent to any such amendment without the
consent of the Holders of [100]% of the Class Principal Amount of the Notes.
For purposes of this paragraph, references to "Holder" or "Holders" shall be
deemed to include, in the case of Book-Entry Notes, the related Note Owners.

         (c) Promptly after the execution of any such amendment, the Indenture
Trustee shall furnish written notification of the substance of such amendment
to each Holder, the Depositor and to each Rating Agency.

         (d) It shall not be necessary for the consent of Holders under this
Section 9.03 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 Holders shall be subject to such reasonable regulations
as the Indenture Trustee may prescribe.

         Section 9.04. Acts of Noteholders. Except as otherwise specifically
provided herein, whenever Noteholder action, consent or approval is required
under this Agreement, such action, consent or approval shall be deemed to have
been taken or given on behalf of, and shall be binding upon, all Noteholders
if the Majority Noteholders agree to take such action or give such consent or
approval.

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         Section 9.05. Recordation of Agreement. To the extent permitted by
applicable law, this Agreement, or a memorandum thereof if permitted under
applicable law, 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 properties subject to the Mortgages
are situated, and in any other appropriate public recording office or
elsewhere, such recordation to be effected by the Depositor on direction and
at the expense of Holders of not less than [66-2/3]% of the Note Principal
Amount of the Notes and of the Holder of the Ownership Certificate requesting
such recordation, but only when accompanied by an Opinion of Counsel to the
effect that such recordation materially and beneficially affects the interests
of the Noteholders, or is necessary for the administration or servicing of the
Mortgage Loans.

         Section 9.06. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         Section 9.07. Notices. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
mailed by overnight courier, addressed as follows or delivered by facsimile
(or such other address as may hereafter be furnished to the other party by
like notice):

                  (i)      if to the Seller:

                           ____________________________
                           ___________________________
                           ________________________
                           Attention:  _____________________________
                           Telephone:  ____________
                           Facsimile:  ____________

                           with a copy to:
                           ___________________

                  (ii)     if to the Servicer:

                           _________________________
                           _______________________
                           Attention:  _________________________
                           Telephone:  _____________
                           Facsimile:  ____________

                           with a copy to:
                           ____________________

                  (iii)    if to the Trust Administrator:

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                           ____________________
                           ______________
                           _________________
                           Attention:  ___________________________
                           ______________________________
                           ________________________
                           Telephone:  ____________
                           Facsimile:   _____________

                  (iv)     if to the Indenture Trustee:

                           ____________________________________
                           __________________________
                           _______________________
                           Attention:  ______________________
                           Telephone:  _____________
                           Facsimile:  ____________

                  (v)      if to the Depositor:

                           IndyMac MBS, Inc.
                           155 North Lake Avenue
                           Pasadena, California  91101
                           Attention: _______ 200____

                  (vi)     if to the Issuer:

                           c/o ___________________
                           ________________
                           _____________________
                           _______________________
                           Attention:  ______________________

         All demands, notices and communications to a party hereunder shall be
in writing and shall be deemed to have been duly given when delivered to such
party at the relevant address, facsimile number or electronic mail address set
forth above or at such other address, facsimile number or electronic mail
address as such party may designate from time to time by written notice in
accordance with this Section 9.07.

         Section 9.08. 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 Notes or
the rights of the Holders thereof.

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         Section 9.09. Indulgences; No Waivers. 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.

         Section 9.10. Headings Not To Affect Interpretation. The headings
contained in this Agreement are for convenience of reference only, and they
shall not be used in the interpretation hereof.

         Section 9.11. Benefits of Agreement. Nothing in this Agreement or in
the Notes, express or implied, shall give to any Person, other than the
parties to this Agreement and their successors hereunder and the Holders of
the Notes, any benefit or any legal or equitable right, power, remedy or claim
under this Agreement. Notwithstanding the foregoing, (i) the Owner Trustee
shall be an express third-party beneficiary of this Agreement and (ii)
_____________________ shall be an express third-party beneficiary with respect
to Section 8.02.

         Section 9.12. Special Notices to the Rating Agencies.

         (a) The Servicer shall give prompt notice to each Rating Agency of
the occurrence of any of the following events of which it has notice:

                  (i) any amendment to this Agreement pursuant to Section
         9.03; and

                  (ii) the making of a final payment hereunder.

         (b) All notices to the Rating Agencies provided for by this Section
shall be in writing and sent by first class mail, telecopy or overnight
courier, as follows:

if to [Moody's]:

         [Moody's Investors Service, Inc.
         99 Church Street
         New York, New York 10004
         Fax no.:  (212) 553-4392]

if to [S&P]:

         [Standard & Poor's Ratings Services, a division
         of The McGraw-Hill Companies, Inc.
         55 Water Street
         New York, New York  10041
         Fax no.:  (212) 438-2661]

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<PAGE>

         (c) The Trust Administrator shall make available to the Rating
Agencies each report prepared pursuant to Section 4.11.

         Section 9.13. Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original, and all of
which together shall constitute one and the same instrument.

         Section 9.14. Execution by the Issuer. It is expressly understood and
agreed by the parties hereto that (a) this Agreement is executed and delivered
by __________________, not individually or personally but solely as Owner
Trustee of the Issuer, in the exercise of the powers and authority conferred
and vested in it as trustee, (b) each of the representations, undertakings and
agreements herein made on the part of the Issuer is made and intended not as
personal representations, undertakings and agreements by _____________________
but is made and intended for the purpose of binding only the Issuer, (c)
nothing herein contained shall be construed as creating any liability on
______________________, individually or personally, to perform any covenant
either expressed or implied contained herein, all such liability, if any,
being expressly waived by the parties hereto and by any person claiming by,
through or under the parties hereto and (d) under no circumstances shall
______________________ be personally liable for the payment of any
indebtedness or expenses of the Issuer or be liable for the breach or failure
of any obligation, representation, warranty or covenant made or undertaken by
the Issuer under this Agreement or any other document.

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<PAGE>

                                  ARTICLE X
                            EXCHANGE ACT REPORTING

         Section 10.01. Filing Obligations.

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

         Section 10.02. Form 10-D Filings.

         (a) In accordance with the Exchange Act, the Trust Administrator
shall prepare for filing and file within 15 days after each Payment Date
(subject to permitted extensions under the Exchange Act) with the Commission
with respect to the Trust Fund, a Form 10-D with copies of the Monthly Report
and, to the extent delivered to the Trust Administrator, no later than 10 days
following the Payment Date, such other information identified by the Depositor
or the Servicer, in writing, to be filed with the Commission (such other
information, the "Additional Designated Information"). If the Depositor or
Servicer directs that any Additional Designated Information is to be filed
with any Form 10-D, the Depositor or Servicer, as the case may be, shall
specify the Item on Form 10-D to which such information is responsive and,
with respect to any Exhibit to be filed on Form 10-D, the Exhibit number. Any
information to be filed on Form 10-D shall be delivered to the Trust
Administrator in EDGAR-compatible form or as otherwise agreed upon by the
Trust Administrator and the Depositor or the Servicer, as the case may be, at
the [Servicer's] expense, and any necessary conversion to EDGAR-compatible
format will be at the Depositor's expense. At the reasonable request of, and
in accordance with the reasonable directions of, the Depositor or the
Servicer, subject to the two preceding sentences, the Trust Administrator
shall prepare for filing and file an amendment to any Form 10-D previously
filed with the Commission with respect to the Trust Fund. The [Servicer] shall
sign the Form 10-D filed on behalf of the Trust Fund.

         (b) No later than each Payment Date, each of the Servicer, the Trust
Administrator, the Owner Trustee and the [Indenture Trustee] shall notify the
Depositor and the Servicer of any Form 10-D Disclosure Item, together with a
description of any such Form 10-D Disclosure Item in form and substance
reasonably acceptable to the Depositor. In addition to such information as the
Servicer, the Trust Administrator and the [Indenture Trustee] are obligated to
provide pursuant to other provisions of this Agreement, if so requested by the
Depositor, each of the Servicer, the Trust Administrator and the [Indenture
Trustee] shall provide such information which is available to the Servicer,
the Trust Administrator and the [Indenture Trustee], as applicable, without
unreasonable effort or expense regarding the performance or servicing of the

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Mortgage Loans (in the case of the Servicer, the [Indenture Trustee] and the
Trust Administrator, based on the information provided by the Servicer) as is
reasonably required to facilitate preparation of distribution reports in
accordance with Item 1121 of Regulation AB. Such information shall be provided
concurrently with the remittance reports in the case of the Servicer and the
reports to the noteholders in the case of the Trust Administrator and the
[Indenture Trustee], commencing with the first such report due not less than
five Business Days following such request.

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

         Section 10.03. Form 8-K Filings.

                  The Servicer shall prepare and file on behalf of the Trust
Fund any Form 8-K required by the Exchange Act. [Each Form 8-K must be signed
by the Servicer.] Each of the Servicer, the Trust Administrator, the Owner
Trustee and the [Indenture Trustee] shall promptly notify the Depositor and
the Servicer (if the notifying party is not the Servicer), but in no event
later than one (1) Business Day after its occurrence, of any Reportable Event
of which it has actual knowledge. Each Person shall be deemed to have actual
knowledge of any such event to the extent that it relates to such Person or
any action or failure to act by such Person.

         Section 10.04. Form 10-K Filings.

                  Prior to March 30th of each year, commencing in 20[ ] (or
such earlier date as may be required by the Exchange Act), the Servicer shall
prepare and file on behalf of the Trust Fund a Form 10-K, in form and
substance as required by the Exchange Act. A senior officer in charge of the
servicing function of the Servicer shall sign each Form 10-K filed on behalf
of the Trust Fund. Such Form 10-K shall include as exhibits each (i) annual
compliance statement described under Section 4.26, (ii) annual report on
assessments of compliance with servicing criteria described under Section
10.07 and (iii) accountant's report described under Section 10.07. Each Form
10-K shall also include any Sarbanes-Oxley Certification required to be
included therewith, as described in Section 10.05.

                  If the Item 1119 Parties listed on Exhibit G have changed
since the Closing Date, no later than March 1 of each year, the
[Depositor/Servicer] shall provide each of the Servicer, the Trust
Administrator, the Owner Trustee and the [Indenture Trustee] with an updated
Exhibit G setting forth the Item 1119 Parties. No later than March 15 of each
year, commencing in 20[ ], the Servicer, the Trust Administrator, the Owner
Trustee and the [Indenture Trustee] shall notify the Depositor and the
Servicer of any Form 10-K Disclosure Item, together with a description of any
such Form 10-K Disclosure Item in form and substance reasonably acceptable to
the Depositor. Additionally, each of the Servicer, the Trust Administrator and
the [Indenture

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<PAGE>

Trustee] shall provide, and shall cause each Reporting Subcontractor retained
by the Servicer, the Trust Administrator or the [Indenture Trustee], as
applicable, to provide the following information no later than March 15 of
each year in which a Form 10-K is required to be filed on behalf of the Trust
Fund: (i) if such Person's report on assessment of compliance with servicing
criteria described under Section 10.07 or related registered public accounting
firm attestation report described under Section 10.07 identifies any material
instance of noncompliance, notification of such instance of noncompliance and
(ii) if any such Person's report on assessment of compliance with servicing
criteria or related registered public accounting firm attestation report is
not provided to be filed as an exhibit to such Form 10-K, information
detailing the explanation why such report is not included.

         Section 10.05. Sarbanes-Oxley Certification.

         (a) Each Form 10-K shall include a certification (the "Sarbanes-Oxley
Certification") required by Rules 13a-14(d) and 15d-14(d) under the Exchange
Act (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and the rules
and regulations of the Commission promulgated thereunder (including any
interpretations thereof by the Commission's staff)). No later than March 15 of
each year, beginning in 20[ ], the Depositor, the Servicer, the Trust
Administrator and the [Indenture Trustee] shall (unless such person is the
Certifying Person) provide to the Person who signs the Sarbanes-Oxley
Certification (the "Certifying Person") a certification (each, a "Performance
Certification"), in the form attached hereto as Exhibit F-1 (in the case of
the Servicer) and Exhibit F-2 (in the case of the Trust Administrator and the
[Indenture Trustee]), on which the Certifying Person, the entity for which the
Certifying Person acts as an officer, and such entity's officers, directors
and Affiliates (collectively with the Certifying Person, "Certification
Parties") can reasonably rely. The senior officer in charge of the servicing
function of the Servicer shall serve as the Certifying Person on behalf of the
Trust Fund. Neither the Servicer nor the Depositor will request delivery of a
certification under this clause unless the Depositor is required under the
Exchange Act to file an annual report on Form 10-K with respect to the Trust
Fund. In the event that prior to the filing date of the Form 10-K in March of
each year, the Servicer, the Trust Administrator, the [Indenture Trustee] or
the Depositor has actual knowledge of information material to the
Sarbanes-Oxley Certification, the Trust Administrator, the Servicer, the
[Indenture Trustee] or the Depositor, as the case may be, shall promptly
notify the Servicer and the Depositor. The respective parties hereto agree to
cooperate with all reasonable requests made by any Certifying Person or
Certification Party in connection with such Person's attempt to conduct any
due diligence that such Person reasonably believes to be appropriate in order
to allow it to deliver any Sarbanes-Oxley Certification or portion thereof
with respect to the Trust Fund.

         Section 10.06. Form 15 Filing.

                  Prior to January 30 of the first year in which the Depositor
is able to do so under applicable law, the Depositor shall file a Form 15
relating to the automatic suspension of reporting in respect of the Trust Fund
under the Exchange Act.

         Section 10.07. Report on Assessment of Compliance and Attestation.

         (a) On or before March 15 of each calendar year, commencing in 20[ ]:

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

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

                  (3) The Servicer shall cause each Reporting Subcontractor to
         deliver to the Depositor an assessment of compliance and accountant's
         attestation as and when provided in paragraphs (a) and (b) of this
         Section 10.07.

                  (4) Each of the Trust Administrator and the [Indenture
         Trustee] shall cause each Reporting Subcontractor to deliver to the
         Depositor and the Servicer an assessment of compliance and
         accountant's attestation as and when provided in paragraphs (a) and
         (b) of this Section.

                  (5) The Servicer, the Trust Administrator and the [Indenture
         Trustee] shall execute (and the Servicer, the Trust Administrator and
         the [Indenture Trustee] shall cause each Reporting Subcontractor to
         execute) a reliance certificate to enable the Certification Parties
         to rely upon each (i) annual compliance statement provided pursuant
         to Section 4.26, (ii) annual report on assessments of compliance with
         servicing criteria provided pursuant to this Section 10.07 and (iii)
         accountant's report provided pursuant to this Section 10.07 and shall
         include a certification that each such annual compliance statement or
         report discloses any deficiencies or defaults described to the
         registered

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<PAGE>

         public accountants of such Person to enable such accountants to
         render the Notes provided for in this Section 10.07. In the event the
         Servicer, the Trust Administrator or Reporting Subcontractor is
         terminated or resigns during the term of this Agreement, such Person
         shall provide a certification to the Certifying Person pursuant to
         this Section 10.07 with respect to the period of time it was subject
         to this Agreement or provided services with respect to the Trust
         Fund, the Notes or the Mortgage Loans.

         (b) An assessment of compliance provided by a Subcontractor pursuant
to Section 10.07(a)(3) or (4) need not address any elements of the Servicing
Criteria other than those specified by the Servicer, the Trust Administrator
or the [Indenture Trustee], as applicable, pursuant to Section 10.07(a)(1).

         Section 10.08. Use of Subcontractors.

         (a) It shall not be necessary for the Servicer, the Trust
Administrator or the [Indenture Trustee] to seek the consent of the Depositor
or any other party hereto to the utilization of any Subcontractor. The
Servicer, the Trust Administrator or the [Indenture Trustee], as applicable,
shall promptly upon request provide to the Depositor (or any designee of the
Depositor, such as the Servicer or administrator) a written description (in
form and substance satisfactory to the Depositor) of the role and function of
each Subcontractor utilized by such Person, 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 a Reporting Subcontractor, the Servicer, the Trust
Administrator or the [Indenture Trustee], as applicable, shall cause any such
Subcontractor used by such Person for the benefit of the Depositor to comply
with the provisions of Sections 10.07 and 10.09 of this Agreement to the same
extent as if such Subcontractor were the Servicer, the Trust Administrator or
the [Indenture Trustee], as applicable (except with respect to the Servicer's
duties with respect to preparing and filing any Exchange Act Reports or as the
Certifying Person). The Servicer, the Trust Administrator or the [Indenture
Trustee], as applicable, shall be responsible for obtaining from each
Subcontractor and delivering to the Depositor and the Servicer, any assessment
of compliance and attestation required to be delivered by such Subcontractor
under Section 10.07, in each case as and when required to be delivered.

         Section 10.09. Amendments. In the event the parties to this Agreement
desire to further clarify or amend any provision of this Article X this
Agreement shall be amended to reflect the new agreement between the parties
covering matters in this Article X pursuant to Section 9.03, which amendment
shall not require any Opinion of Counsel or Rating Agency confirmations or the
consent of any Noteholder.

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<PAGE>

         If, during the period that the Depositor is required to file Exchange
Act Reports with respect to the Trust Fund, the Servicer is no longer an
Affiliate of the Depositor, the Depositor shall assume the obligations and
responsibilities of the Servicer in this Article [XI] with respect to the
preparation and filing of the Exchange Act Reports and/or acting as the
Certifying Person, if the Depositor has received indemnity from such successor
Servicer satisfactory to the Depositor, and such Servicer has agreed to
provide a Sarbanes-Oxley Certification to the Depositor substantially in the
form of Exhibit K.

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<PAGE>

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

                                   [ ] 200__-[ ], as Issuer

                                   By:    ________________________, not in
                                          its individual capacity but solely
                                          as Owner Trustee

                                   By: __________________________________
                                   Name:
                                   Title:

                                   INDYMAC MBS, INC.,
                                   as Depositor

                                   By: __________________________________
                                   Name:
                                   Title:

                                   ____________________________________, not
                                   in its individual capacity but solely as
                                   Indenture Trustee

                                   By: __________________________________
                                   Name:
                                   Title:

                                   ________________________,
                                   as Trust Administrator and Servicer

                                   By: __________________________________
                                   Name:
                                   Title:

                         Sale and Servicing Agreement

<PAGE>

                                   ______________________________,
                                   as Servicer

                                   By: __________________________________
                                   Name:
                                   Title:

                                   ________________________, as Seller

                                   By: __________________________________
                                   Name:
                                   Title:

With Respect to Article [XI] only

_________________________, as Owner Trustee

By: _____________________
Name:
Title:

                         Sale and Servicing Agreement

<PAGE>

STATE OF                   )
                           : ss.:
COUNTY OF                  )

                  On this ___ day of ___________ 200_, before me, personally
appeared ____________, known to me to be a _______ of ____________________,
one of the corporations that executed the within instrument, and also known to
me to be the person who executed it on behalf of said corporation, and
acknowledged to me that such corporation executed the within instrument.

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

                                        __________________________________
                                        Notary Public

[NOTARIAL SEAL]

                  Notary page to Sale and Servicing Agreement

<PAGE>

STATE OF CALIFORNIA       )
                          : ss.:
COUNTY OF LOS ANGELES     )

                  On the ___ day of ___________ 200_, before me, personally
appeared __________, known to me to be a _________________ of IndyMac MBS,
Inc., one of the corporations that executed the within instrument and also
known to me to be the person who executed it on behalf of said corporation,
and acknowledged to me that such corporation executed the within instrument.

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

                                        __________________________________
                                        Notary Public

[NOTARIAL SEAL]

                  Notary page to Sale and Servicing Agreement

<PAGE>

STATE OF                   )
                           : ss.:
COUNTY OF                  )

                  On the ____ of ___________ 200_, before me, a Notary Public
in and for said State, personally appeared ______________ known to me to be a
_____________ of ____________________________________, one of the corporations
that executed the within instrument and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                        __________________________________
                                        Notary Public

[NOTARIAL SEAL]

                  Notary page to Sale and Servicing Agreement

<PAGE>

STATE OF                   )
                           : ss.:
COUNTY OF                  )

                  On the ____ of ___________ 200_, before me, a Notary Public
in and for said State, personally appeared ______________ known to me to be a
_____________ of ____________________, a national banking association that
executed the within instrument and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                        __________________________________
                                        Notary Public

[NOTARIAL SEAL]

                  Notary page to Sale and Servicing Agreement

<PAGE>

STATE OF                   )
                           : ss.:
COUNTY OF                  )

                  On the ____ of ___________ 200_, before me, a Notary Public
in and for said State, personally appeared ______________ known to me to be a
_____________ of _________________________, one of the corporations that
executed the within instrument and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                        __________________________________
                                        Notary Public

[NOTARIAL SEAL]

                  Notary page to Sale and Servicing Agreement

<PAGE>

STATE OF                   )
                           : ss.:
COUNTY OF                  )

                  On the ____ of ___________ 200_, before me, a Notary Public
in and for said State, personally appeared ______________ known to me to be a
_____________ of ____________________________, one of the corporations that
executed the within instrument and also known to me to be the person who
executed it on behalf of said corporation, and acknowledged to me that such
corporation executed the within instrument.

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

                                        __________________________________
                                        Notary Public

[NOTARIAL SEAL]

                  Notary page to Sale and Servicing Agreement

<PAGE>

                                  EXHIBIT A-1
                                  -----------

                         FORM OF INITIAL CERTIFICATION

                                                      _________________
                                                               Date

[Trust
Administrator]________________________     ____________________________________
_______________________                             _______________________
_______________________                             _______________________
Attention:  __________________                          Attention:  ___________

[IndyMac MBS, Inc.
155 North Lake Avenue
Pasadena, California 91101]

         Re:      Sale and Servicing Agreement (the "Sale and Servicing
                  Agreement") dated as of _______, 200_ by and among [IndyMac
                  MBS, Inc.], as Depositor, ________________________, as
                  Indenture Trustee, ____________________, as Trust
                  Administrator and Servicer, ______ [ ] 200__-[ ], as Issuer
                  and ____________________________, as Seller

Ladies and Gentlemen:

         In accordance with Section 2.02(a) of the Sale and Servicing
Agreement, subject to review of the contents thereof, the Indenture Trustee
(or its custodian), hereby certifies that it has received the documents listed
in Section 2.01(b) of the Sale and Servicing Agreement for each Mortgage File
pertaining to each Mortgage Loan listed on Schedule A to the Sale and
Servicing Agreement, subject to any exceptions noted on Schedule I hereto.

         Capitalized words and phrases used herein and not otherwise defined
herein shall have the respective meanings assigned to them in the Sale and
Servicing Agreement. This certificate is subject in all respects to the terms
of Section 2.02 of the Sale and Servicing Agreement and the Sale and Servicing
Agreement sections cross-referenced therein.

                                        [Indenture Trustee]

                                        By:___________________________________

                                     A-1-1

<PAGE>

                                             Name:
                                             Title:

<PAGE>

                                  EXHIBIT A-2
                                  -----------

                         FORM OF INTERIM CERTIFICATION
                         -----------------------------

                                                             _________________
                                                                  Date

[Trust Administrator]________________________    _____________________________
_______________________                             _______________________
_______________________                             _______________________
Attention:  __________________                      Attention:  ______________

[IndyMac MBS, Inc.
155 North Lake Avenue
Pasadena, California 91101]

         Re:      Sale and Servicing Agreement (the "Sale and Servicing
                  Agreement") dated as of _______, 200_ by and among [IndyMac
                  MBS, Inc.], as Depositor, _________________________, as
                  Indenture Trustee, ____________________, as Trust
                  Administrator and Servicer, ______ [ ] 200__-[ ], as Issuer
                  and ____________________________, as Seller

Ladies and Gentlemen:

         In accordance with Section 2.02(b) of the Sale and Servicing
Agreement, the undersigned, as Indenture Trustee, hereby certifies that as to
each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or listed on Schedule I hereto) it (or its
custodian) has received the applicable documents listed in Section 2.01(b) of
the Sale and Servicing Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed
on Schedule I hereto, it has reviewed the documents identified above and has
determined that each such document appears regular on its face and appears to
relate to the Mortgage Loan identified in such document.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Sale and Servicing Agreement. This
certificate is qualified in all respects by the terms of said Sale and
Servicing Agreement including, but not limited to, Section 2.02(b).

                                          [Indenture Trustee]

                                          By:_______________________________
                                               Name:
                                               Title:

                                    A-2-1

<PAGE>

                                  EXHIBIT A-3
                                  -----------

                          FORM OF FINAL CERTIFICATION
                          ---------------------------

                                                             _________________
                                                                   Date

[Trust Administrator]________________________    ____________________________
_______________________                          _______________________
_______________________                          _______________________
Attention:  __________________                   Attention:  ______________

[IndyMac MBS, Inc.
155 North Lake Avenue
Pasadena, California 91101]

         Re:      Sale and Servicing Agreement (the "Sale and Servicing
                  Agreement") dated as of _______, 200_ by and among [IndyMac
                  MBS, Inc.], as Depositor, _____________________, as
                  Indenture Trustee, ____________________, as Trust
                  Administrator and Servicer, ______ [ ] 200__-[ ], as Issuer
                  and ____________________________, as Seller

Ladies and Gentlemen:

         In accordance with Section 2.02(d) of the Sale and Servicing
Agreement, the undersigned hereby certifies that as to each Mortgage Loan
listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in
full or listed on Schedule I hereto) it (or its custodian) has received the
applicable documents listed in Section 2.01(b) of the Sale and Servicing
Agreement.

         The undersigned hereby certifies that as to each Mortgage Loan
identified on the Mortgage Loan Schedule, other than any Mortgage Loan listed
on Schedule I hereto, it has reviewed the documents listed above and has
determined that each such document appears to be complete and, based on an
examination of such documents, the information set forth in the Mortgage Loan
Schedule is correct.

         Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Sale and Servicing Agreement. This
certificate is qualified in all respects by the terms of said Sale and
Servicing Agreement.

                                            [Indenture Trustee]

                                            By:____________________________
                                                  Name:
                                                  Title:

                                     A-3-1

<PAGE>

                                  EXHIBIT A-4
                                  -----------

                              FORM OF ENDORSEMENT
                              -------------------

         Pay to the order of ____________________________________, as
indenture trustee (the "Indenture Trustee") under the Sale and Servicing
Agreement dated as of _______, 200_ by and among [IndyMac MBS, Inc.], as
Depositor, the Indenture Trustee, ____________________, as Trust Administrator
and Servicer, ______ [ ] 200__-[ ], as Issuer, as Seller, relating to ______ [
] 200__-[ ] Mortgage Backed Notes, Series 200_-__, without recourse.

                                        _________________________________
                                        [current signatory on note]

                                        By:_______________________________
                                             Name:
                                             Title:

                                     A-4-1

<PAGE>

                                   EXHIBIT B
                                   ---------

                                  [Reserved]

                                      B-1

<PAGE>

                                   EXHIBIT C
                                   ---------

                          FORM OF LOST NOTE AFFIDAVIT

         I, _________________________________________, being duly sworn, do
hereby state under oath that:

         1. I am a duly elected ______________________ of
____________________________ (the "Company") and am duly authorized to make
this affidavit.

         2. This affidavit is being delivered in connection with the transfer
of the Mortgage Loan described in Paragraph 3 hereof by the Company pursuant
to the Sale and Servicing Agreement, dated as of _______, 200_, among ______
Mortgage Investment Trust 200_-__, as Issuer, [IndyMac MBS, Inc.], as
Depositor, ____________________, as Servicer and as Trust Administrator,
_________________________, as Servicer, ____________________________, as
Seller, and ____________________________________, as Indenture Trustee,
relating to the [ ] 200__-[ ], Mortgage Backed Notes, Series 200_-__ (the
"Agreement").

         3. The ______________ is the payee under the following described
Mortgage Note ("Mortgage Note") which evidences the obligation of the
borrower(s) to repay the Mortgage Loan:

         Loan Number: __________________________________
         Mortgage Note Date:_____________________________
         Borrower(s): ___________________________________
         Original Payee (if not the Company): ___________
         Original Amount:________________________________
         Mortgage Rate: _________________________________
         Address of Mortgaged Property: _________________
         ________________________________________________

         4. The Company is the lawful owner of the Mortgage Note and has not
cancelled, altered, assigned or hypothecated the Mortgage Note.

         5. A thorough and diligent search for the executed original Mortgage
Note was undertaken and was unsuccessful.

         6. Attached hereto is a true and correct copy of the Mortgage Note.

         7. The Mortgage Note has not been endorsed by the Company in any
manner inconsistent with its transfer of the Mortgage Loan under the Mortgage
Loan Purchase Agreement.

         8. Without limiting the generality of the rights and remedies of the
Indenture Trustee contained in the Agreement, the Company hereby confirms and
agrees that in the event the inability to produce the executed original
Mortgage Note results in a breach of the representations, warranties and
covenants appearing in Section 2 of the Mortgage Loan Purchase

                                      C-1

<PAGE>

Agreement and Section 3.01 of the Agreement, the Company shall repurchase the
Mortgage Loan at the Purchase Price and otherwise in accordance with Section
3.03 of the Agreement. In addition, the Company covenants and agrees to
indemnify the Indenture Trustee and the Trust from and hold them harmless
against any and all losses, liabilities, damages, claims or expenses arising
from the Company's failure to have delivered the Mortgage Note to the
Indenture Trustee, including without limitation any such losses, liabilities,
damages, claims or expenses arising from any action to enforce the
indebtedness evidenced by the Mortgage Note or any claim by any third party
who is the holder of such indebtedness by virtue of possession of the Mortgage
Note.

         9. In the event that the Company locates the executed original
Mortgage Note, it shall promptly provide the Mortgage Note to the Indenture
Trustee.

         10. Capitalized terms used but not otherwise defined herein shall
have the meanings given to them in the Agreement.

Date: _______________________

                                      ______________________________
                                      (signature)

                                      ______________________________
                                      (print name)

                                      ______________________________
                                      (print title)

                                      C-2

<PAGE>

                                   EXHIBIT D
                                   ---------

                        ESCROW ACCOUNT LETTER AGREEMENT

                                                       ______________ __, ____

To:      ______________________

         ______________________

         ______________________
         (the "Depository")

                  As Servicer under the Sale and Servicing Agreement dated as
of _______, 200_, by and among [IndyMac MBS, Inc.], as Depositor, you, as
Indenture Trustee, ____________________, as Trust Administrator and Servicer,
[ ] 200__-[ ], as Issuer, _________________________, as Servicer and
____________________________, as Seller (the "Sale and Servicing Agreement"),
we hereby authorize and request you to establish an account, as an Escrow
Account pursuant to Section 4.02(f) of the Sale and Servicing Agreement,
designated as "_________________________ in trust for
_________________________, as Indenture Trustee for [ ] 200__-[ ]." All
deposits in the account shall be subject to withdrawal therefrom by order
signed by the Servicer. This letter is submitted to you in duplicate. Please
execute and return one original to us.

                                      _________________________
                                            Servicer

                                      By: _________________________________
                                           Name: __________________________
                                           Title: _________________________
                                           Date: __________________________

                                     D-1

<PAGE>

                  The undersigned, as Depository, hereby certifies that the
above described account has been established under Account Number ______, at
the office of the Depository indicated above, and agrees to honor withdrawals
on such account as provided above.

                                      _________________________
                                            Depository

                                      By: _________________________________
                                           Name: __________________________
                                           Title: _________________________
                                           Date: __________________________

                                     D-2

<PAGE>

                                  EXHIBIT E-1
                                  -----------

                       FORM OF MONTHLY REMITTANCE ADVICE

                          [On file with the Servicer]

                                     E-1-1

<PAGE>

                                  EXHIBIT E-2
                                  -----------

               STANDARD LAYOUT FOR MONTHLY DEFAULTED LOAN REPORT

                          [On file with the Servicer]

                                     E-2-1

<PAGE>

                                  EXHIBIT E-3
                                  -----------

                         Form 332 Realized Loss Report
                             --------------------

                            [On file with Servicer]

                                     E-3-1

<PAGE>

                                  EXHIBIT F-1

                       FORM OF PERFORMANCE CERTIFICATION
                                  (Servicer)

                    [On file with the Trust Administrator]

                                     F-1-1

<PAGE>

                                  EXHIBIT F-2

                       FORM OF PERFORMANCE CERTIFICATION
                    (Trust Administrator/Indenture Trustee)

                    [On file with the Trust Administrator]

                                     F-2-1

<PAGE>

                                      G-3

                                   EXHIBIT G

                                    FORM OF
                     SERVICING CRITERIA TO BE ADDRESSED IN
                      ASSESSMENT OF COMPLIANCE STATEMENT

         The assessment of compliance to be delivered by [the Servicer]
[Indenture Trustee] [Trust Administrator] shall address, at a minimum, the
criteria identified as below as "Applicable Servicing Criteria":
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                            Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
<S>                  <C>                                                                   <C>
                       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.
--------------------                                                                       ----------------------
                     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
1122(d)(1)(ii)       such servicing activities.
--------------------                                                                       ----------------------
                     Any requirements in the transaction agreements to maintain a
1122(d)(1)(iii)      back-up servicer for the mortgage loans are maintained.
--------------------                                                                       ----------------------
                     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
1122(d)(1)(iv)       terms of the transaction agreements.
--------------------                                                                       ----------------------
                      Cash Collection and Administration
--------------------                                                                       ----------------------
                     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
1122(d)(2)(i)        days specified in the transaction agreements.
--------------------                                                                       ----------------------
                     Disbursements made via wire transfer on behalf of an obligor or to
1122(d)(2)(ii)       an investor are made only by authorized personnel.
--------------------                                                                       ----------------------
                     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
1122(d)(2)(iii)      approved as specified in the transaction agreements.
--------------------                                                                       ----------------------
                     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
1122(d)(2)(iv)       transaction agreements.
--------------------                                                                       ----------------------
                     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
1122(d)(2)(v)        13k-1(b)(1) of the Securities Exchange Act.
--------------------                                                                       ----------------------
                     Unissued checks are safeguarded so as to prevent unauthorized
1122(d)(2)(vi)       access.
--------------------                                                                       ----------------------
                     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,
1122(d)(2)(vii)      or such other number of days specified in the

                                     G-1
<PAGE>

-----------------------------------------------------------------------------------------------------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                            Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
                     transaction agreements.
--------------------                                                                       ----------------------
                              Investor Remittances and Reporting
--------------------                                                                       ----------------------
                     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 Trust Administrator's records as
                     to the total unpaid principal balance and number of
1122(d)(3)(i)        mortgage loans serviced by the Servicer.
--------------------                                                                       ----------------------
                     Amounts due to investors are allocated and remitted in
                     accordance with timeframes, distribution priority and
1122(d)(3)(ii)       other terms set forth in the transaction agreements.
--------------------                                                                       ----------------------
                     Disbursements made to an investor are posted within two
                     business days to the Servicer's investor records, or such
1122(d)(3)(iii)      other number of days specified in the transaction agreements.
--------------------                                                                       ----------------------
                     Amounts remitted to investors per the investor reports
                     agree with cancelled checks, or other form of payment, or
1122(d)(3)(iv)       custodial bank statements.
--------------------                                                                       ----------------------
                                 Pool Asset Administration
--------------------                                                                       ----------------------
                     Collateral or security on mortgage loans is maintained as required
1122(d)(4)(i)        by the transaction agreements or related mortgage loan documents.
--------------------                                                                       ----------------------
                     Mortgage loan and related documents are safeguarded as required by
1122(d)(4)(ii)       the transaction agreements.
--------------------                                                                       ----------------------
                     Any additions, removals or substitutions to the asset
                     pool are made, reviewed and approved in accordance with
1122(d)(4)(iii)      any conditions or requirements in the transaction agreements.
--------------------                                                                       ----------------------
                     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
1122(d)(4)(iv)       mortgage loan documents.
--------------------                                                                       ----------------------
                     The Servicer's records regarding the mortgage loans agree
                     with the Servicer's records with respect to an obligor's
1122(d)(4)(v)        unpaid principal balance.
--------------------                                                                       ----------------------
                     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
1122(d)(4)(vi)       related pool asset documents.
--------------------                                                                       ----------------------
                     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
1122(d)(4)(vii)      transaction agreements.
--------------------                                                                       ----------------------
                     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
1122(d)(4)(viii)     delinquency is deemed temporary (e.g., illness or unemployment).
--------------------                                                                       ----------------------
                     Adjustments to interest rates or rates of return for
                     mortgage loans with variable rates are computed based on
1122(d)(4)(ix)       the related mortgage loan documents.
--------------------                                                                       ----------------------

                                     G-2
<PAGE>

-----------------------------------------------------------------------------------------------------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                            Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
                     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
1122(d)(4)(x)        agreements.
--------------------                                                                       ----------------------
                     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
1122(d)(4)(xi)       other number of days specified in the transaction agreements.
--------------------                                                                       ----------------------
                     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
1122(d)(4)(xii)      the late payment was due to the obligor's error or omission.
--------------------                                                                       ----------------------
                     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
1122(d)(4)(xiii)     specified in the transaction agreements.
--------------------                                                                       ----------------------
                     Delinquencies, charge-offs and uncollectible accounts are
                     recognized and recorded in accordance with the transaction
1122(d)(4)(xiv)      agreements.
--------------------                                                                       ----------------------
                     Any external enhancement or other support, identified in
                     Item 1114(a)(1) through (3) or Item 1115 of Regulation
1122(d)(4)(xv)       AB, is maintained as set forth in the transaction agreements.
-------------------- --------------------------------------------------------------------- ----------------------

-------------------- --------------------------------------------------------------------- ----------------------
</TABLE>

                                    [NAME OF SERVICER] [NAME OF TRUST
                                    ADMINISTRATOR] [NAME OF INDENTURE TRUSTEE]

                                    Date:    _________________________

                                    By:  ________________________________
                                    Name:
                                    Title:

                                     G-3

<PAGE>

                                      H-1

                                   EXHIBIT H
                               Item 1119 Parties
                            MORTGAGE BACKED NOTES,
                                Series 200_-__

                                                          [Date]

------------------- ------------------------------------------------------
Party               Contact Information
------------------- ------------------------------------------------------

------------------- ------------------------------------------------------

------------------- ------------------------------------------------------

------------------- ------------------------------------------------------

------------------- ------------------------------------------------------

------------------- ------------------------------------------------------

------------------- ------------------------------------------------------

------------------- ------------------------------------------------------

------------------- ------------------------------------------------------

                                     H-1

<PAGE>

                                   EXHIBIT I

                   [FORM OF] [CLASS AF-5B] INSURANCE POLICY

                              [On file with [ ].]

                                      I-1

<PAGE>

                                   EXHIBIT J

                    [FORM OF] SUBSEQUENT TRANSFER AGREEMENT

                            [On file with the [ ].]

                                      J-1

<PAGE>

                                   EXHIBIT K

                    [FORM OF] SARBANES-OXLEY CERTIFICATION
                           (Replacement of Servicer)

                            [On file with the [ ].]

                                      K-1

<PAGE>

                                  SCHEDULE A
                                  ----------
                            MORTGAGE LOAN SCHEDULE

                   [On file with the [                 ].]

                                 Schedule A-1Exhibit 4.1
                                                                   -----------

                                                             EXECUTION VERSION

==============================================================================

                                 CWABS, INC.,
                                   Depositor

                         COUNTRYWIDE HOME LOANS, INC.,
                                    Seller

                               PARK MONACO INC.,
                                    Seller

                               PARK SIENNA LLC,
                                    Seller

                     COUNTRYWIDE HOME LOANS SERVICING LP,
                                Master Servicer

                                      and

                             THE BANK OF NEW YORK,
                                    Trustee

                    --------------------------------------

                        POOLING AND SERVICING AGREEMENT

                          Dated as of January 1, 2006

                    --------------------------------------

                   ASSET-BACKED CERTIFICATES, SERIES 2006-1

<PAGE>

                               Table of Contents

<TABLE>
<CAPTION>
                                                                                          Page
                                                                                          ----

                                               ARTICLE I.
                                              DEFINITIONS

<S>            <C>                                                                        <C>
Section 1.01   Defined Terms.................................................................8
Section 1.02   Certain Interpretive Provisions..............................................55

                                              ARTICLE II.
                      CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES

Section 2.01   Conveyance of Mortgage Loans.................................................55
Section 2.02   Acceptance by Trustee of the Mortgage Loans..................................63
Section 2.03   Representations, Warranties and Covenants of the Master Servicer
               and the Sellers..............................................................68
Section 2.04   Representations and Warranties of the Depositor..............................86
Section 2.05   Delivery of Opinion of Counsel in Connection with Substitutions
               and Repurchases..............................................................87
Section 2.06   Authentication and Delivery of Certificates..................................88
Section 2.07   Covenants of the Master Servicer.............................................88

                                              ARTICLE III.
                             ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

Section 3.01   Master Servicer to Service Mortgage Loans....................................89
Section 3.02   Subservicing; Enforcement of the Obligations of Master Servicer..............90
Section 3.03   Rights of the Depositor, the Sellers, the Certificateholders,
               the NIM Insurer and the Trustee in Respect of the Master Servicer............91
Section 3.04   Trustee to Act as Master Servicer............................................92
Section 3.05   Collection of Mortgage Loan Payments; Certificate Account;
               Distribution Account; Pre-Funding Account; Seller Shortfall
               Interest Requirement.........................................................92
Section 3.06   Collection of Taxes, Assessments and Similar Items; Escrow Accounts..........96
Section 3.07   Access to Certain Documentation and Information Regarding the
               Mortgage Loans...............................................................96
Section 3.08   Permitted Withdrawals from the Certificate Account, Distribution
               Account, Carryover Reserve Fund and the Principal Reserve Fund...............97
Section 3.09   [Reserved]...................................................................99
Section 3.10   Maintenance of Hazard Insurance..............................................99
Section 3.11   Enforcement of Due-On-Sale Clauses; Assumption Agreements...................100
Section 3.12   Realization Upon Defaulted Mortgage Loans; Determination of Excess
               Proceeds and Realized Losses; Repurchase of Certain Mortgage Loans..........101
Section 3.13   Trustee to Cooperate; Release of Mortgage Files.............................105
Section 3.14   Documents, Records and Funds in Possession of Master Servicer to be
               Held for the Trustee........................................................106

                                              i

<PAGE>

Section 3.15   Servicing Compensation......................................................107
Section 3.16   Access to Certain Documentation.............................................107
Section 3.17   Annual Statement as to Compliance...........................................107
Section 3.18   The Corridor Contract.......................................................108
Section 3.19   Prepayment Charges..........................................................109
Section 3.20   Swap Contract...............................................................110

                                              ARTICLE IV.
                           DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

Section 4.01   Advances; Remittance Reports................................................111
Section 4.02   Reduction of Servicing Compensation in Connection with Prepayment
               Interest Shortfalls.........................................................113
Section 4.03   [Reserved]..................................................................113
Section 4.04   Distributions...............................................................113
Section 4.05   Monthly Statements to Certificateholders....................................122
Section 4.06   [Reserved]..................................................................123
Section 4.07   Carryover Reserve Fund......................................................123
Section 4.08   [Reserved]..................................................................124
Section 4.09   Swap Trust and Swap Account.................................................124

                                               ARTICLE V.
                                            THE CERTIFICATES

Section 5.01   The Certificates............................................................125
Section 5.02   Certificate Register; Registration of Transfer and Exchange of
               Certificates................................................................126
Section 5.03   Mutilated, Destroyed, Lost or Stolen Certificates...........................131
Section 5.04   Persons Deemed Owners.......................................................131
Section 5.05   Access to List of Certificateholders' Names and Addresses...................131
Section 5.06   Book-Entry Certificates.....................................................132
Section 5.07   Notices to Depository.......................................................133
Section 5.08   Definitive Certificates.....................................................133
Section 5.09   Maintenance of Office or Agency.............................................133

                                              ARTICLE VI.
                           THE DEPOSITOR, THE MASTER SERVICER AND THE SELLERS

Section 6.01   Respective Liabilities of the Depositor, the Master Servicer and
               the Sellers.................................................................134
Section 6.02   Merger or Consolidation of the Depositor, the Master Servicer
               or the Sellers..............................................................134
Section 6.03   Limitation on Liability of the Depositor, the Sellers, the Master
               Servicer, the NIM Insurer and Others........................................134
Section 6.04   Limitation on Resignation of Master Servicer................................135
Section 6.05   Errors and Omissions Insurance; Fidelity Bonds..............................136

                                              ii

<PAGE>

                                              ARTICLE VII.
                                DEFAULT; TERMINATION OF MASTER SERVICER

Section 7.01   Events of Default...........................................................136
Section 7.02   Trustee to Act; Appointment of Successor....................................138
Section 7.03   Notification to Certificateholders..........................................140

                                             ARTICLE VIII.
                                         CONCERNING THE TRUSTEE

Section 8.01   Duties of Trustee...........................................................140
Section 8.02   Certain Matters Affecting the Trustee.......................................141
Section 8.03   Trustee Not Liable for Mortgage Loans.......................................143
Section 8.04   Trustee May Own Certificates................................................143
Section 8.05   Master Servicer to Pay Trustee's Fees and Expenses..........................143
Section 8.06   Eligibility Requirements for Trustee........................................144
Section 8.07   Resignation and Removal of Trustee..........................................144
Section 8.08   Successor Trustee...........................................................145
Section 8.09   Merger or Consolidation of Trustee..........................................146
Section 8.10   Appointment of Co-Trustee or Separate Trustee...............................146
Section 8.11   Tax Matters.................................................................148
Section 8.12   Access to Records of the Trustee............................................150
Section 8.13   Suits for Enforcement.......................................................151

                                              ARTICLE IX.
                                              TERMINATION

Section 9.01   Termination upon Liquidation or Repurchase of all Mortgage Loans............151
Section 9.02   Final Distribution on the Certificates......................................152
Section 9.03   Additional Termination Requirements.........................................153

                                               ARTICLE X.
                                        MISCELLANEOUS PROVISIONS

Section 10.01  Amendment...................................................................154
Section 10.02  Recordation of Agreement; Counterparts......................................156
Section 10.03  Governing Law...............................................................156
Section 10.04  Intention of Parties........................................................156
Section 10.05  Notices.....................................................................157
Section 10.06  Severability of Provisions..................................................158
Section 10.07  Assignment..................................................................158
Section 10.08  Limitation on Rights of Certificateholders..................................159
Section 10.09  Inspection and Audit Rights.................................................159
Section 10.10  Certificates Nonassessable and Fully Paid...................................160
Section 10.11  Rights of NIM Insurer.......................................................160

                                             iii

<PAGE>

                                              ARTICLE XI.
                                         EXCHANGE ACT REPORTING

Section 11.01  Filing Obligations..........................................................162
Section 11.02  Form 10-D Filings...........................................................162
Section 11.03  Form 8-K Filings............................................................163
Section 11.04  Form 10-K Filings...........................................................163
Section 11.05  Sarbanes-Oxley Certification................................................164
Section 11.06  Form 15 Filing..............................................................165
Section 11.07  Report on Assessment of Compliance and Attestation..........................165
Section 11.08  Use of Subservicers and Subcontractors......................................166
Section 11.09  Amendments..................................................................167
</TABLE>

Exhibits
--------

EXHIBIT A            Forms of Certificates
    EXHIBIT A-1      Form of Class AF-1 Certificate
    EXHIBIT A-2      Form of Class AF-2 Certificate
    EXHIBIT A-3      Form of Class AF-3 Certificate
    EXHIBIT A-4      Form of Class AF-4 Certificate
    EXHIBIT A-5      Form of Class AF-5 Certificate
    EXHIBIT A-6      Form of Class AF-6 Certificate
    EXHIBIT A-7      Form of Class MF-1 Certificate
    EXHIBIT A-8      Form of Class MF-2 Certificate
    EXHIBIT A-9      Form of Class MF-3 Certificate
    EXHIBIT A-10     Form of Class MF-4 Certificate
    EXHIBIT A-11     Form of Class MF-5 Certificate
    EXHIBIT A-12     Form of Class MF-6 Certificate
    EXHIBIT A-13     Form of Class MF-7 Certificate
    EXHIBIT A-14     Form of Class MF-8 Certificate
    EXHIBIT A-15     Form of Class BF Certificate
    EXHIBIT A-16     Form of Class AV-1 Certificate
    EXHIBIT A-17     Form of Class AV-2 Certificate
    EXHIBIT A-18     Form of Class AV-3 Certificate
    EXHIBIT A-19     Form of Class MV-1 Certificate
    EXHIBIT A-20     Form of Class MV-2 Certificate
    EXHIBIT A-21     Form of Class MV-3 Certificate
    EXHIBIT A-22     Form of Class MV-4 Certificate
    EXHIBIT A-23     Form of Class MV-5 Certificate
    EXHIBIT A-24     Form of Class MV-6 Certificate
    EXHIBIT A-25     Form of Class MV-7 Certificate
    EXHIBIT A-26     Form of Class MV-8 Certificate
    EXHIBIT A-27     Form of Class BV Certificate
EXHIBIT B            Forms of Class P Certificates
    EXHIBIT B-1      Form of Class PF Certificate
    EXHIBIT B-2      Form of Class PV Certificate

                                      iv

<PAGE>

<TABLE>
<CAPTION>
<S>                 <C>
EXHIBIT C            Forms of Class C Certificates
    EXHIBIT C-1      Form of Class CF Certificate
    EXHIBIT C-2      Form of Class CV Certificate
EXHIBIT D            Form of Class A-R Certificate
EXHIBIT E            Form of Tax Matters Person Certificate
EXHIBIT F            Mortgage Loan Schedule
    EXHIBIT F-1      List of Mortgage Loans
    EXHIBIT F-2      Mortgage Loans for which All or a Portion
                         of a Related Mortgage File is not Delivered
                         to the Trustee on or prior to the Closing
                         Date
EXHIBIT G            Forms of Certification of Trustee
    EXHIBIT G-1      Form of Initial Certification of Trustee (Initial Mortgage Loans)
    EXHIBIT G-2      Form of Interim Certification of Trustee
    EXHIBIT G-3      Form of Delay Delivery Certification
    EXHIBIT G-4      Form of Initial Certification of Trustee (Subsequent Mortgage Loans)
EXHIBIT H            Form of Final Certification of Trustee
EXHIBIT I            Transfer Affidavit for Class A-R Certificates
EXHIBIT J-1          Form of Transferor Certificate for Class A-R Certificates
EXHIBIT J-2          Form of Transferor Certificate for Private Certificates
EXHIBIT K            Form of Investment Letter (Non-Rule 144A)
EXHIBIT L            Form of Rule 144A Letter
EXHIBIT M            Form of Request for Document Release
EXHIBIT N            Form of Request for File Release
EXHIBIT O            Copy of Depository Agreement
EXHIBIT P            Form of Subsequent Transfer Agreement
EXHIBIT Q            Form of Class AF-1 Corridor Contract
EXHIBIT R            [Reserved].
EXHIBIT S-1          Form of Corridor Contract Assignment Agreement
EXHIBIT S-2          Form of Corridor Contract Administration Agreement
EXHIBIT T            Officer's Certificate with respect to Prepayments
EXHIBIT U            Form of Swap Contract
EXHIBIT V-1          Form of Swap Contract Assignment Agreement
EXHIBIT V-2          Form of Swap Contract Administration Agreement
EXHIBIT W            Form of Monthly Statement
EXHIBIT X-1          Form of Performance Certification (Subservicer)
EXHIBIT X-2          Form of Performance Certification (Trustee)
EXHIBIT Y            Form of Servicing Criteria to be Addressed in Assessment of Compliance Statement
EXHIBIT Z            List of Item 1119 Parties
EXHIBIT AA           Form of Sarbanes-Oxley certification (Replacement Master Servicer)
SCHEDULE I           Prepayment Charge Schedule and Prepayment Charge Summary
SCHEDULE II          Collateral Schedule
</TABLE>

                                              v

          POOLING AND SERVICING AGREEMENT, dated as of January 1, 2006, by and
among CWABS, INC., a Delaware corporation, as depositor (the "Depositor"),
COUNTRYWIDE HOME LOANS, INC., a New York corporation, as seller ("CHL" or a
"Seller"), PARK MONACO INC., a Delaware corporation, as a seller ("Park
Monaco" or a "Seller"), PARK SIENNA LLC, a Delaware limited liability company,
as a seller ("Park Sienna" or a "Seller", and together with CHL and Park
Monaco, the "Sellers"), COUNTRYWIDE HOME LOANS SERVICING LP, a Texas limited
partnership, as master servicer (the "Master Servicer"), and THE BANK OF NEW
YORK, a New York banking corporation, 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. The Trust Fund (excluding the
Carryover Reserve Fund, the assets held in the Pre-Funding Account and the
Trust Fund's rights with respect to payments received under the Corridor
Contract) for federal income tax purposes will consist of three REMICs (the
"Interest Shortfall REMIC," the "Expanding Strip REMIC" and the "Master
REMIC"). Each Certificate, other than the Class A-R Certificates, will
represent ownership of one or more regular interests in the Master REMIC for
purposes of the REMIC Provisions. The Class A-R Certificate represents
ownership of the sole class of residual interest in the Interest Shortfall
REMIC, the Expanding Strip REMIC and the Master REMIC. The Master REMIC will
hold as assets the several classes of uncertificated Expanding Strip REMIC
Interests. Each Expanding Strip REMIC Interest (other than the ES-R Interest)
is hereby designated as a regular interest in the Expanding Strip REMIC. The
Expanding Strip REMIC will hold as assets the several classes of the Interest
Shortfall REMIC Interests (other than the IS-R Interest). Each Interest
Shortfall REMIC Interest (other than the IS-R Interest) is hereby designated
as a regular interest in the Interest Shortfall REMIC. The Interest Shortfall
REMIC will hold as assets all property of the Trust Fund (excluding the
Carryover Reserve Fund, the assets held in the Pre-Funding Account and the
Trust Fund's rights with respect to payments received under the Corridor
Contract). The latest possible maturity date of all REMIC regular interests
created in this Agreement shall be the Latest Possible Maturity Date.

          None of the REMICs described herein shall hold any interest in the
Swap Trust, Swap Contract or Swap Account.

      The Interest Shortfall REMIC:

          The Interest Shortfall REMIC Interests will have the principal
balances, pass-through rates and Corresponding Loan Groups as set forth below.

<TABLE>
<CAPTION>
                                               Initial                           Corresponding
Interest Shortfall REMIC Interests             Balance       Pass-Through Rate   Loan Group(s)
----------------------------------             -------       -----------------   -------------
<S>                                             <C>                 <C>               <C>
IS-1-I................................           (1)                (5)                1
IS-1-S................................           (2)                (6)                1
IS-2-I................................           (1)                (5)                2
IS-2-S................................           (2)                (6)                2
IS-XF.................................           (3)                (7)                1
IS-XV.................................           (3)                (7)                2
IS-PF.................................          $100                (8)               N/A
IS-PV.................................          $100                (9)               N/A
IS-R..................................           (4)                (4)               N/A
</TABLE>

---------------

(1)     The principal balance of each Interest Shortfall REMIC Interest having
        an "I" designation is the principal balance of all the Initial
        Mortgage Loans in the Corresponding Loan Group.

(2)     The principal balance of each Interest Shortfall REMIC Interest having
        an "S" designation is the principal balance of all the Subsequent
        Mortgage Loans in the Corresponding Loan Group.

(3)     This Interest Shortfall REMIC Interest pays no principal.

(4)     The IS-R Interest is the sole class of residual interest in the
        Interest Shortfall REMIC. It has no principal balance and pays no
        principal or interest.

(5)     The interest rate for this Interest Shortfall REMIC Interest with
        respect to any Distribution Date (and the related Accrual Period)
        through the Distribution Date in April 2006 is a per annum rate equal
        to the weighted average of the Adjusted Net Mortgage Rates of the
        Initial Mortgage Loans in the Corresponding Loan Group. For any
        Distribution Date (and the related Accrual Period) following the
        Distribution Date in April 2006, the interest rate for this Interest
        Shortfall REMIC Interest is a per annum rate equal to the weighted
        average of the Adjusted Net Mortgage Rates of all the Mortgage Loans
        in the Corresponding Loan Group.

(6)     The interest rate for this Interest Shortfall REMIC Interest with
        respect to any Distribution Date (and the related Accrual Period)
        through the Distribution Date in April 2006 is a per annum rate equal
        to 0.00%. For any Distribution Date (and the related Accrual Period)
        following the Distribution Date in April 2006, the interest rate for
        this Interest Shortfall REMIC Interest is a per annum rate equal to
        the weighted average of the Adjusted Net Mortgage Rates of all the
        Mortgage Loans in the Corresponding Loan Group.

(7)     For any Distribution Date (and the related Accrual Period) through the
        Distribution Date in April 2006, this Interest Shortfall REMIC
        Interest is entitled to all the interest payable

                                      2
<PAGE>

        with respect to the Subsequent Mortgage Loans in the Corresponding
        Loan Group (or Groups). For any Distribution Date (and the related
        Accrual Period) following the Distribution Date in April 2006, the
        interest rate for this Interest Shortfall REMIC Interest is a per
        annum rate equal to 0.00%.

(8)     The IS-PF Interest is entitled to all Prepayment Charges collected
        with respect to the Mortgage Loans in Loan Group 1. It pays no
        interest.

(9)     The IS-PV Interest is entitled to all Prepayment Charges collected
        with respect to the Mortgage Loans in Loan Group 2. It pays no
        interest.

        On each Distribution Date, the Interest Funds and the Principal
Distribution Amount of the Corresponding Loan Groups shall be distributed with
respect to the Interest Shortfall REMIC Interests in the following manner:

        (1) Interest. Interest is to be distributed with respect to each
Interest Shortfall REMIC Interest at the rate, or according to the formulas,
described above.

        (2) Principal. For any Distribution Date (and the related Accrual
Period) through the Distribution Date in April 2006, the Principal
Distribution Amount with respect to the Initial Mortgage Loans in a Loan Group
shall be allocated to its corresponding "I" Interest Shortfall REMIC
Interests, and the Principal Distribution Amount with respect to the
Subsequent Mortgage Loans in a Loan Group shall be allocated to its
corresponding "S" Interest Shortfall REMIC Interests. For any Distribution
Date (and the related Accrual Period) after the Distribution Date in April
2006, the Principal Distribution Amount with respect to all Mortgage Loans in
a Loan Group shall be allocated in proportion to its corresponding Interest
Shortfall REMIC Interests.

        Expanding Strip REMIC

The Expanding Strip REMIC Regular Interests will have the principal balances,
pass-through rates and Corresponding Classes of Certificates as set forth in
the following table:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
 Expanding Strip REMIC      Initial Principal          Pass-Through        Corresponding Class
       Interests                 Balance                   Rate              of Certificates
-------------------------------------------------------------------------------------------------
<S>                                <C>                     <C>                     <C>
ES-AF-1                            (1)                     (2)                     AF-1
-------------------------------------------------------------------------------------------------
ES-AF-2                            (1)                     (2)                     AF-2
-------------------------------------------------------------------------------------------------
ES-AF-3                            (1)                     (2)                     AF-3
-------------------------------------------------------------------------------------------------
ES-AF-4                            (1)                     (2)                     AF-4
-------------------------------------------------------------------------------------------------
ES-AF-5                            (1)                     (2)                     AF-5
-------------------------------------------------------------------------------------------------
ES-AF-6                            (1)                     (2)                     AF-6
-------------------------------------------------------------------------------------------------
ES-MF-1                            (1)                     (2)                     MF-1
-------------------------------------------------------------------------------------------------
ES-MF-2                            (1)                     (2)                     MF-2
-------------------------------------------------------------------------------------------------
ES-MF-3                            (1)                     (2)                     MF-3
-------------------------------------------------------------------------------------------------
ES-MF-4                            (1)                     (2)                     MF-4
-------------------------------------------------------------------------------------------------
ES-MF-5                            (1)                     (2)                     MF-5
-------------------------------------------------------------------------------------------------
ES-MF-6                            (1)                     (2)                     MF-6
-------------------------------------------------------------------------------------------------

                                      3
<PAGE>

<CAPTION>
-------------------------------------------------------------------------------------------------
 Expanding Strip REMIC      Initial Principal          Pass-Through        Corresponding Class
       Interests                 Balance                   Rate              of Certificates
-------------------------------------------------------------------------------------------------
<S>                                <C>                     <C>                     <C>
ES-MF-7                            (1)                     (2)                     MF-7
-------------------------------------------------------------------------------------------------
ES-MF-8                            (1)                     (2)                     MF-8
-------------------------------------------------------------------------------------------------
ES-BF                              (1)                     (2)                      BF
-------------------------------------------------------------------------------------------------
ES-PF                              $100                    (3)                      PF
-------------------------------------------------------------------------------------------------
ES-F-Accrual                       (1)                     (2)                     N/A
-------------------------------------------------------------------------------------------------
ES-AV-1                            (4)                     (5)                     AV-1
-------------------------------------------------------------------------------------------------
ES-AV-2                            (4)                     (5)                     AV-2
-------------------------------------------------------------------------------------------------
ES-AV-3                            (4)                     (5)                     AV-3
-------------------------------------------------------------------------------------------------
ES-MV-1                            (4)                     (5)                     MV-1
-------------------------------------------------------------------------------------------------
ES-MV-2                            (4)                     (5)                     MV-2
-------------------------------------------------------------------------------------------------
ES-MV-3                            (4)                     (5)                     MV-3
-------------------------------------------------------------------------------------------------
ES-MV-4                            (4)                     (5)                     MV-4
-------------------------------------------------------------------------------------------------
ES-MV-5                            (4)                     (5)                     MV-5
-------------------------------------------------------------------------------------------------
ES-MV-6                            (4)                     (5)                     MV-6
-------------------------------------------------------------------------------------------------
ES-MV-7                            (4)                     (5)                     MV-7
-------------------------------------------------------------------------------------------------
ES-MV-8                            (4)                     (5)                     MV-8
-------------------------------------------------------------------------------------------------
ES-BV                              (4)                     (5)                      BV
-------------------------------------------------------------------------------------------------
ES-$100                            $100                    (6)                     A-R
-------------------------------------------------------------------------------------------------
ES-CV                              (4)                     (5)                      CV
-------------------------------------------------------------------------------------------------
ES-PV                              $100                    (7)                      PV
-------------------------------------------------------------------------------------------------
ES-R                               (8)                     (8)                     N/A
-------------------------------------------------------------------------------------------------
ES-XF                              (9)                     (10)                     CF
-------------------------------------------------------------------------------------------------
ES-XV                              (9)                     (11)                     CV
-------------------------------------------------------------------------------------------------
</TABLE>

(1) This Expanding Strip REMIC Interest has a principal balance that is
initially equal to 50% of its Corresponding Certificate Class issued by the
Master REMIC. Principal payments, both scheduled and prepaid, Realized Losses,
Subsequent Recoveries and interest accruing on the ES-F-Accrual Interest will
be allocated to this class to maintain its size relative to its Corresponding
Certificate Class (that is, 50%) with any excess payments of principal,
Realized Losses and Subsequent Recoveries being allocated to the ES-F-Accrual
Interest in such manner as to cause the principal balance of the ES-F-Accrual
Interest to have a principal balance equal to (a) 50% of the Loan Group 1
principal balance plus (b) 50% of the Fixed Rate Overcollateralized Amount for
such Distribution Date.

(2) The pass-through rate with respect to any Distribution Date (and the
related Accrual Period) for this Expanding Strip REMIC Interest is a per annum
rate equal to the weighted average of the pass-through rates of the IS-1-I and
IS-1-S Interests as of the first day of the related Due Period (after giving
effect to Principal Prepayments received during the Prepayment Period that
ends during such Due Period) (the "Loan Group 1 Tax Net Rate Cap").

(3) The ES-PF Interest is entitled to all amounts collected with respect to
the IS-PF Interest. It pays no interest.

                                      4
<PAGE>

(4)This Expanding Strip REMIC Interest has a principal balance that is
initially equal to 100% of its Corresponding Certificate Class issued by the
Master REMIC. Principal payments, both scheduled and prepaid, Realized Losses
and Subsequent Recoveries attributable to the Interest Shortfall REMIC
Interests corresponding to Loan Group 2 and held by the Expanding Strip REMIC
will be allocated to this class to maintain its size relative to its
Corresponding Certificate Class.

(5) The pass-through rate with respect to any Distribution Date (and the
related Accrual Period) for this Expanding Strip REMIC Interest is a per annum
rate equal to the weighted average of the pass-through rates of the IS-2-I and
IS-2-S Interests as of the first day of the related Due Period (after giving
effect to Principal Prepayments received during the Prepayment Period that
ends during such Due Period), adjusted to an effective rate reflecting the
calculation of interest on the basis of the actual number of days elapsed
during the related Accrual Period and a 360-day year (the "Loan Group 2 Tax
Net Rate Cap").

(6) This Expanding Strip REMIC Interest pays no interest.

(7) The ES-PV Interest is entitled to all amounts collected with respect to
the IS-PV Interest. It pays no interest.

(8) The ES-R Interest is the sole class of residual interest in Expanding
Strip REMIC. It has no principal balance and pays no principal or interest.

(9) This Expanding Strip REMIC Interest pays no principal.

(10) This Expanding Strip REMIC Interest is entitled to all amounts payable
with respect to the IS-XF Interest.

(11) This Expanding Strip REMIC Interest is entitled to all amounts payable
with respect to the IS-XV Interest.

        On each Distribution Date, the Interest Funds and the Principal
Distribution Amount payable with respect to the Interest Shortfall REMIC
Interests shall be payable with respect to the Expanding Strip REMIC Interests
in the following manner:

        (1) Interest. Interest is to be distributed with respect to each
Expanding Strip REMIC Interest at the rate, or according to the formulas,
described above.

        (2) Principal. Principal Distribution Amounts shall be allocated among
the Expanding Strip REMIC Interests as described above.

               The following table specifies the class designation, interest
rate, and principal amount for each class of Master REMIC Interest:

                                 Original Certificate
Class                            Principal Balance       Pass-Through Rate
------------------------------ ------------------------ --------------------
Class AF-1 ...................      $ 147,232,000             (1)

                                      5
<PAGE>

Class AF-2 ...................      $  22,857,000             (1)
Class AF-3 ...................      $  90,995,000             (1)
Class AF-4 ...................      $  21,633,000             (1)
Class AF-5 ...................      $  38,617,000             (1)
Class AF-6 ...................      $  44,200,000             (1)
Class MF-1 ...................      $  13,260,000             (1)
Class MF-2 ...................      $  12,155,000             (1)
Class MF-3 ...................      $   7,293,000             (1)
Class MF-4 ...................      $   6,409,000             (1)
Class MF-5 ...................      $   6,188,000             (1)
Class MF-6 ...................      $   5,525,000             (1)
Class MF-7 ...................      $   5,304,000             (1)
Class MF-8 ...................      $   4,641,000             (1)
Class BF .....................      $   4,420,000             (1)
Class AV-1 ...................      $ 139,560,000             (1)
Class AV-2 ...................      $ 115,712,000             (1)
Class AV-3 ...................      $  25,042,000             (1)
Class MV-1 ...................      $  14,320,000             (1)
Class MV-2 ...................      $  13,067,000             (1)
Class MV-3 ...................      $   7,518,000             (1)
Class MV-4 ...................      $   6,802,000             (1)
Class MV-5 ...................      $   6,802,000             (1)
Class MV-6 ...................      $   5,907,000             (1)
Class MV-7 ...................      $   5,549,000             (1)
Class MV-8 ...................      $   5,012,000             (1)
Class BV .....................      $   3,759,000             (1)
Class CF .....................                 (2)            (3)
Class CV .....................                 (2)            (4)
Class PF .....................      $         100             (5)
Class PV .....................      $         100             (5)
Class A-R ....................      $         100             (6)

(1)  The Certificates will accrue interest at the related Pass-Through Rates
     identified in this Agreement. For federal income tax purposes, including
     the computation of the Class CF Distributable Amount and the Class CV
     Distributable Amount, the Net Rate Cap for the Class AF, Class MF and
     Class BF Certificates will be the Loan Group 1 Tax Net Rate Cap and the
     Net Rate Cap for the Class AV, Class MV and Class BV Certificates will be
     the Loan Group 2 Tax Net Rate Cap.
(2)  For federal income tax purposes, the Class CF and Class CV Certificates
     will be treated as having Certificate Principal Balances equal to the
     Fixed Rate Overcollateralized Amount and Adjustable Rate
     Overcollateralized Amount, respectively.
(3)  For each Interest Accrual Period the Class CF Certificates are entitled
     to an amount (the "Class CF Distributable Amount") equal to the sum of
     (a) the interest payable on the ES-XF Interests and (b) a specified
     portion of the interest payable on the Expanding Strip REMIC Regular
     Interests having an "F" designation in the column entitled "Expanding
     Strip REMIC Interests" (other than the ES-PF and ES-XF Interests) equal
     to the excess of

                                      6
<PAGE>

     the Loan Group 1 Tax Net Rate Cap over the product of two and the
     weighted average interest rate of the Expanding Strip REMIC Regular
     Interests having an "F" designation in the column entitled "Expanding
     Strip REMIC Interests" (other than the ES-PF and ES-XF Interests) with
     each such Class other than the ES-F-Accrual Interest, subject to a cap
     and a floor equal to the Pass-Through Rate of the Corresponding Master
     REMIC Class and the ES-F-Accrual Interest subject to a cap of 0.00%. The
     Pass-Through Rate of the Class CF Certificates shall be a rate sufficient
     to entitle it to an amount equal to all interest accrued on the Interest
     Shortfall REMIC Group 1 "I" and "S" Interests less the interest accrued
     on the other F Class interests issued by the Master REMIC. The Class CF
     Distributable Amount for any Distribution Date is payable from current
     interest on the Group 1 Mortgage Loans and from any Principal Remittance
     Amount for Loan Group 1 not distributed to the Class AF, Class MF and
     Class BF Certificates due to a decrease in the Fixed Rate
     Overcollateralization Target Amount with respect to any Distribution
     Date.
(4)  For each Interest Accrual Period the Class CV Certificates are entitled
     to an amount (the "Class CV Distributable Amount") equal to the sum of
     (a) the interest payable on the ES-XV Interests, (b) the interest payable
     in the ES-CV Interest and (c) a specified portion of the interest payable
     on the Expanding Strip REMIC Regular Interests having a "V" designation
     in the column entitled "Expanding Strip REMIC Interests" (other than the
     ES-CV, ES-PV and ES-XV Interests) equal to the excess of the Loan Group 2
     Tax Net Rate Cap over the weighted average interest rate of the Expanding
     Strip REMIC Regular Interests having a "V" designation in the column
     entitled "Expanding Strip REMIC Interests" (other than the ES-PV and
     ES-XV Interests) with each such Class subject to a cap and a floor equal
     to the Pass-Through Rate of the Corresponding Master REMIC Class. The
     Pass-Through Rate of the Class CV Certificates shall be a rate sufficient
     to entitle it to an amount equal to all interest accrued on the Interest
     Shortfall REMIC Group 2 "I" and "S" Interests less the interest accrued
     on the other V Class interests issued by the Master REMIC. The Class CV
     Distributable Amount for any Distribution Date is payable from current
     interest on the Group 2 Mortgage Loans and from any Principal Remittance
     Amount for Loan Group 2 not distributed to the Class AV, Class MV and
     Class BV Certificates due to a decrease in the Adjustable Rate
     Overcollateralization Target Amount with respect to any Distribution
     Date.
(5)  For each Distribution Date the Class PF and Class PV Certificates are
     entitled to all Prepayment Charges distributed with respect to the ES-PF
     and ES-PV Interests, respectively.
(6)  The Class A-R Certificates represent the sole class of residual interest
     in each REMIC created hereunder. The Class A-R Certificates are not
     entitled to distributions of interest.

The foregoing REMIC structure is intended to cause all of the cash from the
Mortgage Loans to flow through to the Master REMIC as cash flow on a REMIC
regular interest, without creating any shortfall--actual or potential (other
than for credit losses)-- to any REMIC regular interest. It is not intended
that the Class A-R Certificates be entitled to any cash flows pursuant to this
Agreement except as provided in Section 3.08(a) hereunder, (that is, its
entitlement to $100).

                                      7
<PAGE>

                                  ARTICLE I.
                                  DEFINITIONS

          Section 1.01 Defined Terms.

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

          Accrual Period: With respect to any Distribution Date and each Class
of Adjustable Rate Certificates, the period commencing on the immediately
preceding Distribution Date (or, in the case of the first Distribution Date,
the Closing Date) and ending on the day immediately preceding such
Distribution Date. With respect to any Distribution Date and each Class of
Fixed Rate Certificates and the Class C Certificates, the calendar month
preceding the month in which such Distribution Date occurs. All calculations
of interest on the Adjustable Rate Certificates will be made on the basis of
the actual number of days elapsed in the related Accrual Period and on a
360-day year. All calculations of interest on the Fixed Rate Certificates and
Class C Certificates will be made on the basis of a 360-day year consisting of
twelve 30-day months.

          Additional Designated Information: As defined in Section 11.02.

          Adjustable Rate Certificates: The Class AF-1 Certificates, the Class
AV Certificates and the Adjustable Rate Subordinate Certificates.

          Adjustable Rate Cumulative Loss Trigger Event: With respect to any
Distribution Date on or after the Adjustable Rate Stepdown Date, if (x) the
aggregate amount of Realized Losses on the Mortgage Loans in Loan Group 2 from
the Cut-off Date for each such Mortgage Loan to (and including) the last day
of the related Due Period (reduced by the aggregate amount of any Subsequent
Recoveries related to the Mortgage Loans in Loan Group 2 received through the
last day of that Due Period) exceeds (y) the applicable percentage, for such
Distribution Date, of the sum of the aggregate Cut-off Date Principal Balance
of the Initial Mortgage Loans in Loan Group 2 and the Group 2 Pre-Funded
Amount, as set forth below:

Distribution Date                     Percentage
-----------------                     ----------

February 2008 -- January 2009........ 1.75% with respect to February
                                      2008, plus an additional 1/12th of
                                      2.00% for each month thereafter
                                      through January 2009
February 2009 -- January 2010........ 3.75% with respect to February
                                      2009, plus an additional 1/12th of
                                      1.25% for each month thereafter
                                      through January 2010
February 2010 -- January 2011........ 5.00% with respect to February
                                      2010, plus an additional 1/12th of
                                      1.00% for each month thereafter
                                      through January 2011

                                      8
<PAGE>

Distribution Date                     Percentage
-----------------                     ----------

February 2011 -- January 2012........ 6.00% with respect to February
                                      2011, plus an additional 1/12th of
                                      0.50% for each month thereafter
                                      through January 2012
February 2012 and thereafter......... 6.50%

          Adjustable Rate Delinquency Trigger Event: With respect to any
Distribution Date on or after the Adjustable Rate Stepdown Date, if the
Rolling Sixty-Day Delinquency Rate for Outstanding Mortgage Loans in Loan
Group 2 equals or exceeds the product of (x) the Adjustable Rate Senior
Enhancement Percentage for such Distribution Date and (y) the applicable
percentage listed below for the most senior Class of outstanding Class AV
Certificates and Adjustable Rate Subordinate Certificates:

                   Class                      Percentage

             Class AV ....................     36.75%
             Class MV-1 ..................     45.06%
             Class MV-2 ..................     56.76%
             Class MV-3 ..................     66.73%
             Class MV-4 ..................     79.35%
             Class MV-5 ..................     97.85%
             Class MV-6 ..................    122.69%
             Class MV-7 ..................    161.11%
             Class MV-8 ..................    224.64%
             Class BV ....................    318.99%

          Adjustable Rate Excess Overcollateralization Amount: With respect to
any Distribution Date, an amount equal to the excess, if any, of the
Adjustable Rate Overcollateralized Amount for such Distribution Date over the
Adjustable Rate Overcollateralization Target Amount for such Distribution
Date.

          Adjustable Rate Loan Group Excess Cashflow: With respect to any
Distribution Date the sum of (i) the amount remaining after the distribution
of interest to Certificateholders for such Distribution Date as specified in
Section 4.04(b)(iv)(b), (ii) the amount remaining after the distribution of
principal to Certificateholders for such Distribution Date, as specified in
Section 4.04(d)(1)(C) or 4.04(d)(2)(C), and (iii) the Adjustable Rate
Overcollateralization Reduction Amount for such Distribution Date, if any.

          Adjustable Rate Mortgage Loans: The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is adjustable in
accordance with the terms of the related Mortgage Note.

                                      9
<PAGE>

          Adjustable Rate Net Rate Cap: For any Distribution Date, (A) the
weighted average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan
Group 2 as of the first day of the related Due Period (after giving effect to
Principal Prepayments received during the Prepayment Period that ends during
such Due Period), adjusted to an effective rate reflecting the calculation of
interest on the basis of the actual number of days elapsed during the related
Accrual Period and a 360-day year, minus (B) the Swap Adjustment Rate for the
Distribution Date.

          Adjustable Rate OC Floor: For any Distribution Date, an amount equal
to 0.50% of the sum of the aggregate Cut-off Date Principal Balance of the
Initial Mortgage Loans in Loan Group 2, the Group 2 Pre-Funded Amount.

          Adjustable Rate Overcollateralization Deficiency Amount: With
respect to any Distribution Date, the amount, if any, by which the Adjustable
Rate Overcollateralization Target Amount exceeds the Adjustable Rate
Overcollateralized Amount on such Distribution Date (after giving effect to
distribution of the Principal Distribution Amount (other than the portion
thereof consisting of the Extra Principal Distribution Amount) for Loan Group
2 on such Distribution Date).

          Adjustable Rate Overcollateralization Reduction Amount: With respect
to any Distribution Date, an amount equal to the lesser of (i) the Adjustable
Rate Excess Overcollateralization Amount for such Distribution Date and (ii)
the Principal Remittance Amount for Loan Group 2 for such Distribution Date.

          Adjustable Rate Overcollateralization Target Amount: With respect to
any Distribution Date (a) prior to the Adjustable Rate Stepdown Date, an
amount equal to 2.50% of the sum of the aggregate Cut-off Date Principal
Balance of the Initial Mortgage Loans in Loan Group 2 and the Group 2
Pre-Funded Amount and (b) on or after the Adjustable Rate Stepdown Date, the
greater of (i) an amount equal to 5.00% of the aggregate Stated Principal
Balance of the Mortgage Loans in Loan Group 2 for the current Distribution
Date and (ii) the Adjustable Rate OC Floor; provided, however, that if an
Adjustable Rate Trigger Event is in effect on any Distribution Date, the
Adjustable Rate Overcollateralization Target Amount will be the Adjustable
Rate Overcollateralization Target Amount as in effect for the prior
Distribution Date.

          Adjustable Rate Overcollateralized Amount: With respect to any
Distribution Date, the amount, if any, by which (x) the sum of the aggregate
Stated Principal Balance of the Mortgage Loans in Loan Group 2 for such
Distribution Date and any amount on deposit in the Pre-Funding Account in
respect of Loan Group 2 exceeds (y) the sum of the aggregate Certificate
Principal Balance of the Class AV Certificates and the Adjustable Rate
Subordinate Certificates as of such Distribution Date (after giving effect to
distribution of the Principal Remittance Amount for Loan Group 2 to be made on
such Distribution Date and, in the case of the Distribution Date immediately
following the end of the Funding Period, any amounts to be released from the
Pre-Funding Account in respect of Loan Group 2).

          Adjustable Rate Senior Enhancement Percentage: With respect to a
Distribution Date on or after the Adjustable Rate Stepdown Date, the fraction
(expressed as a percentage) (1) the numerator of which is the excess of (a)
the aggregate Stated Principal Balance of the

                                      10
<PAGE>

Mortgage Loans in Loan Group 2 for the preceding Distribution Date over (b)
(i) before the Certificate Principal Balances of the Class AV Certificates
have been reduced to zero, the sum of the Certificate Principal Balances of
the Class AV Certificates, or (ii) after the Certificate Principal Balances of
the Class AV Certificates have been reduced to zero, the Certificate Principal
Balance of the most senior Class of Adjustable Rate Subordinate Certificates
outstanding, as of the related Master Servicer Advance Date, and (2) the
denominator of which is the aggregate Stated Principal Balance of the Mortgage
Loans in Loan Group 2 for the preceding Distribution Date.

          Adjustable Rate Stepdown Date: The earlier to occur of: (1) the
Distribution Date on which the aggregate Certificate Principal Balance of the
Class AV Certificates is reduced to zero, and (2) the later to occur of (x)
the Distribution Date in February 2009 and (y) the first Distribution Date on
which the aggregate Certificate Principal Balance of the Class AV Certificates
(after calculating anticipated distributions on such Distribution Date) is
less than or equal to 56.60% of the aggregate Stated Principal Balance of the
Mortgage Loans in Loan Group 2 for such Distribution Date.

          Adjustable Rate Subordinate Certificates: Any Class MV-1, Class
MV-2, Class MV-3, Class MV-4, Class MV-5, Class MV-6, Class MV-7, Class MV-8
or Class BV Certificates.

          Adjustable Rate Subordinate Class Principal Distribution Amount:
With respect to any Distribution Date and any Class of Adjustable Rate
Subordinate Certificates, the excess of (1) the sum of (a) the aggregate
Certificate Principal Balance of the Class AV Certificates (after taking into
account distribution of the Class AV Principal Distribution Amount for such
Distribution Date), (b) the aggregate Certificate Principal Balance of any
Class(es) of Adjustable Rate Subordinate Certificates that are senior to the
subject Class (in each case, after taking into account distribution of the
Adjustable Rate Subordinate Class Principal Distribution Amount(s) for such
senior Class(es) of Certificates for such Distribution Date), and (c) the
Certificate Principal Balance of the subject Class of Adjustable Rate
Subordinate Certificates immediately prior to such Distribution Date over (2)
the lesser of (a) the product of (x) 100% minus the Stepdown Target
Subordination Percentage for the subject Class of Certificates and (y) the
aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 2 for
such Distribution Date and (b) the aggregate Stated Principal Balance of the
Mortgage Loans in Loan Group 2 for such Distribution Date minus the Adjustable
Rate OC Floor; provided, however, that if such Class of Adjustable Rate
Subordinate Certificates is the only Class of Adjustable Rate Subordinate
Certificates outstanding on such Distribution Date, that Class will be
entitled to receive the entire remaining Principal Distribution Amount for
Loan Group 2 until the Certificate Principal Balance thereof is reduced to
zero.

          Adjustable Rate Trigger Event: With respect to any Distribution Date
on or after the Adjustable Rate Stepdown Date, either an Adjustable Rate
Delinquency Trigger Event is in effect with respect to that Distribution Date
or an Adjustable Rate Cumulative Loss Trigger Event is in effect with respect
to that Distribution Date.

          Adjusted Net Mortgage Rate: As to each Mortgage Loan, the Mortgage
Rate less the related Expense Fee Rate.

                                      11
<PAGE>

          Adjustment Date: As to each Adjustable Rate Mortgage Loan, each date
on which the related Mortgage Rate is subject to adjustment, as provided in
the related Mortgage Note.

          Advance: The aggregate of the advances required to be made by the
Master Servicer with respect to any Distribution Date pursuant to Section
4.01, the amount of any such advances being equal to the aggregate of payments
of principal of, and interest on the Stated Principal Balance of, the Mortgage
Loans (net of the Servicing Fees) that were due on the related Due Date and
not received by the Master Servicer as of the close of business on the related
Determination Date including an amount equivalent to interest on the Stated
Principal Balance of each Mortgage Loan as to which the related Mortgaged
Property is an REO Property or as to which the related Mortgaged Property has
been liquidated but such Mortgage Loan has not yet become a Liquidated
Mortgage Loan; provided, however, that the net monthly rental income (if any)
from such REO Property deposited in the Certificate Account for such
Distribution Date pursuant to Section 3.12 may be used to offset such Advance
for the related REO Property; provided, further, that for the avoidance of
doubt, no Advances shall be required to be made in respect of any Liquidated
Mortgage Loan.

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

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

          Applied Realized Loss Amount: With respect to any Distribution Date
and any Loan Group, the amount, if any, by which, the aggregate Certificate
Principal Balance of the Classes of Certificates listed opposite such Loan
Group in the following table (after all distributions of principal on such
Distribution Date) exceeds the sum of (x) the aggregate Stated Principal
Balance of the Mortgage Loans in such Loan Group for such Distribution Date
and (y) the amount on deposit in the Pre-Funding Account in respect of such
Loan Group.

             Loan Group               Classes of Certificates

                1                   AF and Fixed Rate Subordinate
                2                 AV and Adjustable Rate Subordinate

          Appraised Value: The appraised value of the Mortgaged Property based
upon the appraisal made for the originator of the related Mortgage Loan by an
independent fee appraiser at the time of the origination of the related
Mortgage Loan, or the sales price of the Mortgaged Property at the time of
such origination, whichever is less, or 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.

                                      12
<PAGE>

          Bankruptcy Code: Title 11 of the United States Code.

          Book-Entry Certificates: Any of the Certificates that shall be
registered in the name of the Depository or its nominee, the ownership of
which is reflected on the books of the Depository or on the books of a person
maintaining an account with the Depository (directly, as a "Depository
Participant", or indirectly, as an indirect participant in accordance with the
rules of the Depository and as described in Section 5.06). As of the Closing
Date, each Class of Interest Bearing 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 or California or
the city in which the Corporate Trust Office of the Trustee is located is
authorized or obligated by law or executive order to be closed.

          Carryover Reserve Fund: The separate Eligible Account created and
initially maintained by the Trustee pursuant to Section 4.07 in the name of
the Trustee for the benefit of the Certificateholders and designated "The Bank
of New York in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-1". Funds in the Carryover Reserve Fund shall be
held in trust for the Certificateholders for the uses and purposes set forth
in this Agreement.

          Certificate: Any one of the certificates of any Class executed and
authenticated by the Trustee in substantially the forms attached hereto as
Exhibits A-1 through A-27, Exhibits B-1 and B-2, Exhibits C-1 and C-2, Exhibit
D and Exhibit E.

          Certificate Account: The separate Eligible Account created and
initially maintained by the Master Servicer pursuant to Section 3.05(b) with a
depository institution in the name of the Master Servicer for the benefit of
the Trustee on behalf of the Certificateholders and designated "Countrywide
Home Loans Servicing LP in trust for registered Holders of CWABS, Inc.,
Asset-Backed Certificates, Series 2006-1". Funds in the Certificate Account
shall be held in trust for the Certificateholders for the uses and purposes
set forth in this Agreement.

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

          Certification Party: As defined in Section 11.05.

          Certifying Person: As defined in Section 11.05.

          Certificate Principal Balance: As to any Certificate (other than the
Class C Certificates) and as of any Distribution Date, the Initial Certificate
Principal Balance of such Certificate (A) less the sum of (i) all amounts
distributed with respect to such Certificate in reduction of the Certificate
Principal Balance thereof on previous Distribution Dates pursuant to Section
4.04(c) or 4.04(d) and (ii) any Applied Realized Loss Amounts allocated to
such Certificate on previous Distribution Dates pursuant to Section 4.04(k),
and (B) increased by any

                                      13
<PAGE>

Subsequent Recoveries allocated to such Class of Certificate pursuant to
Section 4.04(l) on such Distribution Date. References herein to the
Certificate Principal Balance of a Class of Certificates shall mean the
Certificate Principal Balances of all Certificates in such Class. The Class C
Certificates do not have a Certificate Principal Balance. With respect to any
Certificate (other than the Class C Certificates) of a Class and any
Distribution Date, the portion of the Certificate Principal Balance of such
Class represented by such Certificate equal to the product of the Percentage
Interest evidenced by such Certificate and the Certificate Principal Balance
of such Class.

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

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

          CHL: Countrywide Home Loans, Inc., a New York corporation, and its
successors and assigns.

          CHL Mortgage Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule for which CHL is the applicable Seller.

          Class: All Certificates bearing the same Class designation as set
forth in Section 5.01 hereof.

          Class AF Certificate: Any Class AF-1, Class AF-2, Class AF-3, Class
AF-4, Class AF-5 or Class AF-6 Certificate.

          Class AF Principal Distribution Amount: With respect to any
Distribution Date, the excess of (1) the aggregate Certificate Principal
Balance of the Class AF Certificates immediately prior to such Distribution
Date, over (2) the lesser of (x) 63.40% of the aggregate Stated Principal
Balance of the Mortgage Loans in Loan Group 1 for such Distribution Date and
(y) the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group
1 for such Distribution Date minus the Fixed Rate OC Floor.

          Class AF-1 Certificate: Any Certificate designated as a "Class AF-1
Certificate" on the face thereof, in the form of Exhibit A-1 hereto,
representing the right to distributions as set forth herein.

                                      14
<PAGE>

          Class AF-2 Certificate: Any Certificate designated as a "Class AF-2
Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to distributions as set forth herein.

          Class AF-3 Certificate: Any Certificate designated as a "Class AF-3
Certificate" on the face thereof, in the form of Exhibit A-3 hereto,
representing the right to distributions as set forth herein.

          Class AF-4 Certificate: Any Certificate designated as a "Class AF-4
Certificate" on the face thereof, in the form of Exhibit A-4 hereto,
representing the right to distributions as set forth herein.

          Class AF-5 Certificate: Any Certificate designated as a "Class AF-5
Certificate" on the face thereof, in the form of Exhibit A-5 hereto,
representing the right to distributions as set forth herein.

          Class AF-6 Certificate: Any Certificate designated as a "Class AF-6
Certificate" on the face thereof, in the form of Exhibit A-6 hereto,
representing the right to distributions as set forth herein.

          Class AF-6 Portion: With respect to any Distribution Date, a
percentage, expressed as a fraction, the numerator of which is the Certificate
Principal Balance of the Class AF-6 Certificates immediately prior to such
Distribution Date and the denominator of which is the aggregate Certificate
Principal Balance of all Classes of the Class AF Certificates immediately
prior to such Distribution Date.

          Class A-R Certificate: Any Certificate designated as a "Class A-R
Certificate" on the face thereof, in the form of Exhibit D hereto or, in the
case of the Tax Matters Person Certificate, Exhibit E hereto, in either case
representing the right to distributions as set forth herein.

          Class AV Certificate: Any Class AV-1, Class AV-2 or Class AV-3
Certificate.

          Class AV-1 Certificate: Any Certificate designated as a "Class AV-1
Certificate" on the face thereof, in the form of Exhibit A-16 hereto,
representing the right to distributions as set forth herein.

          Class AV-2 Certificate: Any Certificate designated as a "Class AV-2
Certificate" on the face thereof, in the form of Exhibit A-17 hereto,
representing the right to distributions as set forth herein.

          Class AV-3 Certificate: Any Certificate designated as a "Class AV-3
Certificate" on the face thereof, in the form of Exhibit A-18 hereto,
representing the right to distributions as set forth herein.

          Class AV Principal Distribution Amount: With respect to any
Distribution Date, the excess of (1) the aggregate Certificate Principal
Balance of the Class AV Certificates immediately prior to such Distribution
Date, over (2) the lesser of (i) 56.60% of the aggregate

                                      15
<PAGE>

Stated Principal Balance of the Mortgage Loans in Loan Group 2 for such
Distribution Date and (ii) the aggregate Stated Principal Balance of the
Mortgage Loans in Loan Group 2 for such Distribution Date minus the Adjustable
Rate OC Floor.

          Class BF Certificate: Any Certificate designated as a "Class BF
Certificate" on the face thereof, in the form of Exhibit A-15 hereto,
representing the right to distributions as set forth herein.

          Class BV Certificate: Any Certificate designated as a "Class BV
Certificate" on the face thereof, in the form of Exhibit A-27 hereto,
representing the right to distributions as set forth herein.

          Class C Certificate: Any Class CF or Class CV Certificate.

          Class CF Certificate: Any Certificate designated as a "Class CF
Certificate" on the face thereof, in the form of Exhibit C-1 hereto,
representing the right to distributions as set forth herein.

          Class CF Distributable Amount: As defined in the Preliminary
Statement.

          Class CV Certificate: Any Certificate designated as a "Class CV
Certificate" on the face thereof, in the form of Exhibit C-2 hereto,
representing the right to distributions as set forth herein.

          Class CV Distributable Amount: As defined in the Preliminary
Statement.

          Class MF-1 Certificate: Any Certificate designated as a "Class MF-1
Certificate" on the face thereof, in the form of Exhibit A-7 hereto,
representing the right to distributions as set forth herein.

          Class MF-2 Certificate: Any Certificate designated as a "Class MF-2
Certificate" on the face thereof, in the form of Exhibit A-8 hereto,
representing the right to distributions as set forth herein.

          Class MF-3 Certificate: Any Certificate designated as a "Class MF-3
Certificate" on the face thereof, in the form of Exhibit A-9 hereto,
representing the right to distributions as set forth herein.

          Class MF-4 Certificate: Any Certificate designated as a "Class MF-4
Certificate" on the face thereof, in the form of Exhibit A-10 hereto,
representing the right to distributions as set forth herein.

          Class MF-5 Certificate: Any Certificate designated as a "Class MF-5
Certificate" on the face thereof, in the form of Exhibit A-11 hereto,
representing the right to distributions as set forth herein.

                                      16
<PAGE>

          Class MF-6 Certificate: Any Certificate designated as a "Class MF-6
Certificate" on the face thereof, in the form of Exhibit A-12 hereto,
representing the right to distributions as set forth herein.

          Class MF-7 Certificate: Any Certificate designated as a "Class MF-7
Certificate" on the face thereof, in the form of Exhibit A-13 hereto,
representing the right to distributions as set forth herein.

          Class MF-8 Certificate: Any Certificate designated as a "Class MF-8
Certificate" on the face thereof, in the form of Exhibit A-14 hereto,
representing the right to distributions as set forth herein.

          Class MF Certificate: Any Class MF-1, Class MF-2, Class MF-3, Class
MF-4, Class MF-5, Class MF-6, Class MF-7 or Class MF-8 Certificate.

          Class MV-1 Certificate: Any Certificate designated as a "Class MV-1
Certificate" on the face thereof, in the form of Exhibit A-19 hereto,
representing the right to distributions as set forth herein.

          Class MV-2 Certificate: Any Certificate designated as a "Class MV-2
Certificate" on the face thereof, in the form of Exhibit A-20 hereto,
representing the right to distributions as set forth herein.

          Class MV-3 Certificate: Any Certificate designated as a "Class MV-3
Certificate" on the face thereof, in the form of Exhibit A-21 hereto,
representing the right to distributions as set forth herein.

          Class MV-4 Certificate: Any Certificate designated as a "Class MV-4
Certificate" on the face thereof, in the form of Exhibit A-22 hereto,
representing the right to distributions as set forth herein.

          Class MV-5 Certificate: Any Certificate designated as a "Class MV-5
Certificate" on the face thereof, in the form of Exhibit A-23 hereto,
representing the right to distributions as set forth herein.

          Class MV-6 Certificate: Any Certificate designated as a "Class MV-6
Certificate" on the face thereof, in the form of Exhibit A-24 hereto,
representing the right to distributions as set forth herein.

          Class MV-7 Certificate: Any Certificate designated as a "Class MV-7
Certificate" on the face thereof, in the form of Exhibit A-25 hereto,
representing the right to distributions as set forth herein.

          Class MV-8 Certificate: Any Certificate designated as a "Class MV-8
Certificate" on the face thereof, in the form of Exhibit A-26 hereto,
representing the right to distributions as set forth herein.

                                      17
<PAGE>

          Class MV Certificate: Any Class MV-1, Class MV-2, Class MV-3, Class
MV-4, Class MV-5, Class MV-6, Class MV-7 or Class MV-8 Certificate.

          Class P Certificate: Any Class PF Certificate or Class PV
Certificate.

          Class PF Certificate: Any Certificate designated as a "Class PF
Certificate" on the face thereof, in the form of Exhibit B-1 hereto,
representing the right to distributions as set forth herein.

          Class PF Principal Distribution Date: The first Distribution Date
that occurs after the end of the latest Prepayment Charge Period for all
Mortgage Loans in Loan Group 1 that have a Prepayment Charge Period.

          Class PV Certificate: Any Certificate designated as a "Class PV
Certificate" on the face thereof, in the form of Exhibit B-2 hereto,
representing the right to distributions as set forth herein.

          Class PV Principal Distribution Date: The first Distribution Date
that occurs after the end of the latest Prepayment Charge Period for all
Mortgage Loans in Loan Group 2 that have a Prepayment Charge Period.

          Closing Date: February 10, 2006.

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

          Collateral Schedule: Schedule II hereto.

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

          Compensating Interest: With respect to the Mortgage Loans in each
Loan Group and any Distribution Date, an amount equal to the lesser of (x)
one-half of the Servicing Fee for such Mortgage Loans for the related Due
Period and (y) the aggregate Prepayment Interest Shortfalls for such Mortgage
Loans for such Distribution Date.

          Confirmation: The confirmation, reference number FXNEC7824, with a
trade date of January 27, 2006 evidencing a transaction between the Corridor
Contract Counterparty and CHL relating to the Corridor Contract and the
confirmation, reference number FXCWL061, with a trade date of January 27, 2006
evidencing a transaction between the Swap Counterparty and CHL relating to the
Swap Contract, as applicable.

          Corporate Trust Office: The designated office of the Trustee in the
State of New York where at any particular time its corporate trust business
with respect to this Agreement shall be administered, which office at the date
of the execution of this Agreement is located at 101 Barclay Street, New York,
New York 10286 (Attention: Corporate Trust MBS Administration), telephone:
(212) 815-3236, facsimile: (212) 815-3986.

                                      18
<PAGE>

          Corridor Contract: With respect to the Class AF-1 Certificates, the
transaction evidenced by the related Confirmation (as assigned to the Corridor
Contract Administrator pursuant to the Corridor Contract Assignment
Agreement), a form of which is attached hereto as Exhibit Q.

          Corridor Contract Administration Agreement: The corridor contract
administration agreement dated as of the Closing Date among CHL, the Trustee
and the Corridor Contract Administrator, a form of which is attached hereto as
Exhibit S-2.

          Corridor Contract Administrator: The Bank of New York, in its
capacity as corridor contract administrator under the Corridor Contract
Administration Agreement.

          Corridor Contract Assignment Agreement: The Assignment Agreement
dated as of the Closing Date among CHL, the Corridor Contract Administrator
and the Corridor Contract Counterparty, a form of which is attached hereto as
Exhibit S-1.

          Corridor Contract Counterparty: Bear Stearns Financial Products Inc.
and its successors.

          Corridor Contract Termination Date: The Distribution Date in
December 2007.

          Credit Bureau Risk Score: A statistical credit score obtained by CHL
in connection with the origination of a Mortgage Loan.

          Current Interest: With respect to each Class of Interest Bearing
Certificates and each Distribution Date, the interest accrued at the
applicable Pass-Through Rate for the applicable Accrual Period on the
Certificate Principal Balance of such Class immediately prior to such
Distribution Date, plus any amount previously distributed with respect to
interest for such Class that is recovered as a voidable preference by a
trustee in bankruptcy.

          Cut-off Date: When used with respect to any Mortgage Loan the
"Cut-off Date" shall mean the Initial Cut-off Date or the related Subsequent
Cut-off Date, as the case may be.

          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 payments of principal due on or prior to the Cut-off
Date, whether or not received, and all Principal Prepayments received on or
prior to the Cut-off Date, but without giving effect to any installments of
principal received in respect of Due Dates after the Cut-off Date.

          Debt Service Reduction: With respect to any Mortgage Loan, 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.

          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

                                      19
<PAGE>

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 5.06.

          Delay Delivery Mortgage Loans: (i) The Initial Mortgage Loans
identified on the schedule of Mortgage Loans hereto set forth on Exhibit F-2
hereof for which all or a portion of a related Mortgage File is not delivered
to the Trustee on or prior to the Closing Date, and (ii) the Subsequent
Mortgage Loans identified on the schedule of Subsequent Mortgage Loans set
forth in Annex A to each related Subsequent Transfer Agreement for which all
or a portion of the related Mortgage File is not delivered to the Trustee on
or prior to the related Subsequent Transfer Date. The Depositor shall deliver
(or cause delivery of) the Mortgage Files to the Trustee: (A) with respect to
at least 50% of the Initial Mortgage Loans in each Loan Group, not later than
the Closing Date and with respect to at least 10% of the Subsequent Mortgage
Loans in each Loan Group conveyed on a Subsequent Transfer Date, not later
than such Subsequent Transfer Date, (B) with respect to at least an additional
40% of the Initial Mortgage Loans in each Loan Group, not later than 20 days
after the Closing Date, and not later than 20 days after the relevant
Subsequent Transfer Date with respect to the remaining Subsequent Mortgage
Loans conveyed on such Subsequent Transfer Date, and (C) with respect to the
remaining Initial Mortgage Loans, not later than thirty days after the Closing
Date. To the extent that Countrywide Home Loans, Inc. shall be in possession
of any Mortgage Files with respect to any Delay Delivery Mortgage Loan, until
delivery of such Mortgage File to the Trustee as provided in Section 2.01,
Countrywide Home Loans, Inc. shall hold such files as agent and in trust for
the Trustee.

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

          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 Balance of this Certificate"
or, if not the foregoing, the Percentage Interest appearing on the face
thereof, as applicable.

          Depositor: CWABS, Inc., a Delaware corporation, or its successor in
interest.

          Depository: The initial Depository shall be The Depository Trust
Company, the nominee of which is Cede & Co., or any other organization
registered as a "clearing agency" pursuant to Section 17A of the Securities
Exchange Act of 1934, as amended. The Depository

                                      20
<PAGE>

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 Book-Entry Certificates,
the agreement among the Depositor and the initial Depository, dated as of the
Closing Date, substantially in the form of Exhibit O.

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

          Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05(c) in the name of the
Trustee for the benefit of the Certificateholders and designated "The Bank of
New York, in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-1". Funds in the Distribution Account shall be held
in trust for the Certificateholders for the uses and purposes set forth in
this Agreement.

          Distribution Account Deposit Date: As to any Distribution Date, 1:00
p.m. Pacific time on the Business Day immediately preceding such Distribution
Date.

          Distribution Date: The 25th day of each month, or if such day is not
a Business Day, on the first Business Day thereafter, commencing in February
2006.

          Due Date: With respect to any Mortgage Loan and Due Period, the due
date for Scheduled Payments of interest and/or principal on that Mortgage Loan
occurring in such Due Period as provided in the related Mortgage Note.

          Due Period: With respect to any Distribution Date, the period
beginning on the second day of the calendar month preceding the calendar month
in which such Distribution Date occurs and ending on the first day of the
month in which such Distribution Date occurs.

          EDGAR: The Commission's Electronic Data Gathering, Analysis and
Retrieval system.

          Eligible Account: Any of (i) an account or accounts maintained with
a federal or state chartered depository institution or trust company, the
long-term unsecured debt obligations and short-term unsecured debt obligations
of which (or, in the case of a depository institution or trust company that is
the principal subsidiary of a holding company, the debt obligations of such
holding company, if Moody's is not a Rating Agency) 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

                                      21
<PAGE>

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 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
without reduction or withdrawal of their then-current ratings of the
Certificates as evidenced by a letter from each Rating Agency to the Trustee.
Eligible Accounts may bear interest, and may include, if otherwise qualified
under this definition, accounts maintained with the Trustee.

          Eligible Repurchase Month: As defined in Section 3.12(d) hereof.

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

          ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that meets the applicable requirements of
the Underwriter's Exemption.

          ERISA-Restricted Certificates: The Class A-R Certificates, Class P
Certificates, Class C Certificates and Certificates of any Class that ceases
to satisfy the applicable rating requirement under the Underwriter's
Exemption.

          Escrow Account: As defined in Section 3.06 hereof.

          Event of Default: As defined in Section 7.01 hereof.

          Excess Proceeds: With respect to any Liquidated Mortgage Loan, the
amount, if any, by which the sum of any Liquidation Proceeds and Subsequent
Recoveries are in excess of the sum of (i) the unpaid principal balance of
such Liquidated Mortgage Loan as of the date of liquidation of such Liquidated
Mortgage Loan plus (ii) interest at the Mortgage Rate from the Due Date as to
which interest was last paid or advanced to Certificateholders (and not
reimbursed to the Master Servicer) up to the Due Date in the month in which
Liquidation Proceeds are required to be distributed on the Stated Principal
Balance of such Liquidated Mortgage Loan outstanding during each Due Period as
to which such interest was not paid or advanced.

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

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

          Expense Fee Rate: With respect to any Mortgage Loan, the sum of (i)
the Servicing Fee Rate, (ii) the Trustee Fee Rate and (iii) with respect to
any Mortgage Loan covered

                                      22
<PAGE>

by a lender paid mortgage insurance policy, the rate at which the premium for
the related mortgage insurance policy is calculated.

          Extra Principal Distribution Amount: With respect to any
Distribution Date and (A) Loan Group 1, the lesser of (1) the Fixed Rate
Overcollateralization Deficiency Amount and (2) the Fixed Rate Loan Group
Excess Cashflow available for payment thereof and (B) Loan Group 2, the lesser
of (1) the Adjustable Rate Overcollateralization Deficiency Amount and (2) the
Adjustable Rate Loan Group Excess Cashflow available for payment thereof.

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

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

          Five-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage
Rate that is fixed for 60 months after origination thereof before such
Mortgage Rate becomes subject to adjustment.

          Fixed Rate Certificates: The Class AF-2, Class AF-3, Class AF-4,
Class AF-5, Class AF-6, Class MF-1, Class MF-2, Class MF-3, Class MF-4, Class
MF-5, Class MF-6, Class MF-7, Class MF-8 and Class BF Certificates.

          Fixed Rate Cumulative Loss Trigger Event: With respect to a
Distribution Date on or after the Fixed Rate Stepdown Date, (x) the aggregate
amount of Realized Losses on the Mortgage Loans in Loan Group 1 from the
Cut-off Date for each such Mortgage Loan to (and including) the last day of
the related Due Period (reduced by the aggregate amount of any Subsequent
Recoveries related to Loan Group 1 received through the last day of that Due
Period) exceeds (y) the applicable percentage, for such Distribution Date, of
the sum of the aggregate Cut-off Date Principal Balance of the Initial
Mortgage Loans in Loan Group 1 and the Group 1 Pre-Funded Amount, as set forth
below:

         Distribution Date                   Percentage
         -----------------                   ----------

         February 2008 -- January 2009       0.85% with respect to February
                                             2008, plus an additional 1/12th of
                                             1.10% for each month thereafter
                                             through January 2009
         February 2009 -- January 2010       1.95% with respect to February
                                             2009, plus an additional 1/12th of
                                             1.35% for each month thereafter
                                             through January 2010
         February 2010 -- January 2011       3.30% with respect to February
                                             2010, plus an additional 1/12th of
                                             0.95% for each month thereafter
                                             through January 2011

                                      23
<PAGE>

         February 2011 -- January 2012       4.25% with respect to February
                                             2011, plus an additional 1/12th of
                                             0.25% for each month thereafter
                                             through January 2012
         February 2012 and thereafter        4.50%

          Fixed Rate Delinquency Trigger Event: With respect to any
Distribution Date on or after the Fixed Rate Stepdown Date, the Rolling
Sixty-Day Delinquency Rate for Outstanding Mortgage Loans in Loan Group 1
equals or exceeds the product of (x) the Fixed Rate Senior Enhancement
Percentage for such Distribution Date and (y) the applicable percentage listed
below for the most senior class of outstanding Class AF Certificates and Fixed
Rate Subordinate Certificates:

                               Class                          Percentage

                            Class AF................           43.50%
                            Class MF-1..............           52.03%
                            Class MF-2..............           63.43%
                            Class MF-3..............           73.03%
                            Class MF-4..............           84.24%
                            Class MF-5..............           98.89%
                            Class MF-6..............          117.07%
                            Class MF-7..............          142.15%
                            Class MF-8..............          174.96%
                            Class BF................          224.24%

          Fixed Rate Excess Overcollateralization Amount: With respect to any
Distribution Date, an amount equal to the excess, if any, of the Fixed Rate
Overcollateralized Amount for such Distribution Date over the Fixed Rate
Overcollateralization Target Amount for such Distribution Date.

          Fixed Rate Loan Group Excess Cashflow: With respect to any
Distribution Date the sum of (i) the amount remaining after the distribution
of interest to Certificateholders for such Distribution Date as specified in
Section 4.04(a)(iii), (ii) the amount remaining after the distribution of
principal to Certificateholders for such Distribution Date pursuant to Section
4.04(c)(1)(C) or 4.04(c)(2)(C), and (iii) the Fixed Rate Overcollateralization
Reduction Amount for such Distribution Date, if any.

          Fixed Rate Net Rate Cap: For any Distribution Date, the weighted
average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan Group 1 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period), adjusted in the case of the Class AF-1 Certificates only, to an
effective rate reflecting the calculation of interest on the basis of the
actual number of days elapsed during the related Accrual Period and a 360-day
year.

                                      24
<PAGE>

          Fixed Rate Mortgage Loans: The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is fixed for the life
of the related Mortgage, including in each case any Mortgage Loans delivered
in replacement thereof.

          Fixed Rate OC Floor: An amount equal to 0.50% of the sum of the
aggregate Cut-off Date Principal Balance of the Initial Mortgage Loans in Loan
Group 1 and the Group 1 Pre-Funded Amount.

          Fixed Rate Overcollateralization Deficiency Amount: With respect to
any Distribution Date, the amount, if any, by which the Fixed Rate
Overcollateralization Target Amount exceeds the Fixed Rate Overcollateralized
Amount on such Distribution Date (after giving effect to distribution of the
Principal Distribution Amount (other than the portion thereof consisting of
the Extra Principal Distribution Amount) for Loan Group 1 on such Distribution
Date).

          Fixed Rate Overcollateralization Reduction Amount: With respect to
any Distribution Date, an amount equal to the lesser of (i) the Fixed Rate
Excess Overcollateralization Amount for such Distribution Date and (ii) the
Principal Remittance Amount for Loan Group 1 for such Distribution Date.

          Fixed Rate Overcollateralization Target Amount: With respect to any
Distribution Date (a) prior to the Fixed Rate Stepdown Date, an amount equal
to 3.55% of the sum of the aggregate Cut-off Date Principal Balance of the
Initial Mortgage Loans in Loan Group 1 and the Group 1 Pre-Funded Amount and
(b) on or after the Fixed Rate Stepdown Date, the greater of (i) an amount
equal to 7.10% of the aggregate Stated Principal Balance of the Mortgage Loans
in Loan Group 1 for the current Distribution Date and (ii) the Fixed Rate OC
Floor; provided, however, that if a Fixed Rate Trigger Event is in effect on
any Distribution Date, the Fixed Rate Overcollateralization Target Amount will
be the Fixed Rate Overcollateralization Target Amount as in effect for the
prior Distribution Date.

          Fixed Rate Overcollateralized Amount: With respect to any
Distribution Date, the amount, if any, by which (x) the sum of the aggregate
Stated Principal Balance of the Mortgage Loans in Loan Group 1 for such
Distribution Date and any amount on deposit in the Pre-Funding Account in
respect of Loan Group 1 exceeds (y) the aggregate Certificate Principal
Balance of the Class AF Certificates and the Fixed Rate Subordinate
Certificates as of such Distribution Date (after giving effect to distribution
of the Principal Remittance Amount for Loan Group 1 to be made on such
Distribution Date and, in the case of the Distribution Date immediately
following the end of the Funding Period, any amounts to be released from the
Pre-Funding Account in respect of Loan Group 1).

          Fixed Rate Senior Enhancement Percentage: With respect to a
Distribution Date on or after the Fixed Rate Stepdown Date, the fraction
(expressed as a percentage) (1) the numerator of which is the excess of (a)
the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 1
for the preceding Distribution Date over (b) (i) before the Certificate
Principal Balances of the Class AF Certificates have been reduced to zero, the
sum of the Certificate Principal Balances of the Class AF Certificates, or
(ii) after the Certificate Principal Balances of the Class AF Certificates
have been reduced to zero, the Certificate Principal

                                      25
<PAGE>

Balance of the most senior Class of Fixed Rate Subordinate Certificates
outstanding, as of the related Master Servicer Advance Date, and (2) the
denominator of which is the aggregate Stated Principal Balance of the Mortgage
Loans in Loan Group 1 for the preceding Distribution Date.

          Fixed Rate Subordinate Class Principal Distribution Amount: With
respect to any Distribution Date and any Class of Fixed Rate Subordinate
Certificates the excess of (1) the sum of (a) the aggregate Certificate
Principal Balance of the Class AF Certificates (after taking into account
distribution of the Class AF Principal Distribution Amount for such
Distribution Date), (b) the aggregate Certificate Principal Balance of any
Class(es) of Fixed Rate Subordinate Certificates that are senior to the
subject Class (in each case, after taking into account distribution of the
Fixed Rate Subordinate Class Principal Distribution Amount(s) for such senior
Class(es) of Certificates for such Distribution Date), and (c) the Certificate
Principal Balance of such Class of Fixed Rate Subordinate Certificates
immediately prior to the subject Distribution Date over (2) the lesser of (a)
the product of (x) 100% minus the Stepdown Target Subordination Percentage for
the subject Class of Certificates and (y) the aggregate Stated Principal
Balance of the Mortgage Loans in Loan Group 1 for such Distribution Date and
(b) the aggregate Stated Principal Balance of the Mortgage Loans in Loan Group
1 for such Distribution Date minus the Fixed Rate OC Floor; provided, however,
that if such Class of Fixed Rate Subordinate Certificates is the only Class of
Fixed Rate Subordinate Certificates outstanding on such Distribution Date,
that Class will be entitled to receive the entire remaining Principal
Distribution Amount for Loan Group 1 until the Certificate Principal Balance
thereof is reduced to zero.

          Fixed Rate Stepdown Date: The earlier to occur of: (1) the
Distribution Date on which the aggregate Certificate Principal Balance of the
Class AF Certificates is reduced to zero, and (2) the later to occur of (x)
the Distribution Date in February 2009 and (y) the first Distribution Date on
which the aggregate Certificate Principal Balance of the Class AF Certificates
(after calculating anticipated distributions on such Distribution Date) is
less than or equal to 63.40% of the aggregate Stated Principal Balance of the
Mortgage Loans in Loan Group 1 for such Distribution Date.

          Fixed Rate Subordinate Certificates: The Class MF-1, Class MF-2,
Class MF-3, Class MF-4, Class MF-5, Class MF-6, Class MF-7, Class MF-8 and
Class BF Certificates.

          Fixed Rate Trigger Event: With respect to any Distribution Date on
or after the Fixed Rate Stepdown Date, either a Fixed Rate Delinquency Trigger
Event with respect to that Distribution Date or a Fixed Rate Cumulative Loss
Trigger Event with respect to that Distribution Date.

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

          Form 10-K Disclosure Item: With respect to any Person, (a) Form 10-D
Disclosure Item, and (b) any affiliations or relationships between such Person
and any Item 1119 Party.

                                      26
<PAGE>

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

          Funding Period: The period from the Closing Date to and including
the earlier to occur of (x) the date the amount in the Pre-Funding Account is
less than $175,000 and (y) March 27, 2006.

          Gross Margin: The percentage set forth in the related Mortgage Note
to be added to the Index for use in determining the Mortgage Rate for each
Adjustable Rate Mortgage Loan on each of its Adjustment Dates.

          Group 1 Mortgage Loans: The group of Mortgage Loans identified in
the related Mortgage Loan Schedule as "Group 1 Mortgage Loans", including in
each case any Mortgage Loans delivered in replacement thereof.

          Group 1 Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as Group 1 Mortgage Loans
on the Closing Date, which shall equal $1,053.70.

          Group 2 Mortgage Loans: The group of Mortgage Loans identified in
the related Mortgage Loan Schedule as "Group 2 Mortgage Loans", including in
each case any Mortgage Loans delivered in replacement thereof.

          Group 2 Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as Group 2 Mortgage Loans
on the Closing Date, which shall equal $25.33.

          Index: As to any Adjustable Rate Mortgage Loan on any Adjustment
Date related thereto, the index for the adjustment of the Mortgage Rate set
forth as such in the related Mortgage Note, such index in general being the
average of the London interbank offered rates for six-month U.S. dollar
deposits in the London market, as set forth in The Wall Street Journal, as
most recently announced as of a date 45 days prior to such Adjustment Date or,
if the Index ceases to be published in The Wall Street Journal or becomes
unavailable for any reason, then the Index shall be a new index selected by
the Master Servicer, based on comparable information.

          Initial Adjustment Date: As to any Adjustable Rate Mortgage Loan,
the first Adjustment Date following the origination of such Mortgage Loan.

          Initial Certificate Account Deposit: An amount equal to the
aggregate of all amounts in respect of (i) principal of the Initial Mortgage
Loans due after the Initial Cut-off Date and received by the Master Servicer
before the Closing Date and not applied in computing the Cut-off Date
Principal Balance thereof and (ii) interest on the Initial Mortgage Loans due
after the Initial Cut-off Date and received by the Master Servicer before the
Closing Date.

                                      27
<PAGE>

          Initial Certificate Principal Balance: With respect to any
Certificate (other than the Class C Certificates) the Certificate Principal
Balance of such Certificate or any predecessor Certificate on the Closing
Date.

          Initial Cut-off Date: In the case of any Initial Mortgage Loan, the
later of (x) January 1, 2006 and (y) the date of origination of such Mortgage
Loan.

          Initial Mortgage Loan: A Mortgage Loan conveyed to the Trustee on
the Closing Date pursuant to this Agreement as identified on the Mortgage Loan
Schedule delivered to the Trustee on the Closing Date.

          Initial Mortgage Rate: As to each Adjustable Rate Mortgage Loan, the
Mortgage Rate in effect prior to the Initial Adjustment Date.

          Initial Periodic Rate Cap: With respect to each Adjustable Rate
Mortgage Loan, the percentage specified in the related Mortgage Note that
limits the permissible increase or decrease in the Mortgage Rate on its
initial Adjustment 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 Policy.

          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 Master Servicer or the trustee under the deed of trust and
are not applied to the restoration of the related Mortgaged Property or
released to the Mortgagor in accordance with the procedures that the Master
Servicer would follow in servicing mortgage loans held for its own account, in
each case other than any amount included in such Insurance Proceeds in respect
of Insured Expenses and received either prior to or in connection with such
Mortgage Loan becoming a Liquidated Mortgage Loan.

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

          Interest Bearing Certificates: The Fixed Rate Certificates and the
Adjustable Rate Certificates.

          Interest Carry Forward Amount: With respect to each Class of
Interest Bearing Certificates and each Distribution Date, the excess of (i)
the Current Interest for such Class with respect to prior Distribution Dates
over (ii) the amount actually distributed to such Class with respect to
interest on such prior Distribution Dates.

          Interest Determination Date: With respect to the first Accrual
Period for the Adjustable Rate Certificates, February 8, 2006. With respect to
any Accrual Period for the Adjustable Rate Certificates thereafter, the second
LIBOR Business Day preceding the commencement of such Accrual Period.

                                      28
<PAGE>

          Interest Funds: With respect to any Distribution Date and Loan
Group, the Interest Remittance Amount for such Loan Group and Distribution
Date, less the portion of the Trustee Fee for such Distribution Date allocable
to such Loan Group.

          Interest Remittance Amount: With respect to the Mortgage Loans in
each Loan Group and any Distribution Date, (x) the sum, without duplication,
of (i) all scheduled interest collected during the related Due Period with
respect to the related Mortgage Loans less the related Servicing Fee, (ii) all
interest on prepayments received during the related Prepayment Period with
respect to such Mortgage Loans, other than Prepayment Interest Excess, (iii)
all related Advances relating to interest with respect to such Mortgage Loans,
(iv) all related Compensating Interest with respect to such Mortgage Loans,
(v) Liquidation Proceeds with respect to such Mortgage Loans collected during
the related Due Period (to the extent such Liquidation Proceeds relate to
interest) and (vi) the related Seller Shortfall Interest Requirement, less (y)
all reimbursements to the Master Servicer during the related Due Period for
Advances of interest previously made allocable to such Loan Group.

          Investment Letter: As defined in Section 5.02(b).

          Item 1119 Party: The Depositor, any Seller, the Master Servicer, the
Trustee, any Subservicer, any originator identified in the Prospectus
Supplement, the Corridor Contract Counterparty, the Swap Counterparty and any
other material transaction party, as identified in Exhibit Z hereto, as
updated pursuant to Section 11.04.

          Latest Possible Maturity Date: The Distribution Date following the
third anniversary of the scheduled maturity date of the Mortgage Loan having
the latest scheduled maturity date as of the Cut-off Date.

          LIBOR Business Day: Any day on which banks in the City of London,
England and New York City, U.S.A. are open and conducting transactions in
foreign currency and exchange.

          Limited Exchange Act Reporting Obligations: The obligations of the
Master Servicer under Section 3.17(b), Section 6.02 and Section 6.04 with
respect to notice and information to be provided to the Depositor and Article
XI (except Section 11.07(a)(1) and (2)).

          Liquidated Mortgage 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 Master Servicer has certified
in the related Prepayment Period that it has received all amounts it expects
to receive in connection with such liquidation.

          Liquidation Proceeds: Amounts, including Insurance Proceeds,
received in connection with the partial or complete liquidation of Mortgage
Loans, whether through trustee's sale, foreclosure sale or otherwise or
amounts received in connection with any condemnation or partial release of a
Mortgaged Property and any other proceeds received in connection with an REO
Property received in connection with or prior to such Mortgage Loan becoming a
Liquidated Mortgage Loan (other than the amount of such net proceeds
representing any profit

                                      29
<PAGE>

realized by the Master Servicer in connection with the disposition of any such
properties), less the sum of related unreimbursed Advances, Servicing Fees and
Servicing Advances.

          Loan Group: Any of Loan Group 1 or Loan Group 2.

          Loan Group 1: The Group 1 Mortgage Loans.

          Loan Group 1 Tax Net Rate Cap: As defined in the Preliminary
Statement.

          Loan Group 2: The Group 2 Mortgage Loans.

          Loan Group 2 Tax Net Rate Cap: As defined in the Preliminary
Statement.

          Loan Number and Borrower Identification Mortgage Loan Schedule: With
respect to any Subsequent Transfer Date, the Loan Number and Borrower
Identification Mortgage Loan Schedule delivered in connection with such
Subsequent Transfer Date pursuant to Section 2.01(f). Each Loan Number and
Borrower Identification Mortgage Loan Schedule shall contain the information
specified in the definition of "Mortgage Loan Schedule" with respect to the
Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date, and each
Loan Number and Borrower Identification Mortgage Loan Schedule shall be deemed
to be included in the Mortgage Loan Schedule.

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

          Majority Holder: The Holders of Certificates evidencing at least 51%
of the Voting Rights allocated to such Class of Certificates.

          Master Servicer: Countrywide Home Loans Servicing LP, a Texas
limited partnership, and its successors and assigns, in its capacity as master
servicer hereunder.

          Master Servicer Advance Date: As to any Distribution Date, the
Business Day immediately preceding such Distribution Date.

          Master Servicer Prepayment Charge Payment Amount: The amounts (i)
payable by the Master Servicer in respect of any Prepayment Charges waived
other than in accordance with the standard set forth in the first sentence of
Section 3.19(a), or (ii) collected from the Master Servicer in respect of a
remedy for the breach of the representation made by CHL set forth in Section
3.19(c).

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

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

                                      30
<PAGE>

          MERS Mortgage Loan: Any Mortgage Loan registered with MERS on the
MERS(R) System.

          MERS(R) System: The system of recording transfers of mortgages
electronically maintained by MERS.

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

          Minimum Mortgage Rate: With respect to each Adjustable Rate Mortgage
Loan, the minimum rate of interest set forth as such in the related Mortgage
Note.

          Modified Mortgage Loan: As defined in Section 3.12(a).

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

          Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.05.

          Moody's: Moody's Investors Service, Inc. and its successors.

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

          Mortgage File: The mortgage documents listed in Section 2.01 hereof
pertaining to a particular Mortgage Loan and any additional documents
delivered to the Trustee to be added to the Mortgage File pursuant to this
Agreement.

          Mortgage Loan Schedule: The list of Mortgage Loans (as from time to
time amended by the Master Servicer to reflect the deletion of Liquidated
Mortgage Loans and Deleted Mortgage Loans and the addition of (x) Replacement
Mortgage Loans pursuant to the provisions of this Agreement and (y) Subsequent
Mortgage Loans pursuant to the provisions of this Agreement and any Subsequent
Transfer Agreement) transferred to the Trustee as part of the Trust Fund and
from time to time subject to this Agreement, attached hereto as Exhibit F-1,
setting forth in the following information with respect to each Mortgage Loan:

                  (i)    the loan number;

                  (ii)   the Loan Group;

                  (iii)  the Appraised Value;

                  (iv)   the Initial Mortgage Rate;

                  (v)    the maturity date;

                  (vi)   the original principal balance;

                                      31
<PAGE>

                  (vii)  the Cut-off Date Principal Balance;

                  (viii) the first payment date of the Mortgage Loan;

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

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

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

                  (xii)   a code indicating whether the residential dwelling is
            either (a) a detached single-family dwelling, (b) a two-family
            residential property, (c) a three-family residential property, (d)
            a four-family residential property, (e) planned unit development,
            (f) a low-rise condominium unit, (g) a high-rise condominium unit
            or (h) manufactured housing;

                  (xiii)  [Reserved];

                  (xiv)   [Reserved];

                  (xv)    [Reserved];

                  (xvi)   the purpose of the Mortgage Loan;

                  (xvii)  with respect to each Adjustable Rate Mortgage Loan:

                  (a)     the frequency of each Adjustment Date;

                  (b)     the next Adjustment Date;

                  (c)     the Maximum Mortgage Rate;

                  (d)     the Minimum Mortgage Rate;

                  (e)     the Mortgage Rate as of the Cut-off Date;

                  (f)     the related Initial Periodic Rate Cap and Subsequent
                          Periodic Rate Cap; and

                  (g)     the Gross Margin;

                  (xviii) a code indicating whether the Mortgage Loan is a CHL
                          Mortgage Loan, a Park Monaco Mortgage Loan or a Park
                          Sienna Mortgage Loan;

                  (xix)   the premium rate for any lender-paid mortgage
                          insurance, if applicable; and

                                      32
<PAGE>

                  (xx)    a code indicating whether the Mortgage Loan is a Fixed
                          Rate Mortgage Loan or an Adjustable Rate Mortgage
                          Loan.

Such schedule shall also set forth the total of the amounts described under
(vii) above for all of the Mortgage Loans and for each Loan Group. The
Mortgage Loan Schedule shall be deemed to include each Loan Number and
Borrower Identification Mortgage Loan Schedule delivered pursuant to Section
2.01(f) and all the related Subsequent Mortgage Loans and Subsequent Mortgage
Loan information included therein.

          Mortgage Loans: Such of the mortgage loans transferred and assigned
to the Trustee pursuant to the provisions hereof and any Subsequent Transfer
Agreement as from time to time are held as 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. Any mortgage loan that was intended by the
parties hereto to be transferred to the Trust Fund as indicated by such
Mortgage Loan Schedule which is in fact not so transferred for any reason,
including a breach of the representation contained in Section 2.02 hereof,
shall continue to be a Mortgage Loan hereunder until the Purchase Price with
respect thereto has been paid to the Trust Fund.

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

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

          Mortgage Rate: The annual rate of interest borne by a Mortgage Note
from time to time.

          Mortgaged Property: The underlying property securing a Mortgage
Loan.

          Mortgagor: The obligors on a Mortgage Note.

          NAS Factor: For any Distribution Date set forth below, the
percentage set forth in the following table:

        Distribution Date                                      Percentage
        --------------------------------------------------- ----------------
             February 2006 -- January 2009                         0%
             February 2009 -- January 2011                        45%
             February 2011 -- January 2012                        80%
             February 2012 -- January 2013                        100%
             February 2013 and thereafter                         300%

          NAS Principal Distribution Amount: For any Distribution Date, an
amount equal to the product of (i) the Class AF-6 Portion for such
Distribution Date, (ii) any amounts distributed to the Class AF Certificates
pursuant to Section 4.04(c), 4.04(e)(1) and 4.04(f)(4) for such Distribution
Date and (iii) the NAS Factor for such Distribution Date.

                                      33
<PAGE>

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

          Net Rate Cap: With respect to any Distribution Date, (i) with
respect to each Class of Class AF Certificates and the Fixed Rate Subordinate
Certificates, the Fixed Rate Net Rate Cap and (ii) with respect to each Class
of Class AV Certificates and the Adjustable Rate Subordinate Certificates, the
Adjustable Rate Net Rate Cap.

          Net Rate Carryover: With respect to any Class of Interest Bearing
Certificates and any Distribution Date, the sum of (A) the excess of (i) the
amount of interest that such Class would otherwise have accrued for such
Distribution Date had the Pass-Through Rate for such Class and the related
Accrual Period not been determined based on the applicable Net Rate Cap, over
(ii) the amount of interest accrued on such Class at the applicable Net Rate
Cap for such Distribution Date and (B) the Net Rate Carryover for such Class
for all previous Distribution Dates not previously paid pursuant to Section
4.04, together with interest thereon at the then-applicable Pass-Through Rate
for such Class, without giving effect to the applicable Net Rate Cap.

          Net Swap Payment: With respect to any Distribution Date and payment
by the Swap Contract Administrator to the Swap Counterparty, the excess, if
any, of the "Fixed Amount" (as defined in the Swap Contract) with respect to
such Distribution Date over the "Floating Amount" (as defined in the Swap
Contract) with respect to such Distribution Date. With respect to any
Distribution Date and payment by the Swap Counterparty to the Swap Contract
Administrator, the excess, if any, of the "Floating Amount" (as defined in the
Swap Contract) with respect to such Distribution Date over the "Fixed Amount"
(as defined in the Swap Contract) with respect to such Distribution Date.

          NIM Insurer: Any insurer guarantying at the request of CHL certain
payments under notes backed or secured by the Class C or Class P Certificates.

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

          Non-United States Person: A Person that is not a citizen or resident
of the United States, a corporation, partnership, 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.

          Officer's Certificate: A certificate (i) in the case of the
Depositor, signed by the Chairman of the Board, the Vice Chairman of the
Board, the President, a Managing Director, a

                                      34
<PAGE>

Vice President (however denominated), an Assistant Vice President, the
Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant
Secretaries of the Depositor, (ii) in the case of the Master Servicer, signed
by the President, an Executive Vice President, a Vice President, an Assistant
Vice President, the Treasurer, or one of the Assistant Treasurers or Assistant
Secretaries of Countrywide GP, Inc., its general partner, (iii) if provided
for in this Agreement, signed by a Servicing Officer, as the case may be, and
delivered to the Depositor and the Trustee, as the case may be, as required by
this Agreement, or (iv) in the case of any other Person, signed by an
authorized officer of such Person.

          One-Month LIBOR: With respect to any Accrual Period for the
Adjustable Rate Certificates, the rate determined by the Trustee on the
related Interest Determination Date on the basis of the rate for U.S. dollar
deposits for one month as quoted on the Bloomberg Terminal on such Interest
Determination Date; provided that the parties hereto acknowledge that
One-Month LIBOR calculated for the first Accrual Period for the Adjustable
Rate Certificates shall equal 4.57% per annum. If such rate is not quoted on
the Bloomberg Terminal (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 Trustee), One-Month LIBOR for the applicable
Accrual Period for the Adjustable Rate Certificates will be the Reference Bank
Rate. If no such quotations can be obtained by the Trustee and no Reference
Bank Rate is available, One-Month LIBOR will be One-Month LIBOR applicable to
the preceding Accrual Period for the Adjustable Rate Certificates.

          Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Depositor or the Master Servicer, reasonably acceptable to each
addressee of such opinion; provided that with respect to Section 6.04 or
10.01, or the interpretation or application of the REMIC Provisions, such
counsel must (i) in fact be independent of the Depositor and the Master
Servicer, (ii) not have any direct financial interest in the Depositor or the
Master Servicer or in any affiliate of either and (iii) not be connected with
the Depositor or the Master Servicer as an officer, employee, promoter,
underwriter, trustee, partner, director or person performing similar
functions.

          Optional Termination: The termination of the Trust Fund provided
hereunder pursuant to the purchase of the Mortgage Loans pursuant to clause
(a) of the first sentence of Section 9.01 hereof.

          Optional Termination Date: The first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans is less than or equal
to 10% of the sum of the aggregate Cut-off Date Principal Balance of the
Initial Mortgage Loans and the Pre-Funded Amount.

          Original Value: The value of the property underlying a Mortgage Loan
based, in the case of the purchase of the underlying Mortgaged Property, on
the lower of an appraisal satisfactory to the Master Servicer or the sales
price of such property or, in the case of a refinancing, on an appraisal
satisfactory to the Master Servicer.

          OTS: The Office of Thrift Supervision.

                                      35
<PAGE>

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

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

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

          Outstanding Mortgage Loan: As of any Distribution Date, 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 Mortgage Loan, prior to the end of the related Prepayment Period.

          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.

          Park Monaco: Park Monaco Inc., a Delaware corporation, and its
successors and assigns.

          Park Monaco Mortgage Loans: The Mortgage Loans identified as such on
the Mortgage Loan Schedule for which Park Monaco is the applicable Seller.

          Park Sienna: Park Sienna LLC, a Delaware limited liability company,
and its successors and assigns.

          Park Sienna Mortgage Loans: The Mortgage Loans identified as such on
the Mortgage Loan Schedule for which Park Sienna is the applicable Seller.

          Pass-Through Margin: With respect to any Accrual Period and Class of
Adjustable Rate Certificates, the per annum rate indicated in the following
table:

          ------------------------------------ ------------ --------------
                         Class                 Margin (1)    Margin (2)
          ------------------------------------ ------------ --------------
          Class AF-1 .......................     0.130%        0.130%
          ------------------------------------ ------------ --------------
          Class AV-1 .......................     0.080%        0.160%
          ------------------------------------ ------------ --------------
          Class AV-2 .......................     0.190%        0.380%
          ------------------------------------ ------------ --------------
          Class AV-3 .......................     0.300%        0.600%
          ------------------------------------ ------------ --------------
          Class MV-1 .......................     0.390%        0.585%
          ------------------------------------ ------------ --------------
          Class MV-2 .......................     0.410%        0.615%
          ------------------------------------ ------------ --------------
          Class MV-3 .......................     0.440%        0.660%
          ------------------------------------ ------------ --------------
          Class MV-4 .......................     0.560%        0.840%
          ------------------------------------ ------------ --------------
          Class MV-5 .......................     0.600%        0.900%
          ------------------------------------ ------------ --------------
          Class MV-6 .......................     0.660%        0.990%
          ------------------------------------ ------------ --------------
          Class MV-7 .......................     1.300%        1.950%
          ------------------------------------ ------------ --------------
          Class MV-8 .......................     1.500%        2.250%
          ------------------------------------ ------------ --------------

                                      36
<PAGE>

          ------------------------------------ ------------ --------------
                         Class                 Margin (1)    Margin (2)
          ------------------------------------ ------------ --------------
          Class BV .........................     2.250%        3.375%
          ------------------------------------ ------------ --------------

(1)     For any Accrual Period relating to any Distribution Date occurring on
        or prior to the Optional Termination Date.
(2)     For any Accrual Period relating to any Distribution Date occurring
        after the Optional Termination Date.

          Pass-Through Rate: With respect to any Accrual Period and each Class
of Adjustable Rate Certificates the lesser of (x) One-Month LIBOR for such
Accrual Period plus the Pass-Through Margin for such Class and Accrual Period
and (y) the applicable Net Rate Cap for such Class and the related
Distribution Date. With respect to any Accrual Period and each Class of Fixed
Rate Certificates, the lesser of (x) the per annum rate set forth in the
following table for such Class and Accrual Period and (y) the applicable Net
Rate Cap for such Class and the related Distribution Date.

      ------------------------------- -------------------- -------------------
                                       Pass-Through Rate   Pass-Through Rate
                  Class                       (1)                 (2)
      ------------------------------- -------------------- -------------------
                   AF-2                     5.281%               5.281%
      ------------------------------- -------------------- -------------------
                   AF-3                     5.348%               5.348%
      ------------------------------- -------------------- -------------------
                   AF-4                     5.714%               5.714%
      ------------------------------- -------------------- -------------------
                   AF-5                     5.884%               6.384%
      ------------------------------- -------------------- -------------------
                   AF-6                     5.526%               5.526%
      ------------------------------- -------------------- -------------------
                   MF-1                     5.917%               5.917%
      ------------------------------- -------------------- -------------------
                   MF-2                     6.016%               6.016%
      ------------------------------- -------------------- -------------------
                   MF-3                     6.115%               6.115%
      ------------------------------- -------------------- -------------------
                   MF-4                     6.200%               6.200%
      ------------------------------- -------------------- -------------------
                   MF-5                     6.200%               6.200%
      ------------------------------- -------------------- -------------------
                   MF-6                     6.200%               6.200%
      ------------------------------- -------------------- -------------------
                   MF-7                     6.200%               6.200%
      ------------------------------- -------------------- -------------------
                   MF-8                     6.200%               6.200%
      ------------------------------- -------------------- -------------------
                    BF                      6.200%               6.200%
      ------------------------------- -------------------- -------------------

(1) For any Accrual Period relating to any Distribution Date occurring on or
    prior to the Optional Termination Date.
(2) For any Accrual Period relating to any Distribution Date occurring after
    the Optional Termination Date.

          Percentage Interest: With respect to any Interest Bearing
Certificate, a fraction, expressed as a percentage, the numerator of which is
the Certificate Principal Balance represented by such Certificate and the
denominator of which is the aggregate Certificate Principal Balance of the
related Class. With respect to the Class C, Class P and Class A-R
Certificates, the portion of the Class evidenced thereby, expressed as a
percentage, as stated on the face of such Certificate.

          Performance Certification: As defined in Section 11.05.

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

                                      37
<PAGE>

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

               (ii) general obligations of or obligations guaranteed by any
          state of the United States or the District of Columbia receiving the
          highest long-term debt rating of each Rating Agency, or such lower
          rating as each Rating Agency has confirmed in writing is sufficient
          for the ratings originally assigned to the Certificates by such
          Rating Agency;

               (iii) commercial or finance company paper which is then
          receiving the highest commercial or finance company paper rating of
          each Rating Agency, or such lower rating as each Rating Agency has
          confirmed in writing is sufficient for the ratings originally
          assigned to the Certificates by such Rating Agency;

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

               (v) 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;

               (vi) 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 (except (x) if
          the Rating Agency is Moody's, such rating shall be the highest
          commercial paper rating of S&P for any such securities) and (y), or
          such lower rating as each Rating Agency has confirmed in writing is
          sufficient for the ratings originally assigned to the Certificates
          by such Rating Agency;

               (vii) interests in any money market fund which at the date of
          acquisition of the interests in such fund and throughout the time
          such interests are held in such fund has the highest applicable long
          term rating by each Rating Agency or such lower rating as each
          Rating Agency has confirmed in writing is sufficient for the ratings
          originally assigned to the Certificates by such Rating Agency;

                                      38
<PAGE>

               (viii) short term investment funds sponsored by any trust
          company or national banking association incorporated under the laws
          of the United States or any state 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 each
          Rating Agency has confirmed in writing is sufficient for the ratings
          originally assigned to the Certificates by such Rating Agency; and

               (ix) such other relatively risk free 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, and reasonably acceptable to the
          NIM Insurer, as evidenced by a signed writing delivered by the NIM
          Insurer;

provided, that no such instrument shall be a Permitted Investment if such
instrument (i) evidences the right to receive interest only payments with
respect to the obligations underlying such instrument, (ii) is purchased at a
premium or (iii) is purchased at a deep discount; provided further that no
such instrument shall be a Permitted Investment (A) if such instrument
evidences principal and interest payments derived from obligations underlying
such instrument and the interest payments with respect to such instrument
provide a yield to maturity of greater than 120% of the yield to maturity at
par of such underlying obligations, or (B) if it may be redeemed at a price
below the purchase price (the foregoing clause (B) not to apply to investments
in units of money market funds pursuant to clause (vii) above); provided
further that no amount beneficially owned by any REMIC (including, without
limitation, any amounts collected by the Master Servicer but not yet deposited
in the Certificate Account) may be invested in investments (other than money
market funds) treated as equity interests for Federal income tax purposes,
unless the Master Servicer shall receive an Opinion of Counsel, at the expense
of Master Servicer, to the effect that such investment will not adversely
affect the status of any such REMIC as a REMIC under the Code or result in
imposition of a tax on any such REMIC. Permitted Investments that are subject
to prepayment or call may not be purchased at a price in excess of par.

          Permitted Transferee: Any Person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality
of any of the foregoing, (ii) a foreign government, International Organization
or any agency or instrumentality of either of the foregoing, (iii) an
organization (except certain farmers' cooperatives described in section 521 of
the Code) 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 Class A-R Certificate, (iv) rural electric and
telephone cooperatives described in section 1381(a)(2)(C) of the Code, (v) an
"electing large partnership" as defined in section 775 of the Code, (vi) a
Person that is not a citizen or resident of the United States, a corporation,
partnership, 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, or 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

                                      39
<PAGE>

supervision over the administration of the trust and one or more United States
Persons have authority to control all substantial decisions of the trustor
unless such Person has furnished the transferor and the Trustee with a duly
completed Internal Revenue Service Form W-8ECI, and (vii) any other Person so
designated by the Trustee based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Class A-R Certificate to such Person may cause
any REMIC formed hereunder 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 the Federal Home Loan Mortgage Corporation, a majority
of its board of directors is not selected by such government unit.

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

          Plan: An "employee-benefit plan" as defined in section 3(3) of ERISA
that is subject to Title I of ERISA, a "plan" as defined in section 4975 of
the Code that is subject to section 4975 of the Code, or any person investing
on behalf of or with plan assets (as defined in 29 CFR ss.2510.3-101 or
otherwise under ERISA) of such an employee benefit plan or plan.

          Pool Stated Principal Balance: The aggregate of the Stated Principal
Balances of the Mortgage Loans which were Outstanding Mortgage Loans.

          Pre-Funded Amount: The amount deposited in the Pre-Funding Account
on the Closing Date, which shall equal $1,079.03.

          Pre-Funding Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05 in the name of the Trustee
for the benefit of the Certificateholders and designated "The Bank of New
York, in trust for registered holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-1." Funds in the Pre-Funding Account shall be held
in trust for the Certificateholders for the uses and purposes set forth in
this Agreement and shall not be a part of any REMIC created hereunder,
provided, however that any investment income earned from Permitted Investments
made with funds in the Pre-Funding Account will be for the account of CHL.

          Prepayment Assumption: The applicable rate of prepayment, as
described in the Prospectus Supplement relating to the Certificates.

          Prepayment Charge: With respect to any Mortgage Loan, the charges or
premiums, if any, due in connection with a full or partial prepayment of such
Mortgage Loan within the related Prepayment Charge Period in accordance with
the terms thereof (other than any Master Servicer Prepayment Charge Payment
Amount).

          Prepayment Charge Period: With respect to any Mortgage Loan, the
period of time during which a Prepayment Charge may be imposed.

                                      40
<PAGE>

          Prepayment Charge Schedule: As of the Initial Cut-off Date with
respect to each Initial Mortgage Loan and as of the Subsequent Cut-off Date
with respect to each Subsequent Mortgage Loan, a list attached hereto as
Schedule I (including the Prepayment Charge Summary attached thereto), setting
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 state of origination of the related Mortgage Loan;

               (iv) the date on which the first monthly payment was due on the
          related Mortgage Loan;

               (v) the term of the related Prepayment Charge; and

               (vi) the principal balance of the related Mortgage Loan as of
          the Cut-off Date.

          As of the Closing Date, the Prepayment Charge Schedule shall contain
the necessary information for each Initial Mortgage Loan. The Prepayment
Charge Schedule shall be amended by the Master Servicer upon the sale of any
Subsequent Mortgage Loans to the Trust Fund. In addition, the Prepayment
Charge Schedule shall be amended from time to time by the Master Servicer in
accordance with the provisions of this Agreement and a copy of each related
amendment shall be furnished by the Master Servicer to the Class P and Class C
Certificateholders and the NIM Insurer.

          Prepayment Interest Excess: With respect to any Distribution Date,
for each Mortgage Loan that was the subject of a Principal Prepayment during
the period from the related Due Date to the end of the related Prepayment
Period, any payment of interest received in connection therewith (net of any
applicable Servicing Fee) representing interest accrued for any portion of
such month of receipt.

          Prepayment Interest Shortfall: With respect to any Distribution
Date, for each Mortgage Loan that was the subject of a partial Principal
Prepayment or a Principal Prepayment in full during the period from the
beginning of the related Prepayment Period to the Due Date in such Prepayment
Period (other than a Principal Prepayment in full resulting from the purchase
of a Mortgage Loan pursuant to Section 2.02, 2.03, 2.04, 3.12 or 9.01 hereof)
and for each Mortgage Loan that became a Liquidated Mortgage Loan during the
related Due Period, 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 (or liquidation) or in the
case of a partial Principal Prepayment on the amount of such prepayment (or
Liquidation Proceeds) exceeds (ii) the amount of interest paid or collected in
connection with such Principal Prepayment or such Liquidation Proceeds.

          Prepayment Period: As to any Distribution Date and related Due Date,
the period beginning with the opening of business on the sixteenth day of the
calendar month preceding the

                                      41
<PAGE>

month in which such Distribution Date occurs (or, with respect to the first
Distribution Date, the period beginning with the opening of business on the
day immediately following the Initial Cut-off Date) and ending on the close of
business on the fifteenth day of the month in which such Distribution Date
occurs.

          Prime Rate: The prime commercial lending rate of The Bank of New
York, as publicly announced to be in effect from time to time. The Prime Rate
shall be adjusted automatically, without notice, on the effective date of any
change in such prime commercial lending rate. The Prime Rate is not
necessarily The Bank of New York's lowest rate of interest.

          Principal Distribution Amount: With respect to each Distribution
Date and a Loan Group, the sum of (i) the Principal Remittance Amount for such
Loan Group for such Distribution Date, in the case of Loan Group 2, less any
portion of such amount used to cover any payment due to the Swap Counterparty
with respect to such Distribution Date pursuant to Section 4.09, (ii) the
Extra Principal Distribution Amount for such Loan Group for such Distribution
Date, and (iii) with respect to the Distribution Date immediately following
the end of the Funding Period, the amount, if any, remaining in the
Pre-Funding Account at the end of the Funding Period (net of any investment
income therefrom) allocable to such Loan Group, minus (iv) (a) the Fixed Rate
Overcollateralization Reduction Amount for such Distribution Date, in the case
of Loan Group 1, and (b) the Adjustable Rate Overcollateralization Reduction
Amount for such Distribution Date, in the case of Loan Group 2.

          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, 2.04, 3.12 and 9.01
hereof) that is received in advance of its scheduled Due Date to the extent it
is not accompanied by an amount as to interest representing scheduled interest
due on any date or dates in any month or months subsequent to the month of
prepayment. Partial Principal Prepayments shall be applied by the Master
Servicer in accordance with the terms of the related Mortgage Note.

          Principal Remittance Amount: With respect to the Mortgage Loans in
each Loan Group and any Distribution Date, (a) the sum, without duplication,
of: (i) the scheduled principal collected with respect to the Mortgage Loans
during the related Due Period or advanced with respect to such Distribution
Date, (ii) Principal Prepayments collected in the related Prepayment Period,
with respect to the Mortgage Loans, (iii) the Stated Principal Balance of each
Mortgage Loan that was repurchased by a Seller or purchased by the Master
Servicer with respect to such Distribution Date, (iv) the amount, if any, by
which the aggregate unpaid principal balance of any Replacement Mortgage Loans
delivered by the Sellers in connection with a substitution of a Mortgage Loan
is less than the aggregate unpaid principal balance of any Deleted Mortgage
Loans and (v) all Liquidation Proceeds (to the extent such Liquidation
Proceeds related to principal) and Subsequent Recoveries collected during the
related Due Period; less (b) all Advances relating to principal and certain
expenses reimbursable pursuant to Section 6.03 and reimbursed during the
related Due Period, in each case with respect to such Loan Group.

          Principal Reserve Fund: The separate Eligible Account created and
initially maintained by the Trustee pursuant to Section 3.08 in the name of
the Trustee for the benefit of the Certificateholders and designated "The Bank
of New York in trust for registered Holders of

                                      42
<PAGE>

CWABS, Inc., Asset-Backed Certificates, Series 2006-1". Funds in the
Principal Reserve Fund shall be held in trust for the Certificateholders for
the uses and purposes set forth in this Agreement.

          Private Certificates: The Class MF-7, Class MF-8, Class BF, Class
MV-8, Class BV, Class C and Class P Certificates.

          Prospectus: The prospectus dated January 26, 2006, relating to
asset-backed securities to be sold by the Depositor.

          Prospectus Supplement: The prospectus supplement dated February 8,
2006, relating to the public offering of the certain Classes of Certificates
offered thereby.

          PTCE 95-60: As defined in Section 5.02(b).

          PUD: A Planned Unit Development.

          Purchase Price: With respect to any Mortgage Loan (x) required to be
(1) repurchased by a Seller or purchased by the Master Servicer, as
applicable, pursuant to Section 2.02, 2.03 or 3.12 hereof or (2) repurchased
by the Depositor pursuant to Section 2.04 hereof, or (y) that the Master
Servicer has a right to purchase pursuant to Section 3.12 hereof, an amount
equal to the sum of (i) 100% of the unpaid principal balance (or, if such
purchase or repurchase, as the case may be, is effected by the Master
Servicer, the Stated Principal Balance) of the Mortgage Loan as of the date of
such purchase, (ii) accrued interest thereon at the applicable Mortgage Rate
(or, if such purchase or repurchase, as the case may be, is effected by the
Master Servicer, at the Net Mortgage Rate) from (a) the date through which
interest was last paid by the Mortgagor (or, if such purchase or repurchase,
as the case may be, is effected by the Master Servicer, the date through which
interest was last advanced and not reimbursed by the Master Servicer) to (b)
the Due Date in the month in which the Purchase Price is to be distributed to
Certificateholders and (iii) any costs, expenses and damages incurred by the
Trust Fund resulting from any violation of any predatory or abusive lending
law in connection with such Mortgage Loan.

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

          Realized Loss: With respect to each Liquidated Mortgage Loan, an
amount (not less than zero or more than the Stated Principal Balance of the
Mortgage Loan) as of the date of such liquidation, equal to (i) the Stated
Principal Balance of such Liquidated Mortgage Loan as of the date of such
liquidation, minus (ii) the Liquidation Proceeds, if any, received in
connection with such liquidation during the month in which such liquidation
occurs, to the extent applied as recoveries of principal of the Liquidated
Mortgage Loan. With respect to each Mortgage Loan that has become the subject
of a Deficient Valuation, (i) if the value of the related Mortgaged Property
was reduced below the principal balance of the related Mortgage Note, the
amount by which the value of the Mortgaged Property was reduced below the
principal balance of the

                                      43
<PAGE>

related Mortgage Note, and (ii) if the principal amount due under the related
Mortgage Note has been reduced, the difference between the principal balance
of the Mortgage Loan outstanding immediately prior to such Deficient Valuation
and the principal balance of the Mortgage Loan as reduced by the Deficient
Valuation. With respect to each Mortgage Loan that has become the subject of a
Debt Service Reduction and any Distribution Date, the amount, if any, by which
the related Scheduled Payment was reduced.

          Record Date: With respect to any Distribution Date and the
Adjustable Rate Certificates, the Business Day immediately preceding such
Distribution Date, or if such Certificates are no longer Book-Entry
Certificates, the last Business Day of the month preceding the month of such
Distribution Date. With respect to the Fixed Rate Certificates and the Class
A-R, Class C and Class P Certificates and the first Distribution Date, the
Closing Date, and with respect to any other Distribution Date, the last
Business Day of the month preceding the month of a Distribution Date.

          Reference Bank Rate: With respect to any Accrual Period, 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 amounts approximately equal to
the outstanding aggregate Certificate Principal Balance of the Adjustable Rate
Certificates on such Interest Determination Date, 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 Trustee, as of
11:00 a.m., New York City time, on such date for loans in U.S. dollars to
leading European banks for a period of one month in amounts approximately
equal to the aggregate Certificate Principal Balance of the Adjustable Rate
Certificates on such Interest Determination Date.

          Reference Banks: Barclays Bank PLC, Deutsche Bank and NatWest, N.A.,
provided that if any of the foregoing banks are not suitable to serve as a
Reference Bank, then any leading banks selected by the Trustee which are
engaged in transactions in Eurodollar deposits in the international
Eurocurrency market (i) with an established place of business in London,
England, (ii) not controlling, under the control of or under common control
with the Depositor, CHL or the Master Servicer and (iii) which have been
designated as such by the Trustee.

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

          Regular Certificate: Any Certificate other than the Class A-R
Certificates.

          Regulation AB: Subpart 229.1100 - Asset Backed Securities
(Regulation AB), 17 C.F.R. ss.ss. 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

                                      44
<PAGE>

(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.

          Relief Act: The Servicemembers Civil Relief Act.

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

          Remittance Report: A report prepared by the Master Servicer and
delivered to the Trustee and the NIM Insurer in accordance with Section 4.04.

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

          Replacement Mortgage Loan: A Mortgage Loan substituted by a Seller
for a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in a Request for File Release, (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) with respect to any Fixed
Rate Mortgage Loan, have a Mortgage Rate not less than or no more than 1% per
annum higher than the Mortgage Rate of the Deleted Mortgage Loan and, with
respect to any Adjustable Rate Mortgage Loan: (a) have a Maximum Mortgage Rate
no more than 1% per annum higher or lower than the Maximum Mortgage Rate of
the Deleted Mortgage Loan; (b) have a Minimum Mortgage Rate no more than 1%
per annum higher or lower than the Minimum Mortgage Rate of the Deleted
Mortgage Loan; (c) have the same Index and intervals between Adjustment Dates
as that of the Deleted Mortgage Loan; (d) have a Gross Margin not more than 1%
per annum higher or lower than that of the Deleted Mortgage Loan; and (e) have
an Initial Periodic Rate Cap and a Subsequent Periodic Rate Cap each not more
than 1% lower than that of the Deleted Mortgage Loan; (iii) have the same or
higher credit quality characteristics than that of the Deleted Mortgage Loan;
(iv) be accruing interest at a rate not more than 1% per annum higher or lower
than that of the Deleted Mortgage Loan; (v) have a Loan-to-Value Ratio no
higher than that of the Deleted Mortgage Loan; (vi) have a remaining term to
maturity not greater than (and not more than one year less than) that of the
Deleted Mortgage Loan; (vii) not permit conversion of the Mortgage Rate from a
fixed rate to a variable rate or vice versa; (viii) provide for a Prepayment
Charge on terms substantially similar to those of the Prepayment Charge, if
any, of the Deleted Mortgage Loan; (ix) have the same occupancy type and lien
priority as the Deleted Mortgage Loan; and (x) comply with each representation
and warranty set forth in Section 2.03 as of the date of substitution;
provided, however, that notwithstanding the foregoing, to the extent that
compliance with clause (x) of this definition would cause a proposed
Replacement Mortgage Loan to fail to comply with one or more of clauses (i),
(ii), (iv), (viii) and/or (ix) of this definition, then such proposed
Replacement Mortgage Loan must comply with clause (x) and need not comply with
one or more of clauses (i), (ii), (iv), (viii) and/or (ix), to the extent, and
only to the extent, necessary to assure that the Replacement Mortgage Loan
otherwise complies with clause (x).

                                      45
<PAGE>

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

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

          (b) termination of a Transaction Document (other than by expiration
of the agreement on its stated termination date or as a result of all parties
completing their obligations under such agreement), even if the Depositor is
not a party to such agreement (e.g., a servicing agreement with a servicer
contemplated by Item 1108(a)(3) of Regulation AB);

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

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

          (e) any amendment to this Agreement;

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

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

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

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

                                      46
<PAGE>

          Representing Party: As defined in Section 2.03(e).

          Request for Document Release: A Request for Document Release
submitted by the Master Servicer to the Trustee, substantially in the form of
Exhibit M.

          Request for File Release: A Request for File Release submitted by
the Master Servicer to the Trustee, substantially in the form of Exhibit N.

          Required Carryover Reserve Fund Deposit: With respect to any
Distribution Date, an amount equal to the excess of (i) $1,000 over (ii) the
amount of funds on deposit in the Carryover Reserve Fund.

          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.

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

          Rolling Sixty-Day Delinquency Rate: With respect to any Distribution
Date and any Loan Group or Loan Groups, the average of the Sixty-Day
Delinquency Rates for such Loan Group or Loan Groups and such Distribution
Date and the two immediately preceding Distribution Dates.

          Rule 144A: Rule 144A under the Securities Act.

          Rule 144A Letter: As defined in Section 5.02(b).

          S&P: Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. and its successors.

          Sarbanes-Oxley Certification: As defined in Section 11.05.

          Scheduled Payment: With respect to any Mortgage Loan, the scheduled
monthly payment of principal and/or interest due on any Due Date on such
Mortgage Loan which is payable by the related Mortgagor from time to time
under the related Mortgage Note, determined: (a) after giving effect to (i)
any Deficient Valuation and/or Debt Service Reduction with respect to such
Mortgage Loan and (ii) any reduction in the amount of interest collectible
from the related Mortgagor pursuant to the Relief Act or any similar state or
local law; (b) without giving effect to any extension granted or agreed to by
the Master Servicer pursuant to Section 3.05(a); and (c) on the assumption
that all other amounts, if any, due under such Mortgage Loan are paid when
due.

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

                                      47
<PAGE>

          Sellers: CHL, in its capacity as seller of the CHL Mortgage Loans to
the Depositor, Park Monaco, in its capacity as seller of the Park Monaco
Mortgage Loans to the Depositor and Park Sienna, in its capacity as seller of
the Park Sienna Mortgage Loans to the Depositor.

          Seller Shortfall Interest Requirement: With respect to the
Distribution Date in each of February 2006, March 2006 and April 2006, is the
sum of:

          (a) the product of: (1) the excess of the aggregate Stated Principal
Balance for such Distribution Date of all the Mortgage Loans in the Mortgage
Pool (including the Subsequent Mortgage Loans, if any) owned by the Trust Fund
at the beginning of the related Due Period, over the aggregate Stated
Principal Balance for such Distribution Date of such Mortgage Loans (including
such Subsequent Mortgage Loans, if any) that have a scheduled payment of
interest due in the related Due Period, and (2) a fraction, the numerator of
which is the weighted average Net Mortgage Rate of all the Mortgage Loans in
the Mortgage Pool (including such Subsequent Mortgage Loans, if any) (weighted
on the basis of the Stated Principal Balances thereof for such Distribution
Date) and the denominator of which is 12; and

          (b) the lesser of:

              (i) the product of: (1) the amount on deposit in the Pre-Funding
Account at the beginning of the related Due Period, and (2) a fraction, the
numerator of which is the weighted average Net Mortgage Rate of the Mortgage
Loans (including Subsequent Mortgage Loans, if any) owned by the Trust Fund at
the beginning of the related Due Period (weighted on the basis of the Stated
Principal Balances thereof for such Distribution Date) and the denominator of
which is 12; and

              (ii) the excess of (x) the sum of the amount of Current Interest
and Interest Carry Forward Amount due and payable on the Fixed Rate
Certificates and the Adjustable Rate Certificates, in each case for such
Distribution Date, over (y) the sum of (A) Interest Funds (less any portion of
Interest Funds for Loan Group 2 allocated to the Swap Trust to cover any Net
Swap Payment due to the Swap Counterparty with respect to such Distribution
Date) otherwise available to pay the amount specified in clause (b)(ii)(x)
(after giving effect to the addition of any amounts in clause (a) of this
definition of Seller Shortfall Interest Requirement to Interest Funds for such
Distribution Date) and (B) any Net Swap Payment received by the Swap Contract
Administrator from the Swap Counterparty for such Distribution Date and
allocated to the Swap Trust to pay Current Interest and Interest Carry Forward
Amounts on the Class AV Certificates and the Adjustable Rate Subordinate
Certificates for such Distribution Date.

          Senior Certificates: The Class AF, Class AV and Class A-R
Certificates.

          Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Master Servicer
of its servicing obligations hereunder, including, but not limited to, the
cost of (i) the preservation, restoration and protection of a Mortgaged
Property, (ii) any enforcement or judicial proceedings, including

                                      48
<PAGE>

foreclosures, (iii) the management and liquidation of any REO Property and
(iv) compliance with the obligations under Section 3.10.

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

          Servicing Fee: As to each Mortgage Loan and any Distribution Date,
an amount equal to one month's interest at the Servicing Fee Rate on the
Stated Principal Balance of such Mortgage Loan for the preceding Distribution
Date or, in the event of any payment of interest that accompanies a Principal
Prepayment in full made by the Mortgagor, interest at the Servicing Fee Rate
on the Stated Principal Balance of such Mortgage Loan for the period covered
by such payment of interest.

          Servicing Fee Rate: With respect to each Mortgage Loan, 0.50% per
annum.

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

          Sixty-Day Delinquency Rate: With respect to any Distribution Date
and any Loan Group or Loan Groups, a fraction, expressed as a percentage, the
numerator of which is the aggregate Stated Principal Balance for such
Distribution Date of all Mortgage Loans in such Loan Group or Loan Groups 60
or more days delinquent as of the close of business on the last day of the
calendar month preceding such Distribution Date (including Mortgage Loans in
foreclosure, bankruptcy and REO Properties) and the denominator of which is
the aggregate Stated Principal Balance for such Distribution Date of all
Mortgage Loans in such Loan Group or Loan Groups.

          Stated Principal Balance: With respect to any Mortgage Loan or
related REO Property (i) as of the Cut-off Date, the unpaid principal balance
of the Mortgage Loan as of such date (before any adjustment to the
amortization schedule for any moratorium or similar waiver or grace period),
after giving effect to any partial prepayments or Liquidation Proceeds
received prior to such date and to the payment of principal due on or prior to
such date and irrespective any delinquency in payment by the related
Mortgagor, and (ii) as of any other Distribution Date, the Stated Principal
Balance of the Mortgage Loan as of its Cut-off Date, minus the sum of (a) the
principal portion of the Scheduled Payments (x) due with respect to such
Mortgage Loan during each Due Period ending prior to such Distribution Date
and (y) that were received by the Master Servicer as of the close of business
on the Determination Date related to such Distribution Date or with respect to
which Advances were made as of the Master Servicer Advance Date related to
such Distribution Date, (b) all Principal Prepayments with respect to such
Mortgage Loan received by the Master Servicer during each Prepayment Period
ending prior to such Distribution Date and (c) all Liquidation Proceeds
collected with respect to such Mortgage Loan during each Due Period ending
prior to such Distribution Date, to the extent applied by the Master Servicer
as recoveries of principal in accordance with Section 3.12. The Stated
Principal Balance of any Mortgage Loan that becomes a Liquidated Mortgage Loan
will be zero on each date following the Due Period in which such Mortgage Loan
becomes a

                                      49
<PAGE>

Liquidated Mortgage Loan. References herein to the Stated Principal Balance of
the Mortgage Loans at any time shall mean the aggregate Stated Principal
Balance of all Mortgage Loans in the Trust Fund as of such time, and
references herein to the Stated Principal Balance of a Loan Group at any time
shall mean the aggregate Stated Principal Balance of all Mortgage Loans in
such Loan Group at such time.

          Stepdown Target Subordination Percentage: For each Class of
Subordinate Certificates, the respective percentage indicated in the following
table:

                                           Stepdown Target
                                            Subordination
                                             Percentage
                                        ---------------------
        Class MF-1....................         30.60%
        Class MF-2....................         25.10%
        Class MF-3....................         21.80%
        Class MF-4....................         18.90%
        Class MF-5....................         16.10%
        Class MF-6....................         13.60%
        Class MF-7....................         11.20%
        Class MF-8....................          9.10%
        Class BF .....................          7.10%
        Class MV-1....................         35.40%
        Class MV-2....................         28.10%
        Class MV-3....................         23.90%
        Class MV-4....................         20.10%
        Class MV-5....................         16.30%
        Class MV-6....................         13.00%
        Class MV-7....................          9.90%
        Class MV-8....................          7.10%
        Class BV ....................           5.00%

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

          Subordinate Certificates: The Fixed Rate Subordinate Certificates
and the Adjustable Rate Subordinate Certificates.

          Subsequent Certificate Account Deposit: With respect to any
Subsequent Transfer Date, an amount equal to the aggregate of all amounts in
respect of (i) principal of the related Subsequent Mortgage Loans due after
the related Subsequent Cut-off Date and received by the Master Servicer on or
before such Subsequent Transfer Date and not applied in computing the Cut-off
Date Principal Balance thereof and (ii) interest on the such Subsequent
Mortgage Loans due after such Subsequent Cut-off Date and received by the
Master Servicer on or before the Subsequent Transfer Date.

                                      50
<PAGE>

          Subordinate Component Balance: With respect to any Distribution Date
and Loan Group 2, the excess of the principal balance of Loan Group 2 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received in the Prepayment Period ending during such Due Period)
over the Certificate Principal Balance of the Class AV Certificates.

          Subsequent Cut-off Date: In the case of any Subsequent Mortgage
Loan, the later of (x) the first day of the month of the related Subsequent
Transfer Date and (y) the date of origination of such Subsequent Mortgage
Loan.

          Subsequent Mortgage Loan: Any Mortgage Loan conveyed to the Trustee
on a Subsequent Transfer Date, and listed on the related Loan Number and
Borrower Identification Mortgage Loan Schedule delivered pursuant to Section
2.01(f). When used with respect to a single Subsequent Transfer Date,
"Subsequent Mortgage Loan" shall mean a Subsequent Mortgage Loan conveyed to
the Trustee on such Subsequent Transfer Date.

          Subsequent Periodic Rate Cap: With respect to each Adjustable Rate
Mortgage Loan, the percentage specified in the related Mortgage Note that
limits permissible increases and decreases in the Mortgage Rate on any
Adjustment Date (other than the initial Adjustment Date).

          Subsequent Recoveries: As to any Distribution Date, with respect to
a Liquidated Mortgage Loan that resulted in a Realized Loss in a prior
calendar month, unexpected amounts received by the Master Servicer (net of any
related expenses permitted to be reimbursed pursuant to Section 3.08 and 3.12)
specifically related to such Liquidated Mortgage Loan after the classification
of such Mortgage Loan as a Liquidated Mortgage Loan.

          Subsequent Transfer Agreement: A Subsequent Transfer Agreement
substantially in the form of Exhibit P hereto, executed and delivered by the
Sellers, the Depositor and the Trustee as provided in Section 2.01(d).

          Subsequent Transfer Date: For any Subsequent Transfer Agreement, the
"Subsequent Transfer Date" identified in such Subsequent Transfer Agreement;
provided, however, the Subsequent Transfer Date for any Subsequent Transfer
Agreement must be a Business Day and may not be a date earlier than the date
on which the Subsequent Transfer Agreement is executed and delivered by the
parties thereto pursuant to Section 2.01(d).

          Subsequent Transfer Date Purchase Amount: With respect to any
Subsequent Transfer Date, the "Subsequent Transfer Date Purchase Amount"
identified in the related Subsequent Transfer Agreement which shall be an
estimate of the aggregate Stated Principal Balances of the Subsequent Mortgage
Loans identified in such Subsequent Transfer Agreement.

          Subsequent Transfer Date Transfer Amount: With respect to any
Subsequent Transfer Date, an amount equal to the lesser of (i) the aggregate
Stated Principal Balances as of the related Subsequent Cut-off Dates of the
Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date, as listed
on the related Loan Number and Borrower Identification Mortgage Loan Schedule
delivered pursuant to Section 2.01(f) and (ii) the amount on deposit in the
Pre-Funding Account.

                                      51
<PAGE>

          Subservicer: As defined in Section 3.02(a).

          Subservicing Agreement: As defined in Section 3.02(a).

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

          Substitution Amount: With respect to any Mortgage Loan substituted
pursuant to Section 2.03(e), the excess of (x) the principal balance of the
Mortgage Loan that is substituted for, over (y) the principal balance of the
related substitute Mortgage Loan, each balance being determined as of the date
of substitution.

          Swap Account: The separate Eligible Account created and initially
maintained by the Swap Trustee pursuant to Section 4.09.

          Swap Adjustment Rate: For any Distribution Date, a fraction, the
numerator of which is the sum of (a) the Net Swap Payment payable to the Swap
Counterparty with respect to such Distribution Date times a fraction, the
numerator of which is equal to 360 and the denominator of which is equal to
the actual number of days in the related Accrual Period and (b) any Swap
Termination Payment payable to the Swap Counterparty for such Distribution
Date (other than a Swap Termination Payment due to a Swap Counterparty Trigger
Event), and the denominator of which is equal to the sum of (i) the aggregate
Stated Principal Balance of the Mortgage Loans in Loan Group 2 and (ii) the
amount on deposit in the Pre-Funding Account in respect of Loan Group 2, in
each case, as of such Distribution Date.

          Swap Certificates: The Class AV Certificates and the Adjustable Rate
Subordinate Certificates.

          Swap Contract: With respect to the Swap Certificates, the
transaction evidenced by the related Confirmation (as assigned to the Swap
Contract Administrator pursuant to the Swap Contract Assignment Agreement), a
form of which is attached hereto as Exhibit U.

          Swap Contract Administration Agreement: The swap contract
administration agreement dated as of the Closing Date among CHL, the Trustee
and the Swap Contract Administrator, a form of which is attached hereto as
Exhibit V-2.

          Swap Contract Administrator: The Bank of New York, in its capacity
as swap contract administrator under the Swap Contract Administration
Agreement.

          Swap Contract Assignment Agreement: The Assignment Agreement dated
as of the Closing Date among CHL, the Swap Contract Administrator and the Swap
Counterparty, a form of which is attached hereto as Exhibit V-1.

          Swap Counterparty: Bear Stearns Financial Products Inc. and its
successors.

          Swap Contract Termination Date: The Distribution Date in January
2011.

                                      52
<PAGE>

          Swap Counterparty Trigger Event: A Swap Termination Payment that is
triggered upon (i) an "Event of Default" under the Swap Contract with respect
to which the Swap Counterparty is the sole "Defaulting Party" (as defined in
the Swap Contract) or (ii) a "Termination Event" or "Additional Termination
Event" under the Swap Contract with respect to which the Swap Counterparty is
the sole "Affected Party" (as defined in the Swap Contract).

          Swap Termination Payment: The payment payable to either party under
the Swap Contract due to an early termination of the Swap Contract.

          Swap Trust: The trust fund established by Section 4.09.

          Swap Trustee: The Bank of New York, a New York banking corporation,
not in its individual capacity, but solely in its capacity as trustee for the
benefit of the Holders of the Swap Certificates 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.

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

          Tax Matters Person Certificate: With respect to the Master REMIC,
the Interest Shortfall REMIC and the Expanding Strip REMIC, the Class A-R
Certificate with a Denomination of $0.05 and in the form of Exhibit E hereto.

          Terminator: As defined in Section 9.01.

          Three-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage
Rate that is fixed for 36 months after origination thereof before such
Mortgage Rate becomes subject to adjustment.

          Transaction Documents: This Agreement, the Corridor Contract, the
Corridor Contract Administration Agreement, the Swap Contract, the Swap
Contract Administration Agreement and any other document or agreement entered
into in connection with the Trust Fund, the Certificates or the Mortgage
Loans.

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

          Transfer Affidavit: As defined in Section 5.02(c).

          Transferor Certificate: As defined in Section 5.02(b).

          Trust Fund: The corpus of the trust created hereunder consisting of
(i) the Mortgage Loans and all interest and principal received on or with
respect thereto after the Cut-off Date to the extent not applied in computing
the Cut-off Date Principal Balance thereof, exclusive of interest not required
to be deposited in the Certificate Account pursuant to Section

                                      53
<PAGE>

3.05(b)(2); (ii) the Certificate Account, the Distribution Account, the
Principal Reserve Fund, the Carryover Reserve Fund, the Pre-Funding Account
and all amounts deposited therein pursuant to the applicable provisions of
this Agreement; (iii) the rights to receive certain proceeds of the Corridor
Contract as provided in the Corridor Contract Administration Agreement; (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 Loan; and (vi) all proceeds of
the conversion, voluntary or involuntary, of any of the foregoing into cash or
other liquid property.

          Trustee: The Bank of New York, a New York banking corporation, 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.

          Trustee Advance Notice: As defined in Section 4.01(d).

          Trustee Advance Rate: With respect to any Advance made by the
Trustee pursuant to Section 4.01(d), a per annum rate of interest determined
as of the date of such Advance equal to the Prime Rate in effect on such date
plus 5.00%.

          Trustee Fee: As to any Distribution Date, an amount equal to
one-twelfth of the Trustee Fee Rate multiplied by the sum of (i) the Pool
Stated Principal Balance and (ii) any amounts remaining in the Pre-Funding
Account (excluding any investment earnings thereon) with respect to such
Distribution Date.

          Trustee Fee Rate: With respect to each Mortgage Loan, the per annum
rate agreed upon in writing on or prior to the Closing Date by the Trustee and
the Depositor, which is 0.009% per annum.

          Two-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage
Rate that is fixed for 24 months after origination thereof before such
Mortgage Rate becomes subject to adjustment.

          Underwriter's Exemption: Prohibited Transaction Exemption 2002-41,
67 Fed. Reg. 54487 (2002), as amended (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S. Department
of Labor.

          Underwriters: Countrywide Securities Corporation and Lehman Brothers
Inc.

          Unpaid Realized Loss Amount: For any Class of Certificates and any
Distribution Date, (x) the portion of the aggregate Applied Realized Loss
Amount previously allocated to that Class remaining unpaid from prior
Distribution Dates minus (y) any increase in the Certificate Principal Balance
of that Class due to the allocation of Subsequent Recoveries to the
Certificate Principal Balance of that Class pursuant to Section 4.04(l).

          Variable Pool Net Rate Cap: As defined in the Preliminary Statement.

                                      54
<PAGE>

          Voting Rights: The voting rights of all the Certificates that are
allocated to any Certificates for purposes of the voting provisions hereunder.
Voting Rights allocated to each Class of Certificates shall be allocated 95%
to the Certificates other than the Class A-R, Class CF, Class CV, Class PF and
Class PV Certificates (with the allocation among the Certificates to be in
proportion to the Certificate Principal Balance of each Class relative to the
Certificate Principal Balance of all other such Classes), and 1% to each of
the Class A-R, Class CF, Class CV, Class PF and Class PV Certificates. Voting
Rights will be allocated among the Certificates of each such Class in
accordance with their respective Percentage Interests.

          Section 1.02 Certain Interpretive Provisions.

          All terms defined in this Agreement shall have the defined meanings
when used in any certificate, agreement or other document delivered pursuant
hereto unless otherwise defined therein. For purposes of this Agreement and
all such certificates and other documents, unless the context otherwise
requires: (a) accounting terms not otherwise defined in this Agreement, and
accounting terms partly defined in this Agreement to the extent not defined,
shall have the respective meanings given to them under generally accepted
accounting principles; (b) the words "hereof," "herein" and "hereunder" and
words of similar import refer to this Agreement (or the certificate, agreement
or other document in which they are used) as a whole and not to any particular
provision of this Agreement (or such certificate, agreement or document); (c)
references to any Section, Schedule or Exhibit are references to Sections,
Schedules and Exhibits in or to this Agreement, and references to any
paragraph, subsection, clause or other subdivision within any Section or
definition refer to such paragraph, subsection, clause or other subdivision of
such Section or definition; (d) the term "including" means "including without
limitation"; (e) references to any law or regulation refer to that law or
regulation as amended from time to time and include any successor law or
regulation; (f) references to any agreement refer to that agreement as amended
from time to time; and (g) references to any Person include that Person's
permitted successors and assigns.

                                  ARTICLE II.
                         CONVEYANCE OF MORTGAGE LOANS;
                        REPRESENTATIONS AND WARRANTIES

          Section 2.01 Conveyance of Mortgage Loans.

          (a) Each Seller hereby sells, transfers, assigns, sets over and
otherwise conveys to the Depositor, without recourse, all the right, title and
interest of such Seller in and to the applicable Initial Mortgage Loans,
including all interest and principal received and receivable by such Seller on
or with respect to applicable Initial Mortgage Loans after the Initial Cut-off
Date (to the extent not applied in computing the Cut-off Date Principal
Balance thereof) or deposited into the Certificate Account by the Master
Servicer on behalf of such Seller as part of the Initial Certificate Account
Deposit as provided in this Agreement, other than principal due on the
applicable Initial Mortgage Loans on or prior to the Initial Cut-off Date and
interest accruing prior to the Initial Cut-off Date. The Master Servicer
confirms that, on behalf of the Sellers, concurrently with the transfer and
assignment, it or the applicable Seller has deposited into the Certificate
Account the Initial Certificate Account Deposit.

                                      55
<PAGE>

          Immediately upon the conveyance of the Initial Mortgage Loans
referred to in the preceding paragraph, the Depositor sells, transfers,
assigns, sets over and otherwise conveys to the Trustee for benefit of the
Certificateholders, without recourse, all right title and interest in the
Initial Mortgage Loans.

          CHL further agrees (x) to cause The Bank of New York to enter into
the Corridor Contract Administration Agreement as Corridor Contract
Administrator and (y) to assign all of its right, title and interest in and to
the interest rate corridor transaction evidenced by each Confirmation, and to
cause all of its obligations in respect of such transaction to be assumed by,
the Corridor Contract Administrator, on the terms and conditions set forth in
the Corridor Contract Assignment Agreement.

          (b) Subject to the execution and delivery of the related Subsequent
Transfer Agreement as provided by Section 2.01(d) and the terms and conditions
of this Agreement, each Seller sells, transfers, assigns, sets over and
otherwise conveys to the Depositor, without recourse, on each Subsequent
Transfer Date, all the right, title and interest of such Seller in and to the
related Subsequent Mortgage Loans, including all interest and principal
received and receivable by such Seller on or with respect to such Subsequent
Mortgage Loans after the related Subsequent Cut-off Date (to the extent not
applied in computing the Cut-off Date Principal Balance thereof) or deposited
into the Certificate Account by the Master Servicer on behalf of such Seller
as part of any related Subsequent Certificate Account Deposit as provided in
this Agreement, other than principal due on such Subsequent Mortgage Loans on
or prior to the related Subsequent Cut-off Date and interest accruing prior to
the related Subsequent Cut-off Date.

          Immediately upon the conveyance of the Subsequent Mortgage Loans
referred to in the preceding paragraph, the Depositor sells, transfers,
assigns, sets over and otherwise conveys to the Trustee for benefit of the
Certificateholders, without recourse, all right title and interest in the
Subsequent Mortgage Loans.

          (c) Each Seller 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 of this Agreement, hereby sells, transfers, assigns and otherwise
conveys to the Trustee for the use and benefit of the Certificateholders,
without recourse, all right title and interest in the portion of the Trust
Fund not otherwise conveyed to the Trustee pursuant to Section 2.01(a) or (b).

          (d) On any Business Day during the Funding Period designated by CHL
to the Trustee, the Sellers, the Depositor and the Trustee shall complete,
execute and deliver a Subsequent Transfer Agreement. After the execution and
delivery of such Subsequent Transfer Agreement, on the Subsequent Transfer
Date, the Trustee shall set aside in the Pre-Funding Account an amount equal
to the related Subsequent Transfer Date Purchase Amount.

          (e) The transfer of Subsequent Mortgage Loans on the Subsequent
Transfer Date is subject to the satisfaction of each of the following
conditions:

                                      56
<PAGE>

               (1) the Trustee and the Underwriters will be provided Opinions
          of Counsel addressed to the Rating Agencies as with respect to the
          sale of the Subsequent Mortgage Loans conveyed on such Subsequent
          Transfer Date (such opinions being substantially similar to the
          opinions delivered on the Closing Date to the Rating Agencies with
          respect to the sale of the Initial Mortgage Loans on the Closing
          Date), to be delivered as provided in Section 2.01(f);

               (2) the execution and delivery of such Subsequent Transfer
          Agreement or conveyance of the related Subsequent Mortgage Loans
          does not result in a reduction or withdrawal of any ratings assigned
          to the Certificates by the Rating Agencies;

               (3) the Depositor shall deliver to the Trustee an Officer's
          Certificate confirming the satisfaction of each of the conditions
          set forth in this Section 2.01(e) required to be satisfied by such
          Subsequent Transfer Date;

               (4) each Subsequent Mortgage Loan conveyed on such Subsequent
          Transfer Date satisfies the representations and warranties
          applicable to it under this Agreement, provided, however, that with
          respect to a breach of a representation and warranty with respect to
          a Subsequent Mortgage Loan set forth in this clause (4), the
          obligation under Section 2.03(e) of this Agreement of the applicable
          Seller, to cure, repurchase or replace such Subsequent Mortgage Loan
          shall constitute the sole remedy against such Seller respecting such
          breach available to Certificateholders, the Depositor or the
          Trustee;

               (5) the Subsequent Mortgage Loans conveyed on such Subsequent
          Transfer Date were selected in a manner reasonably believed not to
          be adverse to the interests of the Certificateholders;

               (6) no Subsequent Mortgage Loan conveyed on such Subsequent
          Transfer Date was 30 or more days delinquent;

               (7) following the conveyance of the Subsequent Mortgage Loans
          on such Subsequent Transfer Date, the characteristics of each Loan
          Group will not vary by more than the amount specified below (other
          than the percentage of Mortgage Loans secured by Mortgaged
          Properties located in the State of California, which will not exceed
          50% of the Mortgage Pool and the percentage of mortgage loans in the
          Credit Grade Categories of "C" or below, which will not exceed 10%
          of the Mortgage Loans in each Loan Group) from the characteristics
          listed below; provided that for the purpose of making such
          calculations, the characteristics for any Initial Mortgage Loan made
          will be taken as of the Initial Cut-off Date and the characteristics
          for any Subsequent Mortgage Loans will be taken as of the Subsequent
          Cut-off Date;

<TABLE>
<CAPTION>

Loan Group 1

                                                                                   Permitted
                                                                                  Variance or
Characteristic                                                   Value               Range
-------------------                                      ------------------- --------------------
<S>                                                           <C>                  <C>
Average Stated Principal Balance........................       $204,586               10%
Weighted Average Mortgage Rate..........................        7.149%               0.10%

                                      57
<PAGE>

Weighted Average Original Loan-to-Value Ratio...........        73.77%                3%
Weighted Average Remaining Term to Maturity.............      355 months           3 months
Weighted Average Credit Bureau Risk Score...............      611 points           5 points

Loan Group 2
                                                                                   Permitted
                                                                                  Variance or
Characteristic                                                   Value               Range
-------------------                                      ------------------- --------------------
Average Stated Principal Balance                               $228,573               10%
Weighted Average Mortgage Rate                                  7.502%               0.10%
Weighted Average Original Loan-to-Value Ratio                   77.78%                3%
Weighted Average Remaining Term to Maturity                   359 months           3 months
Weighted Average Credit Bureau Risk Score                     618 points           5 points
</TABLE>

               (8) none of the Sellers or the Depositor is insolvent and
          neither of the Sellers nor the Depositor will be rendered insolvent
          by the conveyance of Subsequent Mortgage Loans on such Subsequent
          Transfer Date; and

               (9) the Trustee and the Underwriters will be provided with an
          Opinion of Counsel, which Opinion of Counsel shall not be at the
          expense of either the Trustee or the Trust Fund, addressed to the
          Trustee, to the effect that such purchase of Subsequent Mortgage
          Loans will not (i) result in the imposition of the tax on
          "prohibited transactions" on the Trust Fund or contributions after
          the Startup Date, as defined in Sections 860F(a)(2) and 860G(d) of
          the Code, respectively or (ii) cause any REMIC formed hereunder to
          fail to qualify as a REMIC, such opinion to be delivered as provided
          in Section 2.01(f).

          The Trustee shall not be required to investigate or otherwise verify
compliance with these conditions, except for its own receipt of documents
specified above, and shall be entitled to rely on the required Officer's
Certificate.

          (f) Within six Business Days after each Subsequent Transfer Date,
upon (1) delivery to the Trustee by the Depositor of the Opinions of Counsel
referred to in Section 2.01(e)(1) and (e)(9), (2) delivery to the Trustee by
CHL (on behalf of each Seller) of a Loan Number and Borrower Identification
Mortgage Loan Schedule reflecting the Subsequent Mortgage Loans conveyed on
such Subsequent Transfer Date and the Loan Group into which each Subsequent
Mortgage Loan was conveyed, (3) deposit in the Certificate Account by the
Master Servicer on behalf of the Sellers of the applicable Subsequent
Certificate Account Deposit, and (4) delivery to the Trustee by the Depositor
of an Officer's Certificate confirming the satisfaction of each of the
conditions precedent set forth in this Section 2.01(f), the Trustee shall pay
the applicable Seller the Subsequent Transfer Date Transfer Amount from such
funds that were set aside in the Pre-Funding Account pursuant to Section
2.01(d). The positive difference, if any, between the Subsequent Transfer Date
Transfer Amount and the Subsequent Transfer Date Purchase Amount shall be
re-invested by the Trustee in the Pre-Funding Account.

                                      58
<PAGE>

          The Trustee shall not be required to investigate or otherwise verify
compliance with the conditions set forth in the preceding paragraph, except
for its own receipt of documents specified above, and shall be entitled to
rely on the required Officer's Certificate.

          Within thirty days after each Subsequent Transfer Date, the
Depositor shall deliver to the Trustee a letter of a nationally recognized
firm of independent public accountants stating whether or not the Subsequent
Mortgage Loans conveyed on such Subsequent Transfer Date conform to the
characteristics described in Section 2.01(e)(6) and (7).

          (g) In connection with the transfer and assignment of each Mortgage
Loan, the Depositor has delivered to, and deposited with, the Trustee (or, in
the case of the Delay Delivery Mortgage Loans, will deliver to, and deposit
with, the Trustee within the time periods specified in the definition of Delay
Delivery Mortgage Loans) (except as provided in clause (vi) below) for the
benefit of the Certificateholders, the following documents or instruments with
respect to each such Mortgage Loan so assigned (with respect to each Mortgage
Loan, clause (i) through (vi) below, together, the "Mortgage File" for each
such Mortgage Loan):

               (i) the original Mortgage Note, endorsed by manual or facsimile
          signature in blank in the following form: "Pay to the order of
          ________________ without recourse", with all intervening
          endorsements that show a complete chain of endorsement from the
          originator to the Person endorsing the Mortgage Note (each such
          endorsement being sufficient to transfer all right, title and
          interest of the party so endorsing, as noteholder or assignee
          thereof, in and to that Mortgage Note), or, if the original Mortgage
          Note has been lost or destroyed and not replaced, an original lost
          note affidavit, stating that the original Mortgage Note was lost or
          destroyed, together with a copy of the related Mortgage Note and all
          such intervening endorsements;

               (ii) in the case of each Mortgage Loan that is not a MERS
          Mortgage Loan, the original recorded Mortgage or a copy of such
          Mortgage, with recording information, and in the case of each MERS
          Mortgage Loan, the original Mortgage or a copy of such Mortgage,
          with recording information, noting the presence of the MIN of the
          Mortgage Loan and language indicating that the Mortgage Loan is a
          MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of
          recording indicated thereon, or a copy of the Mortgage certified by
          the public recording office in which such Mortgage has been
          recorded;

               (iii) in the case of each Mortgage Loan that is not a MERS
          Mortgage Loan, a duly executed assignment of the Mortgage to
          "Asset-Backed Certificates, Series 2006-1, CWABS, Inc., by The Bank
          of New York, a New York banking corporation, as trustee under the
          Pooling and Servicing Agreement dated as of January 1, 2006, without
          recourse" or a copy of such assignment, with recording information
          (each such assignment, when duly and validly completed, to be in
          recordable form and sufficient to effect the assignment of and
          transfer to the assignee thereof, under the Mortgage to which such
          assignment relates);

                                      59
<PAGE>

               (iv) the original recorded assignment or assignments of the
          Mortgage or a copy of such assignments, with recording information,
          together with all interim recorded assignments of such Mortgage or a
          copy of such assignments, with recording information (in each case
          noting the presence of a MIN in the case of each MERS Mortgage
          Loan);

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

               (vi) the original or duplicate original lender's title policy
          or a copy of lender's title policy or a printout of the electronic
          equivalent and all riders thereto or, in the event such original
          title policy has not been received from the insurer, such original
          or duplicate original lender's title policy and all riders thereto
          shall be delivered within one year of the Closing Date.

          In addition, in connection with the assignment of any MERS Mortgage
Loan, each Seller agrees that it will cause, at such Seller's own expense, the
MERS(R) System to indicate (and provide evidence to the Trustee that it has
done so) that such Mortgage Loans have been assigned by such Seller 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 "[IDENTIFY TRUSTEE SPECIFIC CODE]" in the field "[IDENTIFY
THE FIELD NAME FOR TRUSTEE]" which identifies the Trustee and (b) the code
"[IDENTIFY SERIES SPECIFIC CODE NUMBER]" in the field "Pool Field" which
identifies the series of the Certificates issued in connection with such
Mortgage Loans. The Sellers further agree that they will not, and will not
permit the Master Servicer to, and the Master Servicer agrees that it will
not, alter the codes referenced in this paragraph with respect to any Mortgage
Loan during the term of this Agreement unless and until such Mortgage Loan is
repurchased in accordance with the terms of this Agreement.

          In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan a Seller cannot deliver the original recorded Mortgage or
all interim recorded assignments of the Mortgage satisfying the requirements
of clause (ii), (iii) or (iv) concurrently with the execution and delivery
hereof, such Seller shall deliver or cause to be delivered to the Trustee a
true copy of such Mortgage and of each such undelivered interim assignment of
the Mortgage each certified by such Seller, the applicable title company,
escrow agent or attorney, or the originator of such Mortgage, as the case may
be, to be a true and complete copy of the original Mortgage or assignment of
Mortgage submitted for recording. For any such Mortgage Loan that is not a
MERS Mortgage Loan each Seller shall promptly deliver or cause to be delivered
to the Trustee such original Mortgage and such assignment or assignments with
evidence of recording indicated thereon upon receipt thereof from the public
recording official, or a copy thereof, certified, if appropriate, by the
relevant recording office, but in no event shall any such delivery be made
later than 270 days following the Closing Date; provided that in the event
that by such date such Seller is unable to deliver or cause to be delivered
each such Mortgage and each interim assignment by reason of the fact that any
such documents have not been returned by the appropriate recording office, or,
in the case of each interim assignment, because the related Mortgage has not
been returned by the appropriate recording office, such

                                      60
<PAGE>

Seller shall deliver or cause to be delivered such documents to the Trustee as
promptly as possible upon receipt thereof. If the public recording office in
which a Mortgage or interim assignment thereof is recorded retains the
original of such Mortgage or assignment, a copy of the original Mortgage or
assignment so retained, with evidence of recording thereon, certified to be
true and complete by such recording office, shall satisfy a Seller's
obligations in Section 2.01. If any document submitted for recording pursuant
to this Agreement is (x) lost prior to recording or rejected by the applicable
recording office, the applicable Seller shall immediately prepare or cause to
be prepared a substitute and submit it for recording, and shall deliver copies
and originals thereof in accordance with the foregoing or (y) lost after
recording, the applicable Seller shall deliver to the Trustee a copy of such
document certified by the applicable public recording office to be a true and
complete copy of the original recorded document. Each Seller shall promptly
forward or cause to be forwarded to the Trustee (x) from time to time
additional original documents evidencing an assumption or modification of a
Mortgage Loan and (y) any other documents required to be delivered by the
Depositor or the Master Servicer to the Trustee within the time periods
specified in this Section 2.01.

          With respect to each Mortgage Loan other than a MERS Mortgage Loan
as to which the related Mortgaged Property and Mortgage File are located in
(a) the State of California or (b) any other jurisdiction under the laws of
which the recordation of the assignment specified in clause (iii) above is not
necessary to protect the Trustee's and the Certificateholders' interest in the
related Mortgage Loan, as evidenced by an Opinion of Counsel delivered by CHL
to the Trustee and a copy to the Rating Agencies, in lieu of recording the
assignment specified in clause (iii) above, the applicable Seller may deliver
an unrecorded assignment in blank, in form otherwise suitable for recording to
the Trustee; provided that if the related Mortgage has not been returned from
the applicable public recording office, such assignment, or any copy thereof,
of the Mortgage may exclude the information to be provided by the recording
office. As to any Mortgage Loan other than a MERS Mortgage Loan, the
procedures of the preceding sentence shall be applicable only so long as the
related Mortgage File is maintained in the possession of the Trustee in the
State or jurisdiction described in such sentence. In the event that with
respect to Mortgage Loans other than MERS Mortgage Loans (I) any Seller, the
Depositor, the Master Servicer or the NIM Insurer gives written notice to the
Trustee that recording is required to protect the right, title and interest of
the Trustee on behalf of the Certificateholders in and to any Mortgage Loan,
(II) a court recharacterizes any sale of the Mortgage Loans as a financing, or
(III) as a result of any change in or amendment to the laws of the State or
jurisdiction described in the first sentence of this paragraph or any
applicable political subdivision thereof, or any change in official position
regarding application or interpretation of such laws, including a holding by a
court of competent jurisdiction, such recording is so required, the Trustee
shall complete the assignment in the manner specified in clause (iii) above
and CHL shall submit or cause to be submitted for recording as specified above
or, should CHL fail to perform such obligations, the Trustee shall cause the
Master Servicer, at the Master Servicer's expense, to cause each such
previously unrecorded assignment to be submitted for recording as specified
above. In the event a Mortgage File is released to the Master Servicer as a
result of the Master Servicer's having completed a Request for Document
Release, the Trustee shall complete the assignment of the related Mortgage in
the manner specified in clause (iii) above.

          So long as the Trustee or its agent maintains an office in the State
of California, the Trustee or its agent shall maintain possession of and not
remove or attempt to remove from

                                      61
<PAGE>

the State of California any of the Mortgage Files as to which the related
Mortgaged Property is located in such State. In the event that a Seller fails
to record an assignment of a Mortgage Loan as herein provided within 90 days
of notice of an event set forth in clause (I), (II) or (III) of the preceding
paragraph, the Master Servicer shall prepare and, if required hereunder, file
such assignments for recordation in the appropriate real property or other
records office. Each Seller hereby appoints the Master Servicer (and any
successor servicer hereunder) as its attorney-in-fact with full power and
authority acting in its stead for the purpose of such preparation, execution
and filing.

          In the case of Mortgage Loans that become the subject of a Principal
Prepayment between the Closing Date (in the case of Initial Mortgage Loans) or
related Subsequent Transfer Date (in the case of Subsequent Mortgage Loans)
and the Cut-off Date, CHL shall deposit or cause to be deposited in the
Certificate Account the amount required to be deposited therein with respect
to such payment pursuant to Section 3.05 hereof.

          Notwithstanding anything to the contrary in this Agreement, within
thirty days after the Closing Date (in the case of Initial Mortgage Loans) or
within twenty days after the related Subsequent Transfer Date (in the case of
Subsequent Mortgage Loans), CHL (on behalf of each Seller) shall either (i)
deliver to the Trustee the Mortgage File as required pursuant to this Section
2.01 for each Delay Delivery Mortgage Loan or (ii) (A) repurchase the Delay
Delivery Mortgage Loan or (B) substitute the Delay Delivery Mortgage Loan for
a Replacement Mortgage Loan, which repurchase or substitution shall be
accomplished in the manner and subject to the conditions set forth in Section
2.03, provided that if CHL fails to deliver a Mortgage File for any Delay
Delivery Mortgage Loan within the period provided in the prior sentence, the
cure period provided for in Section 2.02 or in Section 2.03 shall not apply to
the initial delivery of the Mortgage File for such Delay Delivery Mortgage
Loan, but rather CHL shall have five (5) Business Days to cure such failure to
deliver. CHL shall promptly provide each Rating Agency with written notice of
any cure, repurchase or substitution made pursuant to the proviso of the
preceding sentence. On or before the thirtieth (30th) day (or if such
thirtieth day is not a Business Day, the succeeding Business Day) after the
Closing Date (in the case of Initial Mortgage Loans) or within twenty days
after the related Subsequent Transfer Date (in the case of Subsequent Mortgage
Loans), the Trustee shall, in accordance with the provisions of Section 2.02,
send a Delay Delivery Certification substantially in the form annexed hereto
as Exhibit G-3 (with any applicable exceptions noted thereon) for all Delay
Delivery Mortgage Loans delivered within thirty (30) days after such date. The
Trustee will promptly send a copy of such Delay Delivery Certification to each
Rating Agency.

          Each Seller has entered into this Agreement in consideration for the
purchase of the Mortgage Loans sold by such Seller to the Depositor and has
agreed to take the actions specified herein. The Depositor, concurrently with
the execution and delivery of this Agreement, hereby sells, transfers, assigns
and otherwise conveys to the Trustee for the use and benefit of the
Certificateholders, without recourse, all right title and interest in the
portion of the Trust Fund not otherwise conveyed to the Trust Fund pursuant to
Sections 2.01(a) or (b).

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          Section 2.02 Acceptance by Trustee of the Mortgage Loans.

          (a) The Trustee acknowledges receipt, subject to the limitations
contained in and any exceptions noted in the Initial Certification in the form
annexed hereto as Exhibit G-1 and in the list of exceptions attached thereto,
of the documents referred to in clauses (i) and (iii) of Section 2.01(g) above
with respect to the Initial Mortgage Loans and all other assets included in
the Trust Fund and declares that it holds and will hold such documents and the
other documents delivered to it constituting the Mortgage Files, and that it
holds or will hold such other assets included in the Trust Fund, in trust for
the exclusive use and benefit of all present and future Certificateholders.

          The Trustee agrees to execute and deliver on the Closing Date to the
Depositor, the Master Servicer and CHL (on behalf of each Seller) an Initial
Certification substantially in the form annexed hereto as Exhibit G-1 to the
effect that, as to each Initial Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Initial Mortgage Loan paid in full or any Initial
Mortgage Loan specifically identified in such certification as not covered by
such certification), the documents described in Section 2.01(g)(i) and, in the
case of each Initial Mortgage Loan that is not a MERS Mortgage Loan, the
documents described in Section 2.01(g)(iii) with respect to such Initial
Mortgage Loans as are in the Trustee's possession and based on its review and
examination and only as to the foregoing documents, such documents appear
regular on their face and relate to such Initial Mortgage Loan. The Trustee
agrees to execute and deliver within 30 days after the Closing Date to the
Depositor, the Master Servicer and CHL (on behalf of each Seller) an Interim
Certification substantially in the form annexed hereto as Exhibit G-2 to the
effect that, as to each Initial Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Initial Mortgage Loan paid in full or any Initial
Mortgage Loan specifically identified in such certification as not covered by
such certification) all documents required to be delivered to the Trustee
pursuant to the Agreement with respect to such Initial Mortgage Loans are in
its possession (except those documents described in Section 2.01(g)(vi)) and
based on its review and examination and only as to the foregoing documents,
(i) such documents appear regular on their face and relate to such Initial
Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v),
(vi), (viii), (ix) and (xvii) of the definition of the "Mortgage Loan
Schedule" accurately reflects information set forth in the Mortgage File. On
or before the thirtieth (30th) day after the Closing Date (or if such
thirtieth day is not a Business Day, the succeeding Business Day), the Trustee
shall deliver to the Depositor, the Master Servicer and CHL (on behalf of each
Seller) a Delay Delivery Certification with respect to the Initial Mortgage
Loans substantially in the form annexed hereto as Exhibit G-3, with any
applicable exceptions noted thereon. The Trustee shall be under no duty or
obligation to inspect, review or examine such documents, instruments,
certificates or other papers to determine that the same are genuine,
enforceable or appropriate for the represented purpose or that they have
actually been recorded in the real estate records or that they are other than
what they purport to be on their face.

          Not later than 180 days after the Closing Date, the Trustee shall
deliver to the Depositor, the Master Servicer and CHL (on behalf of each
Seller), to any Certificateholder that so requests, a Final Certification with
respect to the Initial Mortgage Loans substantially in the form annexed hereto
as Exhibit H, with any applicable exceptions noted thereon.

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<PAGE>

          In connection with the Trustee's completion and delivery of such
Final Certification, the Trustee shall review each Mortgage File with respect
to the Initial Mortgage Loans to determine that such Mortgage File contains
the following documents:

               (i) the original Mortgage Note, endorsed by manual or facsimile
          signature in blank in the following form: "Pay to the order of
          ________________ without recourse", with all intervening
          endorsements that show a complete chain of endorsement from the
          originator to the Person endorsing the Mortgage Note (each such
          endorsement being sufficient to transfer all right, title and
          interest of the party so endorsing, as noteholder or assignee
          thereof, in and to that Mortgage Note), or, if the original Mortgage
          Note has been lost or destroyed and not replaced, an original lost
          note affidavit, stating that the original Mortgage Note was lost or
          destroyed, together with a copy of the related Mortgage Note and all
          such intervening endorsements;

               (ii) in the case of each Initial Mortgage Loan that is not a
          MERS Mortgage Loan, the original recorded Mortgage or a copy of such
          Mortgage, with recording information, and in the case of each
          Initial Mortgage Loan that is a MERS Mortgage Loan, the original
          Mortgage or a copy of such Mortgage, with recording information,
          noting the presence of the MIN of the Initial Mortgage Loan and
          language indicating that the Mortgage Loan is a MOM Loan if the
          Initial Mortgage Loan is a MOM Loan, with evidence of recording
          indicated thereon, or a copy of the Mortgage certified by the public
          recording office in which Mortgage has been recorded;

               (iii) in the case of each Initial Mortgage Loan that is not a
          MERS Mortgage Loan, a duly executed assignment of the Mortgage or a
          copy thereof with recording information, in either case in the form
          permitted by Section 2.01;

               (iv) the original recorded assignment or assignments of the
          Mortgage or a copy of such assignments, with recording information,
          together with all interim recorded assignments of such Mortgage or a
          copy of such assignments, with recording information (in each case
          noting the presence of a MIN in the case of each MERS Mortgage
          Loan);

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

               (vi) the original or duplicate original lender's title policy
          or a copy of lender's title policy or a printout of the electronic
          equivalent and all riders thereto.

          If, in the course of such review, the Trustee finds any document or
documents constituting a part of such Mortgage File that do not meet the
requirements of clauses (i)-(iv) and (vi) above, the Trustee shall include
such exceptions in such Final Certification (and the Trustee shall state in
such Final Certification whether any Mortgage File does not then include the
original or duplicate original lender's title policy or a printout of the
electronic equivalent and all riders thereto). If the public recording office
in which a Mortgage or assignment thereof is

                                      64
<PAGE>

recorded retains the original of such Mortgage or assignment, a copy of the
original Mortgage or assignment so retained, with evidence of recording
thereon, certified to be true and complete by such recording office, shall be
deemed to satisfy the requirements of clause (ii), (iii) or (iv) above, as
applicable. CHL shall promptly correct or cure such defect referred to above
within 90 days from the date it was so notified of such defect and, if CHL
does not correct or cure such defect within such period, CHL shall either (A)
if the time to cure such defect expires prior to the end of the second
anniversary of the Closing Date, substitute for the related Initial 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 (B)
purchase such Initial Mortgage Loan from the Trust Fund within 90 days from
the date CHL was notified of such defect in writing at the Purchase Price of
such Initial Mortgage Loan; provided that any such substitution pursuant to
(A) above or repurchase pursuant to (B) above shall not be effected prior to
the delivery to the Trustee of the Opinion of Counsel required by Section 2.05
hereof and any substitution pursuant to (A) above shall not be effected prior
to the additional delivery to the Trustee of a Request for File Release. No
substitution will be made in any calendar month after the Determination Date
for such month. The Purchase Price for any such Initial Mortgage Loan shall be
deposited by CHL in the Certificate Account and, upon receipt of such deposit
and Request for File Release with respect thereto, the Trustee shall release
the related Mortgage File to CHL and shall execute and deliver at CHL's
request such instruments of transfer or assignment as CHL has prepared, in
each case without recourse, as shall be necessary to vest in CHL, or a
designee, the Trustee's interest in any Initial Mortgage Loan released
pursuant hereto. If pursuant to the foregoing provisions CHL repurchases an
Initial Mortgage Loan that is a MERS Mortgage Loan, the Master Servicer shall
cause MERS to execute and deliver an assignment of the Mortgage in recordable
form to transfer the Mortgage from MERS to CHL and shall cause such Mortgage
to be removed from registration on the MERS(R) System in accordance with MERS'
rules and regulations.

          The Trustee shall retain possession and custody of each Mortgage
File in accordance with and subject to the terms and conditions set forth
herein. Each Seller shall promptly deliver to the Trustee, upon the execution
or receipt thereof, the originals of such other documents or instruments
constituting the Mortgage File that come into the possession of such Seller
from time to time.

          It is understood and agreed that the obligation of CHL to substitute
for or to purchase any Mortgage Loan that does not meet the requirements of
Section 2.02(a) above shall constitute the sole remedy respecting such defect
available to the Trustee, the Depositor and any Certificateholder against any
Seller.

          It is understood and agreed that the obligation of CHL to substitute
for or to purchase, pursuant to Section 2.02(a), any Initial Mortgage Loan
whose Mortgage File contains any document or documents that does not meet the
requirements of clauses (i)-(iv) and (vi) above and which defect is not
corrected or cured by CHL within 90 days from the date it was notified of such
defect, shall constitute the sole remedy respecting such defect available to
the Trustee, the Depositor and any Certificateholder against any Seller.

          (b) The Trustee agrees to execute and deliver on the Subsequent
Transfer Date to the Depositor, the Master Servicer and CHL (on behalf of each
Seller) an Initial

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<PAGE>

Certification substantially in the form annexed hereto as Exhibit G-4 to the
effect that, as to each Subsequent Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Subsequent Mortgage Loan paid in full or any
Subsequent Mortgage Loan specifically identified in such certification as not
covered by such certification), the documents described in Section 2.01(g)(i)
and, in the case of each Subsequent Mortgage Loan that is not a MERS Mortgage
Loan, the documents described in Section 2.01(g)(iii), with respect to such
Subsequent Mortgage Loan are in its possession, and based on its review and
examination and only as to the foregoing documents, such documents appear
regular on their face and relate to such Subsequent Mortgage Loan.

          The Trustee agrees to execute and deliver within 30 days after the
Subsequent Transfer Date to the Depositor, the Master Servicer and CHL (on
behalf of each Seller) an Interim Certification substantially in the form
annexed hereto as Exhibit G-2 to the effect that, as to each Subsequent
Mortgage Loan listed in the Mortgage Loan Schedule (other than any Subsequent
Mortgage Loan paid in full or any Subsequent Mortgage Loan specifically
identified in such certification as not covered by such certification), all
documents required to be delivered to it pursuant to this Agreement with
respect to such Subsequent Mortgage Loan are in its possession (except those
described in Section 2.01(g)(vi)) and based on its review and examination and
only as to the foregoing documents, (i) such documents appear regular on their
face and relate to such Subsequent Mortgage Loan, and (ii) the information set
forth in items (i), (iv), (v), (vi), (viii), (ix) and (xvii) of the definition
of the "Mortgage Loan Schedule" accurately reflects information set forth in
the Mortgage File. On or before the thirtieth (30th) day after the Subsequent
Transfer Date (or if such thirtieth day is not a Business Day, the succeeding
Business Day), the Trustee shall deliver to the Depositor, the Master Servicer
and CHL (on behalf of each Seller) a Delay Delivery Certification with respect
to the Subsequent Mortgage Loans substantially in the form annexed hereto as
Exhibit G-3, with any applicable exceptions noted thereon, together with a
Subsequent Certification substantially in the form annexed hereto as Exhibit
G-4. The Trustee shall be under no duty or obligation to inspect, review or
examine such documents, instruments, certificates or other papers to determine
that the same are genuine, enforceable or appropriate for the represented
purpose or that they have actually been recorded in the real estate records or
that they are other than what they purport to be on their face.

          Not later than 180 days after the Subsequent Transfer Date, the
Trustee shall deliver to the Depositor, the Master Servicer, CHL (on behalf of
each Seller) and to any Certificateholder that so requests a Final
Certification with respect to the Subsequent Mortgage Loans substantially in
the form annexed hereto as Exhibit H, with any applicable exceptions noted
thereon.

          In connection with the Trustee's completion and delivery of such
Final Certification, the Trustee shall review each Mortgage File with respect
to the Subsequent Mortgage Loans to determine that such Mortgage File contains
the following documents:

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

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<PAGE>

          endorsing, as noteholder or assignee thereof, in and to that
          Mortgage Note), or, if the original Mortgage Note has been lost or
          destroyed and not replaced, an original lost note affidavit, stating
          that the original Mortgage Note was lost or destroyed, together with
          a copy of the related Mortgage Note and all such intervening
          endorsements;

               (ii) in the case of each Subsequent Mortgage Loan that is not a
          MERS Mortgage Loan, the original recorded Mortgage or a copy of such
          Mortgage, with recording information, and in the case of each
          Subsequent Mortgage Loan that is a MERS Mortgage Loan, the original
          Mortgage or a copy of such Mortgage, with recording information,
          noting the presence of the MIN of the Subsequent Mortgage Loan and
          language indicating that the Subsequent Mortgage Loan is a MOM Loan
          if the Subsequent Mortgage Loan is a MOM Loan, with evidence of
          recording indicated thereon, or a copy of the Mortgage certified by
          the public recording office in which Mortgage has been recorded;

               (iii) in the case of each Subsequent Mortgage Loan that is not
          a MERS Mortgage Loan, a duly executed assignment of the Mortgage or
          a copy thereof with recording information, in either case in the
          form permitted by Section 2.01;

               (iv) the original recorded assignment or assignments of the
          Mortgage or a copy of such assignments, with recording information,
          together with all interim recorded assignments of such Mortgage or a
          copy of such assignments, with recording information (in each case
          noting the presence of a MIN in the case of each MERS Mortgage
          Loan);

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

               (vi) the original or duplicate original lender's title policy or
          a copy of lender's title policy or a printout of the electronic
          equivalent and all riders thereto.

          If, in the course of such review, the Trustee finds any document or
documents constituting a part of such Mortgage File that do not meet the
requirements of clauses (i)-(iv) and (vi) above, the Trustee shall include
such exceptions in such Final Certification (and the Trustee shall state in
such Final Certification whether any Mortgage File does not then include the
original or duplicate original lender's title policy or a printout of the
electronic equivalent and all riders thereto). If the public recording office
in which a Mortgage or assignment thereof is recorded retains the original of
such Mortgage or assignment, a copy of the original Mortgage or assignment so
retained, with evidence of recording thereon, certified to be true and
complete by such recording office, shall be deemed to satisfy the requirements
of clause (ii), (iii) or (iv) above, as applicable. CHL shall promptly correct
or cure such defect referred to above within 90 days from the date it was so
notified of such defect and, if CHL does not correct or cure such defect
within such period, CHL shall either (A) if the time to cure such defect
expires prior to the end of the second anniversary of the Closing Date,
substitute for the related Subsequent 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 (B) purchase such Subsequent
Mortgage Loan from the Trust Fund within 90 days from the date CHL was
notified of such

                                      67
<PAGE>

defect in writing at the Purchase Price of such Subsequent Mortgage Loan;
provided that any such substitution pursuant to (A) above or repurchase
pursuant to (B) above shall not be effected prior to the delivery to the
Trustee of the Opinion of Counsel required by Section 2.05 hereof and any
substitution pursuant to (A) above shall not be effected prior to the
additional delivery to the Trustee of a Request for File Release. No
substitution will be made in any calendar month after the Determination Date
for such month. The Purchase Price for any such Subsequent Mortgage Loan shall
be deposited by CHL in the Certificate Account and, upon receipt of such
deposit and Request for File Release with respect thereto, the Trustee shall
release the related Mortgage File to CHL and shall execute and deliver at
CHL's request such instruments of transfer or assignment as CHL has prepared,
in each case without recourse, as shall be necessary to vest in CHL, or a
designee, the Trustee's interest in any Subsequent Mortgage Loan released
pursuant hereto. If pursuant to the foregoing provisions CHL repurchases a
Subsequent Mortgage Loan that is a MERS Mortgage Loan, the Master Servicer
shall cause MERS to execute and deliver an assignment of the Mortgage in
recordable form to transfer the Mortgage from MERS to CHL and shall cause such
Mortgage to be removed from registration on the MERS(R) System in accordance
with MERS' rules and regulations.

          The Trustee shall retain possession and custody of each Mortgage
File in accordance with and subject to the terms and conditions set forth
herein. Each Seller shall promptly deliver to the Trustee, upon the execution
or receipt thereof, the originals of such other documents or instruments
constituting the Mortgage File that come into the possession of such Seller
from time to time.

          It is understood and agreed that the obligation of the Sellers to
substitute for or to purchase, pursuant to Section 2.02(b), any Subsequent
Mortgage Loan whose Mortgage File contains any document or documents that does
not meet the requirements of clauses (i)-(iv) and (vi) above and which defect
is not corrected or cured by such Seller within 90 days from the date it was
notified of such defect, shall constitute the sole remedy respecting such
defect available to the Trustee, the Depositor and any Certificateholder
against the Sellers.

          Section 2.03 Representations, Warranties and Covenants of the Master
Servicer and the Sellers.

          (a) The Master Servicer hereby represents and warrants to the
Depositor and the Trustee as follows, as of the date hereof with respect to
the Initial Mortgage Loans, and the related Subsequent Transfer Date with
respect to the Subsequent Mortgage Loans:

                      (1) The Master Servicer is duly organized as a Texas
        limited partnership and is validly existing and in good standing under
        the laws of the State of Texas and is duly authorized and qualified to
        transact any and all business contemplated by this Agreement to be
        conducted by the Master Servicer in any state in which a Mortgaged
        Property is located or is otherwise not required under applicable law
        to effect such qualification and, in any event, is in compliance with
        the doing business laws of any such state, to the extent necessary to
        ensure its ability to enforce each Mortgage Loan, to service 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.

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<PAGE>

                      (2) The Master Servicer has the full partnership power
        and authority to sell and service each Mortgage Loan, and to execute,
        deliver and perform, and to enter into and consummate the transactions
        contemplated by this Agreement and has duly authorized by all
        necessary partnership action on the part of the Master Servicer the
        execution, delivery and performance of this Agreement; and this
        Agreement, assuming the due authorization, execution and delivery
        hereof by the other parties hereto, constitutes a legal, valid and
        binding obligation of the Master Servicer, enforceable against the
        Master Servicer 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.

                      (3) The execution and delivery of this Agreement by the
        Master Servicer, the servicing of the Mortgage Loans by the Master
        Servicer 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 Master Servicer and will not (A) result in a material
        breach of any term or provision of the certificate of limited
        partnership, partnership agreement or other organizational document of
        the Master Servicer 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 Master Servicer 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 Master Servicer of any court, regulatory
        body, administrative agency or governmental body having jurisdiction
        over the Master Servicer; and the Master Servicer 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 Master Servicer's ability to perform or meet any of its
        obligations under this Agreement.

                      (4) The Master Servicer is an approved servicer of
        conventional mortgage loans for Fannie Mae and 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.

                      (5) No litigation is pending or, to the best of the
        Master Servicer's knowledge, threatened, against the Master Servicer
        that would materially and adversely affect the execution, delivery or
        enforceability of this Agreement or the ability of the Master Servicer
        to service the Mortgage Loans or to perform any of its other
        obligations under this Agreement or any Subsequent Transfer Agreement
        in accordance with the terms hereof or thereof.

                      (6) 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

                                      69
<PAGE>

        consummation of the transactions contemplated hereby, or if any such
        consent, approval, authorization or order is required, the Master
        Servicer has obtained the same.

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

                      (8) The Master Servicer has fully furnished and will
        fully furnish, 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 for the Mortgage Loans in
        Loan Group 2.

          (b) CHL hereby represents and warrants to the Depositor and the
Trustee as follows, as of the Initial Cut-off Date in the case of the Initial
Mortgage Loans and as of the related Subsequent Cut-off Date in the case of
the Subsequent Mortgage Loans (unless otherwise indicated or the context
otherwise requires, percentages with respect to the Initial Mortgage Loans in
the Trust Fund or in a Loan Group or Loan Groups are measured by the Cut-off
Date Principal Balance of the Initial Mortgage Loans in the Trust Fund or of
the Initial Mortgage Loans in the related Loan Group or Loan Groups, as
applicable):

                      (1) CHL is duly organized as a New York corporation and
        is validly existing and in good standing under the laws of the State
        of New York and is duly authorized and qualified to transact any and
        all business contemplated by this Agreement and each Subsequent
        Transfer Agreement to be conducted by CHL 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 CHL Mortgage Loans in accordance with the terms of this
        Agreement and each Subsequent Transfer Agreement and to perform any of
        its other obligations under this Agreement and each Subsequent
        Transfer Agreement in accordance with the terms hereof and thereof.

                      (2) CHL has the full corporate power and authority to
        sell each CHL Mortgage Loan, and to execute, deliver and perform, and
        to enter into and consummate the transactions contemplated by this
        Agreement and each Subsequent Transfer Agreement and has duly
        authorized by all necessary corporate action on the part of CHL the
        execution, delivery and performance of this Agreement and each
        Subsequent Transfer Agreement; and this Agreement and each Subsequent
        Transfer Agreement, assuming the due authorization, execution and
        delivery hereof by the other parties hereto, constitutes a legal,
        valid and binding obligation of CHL, enforceable against CHL 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.

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<PAGE>

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

                      (4) CHL is an approved seller of conventional mortgage
        loans for Fannie Mae and 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.

                      (5) No litigation is pending or, to the best of CHL's
        knowledge, threatened, against CHL that would materially and adversely
        affect the execution, delivery or enforceability of this Agreement or
        any Subsequent Transfer Agreement or the ability of CHL to sell the
        CHL Mortgage Loans or to perform any of its other obligations under
        this Agreement or any Subsequent Transfer Agreement in accordance with
        the terms hereof or thereof.

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

                      (7) The information set forth on Exhibit F-1 hereto with
        respect to each Initial Mortgage Loan is true and correct in all
        material respects as of the Closing Date.

                      (8) CHL will treat the transfer of the CHL Mortgage
        Loans to the Depositor as a sale of the CHL Mortgage Loans for all
        tax, accounting and regulatory purposes.

                      (9) None of the Mortgage Loans is delinquent in payment
        of principal and interest.

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                      (10) No Mortgage Loan had a Loan-to-Value Ratio at
        origination in excess of 100.00%.

                      (11) Each Mortgage Loan is secured by a valid and
        enforceable first lien on the related Mortgaged Property subject only
        to (1) the lien of non-delinquent current real property taxes and
        assessments, (2) covenants, conditions and restrictions, rights of
        way, easements and other matters of public record as of the date of
        recording of such Mortgage, such exceptions appearing of record being
        acceptable to mortgage lending institutions generally or specifically
        reflected in the appraisal made in connection with the origination of
        the related Mortgage Loan and (3) other matters to which like
        properties are commonly subject that do not materially interfere with
        the benefits of the security intended to be provided by such Mortgage.

                      (12) Immediately prior to the assignment of each CHL
        Mortgage Loan to the Depositor, CHL had good title to, and was the
        sole owner of, such CHL Mortgage Loan free and clear of any pledge,
        lien, encumbrance or security interest and had full right and
        authority, subject to no interest or participation of, or agreement
        with, any other party, to sell and assign the same pursuant to this
        Agreement.

                      (13) There is no delinquent tax or assessment lien
        against any Mortgaged Property.

                      (14) There is no valid offset, claim, defense or
        counterclaim to any Mortgage Note or Mortgage, including the
        obligation of the Mortgagor to pay the unpaid principal of or interest
        on such Mortgage Note.

                      (15) There are no mechanics' liens or claims for work,
        labor or material affecting any Mortgaged Property that are or may be
        a lien prior to, or equal with, the lien of such Mortgage, except
        those that are insured against by the title insurance policy referred
        to in item (18) below.

                      (16) As of the Closing Date in the case of the Initial
        Mortgage Loans and as of the related Subsequent Transfer Date in the
        case of the Subsequent Mortgage Loans, to the best of CHL's knowledge,
        each Mortgaged Property is free of material damage and is in good
        repair.

                      (17) As of the Closing Date in the case of the Initial
        Mortgage Loans and as of the related Subsequent Transfer Date in the
        case of the Subsequent Mortgage Loans, neither CHL nor any prior
        holder of any Mortgage has modified the Mortgage in any material
        respect (except that a Mortgage Loan may have been modified by a
        written instrument that has been recorded or submitted for
        recordation, if necessary, to protect the interests of the
        Certificateholders and the original or a copy of which has been
        delivered to the Trustee); satisfied, cancelled or subordinated such
        Mortgage in whole or in part; released the related Mortgaged Property
        in whole or in part from the lien of such Mortgage; or executed any
        instrument of release, cancellation, modification (except as expressly
        permitted above) or satisfaction with respect thereto.

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                      (18) A lender's policy of title insurance together with
        a condominium endorsement and extended coverage endorsement, if
        applicable, in an amount at least equal to the Cut-off Date Principal
        Balance of each such Mortgage Loan or a commitment (binder) to issue
        the same was effective on the date of the origination of each Mortgage
        Loan, each such policy is valid and remains in full force and effect,
        and each such policy was issued by a title insurer qualified to do
        business in the jurisdiction where the Mortgaged Property is located
        and acceptable to Fannie Mae and Freddie Mac and is in a form
        acceptable to Fannie Mae and Freddie Mac, which policy insures the
        Sellers and successor owners of indebtedness secured by the insured
        Mortgage, as to the first priority lien, of the Mortgage subject to
        the exceptions set forth in paragraph (11) above; to the best of CHL's
        knowledge, no claims have been made under such mortgage title
        insurance policy and no prior holder of the related Mortgage,
        including any Seller, has done, by act or omission, anything that
        would impair the coverage of such mortgage title insurance policy.

                      (19) No Initial Mortgage Loan was the subject of a
        Principal Prepayment in full between the Initial Cut-off Date and the
        Closing Date. No Subsequent Mortgage Loan was the subject of a
        Principal Prepayment in full between the Subsequent Cut-off Date and
        the Subsequent Transfer Date.

                      (20) To the best of CHL's knowledge, all of the
        improvements that were included for the purpose of determining the
        Appraised Value of the Mortgaged Property lie wholly within the
        boundaries and building restriction lines of such property, and no
        improvements on adjoining properties encroach upon the Mortgaged
        Property.

                      (21) To the best of CHL's knowledge, no improvement
        located on or being part of the Mortgaged Property is in violation of
        any applicable zoning law or regulation. To the best of CHL's
        knowledge, 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, unless the lack thereof would not have a
        material adverse effect on the value of such Mortgaged Property, and
        the Mortgaged Property is lawfully occupied under applicable law.

                      (22) The Mortgage Note and the related Mortgage are
        genuine, and each is the legal, valid and binding obligation of the
        maker thereof, enforceable in accordance with its terms and under
        applicable law, except that (a) the enforceability thereof may be
        limited by bankruptcy, insolvency, moratorium, receivership and other
        similar laws relating to creditors' rights generally and (b) the
        remedy of specific performance and injunctive and other forms of
        equitable relief may be subject to equitable defenses and to the
        discretion of the court before which any proceeding therefor may be
        brought. To the best of CHL's knowledge, all parties to the Mortgage
        Note and the Mortgage had legal capacity to execute the Mortgage Note
        and the Mortgage and each Mortgage Note and Mortgage have been duly
        and properly executed by such parties.

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                      (23) The proceeds of the Mortgage Loan have been fully
        disbursed, there is no requirement for future advances thereunder, and
        any and all requirements as to completion of any on-site or off-site
        improvements and as to disbursements of any escrow funds therefor have
        been complied with. All costs, fees and expenses incurred in making,
        or closing or recording the Mortgage Loan were paid.

                      (24) The related Mortgage contains customary and
        enforceable provisions that render the rights and remedies of the
        holder thereof adequate for the realization against the Mortgaged
        Property of the benefits of the security, including, (i) in the case
        of a Mortgage designated as a deed of trust, by trustee's sale, and
        (ii) otherwise by judicial foreclosure.

                      (25) With respect to each Mortgage constituting 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 such Mortgage, and no fees or expenses are or will become
        payable by the Certificateholders to the trustee under the deed of
        trust, except in connection with a trustee's sale after default by the
        Mortgagor.

                      (26) Each Mortgage Note and each Mortgage is acceptable
        in form to Fannie Mae and Freddie Mac.

                      (27) There exist no deficiencies with respect to escrow
        deposits and payments, if such are required, for which customary
        arrangements for repayment thereof have not been made, and no escrow
        deposits or payments of other charges or payments due the Sellers have
        been capitalized under the Mortgage or the related Mortgage Note.

                      (28) The origination, underwriting, servicing and
        collection practices with respect to each Mortgage Loan have been in
        all respects legal, proper, prudent and customary in the mortgage
        lending and servicing business, as conducted by prudent lending
        institutions which service mortgage loans of the same type in the
        jurisdiction in which the Mortgaged Property is located.

                      (29) There is no pledged account or other security other
        than real estate securing the Mortgagor's obligations.

                      (30) No Mortgage Loan has a shared appreciation feature,
        or other contingent interest feature.

                      (31) Each Mortgage Loan contains a customary "due on
        sale" clause.

                      (32) No less than approximately the percentage specified
        in the Collateral Schedule of the Initial Mortgage Loans in Loan Group
        1 and Loan Group 2 are secured by single family detached dwellings. No
        more than approximately the percentage specified in the Collateral
        Schedule of the Initial Mortgage Loans in Loan Group 1 and Loan Group
        2 are secured by two- to four-family dwellings. No more than
        approximately the percentage specified in the Collateral Schedule of
        the Initial Mortgage Loans in Loan Group 1 and Loan Group 2 are
        secured by low-rise condominium units. No more than approximately the
        percentage specified in the Collateral Schedule of the

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        Initial Mortgage Loans in Loan Group 1 and Loan Group 2 are secured by
        high-rise condominium units. No more than approximately the percentage
        specified in the Collateral Schedule of the Initial Mortgage Loans in
        Loan Group 1 and Loan Group 2 are secured by manufactured housing. No
        more than approximately the percentage specified in the Collateral
        Schedule of the Initial Mortgage Loans in Loan Group 1 and Loan Group
        2 are secured by PUDs.

                      (33) Each Initial Mortgage Loan in Loan Group 1 and Loan
        Group 2 was originated on or after the date specified in the
        Collateral Schedule.

                      (34) Each Initial Mortgage Loan that is an Adjustable
        Rate Mortgage Loan, other than a Two-Year Hybrid Mortgage Loan, a
        Three-Year Hybrid Mortgage Loan or a Five-Year Hybrid Mortgage Loan,
        had an initial Adjustment Date no later than the applicable date
        specified on the Collateral Schedule; each Initial Mortgage Loan that
        is a Two-Year Hybrid Mortgage Loan had an initial Adjustment Date no
        later than the applicable date specified on the Collateral Schedule;
        each Initial Mortgage Loan that is a Three-Year Hybrid Mortgage Loan
        had an initial Adjustment Date no later than the applicable date
        specified on the Collateral Schedule; and each Initial Mortgage Loan
        that is a Five-Year Hybrid Mortgage Loan had an initial Adjustment
        Date no later than the applicable date specified on the Collateral
        Schedule.

                      (35) Approximately the percentage specified in the
        Collateral Schedule of the Initial Mortgage Loans in Loan Group 1 and
        Loan Group 2 provide for a Prepayment Charge.

                      (36) On the basis of representations made by the
        Mortgagors in their loan applications, no more than approximately the
        percentage specified in the Collateral Schedule of the Initial
        Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are
        secured by investor properties, and no less than approximately the
        percentage specified in the Collateral Schedule of the Initial
        Mortgage Loans in Loan Group 1 and Loan Group 2, respectively, are
        secured by owner-occupied Mortgaged Properties that are primary
        residences.

                      (37) At the Cut-off Date, the improvements upon each
        Mortgaged Property are covered by a valid and existing hazard
        insurance policy with a generally acceptable carrier that provides for
        fire and extended coverage and coverage for such other hazards as are
        customary in the area where the Mortgaged Property is located in an
        amount that is at least equal to the lesser of (i) the maximum
        insurable value of the improvements securing such Mortgage Loan or
        (ii) the greater of (a) the outstanding principal balance of the
        Mortgage Loan and (b) an amount such that the proceeds of such policy
        shall be sufficient to prevent the Mortgagor and/or the mortgagee from
        becoming a co-insurer. If the Mortgaged Property is a condominium
        unit, it is included under the coverage afforded by a blanket policy
        for the condominium unit. All such individual insurance policies and
        all flood policies referred to in item (38) below contain a standard
        mortgagee clause naming the applicable Seller or the original
        mortgagee, and its successors in interest, as mortgagee, and the
        applicable Seller has received no notice that any premiums due and
        payable thereon have not been paid; the Mortgage obligates the

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        Mortgagor thereunder to maintain all such insurance, including flood
        insurance, at the Mortgagor's cost and expense, and upon the
        Mortgagor's failure to do so, authorizes the holder of the Mortgage to
        obtain and maintain such insurance at the Mortgagor's cost and expense
        and to seek reimbursement therefor from the Mortgagor.

                      (38) If the Mortgaged Property is in an area identified
        in the Federal Register by the Federal Emergency Management Agency as
        having special flood hazards, a flood insurance policy in a form
        meeting the requirements of the current guidelines of the Flood
        Insurance Administration is in effect with respect to such Mortgaged
        Property with a generally acceptable carrier in an amount representing
        coverage not less than the least of (A) the original outstanding
        principal balance of the Mortgage Loan, (B) the minimum amount
        required to compensate for damage or loss on a replacement cost basis,
        or (C) the maximum amount of insurance that is available under the
        Flood Disaster Protection Act of 1973, as amended.

                      (39) To the best of CHL's knowledge, there is no
        proceeding occurring, pending or threatened for the total or partial
        condemnation of the Mortgaged Property.

                      (40) There is no material monetary default existing
        under any Mortgage or the related Mortgage Note and, to the best of
        CHL's knowledge, there is no material event that, 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
        under the Mortgage or the related Mortgage Note; and no Seller has
        waived any default, breach, violation or event of acceleration.

                      (41) Each Mortgaged Property is improved by a one- to
        four-family residential dwelling, including condominium units and
        dwelling units in PUDs. To the best of CHL's knowledge, no improvement
        to a Mortgaged Property includes a cooperative or a mobile home or
        constitutes other than real property under state law.

                      (42) Each Mortgage Loan is being serviced by the Master
        Servicer.

                      (43) 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 consolidated principal amount does not
        exceed the original principal amount of the Mortgage Loan. The
        Mortgage Note does not permit or obligate the Master Servicer to make
        future advances to the Mortgagor at the option of the Mortgagor.

                      (44) All taxes, governmental assessments, insurance
        premiums, water, sewer and municipal charges, leasehold payments or
        ground rents that 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 that remains unpaid and that has been assessed,
        but is not yet due and payable. Except for (A) payments in the nature
        of escrow payments, and (B) interest accruing from the date of the
        Mortgage Note or date of disbursement of the Mortgage proceeds,
        whichever is later, to the day that precedes by one month the Due

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        Date of the first installment of principal and interest, including
        without limitation, taxes and insurance payments, the Master Servicer
        has not advanced funds, or induced, solicited or knowingly received
        any advance of funds by a party other than the Mortgagor, directly or
        indirectly, for the payment of any amount required by the Mortgage.

                      (45) The Mortgage Loans originated by CHL were
        underwritten in all material respects in accordance with CHL's
        underwriting guidelines for credit blemished quality mortgage loans
        or, with respect to Mortgage Loans purchased by CHL were underwritten
        in all material respects in accordance with customary and prudent
        underwriting guidelines generally used by originators of credit
        blemished quality mortgage loans.

                      (46) Prior to the approval of the Mortgage Loan
        application, an appraisal of the related Mortgaged Property was
        obtained from a qualified appraiser, duly appointed by the originator,
        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; such
        appraisal is in a form acceptable to Fannie Mae and Freddie Mac.

                      (47) None of the Mortgage Loans is a graduated payment
        mortgage loan or a growing equity mortgage loan, and no Mortgage Loan
        is subject to a buydown or similar arrangement.

                      (48) The Mortgage Rates borne by the Initial Mortgage
        Loans in Loan Group 1 and Loan Group 2 as of the Cut-off Date ranged
        between the approximate per annum percentages specified on the
        Collateral Schedule and the weighted average Mortgage Rate as of the
        Cut-off Date was approximately the per annum rate specified on the
        Collateral Schedule.

                      (49) The Mortgage Loans were selected from among the
        outstanding one- to four-family mortgage loans in the applicable
        Seller's portfolio at the Closing Date as to which the representations
        and warranties made as to the Mortgage Loans set forth in this Section
        2.03(b) and Sections 2.03(c) and 2.03(d) can be made. No selection was
        made in a manner that would adversely affect the interests of
        Certificateholders.

                      (50) The Gross Margins on the Initial Mortgage Loans in
        Loan Group 1 and Loan Group 2 range between the approximate
        percentages specified on the Collateral Schedule, and the weighted
        average Gross Margin was approximately the percentage specified in the
        Collateral Schedule.

                      (51) Each of the Initial Mortgage Loans in the Mortgage
        Pool has a Due Date on or before the date specified in the Collateral
        Schedule.

                      (52) The Mortgage Loans, individually and in the
        aggregate, conform in all material respects to the descriptions
        thereof in the Prospectus Supplement.

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                      (53) There is no obligation on the part of any Seller
        under the terms of the Mortgage or related Mortgage Note to make
        payments in addition to those made by the Mortgagor.

                      (54) Any leasehold estate securing a Mortgage Loan has a
        term of not less than five years in excess of the term of the related
        Mortgage Loan.

                      (55) Each Mortgage Loan represents a "qualified
        mortgage" within the meaning of Section 860(a)(3) of the Code (but
        without regard to the rule in Treasury Regulation ss. 1.860G-2(f)(2)
        that treats a defective obligation as a qualified mortgage, or any
        substantially similar successor provision) and applicable Treasury
        regulations promulgated thereunder.

                      (56) No Mortgage Loan was either a "consumer credit
        contract" or a "purchase money loan" as such terms are defined in 16
        C.F.R. ss. 433 nor is any Mortgage Loan a "mortgage" as defined in 15
        U.S.C. ss. 1602(aa).

                      (57) To the extent required under applicable law, each
        originator and subsequent mortgagee or servicer of the Mortgage Loan
        complied with all licensing requirements and was authorized to
        transact and do business in the jurisdiction in which the related
        Mortgaged Property is located at all times when it held or serviced
        the Mortgage Loan. Any and all requirements of any federal, state or
        local laws or regulations, including, without limitation, usury,
        truth-in-lending, real estate settlement procedures, consumer credit
        protection, anti-predatory lending, fair credit reporting, unfair
        collection practice, equal credit opportunity, fair housing and
        disclosure laws and regulations, applicable to the solicitation,
        origination, collection and servicing of such Mortgage Loan have been
        complied with in all material respects; and any obligations of the
        holder of the Mortgage Note, Mortgage and other loan documents have
        been complied with in all material respects; servicing of each
        Mortgage Loan has been in accordance with prudent mortgage servicing
        standards, any applicable laws, rules and regulations and in
        accordance with the terms of the Mortgage Notes, Mortgage and other
        loan documents, whether such origination and servicing was done by the
        applicable Seller, its affiliates, or any third party which originated
        the Mortgage Loan on behalf of, or sold the Mortgage Loan to, any of
        them, or any servicing agent of any of the foregoing.

                      (58) The methodology used in underwriting the extension
        of credit for the Mortgage Loan employs objective mathematical
        principles which relate the borrower's income, assets and liabilities
        to the proposed payment and such underwriting methodology does not
        rely on the extent of the borrower'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 borrower had a reasonable ability to make
        timely payments on the Mortgage Loan.

                      (59) No borrower was required to purchase any credit
        life, disability, accident or health insurance product as a condition
        of obtaining the extension of credit.

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        No borrower obtained a prepaid single-premium credit life, disability,
        accident or health insurance policy in connection with the origination
        of the Mortgage Loan.

                      (60) If the Mortgage Loan provides that the interest
        rate on the principal balance of the related Mortgage Loan may be
        adjusted, all of the terms of the related Mortgage pertaining to
        interest rate adjustments, payment adjustments and adjustments of the
        outstanding principal balance have been made in accordance with the
        terms of the related Mortgage Note and applicable law and are
        enforceable and such adjustments will not affect the priority of the
        Mortgage lien.

                      (61) The Mortgaged Property complies with all applicable
        laws, rules and regulations relating to environmental matters,
        including but not limited to those relating to radon, asbestos and
        lead paint and no Seller nor, to the best of CHL's knowledge, the
        Mortgagor, has received any notice of any violation or potential
        violation of such law.

                      (62) There is no action, suit or proceeding pending, or
        to the best of CHL's knowledge, threatened or likely to be asserted
        with respect to the Mortgage Loan against or affecting any Seller
        before or by any court, administrative agency, arbitrator or
        governmental body.

                      (63) No action, inaction, or event has occurred and no
        state of fact exists or has existed that has resulted or will result
        in the exclusion from, denial of, or defense to coverage under any
        applicable hazard insurance policy, irrespective of the cause of such
        failure of coverage. In connection with the placement of any such
        insurance, no commission, fee, or other compensation has been or will
        be received by CHL or any designee of CHL or any corporation in which
        CHL or any officer, director, or employee had a financial interest at
        the time of placement of such insurance.

                      (64) Each Mortgage Loan has a fully assignable life of
        loan tax service contract which may be assigned without the payment of
        any fee.

                      (65) No Mortgagor has notified CHL or the Master
        Servicer on CHL's behalf, and CHL has no knowledge, of any relief
        requested or allowed to a Mortgagor under the Relief Act or any
        similar state or local law.

                      (66) Each Mortgage Loan was originated by a savings and
        loan association, savings bank, commercial bank, credit union,
        insurance company, or mortgage banking company 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
        2.03 and 2.11 of the National Housing Act.

                      (67) Each Mortgage Loan was (A) originated no earlier
        than six months prior to the time the applicable Seller purchased such
        Mortgage Loan pursuant to a mortgage loan purchase agreement or other
        similar agreement and (B) underwritten or reunderwritten by the
        applicable Seller in accordance with the applicable Seller's
        underwriting guidelines in effect at the time the loan was
        underwritten or reunderwritten, as applicable.

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                      (68) Each Mortgage Loan, at the time it was originated
        and as of the Closing Date or the related Subsequent Transfer Date, as
        applicable, complied in all material respects with applicable local,
        state and federal laws, including, but not limited to, all predatory
        and abusive lending laws.

                      (69) None of the Mortgage Loans is a "high cost"
        mortgage loan as defined by applicable federal, state and local
        predatory and abusive lending laws.

                      (70) Each Prepayment Charge is enforceable and was
        originated in compliance with all applicable federal, state and local
        laws.

                      (71) None of the Mortgage Loans that are secured by
        property located in the State of Illinois are in violation of the
        provisions of the Illinois Interest Act; 815 Ill. Comp. Stat. 205/0.01
        (2004).

                      (72) There is no Mortgage Loan in the Trust Fund that
        was originated on or after March 7, 2003, which is a "high cost home
        loan" as defined under the Georgia Fair Lending Act.

                      (73) No Mortgage Loan in the Trust Fund is a High Cost
        Loan or Covered Loan, as applicable (as such terms are defined in the
        then-current Standard & Poor's LEVELS(R) Glossary which is now Version
        5.6(c), Appendix E) and no Mortgage Loan originated on or after
        October 1, 2002 through March 6, 2003 is governed by the Georgia Fair
        Lending Act.

                      (74) Each Mortgage Loan is secured by a "single family
        residence" within the meaning of Section 25(e)(10) of the Internal
        Revenue Code of 1986 (as amended) (the "Code"). The fair market value
        of the manufactured home securing each Mortgage Loan was at least
        equal to 80% of the adjusted issue price of the contract at either (i)
        the time the contract was originated (determined pursuant to the REMIC
        Provisions) or (ii) the time the contract is transferred to the
        purchaser. Each Mortgage Loan is a "qualified mortgage" under Section
        860G(a)(3) of the Code.

                      (75) No Mortgage Loan in the Trust Fund is a "high cost
        home," "covered" (excluding home loans defined as "covered home loans"
        in the New Jersey Home Ownership Security Act of 2002 that were
        originated between November 26, 2003 and July 7, 2004), "high risk
        home" or "predatory" loan under any applicable state, federal or local
        law (or a similarly classified loan using different terminology under
        a law imposing heightened regulatory scrutiny or additional legal
        liability for residential mortgage loans having high interest rates,
        points and/or fees).

                      (76) There is no Mortgage Loan in the Trust Fund that
        was originated on or after October 1, 2002 and before March 7, 2003,
        which is secured by property located in the State of Georgia.

                      (77) [Reserved].

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                      (78) The representations in Section 2.03(c)(1)-(6) and
        2.03(d)(1)-(6) are true and correct.

          (c) Park Monaco hereby represents and warrants to the Depositor and
the Trustee as follows, as of the Cut-off Date:

                      (1) Park Monaco is duly organized as a Delaware
        corporation and is 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 and each
        Subsequent Transfer Agreement to be conducted by Park Monaco in any
        state in which a Mortgaged Property securing a Park Monaco 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 enforce each Park Monaco Mortgage Loan, to sell
        the Park Monaco Mortgage Loans in accordance with the terms of this
        Agreement and each Subsequent Transfer Agreement and to perform any of
        its other obligations under this Agreement in accordance with the
        terms hereof.

                      (2) Park Monaco has the full company power and authority
        to sell each Park Monaco Mortgage Loan, and to execute, deliver and
        perform, and to enter into and consummate the transactions
        contemplated by this Agreement and each Subsequent Transfer Agreement
        and has duly authorized by all necessary corporate action on the part
        of Park Monaco the execution, delivery and performance of this
        Agreement and each Subsequent Transfer Agreement; and this Agreement
        and each Subsequent Transfer Agreement, assuming the due
        authorization, execution and delivery hereof by the other parties
        hereto, constitutes a legal, valid and binding obligation of Park
        Monaco, enforceable against Park Monaco 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.

                      (3) The execution and delivery of this Agreement and
        each Subsequent Transfer Agreement by Park Monaco, the sale of the
        Park Monaco Mortgage Loans by Park Monaco under this Agreement and
        each Subsequent Transfer Agreement, the consummation of any other of
        the transactions contemplated by this Agreement and each Subsequent
        Transfer Agreement, and the fulfillment of or compliance with the
        terms hereof are in the ordinary course of business of Park Monaco and
        will not (A) result in a material breach of any term or provision of
        the certificate of incorporation or by-laws of Park Monaco 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 Park Monaco is a
        party or by which it may be bound, or (C) constitute a material
        violation of any statute, order or regulation applicable to Park
        Monaco of any court, regulatory body, administrative agency or
        governmental body having jurisdiction over Park Monaco; and Park
        Monaco is not in breach or violation of any material indenture or
        other material agreement or instrument, or in violation of any

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        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 Park Monaco's ability
        to perform or meet any of its obligations under this Agreement.

                      (4) No litigation is pending or, to the best of Park
        Monaco's knowledge, threatened, against Park Monaco that would
        materially and adversely affect the execution, delivery or
        enforceability of this Agreement or any Subsequent Transfer Agreement
        or the ability of Park Monaco to sell the Park Monaco Mortgage Loans
        or to perform any of its other obligations under this Agreement or any
        Subsequent Transfer Agreement in accordance with the terms hereof or
        thereof.

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

                      (6) Park Monaco will treat the transfer of the Park
        Monaco Mortgage Loans to the Depositor as a sale of the Park Monaco
        Mortgage Loans for all tax, accounting and regulatory purposes.

                      (7) Immediately prior to the assignment of each Park
        Monaco Mortgage Loan to the Depositor, Park Monaco had good title to,
        and was the sole owner of, such Park Monaco Mortgage Loan free and
        clear of any pledge, lien, encumbrance or security interest and had
        full right and authority, subject to no interest or participation of,
        or agreement with, any other party, to sell and assign the same
        pursuant to this Agreement.

          (d) Park Sienna hereby represents and warrants to the Depositor and
the Trustee as follows, as of the Cut-off Date:

                      (1) Park Sienna is duly organized as a Delaware limited
        liability company and is 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 and
        each Subsequent Transfer Agreement to be conducted by Park Sienna in
        any state in which a Mortgaged Property securing a Park Sienna
        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 enforce each Park Sienna Mortgage
        Loan, to sell the Park Sienna Mortgage Loans in accordance with the
        terms of this Agreement and each Subsequent Transfer Agreement and to
        perform any of its other obligations under this Agreement in
        accordance with the terms hereof.

                      (2) Park Sienna has the full company power and authority
        to sell each Park Sienna Mortgage Loan, and to execute, deliver and
        perform, and to enter into and

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        consummate the transactions contemplated by this Agreement and each
        Subsequent Transfer Agreement and has duly authorized by all necessary
        company action on the part of Park Sienna the execution, delivery and
        performance of this Agreement and each Subsequent Transfer Agreement;
        and this Agreement and each Subsequent Transfer Agreement, assuming
        the due authorization, execution and delivery hereof by the other
        parties hereto, constitutes a legal, valid and binding obligation of
        Park Sienna, enforceable against Park Sienna 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.

                      (3) The execution and delivery of this Agreement and
        each Subsequent Transfer Agreement by Park Sienna, the sale of the
        Park Sienna Mortgage Loans by Park Sienna under this Agreement and
        each Subsequent Transfer Agreement, the consummation of any other of
        the transactions contemplated by this Agreement and each Subsequent
        Transfer Agreement and the fulfillment of or compliance with the terms
        hereof are in the ordinary course of business of Park Sienna and will
        not (A) result in a material breach of any term or provision of the
        certificate of formation or limited liability company agreement of
        Park Sienna 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 Park Sienna is a party or by which it may be bound, or (C)
        constitute a material violation of any statute, order or regulation
        applicable to Park Sienna of any court, regulatory body,
        administrative agency or governmental body having jurisdiction over
        Park Sienna; and Park Sienna 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 Park Sienna's
        ability to perform or meet any of its obligations under this
        Agreement.

                      (4) No litigation is pending or, to the best of Park
        Sienna's knowledge, threatened, against Park Sienna that would
        materially and adversely affect the execution, delivery or
        enforceability of this Agreement or any Subsequent Transfer Agreement
        or the ability of Park Sienna to sell the Park Sienna Mortgage Loans
        or to perform any of its other obligations under this Agreement or any
        Subsequent Transfer Agreement in accordance with the terms hereof or
        thereof.

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

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                      (6) Park Sienna will treat the transfer of the Park
        Sienna Mortgage Loans to the Depositor as a sale of the Park Sienna
        Mortgage Loans for all tax, accounting and regulatory purposes.

                      (7) Immediately prior to the assignment of each Park
        Sienna Mortgage Loan to the Depositor, Park Sienna had good title to,
        and was the sole owner of, such the Park Sienna Mortgage Loan free and
        clear of any pledge, lien, encumbrance or security interest and had
        full right and authority, subject to no interest or participation of,
        or agreement with, any other party, to sell and assign the same
        pursuant to this Agreement.

          (e) Upon discovery by any of the parties hereto of a breach of a
representation or warranty set forth in Section 2.03(a) through (d) that
materially and adversely affects the interests of the Certificateholders in
any Mortgage Loan, the party discovering such breach shall give prompt notice
thereof to the other parties, the NIM Insurer and the Swap Counterparty. Each
of the Master Servicer and the Sellers (each, a "Representing Party") hereby
covenants with respect to the representations and warranties set forth in
Sections 2.03(a) through (d) that within 90 days of the earlier of the
discovery by such Representing Party or receipt of written notice by such
Representing Party from any party of a breach of any representation or
warranty set forth herein made 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, shall,
(i) if such 90-day period expires prior to the second anniversary of the
Closing Date, remove such Mortgage Loan (a "Deleted Mortgage Loan") from the
Trust Fund and substitute in its place a 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 (a) 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 the Opinion of
Counsel required by Section 2.05 hereof, (b) any such substitution pursuant to
(i) above shall not be effected prior to the additional delivery to the
Trustee of a Request for File Release and (c) any such substitution pursuant
to (i) above shall include a payment by the applicable Representing Party of
any amount as calculated under item (iii) of the definition of "Purchase
Price". Any Representing Party liable for a breach under this Section 2.03
shall promptly reimburse the Master Servicer or the Trustee for any expenses
reasonably incurred by the Master Servicer or the Trustee in respect of
enforcing the remedies for such breach. To enable the Master Servicer to amend
the Mortgage Loan Schedule, any Representing Party liable for a breach under
this Section 2.03 shall, unless it cures such breach in a timely fashion
pursuant to this Section 2.03, promptly notify the Master Servicer whether
such Representing Party intends either to repurchase, or to substitute for,
the Mortgage Loan affected by such breach. With respect to the representations
and warranties described in this Section that are made to the best of the
Representing Party's knowledge, if it is discovered by any of the Depositor,
the Master Servicer, the Sellers 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
Representing Party's lack of knowledge with respect to the substance of such
representation or warranty, such inaccuracy shall be deemed a breach of the
applicable representation or warranty.

          With respect to any Replacement Mortgage Loan or Loans, the
applicable Seller delivering such Replacement Mortgage Loan shall deliver to
the Trustee for the benefit of the

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Certificateholders the related Mortgage Note, Mortgage and assignment of the
Mortgage, and such other documents and agreements as are required by Section
2.01, with the Mortgage Note endorsed and the Mortgage assigned as required by
Section 2.01. 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 applicable Seller delivering such Replacement
Mortgage Loan on such Distribution Date. 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
applicable Seller shall be entitled to retain all amounts received in respect
of such Deleted Mortgage Loan. The Master Servicer shall amend the Mortgage
Loan Schedule for the benefit of the Certificateholders to reflect the removal
of such Deleted Mortgage Loan and the substitution of the Replacement Mortgage
Loan or Loans and the Master Servicer shall deliver the amended Mortgage Loan
Schedule to the Trustee. Upon such substitution, the Replacement Mortgage Loan
or Loans shall be subject to the terms of this Agreement in all respects, and
the applicable Seller delivering such Replacement Mortgage Loan 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 2.03(b), (c) or (d) with respect to such Mortgage Loan. Upon any
such substitution and the deposit to the Certificate Account of the amount
required to be deposited therein in connection with such substitution as
described in the following paragraph, the Trustee shall release to the
Representing Party the Mortgage File relating to such Deleted Mortgage Loan
and held for the benefit of the Certificateholders and shall execute and
deliver at the Master Servicer's direction such instruments of transfer or
assignment as have been prepared by the Master Servicer, in each case without
recourse, as shall be necessary to vest in the applicable Seller, or its
respective designee, title to the Trustee's interest in any Deleted Mortgage
Loan substituted for pursuant to this Section 2.03.

          For any month in which any Seller substitutes one or more
Replacement Mortgage Loans for one or more Deleted Mortgage Loans, the Master
Servicer will determine the amount (if any) by which the aggregate principal
balance of all such 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 all such
Deleted Mortgage Loans. An amount equal to the aggregate of the deficiencies
described in the preceding sentence (such amount, the "Substitution Adjustment
Amount") shall be forwarded by the applicable Seller to the Master Servicer
and deposited by the Master Servicer into the Certificate Account not later
than the Determination Date for the Distribution Date relating to the
Prepayment Period during which the related Mortgage Loan became required to be
purchased or replaced hereunder.

          In the event that a Seller shall have repurchased a Mortgage Loan,
the Purchase Price therefor shall be deposited in the Certificate Account
pursuant to Section 3.05 on the Determination Date for the Distribution Date
in the month following the month during which such Seller became obligated to
repurchase or replace such Mortgage Loan and upon such deposit of the Purchase
Price, the delivery of the Opinion of Counsel required by Section 2.05, if
any, and the receipt of a Request for File Release, the Trustee shall release
the related Mortgage File held for the benefit of the Certificateholders to
such Seller, and the Trustee shall execute and deliver at such Person's
direction the related instruments of transfer or assignment prepared by

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such Seller, 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 such Seller to any Mortgage Loan purchased pursuant
to this Section 2.03. It is understood and agreed that the obligation under
this Agreement of the Sellers to cure, repurchase or replace any Mortgage Loan
as to which a breach has occurred and is continuing shall constitute the sole
remedy against the Sellers respecting such breach available to
Certificateholders, the Depositor or the Trustee.

          (f) The representations and warranties set forth in this Section
2.03 shall survive delivery of the respective Mortgage Files to the Trustee
for the benefit of the Certificateholders with respect to each Mortgage Loan.

          Section 2.04 Representations and Warranties of the Depositor.

          The Depositor hereby represents and warrants to the Master Servicer
and the Trustee as follows, as of the date hereof and as of each Subsequent
Transfer Date:

                      (1) 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 and each Subsequent Transfer Agreement.

                      (2) 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 each
        Subsequent Transfer Agreement and has duly authorized, by all
        necessary corporate action on its part, the execution, delivery and
        performance of this Agreement and each Subsequent Transfer Agreement;
        and this Agreement and each Subsequent Transfer 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, reorganization, moratorium and other similar laws
        affecting creditors' rights generally and (ii) general principles of
        equity, regardless of whether enforcement is sought in a proceeding in
        equity or at law.

                      (3) The execution and delivery of this Agreement and
        each Subsequent Transfer 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

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<PAGE>

        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.

                      (4) 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 any Subsequent Transfer Agreement
        or the ability of the Depositor to perform its obligations under this
        Agreement or any Subsequent Transfer Agreement in accordance with the
        terms hereof or thereof.

                      (5) 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 any Subsequent Transfer 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 with
respect to each Mortgage Loan, as of the Closing Date or the related
Subsequent Transfer Date, as applicable, following the transfer of such
Mortgage Loan to it by the Sellers, the Depositor had good title to the
Initial Mortgage Loans or related Subsequent Mortgage Loans, as applicable,
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 the two immediately preceding paragraphs shall survive delivery
of the Mortgage Files to the Trustee. Upon discovery by the Depositor or the
Trustee, of a breach of any of the foregoing representations and warranties
set forth in the immediately preceding paragraph (referred to herein as a
"breach"), which breach materially and adversely affects the interest of the
Certificateholders, the party discovering such breach shall give prompt
written notice to the others and to each Rating Agency, the NIM Insurer and
the Swap Counterparty. The Depositor hereby covenants with respect to the
representations and warranties made by it in this Section 2.04 that within 90
days of the earlier of the discovery by it or receipt of written notice by it
from any party of a breach of any representation or warranty set forth herein
made 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, shall repurchase or
replace the affected Mortgage Loan or Loans in accordance with the procedure
set forth in Section 2.03(e).

          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, 2.03 or
2.04 shall be made unless the Representing Party making such repurchase or
substitution delivers to the Trustee an Opinion of Counsel (which such
Representing Party shall use reasonable efforts to obtain), 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 the Trust
Fund or contributions after the Closing Date, as defined in

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sections 860F(a)(2) and 860G(d) of the Code, respectively or (ii) cause the
any REMIC formed hereunder 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, 2.03 or 2.04) upon the earlier of (a) the occurrence of a default or
imminent default with respect to such 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, any Seller, the Master Servicer
or the Trustee that any Mortgage Loan does not constitute a "qualified
mortgage" within the meaning of section 860G(a)(3) of the Code, the party
discovering such fact shall promptly (and in any event within five Business
Days of discovery) give written notice thereof to the other parties and the
NIM Insurer. In connection therewith, the Trustee shall require CHL, at CHL's
option, to either (i) substitute, if the conditions in Section 2.03(e) with
respect to substitutions are satisfied, a Replacement Mortgage Loan for the
affected Mortgage Loan, or (ii) repurchase the affected Mortgage Loan within
90 days of such discovery in the same manner as it would a Mortgage Loan for a
breach of representation or warranty contained in Section 2.03. The Trustee
shall reconvey to CHL 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 Authentication and Delivery of Certificates.

          The Trustee acknowledges the transfer and assignment to it of the
Trust Fund and, concurrently with such transfer and assignment, has executed,
authenticated and delivered, to or upon the order of the Depositor, the
Certificates in authorized denominations evidencing the entire ownership of
the Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the
rights referred to above for the benefit of all present and future Holders of
the Certificates and to perform the duties set forth in this Agreement.

          Section 2.07 Covenants of the Master Servicer.

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

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

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

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                                  ARTICLE III.
                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

             Section 3.01 Master Servicer to Service Mortgage Loans.

          For and on behalf of the Certificateholders, the Master Servicer
shall service and administer the Mortgage Loans in accordance with customary
and usual standards of practice of prudent mortgage loan lenders in the
respective states in which the Mortgaged Properties are located, including
taking all required and appropriate actions under each Required Insurance
Policy. In connection with such servicing and administration, the Master
Servicer shall have full power and authority, acting alone and/or through
subservicers as provided in Section 3.02 hereof, subject to the terms hereof
(i) to execute and deliver, on behalf of the Certificateholders and the
Trustee, customary consents or waivers and other instruments and documents,
(ii) to consent to transfers of any Mortgaged Property and assumptions of the
Mortgage Notes and related Mortgages (but only in the manner provided in this
Agreement), (iii) to collect any Insurance Proceeds, other Liquidation
Proceeds and Subsequent Recoveries, and (iv) subject to Section 3.12(b), to
effectuate foreclosure or other conversion of the ownership of the Mortgaged
Property securing any Mortgage Loan; provided that the Master Servicer shall
take no action that is inconsistent with or prejudices the interests of the
Trustee or the Certificateholders in any Mortgage Loan or the rights and
interests of the Depositor and the Trustee under this Agreement. The Master
Servicer shall represent and protect the interest of the Trustee in the same
manner as it currently protects its own interest in mortgage loans in its own
portfolio in any claim, proceeding or litigation regarding a Mortgage Loan and
shall not make or permit any modification, waiver or amendment of any term of
any Mortgage Loan which would (i) cause any REMIC formed hereunder to fail to
qualify as a REMIC or (ii) result in the imposition of any tax under section
860(a) or 860(d) of the Code, but in any case the Master Servicer shall not
act in any manner that is a lesser standard than that provided in the first
sentence of this Section 3.01. Without limiting the generality of the
foregoing, the Master Servicer, in its own name or in the name of the
Depositor and the Trustee, is hereby authorized and empowered by the Depositor
and the Trustee, when the Master Servicer believes it appropriate in its
reasonable judgment, to execute and deliver, on behalf of the Trustee, the
Depositor, the Certificateholders or any of them, any and all instruments of
satisfaction or cancellation, or of partial or full release or discharge and
all other comparable instruments, with respect to the Mortgage Loans, and with
respect to the Mortgaged Properties held for the benefit of the
Certificateholders. The Master Servicer shall prepare and deliver to the
Depositor and/or the Trustee such documents requiring execution and delivery
by any or all of them as are necessary or appropriate to enable the Master
Servicer to service and administer the Mortgage Loans. Upon receipt of such
documents, the Depositor and/or the Trustee shall execute such documents and
deliver them to the Master Servicer. The Master Servicer further is authorized
and empowered by the Trustee, on behalf of the Certificateholders and the
Trustee, in its own name or in the name of the Subservicer, when the Master
Servicer or the Subservicer, as the case may be, believes it appropriate in
its best judgment to register any Mortgage Loan on the MERS(R) System, or
cause the removal from the registration of any Mortgage Loan on the MERS(R)
System, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment and
other comparable instruments with respect to such assignment or re-recording
of a Mortgage in the name of MERS, solely as nominee for the Trustee and its
successors and assigns.

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<PAGE>

          In accordance with the standards of the preceding paragraph, the
Master Servicer shall advance or cause to be advanced funds as necessary for
the purpose of effecting the payment of taxes and assessments on the Mortgaged
Properties, which advances shall be reimbursable in the first instance from
related collections from the Mortgagors pursuant to Section 3.06, and further
as provided in Section 3.08. All costs incurred by the Master Servicer, if
any, in effecting the timely payments of taxes and assessments on the
Mortgaged Properties and related insurance premiums shall not, for the purpose
of calculating monthly distributions to the Certificateholders, be added to
the Stated Principal Balance under the related Mortgage Loans, notwithstanding
that the terms of such Mortgage Loans so permit.

          The Master Servicer shall deliver a list of Servicing Officers to
the Trustee by the Closing Date.

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

          In the event that a shortfall in any collection on or liability with
respect to any Mortgage Loan results from or is attributable to adjustments to
Mortgage Rates, Scheduled Payments or Stated Principal Balances that were made
by the Master Servicer in a manner not consistent with the terms of the
related Mortgage Note and this Agreement, the Master Servicer, upon discovery
or receipt of notice thereof, immediately shall deliver to the Trustee for
deposit in the Distribution Account from its own funds the amount of any such
shortfall and shall indemnify and hold harmless the Trust Fund, the Trustee,
the Depositor and any successor master servicer in respect of any such
liability. Such indemnities shall survive the termination or discharge of this
Agreement. Notwithstanding the foregoing, this Section 3.01 shall not limit
the ability of the Master Servicer to seek recovery of any such amounts from
the related Mortgagor under the terms of the related Mortgage Note, as
permitted by law and shall not be an expense of the Trust Fund.

          Section 3.02 Subservicing; Enforcement of the Obligations of Master
Servicer.

          (a) The Master Servicer may arrange for the subservicing of any
Mortgage Loan by a subservicer (each, a "Subservicer") pursuant to a
subservicing agreement (each, a "Subservicing Agreement"); provided that (i)
such subservicing arrangement and the terms of the related subservicing
agreement must provide for the servicing of such Mortgage Loans in a manner
consistent with the servicing arrangements contemplated hereunder, (ii) that
such subservicing agreements would not result in a withdrawal or a downgrading
by any Rating Agency of the ratings on any Class of Certificates, as evidenced
by a letter to that effect delivered by each Rating Agency to the Depositor
and the NIM Insurer and (iii) the NIM Insurer shall have consented to such
subservicing agreements (which consent shall not be unreasonably withheld)
with Subservicers, for the servicing and administration of the Mortgage Loans.
The Master Servicer shall deliver to the Trustee copies of all Sub-Servicing
Agreements, and any amendments or modifications thereof, promptly upon the
Master Servicer's execution and

                                      90
<PAGE>

delivery of such instruments. The Master Servicer, with the written consent of
the NIM Insurer (which consent shall not be unreasonably withheld), shall be
entitled to terminate any Subservicing Agreement and the rights and
obligations of any Subservicer pursuant to any Subservicing Agreement in
accordance with the terms and conditions of such Subservicing Agreement.
Notwithstanding the provisions of any subservicing agreement, any of the
provisions of this Agreement relating to agreements or arrangements between
the Master Servicer or a subservicer or reference to actions taken through a
Master Servicer or otherwise, the Master Servicer shall remain obligated and
liable to the Depositor, the Trustee and the Certificateholders for the
servicing and administration of the Mortgage Loans in accordance with the
provisions of this Agreement without diminution of such obligation or
liability by virtue of such subservicing agreements or arrangements or by
virtue of indemnification from the subservicer and to the same extent and
under the same terms and conditions as if the Master Servicer alone were
servicing and administering the Mortgage Loans. Every subservicing agreement
entered into by the Master Servicer shall contain a provision giving the
successor Master Servicer the option to terminate such agreement without cost
in the event a successor Master Servicer is appointed. All actions of each
subservicer performed pursuant to the related subservicing agreement shall be
performed as an agent of the Master Servicer with the same force and effect as
if performed directly by the Master Servicer.

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

          Section 3.03 Rights of the Depositor, the Sellers, the
                       Certificateholders, the NIM Insurer and the Trustee in
                       Respect of the Master Servicer.

          None of the Trustee, the Sellers, the Certificateholders, the NIM
Insurer or the Depositor shall have any responsibility or liability for any
action or failure to act by the Master Servicer, and none of them is obligated
to supervise the performance of the Master Servicer hereunder or otherwise.
The Master Servicer shall afford (and any Subservicing Agreement shall provide
that each Subservicer shall afford) the Depositor, the NIM Insurer and the
Trustee, upon reasonable notice, during normal business hours, access to all
records maintained by the Master Servicer (and any such Subservicer) in
respect of the Master Servicer's rights and obligations hereunder and access
to officers of the Master Servicer (and those of any such Subservicer)
responsible for such obligations. Upon request, the Master Servicer shall
furnish to the Depositor, the NIM Insurer and the Trustee its (and any such
Subservicer's) most recent financial statements and such other information
relating to the Master Servicer's capacity to perform its obligations under
this Agreement that it possesses. To the extent such information is not
otherwise available to the public, the Depositor, the NIM Insurer and the
Trustee shall not disseminate any information obtained pursuant to the
preceding two sentences without the Masters Servicer's (or any such
Subservicer's) written consent, except as required pursuant to this Agreement
or to the extent that it is necessary to do so (i) in working with legal
counsel, auditors, taxing authorities or other governmental agencies, rating
agencies or reinsurers or (ii) pursuant to any law, rule, regulation, order,
judgment, writ, injunction or decree of any court or governmental authority
having jurisdiction over the Depositor, the Trustee, the NIM Insurer or the
Trust Fund, and in either case, the Depositor, the NIM Insurer or the Trustee,
as the case may

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be, shall use its reasonable best efforts to assure the confidentiality of any
such disseminated non-public information. The Depositor may, but is not
obligated to, enforce the obligations of the Master Servicer under this
Agreement and may, but is not obligated to, perform, or cause a designee to
perform, any defaulted obligation of the Master Servicer under this Agreement
or exercise the rights of the Master Servicer under this Agreement; provided
by virtue of such performance by the Depositor of its designee. The Depositor
shall not have any responsibility or liability for any action or failure to
act by the Master Servicer and is not obligated to supervise the performance
of the Master Servicer under this Agreement or otherwise.

          Section 3.04 Trustee to Act as Master Servicer.

          In the event that the Master Servicer shall for any reason no longer
be the Master Servicer hereunder (including by reason of an Event of Default
or termination by the Depositor), the Trustee or its designee shall thereupon
assume all of the rights and obligations of the Master Servicer hereunder
arising thereafter (except that the Trustee shall not be (i) liable for losses
of the Master Servicer pursuant to Section 3.10 hereof or any acts or
omissions of the predecessor Master Servicer hereunder, (ii) obligated to make
Advances if it is prohibited from doing so by applicable law, (iii) obligated
to effectuate repurchases or substitutions of Mortgage Loans hereunder,
including pursuant to Section 2.02 or 2.03 hereof, (iv) responsible for
expenses of the Master Servicer pursuant to Section 2.03 or (v) deemed to have
made any representations and warranties hereunder, including pursuant to
Section 2.03 or the first paragraph of Section 6.02 hereof). If the Master
Servicer shall for any reason no longer be the Master Servicer (including by
reason of any Event of Default or termination by the Depositor), the Trustee
(or any other successor servicer) may, at its option, succeed to any rights
and obligations of the Master Servicer under any subservicing agreement in
accordance with the terms thereof; provided that the Trustee (or any other
successor servicer) shall not incur any liability or have any obligations in
its capacity as servicer under a subservicing agreement arising prior to the
date of such succession unless it expressly elects to succeed to the rights
and obligations of the Master Servicer thereunder; and the Master Servicer
shall not thereby be relieved of any liability or obligations under the
subservicing agreement arising prior to the date of such succession.

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

          Section 3.05 Collection of Mortgage Loan Payments; Certificate
                    Account; Distribution Account; Pre-Funding Account; Seller
                    Shortfall Interest Requirement.

          (a) The Master Servicer shall make reasonable efforts in accordance
with customary and usual standards of practice of prudent mortgage lenders in
the respective states in which the Mortgaged Properties are located to collect
all payments called for under the terms and provisions of the Mortgage Loans
to the extent such procedures shall be consistent with this Agreement and the
terms and provisions of any related Required Insurance Policy. Consistent with
the foregoing, the Master Servicer may in its discretion (i) waive any late
payment charge

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or, subject to Section 3.19, any Prepayment Charge or penalty interest in
connection with the prepayment of a Mortgage Loan and (ii) extend the due
dates for payments due on a Mortgage Note for a period not greater than 270
days. In the event of any such arrangement, the Master Servicer shall make
Advances on the related Mortgage Loan during the scheduled period in
accordance with the amortization schedule of such Mortgage Loan without
modification thereof by reason of such arrangements. In addition, the NIM
Insurer's prior written consent shall be required for any waiver of Prepayment
Charges or for the extension of the due dates for payments due on a Mortgage
Note, if the aggregate number of outstanding Mortgage Loans that have been
granted such waivers or extensions exceeds 5% of the aggregate number of
Initial Mortgage Loans and Subsequent Mortgage Loans. The Master Servicer
shall not be required to institute or join in litigation with respect to
collection of any payment (whether under a Mortgage, Mortgage Note or
otherwise or against any public or governmental authority with respect to a
taking or condemnation) if it reasonably believes that enforcing the provision
of the Mortgage or other instrument pursuant to which such payment is required
is prohibited by applicable law.

          (b) The Master Servicer shall establish and maintain a Certificate
Account into which the Master Servicer shall deposit or cause to be deposited
on a daily basis within two Business Days of receipt, except as otherwise
specifically provided herein, the following payments and collections remitted
by Subservicers or received by it in respect of 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:

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

                    (2) all payments on account of interest on the Mortgage
          Loans (net of the related Servicing Fee and Prepayment Interest
          Excess permitted under Section 3.15 hereof to the extent not
          previously paid to or withheld by the Master Servicer);

                    (3) all Insurance Proceeds;

                    (4) all Liquidation Proceeds and Subsequent Recoveries,
          other than proceeds to be applied to the restoration or repair of
          the Mortgaged Property or released to the Mortgagor in accordance
          with the Master Servicer's normal servicing procedures;

                    (5) all Compensating Interest;

                    (6) any amount required to be deposited by the Master
          Servicer pursuant to Section 3.05(e) in connection with any losses
          on Permitted Investments;

                    (7) any amounts required to be deposited by the Master
          Servicer pursuant to Section 3.10 hereof;

                    (8) the Purchase Price and any Substitution Adjustment
          Amount;

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                    (9) all Advances made by the Master Servicer or the
          Trustee pursuant to Section 4.01 hereof;

                    (10) all Prepayment Charges and Master Servicer Prepayment
          Charge Payment Amounts; and

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

          The foregoing requirements for remittance by the Master Servicer
into the Certificate Account shall be exclusive, it being understood and
agreed that, without limiting the generality of the foregoing, payments in the
nature of late payment charges or assumption fees, if collected, need not be
remitted by the Master Servicer. In the event that the Master Servicer shall
remit any amount not required to be remitted and not otherwise subject to
withdrawal pursuant to Section 3.08 hereof, it may at any time withdraw or
direct the institution maintaining the Certificate Account, to withdraw such
amount from the Certificate Account, any provision herein to the contrary
notwithstanding. Such withdrawal or direction may be accomplished by
delivering written notice thereof to the institution maintaining the
Certificate Account, that describes the amounts deposited in error in the
Certificate Account. The Master Servicer shall maintain adequate records with
respect to all withdrawals made pursuant to this Section. All funds deposited
in the Certificate Account shall be held in trust for the Certificateholders
until withdrawn in accordance with Section 3.08.

          No later than 1:00 p.m. Pacific time on the Business Day prior to
the Master Servicer Advance Date in each of February 2006, March 2006 and
April 2006, CHL shall remit to the Master Servicer, and the Master Servicer
shall deposit in the Certificate Account, the Seller Shortfall Interest
Requirement (if any) for such Master Servicer Advance Date.

          (c) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Distribution Account. The Trustee shall, promptly upon
receipt, deposit in the Distribution Account and retain therein the following:

                    (1) the aggregate amount remitted by the Master Servicer
          pursuant to the second paragraph of Section 3.08(a); and

                    (2) any amount required to be deposited by the Master
          Servicer pursuant to Section 3.05(e) in connection with any losses
          on Permitted Investments.

          The foregoing requirements for remittance by the Master Servicer and
deposit by the Trustee into the Distribution Account shall be exclusive. In
the event that the Master Servicer shall remit any amount not required to be
remitted and not otherwise subject to withdrawal pursuant to Section 3.08
hereof, it may at any time direct the Trustee to withdraw such amount from the
Distribution Account, any provision herein to the contrary notwithstanding.
Such direction may be accomplished by delivering a written notice to the
Trustee that describes the amounts deposited in error in the Distribution
Account. All funds deposited in the Distribution Account shall be held by the
Trustee in trust for the Certificateholders until disbursed in accordance with
this Agreement or withdrawn in accordance with Section 3.08. In no event shall
the Trustee incur liability for withdrawals from the Distribution Account at
the direction of the Master Servicer.

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          (d) If the Pre-Funded Amount is greater than zero, the Trustee shall
establish and maintain, on behalf of the Certificateholders, the Pre-Funding
Account, and on the Closing Date, CHL shall remit the Pre-Funded Amount to the
Trustee for deposit in the Pre-Funding Account.

          On the Business Day before the Distribution Date following the end
of the Funding Period, the Trustee shall (i) withdraw the amount on deposit in
the Pre-Funding Account (net of investment income), (ii) promptly deposit such
amount in the Distribution Account, and (iii) distribute each amount to the
Certificates on the Distribution Date pursuant to Section 4.04.

          (e) Each institution that maintains the Certificate Account, the
Distribution Account or the Pre-Funding Account shall invest the funds in each
such account, as directed by the Master Servicer, in Permitted Investments,
which shall mature not later than (x) in the case of the Certificate Account,
the second Business Day next preceding the related Distribution Account
Deposit Date (except that if such Permitted Investment is an obligation of the
institution that maintains such Certificate Account, then such Permitted
Investment shall mature not later than the Business Day next preceding such
Distribution Account Deposit Date) and (y) in the case of the Distribution
Account and the Pre-Funding Account, the Business Day immediately preceding
the first Distribution Date that follows the date of such investment (except
that if such Permitted Investment is an obligation of the institution that
maintains such Distribution Account or Pre-Funding Account, then such
Permitted Investment shall mature not later than such Distribution Date), in
each case, 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. In the case of (i) the Certificate Account
and the Distribution Account, all income and gain net of any losses realized
from any such investment shall be for the benefit of the Master Servicer as
servicing compensation and shall be remitted to it monthly as provided herein
and (ii) the Pre-Funding Account, all income and gain net of any losses
realized from any such investment shall be for the benefit of the Depositor
and shall be remitted to the Depositor as provided herein. The amount of any
losses incurred in the Certificate Account or the Distribution Account in
respect of any such investments shall be deposited by the Master Servicer in
the Certificate Account or paid to the Trustee for deposit into the
Distribution Account out of the Master Servicer's own funds immediately as
realized. The amount of any losses incurred in the Pre-Funding Account in
respect of any such investments shall be paid by the Master Servicer to the
Trustee for deposit into the Pre-Funding Account out of the Master Servicer's
own funds immediately as realized. The Trustee shall not be liable for the
amount of any loss incurred in respect of any investment or lack of investment
of funds held in the Certificate Account, the Distribution Account or the
Pre-Funding Account and made in accordance with this Section 3.05.

          (f) The Master Servicer shall give at least 30 days' advance notice
to the Trustee, each Seller, each Rating Agency and the Depositor of any
proposed change of location of the Certificate Account prior to any change
thereof. The Trustee shall give at least 30 days' advance notice to the Master
Servicer, each Seller, each Rating Agency and the Depositor of any proposed
change of the location of the Distribution Account, the Pre-Funding Account or
the Carryover Reserve Fund prior to any change thereof.

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          (g) Except as otherwise expressly provided in this Agreement, if any
default occurs under any Permitted Investment, the Trustee may and, subject to
Sections 8.01 and 8.02(a)(4), at the request of the Holders of Certificates
representing more than 50% of the Voting Rights or the NIM Insurer, shall take
any action appropriate to enforce payment or performance, including the
institution and prosecution of appropriate proceedings.

          Section 3.06 Collection of Taxes, Assessments and Similar Items;
                    Escrow Accounts.

          To the extent required by the related Mortgage Note, the Master
Servicer shall establish and maintain one or more accounts (each, an "Escrow
Account") and deposit and retain therein all collections from the Mortgagors
(or advances by the Master Servicer) for the payment of taxes, assessments,
hazard insurance premiums or comparable items for the account of the
Mortgagors. Nothing herein shall require the Master Servicer to compel a
Mortgagor to establish an Escrow Account in violation of applicable law.

          Withdrawals of amounts so collected from the Escrow Accounts may be
made only to effect timely payment of taxes, assessments, hazard insurance
premiums, condominium or PUD association dues, or comparable items, to
reimburse the Master Servicer out of related collections for any payments made
pursuant to Sections 3.01 hereof (with respect to taxes and assessments and
insurance premiums) and 3.10 hereof (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 Mortgagors on balances in the Escrow Account or to clear and
terminate the Escrow Account at the termination of this Agreement in
accordance with Section 9.01 hereof. The Escrow Accounts shall not be a part
of the Trust Fund.

          Section 3.07 Access to Certain Documentation and Information
                    Regarding the Mortgage Loans.

          The Master Servicer shall afford the Depositor, the NIM Insurer and
the Trustee reasonable access to all records and documentation regarding the
Mortgage Loans and all accounts, insurance policies and other matters relating
to this Agreement, such access being afforded without charge, but only upon
reasonable request and during normal business hours at the offices of the
Master Servicer designated by it. Upon request, the Master Servicer shall
furnish to the Trustee and the NIM Insurer its most recent publicly available
financial statements and any other information relating to its capacity to
perform its obligations under this Agreement reasonably requested by the NIM
Insurer.

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

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          Section 3.08 Permitted Withdrawals from the Certificate Account,
                    Distribution Account, Carryover Reserve Fund and the
                    Principal Reserve Fund.

          (a) The Master Servicer may from time to time make withdrawals from
the Certificate Account for the following purposes:

                    (i) to pay to the Master Servicer (to the extent not
          previously paid to or withheld by the Master Servicer), as servicing
          compensation in accordance with Section 3.15, 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 to the Master Servicer, those
          other amounts set forth in Section 3.15;

                    (ii) to reimburse each of the Master Servicer and the
          Trustee for Advances made by it with respect to the Mortgage Loans,
          such right of reimbursement pursuant to this subclause (ii) being
          limited to amounts received on particular Mortgage Loan(s)
          (including, for this purpose, Liquidation Proceeds, Insurance
          Proceeds and Subsequent Recoveries) that represent late recoveries
          of payments of principal and/or interest on such particular Mortgage
          Loan(s) in respect of which any such Advance was made;

                    (iii) [Reserved];

                    (iv) to reimburse each of the Master Servicer and the
          Trustee for any Nonrecoverable Advance previously made;

                    (v) to reimburse the Master Servicer from Insurance
          Proceeds for Insured Expenses covered by the related Insurance
          Policy;

                    (vi) to pay the Master Servicer any unpaid Servicing Fees
          and to reimburse it for any unreimbursed Servicing Advances, the
          Master Servicer's right to reimbursement of Servicing Advances
          pursuant to this subclause (vi) with respect to any Mortgage Loan
          being limited to amounts received on particular Mortgage Loan(s)
          (including, for this purpose, Liquidation Proceeds, Insurance
          Proceeds and Subsequent Recoveries and purchase and repurchase
          proceeds) that represent late recoveries of the payments for which
          such advances were made pursuant to Section 3.01 or Section 3.06;

                    (vii) to pay to the applicable Seller, the Depositor or
          the Master Servicer, as applicable, with respect to each Mortgage
          Loan or property acquired in respect thereof that has been purchased
          pursuant to Section 2.02, 2.03, 2.04 or 3.12, all amounts received
          thereon and not taken into account in determining the related
          Purchase Price of such repurchased Mortgage Loan;

                    (viii) to reimburse the applicable Seller, the Master
          Servicer, the NIM Insurer or the Depositor for expenses incurred by
          any of them in connection with the Mortgage Loans or Certificates
          and reimbursable pursuant to Section 6.03 hereof; provided that such
          amount shall only be withdrawn following the

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          withdrawal from the Certificate Account for deposit into the
          Distribution Account pursuant to the following paragraph;

                    (ix) to pay any lender-paid primary mortgage insurance
          premiums;

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

                    (xi) to clear and terminate the Certificate Account upon
          termination of this Agreement pursuant to Section 9.01 hereof.

          In addition, no later than 1:00 p.m. Pacific time on the
Distribution Account Deposit Date, the Master Servicer shall withdraw from the
Certificate Account and remit to the Trustee the Interest Remittance Amount
and Principal Remittance Amount for each Loan Group, and the Trustee shall
deposit such amount in the Distribution Account.

          The Trustee shall establish and maintain, on behalf of the
Certificateholders, a Principal Reserve Fund in the name of the Trustee. On
the Closing Date, CHL shall deposit into the Principal Reserve Fund $300.00.
Funds on deposit in the Principal Reserve Fund shall not be invested. The
Principal Reserve Fund shall be treated as an "outside reserve fund" under
applicable Treasury regulations and shall not be part of any REMIC created
under this Agreement.

          On the Business Day before the first Distribution Date, the Trustee
shall transfer $100.00 from the Principal Reserve Fund to the Distribution
Account, and on the first Distribution Date, the Trustee shall withdraw $100
and distribute such amount to the Class A-R Certificates in reduction of the
Certificate Principal Balance thereof.

          On the Business Day before the Class PF Principal Distribution Date,
the Trustee shall transfer $100.00 from the Principal Reserve Fund to the
Distribution Account and shall distribute such amount to the Class PF
Certificates on the Class PF Principal Distribution Date. On the Business Day
before the Class PV Principal Distribution Date, the Trustee shall transfer
from the Principal Reserve Fund to the Distribution Account $100.00 and shall
distribute such amount to the Class PV Certificates on the Class PV Principal
Distribution Date. Following the distributions to be made in accordance with
the two preceding sentences, the Trustee shall then terminate the Principal
Reserve Fund.

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

          (b) The Trustee shall withdraw funds from the Distribution Account
for distribution to the Certificate holders and remittance to the Swap Account
in the manner specified

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in this Agreement (and to withhold from the amounts so withdrawn, the amount
of any taxes that it is authorized to retain pursuant to the penultimate
paragraph of Section 8.11). In addition, the Trustee may from time to time
make withdrawals from the Distribution Account for the following purposes:

                    (i) to pay the Trustee the Trustee Fee on each
          Distribution Date;

                    (ii) to pay to the Master Servicer, as additional
          servicing compensation, earnings on or investment income with
          respect to funds in or credited to the Distribution Account;

                    (iii) to withdraw pursuant to Section 3.05 any amount
          deposited in the Distribution Account and not required to be
          deposited therein;

                    (iv) to reimburse the Trustee for any unreimbursed
          Advances made by it pursuant to Section 4.01(d) hereof, such right
          of reimbursement pursuant to this subclause (iv) being limited to
          (x) amounts received on the related Mortgage Loan(s) in respect of
          which any such Advance was made and (y) amounts not otherwise
          reimbursed to the Trustee pursuant to Section 3.08(a)(ii) hereof;

                    (v) to reimburse the Trustee for any Nonrecoverable
          Advance previously made by the Trustee pursuant to Section 4.01(d)
          hereof, such right of reimbursement pursuant to this subclause (v)
          being limited to amounts not otherwise reimbursed to the Trustee
          pursuant to Section 3.08(a)(iv) hereof; and

                    (vi) to clear and terminate the Distribution Account upon
          termination of the Agreement pursuant to Section 9.01 hereof.

          (c) The Trustee shall withdraw funds from the Carryover Reserve Fund
for distribution to the Certificateholders in the manner specified in this
Agreement (and to withhold from the amounts so withdrawn, the amount of any
taxes that it is authorized to retain pursuant to the penultimate paragraph of
Section 8.11). In addition, the Trustee may from time to time make withdrawals
from the Carryover Reserve Fund for the following purposes:

                    (1) to withdraw any amount deposited in the Carryover
          Reserve Fund and not required to be deposited therein; and

                    (2) to clear and terminate the Carryover Reserve Fund upon
          termination of the Agreement pursuant to Section 9.01 hereof.

          Section 3.09 [Reserved].

          Section 3.10 Maintenance of Hazard Insurance.

          The Master Servicer shall cause to be maintained, for each Mortgage
Loan, hazard insurance with extended coverage in an amount that is at least
equal to the lesser of (i) the maximum insurable value of the improvements
securing such Mortgage Loan and (ii) the greater of (a) the outstanding
principal balance of the Mortgage Loan and (b) an amount such that the

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proceeds of such policy shall be sufficient to prevent the related
Mortgagor and/or mortgagee from becoming a co-insurer. Each such policy of
standard hazard insurance shall contain, or have an accompanying endorsement
that contains, a standard mortgagee clause. The Master Servicer shall also
cause flood insurance to be maintained on property acquired upon foreclosure
or deed in lieu of foreclosure of any Mortgage Loan, to the extent described
below. Pursuant to Section 3.05 hereof, any amounts collected by the Master
Servicer under any such policies (other than the amounts to be applied to the
restoration or repair of the related Mortgaged Property or property thus
acquired or amounts released to the Mortgagor in accordance with the Master
Servicer's normal servicing procedures) shall be deposited in the Certificate
Account. Any cost incurred by the Master Servicer in maintaining any such
insurance shall not, for the purpose of calculating monthly distributions to
the Certificateholders or remittances to the Trustee for their benefit, be
added to the principal balance of the Mortgage Loan, notwithstanding that the
terms of the Mortgage Loan so permit. Such costs shall be recoverable by the
Master Servicer out of late payments by the related Mortgagor or out of
Liquidation Proceeds or Subsequent Recoveries to the extent permitted by
Section 3.08 hereof. It is understood and agreed that no earthquake or other
additional insurance is to be required of any Mortgagor or maintained on
property acquired in respect of a Mortgage other than pursuant to such
applicable laws and regulations as shall at any time be in force and as shall
require such additional insurance. If the Mortgaged Property is located at the
time of origination of the Mortgage Loan in a federally designated special
flood hazard area and such area is participating in the national flood
insurance program, the Master Servicer shall cause flood insurance to be
maintained with respect to such Mortgage Loan. Such flood insurance shall be
in an amount equal to the lesser of (i) the original principal balance of the
related Mortgage Loan, (ii) the replacement value of the improvements that are
part of such Mortgaged Property, or (iii) the maximum amount of such insurance
available for the related Mortgaged Property under the Flood Disaster
Protection Act of 1973, as amended. If the hazard policy contains a deductible
clause, the Master Servicer will be required to deposit from its own funds
into the Certificate Account the amounts that would have been deposited
therein but for the deductible clause.

          Section 3.11 Enforcement of Due-On-Sale Clauses; Assumption
                    Agreements.

          (a) Except as otherwise provided in this Section 3.11(a), when any
property subject to a Mortgage has been or is about to be conveyed by the
Mortgagor, the Master Servicer shall to the extent that it has knowledge of
such conveyance, enforce any due-on-sale clause contained in any Mortgage Note
or Mortgage, to the extent permitted under applicable law and governmental
regulations, but only to the extent that such enforcement will not adversely
affect or jeopardize coverage under any Required Insurance Policy.
Notwithstanding the foregoing, the Master Servicer is not required to exercise
such rights with respect to a Mortgage Loan if the Person to whom the related
Mortgaged Property has been conveyed or is proposed to be conveyed satisfies
the terms and conditions contained in the Mortgage Note and Mortgage related
thereto and the consent of the mortgagee under such Mortgage Note or Mortgage
is not otherwise so required under such Mortgage Note or Mortgage as a
condition to such transfer. In the event that the Master Servicer is
prohibited by law from enforcing any such due-on-sale clause, or if coverage
under any Required Insurance Policy would be adversely affected, or if
nonenforcement is otherwise permitted hereunder, the Master Servicer is
authorized, subject to Section 3.11(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

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person becomes liable under the Mortgage Note and, unless prohibited by
applicable state law, the Mortgagor remains liable thereon, provided that the
Mortgage Loan shall continue to be covered (if so covered before the Master
Servicer enters such agreement) by the applicable Required Insurance Policies.
The Master Servicer, subject to Section 3.11(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. The
Master Servicer shall notify the Trustee that any such substitution,
modification or assumption agreement has been completed by forwarding to the
Trustee the executed original of such substitution or assumption agreement,
which document shall be added to the related Mortgage File and shall, for all
purposes, be considered a part of such Mortgage File to the same extent as all
other documents and instruments constituting a part thereof.

          (b) Subject to the Master Servicer's duty to enforce any due-on-sale
clause to the extent set forth in Section 3.11(a) hereof, in any case in which
a Mortgaged Property has been conveyed to a Person by a Mortgagor, and such
Person is to enter into an assumption agreement or modification agreement or
supplement to the Mortgage Note or Mortgage that requires the signature of the
Trustee, or if an instrument of release signed by the Trustee is required
releasing the Mortgagor from liability on the Mortgage Loan, the Master
Servicer shall prepare and deliver or cause to be prepared and delivered to
the Trustee for signature and shall direct, in writing, the Trustee to execute
the assumption agreement with the Person to whom the Mortgaged Property is to
be conveyed and such modification agreement or supplement to the Mortgage Note
or Mortgage or other instruments as are reasonable or necessary to carry out
the terms of the Mortgage Note or Mortgage or otherwise to comply with any
applicable laws regarding assumptions or the transfer of the Mortgaged
Property to such Person. In connection with any such assumption, no material
term of the Mortgage Note (including, but not limited to, the Mortgage Rate,
the amount of the Scheduled Payment, the Maximum Mortgage Rate, the Minimum
Mortgage Rate, the Gross Margin, the Initial Periodic Rate Cap, the Subsequent
Periodic Rate Cap, the Adjustment Date and any other term affecting the amount
or timing of payment on the Mortgage Loan) may be changed. In addition, the
substitute Mortgagor and the Mortgaged Property must be acceptable to the
Master Servicer in accordance with its underwriting standards as then in
effect. The Master Servicer shall notify the Trustee that any such
substitution or assumption agreement has been completed by forwarding to the
Trustee the original of such substitution or assumption agreement, which in
the case of the original shall be added to the related Mortgage File and
shall, for all purposes, be considered a part of such Mortgage File to the
same extent as all other documents and instruments constituting a part
thereof. Any fee collected by the Master Servicer for entering into an
assumption or substitution of liability agreement will be retained by the
Master Servicer as additional servicing compensation.

          Section 3.12 Realization Upon Defaulted Mortgage Loans;
                    Determination of Excess Proceeds and Realized Losses;
                    Repurchase of Certain Mortgage Loans.

          (a) The Master Servicer may agree to a modification of any Mortgage
Loan (the "Modified Mortgage Loan") if (i) CHL purchases the Modified Mortgage
Loan from the Trust Fund immediately following the modification as described
below and (ii) the Stated

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Principal Balance of such Mortgage Loan, when taken together with the
aggregate of the Stated Principal Balances of all other Mortgage Loans in the
same Loan Group that have been so modified since the Closing Date at the time
of those modifications, does not exceed an amount equal to 5% of the aggregate
Certificate Principal Balance of the related Certificates. Effective
immediately after the modification, and, in any event, on the same Business
Day on which the modification occurs, all interest of the Trustee in the
Modified Mortgage Loan shall automatically be deemed transferred and assigned
to CHL and all benefits and burdens of ownership thereof, including the right
to accrued interest thereon from the date of modification and the risk of
default thereon, shall pass to CHL. The Master Servicer shall promptly deliver
to the Trustee a certification of a Servicing Officer to the effect that all
requirements of this paragraph have been satisfied with respect to the
Modified Mortgage Loan. For federal income tax purposes, the Trustee shall
account for such purchase as a prepayment in full of the Modified Mortgage
Loan. CHL shall remit the purchase price to the Master Servicer for deposit
into the Certificate Account pursuant to Section 3.05 within one Business Day
after the purchase of the Modified Mortgage Loan. Upon receipt by the Trustee
of written notification of any such deposit signed by a Servicing Officer, the
Trustee shall release to CHL or its designee the related Mortgage File and
shall execute and deliver such instruments of transfer or assignment, in each
case without recourse, as shall be necessary to vest in CHL any Modified
Mortgage Loan previously transferred and assigned pursuant hereto. CHL
covenants and agrees to indemnify the Trust Fund against any liability for any
"prohibited transaction" taxes and any related interest, additions, and
penalties imposed on the Trust Fund established hereunder as a result of any
modification of a Mortgage Loan effected pursuant to this subsection (a), any
holding of a Modified Mortgage Loan by the Trust Fund or any purchase of a
Modified Mortgage Loan by CHL (but such obligation shall not prevent CHL or
any other appropriate Person from in good faith contesting any such tax in
appropriate proceedings and shall not prevent the CHL from withholding payment
of such tax, if permitted by law, pending the outcome of such proceedings).
CHL shall have no right of reimbursement for any amount paid pursuant to the
foregoing indemnification, except to the extent that the amount of any tax,
interest, and penalties, together with interest thereon, is refunded to the
Trust Fund or CHL. If the Master Servicer agrees to a modification of any
Mortgage Loan pursuant to this Section 3.12(a), and if such Mortgage Loan
carries a Prepayment Charge provision, CHL shall deliver to the Trustee the
amount of the Prepayment Charge, if any, that would have been due had such
Mortgage Loan been prepaid at the time of such modification, for deposit into
the Certificate Account (not later than 1:00 p.m. Pacific time on the Master
Servicer Advance Date immediately succeeding the date of such modification)
for distribution in accordance with the terms of this Agreement.

          (b) The Master Servicer shall use reasonable efforts to foreclose
upon or otherwise comparably convert the ownership of properties securing such
of the Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments.
In connection with such foreclosure or other conversion, the Master Servicer
shall follow such practices and procedures as it shall deem necessary or
advisable and as shall be normal and usual in its general mortgage servicing
activities and the requirements of the insurer under any Required Insurance
Policy; provided that the Master Servicer shall not be required to expend its
own funds in connection with any foreclosure or towards the restoration of any
property unless it shall determine (i) that such restoration and/or
foreclosure will increase the proceeds of liquidation of the Mortgage Loan
after reimbursement to itself of such expenses and (ii) that such expenses
will be recoverable to it through Liquidation

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Proceeds (respecting which it shall have priority for purposes of withdrawals
from the Certificate Account pursuant to Section 3.08 hereof). The Master
Servicer shall be responsible for all other costs and expenses incurred by it
in any such proceedings; provided that it shall be entitled to reimbursement
thereof from the proceeds of liquidation of the related Mortgaged Property and
any related Subsequent Recoveries, as contemplated in Section 3.08 hereof. If
the Master Servicer has knowledge that a Mortgaged Property that the Master
Servicer is contemplating acquiring in foreclosure or by deed-in-lieu of
foreclosure is located within a one-mile radius of any site with environmental
or hazardous waste risks known to the Master Servicer, the Master Servicer
will, prior to acquiring the Mortgaged Property, consider such risks and only
take action in accordance with its established environmental review
procedures.

          With respect to any REO Property, the deed or certificate of sale
shall be taken in the name of the 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. The Master Servicer shall ensure that the title to such REO Property
references this Agreement and the Trustee's capacity thereunder. Pursuant to
its efforts to sell such REO Property, the Master Servicer shall either itself
or through an agent selected by the Master Servicer protect and conserve such
REO Property in the same manner and to such extent as is customary in the
locality where such REO Property is located and may, incident to its
conservation and protection of the interests of the Certificateholders, rent
the same, or any part thereof, as the Master Servicer deems to be in the best
interest of the Master Servicer and the Certificateholders for the period
prior to the sale of such REO Property. The Master Servicer shall prepare for
and deliver to the Trustee 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 Trustee 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 Certificate
Account no later than the close of business on each Determination Date. The
Master Servicer shall perform the tax reporting and withholding related to
foreclosures, abandonments and cancellation of indebtedness income as
specified by Sections 1445, 6050J and 6050P of the Code by preparing and
filing such tax and information returns, as may be required.

          In the event that the Trust Fund acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property as
soon as practicable in a manner that maximizes the Liquidation Proceeds, but
in no event later than three years after its acquisition by the Trust Fund or,
at the expense of the Trust Fund, the Master Servicer shall request, 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. In the event the Trustee
shall have been supplied with an Opinion of Counsel (such opinion not to be an
expense of the Trustee) to the effect that the holding by the Trust Fund of
such Mortgaged Property subsequent to such three-year period will not result
in the imposition of taxes on "prohibited transactions" of the Trust Fund as
defined in section 860F of the Code or cause any REMIC formed hereunder to
fail to qualify as a REMIC at any time that any Certificates are outstanding,
and the Trust Fund may continue to hold such Mortgaged Property (subject to
any conditions contained in such Opinion of Counsel) after the expiration of
such three-year period. Notwithstanding any other provision of this Agreement,
no Mortgaged

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Property acquired by the Trust Fund shall be rented (or allowed to continue to
be rented) or otherwise used for the production of income by or on behalf of
the Trust Fund in such a manner or pursuant to any terms that would (i) cause
such Mortgaged Property to fail to qualify as "foreclosure property" within
the meaning of section 860G(a)(8) of the Code or (ii) subject the Trust Fund
to the imposition of any federal, state or local income taxes on the income
earned from such Mortgaged Property under section 860G(c) of the Code or
otherwise, unless the Master Servicer has agreed to indemnify and hold
harmless the Trust Fund with respect to the imposition of any such taxes.

          The decision of the Master Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Master Servicer that
the proceeds of such foreclosure would exceed the costs and expenses of
bringing such a proceeding. The income earned from the management of any
Mortgaged Properties acquired through foreclosure or other judicial
proceeding, net of reimbursement to the Master Servicer for expenses incurred
(including any property or other taxes) in connection with such management and
net of unreimbursed 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 related defaulted Mortgage Loans (with interest accruing as
though such Mortgage Loans were still current) and all such income shall be
deemed, for all purposes in this Agreement, to be payments on account of
principal and interest on the related Mortgage Notes and shall be deposited
into the Certificate Account. To the extent the 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
Mortgage Loan, such excess shall be considered to be a partial Principal
Prepayment for all purposes hereof.

          The Liquidation Proceeds from any liquidation of a Mortgage Loan and
any Subsequent Recoveries, net of any payment to the Master Servicer as
provided above, shall be deposited in the Certificate Account as provided in
Section 3.05 for distribution on the related Distribution Date, except that
any Excess Proceeds shall be retained by the Master Servicer as additional
servicing compensation.

          The proceeds of any Liquidated Mortgage Loan, as well as any
recovery resulting from a partial collection of Liquidation Proceeds or any
income from an REO Property, will be applied in the following order of
priority: first, to reimburse the Master Servicer for any related unreimbursed
Servicing Advances and Servicing Fees, pursuant to Section 3.08(a)(vi) or this
Section 3.12; second, to reimburse the Master Servicer for any unreimbursed
Advances, pursuant to Section 3.08(a)(ii) or this Section 3.12; 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 Due Date occurring in the month in which such amounts are required to
be distributed; and fourth, as a recovery of principal of the Mortgage Loan.

          (c) [Reserved].

          (d) The Master Servicer, in its sole discretion, shall have the
right to elect (by written notice sent to the Trustee) to purchase for its own
account from the Trust Fund any Mortgage Loan that is 150 days or more
delinquent at a price equal to the Purchase Price; provided, however, that the
Master Servicer may only exercise this right on or before the last day

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of the calendar month in which such Mortgage Loan became 150 days delinquent
(such month, the "Eligible Repurchase Month"); provided further, that any such
Mortgage Loan which becomes current but thereafter becomes delinquent may be
purchased by the Master Servicer pursuant to this Section in any ensuing
Eligible Repurchase Month. The Purchase Price for any Mortgage Loan purchased
hereunder shall be deposited in the Certificate Account. Any purchase of a
Mortgage Loan pursuant to this Section 3.12(d) shall be accomplished by
remittance to the Master Servicer for deposit in the Certificate Account of
the Purchase Price. The Trustee, upon receipt of certification from the Master
Servicer of such deposit and a Request for File Release from the Master
Servicer, shall release or cause to be released to the purchaser of such
Mortgage Loan the related Mortgage File and shall execute and deliver such
instruments of transfer or assignment prepared by the purchaser of such
Mortgage Loan, in each case without recourse, as shall be necessary to vest in
the purchaser of such Mortgage Loan any Mortgage Loan released pursuant hereto
and the purchaser of such Mortgage Loan shall succeed to all the Trustee's
right, title and interest in and to such Mortgage Loan and all security and
documents related thereto. Such assignment shall be an assignment outright and
not for security. The purchaser of such Mortgage Loan shall thereupon own such
Mortgage Loan, and all security and documents, free of any further obligation
to the Trustee or the Certificateholders with respect thereto.

          Section 3.13 Trustee to Cooperate; Release of Mortgage Files.

          Upon the payment in full of any Mortgage Loan, or the receipt by the
Master Servicer of a notification that payment in full will be escrowed in a
manner customary for such purposes, the Master Servicer will promptly notify
the Trustee by delivering a Request for File Release. Upon receipt of such
request, the Trustee shall promptly release the related Mortgage File to the
Master Servicer, and the Trustee shall at the Master Servicer's direction
execute and deliver to the Master Servicer the request for reconveyance, deed
of reconveyance or release or satisfaction of mortgage or such instrument
releasing the lien of the Mortgage in each case provided by the Master
Servicer, together with the Mortgage Note with written evidence of
cancellation thereon. The Master Servicer is authorized to cause the removal
from the registration on the MERS(R) System of such Mortgage and to execute
and deliver, on behalf of the Trust Fund and the Certificateholders or any of
them, any and all instruments of satisfaction or cancellation or of partial or
full release. No expenses incurred in connection with any instrument of
satisfaction or deed of reconveyance shall be chargeable to the Certificate
Account, the Distribution Account, the Carryover Reserve Fund or the related
subservicing account. From time to time and as shall be appropriate for the
servicing or foreclosure of any Mortgage Loan, including for such purpose,
collection under any policy of flood insurance any fidelity bond or errors or
omissions policy, or for the purposes of effecting a partial release of any
Mortgaged Property from the lien of the Mortgage or the making of any
corrections to the Mortgage Note or the Mortgage or any of the other documents
included in the Mortgage File, the Trustee shall, upon delivery to the Trustee
of a Request for Document Release or a Request for File Release, as
applicable, release the documents specified in such request or the Mortgage
File, as the case may be, to the Master Servicer. Subject to the further
limitations set forth below, the Master Servicer shall cause the Mortgage File
or documents so released to be returned to the Trustee when the need therefor
by the Master Servicer no longer exists, unless the Mortgage Loan is
liquidated and the proceeds thereof are deposited in the Certificate Account,
in which case the Master Servicer

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shall deliver to the Trustee a Request for File Release for any remaining
documents in the Mortgage File not in the possession of the Master Servicer.

          If the Master Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this
Agreement, the Master Servicer shall deliver or cause to be delivered to the
Trustee, for signature, as appropriate, any court pleadings, requests for
trustee's sale or other documents necessary to effectuate such foreclosure or
any legal action brought to obtain judgment against the Mortgagor on the
Mortgage Note or the Mortgage or to obtain a deficiency judgment or to enforce
any other remedies or rights provided by the Mortgage Note or the Mortgage or
otherwise available at law or in equity. Notwithstanding the foregoing, the
Master Servicer shall cause possession of any Mortgage File or of the
documents therein that shall have been released by the Trustee to be returned
to the Trustee within 21 calendar days after possession thereof shall have
been released by the Trustee unless (i) the Mortgage Loan has been liquidated
and the Liquidation Proceeds relating to the Mortgage Loan have been deposited
in the Certificate Account, and the Master Servicer shall have delivered to
the Trustee a Request for File Release or (ii) the Mortgage File or document
shall have been delivered to an attorney or to a public trustee or other
public official as required by law for purposes of initiating or pursuing
legal action or other proceedings for the foreclosure of the Mortgaged
Property and the Master Servicer shall have delivered to the Trustee an
Officer's Certificate of a Servicing Officer certifying as to the name and
address of the Person to which the Mortgage File or the documents therein were
delivered and the purpose or purposes of such delivery.

          Section 3.14 Documents, Records and Funds in Possession of Master
                    Servicer to be Held for the Trustee.

          Notwithstanding any other provisions of this Agreement, the Master
Servicer shall transmit to the Trustee as required by this Agreement all
documents and instruments in respect of a Mortgage Loan coming into the
possession of the Master Servicer from time to time and shall account fully to
the Trustee for any funds received by the Master Servicer or that otherwise
are collected by the Master Servicer as Liquidation Proceeds, Insurance
Proceeds or Subsequent Recoveries in respect of any Mortgage Loan. All
Mortgage Files and funds collected or held by, or under the control of, the
Master Servicer in respect of any Mortgage Loans, whether from the collection
of principal and interest payments or from Liquidation Proceeds or Subsequent
Recoveries including but not limited to, any funds on deposit in the
Certificate Account, shall be held by the Master Servicer for and on behalf of
the Trust Fund and shall be and remain the sole and exclusive property of the
Trust Fund, subject to the applicable provisions of this Agreement. The Master
Servicer also agrees that it shall not create, incur or subject any Mortgage
File or any funds that are deposited in the Certificate Account, the
Distribution Account, the Carryover Reserve Fund or in any Escrow Account (as
defined in Section 3.06), or any funds that otherwise are or may become due or
payable to the Trustee for the benefit of the Certificateholders, to any
claim, lien, security interest, judgment, levy, writ of attachment or other
encumbrance, or assert by legal action or otherwise any claim or right of set
off against any Mortgage File or any funds collected on, or in connection
with, a Mortgage Loan, except, however, that the Master Servicer shall be
entitled to set off against and deduct from any such funds any amounts that
are properly due and payable to the Master Servicer under this Agreement.

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          Section 3.15 Servicing Compensation.

          As compensation for its activities hereunder, the Master Servicer
shall be entitled to retain or withdraw from the Certificate Account out of
each payment of interest on a Mortgage Loan included in the Trust Fund an
amount equal to interest at the applicable Servicing Fee Rate on the Stated
Principal Balance of the related Mortgage Loan for the period covered by such
interest payment.

          Additional servicing compensation in the form of any Excess
Proceeds, assumption fees, late payment charges, Prepayment Interest Excess,
and all income and gain net of any losses realized from Permitted Investments
shall be retained by the Master Servicer to the extent not required to be
deposited in the Certificate Account pursuant to Section 3.05 or 3.12(b)
hereof. The Master Servicer shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder (including payment of
any premiums for hazard insurance, as required by Section 3.10 hereof and
maintenance of the other forms of insurance coverage required by Section 3.10
hereof) and shall not be entitled to reimbursement therefor except as
specifically provided in Sections 3.08 and 3.12 hereof.

          Section 3.16 Access to Certain Documentation.

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

          Section 3.17 Annual Statement as to Compliance.

          (a) The Master Servicer shall deliver to the Depositor and the
Trustee on or before March 15 of each year, commencing with its 2007 fiscal
year, an Officer's Certificate stating, as to the signer thereof, that (i) a
review of the activities of the Master Servicer during the preceding calendar
year (or applicable portion thereof) and of the performance of the Master
Servicer under this Agreement, has been made under such officer's supervision
and (ii) to the best of such officer's knowledge, based on such review, the
Master Servicer has fulfilled all its obligations under this Agreement, in all
material respects throughout such year (or applicable portion thereof), or, if
there has been a failure to fulfill any such obligation in any material
respect, specifying each such failure known to such officer and the nature and
status thereof and (iii) to the best of such officer's knowledge, each
Subservicer has fulfilled all its obligations under its Subservicing Agreement
in all material respects throughout such year, or, if there has been a failure
to fulfill any such obligation in any material respect specifying each such
failure known to such officer and the nature and status thereof.

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          (b) The Master Servicer shall cause each Subservicer to deliver to
the Depositor and the Trustee on or before March 15 of each year, commencing
with its 2007 fiscal year, an Officer's Certificate stating, as to the signer
thereof, that (i) a review of the activities of such Subservicer during the
preceding calendar year (or applicable portion thereof) and of the performance
of the Subservicer under the applicable Subservicing Agreement or primary
servicing agreement, has been made under such officer's supervision and (ii)
to the best of such officer's knowledge, based on such review, such
Subservicer has fulfilled all its obligations under the applicable
Subservicing Agreement or primary servicing agreement, in all material
respects throughout such year (or applicable portion thereof), or, if there
has been a failure to fulfill any such obligation in any material respect,
specifying each such failure known to such officer and the nature and status
thereof.

          (c) The Trustee shall forward a copy of each such statement to each
Rating Agency. Copies of such statement shall be provided by the Trustee to
any Certificateholder or Certificate Owner upon request at the Master
Servicer's expense, provided such statement is delivered by the Master
Servicer to the Trustee.

          Section 3.18 The Corridor Contract.

          CHL shall cause The Bank of New York to enter into the Corridor
Contract Administration Agreement and shall assign all of its right, title and
interest in and to the interest rate corridor transaction evidenced by the
Corridor Contract to, and shall cause all of its obligations in respect of
such transaction to be assumed by, the Corridor Contract Administrator, on the
terms and conditions set forth in the Corridor Contract Assignment Agreement.
The Trustee's rights to receive certain proceeds of the Corridor Contract as
provided in the Corridor Contract Administration Agreement will be an asset of
the Trust Fund but will not be an asset of any REMIC. The Trustee shall
deposit any amounts received from time to time with respect to the Corridor
Contract into the Carryover Reserve Fund. The Master Servicer shall deposit
any amounts received on behalf of the Trustee from time to time with respect
to the Corridor Contract into the Carryover Reserve Fund.

          No later than two Business Days following each Distribution Date,
the Trustee shall provide the Corridor Contract Administrator with information
regarding the Certificate Principal Balance of the Class AF-1 Certificates
after all distributions on such Distribution Date.

          The Trustee shall direct the Corridor Contract Administrator to
terminate the Corridor Contract upon the occurrence of certain events of
default or termination events to the extent specified thereunder. Upon any
such termination, the Corridor Contract Counterparty will be obligated to pay
the Corridor Contract Administrator an amount in respect of such termination,
and the portion of such amount that is distributable to the Trust Fund
pursuant to the Corridor Contract Administration Agreement and received by the
Trustee or the Master Servicer for the benefit of the Trust Fund, as the case
may be, in respect of such termination shall be deposited and held in the
Carryover Reserve Fund to pay Net Rate Carryover for the Class AF-1
Certificates as provided in Section 4.04(e) on the Distribution Dates
following such termination to and including the Corridor Contract Termination
Date, but shall not be available for distribution to the Class CF Certificates
pursuant to Section 4.07(c) until such Corridor Contract Termination Date. On
the Corridor Contract Termination Date, after all other distributions on

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such date, if any such amount in respect of early termination of the
Corridor Contract remains in the Carryover Reserve Fund, such amounts shall be
distributed by the Trustee to the Class CF Certificates.

          Section 3.19 Prepayment Charges.

          (a) Notwithstanding anything in this Agreement to the contrary, in
the event of a Principal Prepayment in full or in part of a Mortgage Loan, the
Master Servicer may not waive any Prepayment Charge or portion thereof
required by the terms of the related Mortgage Note unless (i) such Mortgage
Loan is in default or the Master Servicer believes that such a default is
imminent, and the Master Servicer determines that such waiver would maximize
recovery of Liquidation Proceeds for such Mortgage Loan, taking into account
the value of such Prepayment Charge, or (ii) (A) the enforceability thereof is
limited (1) by bankruptcy, insolvency, moratorium, receivership, or other
similar law relating to creditors' rights generally or (2) due to acceleration
in connection with a foreclosure or other involuntary payment, or (B) the
enforceability is otherwise limited or prohibited by applicable law. In the
event of a Principal Prepayment in full or in part with respect to any
Mortgage Loan, the Master Servicer shall deliver to the Trustee an Officer's
Certificate substantially in the form of Exhibit T no later than the third
Business Day following the immediately succeeding Determination Date with a
copy to the Class P Certificateholders. If the Master Servicer has waived or
does not collect all or a portion of a Prepayment Charge relating to a
Principal Prepayment in full or in part due to any action or omission of the
Master Servicer, other than as provided above, the Master Servicer shall
deliver to the Trustee, together with the Principal Prepayment in full or in
part, the amount of such Prepayment Charge (or such portion thereof as had
been waived) for deposit into the Certificate Account (not later than 1:00
p.m. Pacific time on the immediately succeeding Master Servicer Advance Date,
in the case of such Prepayment Charge) for distribution in accordance with the
terms of this Agreement.

          (b) Upon discovery by the Master Servicer or a Responsible Officer
of the Trustee of a breach of the foregoing subsection (a), the party
discovering the breach shall give prompt written notice to the other parties.

          (c) CHL represents and warrants to the Depositor and the Trustee, as
of the Closing Date and each Subsequent Transfer Date, that the information in
the Prepayment Charge Schedule (including the attached prepayment charge
summary) is complete and accurate in all material respects at the dates as of
which the information is furnished and each Prepayment Charge is permissible
and enforceable in accordance with its terms under applicable state law,
except as the enforceability thereof is limited due to acceleration in
connection with a foreclosure or other involuntary payment.

          (d) Upon discovery by the Master Servicer or a Responsible Officer
of the Trustee of a breach of the foregoing clause (c) that materially and
adversely affects right of the Holders of the Class P Certificates to any
Prepayment Charge, the party discovering the breach shall give prompt written
notice to the other parties. Within 60 days of the earlier of discovery by the
Master Servicer or receipt of notice by the Master Servicer of breach, the
Master Servicer shall cure the breach in all material respects or shall pay
into the Certificate Account the amount of the Prepayment Charge that would
otherwise be due from the Mortgagor, less any amount

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representing such Prepayment Charge previously collected and paid by the
Master Servicer into the Certificate Account.

          Section 3.20 Swap Contract.

          CHL shall cause The Bank of New York to enter into the Swap Contract
Administration Agreement and shall assign all of its right, title and interest
in and to the interest rate swap transaction evidenced by the Swap Contract
to, and shall cause all of its obligations in respect of such transaction to
be assumed by, the Swap Contract Administrator, on the terms and conditions
set forth in the Swap Contract Assignment Agreement. The Trustee's rights to
receive certain proceeds of the Swap Contract as provided in the Swap Contract
Administration Agreement shall be rights of the Trustee as Swap Trustee
hereunder, shall be an asset of the Swap Trust and shall not be an asset of
the Trust Fund nor of any REMIC. The Swap Trustee shall deposit any amounts
received from time to time from the Swap Contract Administrator with respect
to the Swap Contract into the Swap Account. The Master Servicer shall deposit
any amounts received on behalf of the Swap Trustee from time to time with
respect to the Swap Contract into the Swap Account.

          On the Business Day preceding each Distribution Date, the Swap
Trustee shall notify the Swap Contract Administrator of any amounts
distributable to the Swap Certificates pursuant to Section 4.04(h)(3) through
(8) that will remain unpaid following all distributions to be made on such
Distribution Date pursuant to Section 4.04(a) through (f).

          No later than two Business Days following each Distribution Date,
the Trustee shall provide the Swap Contract Administrator with information
regarding the aggregate Certificate Principal Balance of the Swap Certificates
after all distributions on such Distribution Date.

          Upon the Swap Contract Administrator obtaining actual knowledge of
the rating of the Swap Counterparty falling below the Approved Rating
Thresholds (as defined in the Swap Contract), the Swap Trustee shall direct
the Swap Contract Administrator to negotiate an ISDA Credit Support Annex with
the Swap Counterparty that meets the terms of the Swap Contract. If an ISDA
Credit Support Annex is negotiated, the Swap Trustee shall direct the Swap
Contract Administrator to demand payment of the Delivery Amount (as defined in
the ISDA Credit Support Annex). In addition, if an ISDA Credit Support Annex
is negotiated, the Swap Trustee shall set up an account in accordance with
Section 4.09 to hold cash or other eligible investments pledged under such
ISDA Credit Support Annex. Any cash or other eligible investments pledged
under an ISDA Credit Support Annex shall not be part of the Swap Account or
the Distribution Account unless they are applied in accordance with such ISDA
Credit Support Annex to make a payment due to the Swap Contract Administrator
pursuant to the Swap Contract.

          Upon the Swap Trustee obtaining actual knowledge of an Event of
Default (as defined in the Swap Contract) or Termination Event (as defined in
the Swap Contract) for which the Swap Contract Administrator has the right to
designate an Early Termination Date (as defined in the Swap Contract), the
Swap Trustee shall act at the written direction of the Depositor as to whether
to direct the Swap Contract Administrator to designate an Early

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Termination Date; provided, however, that the Swap Trustee shall provide
written notice to each Rating Agency following the Event of Default or
Termination Event. Upon the termination of the Swap Contract under the
circumstances contemplated by this Section 3.21, the Swap Trustee shall use
its reasonable best efforts to enforce the rights of the Swap Contract
Administrator as may be permitted by the terms of the Swap Contract and
consistent with the terms hereof, and CHL shall assist the Swap Contract
Administrator in procuring a replacement swap contract with terms
approximating those of the original Swap Contract.

          In the event that the swap counterparty in respect of a replacement
swap contract pays any upfront amount to the Swap Contract Administrator in
connection with entering into the replacement swap contract and such upfront
amount is received by the Swap Contract Administrator prior to the
Distribution Date on which any Swap Termination Payment will be payable to the
Swap Counterparty in respect of the original Swap Contract, any portion of the
upfront amount payable by the replacement swap counterparty that is remitted
by the Swap Contract Administrator to the Swap Trustee to be included in
Interest Funds for Loan Group 2 for that Distribution Date shall be included
in Interest Funds for Loan Group 2 for that Distribution Date.

          Any portion of any Net Swap Payment or Swap Termination Payment
payable by the Swap Counterparty and not remitted by the Swap Contract
Administrator to the Swap Trustee with respect to any Distribution Date will
be remitted to CHL and will not be available to make distributions in respect
of any Class of Certificates.

          The Swap Counterparty shall be an express third party beneficiary of
this Agreement for the purpose of enforcing the provisions hereof to the
extent of the Swap Counterparty's rights explicitly specified herein as if a
party hereto.

                                  ARTICLE IV.
               DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

          Section 4.01 Advances; Remittance Reports.

          (a) Within two Business Days after each Determination Date, the
Master Servicer shall deliver to the Trustee by facsimile or electronic mail
(or by such other means as the Master Servicer and the Trustee, as the case
may be, may agree from time to time) a Remittance Report with respect to the
related Distribution Date. The Trustee shall not be responsible to recompute,
recalculate or verify any information provided to it by the Master Servicer.

          (b) Subject to the conditions of this Article IV, the Master
Servicer, as required below, shall make an Advance and deposit such Advance in
the Certificate Account. Each such Advance shall be remitted to the
Certificate Account no later than 1:00 p.m. Pacific time on the Master
Servicer Advance Date in immediately available funds. The Trustee will provide
notice to the Master Servicer by facsimile by the close of business on any
Master Servicer Advance Date in the event that the amount remitted by the
Master Servicer to the Trustee on the Distribution Account Deposit Date is
less than the Advances required to be made by the Master Servicer for such
Distribution Date. The Master Servicer shall be obligated to

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make any such Advance only to the extent that such advance would not be a
Nonrecoverable Advance. If the Master Servicer shall have determined that it
has made a Nonrecoverable Advance or that a proposed Advance or a lesser
portion of such Advance would constitute a Nonrecoverable Advance, the Master
Servicer shall deliver (i) to the Trustee for the benefit of the
Certificateholders funds constituting the remaining portion of such Advance,
if applicable, and (ii) to the Depositor, each Rating Agency and the Trustee
an Officer's Certificate setting forth the basis for such determination.

          (c) In lieu of making all or a portion of such Advance from its own
funds, the Master Servicer may (i) cause to be made an appropriate entry in
its records relating to the Certificate Account that any Amount Held for
Future Distributions has been used by the Master Servicer in discharge of its
obligation to make any such Advance and (ii) transfer such funds from the
Certificate Account to the Distribution Account. Any funds so applied and
transferred shall be replaced by the Master Servicer by deposit in the
Certificate Account no later than the close of business on the Business Day
immediately preceding the Distribution Date on which such funds are required
to be distributed pursuant to this Agreement. The Master Servicer shall be
entitled to be reimbursed from the Certificate Account for all Advances of its
own funds made pursuant to this Section as provided in Section 3.08. The
obligation to make Advances with respect to any Mortgage Loan shall continue
until such Mortgage Loan is paid in full or becomes a Liquidated Mortgage Loan
or until the purchase or repurchase thereof (or substitution therefor) from
the Trustee pursuant to any applicable provision of this Agreement, except as
otherwise provided in this Section 4.01.

          (d) If the Master Servicer determines that it will be unable to
comply with its obligation to make the Advances as and when described in
paragraphs (b) and (c) immediately above, it shall use its best efforts to
give written notice thereof to the Trustee (each such notice a "Trustee
Advance Notice"; and such notice may be given by facsimile), not later than
3:00 p.m., New York time, on the Business Day immediately preceding the
related Master Servicer Advance Date, specifying the amount that it will be
unable to deposit (each such amount an "Advance Deficiency") and certifying
that such Advance Deficiency constitutes an Advance hereunder and is not a
Nonrecoverable Advance. If the Trustee receives a Trustee Advance Notice on or
before 3:30 p.m., (New York time) on a Master Servicer Advance Date, the
Trustee shall, not later than 3:00 p.m., (New York time), on the related
Distribution Date, deposit in the Distribution Account an amount equal to the
Advance Deficiency identified in such Trustee Advance Notice unless it is
prohibited from so doing by applicable law. Notwithstanding the foregoing, the
Trustee shall not be required to make such deposit if the Trustee shall have
received written notification from the Master Servicer that the Master
Servicer has deposited or caused to be deposited in the Certificate Account an
amount equal to such Advance Deficiency. All Advances made by the Trustee
pursuant to this Section 4.01(d) shall accrue interest on behalf of the
Trustee at the Trustee Advance Rate from and including the date such Advances
are made to but excluding the date of repayment, with such interest being an
obligation of the Master Servicer and not the Trust Fund. The Master Servicer
shall reimburse the Trustee for the amount of any Advance made by the Trustee
pursuant to this Section 4.01(d) together with accrued interest, not later
than 6:00 p.m. (New York time) on the Business Day following the related
Distribution Date. In the event that the Master Servicer does not reimburse
the Trustee in accordance with the requirements of the preceding sentence, the
Trustee shall immediately (i) terminate all of the rights and obligations of
the Master Servicer under this Agreement in

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accordance with Section 7.01 and (ii) subject to the limitations set forth in
Section 3.04, assume all of the rights and obligations of the Master Servicer
hereunder.

          (e) The Master Servicer shall, not later than the close of business
on the second Business Day immediately preceding each Distribution Date,
deliver to the Trustee a report (in form and substance reasonably satisfactory
to the Trustee) that indicates (i) the Mortgage Loans with respect to which
the Master Servicer has determined that the related Scheduled Payments should
be advanced and (ii) the amount of the related Scheduled Payments. The Master
Servicer shall deliver to the Trustee on the related Master Servicer Advance
Date an Officer's Certificate of a Servicing Officer indicating the amount of
any proposed Advance determined by the Master Servicer to be a Nonrecoverable
Advance.

          Section 4.02 Reduction of Servicing Compensation in Connection with
                    Prepayment Interest Shortfalls.

          In the event that any Mortgage Loan is the subject of a Prepayment
Interest Shortfall, the Master Servicer shall remit any related Compensating
Interest as part of the related Interest Remittance Amount as provided in this
Agreement. The Master Servicer shall not be entitled to any recovery or
reimbursement for Compensating Interest from the Depositor, the Trustee, any
Seller, the Trust Fund or the Certificateholders.

          Section   4.03 [Reserved].

          Section   4.04 Distributions.

          (a) On each Distribution Date, the Interest Funds for such
Distribution Date for Loan Group 1 shall be distributed from the Distribution
Account in the following order of priority:

                    (i) concurrently, to the Classes of Class AF Certificates,
          the Current Interest and Interest Carry Forward Amount for those
          Classes and such Distribution Date, pro rata, based on their
          respective entitlements,

                    (ii) sequentially, to the Class MF-1, Class MF-2, Class
          MF-3, Class MF-4, Class MF-5, Class MF-6, Class MF-7, Class MF-8 and
          Class BF Certificates, in that order, the Current Interest for each
          such Class, and

                    (iii) any remainder as part of the Fixed Rate Loan Group
          Excess Cashflow.

          (b) On each Distribution Date, the Interest Funds for such
Distribution Date with respect to Loan Group 2 shall be distributed by the
Trustee from the Distribution Account in the following order of priority:

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                    (i) to the Swap Account, the amount of any Net Swap
          Payment and any Swap Termination Payment (other than a Swap
          Termination Payment due to a Swap Counterparty Trigger Event)
          payable to the Swap Counterparty with respect to such Distribution
          Date;

                    (ii) concurrently, to the Classes of Class AV
          Certificates, pro rata, the Current Interest and Interest Carry
          Forward Amount for each such Class for such Distribution Date,

                    (iii) sequentially, to the Class MV-1, Class MV-2, Class
          MV-3, Class MV-4, Class MV-5, Class MV-6, Class MV-7, Class MV-8 and
          Class BV Certificates, in that order, the Current Interest for each
          such Class, and

                    (iv) any remainder as part of the Adjustable Rate Loan
          Group Excess Cashflow.

          (c) On each Distribution Date, the Principal Distribution Amount for
such Distribution Date with respect to Loan Group 1 shall be distributed by
the Trustee from the Distribution Account in the following order of priority
(with the Principal Distribution Amount exclusive of the portion thereof
consisting of the Extra Principal Distribution Amount being applied first and
the Extra Principal Distribution Amount being applied thereafter):

                    (1) with respect to any Distribution Date prior to the
     Fixed Rate Stepdown Date or on which a Fixed Rate Trigger Event is in
     effect, from the Principal Distribution Amount for Loan Group 1,
     sequentially:

                    (A) to the Class AF Certificates, in the amounts and order
          of priority set forth in clause (3) below, until the Certificate
          Principal Balances thereof are reduced to zero,

                    (B) sequentially, to the Class MF-1, Class MF-2, Class
          MF-3, Class MF-4, Class MF-5, Class MF-6, Class MF-7, Class MF-8 and
          Class BF Certificates, in that order, in each case until the
          Certificate Principal Balance thereof is reduced to zero, and

                    (C) any remainder as part of the Fixed Rate Loan Group
          Excess Cashflow.

                    (2) with respect to any Distribution Date on or after the
     Fixed Rate Stepdown Date and so long as a Fixed Rate Trigger Event is not
     in effect, from the Principal Distribution Amount for Loan Group 1,
     sequentially:

                    (A) in an amount up to the Class AF Principal Distribution
          Amount, to the Class AF Certificates in the amounts and order of
          priority set forth in clause (3) below, until the Certificate
          Principal Balances thereof are reduced to zero,

                    (B) sequentially, to the Class MF-1, Class MF-2, Class
          MF-3, Class MF-4, Class MF-5, Class MF-6, Class MF-7, Class MF-8 and
          Class BF

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          Certificates, in that order, the Fixed Rate Subordinate Class
          Principal Distribution Amount for each such Class, in each case
          until the Certificate Principal Balance thereof is reduced to zero,
          and

                    (C) any remainder as part of the Fixed Rate Loan Group
          Excess Cashflow.

                    (3) On each Distribution Date on which any principal
     amounts are to be distributed to the Class AF Certificates, such amounts
     shall be distributed to the Class AF Certificates in the following order
     of priority:

                    (A) the NAS Principal Distribution Amount to the Class
          AF-6 Certificates, until the Certificate Principal Balance thereof
          is reduced to zero,

                    (B) sequentially, to the Class AF-1, Class AF-2, Class
          AF-3, Class AF-4 and Class AF-5 Certificates, in that order, until
          the Certificate Principal Balances thereof are reduced to zero, and

                    (C) to the Class AF-6 Certificates without regard to the
          NAS Principal Distribution Amount, until the Certificate Principal
          Balance thereof is reduced to zero.

          (d) On each Distribution Date, the Principal Distribution Amount for
such Distribution Date with respect to Loan Group 2 shall be distributed by
the Trustee from the Distribution Account in the following order of priority
(with the Principal Distribution Amount exclusive of the portion thereof
consisting of the Extra Principal Distribution Amount being applied first and
the Extra Principal Distribution Amount being applied thereafter):

                    (1) with respect to any Distribution Date prior to the
     Adjustable Rate Stepdown Date or on which an Adjustable Rate Trigger
     Event is in effect, sequentially:

                    (A) to the Classes of Class AV Certificates, in the
          amounts and order of priority set forth in clause (3) below, until
          the Certificate Principal Balances thereof are reduced to zero;

                    (B) sequentially, to the Class MV-1, Class MV-2, Class
          MV-3, Class MV-4, Class MV-5, Class MV-6, Class MV-7, Class MV-8 and
          Class BV Certificates, in that order, in each case until the
          Certificate Principal Balance thereof is reduced to zero, and

                    (C) any remainder as part of the Adjustable Rate Loan
          Group Excess Cashflow.

                    (2) with respect to any Distribution Date on or after the
          Adjustable Rate Stepdown Date and so long as an Adjustable Rate
          Trigger Event is not in effect, from the Principal Distribution
          Amount for Loan Group 2, sequentially:

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                    (A) in an amount up to the Class AV Principal Distribution
          Amount, to the Class AV Certificates in the amounts and order of
          priority set forth in clause (3) below, until the Certificate
          Principal Balances thereof are reduced to zero,

                    (B) sequentially, to the Class MV-1, Class MV-2, Class
          MV-3, Class MV-4, Class MV-5, Class MV-6, Class MV-7, Class MV-8 and
          Class BV Certificates, in that order, the Adjustable Rate
          Subordinate Class Principal Distribution Amount for each such Class,
          in each case until the Certificate Principal Balance thereof is
          reduced to zero, and

                    (C) any remainder as part of the Adjustable Rate Loan
          Group Excess Cashflow.

                    (3) On each Distribution Date on which any principal
          amounts are to be distributed to the Class AV Certificates, such
          amounts shall be distributed sequentially, to the Class AV-1, Class
          AV-2 and Class AV-3 Certificates, in that order, in each case until
          the Certificate Principal Balance thereof is reduced to zero.

          (e) With respect to any Distribution Date, any Fixed Rate Loan Group
Excess Cashflow and shall be distributed to the Classes of Certificates in the
following order of priority, to the extent of the remaining Fixed Rate Loan
Group Excess Cashflow:

                    (1) to the Holders of the Class or Classes of Class AF
          Certificates and Fixed Rate Subordinate Certificates then entitled
          to receive distributions in respect of principal, in an amount equal
          to the Extra Principal Distribution Amount for Loan Group 1, payable
          to such Holders as part of the Principal Distribution Amount for
          Loan Group 1 pursuant to Section 4.04(c) above;

                    (2) concurrently, to the Holders of each Class of Class AF
          Certificates, pro rata based on the Unpaid Realized Loss Amounts for
          each such Class, in each case in an amount equal to the Unpaid
          Realized Loss Amount for each such Class;

                    (3) sequentially, to the Holders of the Class MF-1, Class
          MF-2, Class MF-3, Class MF-4, Class MF-5, Class MF-6, Class MF-7,
          Class MF-8 and Class BF Certificates, in that order, in each case
          first in an amount equal to any Interest Carry Forward Amount for
          such Class and then in an amount equal to the Unpaid Realized Loss
          Amount for such Class;

                    (4) to the Carryover Reserve Fund and from the Carryover
          Reserve Fund to the Holders of each Class of Class AF Certificates
          and Fixed Rate Subordinate Certificates (in the case of the Class
          AF-1 Certificates after application of amounts received under the
          Corridor Contract to cover Net Rate Carryover), pro rata based on
          the Certificate Principal Balances thereof, to the extent needed to
          pay any unpaid Net Rate Carryover for each such Class; and then any
          Fixed Rate Loan Group Excess Cashflow remaining after such
          allocation to pay Net Rate Carryover based on the Certificate
          Principal Balances of the Certificates shall be distributed to each
          Class of Class AF Certificates and Fixed Rate Subordinate
          Certificates with respect to which there remains

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          any unpaid Net Rate Carryover, pro rata, based on the amount of such
          unpaid Net Rate Carryover;

                    (5) to the Holders of the Class or Classes of Class AV
          Certificates and Adjustable Rate Subordinate Certificates then
          entitled to receive distributions in respect of principal, payable
          to such Holders as part of the Principal Distribution Amount as
          described under Section 4.04(d) above, in an amount equal to the
          Extra Principal Distribution Amount for Loan Group 2 not covered by
          the Adjustable Rate Loan Group Excess Cashflow or Net Swap Payments;

                    (6) concurrently, to the Holders of each Class of Class AV
          Certificates, pro rata based on the Unpaid Realized Loss Amounts for
          such Classes remaining undistributed after application of the
          Adjustable Rate Loan Group Excess Cashflow and Net Swap Payments, in
          each case in an amount equal to the Unpaid Realized Loss Amount for
          each such Class remaining undistributed after application of the
          Adjustable Rate Loan Group Excess Cashflow and Net Swap Payments;

                    (7) sequentially, to the Holders of the Class MV-1, Class
          MV-2, Class MV-3, Class MV-4, Class MV-5, Class MV-6, Class MV-7,
          Class MV-8 and Class BV Certificates, in that order, in each case in
          an amount equal to the Unpaid Realized Loss Amount for such Class
          remaining undistributed after application of the Adjustable Rate
          Loan Group Excess Cashflow and Net Swap Payments;

                    (8) to the Carryover Reserve Fund, in an amount equal to
          the Required Carryover Reserve Fund Deposit (after giving effect to
          other deposits and withdrawals therefrom on such Distribution Date
          without regard to any amounts allocated to the Trust Fund in respect
          of the Corridor Contract not required to cover Net Rate Carryover on
          the related Class(es) of Certificates on such Distribution Date);

                    (9) to the Class CF Certificateholders, the Class CF
          Distributable Amount for such Distribution Date; and

                    (10) to the Class A-R Certificates, any remaining amount.

          (f) With respect to any Distribution Date, any Adjustable Rate Loan
Group Excess Cashflow shall be distributed to the Classes of Certificates in
the following order of priority to the extent of the remaining Adjustable Rate
Loan Group Excess Cashflow:

                    (1) to the Holders of the Class or Classes of Class AV
          Certificates and Adjustable Rate Subordinate Certificates then
          entitled to receive distributions in respect of principal, in an
          aggregate amount equal to the Extra Principal Distribution Amount
          for Loan Group 2, payable to such Holders of each such Class as part
          of the Principal Distribution Amount for Loan Group 2 pursuant to
          Section 4.04(d) above;

                    (2) concurrently, to the Holders of each Class of Class AV
          Certificates, pro rata based on the Unpaid Realized Loss Amounts for
          each such Class, in each case in an amount equal to the Unpaid
          Realized Loss Amount for each such Class;

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                    (3) sequentially, to the Holders of the Class MV-1, Class
          MV-2, Class MV-3, Class MV-4, Class MV-5, Class MV-6, Class MV-7,
          Class MV-8 and Class BV Certificates, in that order, in each case
          first in an amount equal to any Interest Carry Forward Amount for
          such Class and then in an amount equal to the Unpaid Realized Loss
          Amount for such Class;

                    (4) to the Carryover Reserve Fund and from the Carryover
          Reserve Fund to the Holders of each Class of Class AV Certificates
          and Adjustable Rate Subordinate Certificates, pro rata based on the
          Certificate Principal Balances thereof, to the extent needed to pay
          any Net Rate Carryover for each such Class; provided that any
          Adjustable Rate Loan Group Excess Cashflow remaining after such
          allocation to pay Net Rate Carryover based on the Certificate
          Principal Balances of those Certificates shall be distributed to
          each Class of Class AV Certificates and Adjustable Rate Subordinate
          Certificates with respect to which there remains any unpaid Net Rate
          Carryover (after the distribution based on Certificate Principal
          Balances), pro rata, based on the amount of such unpaid Net Rate
          Carryover;

                    (5) if the Fixed Rate Overcollateralization Target Amount
          has at any previous time been met, to the Holders of the Class or
          Classes of Class AF Certificates and Fixed Rate Subordinate
          Certificates then entitled to receive distributions in respect of
          principal, payable to such Holders as part of the Principal
          Distribution Amount pursuant to Section 4.04(c) above, in an amount
          equal to the Extra Principal Distribution Amount for Loan Group 1
          not covered by the Fixed Rate Loan Group Excess Cashflow;

                    (6) concurrently, to the Holders of the Class AF
          Certificates, pro rata based on the Unpaid Realized Loss Amounts for
          such Classes remaining undistributed after application of the Fixed
          Rate Loan Group Excess Cashflow in an amount equal to the Unpaid
          Realized Loss Amount for such Class remaining undistributed after
          application of the Fixed Rate Loan Group Excess Cashflow;

                    (7) sequentially, to the Holders of each Class of Class
          MF-1, Class MF-2, Class MF-3, Class MF-4, Class MF-5, Class MF-6,
          Class MF-7, Class MF-8 and Class BF Certificates, in that order, in
          each case in an amount equal to the Unpaid Realized Loss Amount for
          each such Class remaining undistributed after application of the
          Fixed Rate Loan Group Excess Cashflow;

                    (8) to the Carryover Reserve Fund, in an amount equal to
          the Required Carryover Reserve Fund Deposit (after giving effect to
          other deposits and withdrawals therefrom on such Distribution Date
          without regard to any amounts allocated to the Trust Fund in respect
          of the Corridor Contract not required to cover Net Rate Carryover on
          the related Class(es) of Certificates on such Distribution Date);

                    (9) to the Swap Account, in an amount equal to any Swap
          Termination Payment due to the Swap Counterparty as a result of a
          Swap Counterparty Trigger Event;

                    (10) to the Class CV Certificateholders, the Class CV
          Distributable Amount for such Distribution Date; and

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          (11) to the Class A-R Certificates, any remaining amount.

          (g) On each Distribution Date on or prior to the Corridor Contract
Termination Date, amounts received by the Trustee in respect of the Corridor
Contract for such Distribution Date shall be withdrawn from the Carryover
Reserve Fund and distributed to the Class AF-1 Certificates to the extent
needed to pay any Net Rate Carryover with respect to such Class. Any amounts
remaining in the Carryover Reserve Fund in respect of the Corridor Contract
shall be distributed to the Holders of the Class CF Certificates as provided
in Section 4.07(c).

          (h) On each Distribution Date on or prior to the Swap Contract
Termination Date, following the deposits to the Swap Account pursuant to
4.04(b)(i) and Section 4.09 and the distributions described under Sections
4.04(e)(1) through (4) and 4.04(f)(1) through (4), the Swap Trustee shall
distribute amounts on deposit in the Swap Account in the following amounts and
order of priority:

                    (1) to the Swap Contract Administrator for payment to the
          Swap Counterparty, any Net Swap Payment payable to the Swap
          Counterparty with respect to such Distribution Date;

                    (2) to the Swap Contract Administrator for payment to the
          Swap Counterparty, any Swap Termination Payment (other than a Swap
          Termination Payment due to a Swap Counterparty Trigger Event)
          payable to the Swap Counterparty with respect to such Distribution
          Date;

                    (3) concurrently to the Holders of each Class of Class AV
          Certificates, any remaining Current Interest and Interest Carry
          Forward Amount, pro rata based on their respective entitlements;

                    (4) sequentially, to the Holders of the Class MV-1, Class
          MV-2, Class MV-3, Class MV-4, Class MV-5, Class MV-6, Class MV-7,
          Class MV-8 and Class BV Certificates, in that order, in each case in
          an amount equal to any remaining Current Interest and Interest Carry
          Forward Amount for each such Class;

                    (5) to the Holders of the Class or Classes of Class AV
          Certificates and Adjustable Rate Subordinate Certificates then
          entitled to receive distributions in respect of principal, in an
          aggregate amount equal to the Adjustable Rate Overcollateralization
          Deficiency Amount remaining unpaid following the distributions
          described under Section 4.04(f), payable to such Holders of each
          such Class in the same manner in which the Extra Principal
          Distribution Amount in respect of Loan Group 2 would be distributed
          to such Classes as described under Section 4.04(f);

                    (6) to the Holders of each Class of Class AV Certificates
          and Adjustable Rate Subordinate Certificates, to the extent needed
          to pay any remaining Net Rate Carryover for each such Class, pro
          rata, based on the amount of such remaining Net Rate Carryover;

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                    (7) concurrently, to the Holders of each Class of Class AV
          Certificates, pro rata, based on the remaining Unpaid Realized Loss
          Amounts for such Classes, in each case in an amount equal to the
          remaining Unpaid Realized Loss Amount for each such Class; and

                    (8) sequentially, to the Holders of the Class MV-1, Class
          MV-2, Class MV-3, Class MV-4, Class MV-5, Class MV-6, Class MV-7,
          Class MV-8 and Class BV Certificates, in that order, in each case in
          an amount equal to the remaining Unpaid Realized Loss Amount for
          each such Class.

          On each Distribution Date on or prior to the Swap Contract
Termination Date, following the distributions described under Sections
4.04(e)(5) through (10) and 4.04(f)(5) through (8) and following the deposit
to the Swap Account pursuant to Section 4.04(f)(9), the Swap Trustee shall
distribute amounts on deposit in the Swap Account to the Swap Contract
Administrator for payment to the Swap Counterparty, any Swap Termination
Payment due to a Swap Counterparty Trigger Event payable to the Swap
Counterparty with respect to such Distribution Date.

          (i) To the extent that a Class of Interest Bearing Certificates
receives interest in excess of the applicable Net Rate Cap, such interest is
paid pursuant to Section 4.04(e) and/or 4.04(f), such interest shall be deemed
to have been paid to the Carryover Reserve Fund and then paid by the Carryover
Reserve Fund to those Certificateholders, and such interest is paid pursuant
to Section 4.04(h), such interest shall be deemed to have been paid to the
Swap Account and then paid by the Swap Account to those Certificateholders.
For purposes of the Code, amounts deemed deposited in the Carryover Reserve
Fund shall be deemed to have first been distributed, in the case of any such
amounts relating to the Corridor Contract, to the Class CF Certificates.

          (j) On each Distribution Date, all Prepayment Charges (including
amounts deposited in connection with the full or partial waiver of such
Prepayment Charges pursuant to Section 3.19) with respect to Loan Group 1
shall be allocated to the Class PF Certificates. On each Distribution Date,
all Prepayment Charges (including amounts deposited in connection with the
full or partial waiver of such Prepayment Charges pursuant to Section 3.19)
with respect to Loan Group 2 shall be allocated to the Class PV Certificates.
On the Class PF Principal Distribution Date, the Trustee shall make the
$100.00 distribution to the Class PF Certificates as specified in Section
3.08. On the Class PV Principal Distribution Date, the Trustee shall make the
$100.00 distribution to the Class PV Certificates as specified in Section
3.08.

          (k) On each Distribution Date, the Trustee shall allocate any
Applied Realized Loss Amount for Loan Group 1, first, to reduce the
Certificate Principal Balances of the Class BF, Class MF-8, Class MF-7, Class
MF-6, Class MF-5, Class MF-4, Class MF-3, Class MF-2 and Class MF-1
Certificates, sequentially, in that order, in each case until the Certificate
Principal Balance thereof is reduced to zero and second, to reduce the
Certificate Principal Balances of the Class AF Certificates, on a pro rata
basis according to their respective Certificate Principal Balances, until the
Certificate Principal Balances of such Classes have been reduced to zero.

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          On each Distribution Date, the Trustee shall allocate any Applied
Realized Loss Amount for Loan Group 2, first, to reduce the Certificate
Principal Balances of the Class BV, Class MV-8, Class MV-7, Class MV-6, Class
MV-5, Class MV-4, Class MV-3, Class MV-2 and Class MV-1 Certificates,
sequentially, in that order, in each case until the Certificate Principal
Balance thereof is reduced to zero and second, to reduce the Certificate
Principal Balances of the Class AV Certificates, on a pro rata basis according
to their respective Certificate Principal Balances, until the Certificate
Principal Balances of such Classes have been reduced to zero.

          (l) On each Distribution Date, the Trustee shall allocate the amount
of the Subsequent Recoveries for Loan Group 1, if any, first to increase the
Certificate Principal Balances of the Class AF Certificates to which Applied
Realized Loss Amounts have been previously allocated, on a pro rata basis
according to their respective Certificate Principal Balances and in each case
by not more than the amount of the Unpaid Realized Loss Amount of such Class,
and then to increase the Certificate Principal Balance of the Fixed Rate
Subordinate Certificates to which Applied Realized Loss Amounts have been
previously allocated, sequentially, to the Class MF-1, Class MF-2, Class MF-3,
Class MF-4, Class MF-5, Class MF-6, Class MF-7, Class MF-8 and Class BF
Certificates, in that order, in each case by not more than the amount of the
Unpaid Realized Loss Amount of such Class.

          On each Distribution Date, the Trustee shall allocate the amount of
the Subsequent Recoveries for Loan Group 2, if any, first to increase the
Certificate Principal Balances of the Class AV Certificates to which Applied
Realized Loss Amounts have been previously allocated, on a pro rata basis
according to their respective Certificate Principal Balances and in each case
by not more than the amount of the Unpaid Realized Loss Amount of such Class,
and then to increase the Certificate Principal Balance of the Adjustable Rate
Subordinate Certificates to which Applied Realized Loss Amounts have been
previously allocated, sequentially, to the Class MV-1, Class MV-2, Class MV-3,
Class MV-4, Class MV-5, Class MV-6, Class MV-7, Class MV-8 and Class BV
Certificates, in that order, in each case by not more than the amount of the
Unpaid Realized Loss Amount of such Class.

          Holders of Certificates to which any Subsequent Recoveries have been
allocated shall 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.

          (m) Subject to Section 9.02 hereof respecting the final
distribution, on each Distribution Date the Trustee shall make distributions
to each Certificateholder 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 Trustee at least five Business Days prior to the
related Record Date and (ii) such Holder shall hold Regular Certificates with
an aggregate initial Certificate Principal Balance of not less than $1,000,000
or evidencing a Percentage Interest aggregating 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 9.02 hereof
respecting the final distribution, distributions with respect to Certificates
registered in the name of a Depository shall be made to such Depository in
immediately available funds.

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          On or before 5:00 p.m. Pacific time on the fifth Business Day
following each Determination Date (but in no event later than 5:00 p.m.
Pacific time on the third Business Day before the related Distribution Date),
the Master Servicer shall deliver a report to the Trustee (in the form of a
computer readable magnetic tape or by such other means as the Master Servicer
and the Trustee may agree from time to time) containing such data and
information as agreed to by the Master Servicer and the Trustee such as to
permit the Trustee to prepare the Monthly Statement and make the required
distributions for the related Distribution Date (the "Remittance Report"). The
Trustee shall not be responsible to recompute, recalculate or verify
information provided to it by the Master Servicer and shall be permitted to
conclusively rely on any information provided to it by the Master Servicer.

          Section 4.05 Monthly Statements to Certificateholders.

          (a) Concurrently with each distribution on a Distribution Date, the
Trustee will forward by mail to each Rating Agency and make available to
Certificateholders on the Trustee's website
(http://www.bnyinvestorreporting.com) a statement generally setting forth the
information contained in Exhibit W.

          (b) The Trustee's responsibility for disbursing the above
information to the Certificateholders is limited to the availability,
timeliness and accuracy of the information derived from the Master Servicer.
The Trustee shall send a copy of each statement provided pursuant to this
Section 4.05 to each Rating Agency and the NIM Insurer. The Trustee may make
the above information available to Certificateholders via the Trustee's
website at http://www.bnyinvestorreporting.com.

          (c) Within a reasonable period of time after the end of each
calendar year, the Trustee shall cause to be furnished to each Person who at
any time during the calendar year was a Certificateholder, a statement
containing the information regarding (i) the amount of distributions to that
Certificateholder allocable to principal, separately identifying (A) the
aggregate amount of any Principal Prepayments included therein and (B) the
aggregate of all scheduled payments of principal included therein, (ii) the
amount of distributions to that Certificateholder allocable to interest and
(iii) the related amount of the Servicing Fees paid to or retained by the
Master Servicer, in each case aggregated for such calendar year or applicable
portion thereof during which such Person was a Certificateholder. Such
obligation of the Trustee shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Trustee
pursuant to any requirements of the Code as from time to time in effect.

          (d) Upon filing with the Internal Revenue Service, the Trustee shall
furnish to the Holders of the Class A-R Certificates the Form 1066 and each
Form 1066Q and shall respond promptly to written requests made not more
frequently than quarterly by any Holder of Class A-R Certificates with respect
to the following matters:

                    (1) The original projected principal and interest cash
          flows on the Closing Date on each related Class of regular and
          residual interests created hereunder and on the Mortgage Loans,
          based on the Prepayment Assumption;

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                    (2) The projected remaining principal and interest cash
          flows as of the end of any calendar quarter with respect to each
          related Class of regular and residual interests created hereunder
          and the Mortgage Loans, based on the Prepayment Assumption;

                    (3) The applicable Prepayment Assumption and any interest
          rate assumptions used in determining the projected principal and
          interest cash flows described above;

                    (4) 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
          related 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;

                    (5) 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
          the related REMIC with respect to such regular interests or bad debt
          deductions claimed with respect to the Mortgage Loans;

                    (6) The amount and timing of any non-interest expenses of
          the related REMIC; and

                    (7) Any taxes (including penalties and interest) imposed
          on the related 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 (1), (2), (3) and (4) above
shall be provided by the Depositor pursuant to Section 8.11.

                    Section 4.06 [Reserved].

                    Section 4.07 Carryover Reserve Fund.

          (a) On the Closing Date, the Trustee shall establish and maintain in
its name, in trust for the benefit of the Holders of the Certificates, the
Carryover Reserve Fund and shall deposit $1,000 therein. The Carryover Reserve
Fund 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 held by the Trustee pursuant to
this Agreement.

          (b) On each Distribution Date, the Trustee shall deposit all amounts
received in respect of the Corridor Contract in the Carryover Reserve Fund.
The Trustee shall make withdrawals from the Carryover Reserve Fund to make
distributions in respect of Net Rate Carryover as to the extent required by
Section 4.04.

          (c) Any amounts received in respect of the Corridor Contract with
respect to a Distribution Date and remaining after the distributions required
pursuant to Section 4.04(g) shall

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be distributed to the Class CF Certificates; provided, however, that if the
Corridor Contract is subject to early termination, early termination payments
received in respect of the Corridor Contract shall be deposited by the Trustee
in the Carryover Reserve Fund and withdrawn from the Carryover Reserve Fund to
pay any Net Rate Carryover for the applicable Classes of Certificates as
provided in Section 4.04(g) on the Distribution Dates following such
termination to and including the Corridor Contract Termination Date, but such
early termination payments shall not be available for distribution to the
Class CF Certificates on future Distribution Dates until the Corridor Contract
Termination Date.

          (d) (1) Funds in the Carryover Reserve Fund in respect of amounts
received under the Corridor Contract may be invested in Permitted Investments
at the written direction of the Majority Holder of the Class CF Certificates,
which Permitted Investments shall mature not later than the Business Day
immediately preceding the first Distribution Date that follows the date of
such investment (except that if such Permitted Investment is an obligation of
the institution that maintains the Carryover Reserve Fund, then such Permitted
Investment shall mature not later than such Distribution Date) and shall not
be sold or disposed of prior to maturity. All such Permitted Investments shall
be made in the name of the Trustee, for the benefit of the Certificateholders.
In the absence of such written direction, all funds in the Carryover Reserve
Fund in respect of amounts received under the Corridor Contract shall be
invested by the Trustee in The Bank of New York cash reserves. Any net
investment earnings on such amounts shall be payable pro rata to the Holders
of the Class CF Certificates in accordance with their Percentage Interests.
Any losses incurred in the Carryover Reserve Fund in respect of any such
investments shall be charged against amounts on deposit in the Carryover
Reserve Fund (or such investments) immediately as realized.

                    (2) The Trustee shall not be liable for the amount of any
          loss incurred in respect of any investment or lack of investment of
          funds held in the Carryover Reserve Fund and made in accordance with
          this Section 4.07. The Carryover Reserve Fund shall not constitute
          an asset of any REMIC created hereunder. The Class CF and Class CV
          Certificates shall evidence ownership of the Carryover Reserve Fund
          for federal tax purposes.

          Section 4.08 [Reserved].

          Section 4.09 Swap Trust and Swap Account.

          On the Closing Date, there is hereby established a separate trust
(the "Swap Trust"), the assets of which shall consist of the Trustee's rights
and obligations under the Swap Contract Administration Agreement. The Swap
Trust shall be maintained by the Swap Trustee, who initially, shall be the
Trustee. The Swap Trustee shall hold the assets of the Swap Trust in trust for
the benefit of the Holders of the Swap Certificates and the Swap Counterparty.
No later than the Closing Date, the Swap Trustee shall establish and maintain
a separate, segregated trust account to be held in the Swap Trust, titled,
"Swap Account, The Bank of New York, as Swap Trustee, in trust for the Swap
Counterparty and the registered holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-1." Such account 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 held pursuant to this

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Agreement. Amounts therein shall be held uninvested. Funds on deposit in
the Swap Account shall be distributed in the amounts and in the order of
priority described under Section 4.04(h). For federal income tax purposes, the
Swap Trust, including the Swap Account, shall be owned by the Class CV
Certificates.

          On each Distribution Date, the Trustee shall make a deposit to the
Swap Account pursuant to Section 4.04(b)(i), and to the extent that the amount
of such deposit is insufficient to pay any Net Swap Payment and/or Swap
Termination Payment (other than a Swap Termination Payment due to a Swap
Counterparty Trigger Event) due to the Swap Counterparty with respect to such
Distribution Date, the Trustee shall withdraw, out of amounts on deposit in
the Distribution Account in respect of the Principal Remittance Amount for
Loan Group 2, pro rata on the basis of those respective Principal Remittance
Amounts, such additional amount as is necessary to cover the remaining portion
of any such Net Swap Payment and/or Swap Termination Payment (other than a
Swap Termination Payment due to a Swap Counterparty Trigger Event) due to the
Swap Counterparty with respect to such Distribution Date.

                                  ARTICLE V.
                               THE CERTIFICATES

          Section 5.01 The Certificates.

          The Certificates shall be substantially in the forms attached hereto
as Exhibits A-1 through A-27, Exhibit B, Exhibit C, Exhibit D and Exhibit E.
The Certificates shall be issuable in registered form, in the minimum dollar
denominations, integral dollar multiples in excess thereof and aggregate
dollar denominations as set forth in the following table:

                                      Integral Multiples    Original Certificate
    Class       Minimum Denomination  in Excess of Minimum  Principal Balance
--------------- --------------------  --------------------  --------------------
    AF-1        $     20,000          $      1,000             $147,232,000
    AF-2        $     20,000          $      1,000             $ 22,857,000
    AF-3        $     20,000          $      1,000             $ 90,995,000
    AF-4        $     20,000          $      1,000             $ 21,633,000
    AF-5        $     20,000          $      1,000             $ 38,617,000
    AF-6        $     20,000          $      1,000             $ 44,200,000
    MF-1        $     20,000          $      1,000             $ 13,260,000
    MF-2        $     20,000          $      1,000             $ 12,155,000
    MF-3        $     20,000          $      1,000             $  7,293,000
    MF-4        $     20,000          $      1,000             $  6,409,000
    MF-5        $     20,000          $      1,000             $  6,188,000
    MF-6        $     20,000          $      1,000             $  5,525,000
    MF-7        $    100,000          $      1,000             $  5,304,000
    MF-8        $    100,000          $      1,000             $  4,641,000
     BF         $    100,000          $      1,000             $  4,420,000
    AV-1        $     20,000          $      1,000             $139,560,000
    AV-2        $     20,000          $      1,000             $115,712,000
    AV-3        $     20,000          $      1,000             $ 25,042,000
    MV-1        $     20,000          $      1,000             $ 14,320,000

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<PAGE>

                                      Integral Multiples    Original Certificate
    Class       Minimum Denomination  in Excess of Minimum  Principal Balance
--------------- --------------------  --------------------  --------------------
    MV-2        $     20,000          $      1,000             $ 13,067,000
    MV-3        $     20,000          $      1,000             $  7,518,000
    MV-4        $     20,000          $      1,000             $  6,802,000
    MV-5        $     20,000          $      1,000             $  6,802,000
    MV-6        $     20,000          $      1,000             $  5,907,000
    MV-7        $     20,000          $      1,000             $  5,549,000
    MV-8        $    100,000          $      1,000             $  5,012,000
     BV         $    100,000          $      1,000             $  3,759,000
    A-R         $      99.95(1)              N/A               $        100
     CF                N/A                   N/A                      N/A
     CV                N/A                   N/A                      N/A
     PF                N/A                   N/A               $        100
     PV                N/A                   N/A               $        100
(1)       The Tax Matters Person Certificate may be issued in a denomination
          of $0.05.

          The Certificates shall be executed by manual or facsimile signature
on behalf of the Trustee by an authorized officer. Certificates bearing the
manual or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall
bind the Trustee, notwithstanding that such individuals or any of them have
ceased to be so authorized prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such authentication
and delivery. 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 set
forth as attached hereto executed by the Trustee by manual signature, and such
certificate of authentication upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the
date of their authentication. On the Closing Date, the Trustee shall
authenticate the Certificates to be issued at the written direction of the
Depositor, or any affiliate thereof.

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

          Section 5.02 Certificate Register; Registration of Transfer and
                    Exchange of Certificates.

          (a) The Trustee shall maintain a Certificate Register for the Trust
Fund in which, subject to the provisions of subsections (b) and (c) below and
to such reasonable regulations as it may prescribe, the Trustee shall provide
for the registration of Certificates and of Transfers and exchanges of
Certificates as herein provided. Upon surrender for registration of Transfer
of any Certificate, the Trustee shall 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

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<PAGE>

Percentage Interest upon surrender of the Certificates to be exchanged at the
office or agency of the Trustee. Whenever any Certificates are so surrendered
for exchange, the Trustee shall execute, authenticate, and deliver the
Certificates 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 Trustee duly executed by the Holder thereof or his
attorney duly authorized in writing.

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

          All Certificates surrendered for registration of Transfer or
exchange shall be canceled and subsequently destroyed by the Trustee in
accordance with the Trustee's customary procedures.

          (b) No Transfer of a Private Certificate shall be made unless such
Transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under 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 state securities laws, in order to assure
compliance with the Securities Act and such state securities laws, the
Certificateholder desiring to effect such Transfer and such
Certificateholder's prospective transferee shall (except in connection with
any transfer of a Private Certificate to an affiliate of the Depositor (either
directly or through a nominee) in connection with the initial issuance of the
Certificates) each certify to the Trustee in writing the facts surrounding the
Transfer in substantially the forms set forth in Exhibit J-2 and, in the case
of a Class A-R Certificate, Exhibit J-1 (the "Transferor Certificate") and (i)
deliver a letter in substantially the form of either Exhibit K (in the case of
the Class PF, Class PV, Class CF and Class CV Certificates only) (the
"Investment Letter") or Exhibit L (in the case of any Private Certificate)
(the "Rule 144A Letter") or (ii) there shall be delivered to the Trustee at
the expense of the Certificateholder desiring to effect such transfer an
Opinion of Counsel that such Transfer may be made pursuant to an exemption
from the Securities Act; provided, however, that in the case of the delivery
of an Investment Letter in connection with the transfer of any Class C or
Class P Certificate to a transferee that is formed with the purpose of issuing
notes backed by such Class C or Class P Certificate, as the case may be,
clause (b) and (c) of the form of Investment Letter shall not be applicable
and shall be deleted by such transferee. The Depositor shall provide to any
Holder of a Private Certificate and any prospective transferee designated by
any such Holder, information regarding the related Certificates and the
Mortgage Loans and such other information as shall be necessary to satisfy the
condition to eligibility set forth in Rule 144A(d)(4) for transfer of any such
Certificate without registration thereof under the Securities Act pursuant to
the registration exemption provided by Rule 144A. The Trustee and the Master
Servicer shall cooperate with the Depositor in providing the Rule 144A
information referenced in the preceding sentence, including providing to the
Depositor such information regarding the Certificates, the Mortgage Loans and
other matters regarding the Trust Fund as the Depositor shall reasonably
request to meet its obligation under the preceding sentence. Each Holder of a
Private Certificate desiring to effect such Transfer shall, and does hereby
agree to, indemnify the Trustee, the Depositor, the Trust Fund, each Seller,
the Master Servicer and the NIM Insurer

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<PAGE>

against any liability that may result if the Transfer is not so exempt or is
not made in accordance with such federal and state laws.

          No Transfer of an ERISA-Restricted Certificate (other than a
transfer of an ERISA-Restricted Certificate to an affiliate of the Depositor
(either directly or through a nominee) in connection with the initial issuance
of the Certificates) shall be made unless the Trustee shall have received
either (i) a representation from the transferee of such Certificate acceptable
to and in form and substance satisfactory to the Trustee (in the event such
Certificate is a Private Certificate, such requirement is satisfied only by
the Trustee's receipt of a representation letter from the transferee
substantially in the form of Exhibit K or Exhibit L, or in the event such
Certificate is a Residual Certificate, such requirement is satisfied only by
the Trustee's receipt of a representation letter from the transferee
substantially in the form of Exhibit I), to the effect that (x) such
transferee is not a Plan, or (y) in the case of an ERISA-Restricted
Certificate that has been the subject of an ERISA-Qualifying Underwriting, a
representation that the transferee is an insurance company which is purchasing
such Certificate with funds contained in an "insurance company general
account" (as such term is defined in section V(e) of Prohibited Transaction
Class Exemption 95-60 ("PTCE 95-60")) and that the purchase and holding of
such Certificate satisfy the requirements for exemptive relief under Sections
I and III of PTCE 95-60 or (ii) in the case of any ERISA-Restricted
Certificate presented for registration in the name of an employee benefit plan
or arrangement subject to ERISA, or a plan or arrangement subject to Section
4975 of the Code (or comparable provisions of any subsequent enactments), or a
trustee of any such plan or arrangement or any other person acting on behalf
of any such plan or arrangement, an Opinion of Counsel satisfactory to the
Trustee, addressed to the Trustee and the Master Servicer, to the effect that
the purchase or holding of such ERISA-Restricted Certificate will not result
in a non-exempt prohibited transaction under ERISA or the Code and will not
subject the Trustee or the Master Servicer to any obligation in addition to
those expressly undertaken in this Agreement, which Opinion of Counsel shall
not be an expense of the Trustee, the Master Servicer, or the Trust Fund. For
purposes of the preceding sentence, one of such representations, as
appropriate, shall be deemed to have been made to the Trustee by the
transferee's acceptance of an ERISA-Restricted Certificate (or the acceptance
by a Certificate Owner of the beneficial interest in any such Class of
ERISA-Restricted Certificates) unless the Trustee shall have received from the
transferee an Opinion of Counsel as described in clause (ii) or a
representation letter acceptable in form and substance to 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

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Section 406 of ERISA or a plan subject to Section 4975 of the Code without the
delivery to the Trustee of an Opinion of Counsel satisfactory to the Trustee
meeting the requirements of clause (i) of the first sentence of this paragraph
as described above shall be void and of no effect. The Trustee shall be under
no liability to any Person for any registration of transfer of any
ERISA-Restricted Certificate that is in fact not permitted by this Section
5.02(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 so long as the Trustee, with respect to the
transfer of such Classes of Certificates, required delivery of such
certificates and other documentation or evidence as are expressly required by
the terms of this Agreement and examined such certificates and other
documentation or evidence to determine compliance as to form with the express
requirements hereof. The Trustee shall be entitled, but not obligated, to
recover from any Holder of any ERISA-Restricted Certificate that was in fact
an employee benefit plan or arrangement subject to Section 406 of ERISA or a
plan or arrangement subject to Section 4975 of the Code or a Person acting on
behalf of any such plan or arrangement at the time it became a Holder or, at
such subsequent time as it became such a plan or arrangement or Person acting
on behalf of such a plan or arrangement, all payments made on such
ERISA-Restricted Certificate at and after either such time. Any such payments
so recovered by the Trustee shall be paid and delivered by the Trustee to the
last preceding Holder of such Certificate that is not such a plan or
arrangement or Person acting on behalf of a plan or arrangement.

          No transfer of a Swap Certificate (other than a transfer of a Swap
Certificate to an affiliate of the Depositor (either directly or through a
nominee) in connection with the initial issuance of the Certificates) shall be
made unless the Trustee shall have received either (i) a representation from
the transferee of such Swap Certificate acceptable to and in form and
substance satisfactory to the Trustee to the effect that such transferee is
not a Plan, or (ii) a representation that the purchase and holding of the Swap
Certificate satisfies the requirements for exemptive relief under PTCE 84-14,
PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or a similar exemption. In the
event that such representation letter is not delivered, one of the foregoing
representations, as appropriate, shall be deemed to have been made by the
transferee's (including an initial acquiror's) acceptance of the Swap
Certificate. In the event that such representation is violated, such transfer
or acquisition shall be void and of no effect.

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

                    (1) Each Person holding or acquiring any Ownership
          Interest in a Class A-R Certificate shall be a Permitted Transferee
          and shall promptly notify the Trustee of any change or impending
          change in its status as a Permitted Transferee.

                    (2) Except in connection with (i) the registration of the
          Tax Matters Person Certificate in the name of the Trustee or (ii)
          any registration in the name of, or transfer of a Class A-R
          Certificate to, an affiliate of the Depositor (either directly or
          through a nominee) in connection with the initial issuance of the
          Certificates, no Ownership Interest in a Class A-R Certificate may
          be registered or transferred, and the Trustee shall not register the
          Transfer of any Class A-R Certificate, unless the Trustee shall have
          been furnished with an affidavit (a "Transfer Affidavit") of the
          initial owner or the proposed transferee in the form attached hereto
          as Exhibit I.

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

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<PAGE>

                    (4) Any attempted or purported Transfer of any Ownership
          Interest in a Class A-R Certificate in violation of the provisions
          of this Section 5.02(c) shall be absolutely null and void and shall
          vest no rights in the purported Transferee. If any purported
          transferee shall become a Holder of a Class A-R Certificate in
          violation of the provisions of this Section 5.02(c), then the last
          preceding Permitted Transferee shall be restored to all rights as
          Holder thereof retroactive to the date of registration of Transfer
          of such Class A-R Certificate. The Trustee shall be under no
          liability to any Person for any registration of Transfer of a Class
          A-R Certificate that is in fact not permitted by Section 5.02(b) and
          this Section 5.02(c) or for making any payments due on such
          Certificate to the Holder thereof or taking any other action with
          respect to such Holder under the provisions of this Agreement so
          long as the Transfer was registered after receipt of the related
          Transfer Affidavit and Transferor Certificate. The Trustee shall be
          entitled but not obligated to recover from any Holder of a Class A-R
          Certificate that was in fact not a Permitted Transferee at the time
          it became a Holder or, at such subsequent time as it became other
          than a Permitted Transferee, all payments made on such Class A-R
          Certificate at and after either such time. Any such payments so
          recovered by the Trustee shall be paid and delivered by the Trustee
          to the last preceding Permitted Transferee of such Certificate.

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

          The restrictions on Transfers of a Class A-R Certificate set forth
in this Section 5.02(c) shall cease to apply (and the applicable portions of
the legend on a Class A-R Certificate may be deleted) with respect to
Transfers occurring after delivery to the Trustee of an Opinion of Counsel,
which Opinion of Counsel shall not be an expense of the Trustee, any Seller or
the Master Servicer, to the effect that the elimination of such restrictions
will not cause any REMIC formed hereunder to fail to qualify as a REMIC at any
time that the Certificates are outstanding or result in the imposition of any
tax on the Trust Fund, a Certificateholder or another Person. Each Person
holding or acquiring any Ownership Interest in a Class A-R Certificate, by
acceptance of its Ownership Interest, shall be deemed to consent to any
amendment of this Agreement that, based on an Opinion of Counsel furnished to
the Trustee, is reasonably necessary (a) to ensure that the record ownership
of, or any beneficial interest in, a Class A-R Certificate is not transferred,
directly or indirectly, to a Person that is not a Permitted Transferee and (b)
to provide for a means to compel the Transfer of a Class A-R Certificate that
is held by a Person that is not a Permitted Transferee to a Holder that is a
Permitted Transferee.

          (d) The preparation and delivery of all affidavits, certifications
and opinions referred to above in this Section 5.02 shall not be an expense of
the Trust Fund, the Trustee, the Depositor, any Seller or the Master Servicer.

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          Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

          If (a) any mutilated Certificate is surrendered to the Trustee, or
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Certificate and of the ownership thereof and (b) there is
delivered to the Master Servicer and the Trustee such security or indemnity as
may be required by them to save each of them harmless, then, in the absence of
notice to the Trustee that such Certificate has been acquired by a bona fide
purchaser, the Trustee shall execute, 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 5.03, the Trustee
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.
Any replacement Certificate issued pursuant to this Section 5.03 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
Trustee under the terms of this Section 5.03 shall be canceled and destroyed
by the Trustee in accordance with its standard procedures without liability on
its part.

          Section 5.04 Persons Deemed Owners.

          The Master Servicer, the Trustee, the NIM Insurer and any agent of
the Master Servicer, the Trustee or the NIM Insurer 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 Master Servicer, the Trustee or
the NIM Insurer or any agent of the Master Servicer, the Trustee or the NIM
Insurer shall be affected by any notice to the contrary.

          Section 5.05 Access to List of Certificateholders' Names and
                    Addresses.

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

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          Section 5.06 Book-Entry Certificates.

          The Book-Entry Certificates, upon original issuance, shall be issued
in the form of one typewritten Certificate (or more than one, if required by
the Depository) for each Class of such 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 5.08. Unless and until definitive,
fully registered Certificates ("Definitive Certificates") have been issued to
the Certificate Owners of such Certificates pursuant to Section 5.08:

          (a) the provisions of this Section shall be in full force and
effect;

          (b) the Depositor, the Sellers, the Master Servicer and the Trustee
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 Trustee 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 5.08, 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 Trustee 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 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.

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          Section 5.07 Notices to Depository.

          Whenever any notice or other communication is required to be given
to Certificateholders of the 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 Trustee shall give all
such notices and communications to the Depository.

          Section 5.08 Definitive Certificates.

          If, after Book-Entry Certificates have been issued with respect to
any Certificates, (a) the Depositor advises the Trustee 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 Trustee or the
Depositor is unable to locate a qualified successor or (b) after the
occurrence and continuation of an Event of Default, Certificate Owners of such
Book-Entry Certificates having not less than 51% of the Voting Rights
evidenced by any Class of Book-Entry Certificates advise the Trustee 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 Trustee 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 Certificate Owners of such Class requesting the same. The
Depositor shall provide the Trustee with an adequate inventory of Certificates
to facilitate the issuance and transfer of Definitive Certificates. Upon
surrender to the Trustee of any such Certificates by the Depository,
accompanied by registration instructions from the Depository for registration,
the Trustee shall authenticate and deliver such Definitive Certificates.
Neither the Depositor nor the Trustee 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 Trustee, to the extent applicable with respect to such
Definitive Certificates and the Trustee shall recognize the Holders of such
Definitive Certificates as Certificateholders hereunder.

          Section 5.09 Maintenance of Office or Agency.

          The Trustee will maintain or cause to be maintained at its expense
an office or offices or agency or agencies in New York City where Certificates
may be surrendered for registration of transfer or exchange. The Trustee
initially designates its offices at 101 Barclay Street, New York, New York
10286, Attention: Corporate Trust MBS Administration, as offices for such
purposes. The Trustee will give prompt written notice to the
Certificateholders of any change in such location of any such office or
agency.

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                                  ARTICLE VI.
              THE DEPOSITOR, THE MASTER SERVICER AND THE SELLERS

          Section 6.01 Respective Liabilities of the Depositor, the Master
Servicer and the Sellers.

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

          Section 6.02 Merger or Consolidation of the Depositor, the Master
                    Servicer or the Sellers.

          The Depositor will keep in full effect its existence, rights and
franchises as a corporation under the laws of the United States or under the
laws of one of the states thereof and will each obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, or any of the Mortgage Loans and to perform
its duties under this Agreement. The Master Servicer will keep in effect its
existence, rights and franchises as a limited partnership under the laws of
the United States or under the laws of one of the states thereof and will
obtain and preserve its qualification or registration to do business as a
foreign partnership in each jurisdiction in which such qualification or
registration 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 Depositor, the Master Servicer or any
Seller may be merged or consolidated, or any Person resulting from any merger
or consolidation to which the Depositor, the Master Servicer or any Seller
shall be a party, or any person succeeding to the business of the Depositor,
the Master Servicer or any Seller, shall be the successor of the Depositor,
the Master Servicer or such Seller, as the case may be, hereunder, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding; provided that
the successor or surviving Person to the Master Servicer shall be qualified to
service mortgage loans on behalf of Fannie Mae and Freddie Mac.

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

          Section 6.03 Limitation on Liability of the Depositor, the Sellers,
                    the Master Servicer, the NIM Insurer and Others.

          None of the Depositor, the Sellers, the NIM Insurer or the Master
Servicer or any of the directors, officers, employees or agents of the
Depositor, the Sellers, the NIM Insurer or the Master Servicer shall be under
any liability to the Trustee (except as provided in Section

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8.05), the Trust Fund or the Certificateholders for any action taken or for
refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided that this provision shall not
protect the Depositor, the Sellers, the Master Servicer or any such Person
against any breach of representations or warranties made by it herein or
protect the Depositor, the Sellers, the Master Servicer or any such Person
from any liability that would otherwise be imposed by reasons of willful
misfeasance, bad faith or gross negligence in the performance of duties or by
reason of reckless disregard of obligations and duties hereunder. The
Depositor, the Sellers, the NIM Insurer, the Master Servicer and any director,
officer, employee or agent of the Depositor, the Sellers, the NIM Insurer or
the Master Servicer may rely in good faith on any document of any kind prima
facie properly executed and submitted by any Person respecting any matters
arising hereunder. The Depositor, the Sellers, the NIM Insurer, the Master
Servicer and any director, officer, employee or agent of the Depositor, the
Sellers, the NIM Insurer or the Master Servicer shall be indemnified by the
Trust Fund and held harmless against any loss, liability or expense incurred
in connection with any audit, controversy or judicial proceeding relating to a
governmental taxing authority or any legal action relating to this Agreement
or the Certificates, other than any loss, liability or expense related to any
specific Mortgage Loan or Mortgage Loans (except as any such loss, liability
or expense shall be otherwise reimbursable pursuant to this Agreement) and any
loss, liability or expense incurred by reason of willful misfeasance, bad
faith or gross negligence in the performance of duties hereunder or by reason
of reckless disregard of obligations and duties hereunder. None of the
Depositor, the Sellers, the NIM Insurer or the Master Servicer shall be under
any obligation to appear in, prosecute or defend any legal action that is not
incidental to its respective duties hereunder and that in its opinion may
involve it in any expense or liability; provided that any of the Depositor,
the Sellers, the NIM Insurer or the Master Servicer may, in its discretion
undertake any such action that it may deem necessary or desirable in respect
of this Agreement and the rights and duties of the parties hereto and
interests of the Trustee and the Certificateholders hereunder. In such event,
the legal expenses and costs of such action and any liability resulting
therefrom shall be, expenses, costs and liabilities of the Trust Fund, and the
Depositor, the Sellers, the NIM Insurer and the Master Servicer shall be
entitled to be reimbursed therefor out of the Certificate Account as provided
by Section 3.08 hereof.

          Section 6.04 Limitation on Resignation of Master Servicer.

          The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except (i) upon determination that its duties hereunder
are no longer permissible under applicable law or (ii) upon appointment of a
successor servicer that is reasonably acceptable to the Trustee and the NIM
Insurer and the written confirmation from each Rating Agency (which
confirmation shall be furnished to the Depositor, the Trustee and the NIM
Insurer) that such resignation will not cause such Rating Agency to reduce the
then-current rating of the Certificates. Any such determination pursuant to
clause (i) of the preceding sentence permitting the resignation of the Master
Servicer shall be evidenced by an Opinion of Counsel to such effect delivered
to the Trustee. No resignation of the Master Servicer shall become effective
until the Trustee 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 and the
Depositor shall have received the information described in the following
sentence. As a condition to the effectiveness of any such resignation, at
least 15 calendar days prior to the effective date of such resignation, the
Master Servicer shall

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provide (x) written notice to the Depositor of any successor pursuant to this
Section and (y) in writing and in form and substance reasonably satisfactory
to the Depositor, all information reasonably requested by the Depositor in
order to comply with its reporting obligation under Item 6.02 of Form 8-K with
respect to the resignation of the Master Servicer.

          Section 6.05 Errors and Omissions Insurance; Fidelity Bonds.

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

          The Master Servicer shall provide the Trustee and the NIM Insurer
(upon such party's reasonable request) with copies of any such insurance
policies and fidelity bond. The Master Servicer shall be deemed to have
complied with this provision if an Affiliate of the Master Servicer has such
errors and omissions and fidelity bond coverage and, by the terms of such
insurance policy or fidelity bond, the coverage afforded thereunder extends to
the Master Servicer.

                                 ARTICLE VII.
                    DEFAULT; TERMINATION OF MASTER SERVICER

          Section 7.01 Events of Default.

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

                    (1) any failure by the Master Servicer to deposit in the
          Certificate Account or the Distribution Account or remit to the
          Trustee any payment (excluding a payment required to be made under
          Section 4.01 hereof) required to be made under the terms of this
          Agreement, which failure shall continue unremedied for five calendar
          days and, with respect to a payment required to be made under
          Section 4.01(b) or (c) hereof, for one Business Day, after the date
          on which written notice of such failure shall have been given to the
          Master Servicer by the Trustee, the NIM Insurer or the Depositor, or
          to the Trustee, the NIM Insurer and the Master Servicer by the
          Holders of Certificates evidencing not less than 25% of the Voting
          Rights; or

                    (2) any failure by the Master Servicer to observe or
          perform in any material respect any other of the covenants or
          agreements on the part of the Master Servicer contained in this
          Agreement (except with respect to a failure related to a Limited
          Exchange Act Reporting Obligation) or any representation or warranty
          shall prove to be untrue, which failure or breach shall continue
          unremedied for a period of 60 days after the date on which written
          notice of such failure shall have been given to the Master Servicer
          by the Trustee, the NIM Insurer or the Depositor, or to the Trustee
          by the

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          Holders of Certificates evidencing not less than 25% of the
          Voting Rights; provided, that the sixty-day cure period shall not
          apply to the initial delivery of the Mortgage File for Delay
          Delivery Mortgage Loans or the failure to repurchase or substitute
          in lieu thereof; or

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

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

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

                    (6) the Master Servicer shall fail to reimburse in full
          the Trustee not later than 6:00 p.m. (New York time) on the Business
          Day following the related Distribution Date for any Advance made by
          the Trustee pursuant to Section 4.01(d) together with accrued and
          unpaid interest.

          If an Event of Default shall occur, then, and in each and every such
case, so long as such Event of Default shall not have been remedied, the
Trustee shall, but only at the direction of either the NIM Insurer or the
Holders of Certificates evidencing not less than 25% of the Voting Rights, by
notice in writing to the Master Servicer (with a copy to each Rating Agency
and the Depositor), terminate all of the rights and obligations of the Master
Servicer under this Agreement and in and to the Mortgage Loans and the
proceeds thereof, other than its rights as a Certificateholder hereunder. In
addition, if during the period that the Depositor is required to file Exchange
Act Reports with respect to the Trust Fund, the Master Servicer shall fail to
observe or perform any of the obligations that constitute a Limited Exchange
Act Reporting Obligation or the obligations set forth in Section 3.17(a) or
Section 11.07(a)(1) and (2), and such failure continues for the lesser of 10
calendar days or such period in which the applicable Exchange Act Report can
be filed timely (without taking into account any extensions), so long as such
failure shall not have been remedied, the Trustee shall, but only at the
direction of the Depositor, terminate all of the rights and obligations of the
Master Servicer under this Agreement and in and to the Mortgage Loans and the
proceeds thereof, other than its rights as a Certificateholder hereunder. The
Depositor shall not be entitled to terminate the rights and obligations of the
Master Servicer if a failure of the Master Servicer to identify a
Subcontractor "participating in the servicing function" within the meaning of
Item 1122 of Regulation AB was attributable

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solely to the role or functions of such Subcontractor with respect to mortgage
loans other than the Mortgage Loans.

          On or after the receipt by the Master Servicer of such written
notice, all authority and power of the Master Servicer hereunder, whether with
respect to the Mortgage Loans or otherwise, shall pass to and be vested in the
Trustee. The Trustee shall thereupon make any Advance described in Section
4.01 hereof subject to Section 3.04 hereof. The Trustee is hereby authorized
and empowered to execute and deliver, on behalf of the Master Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments,
and to do or accomplish all other acts or things necessary or appropriate to
effect the purposes of such notice of termination, whether to complete the
transfer and endorsement or assignment of the Mortgage Loans and related
documents, or otherwise. Unless expressly provided in such written notice, no
such termination shall affect any obligation of the Master Servicer to pay
amounts owed pursuant to Article VIII. The Master Servicer agrees to cooperate
with the Trustee in effecting the termination of the Master Servicer's
responsibilities and rights hereunder, including, without limitation, the
transfer to the Trustee of all cash amounts which shall at the time be
credited to the Certificate Account, or thereafter be received with respect to
the Mortgage Loans. The Trustee shall promptly notify the Rating Agencies and
the Depositor of the occurrence of an Event of Default.

          Notwithstanding any termination of the activities of a Master
Servicer hereunder, such Master Servicer shall be entitled to receive, out of
any late collection of a Scheduled Payment on a Mortgage Loan that was due
prior to the notice terminating such Master Servicer's rights and obligations
as Master Servicer hereunder and received after such notice, that portion
thereof to which such Master Servicer would have been entitled pursuant to
Sections 3.08(a)(i) through (viii), and any other amounts payable to such
Master Servicer hereunder the entitlement to which arose prior to the
termination of its activities hereunder.

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

          Section 7.02 Trustee to Act; Appointment of Successor.

          On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.01 hereof, the Trustee shall, to the extent
provided in Section 3.04, be the successor to the Master Servicer in its
capacity as servicer under this Agreement and the transactions set forth or
provided for herein and shall be subject to all the responsibilities, duties
and liabilities relating thereto placed on the Master Servicer by the terms
and provisions hereof and applicable law including the obligation to make
advances pursuant to Section 4.01. As compensation therefor, the Trustee shall
be entitled to all fees, costs and expenses relating to the Mortgage Loans
that the Master Servicer would have been entitled to if the Master Servicer
had continued to act hereunder. Notwithstanding the foregoing, if the Trustee
has become the successor to the Master Servicer in accordance with Section
7.01 hereof, the Trustee may, if it shall be unwilling to so act, or shall, if
it is prohibited by applicable law from making Advances

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pursuant to Section 4.01 hereof or if it is otherwise unable to so act, (i)
appoint any established mortgage loan servicing institution reasonably
acceptable to the NIM Insurer (as evidenced by the prior written consent of
the NIM Insurer), or (ii) if it is unable for 60 days to appoint a successor
servicer reasonably acceptable to the NIM Insurer, 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 and the NIM Insurer guaranteed notes
(without giving any effect to any policy or guaranty provided by the NIM
Insurer) by each Rating Agency as the successor to the Master Servicer
hereunder in the assumption of all or any part of the responsibilities, duties
or liabilities of the Master Servicer hereunder. Any successor Master Servicer
shall 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 that is willing to service the Mortgage Loans and executes and delivers 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 Master Servicer
(other than liabilities and indemnities of the Master Servicer under Section
6.03 hereof incurred prior to termination of the Master Servicer under Section
7.01), with like effect as if originally named as a party to this Agreement;
and provided further that each Rating Agency acknowledges that its rating of
the Certificates in effect immediately prior to such assignment and delegation
will not be qualified or reduced as a result of such assignment and
delegation. No appointment of a successor to the Master Servicer hereunder
shall be effective until (i) the Trustee shall have consented thereto, (ii)
written notice of such proposed appointment shall have been provided by the
Trustee to each Certificateholder and (iii) at least 15 calendar days prior to
the effective date of such appointment, (x) the Trustee shall provide written
notice to the Depositor of such successor pursuant to this Section 7.02 and
(y) such successor Master Servicer shall provide to the Depositor in writing
and in form and substance reasonably satisfactory to the Depositor, all
information reasonably requested by the Depositor in order to comply with its
reporting obligation under Item 6.02 of Form 8-K with respect to a replacement
master servicer. The Trustee shall not resign as servicer until a successor
servicer has been appointed and has accepted such appointment. Pending
appointment of a successor to the Master Servicer hereunder, the Trustee,
unless the Trustee is prohibited by law from so acting, shall, subject to
Section 3.04 hereof, act in such capacity as herein above provided. In
connection with such appointment and assumption, the Trustee may make such
arrangements for the compensation of such successor out of payments on
Mortgage Loans as it and such successor shall agree; provided that no such
compensation shall be in excess of that permitted the Master Servicer
hereunder. The Trustee and such successor shall take such action, consistent
with this Agreement, as shall be necessary to effectuate any such succession.
Neither the Trustee nor any other successor 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.

          Any successor to the Master Servicer as servicer shall give notice
to the NIM Insurer and the Mortgagors of such change of servicer and shall,
during the term of its service as servicer maintain in force the policy or
policies that the Master Servicer is required to maintain pursuant to Section
6.05.

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

          Section 7.03 Notification to Certificateholders.

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

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

                                 ARTICLE VIII.
                            CONCERNING THE TRUSTEE

          Section 8.01 Duties of Trustee.

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

          The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments
furnished to the Trustee that are specifically required to be furnished
pursuant to any provision of this Agreement shall examine them to determine
whether they conform to the requirements of this Agreement, to the extent
provided in this Agreement. If any such instrument is found not to conform to
the requirements of this Agreement in a material manner, the Trustee shall
take action as it deems appropriate to have the instrument corrected.

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          No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own grossly negligent action, its own gross
negligent failure to act or its own misconduct, its grossly negligent failure
to perform its obligations in compliance with this Agreement, or any liability
that would be imposed by reason of its willful misfeasance or bad faith;
provided that:

                    (1) prior to the occurrence of an Event of Default, and
          after the curing of all such Events of Default that may have
          occurred, the duties and obligations of the Trustee shall be
          determined solely by the express provisions of this Agreement, the
          Trustee shall not be liable, individually or as Trustee, except for
          the performance of such duties and obligations as are specifically
          set forth in this Agreement, no implied covenants or obligations
          shall be read into this Agreement against the Trustee and the
          Trustee may conclusively rely, as to the truth of the statements and
          the correctness of the opinions expressed therein, upon any
          certificates or opinions furnished to the Trustee and conforming to
          the requirements of this Agreement that it reasonably believed in
          good faith to be genuine and to have been duly executed by the
          proper authorities respecting any matters arising hereunder;

                    (2) the Trustee shall not be liable, individually or as
          Trustee, for an error of judgment made in good faith by a
          Responsible Officer or Responsible Officers of the Trustee, unless
          the Trustee was grossly negligent or acted in bad faith or with
          willful misfeasance;

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

                    (4) without in any way limiting the provisions of this
          Section 8.01 or Section 8.02 hereof, the Trustee shall be entitled
          to rely conclusively on the information delivered to it by the
          Master Servicer in a Trustee Advance Notice in determining whether
          or not it is required to make an Advance under Section 4.01(d),
          shall have no responsibility to ascertain or confirm any information
          contained in any Trustee Advance Notice, and shall have no
          obligation to make any Advance under Section 4.01(d) in the absence
          of a Trustee Advance Notice or actual knowledge by a Responsible
          Officer that (A) a required Advance was not made and (B) such
          required Advance was not a Nonrecoverable Advance.

          Section 8.02 Certain Matters Affecting the Trustee.

          (a) Except as otherwise provided in Section 8.01:

                    (1) the Trustee may request and rely upon and shall be
          protected in acting or refraining from acting upon any resolution,
          Officer's Certificate, certificate of auditors or any other
          certificate, statement, instrument, opinion, report, notice,
          request,

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          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;

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

                    (3) the Trustee shall not be liable, individually or as
          Trustee, 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;

                    (4) prior to the occurrence of an Event of Default
          hereunder and after the curing of all Events of Default that may
          have occurred, the Trustee shall not be bound to make any
          investigation into the facts or matters stated in any resolution,
          certificate, statement, instrument, opinion, report, notice,
          request, consent, order, approval, bond or other paper or document,
          unless requested in writing so to do by the NIM Insurer or the
          Holders of each Class of Certificates evidencing not less than 25%
          of the Voting Rights of such Class; provided, however, that if the
          payment within a reasonable time to the Trustee of the costs,
          expenses or liabilities likely to be incurred by it in the making of
          such investigation is, in the opinion of the Trustee not reasonably
          assured to the Trustee by the NIM Insurer or such
          Certificateholders, the Trustee may require reasonable indemnity
          against such expense, or liability from the NIM Insurer or such
          Certificateholders as a condition to taking any such action;

                    (5) the Trustee may execute any of the trusts or powers
          hereunder or perform any duties hereunder either directly or by or
          through agents, accountants or attorneys;

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

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

                    (8) the Trustee shall not be deemed to have knowledge of
          an Event of Default until a Responsible Officer of the Trustee shall
          have received written notice thereof; and

                    (9) the Trustee shall be under no obligation to exercise
          any of the trusts or powers vested in it by this Agreement or to
          make any investigation of matters arising hereunder or to institute,
          conduct or defend any litigation hereunder or in relation hereto at
          the request, order or direction of the NIM Insurer or any of the
          Certificateholders, pursuant to the provisions of this Agreement,
          unless the NIM Insurer or such Certificateholders, as applicable,
          shall have offered to the Trustee reasonable

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          security or indemnity against the costs, expenses and liabilities
          that may be incurred therein or thereby.

          (b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by the Trustee
without the possession of any of the Certificates, or the production thereof
at the trial or other proceeding relating thereto, and any such suit, action
or proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of the Certificates, subject to the provisions of
this Agreement.

          The Depositor hereby directs the Trustee to execute, deliver and
perform its obligations under the Swap Contract Administration Agreement (in
its capacity as Swap Trustee). The Sellers, the Depositor, the Master Servicer
and the Holders of the Swap Certificates by their acceptance of such
Certificates acknowledge and agree that the Trustee shall execute, deliver and
perform its obligations under the Swap Contract Administration Agreement and
shall do so solely in its capacity as Swap Trustee, as the case may be, and
not in its individual capacity. Every provision of this Agreement relating to
the conduct or affecting the liability of or affording protection to the
Trustee shall apply to the Trustee's execution of the Swap Contract
Administration Agreement in its capacity as Swap Trustee, and the performance
of its duties and satisfaction of its obligations thereunder.

          Section 8.03 Trustee Not Liable for Mortgage Loans.

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

          Section 8.04 Trustee May Own Certificates.

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

          Section 8.05 Master Servicer to Pay Trustee's Fees and Expenses.

          The Master Servicer covenants and agrees to pay or reimburse the
Trustee, upon its request, for all reasonable expenses, disbursements and
advances incurred or made by the Trustee on behalf of the Trust Fund in
accordance with any of the provisions of this Agreement (including, without
limitation: (A) the reasonable compensation and the expenses and disbursements
of its counsel, but only for representation of the Trustee acting in its
capacity as Trustee hereunder and (B) to the extent that the Trustee must
engage persons not regularly in its employ to perform acts or services on
behalf of the Trust Fund, which acts or services are not in the ordinary
course of the duties of a trustee, paying agent or certificate registrar, in
the absence of a breach or default by any party hereto, the reasonable
compensation, expenses and

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disbursements of such persons, except any such expense, disbursement or
advance as may arise from its negligence, bad faith or willful misconduct).
The Trustee and any director, officer, employee or agent of the Trustee shall
be indemnified by the Master Servicer and held harmless against any loss,
liability or expense (i) incurred in connection with any legal action relating
to this Agreement or the Certificates, or in connection with the performance
of any of the Trustee's duties hereunder, other than any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or negligence in
the performance of any of the Trustee's duties hereunder or by reason of
reckless disregard of the Trustee's obligations and duties hereunder or (ii)
resulting from any error in any tax or information return prepared by the
Master Servicer. Such indemnity shall survive the termination of this
Agreement or the resignation or removal of the Trustee hereunder.

          Section 8.06 Eligibility Requirements for Trustee.

          The Trustee hereunder shall, at all times, be a corporation or
association organized and doing business under the laws of a state or the
United States of America, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state authority and with a
credit rating that would not cause any of the Rating Agencies to reduce their
respective ratings of any Class of Certificates below the ratings issued on
the Closing Date (or having provided such security from time to time as is
sufficient to avoid such reduction). If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.06 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.07 hereof. The corporation
or national banking association serving as Trustee may have normal banking and
trust relationships with the Depositor, the Sellers and the Master Servicer
and their respective affiliates; provided that such corporation cannot be an
affiliate of the Master Servicer other than the Trustee in its role as
successor to the Master Servicer.

          Section 8.07 Resignation and Removal of Trustee.

          The Trustee may at any time resign and be discharged from the trusts
hereby created by (1) giving written notice of resignation to the Depositor
and the Master Servicer and by mailing notice of resignation by first class
mail, postage prepaid, to the Certificateholders at their addresses appearing
on the Certificate Register and each Rating Agency, not less than 60 days
before the date specified in such notice when, subject to Section 8.08, such
resignation is to take effect, and (2) acceptance of appointment by a
successor trustee in accordance with Section 8.08 and meeting the
qualifications set forth in Section 8.06. If no successor trustee shall have
been so appointed and have accepted appointment within 30 days after the
giving of such notice or resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor trustee.

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

          If at any time (i) the Trustee shall cease to be eligible in
accordance with the provisions of Section 8.06 hereof and shall fail to resign
after written request thereto by the NIM Insurer or the Depositor, (ii) the
Trustee shall become incapable of acting, or shall be adjudged as bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, (iii)(A) a tax is imposed with respect to the Trust Fund by any
state in which the Trustee or the Trust Fund is located, (B) the imposition of
such tax would be avoided by the appointment of a different trustee and (C)
the Trustee fails to indemnify the Trust Fund against such tax, or (iv) during
the period which the Depositor is required to file Exchange Act Reports with
respect to the Trust Fund, the Trustee fails to comply with its obligations
under the last sentence of Section 7.01, the preceding paragraph, Section 8.09
or Article XI and such failure is not remedied within the lesser of 10
calendar days or such period in which the applicable Exchange Act Report can
be filed timely (without taking into account any extensions), then, in the
case of clauses (i) through (iii), the Depositor, the NIM Insurer or the
Master Servicer, or in the case of clause (iv), the Depositor, may remove the
Trustee and appoint a successor trustee, reasonably acceptable to the NIM
Insurer, by written instrument, in triplicate, one copy of which instrument
shall be delivered to the Trustee, one copy of which shall be delivered to the
Master Servicer and one copy of which shall be delivered to the successor
trustee.

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

          Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.07 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.08 hereof.

          Section 8.08 Successor Trustee.

          Any successor trustee appointed as provided in Section 8.07 hereof
shall execute, acknowledge and deliver to the Depositor, its predecessor
trustee and the Master Servicer an instrument accepting such appointment
hereunder and thereupon the resignation or removal of the predecessor trustee
shall become effective and such successor trustee, without any further act,
deed or conveyance, shall become fully vested with all the rights, powers,
duties and

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obligations of its predecessor hereunder, with the like effect as if
originally named as trustee herein. In addition, if the Corridor Contract is
still outstanding, the Person appointed as successor trustee shall execute,
acknowledge and deliver to the predecessor trustee, CHL and the Master
Servicer an instrument accepting the appointment as successor Corridor
Contract Administrator under the Corridor Contract Administration Agreement.
In addition, if the Swap Contract is still outstanding, the Person appointed
as successor trustee shall execute, acknowledge and deliver to the predecessor
trustee, CHL and the Master Servicer an instrument accepting the appointment
as successor Swap Contract Administrator under the Swap Contract
Administration Agreement.

          No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such acceptance such successor trustee
shall be eligible under the provisions of Section 8.06 hereof, is reasonably
acceptable to NIM Insurer, its appointment shall not adversely affect the
then-current ratings of the Certificates and has provided to the Depositor in
writing and in form and substance reasonably satisfactory to the Depositor,
all information reasonably requested by the Depositor in order to comply with
its reporting obligation under Item 6.02 of Form 8-K with respect to a
replacement Trustee. Upon acceptance of appointment by a successor trustee as
provided in this Section 8.08, the Depositor shall mail notice of the
succession of such trustee hereunder to the NIM Insurer and all Holders of
Certificates. If the Depositor fails to mail such notice within ten days after
acceptance of appointment by the successor trustee, the successor trustee
shall cause such notice to be mailed at the expense of the Depositor.

          Section 8.09 Merger or Consolidation of Trustee.

          Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation shall be eligible under the provisions of
Section 8.06 hereof without the execution or filing of any paper or further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

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

          Section 8.10 Appointment of Co-Trustee or Separate Trustee.

          Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Fund or property securing any Mortgage Note may at the
time be located, the Master Servicer and the Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee and reasonably acceptable to the NIM

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Insurer to act as co-trustee or co-trustees jointly with the Trustee, or
separate trustee or separate trustees, of all or any part of the Trust Fund, and
to vest in such Person or Persons, in such capacity and for the benefit of the
Certificateholders, such title to the Trust Fund or any part thereof, whichever
is applicable, and, subject to the other provisions of this Section 8.10, such
powers, duties, obligations, rights and trusts as the Master Servicer and the
Trustee may consider necessary or desirable. If the Master Servicer shall not
have joined in such appointment, or the NIM Insurer shall not have approved such
appointment, within 15 days after receipt by it of a request to do so, or in the
case an Event of Default shall have occurred and be continuing, the Trustee
shall have the power to make such appointment. No co-trustee or separate trustee
hereunder shall be required to meet the terms of eligibility as a successor
trustee under Section 8.06 and no notice to Certificateholders of the
appointment of any co-trustee or separate trustee shall be required under
Section 8.08.

          Every separate trustee and co-trustee shall, to the extent permitted
by law, be appointed and act subject to the following provisions and
conditions:

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

                    (2) No trustee hereunder shall be held personally liable
          by reason of any act or omission of any other trustee hereunder; and

                    (3) The Trustee may at any time accept the resignation of
          or remove any separate trustee or co-trustee.

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

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

          Section 8.11 Tax Matters.

          It is intended that the Trust Fund shall constitute, and that the
affairs of the Trust Fund shall be conducted so that each REMIC created
pursuant to the Preliminary Statement qualifies as, a "real estate mortgage
investment conduit" as defined in and in accordance with the REMIC Provisions.
In furtherance of such intention, the Trustee covenants and agrees that it
shall act as agent (and the Trustee is hereby appointed to act as agent) on
behalf of the Trust Fund and that in such capacity it shall: (a) prepare and
file, or cause to be prepared and filed, in a timely manner, a U.S. Real
Estate Mortgage Investment Conduit Income Tax 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 REMIC created hereunder containing
such information and at the times and in the manner as may be required by the
Code or state or local tax laws, regulations, or rules, and furnish or cause
to be furnished to Certificateholders the schedules, statements or information
at such times and in such manner as may be required thereby; (b) within thirty
days of the Closing Date, furnish or cause to be furnished to the Internal
Revenue Service, on Forms 8811 or as otherwise may be required by the Code,
the name, title, address, and telephone number of the person that the Holders
of the Certificates may contact for tax information relating thereto, together
with such additional information as may be required by such Form, and update
such information at the time or times in the manner required by the Code for
the Trust Fund; (c) make or cause to be made elections, on behalf of each
REMIC created hereunder to be treated as a REMIC on the federal tax return of
each such REMIC for its first taxable year (and, if necessary, under
applicable state law); (d) prepare and forward, or cause to be prepared and
forwarded, to the Certificateholders and to the Internal Revenue Service and,
if necessary, state tax authorities, all information returns and reports as
and when required to be provided to them in accordance with the REMIC
Provisions, including without limitation, the calculation of any original
issue discount using the Prepayment Assumption; (e) provide information
necessary for the computation of tax imposed on the transfer of a Class A-R
Certificate to a Person that is not a Permitted Transferee, or an agent
(including a broker, nominee or other middleman) of a Non-Permitted
Transferee, or a pass-through entity in which a Non-Permitted Transferee is
the record holder of an interest (the reasonable cost of computing and
furnishing such information may be charged to the Person liable for such tax);
(f) to the extent that they are under its control conduct the affairs of the
Trust Fund at all times that any Certificates are outstanding so as to
maintain the status of each REMIC created hereunder as a REMIC under the REMIC
Provisions; (g) not knowingly or intentionally take any action or omit to take
any action that would cause the termination of the REMIC status of any REMIC
created hereunder; (h) pay, from the sources specified in the penultimate
paragraph of this Section 8.11, the amount of any federal, state and local
taxes, including prohibited transaction taxes as described below, imposed on
any REMIC created hereunder prior to the termination of the Trust Fund when
and as the same shall be due and payable (but such

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obligation shall not prevent the Trustee or any other appropriate Person from
contesting any such tax in appropriate proceedings and shall not prevent the
Trustee from withholding payment of such tax, if permitted by law, pending the
outcome of such proceedings); (i) sign or cause to be signed federal, state or
local income tax or information returns; (j) maintain records relating to each
REMIC created hereunder, including but not limited to the income, expenses,
assets and liabilities of each such REMIC, and the fair market value 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; and (k) as and when necessary and
appropriate, 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 created 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 any REMIC created
hereunder in relation to any tax matter involving any such REMIC.

          In order to enable the Trustee to perform its duties as set forth
herein, the Depositor shall provide, or cause to be provided, to the Trustee
within ten days after the Closing Date all information or data that the
Trustee requests in writing and determines to be relevant for tax purposes to
the valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows
of the Certificates and the Mortgage Loans (and, to the extent not part of the
aforementioned, the information referred to in paragraphs (1), (2), (3) and
(4) of Section 4.05(d)). Thereafter, the Depositor shall provide to the
Trustee promptly upon written request therefor, any such additional
information or data that the Trustee may, from time to time, request in order
to enable the Trustee to perform its duties as set forth herein. The Depositor
hereby indemnifies the Trustee for any losses, liabilities, damages, claims or
expenses of the Trustee arising from any errors or miscalculations of the
Trustee that result from any failure of the Depositor to provide, or to cause
to be provided, accurate information or data to the Trustee on a timely basis.

          In the event that any tax is imposed on "prohibited transactions" of
the Trust Fund 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 the Trust Fund 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 the Trust Fund pursuant to sections 23153 and 24872 of the
California Revenue and Taxation Code if not paid as otherwise provided for
herein, such tax shall be paid by (i) the Trustee, if any such other tax
arises out of or results from a breach by the Trustee of any of its
obligations under this Agreement, (ii) (x) the Master Servicer, in the case of
any such minimum tax, and (y) any party hereto (other than the Trustee) 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 here 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 A-R
Certificateholders, and second with amounts otherwise to be distributed to all
other Certificateholders in the same manner as if such tax were a Realized
Loss that occurred ratably within each Loan Group. Notwithstanding anything to
the contrary contained herein, to the extent that such tax is payable by the
Class A-R Certificates, the Trustee is hereby authorized to retain on any
Distribution Date, from the Holders of the Class A-R Certificates (and, if

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necessary, second, from the Holders of all 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 Trustee 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.

          The Trustee shall treat the Carryover Reserve Fund and the Swap
Trust, including the Swap Account, as outside reserve funds within the meaning
of Treasury Regulation 1.860G-2(h), neither of which is an asset of any REMIC
created hereunder. The Carryover Reserve Fund shall be treated as owned by the
Class CF and Class CV Certificateholders and the Swap Trust, including the
Swap Account shall be treated as owned by the Class CV Certificateholders. The
rights of the Holders of each Class of Certificates (other than the Class P
and Class A-R Certificates) to receive payments from, and the deemed
obligations of such Holders to make payments to, the Carryover Reserve Fund or
the Swap Trust, including the Swap Account, shall be treated as rights and
obligations with respect to notional principal contracts written by (i) the
Corridor Contract Counterparty in respect of any Net Rate Carryover funded by
the Corridor Contract and in respect of any residual payments from such
Corridor Contract received by the Class CF Certificates, (ii) the Holders of
the Class CF and Class CV Certificates in respect of any Net Rate Carryover
distributed pursuant to Sections 4.04(e)(4) and 4.04(f)(4), and (iii) the Swap
Counterparty in respect of any Net Rate Carryover funded by the Swap Contract
and in respect of any residual payments from such Swap Contract received by
the Class CV Certificates. Thus, the Certificates (other than the Class P and
Class A-R Certificates), shall be treated as representing ownership of Master
REMIC regular interests coupled with contractual rights and obligations within
the meaning of Treasury Regulation 1.860G-2(i). For purposes of determining
the issue price of the various Master REMIC regular interests, the Trustee
shall assume that (i) the Corridor Contract has a value of $15,000 and (ii)
the Swap Contract has a value of $1,810,000. The Trustee shall treat any
amount payable to a Class C Certificate with respect to an ES-XF or ES-XV
Interest as deposited into the Carryover Reserve Fund. In addition, to the
extent the interest otherwise payable to a Certificateholder is reduced for
amounts payable with respect to the Swap Contract, the Trustee, for federal
income tax purposes, shall treat the amount of such reduction as first payable
to the Certificateholder as interest and as then payable by the
Certificateholder with respect to a notional principal contract. To the extent
the amount payable with respect to the Swap Contract exceeds the aggregate of
the reductions described in the immediate sentence, the Trustee, for federal
income tax purposes, shall treat such excess as Realized Losses from Mortgage
Loans and to the extent such Realized Losses (if they had occurred) would be
allocated to a Certificateholder, the Trustee shall treat such amount as first
payable to the Certificateholder as principal and as then payable by the
Certificateholder with respect to a notional principal contract.

          Section 8.12 Access to Records of the Trustee.

          The Trustee shall afford the Sellers, the Depositor, the Master
Servicer, the NIM Insurer and each Certificate Owner upon reasonable notice
during normal business hours access to all records maintained by the Trustee
in respect of its duties under this Agreement and access to officers of the
Trustee responsible for performing its duties. Upon request, the Trustee shall
furnish the Depositor, the Master Servicer, the NIM Insurer and any requesting
Certificate Owner with its most recent financial statements. The Trustee shall
cooperate fully with the Sellers, the Master Servicer, the Depositor, the NIM
Insurer and the Certificate Owner for review

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and copying any books, documents, or records requested with respect to the
Trustee's duties under this Agreement. The Sellers, the Depositor, the Master
Servicer and the Certificate Owner shall not have any responsibility or
liability for any action for failure to act by the Trustee and are not
obligated to supervise the performance of the Trustee under this Agreement or
otherwise.

          Section 8.13 Suits for Enforcement.

          If an Event of Default or other material default by the Master
Servicer or the Depositor under this Agreement occurs and is continuing, at
the direction of the Certificateholders holding not less than 51% of the
Voting Rights or the NIM Insurer, the Trustee shall proceed to protect and
enforce its rights and the rights of the Certificateholders or the NIM Insurer
under this Agreement by a suit, action, or proceeding in equity or at law or
otherwise, whether for the specific performance of any covenant or agreement
contained in this Agreement or in aid of the execution of any power granted in
this Agreement or for the enforcement of any other legal, equitable, or other
remedy, as the Trustee, being advised by counsel, and subject to the
foregoing, shall deem most effectual to protect and enforce any of the rights
of the Trustee, the NIM Insurer and the Certificateholders.

                                  ARTICLE IX.
                                  TERMINATION

          Section 9.01 Termination upon Liquidation or Repurchase of all
                    Mortgage Loans.

          Subject to Section 9.03, the Trust Fund shall terminate and the
obligations and responsibilities of the Depositor, the Master Servicer, the
Sellers and the Trustee created hereby shall terminate upon the earlier of (a)
the purchase by the Master Servicer or NIM Insurer (the party exercising such
purchase option, the "Terminator") of all of the Mortgage Loans (and REO
Properties) remaining in the Trust Fund at the price equal to the sum of (i)
100% of the Stated Principal Balance of each Mortgage Loan in the Trust Fund
(other than in respect of an REO Property), (ii) accrued interest thereon at
the applicable Mortgage Rate (or, if such repurchase is effected by the Master
Servicer, at the applicable Net Mortgage Rate), (iii) the appraised value of
any REO Property in the Trust Fund (up to the Stated Principal Balance of the
related Mortgage Loan), such appraisal to be conducted by an appraiser
mutually agreed upon by the Terminator and the Trustee, (iv) any remaining
unpaid costs and damages incurred by the Trust Fund that arises out of an
actual violation of any predatory or abusive lending law or regulation and (v)
plus, if the Terminator is the NIM Insurer, any unreimbursed Servicing
Advances, and the principal portion of any unreimbursed Advances, made on the
Mortgage Loans prior to the exercise of such repurchase and (b) the later of
(i) the maturity or other liquidation (or any Advance with respect thereto) of
the last Mortgage Loan remaining in the Trust Fund and the disposition of all
REO Property and (ii) the distribution to related 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 21 years from the death of the last survivor
of the descendants of Joseph P. Kennedy, the late Ambassador of the United
States to the Court of St. James's, living on the date hereof and (ii) the
Latest Possible Maturity Date.

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          The right to purchase all Mortgage Loans and REO Properties by the
Terminator pursuant to clause (a) of the immediately preceding paragraph shall
be conditioned upon (1) the Stated Principal Balance of the Mortgage Loans, at
the time of any such repurchase, aggregating ten percent (10%) or less of the
sum of the aggregate Cut-off Date Principal Balance of the Initial Mortgage
Loans and the Pre-Funded Amount and (2) unless the NIM Insurer otherwise
consents, the purchase price for such Mortgage Loans and REO Properties shall
result in a final distribution on any NIM Insurer guaranteed notes that is
sufficient (x) to pay such notes in full and (y) to pay any amounts due and
payable to the NIM Insurer pursuant to the indenture related to such notes.

          The NIM Insurer's right to purchase all Mortgage Loans and REO
Properties shall be further conditioned upon the written consent of the Master
Servicer.

          The Swap Trust shall terminate on the earlier of (i) the Swap
Contract Termination Date, (ii) the reduction of the aggregate Certificate
Principal Balance of the Swap Certificates to zero and (iii) the termination
of this Agreement.

          Section 9.02 Final Distribution on the Certificates.

          If on any Determination Date, (i) the Master Servicer determines
that there are no Outstanding Mortgage Loans and no other funds or assets in
the Trust Fund other than the funds in the Certificate Account, the Master
Servicer shall direct the Trustee to send a final distribution notice promptly
to each related Certificateholder or (ii) the Trustee determines that a Class
of Certificates shall be retired after a final distribution on such Class, the
Trustee shall notify the related 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 Corporate Trust Office of the
Trustee. If the Terminator elects to terminate pursuant to clause (a) of
Section 9.01, at least 20 days prior to the date notice is to be mailed to the
affected Certificateholders, such electing party shall notify the Depositor
and the Trustee of the date such electing party intends to terminate and of
the applicable repurchase price of the related Mortgage Loans and REO
Properties.

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

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

          Upon presentation and surrender of the Certificates, the Trustee
shall cause to be distributed to Certificateholders of each affected Class the
amounts allocable to such Certificates held in the Distribution Account (and,
if applicable, the Carryover Reserve Fund) in the order and priority set forth
in Section 4.04 hereof on the final Distribution Date and in proportion to
their respective Percentage Interests. Notwithstanding the reduction of the
Certificate Principal Balance of any Class of Certificates to zero, such Class
will be outstanding hereunder (solely for the purpose of receiving
distributions (if any) to which it may be entitled pursuant to the terms of
this Agreement and not for any other purpose) until the termination of the
respective obligations and responsibilities of the Depositor, each Seller, the
Master Servicer and the Trustee hereunder in accordance with Article IX.

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

          Section 9.03 Additional Termination Requirements.

          (a) In the event the Terminator exercises its purchase option, the
Trust Fund shall be terminated in accordance with the following additional
requirements, unless the Trustee has been supplied with an Opinion of Counsel,
at the expense of the Terminator, to the effect that the failure of the Trust
Fund to comply with the requirements of this Section 9.03 will not (i) result
in the imposition of taxes on "prohibited transactions" of a REMIC, or (ii)
cause any REMIC created hereunder to fail to qualify as a REMIC at any time
that any Certificates are outstanding:

               (1) The Master Servicer shall establish a 90-day liquidation
period and notify the Trustee thereof, which shall in turn specify the first
day of such period in a statement attached to the Trust Fund's final Tax
Return pursuant to Treasury Regulation Section 1.860F-1. The Master Servicer
shall prepare a plan of complete liquidation and shall otherwise 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 delivered to
the Trustee and the Depositor obtained at the expense of the Terminator;

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               (2) During such 90-day liquidation period, and at or prior to
the time of making the final payment on the Certificates, the Master Servicer
as agent of the Trustee shall sell all of the assets of the Trust Fund to the
Terminator for cash; and

               (3) At the time of the making of the final payment on the
Certificates, the Trustee shall distribute or credit, or cause to be
distributed or credited, to the Class A-R Certificateholders all cash on hand
(other than cash retained to meet claims) related to such Class of
Certificates, and the Trust Fund shall terminate at that time.

          (b) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Master Servicer to specify the 90-day liquidation period
for the Trust Fund, which authorization shall be binding upon all successor
Certificateholders. The Trustee shall attach a statement to the final federal
income tax return for each of any REMIC created hereunder stating that
pursuant to Treasury Regulation Section 1.860F-1, the first day of the 90-day
liquidation period for each the REMIC was the date on which the Trustee sold
the assets of the Trust Fund to the Terminator.

          (c) The Trustee as agent for each REMIC created hereunder hereby
agrees to adopt and sign such a plan of complete liquidation upon the written
request of the Master Servicer, and the receipt of the Opinion of Counsel
referred to in Section 9.03(a)(1), and together with the Holders of the Class
A-R Certificates agree to take such other action in connection therewith as
may be reasonably requested by the Terminator.

                                  ARTICLE X.

                           MISCELLANEOUS PROVISIONS

          Section 10.01 Amendment.

          This Agreement may be amended from time to time by the Depositor,
the Master Servicer, the Sellers and the Trustee with the consent of the NIM
Insurer, without the consent of any of the Certificateholders (i) to cure any
ambiguity, (ii) to correct or supplement any provisions herein, (iii) to
conform this Agreement to the Prospectus Supplement or the Prospectus, (iv) to
modify, alter, amend, add to or rescind any of the terms or provisions
contained in this Agreement to comply with any rules or regulations
promulgated by the Securities and Exchange Commission from time to time, or
(v) 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; 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, it being
understood and agreed that any such letter in and of itself will not represent
a determination as to the materiality of any such amendment and will represent
a determination only as to the credit issues affecting any such rating. Any
amendment described above made solely to conform this Agreement to the
Prospectus or the Prospectus Supplement shall be

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deemed not to adversely affect in any material respect the interests of the
Certificateholders. Notwithstanding the foregoing, no amendment that
significantly changes the permitted activities of the trust created by this
Agreement may be made without the consent of Certificateholders representing
not less than 51% of the Voting Rights of each Class of Certificates affected
by such amendment. Each party to this Agreement hereby agrees that it will
cooperate with each other party in amending this Agreement pursuant to clause
(iv) above.

          The Trustee, the Depositor, the Master Servicer and the Sellers with
the consent of the NIM Insurer may also at any time and from time to time
amend this Agreement, without the consent of the Certificateholders, to
modify, eliminate or add to any of its provisions to such extent as shall be
necessary or appropriate to maintain the qualification of the Trust Fund as a
REMIC under the Code or to avoid or minimize the risk of the imposition of any
tax on the Trust Fund pursuant to the Code that would be a claim against the
Trust Fund 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, 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
Depositor, the Master Servicer, the Sellers and the Trustee with the consent
of the NIM Insurer and the Holders of each Class of Certificates affected
thereby evidencing not less than 51% of the Voting Rights of such Class for
the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Holders of Certificates; provided that no such
amendment shall (i) reduce in any manner the amount of, or delay the timing
of, payments required to be distributed on any Certificate without the consent
of the Holder of such Certificate, (ii) adversely affect in any material
respect the interests of the Holders of any Class of Certificates in a manner
other than as described in (i), without the consent of the Holders of
Certificates of such Class evidencing 66% or more of the Voting Rights of such
Class or (iii) reduce the aforesaid percentages of Certificates the Holders of
which are required to consent to any such amendment without the consent of the
Holders of all such Certificates then outstanding.

          Notwithstanding any contrary provision of this Agreement, no
amendment shall adversely affect in any material respect the Swap Counterparty
without the prior written consent of the Swap Counterparty, which consent
shall not be unreasonably withheld. CHL shall provide the Swap Counterparty
with prior written notice of any proposed material amendment of this
Agreement.

          Notwithstanding any contrary provision of this Agreement, the
Trustee and the NIM Insurer shall not consent to any amendment to this
Agreement unless each shall have first received an Opinion of Counsel
satisfactory to the Trustee and the NIM Insurer, which opinion shall be an
expense of the party requesting such amendment but in any case shall not be an
expense of the Trustee or the NIM Insurer, to the effect that such amendment
will not cause the imposition of any tax on the Trust Fund or the
Certificateholders or cause any REMIC formed hereunder to fail to qualify as a
REMIC at any time that any Certificates are outstanding.

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          Promptly after the execution of any amendment to this Agreement, the
Trustee shall furnish written notification of the substance of such amendment
to the Swap Counterparty and, if the amendment required the consent of
Certificateholders, to each Certificateholder and each Rating Agency.

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

          Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel, reasonably satisfactory to
the Trustee and the NIM Insurer that (i) such amendment is permitted and is
not prohibited by this Agreement and that all requirements for amending this
Agreement have been complied with; and (ii) either (A) the amendment does not
adversely affect in any material respect the interests of any
Certificateholder or (B) the conclusion set forth in the immediately preceding
clause (A) is not required to be reached pursuant to this Section 10.01.

          Section 10.02 Recordation of Agreement; Counterparts.

          This Agreement is subject to recordation in all appropriate public
offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages
are situated, and in any other appropriate public recording office or
elsewhere, such recordation to be effected by the Master Servicer at its
expense.

          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 10.03 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.

          Section 10.04 Intention of Parties.

          (a) 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 Depositor to the Trustee be, and be construed as, an absolute
sale thereof to the Trustee. It is, further, not the intention of the parties
that such conveyance be deemed a pledge thereof by the Depositor to the
Trustee. However, in the event

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that, notwithstanding the intent of the parties, such assets are held to be
the property of the Depositor, or if for any other reason this Agreement or
any Subsequent Transfer 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) with respect to all such assets and security interests and
(ii) the conveyance provided for in this Agreement and any Subsequent Transfer
Agreement shall be deemed to be an assignment and a grant pursuant to the
terms of this Agreement by the Depositor to the Trustee, for the benefit of
the Certificateholders and the Swap Counterparty, 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, the NIM
Insurer and the Swap Counterparty 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. The Depositor shall arrange for filing
any Uniform Commercial Code continuation statements in connection with any
security interest granted or assigned to the Trustee for the benefit of the
Certificateholders and the Swap Counterparty.

          (b) The Depositor hereby represents that:

               (i) This Agreement creates a valid and continuing security
          interest (as defined in the Uniform Commercial Code as enacted in
          the State of New York (the "NY UCC")) in the Mortgage Notes in favor
          of the Trustee, which security interest is prior to all other liens,
          and is enforceable as such as against creditors of and purchasers
          from the Depositor.

               (ii) The Mortgage Notes constitute "instruments" within the
          meaning of the NY UCC.

               (iii) Immediately prior to the assignment of each Mortgage Loan
          to the Trustee, the Depositor owns and has good and marketable title
          to such Mortgage Loan free and clear of any lien, claim or
          encumbrance of any Person.

               (iv) The Depositor has received all consents and approvals
          required by the terms of the Mortgage Loans to the sale of the
          Mortgage Loans hereunder to the Trustee.

               (v) All original executed copies of each Mortgage Note that are
          required to be delivered to the Trustee pursuant to Section 2.01
          have been delivered to the Trustee.

               (vi) Other than the security interest granted to the Trustee
          pursuant to this Agreement, the Depositor has not pledged, assigned,
          sold, granted a security interest in, or otherwise conveyed any of
          the Mortgage Loans. The Depositor has not authorized the filing of
          and is not aware of any financing statements against the Depositor
          that include a description of collateral covering the Mortgage Loans
          other than any financing statement relating to the security interest
          granted to the

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          Trustee hereunder or that has been terminated. The Depositor is not
          aware of any judgment or tax lien filings against the Depositor.

          (c) The Master Servicer shall take such action as is reasonably
necessary to maintain the perfection and priority of the security interest of
the Trustee in the Mortgage Loans; provided, however, that the obligation to
deliver the Mortgage File to the Trustee pursuant to Section 2.01 shall be
solely the Depositor's obligation and the Master Servicer shall not be
responsible for the safekeeping of the Mortgage Files by the Trustee.

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

          The Depositor for the benefit of the Certificateholders, the NIM
Insurer and the Swap Counterparty 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. The Depositor shall arrange for filing
any Uniform Commercial Code continuation statements in connection with any
security interest granted or assigned to the Trustee for the benefit of the
Certificateholders and the Swap Counterparty.

          Section 10.05 Notices.

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

                    (1) Any material change or amendment to this Agreement;

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

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

                    (4) The repurchase or substitution of Mortgage Loans
          pursuant to Sections 2.02, 2.03, 2.04 and 3.12; and

                    (5) The final payment to Certificateholders.

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

                    (1) Each report to Certificateholders described in Section
          4.05;

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                    (2) Each annual statement as to compliance described in
          Section 3.17; and

                    (3) Each annual independent public accountants' servicing
          report described in Section 11.07.

          (c) All directions, demands and notices hereunder shall be in
writing and shall be deemed to have been duly given when sent by facsimile
transmission, first class mail or delivered to (i) in the case of the
Depositor, CWABS, Inc., 4500 Park Granada, Calabasas, California 91302,
facsimile number: (818) 225-4053, Attention: David A. Spector, or such other
address as may be hereafter furnished to the Sellers, the Master Servicer and
the Trustee by the Depositor in writing; (ii) in the case of CHL, Countrywide
Home Loans, Inc., 4500 Park Granada, Calabasas, California 91302, facsimile
number (818) 225-4053, Attention: David A. Spector, or such other address as
may be hereafter furnished to the Depositor, the Master Servicer and the
Trustee by the Sellers in writing; (iii) in the case of Park Monaco, Park
Monaco Inc., 4500 Park Granada, Calabasas, California 91302, facsimile number
(818) 225-4028, Attention: Paul Liu, or such other address as may be hereafter
furnished to the Depositor, the Master Servicer and the Trustee by the Sellers
in writing; (iv) in the case of Park Sienna, Park Sienna LLC, 4500 Park
Granada, Calabasas, California 91302, facsimile number (818) 225-4028,
Attention: Paul Liu, or such other address as may be hereafter furnished to
the Depositor, the Master Servicer and the Trustee by the Sellers in writing;
(v) in the case of the Master Servicer, Countrywide Home Loans Servicing LP,
7105 Corporate Drive, Plano, Texas 75024, facsimile number (805) 520-5623,
Attention: Mark Wong or such other address as may be hereafter furnished to
the Depositor, the Sellers and the Trustee by the Master Servicer in writing;
(vi) in the case of the Trustee, The Bank of New York, 101 Barclay Street, New
York, New York 10286, Attention: Corporate Trust MBS Administration, CWABS,
Series 2006-1, or such other address as the Trustee may hereafter furnish to
the parties hereto; (vii) in the case of the Rating Agencies, (x) Moody's
Investors Service, Inc., Attention: ABS Monitoring Department, 99 Church
Street, Sixth Floor, New York, New York 10007, and (y) Standard & Poor's
Ratings Services, a division of The McGraw-Hill Companies, Attention: Mortgage
Surveillance Group, 55 Water Street, 41st Floor, New York, New York 10041 and
(viii) in the case of the Corridor Contract Counterparty and the Swap
Counterparty, Bear Stearns Financial Products Inc., 383 Madison Avenue, New
York, New York 10179 Attention: DPC Manager, or such other address as may be
hereafter furnished by the Swap Counterparty. Notices to Certificateholders
shall be deemed given when mailed, first postage prepaid, to their respective
addresses appearing in the Certificate Register.

          Section 10.06 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.

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          Section 10.07 Assignment.

          Notwithstanding anything to the contrary contained herein, except as
provided pursuant to Section 6.02, this Agreement may not be assigned by the
Master Servicer without the prior written consent of the Trustee and the
Depositor.

          Section 10.08 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 an Event of Default and of the continuance thereof, as
hereinbefore provided, the Holders of Certificates evidencing not less than
25% of the Voting Rights shall also have made written request to the Trustee
to institute such action, suit or proceeding in its own name as Trustee
hereunder and shall have offered to the Trustee such reasonable indemnity as
it may require against the costs, expenses, and liabilities to be incurred
therein or thereby, and the Trustee, for 60 days after its receipt of such
notice, request and offer of indemnity shall have neglected or refused to
institute any such action, suit or proceeding; it being understood and
intended, and being expressly covenanted by each Certificateholder with every
other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue or by
availing itself or themselves of any provisions of this Agreement to affect,
disturb or prejudice the rights of the Holders of any other of the
Certificates, or to obtain or seek to obtain priority over or preference to
any other such Holder or to enforce any right under this Agreement, except in
the manner herein provided and for the common benefit of all
Certificateholders. For the protection and enforcement of the provisions of
this Section 10.08, each and every Certificateholder and the Trustee shall be
entitled to such relief as can be given either at law or in equity.

          Section 10.09 Inspection and Audit Rights.

          The Master Servicer agrees that, on reasonable prior notice, it will
permit any representative of the Depositor, any Seller, the NIM Insurer or the
Trustee during the Master Servicer's normal business hours, to examine all the
books of account, records, reports and other

                                     160
<PAGE>

papers of the Master Servicer relating to the Mortgage Loans, to make copies
and extracts therefrom, to cause such books to be audited by independent
certified public accountants selected by the Depositor, a Seller, the NIM
Insurer or the Trustee and to discuss its affairs, finances and accounts
relating to the Mortgage Loans with its officers, employees and independent
public accountants (and by this provision the Master Servicer hereby
authorizes such accountants to discuss with such representative such affairs,
finances and accounts), all at such reasonable times and as often as may be
reasonably requested. Any out-of-pocket expense incident to the exercise by
the Depositor, any Seller, the NIM Insurer or the Trustee of any right under
this Section 10.09 shall be borne by the party requesting such inspection; all
other such expenses shall be borne by the Master Servicer.

          Section 10.10 Certificates Nonassessable and Fully Paid.

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

          Section 10.11 Rights of NIM Insurer.

          (a) The rights of the NIM Insurer under this Agreement shall exist
only so long as either:

                    (1) the notes certain payments on which are guaranteed by
          the NIM Insurer remain outstanding or

                    (2) the NIM Insurer is owed amounts paid by it with
          respect to that guaranty.

          (b) The rights of the NIM Insurer under this Agreement are
exercisable by the NIM Insurer only so long as no default by the NIM Insurer
under its guaranty of certain payments under notes backed or secured by the
Class C or Class P Certificates has occurred and is continuing. If the NIM
Insurer is the subject of any insolvency proceeding, the rights of the NIM
Insurer under this Agreement will be exercisable by the NIM Insurer only so
long as:

                    (1) the obligations of the NIM Insurer under its guaranty
          of notes backed or secured by the Class C or Class P Certificates
          have not been disavowed and

                    (2) CHL and the Trustee have received reasonable
          assurances that the NIM Insurer will be able to satisfy its
          obligations under its guaranty of notes backed or secured by the
          Class C or Class P Certificates.

          (c) The NIM Insurer is a third party beneficiary of this Agreement
to the same extent as if it were a party to this Agreement and may enforce any
of those rights under this Agreement.

                                     161
<PAGE>

          (d) A copy of any documents of any nature required by this Agreement
to be delivered by the Trustee, or to the Trustee or the Rating Agencies,
shall in each case at the same time also be delivered to the NIM Insurer. Any
notices required to be given by the Trustee, or to the Trustee or the Rating
Agencies, shall in each case at the same time also be given to the NIM
Insurer. If the Trustee receives a notice or document that is required
hereunder to be delivered to the NIM Insurer, and if such notice or document
does not indicate that a copy thereof has been previously sent to the NIM
Insurer, the Trustee shall send the NIM Insurer a copy of such notice or
document. If such document is an Opinion of Counsel, the NIM Insurer shall be
an addressee thereof or such Opinion of Counsel shall contain language
permitting the NIM Insurer to rely thereon as if the NIM Insurer were an
addressee thereof.

          (e) Anything in this Agreement that is conditioned on not resulting
in the downgrading or withdrawal of the ratings then assigned to the
Certificates by the Rating Agencies shall also be conditioned on not resulting
in the downgrading or withdrawal of the ratings then assigned by the Rating
Agencies to the notes backed or secured by the Class C or Class P Certificates
(without giving effect to any policy or guaranty provided by the NIM Insurer).

                                     162
<PAGE>

                                 ARTICLE XI.
                            EXCHANGE ACT REPORTING

          Section 11.01 Filing Obligations.

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

          Section 11.02 Form 10-D Filings.

          (a) In accordance with the Exchange Act, the Trustee shall prepare
for filing and file within 15 days after each Distribution Date (subject to
permitted extensions under the Exchange Act) with the Commission with respect
to the Trust Fund, a Form 10-D with copies of the Monthly Statement and, to
the extent delivered to the Trustee, no later than 10 days following the
Distribution Date, such other information identified by the Depositor or the
Master Servicer, in writing, to be filed with the Commission (such other
information, the "Additional Designated Information"). If the Depositor or
Master Servicer directs that any Additional Designated Information is to be
filed with any Form 10-D, the Depositor or Master Servicer, as the case may
be, shall specify the Item on Form 10-D to which such information is
responsive and, with respect to any Exhibit to be filed on Form 10-D, the
Exhibit number. Any information to be filed on Form 10-D shall be delivered to
the Trustee in EDGAR-compatible form or as otherwise agreed upon by the
Trustee and the Depositor or the Master Servicer, as the case may be, at the
Depositor's expense, and any necessary conversion to EDGAR-compatible format
will be at the Depositor's expense. At the reasonable request of, and in
accordance with the reasonable directions of, the Depositor or the Master
Servicer, subject to the two preceding sentences, the Trustee shall prepare
for filing and file an amendment to any Form 10-D previously filed with the
Commission with respect to the Trust Fund. The Master Servicer shall sign the
Form 10-D filed on behalf of the Trust Fund.

          (b) No later than each Distribution Date, each of the Master
Servicer and the Trustee shall notify (and the Master Servicer shall cause any
Subservicer to notify) the Depositor and the Master Servicer of any Form 10-D
Disclosure Item, together with a description of any such Form 10-D Disclosure
Item in form and substance reasonably acceptable to the Depositor. In addition
to such information as the Master Servicer and the Trustee are obligated to
provide pursuant to other provisions of this Agreement, if so requested by the
Depositor, each of the Master Servicer and the Trustee shall provide such
information which is available to the Master Servicer and the Trustee, as
applicable, without unreasonable effort or expense regarding the performance
or servicing of the Mortgage Loans (in the case of the Trustee, based on the

                                     163
<PAGE>

information provided by the Master Servicer) as is reasonably required to
facilitate preparation of distribution reports in accordance with Item 1121 of
Regulation AB. Such information shall be provided concurrently with the
Remittance Reports in the case of the Master Servicer and the Monthly
Statement in the case of the Trustee, commencing with the first such report
due not less than five Business Days following such request.

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

          Section 11.03 Form 8-K Filings.

          The Master Servicer shall prepare and file on behalf of the Trust
Fund any Form 8-K required by the Exchange Act. Each Form 8-K must be signed
by the Master Servicer. Each of the Master Servicer (and the Master Servicer
shall cause any Subservicer to promptly notify) and the Trustee shall promptly
notify the Depositor and the Master Servicer (if the notifying party is not
the Master Servicer), but in no event later than one (1) Business Day after
its occurrence, of any Reportable Event of which it has actual knowledge. Each
Person shall be deemed to have actual knowledge of any such event to the
extent that it relates to such Person or any action or failure to act by such
Person. Concurrently with any Subsequent Transfer, CHL shall notify the
Depositor and the Master Servicer, if any material pool characteristic of the
actual asset pool at the time of issuance of the Certificates differs by 5% or
more (other than as a result of the pool assets converting into cash in
accordance with their terms) from the description of the asset pool in the
Prospectus Supplement.

          Section 11.04 Form 10-K Filings.

          Prior to March 30th of each year, commencing in 2007 (or such
earlier date as may be required by the Exchange Act), the Depositor shall
prepare and file on behalf of the Trust Fund a Form 10-K, in form and
substance as required by the Exchange Act. A senior officer in charge of the
servicing function of the Master Servicer shall sign each Form 10-K filed on
behalf of the Trust Fund. Such Form 10-K shall include as exhibits each (i)
annual compliance statement described under Section 3.17, (ii) annual report
on assessments of compliance with servicing criteria described under Section
11.07 and (iii) accountant's report described under Section 11.07. Each Form
10-K shall also include any Sarbanes-Oxley Certification required to be
included therewith, as described in Section 11.05.

          If the Item 1119 Parties listed on Exhibit Z have changed since the
Closing Date, no later than March 1 of each year, the Master Servicer shall
provide each of the Master Servicer (and the Master Servicer shall provide any
Subservicer) and the Trustee with an updated Exhibit Z setting forth the Item
1119 Parties. No later than March 15 of each year, commencing in 2007, the
Master Servicer and the Trustee shall notify (and the Master Servicer shall
cause any

                                     164
<PAGE>

Subservicer to notify) the Depositor and the Master Servicer of any Form 10-K
Disclosure Item, together with a description of any such Form 10-K Disclosure
Item in form and substance reasonably acceptable to the Depositor.
Additionally, each of the Master Servicer and the Trustee shall provide, and
shall cause each Reporting Subcontractor retained by the Master Servicer or
the Trustee, as applicable, and in the case of the Master Servicer shall cause
each Subservicer, to provide, the following information no later than March 15
of each year in which a Form 10-K is required to be filed on behalf of the
Trust Fund: (i) if such Person's report on assessment of compliance with
servicing criteria described under Section 11.07 or related registered public
accounting firm attestation report described under Section 11.07 identifies
any material instance of noncompliance, notification of such instance of
noncompliance and (ii) if any such Person's report on assessment of compliance
with servicing criteria or related registered public accounting firm
attestation report is not provided to be filed as an exhibit to such Form
10-K, information detailing the explanation why such report is not included.

          Section 11.05 Sarbanes-Oxley Certification.

          Each Form 10-K shall include a certification (the "Sarbanes-Oxley
Certification") required by Rules 13a-14(d) and 15d-14(d) under the Exchange
Act (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and the rules
and regulations of the Commission promulgated thereunder (including any
interpretations thereof by the Commission's staff)). No later than March 15 of
each year, beginning in 2007, the Master Servicer and the Trustee shall
(unless such person is the Certifying Person), and the Master Servicer shall
cause each Subservicer and each Reporting Subcontractor and the Trustee shall
cause each Reporting Subcontractor to, provide to the Person who signs the
Sarbanes-Oxley Certification (the "Certifying Person") a certification (each,
a "Performance Certification"), in the form attached hereto as Exhibit X-1 (in
the case of a Subservicer or any Reporting Subcontractor of the Master
Servicer or a Subservicer) and Exhibit X-2 (in the case of the Trustee or any
Reporting Subcontractor of the Trustee), on which the Certifying Person, the
entity for which the Certifying Person acts as an officer, and such entity's
officers, directors and Affiliates (collectively with the Certifying Person,
"Certification Parties") can reasonably rely. The senior officer in charge of
the servicing function of the Master Servicer shall serve as the Certifying
Person on behalf of the Trust Fund. Neither the Master Servicer nor the
Depositor will request delivery of a certification under this clause unless
the Depositor is required under the Exchange Act to file an annual report on
Form 10-K with respect to the Trust Fund. In the event that prior to the
filing date of the Form 10-K in March of each year, the Trustee or the
Depositor has actual knowledge of information material to the Sarbanes-Oxley
Certification, the Trustee or the Depositor, as the case may be, shall
promptly notify the Master Servicer and the Depositor. The respective parties
hereto agree to cooperate with all reasonable requests made by any Certifying
Person or Certification Party in connection with such Person's attempt to
conduct any due diligence that such Person reasonably believes to be
appropriate in order to allow it to deliver any Sarbanes-Oxley Certification
or portion thereof with respect to the Trust Fund.

                                     165
<PAGE>

          Section 11.06 Form 15 Filing.

          Prior to January 30 of the first year in which the Depositor is able
to do so under applicable law, the Depositor shall file a Form 15 relating to
the automatic suspension of reporting in respect of the Trust Fund under the
Exchange Act.

          Section 11.07 Report on Assessment of Compliance and Attestation.

          (a) On or before March 15 of each calendar year, commencing in 2007:

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

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

                    (3) The Master Servicer shall cause each Subservicer and
          each Reporting Subcontractor to deliver to the Depositor an
          assessment of compliance and accountant's attestation as and when
          provided in paragraphs (a) and (b) of this Section 11.07.

                    (4) The Trustee shall cause each Reporting Subcontractor
          to deliver to the Depositor and the Master Servicer an assessment of
          compliance and accountant's attestation as and when provided in
          paragraphs (a) and (b) of this Section.

                                     166
<PAGE>

                    (5) The Master Servicer and the Trustee shall execute (and
          the Master Servicer shall cause each Subservicer to execute, and the
          Master Servicer and the Trustee shall cause each Reporting
          Subcontractor to execute) a reliance certificate to enable the
          Certification Parties to rely upon each (i) annual compliance
          statement provided pursuant to Section 3.17, (ii) annual report on
          assessments of compliance with servicing criteria provided pursuant
          to this Section 11.07 and (iii) accountant's report provided
          pursuant to this Section 11.07 and shall include a certification
          that each such annual compliance statement or report discloses any
          deficiencies or defaults described to the registered public
          accountants of such Person to enable such accountants to render the
          certificates provided for in this Section 11.07.

          (b) In the event the Master Servicer, any Subservicer, the Trustee
or Reporting Subcontractor is terminated or resigns during the term of this
Agreement, such Person shall provide documents and information required by
this Section 11.07 with respect to the period of time it was subject to this
Agreement or provided services with respect to the Trust Fund, the
Certificates or the Mortgage Loans.

          (c) Each assessment of compliance provided by a Subservicer pursuant
to Section 11.07(a)(3) shall address each of the Servicing Criteria specified
on a certification substantially in the form of Exhibit W hereto delivered to
the Depositor concurrently with the execution of this Agreement or, in the
case of a Subservicer subsequently appointed as such, on or prior to the date
of such appointment. An assessment of compliance provided by a Subcontractor
pursuant to Section 11.07(a)(3) or (4) need not address any elements of the
Servicing Criteria other than those specified by the Master Servicer or the
Trustee, as applicable, pursuant to Section 11.07(a)(1).

          Section 11.08 Use of Subservicers and Subcontractors.

          (a) The Master Servicer shall cause any Subservicer used by the
Master Servicer (or by any Subservicer) for the benefit of the Depositor to
comply with the provisions of Section 3.17 and this Article XI to the same
extent as if such Subservicer were the Master Servicer (except with respect to
the Master Servicer's duties with respect to preparing and filing any Exchange
Act Reports or as the Certifying Person). The Master Servicer shall be
responsible for obtaining from each Subservicer and delivering to the
Depositor any servicer compliance statement required to be delivered by such
Subservicer under Section 3.17, any assessment of compliance and attestation
required to be delivered by such Subservicer under Section 11.07 and any
certification required to be delivered to the Certifying Person under Section
11.05 as and when required to be delivered. As a condition to the succession
to any Subservicer as subservicer under this Agreement by any Person (i) into
which such Subservicer may be merged or consolidated, or (ii) which may be
appointed as a successor to any Subservicer, the Master Servicer shall provide
to the Depositor, at least 15 calendar days prior to the effective date of
such succession or appointment, (x) written notice to the Depositor of such
succession or appointment and (y) in writing and in form and substance
reasonably satisfactory to the Depositor, all information reasonably requested
by the Depositor in order to comply with its reporting obligation under Item
6.02 of Form 8-K.

                                     167
<PAGE>

          (b) It shall not be necessary for the Master Servicer, any
Subservicer or the Trustee to seek the consent of the Depositor or any other
party hereto to the utilization of any Subcontractor. The Master Servicer or
the Trustee, as applicable, shall promptly upon request provide to the
Depositor (or any designee of the Depositor, such as the Master Servicer or
administrator) a written description (in form and substance satisfactory to
the Depositor) of the role and function of each Subcontractor utilized by such
Person (or in the case of the Master Servicer, 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 a Reporting Subcontractor, the Master Servicer or the Trustee, as
applicable, shall cause any such Subcontractor used by such Person (or in the
case of the Master Servicer, any Subservicer) for the benefit of the Depositor
to comply with the provisions of Sections 11.07 and 11.09 of this Agreement to
the same extent as if such Subcontractor were the Master Servicer (except with
respect to the Master Servicer's duties with respect to preparing and filing
any Exchange Act Reports or as the Certifying Person) or the Trustee, as
applicable. The Master Servicer or the Trustee, as applicable, shall be
responsible for obtaining from each Subcontractor and delivering to the
Depositor and the Master Servicer, any assessment of compliance and
attestation required to be delivered by such Subcontractor under Section 11.05
and Section 11.07, in each case as and when required to be delivered.

          Section 11.09 Amendments.

          In the event the parties to this Agreement desire to further clarify
or amend any provision of this Article XI, this Agreement shall be amended to
reflect the new agreement between the parties covering matters in this Article
XI pursuant to Section 10.01, which amendment shall not require any Opinion of
Counsel or Rating Agency confirmations or the consent of any Certificateholder
or the NIM Insurer.

          If, during the period that the Depositor is required to file
Exchange Act Reports with respect to the Trust Fund, the Master Servicer is no
longer an Affiliate of the Depositor, the Depositor shall assume the
obligations and responsibilities of the Master Servicer in this Article XI
with respect to the preparation and filing of the Exchange Act Reports and/or
acting as the Certifying Person, if the Depositor has received indemnity from
such successor Master Servicer satisfactory to the Depositor, and such Master
Servicer has agreed to provide a Sarbanes-Oxley Certification to the Depositor
substantially in the form of Exhibit AA and the certifications referred to in
Section 11.07.

                                     168

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

                                          CWABS, INC.,
                                               as Depositor

                                          By:  /s/ Leon Daniels, Jr.
                                               -------------------------------
                                               Name:   Leon Daniels, Jr.
                                               Title:  Vice President

                                          COUNTRYWIDE HOME LOANS, INC.,
                                               as a Seller

                                          By:  /s/ Leon Daniels, Jr.
                                               -------------------------------
                                               Name:   Leon Daniels, Jr.
                                               Title:  Senior Vice President

                                          PARK MONACO INC.,
                                               as a Seller

                                          By:  /s/ Leon Daniels, Jr.
                                               -------------------------------
                                               Name:   Leon Daniels, Jr.
                                               Title:  Vice President

                                          PARK SIENNA LLC,
                                               as a Seller

                                          By:  /s/ Leon Daniels, Jr.
                                               -------------------------------
                                               Name:    Leon Daniels, Jr.
                                               Title:   Vice President

<PAGE>

                                          COUNTRYWIDE HOME LOANS SERVICING LP,
                                               as Master Servicer

                                          By: COUNTRYWIDE GP, INC.

                                          By:  /s/ Leon Daniels, Jr.
                                               -------------------------------
                                               Name:   Leon Daniels, Jr.
                                               Title:  Vice President

                                          THE BANK OF NEW YORK,
                                               as Trustee

\                                         By: /s/ Maria Tokarz
                                             ---------------------------------
                                               Name:  Maria Tokarz
                                               Title: Assistant Treasurer

                                         THE BANK OF NEW YORK
                                         (solely with respect to its
                                         obligations under Section 4.01(d))

                                         By: /s/ Paul Connolly
                                            ----------------------------------
                                               Name:  Paul Connolly
                                               Title: Vice President

<PAGE>

STATE OF CALIFORNIA                 )
                                    )   ss.:
COUNTY OF LOS ANGELES               )

          On this 10th day of February, 2006, before me, a notary public in
and for said State, appeared Leon Daniels, Jr., personally known to me on the
basis of satisfactory evidence to be a Senior Vice President of Countrywide
Home Loans, Inc., one of the corporations that executed the within instrument,
and also known to me to be the person who executed it on behalf of such
corporation and acknowledged to me that such corporation executed the within
instrument.

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

                                               -------------------------------
                                                        Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA                 )
                                    )   ss.:
COUNTY OF LOS ANGELES               )

          On this 10th day of February, 2006, before me, a notary public in
and for said State, appeared Leon Daniels, Jr., personally known to me on the
basis of satisfactory evidence to be a Vice President of Countrywide GP, Inc.,
the parent company of Countrywide Home Loans Servicing LP, one of the
organizations that executed the within instrument, and also known to me to be
the person who executed it on behalf of such limited partnership and
acknowledged to me that such limited partnership 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]

<PAGE>

STATE OF CALIFORNIA                 )
                                    )   ss.:
COUNTY OF LOS ANGELES               )

          On this 10th day of February, 2006, before me, a notary public in
and for said State, appeared Leon Daniels, Jr., personally known to me on the
basis of satisfactory evidence to be a Vice President of CWABS, Inc., one of
the corporations that executed the within instrument, and also known to me to
be the person who executed it on behalf of such corporation and acknowledged
to me that such corporation executed the within instrument.

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

                                               -------------------------------
                                                        Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA                 )
                                    )   ss.:
COUNTY OF LOS ANGELES               )

          On this 10th day of February, 2006, before me, a notary public in
and for said State, appeared Leon Daniels, Jr., personally known to me on the
basis of satisfactory evidence to be a Vice President of Park Monaco Inc., one
of the corporations that executed the within instrument, and also known to me
to be the person who executed it on behalf of such corporation and
acknowledged to me that such corporation executed the within instrument.

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

                                               -------------------------------
                                                        Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA                 )
                                    )   ss.:
COUNTY OF LOS ANGELES               )

          On this 10th day of February, 2006, before me, a notary public in
and for said State, appeared Leon Daniels, Jr., personally known to me on the
basis of satisfactory evidence to be a Vice President of Park Sienna 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 entity and acknowledged to me
that such entity executed the within instrument.

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

                                               -------------------------------
                                                        Notary Public

[Notarial Seal]

<PAGE>

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

          On this 10th day of February, 2006 before me, a notary public in and
for said State, appeared Maria Tokarz, personally known to me on the basis of
satisfactory evidence to be an Assistant Treasurer of The Bank of New York, a
New York banking corporation that executed the within instrument, and also
known to me to be the person who executed it on behalf of such corporation,
and acknowledged to me that such corporation executed the within instrument.

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

                                               -------------------------------
                                                        Notary Public

[Notarial Seal]

<PAGE>

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

          On this 10th day of February, 2006 before me, a notary public in and
for said State, appeared Paul Connolly, personally known to me on the basis of
satisfactory evidence to be a Vice President of The Bank of New York, a New
York banking corporation that executed the within instrument, and also known
to me to be the person who executed it on behalf of such corporation, and
acknowledged to me that such corporation executed the within instrument.

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

                                               -------------------------------
                                                        Notary Public

[Notarial Seal]

<PAGE>

                                                                  Exhibits A-1
                                                                  through A-27

                        [Exhibits A-1 through A-27 are
                photocopies of such Certificates as delivered.]

               [See appropriate documents delivered at closing.]

                                     A-1
<PAGE>

                                                                     Exhibit B

                  Exhibit B-1 and Exhibit B-2 are photocopies
                   of the Class PF and Class PV Certificates
                                 as delivered.

               [See appropriate documents delivered at closing.]

                                     B-1
<PAGE>

                                                                     Exhibit C

                  Exhibit C-1 and Exhibit C-2 are photocopies
                   of the Class CF and Class CV Certificates
                                 as delivered.

               [See appropriate documents delivered at closing.]

                                     C-1
<PAGE>

                                                                     Exhibit D

                           Exhibit D is a photocopy
                         of the Class A-R Certificate
                                 as delivered.

               [See appropriate documents delivered at closing.]

                                     D-1
<PAGE>

                                                                     Exhibit E

                           Exhibit E is a photocopy
                     of the Tax Matters Person Certificate
                                 as delivered.

               [See appropriate documents delivered at closing.]

                                     E-1
<PAGE>

                                                           Exhibit F-1 and F-2

             [Exhibit F-1 and F-2 are schedules of Mortgage Loans]

        [Delivered to Trustee at closing and on file with the Trustee.]

                                     F-1
<PAGE>

                                  EXHIBIT G-1

                   FORM OF INITIAL CERTIFICATION OF TRUSTEE

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

          Re: CWABS Asset-Backed Certificates, Series 2006-1

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of January 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, and the undersigned, as Trustee, the
undersigned, as Trustee, hereby certifies that, as to each Mortgage Loan
listed in the Mortgage Loan Schedule (other than any Mortgage Loan paid in
full or listed in the attached list of exceptions) the Trustee has received:

          (i) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of ______________,
without recourse", or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note; and

          (ii) a duly executed assignment of the Mortgage or a copy of such
assignment, in either case in the form permitted by Section 2.01 of the
Pooling and Servicing Agreement.

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

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

                                    G-1-1
<PAGE>

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

                             The Bank of New York,
                                  as Trustee

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

                                    G-1-2
<PAGE>

                                  EXHIBIT G-2

                   FORM OF INTERIM CERTIFICATION OF TRUSTEE

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

          Re: CWABS Asset-Backed Certificates, Series 2006-1

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of January 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, and the undersigned, as Trustee, the
undersigned, as Trustee, hereby certifies that[, with respect to the
Subsequent Mortgage Loans delivered in connection with the Subsequent Transfer
Agreement, dated as of __________, 2006 (the "Subsequent Transfer Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller and The Bank of
New York, as Trustee], except as listed in the following paragraph, as to each
[Initial Mortgage Loan][Subsequent Mortgage Loan] listed in the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule]
(other than any [Mortgage Loan][Loan Number and Borrower Identification
Mortgage Loan Schedule] paid in full or listed on the attached list of
exceptions) the Trustee has received:

          (i) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete
chain of endorsement from the originator to the Person endorsing the Mortgage
Note (each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and
to that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements;

          (ii) the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, the original recorded Mortgage or a
copy of such Mortgage, with recording information, and in the case of each
[Initial Mortgage Loan][Subsequent Mortgage Loan] that is a MERS Mortgage
Loan, the original Mortgage or a copy of such Mortgage, with recording
information, noting thereon the presence of the MIN of the [Initial Mortgage
Loan][Subsequent Mortgage Loan] and language indicating that the [Initial
Mortgage

                                    G-2-1
<PAGE>

Loan][Subsequent Mortgage Loan] is a MOM Loan if the [Initial Mortgage
Loan][Subsequent Mortgage Loan] is a MOM Loan, with evidence of recording
indicated thereon, or a copy of the Mortgage certified by the public recording
office in which such Mortgage has been recorded;

          (iii) the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, a duly executed assignment of the
Mortgage to "Asset-Backed Certificates, Series 2006-1, CWABS, Inc., by The
Bank of New York, a New York banking corporation, as trustee under the Pooling
and Servicing Agreement dated as of January 1, 2006, without recourse" or a
copy of such assignment, with recording information (each such assignment,
when duly and validly completed, to be in recordable form and sufficient to
effect the assignment of and transfer to the assignee thereof, under the
Mortgage to which such assignment relates);

          (iv) the original recorded assignment or assignments of the Mortgage
or a copy of such assignments, with recording information, together with all
interim recorded assignments of such Mortgage or a copy of such assignments,
with recording information (in each case noting the presence of a MIN in the
case of each MERS Mortgage Loan);

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

          (vi) the original or duplicate original lender's title policy or a
copy of lender's title policy or a printout of the electronic equivalent and
all riders thereto or, in the event such original title policy has not been
received from the insurer, any one of an original title binder, an original
preliminary title report or an original title commitment, or a copy thereof
certified by the title company, with the original policy of title insurance to
be delivered within one year of the Closing Date.

          In the event that in connection with any [Initial Mortgage
Loan][Subsequent Mortgage Loan] that is not a MERS Mortgage Loan the
applicable Seller cannot deliver the original recorded Mortgage or all interim
recorded assignments of the Mortgage satisfying the requirements of clause
(ii), (iii) or (iv), as applicable, the Trustee has received, in lieu thereof,
a true and complete copy of such Mortgage and/or such assignment or
assignments of the Mortgage, as applicable, each certified by the applicable
Seller, the applicable title company, escrow agent or attorney, or the
originator of such [Initial Mortgage Loan][Subsequent Mortgage Loan], as the
case may be, to be a true and complete copy of the original Mortgage or
assignment of Mortgage submitted for recording.

          Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
[Initial Mortgage Loan][Subsequent Mortgage Loan], and (ii) the information
set forth in items (i), (iv), (v), (vi), (viii), (ix) and (xvii) of the
definition of the "Mortgage Loan Schedule" in Section 1.01 of the Pooling and
Servicing Agreement accurately reflects information set forth in the Mortgage
File.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency,

                                    G-2-2
<PAGE>

enforceability or genuineness of any of the documents contained in each
Mortgage File of any of the [Initial Mortgage Loans][Subsequent Mortgage
Loans] identified on the [Mortgage Loan Schedule][Loan Number and Borrower
Identification Mortgage Loan Schedule] or (ii) the collectibility,
insurability, effectiveness or suitability of any such Mortgage Loan.

                                    G-2-3
<PAGE>

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

                             The Bank of New York,
                                  as Trustee

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

                                    G-2-4
<PAGE>

                                  EXHIBIT G-3

                     FORM OF DELAY DELIVERY CERTIFICATION

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

          Re: CWABS Asset-Backed Certificates, Series 2006-1

Gentlemen:

          Reference is made to the Initial Certification of Trustee relating
to the above-referenced series, with the schedule of exceptions attached
thereto, delivered by the undersigned, as Trustee, on the Closing Date in
accordance with Section 2.02 of the Pooling and Servicing Agreement dated as
of January 1, 2006 (the "Pooling and Servicing Agreement") among CWABS, Inc.,
as Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as
a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans Servicing LP,
as Master Servicer, and the undersigned, as Trustee. The undersigned hereby
certifies that [, with respect to the Subsequent Mortgage Loans delivered in
connection with the Subsequent Transfer Agreement, dated as of __________,
2006 (the "Subsequent Transfer Agreement") among CWABS, Inc., as Depositor,
Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as a Seller, Park
Sienna LLC, as a Seller and The Bank of New York, as Trustee,] as to each
Delay Delivery Mortgage Loan listed on the Schedule A attached hereto (other
than any [Initial Mortgage Loan][Subsequent Mortgage Loan] paid in full or
listed on Schedule B attached hereto) it has received:

          (1) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete
chain of endorsement from the originator to the Person endorsing the Mortgage
Note (each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and
to that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements;

          (2) in the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, a duly executed assignment of the
Mortgage to "Asset-Backed Certificates, Series 2006-1, CWABS, Inc., by The
Bank of New York, a New York banking corporation, as trustee under the Pooling
and Servicing Agreement dated as of January 1, 2006, without recourse" or a
copy of such assignment, with recording information (each such

                                    G-3-1
<PAGE>

assignment, when duly and validly completed, to be in recordable form and
sufficient to effect the assignment of and transfer to the assignee thereof,
under the Mortgage to which such assignment relates).

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

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the [Initial
Mortgage Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any
such [Initial Mortgage Loan][Subsequent Mortgage Loan].

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

                             The Bank of New York,
                                  as Trustee

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

                                    G-3-2
<PAGE>

                                  EXHIBIT G-4

                   FORM OF INITIAL CERTIFICATION OF TRUSTEE
                          (SUBSEQUENT MORTGAGE LOANS)

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

          Re: CWABS Asset-Backed Certificates, Series 2006-1

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of January 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, and the undersigned, as Trustee, the
undersigned hereby certifies that, as to each Subsequent Mortgage Loan listed
in the Loan Number and Borrower Identification Mortgage Loan Schedule (other
than any Subsequent Mortgage Loan paid in full or listed in the attached list
of exceptions) the Trustee has received:

          (1) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete
chain of endorsement from the originator to the Person endorsing the Mortgage
Note (each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and
to that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements; and

          (2) a duly executed assignment of the Mortgage or a copy of such
assignment with recording information, in either case in the form permitted by
Section 2.01 of the Pooling and Servicing Agreement.

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

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the Subsequent
Mortgage Loans identified on the Loan Number and Borrower Identification

                                    G-4-1
<PAGE>

Mortgage Loan Schedule or (ii) the collectibility, insurability, effectiveness
or suitability of any such Subsequent Mortgage Loan.

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

                             The Bank of New York,
                                  as Trustee

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

                                    G-4-2
<PAGE>

                                   EXHIBIT H

                    FORM OF FINAL CERTIFICATION OF TRUSTEE

                                    [Date]

[Depositor]

[Master Servicer]

[Sellers]

          Re: CWABS Asset-Backed Certificates, Series 2006-1

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of January 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sie-nna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, and the undersigned, as Trustee, the
undersigned, as Trustee, hereby certifies that[, with respect to the
Subsequent Mortgage Loans delivered in connection with the Subsequent Transfer
Agreement, dated as of __________, 2006 (the "Subsequent Transfer Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller and The Bank of
New York, as Trustee,] as to each [Initial Mortgage Loan][Subsequent Mortgage
Loan] listed in the [Mortgage Loan Schedule][Loan Number and Borrower
Identification Mortgage Loan Schedule] (other than any [Initial Mortgage
Loan][Subsequent Mortgage Loan] paid in full or listed on the attached
Document Exception Report) it has received:

          (i) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of
_________________ without recourse", with all intervening endorsements that
show a complete chain of endorsement from the originator to the Person
endorsing the Mortgage Note (each such endorsement being sufficient to
transfer all right, title and interest of the party so endorsing, as
noteholder or assignee thereof, in and to that Mortgage Note), or, if the
original Mortgage Note has been lost or destroyed and not replaced, an
original lost note affidavit, stating that the original Mortgage Note was lost
or destroyed, together with a copy of the related Mortgage Note and all such
intervening endorsements;

          (ii) in the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, the original recorded Mortgage or a
copy of such Mortgage, with recording information, and in the case of each
[Initial Mortgage Loan][Subsequent Mortgage Loan] that is a MERS Mortgage
Loan, the original Mortgage or a copy of such Mortgage, with recording
information, noting the presence of the MIN of the [Initial Mortgage
Loan][Subsequent Mortgage Loan] and language indicating that the [Initial
Mortgage Loan][Subsequent Mortgage Loan] is a MOM Loan if the [Initial
Mortgage Loan][Subsequent

                                     H-1
<PAGE>

Mortgage Loan] is a MOM Loan, with evidence of recording indicated thereon, or
a copy of the Mortgage certified by the public recording office in which such
Mortgage has been recorded];

          (iii) in the case of each [Initial Mortgage Loan][Subsequent
Mortgage Loan] that is not a MERS Mortgage Loan, a duly executed assignment of
the Mortgage to "Asset-Backed Certificates, Series 2006-1, CWABS, Inc., by The
Bank of New York, a New York banking corporation, as trustee under the Pooling
and Servicing Agreement dated as of January 1, 2006, without recourse" or a
copy of such assignment, with recording information (each such assignment,
when duly and validly completed, to be in recordable form and sufficient to
effect the assignment of and transfer to the assignee thereof, under the
Mortgage to which such assignment relates);

          (iv) the original recorded assignment or assignments of the Mortgage
or a copy of such assignments, with recording information, together with all
interim recorded assignments of such Mortgage or a copy of such assignments,
with recording information (in each case noting the presence of a MIN in the
case of each MERS Mortgage Loan);

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

          (vi) the original or duplicate original lender's title policy or a
copy of lender's title policy or a printout of the electronic equivalent and
all riders thereto or any one of an original title binder, an original
preliminary title report or an original title commitment, or a copy thereof
certified by the title company.

          If the public recording office in which a Mortgage or assignment
thereof is recorded has retained the original of such Mortgage or assignment,
the Trustee has received, in lieu thereof, a copy of the original Mortgage or
assignment so retained, with evidence of recording thereon, certified to be
true and complete by such recording office.

          Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v),
(vi), (viii), (ix) and (xvii) of the definition of the "Mortgage Loan
Schedule" in Section 1.01 of the Pooling and Servicing Agreement accurately
reflects information set forth in the Mortgage File.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the [Initial
Mortgage Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any
such [Initial Mortgage Loan][Subsequent Mortgage Loan].

                                     H-2
<PAGE>

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

                             The Bank of New York,
                                              as Trustee

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

                                     H-3
<PAGE>

                                   EXHIBIT I

               TRANSFER AFFIDAVIT FOR THE CLASS A-R CERTIFICATES

STATE OF                     )
                             )      ss.:
COUNTY OF                    )

          The undersigned, being first duly sworn, deposes and says as
follows:

          1. The undersigned is an officer of _______________, the proposed
Transferee of an Ownership Interest in a Class A-R Certificate (the
"Certificate") issued pursuant to the Pooling and Servicing Agreement, dated
as of January 1, 2006 (the "Agreement"), by and among CWABS, Inc., as
depositor (the "Depositor"), Countrywide Home Loans, Inc., as a Seller, Park
Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans
Servicing LP, as Master Servicer, and The Bank of New York, as Trustee.
Capitalized terms used, but not defined herein or in Exhibit 1 hereto, shall
have the meanings ascribed to such terms in the Agreement. The Transferee has
authorized the undersigned to make this affidavit on behalf of the Transferee.

          2. The Transferee is not an employee benefit plan that is subject to
Title I of ERISA or to section 4975 of the Internal Revenue Code of 1986, nor
is it acting on behalf of or with plan assets of any such plan. The Transferee
is, as of the date hereof, and will be, as of the date of the Transfer, a
Permitted Transferee. The Transferee will endeavor to remain a Permitted
Transferee for so long as it retains its Ownership Interest in the
Certificate. The Transferee is acquiring its Ownership Interest in the
Certificate for its own account.

          3. The Transferee has been advised of, and understands that (i) a
tax will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability
for the tax if the subsequent Transferee furnished to such Person an affidavit
that such subsequent Transferee is a Permitted Transferee and, at the time of
Transfer, such Person does not have actual knowledge that the affidavit is
false.

          4. The Transferee has been advised of, and understands that a tax
will be imposed on a "pass-through entity" holding the Certificate if at any
time during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the
pass-through entity does not have actual knowledge that such affidavit is
false. (For this purpose, a "pass-through entity" includes a regulated
investment company, a real estate investment trust or common trust fund, a
partnership, trust or estate, and certain cooperatives and, except as may be
provided in Treasury Regulations, persons holding interests in pass-through
entities as a nominee for another Person.)

                                    I-1-1
<PAGE>

          5. The Transferee has reviewed the provisions of Section 5.02(c) of
the Agreement (attached hereto as Exhibit 2 and incorporated herein by
reference) and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by
and to abide by the provisions of Section 5.02(c) of the Agreement and the
restrictions noted on the face of the Certificate. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.

          6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in
the Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit J-1 to the Agreement (a "Transferor Certificate") to
the effect that such Transferee has no actual knowledge that the Person to
which the Transfer is to be made is not a Permitted Transferee.

          7. The Transferee does not have the intention to impede the
assessment or collection of any tax legally required to be paid with respect
to the Class A-R Certificates.

          8. The Transferee's taxpayer identification number is _____.

          9. The Transferee is a U.S. Person as defined in Code section
7701(a)(30).

          10. The Transferee is aware that the Class A-R Certificates may be
"noneconomic residual interests" within the meaning of proposed Treasury
regulations promulgated pursuant to the Code and that the transferor of a
noneconomic residual interest will remain liable for any taxes due with
respect to the income on such residual interest, unless no significant purpose
of the transfer was to impede the assessment or collection of tax. In
addition, as the holder of a noneconomic residual interest, the Transferee may
incur tax liabilities in excess of any cash flows generated by the interest
and the Transferee hereby represents that it intends to pay taxes associated
with holding the residual interest as they become due.

          11. The Transferee has provided financial statements or other
financial information requested by the Transferor in connection with the
transfer of the Class A-R Certificates to permit the Transferor to assess the
financial capability of the Transferee to pay such taxes.

                                     * * *

                                    I-1-2
<PAGE>

          IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by
its duly authorized officer and its corporate seal to be hereunto affixed,
duly attested, this ____ day of _____________, 20__.

                             [NAME OF TRANSFEREE]

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

[Corporate Seal]

ATTEST:

-------------------------
[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 the ____________ of the Transferee, and acknowledged that he
executed the same as his free act and deed and the free act and deed of the
Transferee.

               Subscribed and sworn before me this ____ day of _______, 20__.

                                     -------------------------------------
                                                  NOTARY PUBLIC
                                     My Commission expires the ___ day of
                                                  , 20__.

                                    I-1-3
<PAGE>

                              Certain Definitions

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

          "Permitted Transferee": Any person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality
of any of the foregoing, (ii) a foreign government, International Organization
or any agency or instrumentality of either of the foregoing, (iii) an
organization (except certain farmers' cooperatives described in section 521 of
the Code) 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 Class A-R Certificate, (iv) rural electric and
telephone cooperatives described in section 1381(a)(2)(C) of the Code, (v) an
"electing large partnership" as defined in section 775 of the Code, (vi) a
Person that is not a citizen or resident of the United States, a corporation,
partnership, 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, or 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
unless such Person has furnished the transferor and the Trustee with a duly
completed Internal Revenue Service Form W-8ECI, and (vii) any other Person so
designated by the Trustee based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Class A-R Certificate to such Person may cause
any REMIC formed hereunder 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 the Federal Home Loan Mortgage Corporation, a majority
of its board of directors is not selected by such government unit.

          "Person": Any individual, corporation, limited liability company,
partnership, joint venture, bank, joint stock company, trust (including any
beneficiary thereof), unincorporated organization or government or any agency
or political subdivision thereof.

          "Transfer": Any direct or indirect transfer or sale of any Ownership
Interest in a Certificate, including the acquisition of a Certificate by the
Depositor.

          "Transferee": Any Person who is acquiring by Transfer any Ownership
Interest in a Certificate.

                                    I-1-4
<PAGE>

                       Section 5.02(c) of the Agreement

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

                    (1) Each Person holding or acquiring any Ownership
          Interest in a Class A-R Certificate shall be a Permitted Transferee
          and shall promptly notify the Trustee of any change or impending
          change in its status as a Permitted Transferee.

                    (2) Except in connection with (i) the registration of the
          Tax Matters Person Certificate in the name of the Trustee or (ii)
          any registration in the name of, or transfer of a Class A-R
          Certificate to, an affiliate of the Depositor (either directly or
          through a nominee) in connection with the initial issuance of the
          Certificates, no Ownership Interest in a Class A-R Certificate may
          be registered on the Closing Date or thereafter transferred, and the
          Trustee shall not register the Transfer of any Class A-R Certificate
          unless, the Trustee shall have been furnished with an affidavit (a
          "Transfer Affidavit") of the initial owner or the proposed
          transferee in the form attached hereto as Exhibit I.

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

                    (4) Any attempted or purported Transfer of any Ownership
          Interest in a Class A-R Certificate in violation of the provisions
          of this Section 5.02(c) shall be absolutely null and void and shall
          vest no rights in the purported Transferee. If any purported
          transferee shall become a Holder of a Class A-R Certificate in
          violation of the provisions of this Section 5.02(c), then the last
          preceding Permitted Transferee shall be restored to all rights as
          Holder thereof retroactive to the date of registration of Transfer
          of such Class A-R Certificate. The Trustee shall be under no
          liability to any Person for any registration of Transfer of a Class
          A-R Certificate that is in fact not permitted by Section 5.02(b) and
          this Section 5.02(c) or for making any payments due on such
          Certificate to the Holder thereof or taking any other action with
          respect to such Holder under the provisions of this Agreement so
          long as the Transfer was registered after receipt of the related
          Transfer Affidavit and Transferor Certificate. The Trustee shall be
          entitled but not obligated to recover from any Holder of a Class A-R
          Certificate that was in fact not a Permitted Transferee at the time
          it became a Holder or, at such subsequent time as it became other
          than a Permitted Transferee, all payments made on such Class A-R
          Certificate at and after either such time. Any such payments so
          recovered by the Trustee shall be paid and delivered by the Trustee
          to the last preceding Permitted Transferee of such Certificate.

                                    I-1-5
<PAGE>

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

          The restrictions on Transfers of a Class A-R Certificate set forth
in this section 5.02(c) shall cease to apply (and the applicable portions of
the legend on a Class A-R Certificate may be deleted) with respect to
Transfers occurring after delivery to the Trustee of an Opinion of Counsel,
which Opinion of Counsel shall not be an expense of the Trustee, the Sellers
or the Master Servicer to the effect that the elimination of such restrictions
will not cause any constituent REMIC of any REMIC formed hereunder to fail to
qualify as a REMIC at any time that the Certificates are outstanding or result
in the imposition of any tax on the Trust Fund, a Certificateholder or another
Person. Each Person holding or acquiring any ownership Interest in a Class A-R
Certificate hereby consents to any amendment of this Agreement that, based on
an Opinion of Counsel furnished to the Trustee, is reasonably necessary (a) to
ensure that the record ownership of, or any beneficial interest in, a Class
A-R Certificate is not transferred, directly or indirectly, to a Person that
is not a Permitted Transferee and (b) to provide for a means to compel the
Transfer of a Class A-R Certificate that is held by a Person that is not a
Permitted Transferee to a Holder that is a Permitted Transferee.

                                    I-1-6
<PAGE>

                                  EXHIBIT J-1

           FORM OF TRANSFEROR CERTIFICATE FOR CLASS A-R CERTIFICATES

                                     Date:

CWABS, Inc.
as Depositor
4500 Park Granada
Calabasas, California  91302

The Bank of New York
as Trustee
101 Barclay Street
New York, New York  10286

               Re:    CWABS, Inc. Asset Backed
                      Certificates, Series 2006-1

Ladies and Gentlemen:

          In connection with our disposition of the Class A-R Certificates, we
certify that we have no knowledge that the Transferee is not a Permitted
Transferee. All capitalized terms used herein but not defined herein shall
have the meanings assigned to them in the Pooling and Servicing Agreement
dated as of January 1, 2006, among CWABS, Inc., as Depositor, Countrywide Home
Loans, Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a
Seller, Countrywide Home Loans Servicing LP, as Master Servicer, and The Bank
of New York, as Trustee.

                                            Very truly yours,

                                            ----------------------------------
                                            Name of Transferor

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

                                     J-1-1
<PAGE>

                                  EXHIBIT J-2

                      FORM OF TRANSFEROR CERTIFICATE FOR
                             PRIVATE CERTIFICATES

                                     Date:

CWABS, Inc.,
        as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
        as Trustee
101 Barclay Street
New York, New York  10286

          Re:    CWABS, Inc. Asset-Backed Certificates,
                 Series 2006-1, Class [  ]

Ladies and Gentlemen:

          In connection with our disposition of the above-captioned
Certificates we certify that (a) we understand that the Certificates have not
been registered under the Securities Act of 1933, as amended (the "Act"), and
are being disposed by us in a transaction that is exempt from the registration
requirements of the Act, (b) we have not offered or sold any Certificates to,
or solicited offers to buy any Certificates from, any person, or otherwise
approached or negotiated with any person with respect thereto, in a manner
that would be deemed, or taken any other action which would result in, a
violation of Section 5 of the Act. All capitalized terms used herein but not
defined herein shall have the meanings assigned to them in the Pooling and
Servicing Agreement dated as of January 1, 2006, among CWABS, Inc., as
Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as a
Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans Servicing LP, as
Master Servicer, and The Bank of New York, as Trustee.

                                            Very truly yours,

                                            ----------------------------------
                                            Name of Transferor

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

                                    J-2-1
<PAGE>

                                   EXHIBIT K

                   FORM OF INVESTMENT LETTER (NON-RULE 144A)

                                     Date:

CWABS, Inc.,
        as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
        as Trustee
101 Barclay St., 8W
New York, New York  10286

          Re:    CWABS, Inc. Asset-Backed Certificates,
                 Series 2006-1, Class [  ]

Ladies and Gentlemen:

          In connection with our acquisition of the above-captioned
Certificates we certify that (a) we understand that the Certificates are not
being registered under the Securities Act of 1933, as amended (the "Act"), or
any state securities laws and are being transferred to us in a transaction
that is exempt from the registration requirements of the Act and any such
laws, (b) we are an "accredited investor," as defined in Regulation D under
the Act, and have such knowledge and experience in financial and business
matters that we are capable of evaluating the merits and risks of investments
in the Certificates, (c) we have had the opportunity to ask questions of and
receive answers from the Depositor concerning the purchase of the Certificates
and all matters relating thereto or any additional information deemed
necessary to our decision to purchase the Certificates, (d) either (i) we are
not an employee benefit plan that is subject to the Employee Retirement Income
Security Act of 1974, as amended, or a plan or arrangement that is subject to
Section 4975 of the Internal Revenue Code of 1986, as amended, nor are we
acting on behalf of any such plan or arrangement, or using the assets of any
such plan or arrangement to effect such acquisition or (ii) if the
Certificates have been the subject of an ERISA-Qualifying Underwriting, we are
an insurance company which is purchasing such Certificates with funds
contained in an "insurance company general account" (as such term is defined
in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
95-60")) and the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60, (e) we are acquiring the Certificates for
investment for our own account and not with a view to any distribution of such
Certificates (but without prejudice to our right at all times to sell or
otherwise dispose of the Certificates in accordance with clause (g) below),
(f) we have not offered or sold any Certificates to, or solicited offers to
buy any Certificates from, any person, or otherwise approached or negotiated
with any person with respect thereto, or taken any other action which would
result in a violation of Section 5 of the Act, and (g) we will not sell,
transfer or otherwise dispose of any

                                     K-1
<PAGE>

Certificates unless (1) such sale, transfer or other disposition is made
pursuant to an effective registration statement under the Act or is exempt
from such registration requirements, and if requested, we will at our expense
provide an opinion of counsel satisfactory to the addressees of this
Certificate that such sale, transfer or other disposition may be made pursuant
to an exemption from the Act, (2) the purchaser or transferee of such
Certificate has executed and delivered to you a certificate to substantially
the same effect as this certificate, and (3) the purchaser or transferee has
otherwise complied with any conditions for transfer set forth in the Pooling
and Servicing Agreement.

          All capitalized terms used herein but not defined herein shall have
the meanings assigned to them in the Pooling and Servicing Agreement dated as
of January 1, 2006, among CWABS, Inc., as Depositor, Countrywide Home Loans,
Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a
Seller, Countrywide Home Loans Servicing LP, as Master Servicer, and The Bank
of New York, as Trustee.

                                            Very truly yours,

                                            ----------------------------------
                                            Name of Transferee

                                            By:
                                                ------------------------------
                                                Authorized Officer

                                     K-2
<PAGE>

                                   EXHIBIT L

                           FORM OF RULE 144A LETTER

                                     Date:

CWABS, Inc.,
        as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
        as Trustee
101 Barclay Street
New York, New York  10286

          Re:    CWABS, Inc. Asset-Backed Certificates,
                 Series 2006-1, Class [  ]

Ladies and Gentlemen:

          In connection with our acquisition of the above-captioned
Certificates we certify that (a) we understand that the Certificates are not
being registered under the Securities Act of 1933, as amended (the "Act"), or
any state securities laws and are being transferred to us in a transaction
that is exempt from the registration requirements of the Act and any such
laws, (b) we have such knowledge and experience in financial and business
matters that we are capable of evaluating the merits and risks of investments
in the Certificates, (c) we have had the opportunity to ask questions of and
receive answers from the Depositor concerning the purchase of the Certificates
and all matters relating thereto or any additional information deemed
necessary to our decision to purchase the Certificates, (d) either (i) we are
not an employee benefit plan that is subject to the Employee Retirement Income
Security Act of 1974, as amended, or a plan or arrangement that is subject to
Section 4975 of the Internal Revenue Code of 1986, as amended, nor are we
acting on behalf of any such plan or arrangement, or using the assets of any
such plan or arrangement to effect such acquisition or (ii) if the
Certificates have been the subject of an ERISA-Qualifying Underwriting, we are
an insurance company which is purchasing such Certificates with funds
contained in an "insurance company general account" (as such term is defined
in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
95-60")) and the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60, (e) we have not, nor has anyone acting on
our behalf offered, transferred, pledged, sold or otherwise disposed of the
Certificates, any interest in the Certificates or any other similar security
to, or solicited any offer to buy or accept a transfer, pledge or other
disposition of the Certificates, any interest in the Certificates or any other
similar security from, or otherwise approached or negotiated with respect to
the Certificates, any interest in the Certificates or any other similar
security with, any person in any manner, or made any general solicitation by
means of general advertising or in any other manner, or taken any other
action, that would constitute a distribution of the Certificates under the
Securities Act or that would render the disposition of the

                                     L-1
<PAGE>

Certificates a violation of Section 5 of the Securities Act or require
registration pursuant thereto, nor will act, nor has authorized or will
authorize any person to act, in such manner with respect to the Certificates,
(f) we are a "qualified institutional buyer" as that term is defined in Rule
144A under the Securities Act and have completed either of the forms of
certification to that effect attached hereto as Annex 1 or Annex 2. We are
aware that the sale to us is being made in reliance on Rule 144A. We are
acquiring the Certificates for our own account or for resale pursuant to Rule
144A and further, understand that such Certificates may be resold, pledged or
transferred only (i) to a person reasonably believed to be a qualified
institutional buyer that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the resale, pledge
or transfer is being made in reliance on Rule 144A, or (ii) pursuant to
another exemption from registration under the Securities Act.

          All capitalized terms used herein but not defined herein shall have
the meanings assigned to them in the Pooling and Servicing Agreement dated as
of January 1, 2006, among CWABS, Inc., as Depositor, Countrywide Home Loans,
Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a
Seller, Countrywide Home Loans Servicing LP, as Master Servicer, and The Bank
of New York, as Trustee.

                                            Very truly yours,

                                            ----------------------------------
                                            Name of Transferee

                                            By:
                                                ------------------------------
                                                Authorized Officer

                                     L-2
<PAGE>

                                                          ANNEX 1 TO EXHIBIT L

           QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

         [For Transferees Other Than Registered Investment Companies]

          The undersigned (the "Buyer") hereby certifies as follows to the
parties listed in the Rule 144A Transferee Certificate to which this
certification relates with respect to the Certificates described therein:

                    As indicated below, the undersigned is the President,
          Chief Financial Officer, Senior Vice President or other executive
          officer of the Buyer.

                    In connection with purchases by the Buyer, the Buyer is a
          "qualified institutional buyer" as that term is defined in Rule 144A
          under the Securities Act of 1933, as amended ("Rule 144A") because
          (i) the Buyer owned and/or invested on a discretionary basis either
          at least $100,000,000 in securities or, if Buyer is a dealer, Buyer
          must own and/or invest on a discretionary basis at least $10,000,000
          in securities (except for the excluded securities referred to below)
          as of the end of the Buyer's most recent fiscal year (such amount
          being calculated in accordance with Rule 144A and (ii) the Buyer
          satisfies the criteria in the category marked below.

          ___       Corporation, etc. The Buyer is a corporation (other than a
                    bank, savings and loan association or similar
                    institution), Massachusetts or similar business trust,
                    partnership, or charitable organization described in
                    Section 501(c)(3) of the Internal Revenue Code of 1986, as
                    amended.

          ___       Bank. The Buyer (a) is a national bank or banking
                    institution organized under the laws of any State,
                    territory or the District of Columbia, the business of
                    which is substantially confined to banking and is
                    supervised by the State or territorial banking commission
                    or similar official or is a foreign bank or equivalent
                    institution, and (b) has an audited net worth of at least
                    $25,000,000 as demonstrated in its latest annual financial
                    statements, a copy of which is attached hereto.

          ___       Savings and Loan. The Buyer (a) is a savings and loan
                    association, building and loan association, cooperative
                    bank, homestead association or similar institution, which
                    is supervised and examined by a State or Federal authority
                    having supervision over any such institutions or is a
                    foreign savings and loan association or equivalent
                    institution and (b) has an audited net worth of at least
                    $25,000,000 as demonstrated in its latest annual financial
                    statements, a copy of which is attached hereto.

          ___       Broker-dealer. The Buyer is a dealer registered pursuant
                    to Section 15 of the Securities Exchange Act of 1934.

                                     L-3
<PAGE>

          ___       Insurance Company. The Buyer is an insurance company whose
                    primary and predominant business activity is the writing
                    of insurance or the reinsuring of risks underwritten by
                    insurance companies and which is subject to supervision by
                    the insurance commissioner or a similar official or agency
                    of a State, territory or the District of Columbia.

          ___       State or Local Plan. The Buyer is a plan established and
                    maintained by a State, its political subdivisions, or any
                    agency or instrumentality of the State or its political
                    subdivisions, for the benefit of its employees.

          ___       ERISA Plan. The Buyer is an employee benefit plan within
                    the meaning of Title I of the Employee Retirement Income
                    Security Act of 1974.

          ___       Investment Advisor. The Buyer is an investment advisor
                    registered under the Investment Advisors Act of 1940.

          ___       Small Business Investment Company. Buyer is a small
                    business investment company licensed by the U.S. Small
                    Business Administration under Section 301(c) or (d) of the
                    Small Business Investment Act of 1958.

          ___       Business Development Company. Buyer is a business
                    development company as defined in Section 202(a)(22) of
                    the Investment Advisors Act of 1940.

                    The term "securities" as used herein does not include (i)
          securities of issuers that are affiliated with the Buyer, (ii)
          securities that are part of an unsold allotment to or subscription
          by the Buyer, if the Buyer is a dealer, (iii) securities issued or
          guaranteed by the U.S. or any instrumentality thereof, (iv) bank
          deposit notes and certificates of deposit, (v) loan participations,
          (vi) repurchase agreements, (vii) securities owned but subject to a
          repurchase agreement and (viii) currency, interest rate and
          commodity swaps.

                    For purposes of determining the aggregate amount of
          securities owned and/or invested on a discretionary basis by the
          Buyer, the Buyer used the cost of such securities to the Buyer and
          did not include any of the securities referred to in the preceding
          paragraph, except (i) where the Buyer reports its securities
          holdings in its financial statements on the basis of their market
          value, and (ii) no current information with respect to the cost of
          those securities has been published. If clause (ii) in the preceding
          sentence applies, the securities may be valued at market. Further,
          in determining such aggregate amount, the Buyer may have included
          securities owned by subsidiaries of the Buyer, but only if such
          subsidiaries are consolidated with the Buyer in its financial
          statements prepared in accordance with generally accepted accounting
          principles and if the investments of such subsidiaries are managed
          under the Buyer's direction. However, such securities were not
          included if the Buyer is a majority-owned, consolidated subsidiary
          of another enterprise and the Buyer is not itself a reporting
          company under the Securities Exchange Act of 1934, as amended.

                    The Buyer acknowledges that it is familiar with Rule 144A
          and understands that the seller to it and other parties related to
          the Certificates are relying and

                                     L-4
<PAGE>

          will continue to rely on the statements made herein because one or
          more sales to the Buyer may be in reliance on Rule 144A.

                    Until the date of purchase of the Rule 144A Securities,
          the Buyer will notify each of the parties to which this
          certification is made of any changes in the information and
          conclusions herein. Until such notice is given, the Buyer's purchase
          of the Certificates will constitute a reaffirmation of this
          certification as of the date of such purchase. In addition, if the
          Buyer is a bank or savings and loan is provided above, the Buyer
          agrees that it will furnish to such parties updated annual financial
          statements promptly after they become available.

                                            ----------------------------------
                                                    Print Name of Buyer

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

                                            Date:
                                                ------------------------------

                                     L-5
<PAGE>

                                                          ANNEX 2 TO EXHIBIT L

           QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees That are Registered Investment Companies]

The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

          1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because Buyer is part of a
Family of Investment Companies (as defined below), is such an officer of the
Adviser.

        In connection with purchases by Buyer, the Buyer is a "qualified
           institutional buyer" as defined in SEC Rule 144A because (i) the
           Buyer is an investment company registered under the Investment
           Company Act of 1940, as amended and (ii) as marked below, the Buyer
           alone, or the Buyer's Family of Investment Companies, owned at
           least $100,000,000 in securities (other than the excluded
           securities referred to below) as of the end of the Buyer's most
           recent fiscal year. For purposes of determining the amount of
           securities owned by the Buyer or the Buyer's Family of Investment
           Companies, the cost of such securities was used, except (i) where
           the Buyer or the Buyer's Family of Investment Companies reports its
           securities holdings in its financial statements on the basis of
           their market value, and (ii) no current information with respect to
           the cost of those securities has been published. If clause (ii) in
           the preceding sentence applies, the securities may be valued at
           market.

          ___       The Buyer owned $___________ in securities (other than the
                    excluded securities referred to below) as of the end of the
                    Buyer's most recent fiscal year (such amount being
                    calculated in accordance with Rule 144A).

          ___       The Buyer is part of a Family of Investment Companies
                    which owned in the aggregate $___________ in securities
                    (other than the excluded securities referred to below) as of
                    the end of the Buyer's most recent fiscal year (such amount
                    being calculated in accordance with Rule 144A).

    The term "Family of Investment Companies" as used herein means two or more
        registered investment companies (or series thereof) that have the same
        investment adviser or investment advisers that are affiliated (by
        virtue of being majority owned subsidiaries of the same parent or
        because one investment adviser is a majority owned subsidiary of the
        other).

    The term "securities" as used herein does not include (i) securities of
        issuers that are affiliated with the Buyer or are part of the Buyer's
        Family of Investment Companies, (ii) securities issued or guaranteed
        by the U.S. or any instrumentality thereof, (iii) bank deposit notes
        and certificates of deposit, (iv) loan participations, (v) repurchase

                                     L-6
<PAGE>

        agreements, (vi) securities owned but subject to a repurchase
        agreement and (vii) currency, interest rate and commodity swaps.

    The Buyer is familiar with Rule 144A and under-stands that the parties
        listed in the Rule 144A Transferee Certificate to which this
        certification relates are relying and will continue to rely on the
        statements made herein because one or more sales to the Buyer will be
        in reliance on Rule 144A. In addition, the Buyer will only purchase
        for the Buyer's own account.

    Until the date of purchase of the Certificates, the undersigned will
        notify the parties listed in the Rule 144A Transferee Certificate to
        which this certification relates of any changes in the information and
        conclusions herein. Until such notice is given, the Buyer's purchase
        of the Certificates will constitute a reaffirmation of this
        certification by the undersigned as of the date of such purchase.

                                            ----------------------------------
                                              Print Name of Buyer or Adviser

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

                                            IF AN ADVISER:

                                            ----------------------------------
                                                    Print Name of Buyer

                                            Date:

                                     L-7
<PAGE>

                                  EXHIBIT M

                     FORM OF REQUEST FOR DOCUMENT RELEASE

Loan Information

        Name of Mortgagor:                      ------------------------------

        Master Servicer
        Loan No.:                               ------------------------------

Trustee

        Name:                                   ------------------------------

        Address:                                ------------------------------
                                                ------------------------------
                                                ------------------------------

        Trustee
        Mortgage File No.:                      ------------------------------

          The undersigned Master Servicer hereby acknowledges that it has
received from _______________________________________, as Trustee for the
Holders of Asset-Backed Certificates, Series 2006-1, the documents referred to
below (the "Documents"). All capitalized terms not otherwise defined in this
Request for Document Release shall have the meanings given them in the Pooling
and Servicing Agreement dated as of January 1, 2006 (the "Pooling and
Servicing Agreement") among CWABS, Inc., as Depositor, Countrywide Home Loans,
Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a
Seller, Countrywide Home Loans Servicing LP, as Master Servicer, and The Bank
of New York, as Trustee.

( )       Mortgage Note dated ___________, ____, in the original principal sum
          of $________, made by __________________, payable to, or endorsed to
          the order of, the Trustee.

( )       Mortgage recorded on _________________ as instrument no.
          ________________ in the County Recorder's Office of the County of
          ________________, State of _______________ in book/reel/docket
          _______________ of official records at page/image _____________.

( )       Deed of Trust recorded on _________________ as instrument no.
          ________________ in the County Recorder's Office of the County of
          ________________, State of _______________ in book/reel/docket
          _______________ of official records at page/image _____________.

( )       Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
          _________________ as instrument no. __________ in the County
          Recorder's Office of

                                     M-1
<PAGE>

          the County of __________, State of _______________ in
          book/reel/docket _______________ of official records at page/image
          _____________.

( )       Other documents, including any amendments, assignments or other
          assumptions of the Mortgage Note or Mortgage.

( )       ----------------------------------------------

( )       ----------------------------------------------

( )       ----------------------------------------------

( )       ----------------------------------------------

          The undersigned Master Servicer hereby acknowledges and agrees as
follows:

                    (1) The Master Servicer shall hold and retain possession
          of the Documents in trust for the benefit of the Trust Fund, solely
          for the purposes provided in the Pooling and Servicing Agreement.

                    (2) The Master Servicer shall not cause or knowingly
          permit the Documents to become subject to, or encumbered by, any
          claim, liens, security interest, charges, writs of attachment or
          other impositions nor shall the Master Servicer assert or seek to
          assert any claims or rights of setoff to or against the Documents or
          any proceeds thereof.

                    (3) The Master Servicer shall return each and every
          Document previously requested from the Mortgage File to the Trustee
          when the need therefor no longer exists, unless the Mortgage Loan
          relating to the Documents has been liquidated and the proceeds
          thereof have been remitted to the Certificate Account and except as
          expressly provided in the Pooling and Servicing Agreement.

                    (4) The Documents and any proceeds thereof, including any
          proceeds of proceeds, coming into the possession or control of the
          Master Servicer shall at all times be earmarked for the account of
          the Trust Fund, and the Master Servicer shall keep the Documents and
          any proceeds separate and distinct from all other property in the
          Master Servicer's possession, custody or control.

                                            [Master Servicer]

                                            By
                                                ------------------------------

                                            Its
                                                ------------------------------

                                            Date:
                                                --------------------,---------

                                     M-2
<PAGE>

                                   EXHIBIT N

                       FORM OF REQUEST FOR FILE RELEASE

                    OFFICER'S CERTIFICATE AND TRUST RECEIPT
                          ASSET-BACKED CERTIFICATES,
                                 Series 2006-1

__________________________________________ HEREBY CERTIFIES THAT HE/SHE IS AN
OFFICER OF THE MASTER SERVICER, HOLDING THE OFFICE SET FORTH BENEATH HIS/HER
SIGNATURE, AND HEREBY FURTHER CERTIFIES AS FOLLOWS:

WITH RESPECT TO THE MORTGAGE LOANS, AS THE TERM IS DEFINED IN THE POOLING AND
SERVICING AGREEMENT DESCRIBED IN THE ATTACHED SCHEDULE:

[ALL PAYMENTS OF PRINCIPAL AND INTEREST HAVE BEEN MADE.] [THE PURCHASE PRICE
FOR SUCH MORTGAGE LOANS HAS BEEN PAID.] [THE MORTGAGE LOANS HAVE BEEN
LIQUIDATED AND THE RELATED [INSURANCE PROCEEDS] [LIQUIDATION PROCEEDS] HAVE
BEEN DEPOSITED PURSUANT TO SECTION 3.13 OF THE POOLING AND SERVICING
AGREEMENT.] [A REPLACEMENT MORTGAGE LOAN HAS BEEN DELIVERED TO THE TRUSTEE IN
THE MANNER AND OTHERWISE IN ACCORDANCE WITH THE CONDITIONS SET FORTH IN
SECTIONS 2.02 AND 2.03 OF THE POOLING AND SERVICING AGREEMENT.]

LOAN NUMBER:_______________         BORROWER'S NAME:_____________

COUNTY:____________________

[For Substitution or Repurchase Only: The Master Servicer certifies that [an]
[no] opinion is required by Section 2.05 [and is attached hereto].]

I HEREBY CERTIFY THAT ALL AMOUNTS RECEIVED IN CONNECTION WITH SUCH PAYMENTS,
THAT ARE REQUIRED TO BE DEPOSITED IN THE CERTIFICATE ACCOUNT PURSUANT TO
SECTION 3.05 OF THE POOLING AND SERVICING AGREEMENT, HAVE BEEN OR WILL BE
CREDITED.

____________                                _____________________
                                            DATED:____________
//                                          VICE PRESIDENT
//                                          ASSISTANT VICE PRESIDENT

                                     N-1
<PAGE>

                                                                     Exhibit O

                           Exhibit O is a photocopy
                          of the Depository Agreement
                                 as delivered.

          [See appropriate documents delivered at closing.]

                                     O-1
<PAGE>

                                  EXHIBIT P

                     FORM OF SUBSEQUENT TRANSFER AGREEMENT

          SUBSEQUENT TRANSFER AGREEMENT, dated as of ____________, 200[_]
(this "Subsequent Transfer Agreement"), among CWABS, INC., a Delaware
corporation, as depositor (the "Depositor"), COUNTRYWIDE HOME LOANS, INC., a
New York corporation, in its capacity as a seller under the Pooling and
Servicing Agreement referred to below ("CHL"), PARK MONACO INC., a Delaware
corporation, in its capacity as a seller under the Pooling and Servicing
Agreement ("Park Monaco"), PARK SIENNA LLC, a Delaware limited liability
company, in its capacity as a seller under the Pooling and Servicing Agreement
("Park Sienna" and, together with CHL and Park Monaco, the "Sellers") and The
Bank of New York, a New York banking corporation, as trustee (the "Trustee");

          WHEREAS, the Depositor, CHL, Park Monaco, Park Sienna, the Trustee
and Countrywide Home Loans Servicing LP, as Master Servicer, have entered in
the Pooling and Servicing Agreement, dated as of January 1, 2006 (the "Pooling
and Servicing Agreement"), relating to the CWABS, Inc. Asset-Backed
Certificates, Series 2006-1 (capitalized terms not otherwise defined herein
are used as defined in the Pooling and Servicing Agreement);

          WHEREAS, Section 2.01(b) of the Pooling and Servicing Agreement
provides for the parties hereto to enter into this Subsequent Transfer
Agreement in accordance with the terms and conditions of the Pooling and
Servicing Agreement;

          NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration the receipt and adequacy of which are hereby
acknowledged the parties hereto agree as follows:

          (a) The "Subsequent Transfer Date" with respect to this Subsequent
Transfer Agreement shall be ________ __, 200[_].

          (b) The "Subsequent Transfer Date Purchase Amount" with respect to
this Subsequent Transfer Agreement shall be $_______________.

          (c) The Subsequent Mortgage Loans conveyed on the Subsequent
Transfer Date shall be subject to the terms and conditions of the Pooling and
Servicing Agreement.

          (d) Annex I hereto sets forth a list of the Mortgage Loans which are
Delay Delivery Mortgage Loans.

          (e) In case any provision of this Subsequent Transfer Agreement
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions or obligations shall not in any way
be affected or impaired thereby.

          (f) In the event of any conflict between the provisions of this
Subsequent Transfer Agreement and the Pooling and Servicing Agreement, the
provisions of the Pooling and Servicing Agreement shall prevail.

                                     P-1
<PAGE>

          (g) This Subsequent Transfer Agreement shall be governed by, and
shall be construed and enforced in accordance with the laws of the State of
New York.

          (h) The Subsequent Transfer Agreement may be executed in one or more
counterparts, each of which so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.

                                     P-2
<PAGE>

          IN WITNESS WHEREOF, the parties to this Subsequent Transfer
Agreement have caused their names to be signed hereto by their respective
officers thereunto duly authorized as of the day and year first above written.

                                 CWABS, INC.,
                                  as Depositor

                                 By: __________________________________
                                    Name:
                                    Title:

                                 COUNTRYWIDE HOME LOANS, INC.,
                                  as a Seller

                                 By: __________________________________
                                    Name:
                                    Title:

                                 PARK MONACO INC.,
                                  as a Seller

                                 By: __________________________________
                                    Name:
                                    Title:

                                 PARK SIENNA LLC,
                                  as a Seller

                                 By: __________________________________
                                    Name:
                                    Title:

                                     P-3
<PAGE>

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

                                 By:___________________________________
                                    Name:
                                    Title:

                                     P-4
<PAGE>

                                                                       Annex I

 Mortgage Loans for which All or a Portion of a Related Mortgage File is not
     Delivered to the Trustee on or prior to the Subsequent Transfer Date

                                     P-5
<PAGE>

                                   EXHIBIT Q

                           FORM OF CORRIDOR CONTRACT

               [See appropriate documents delivered at closing.]

                                    Q-1-1
<PAGE>

                                   EXHIBIT R

                                  [Reserved.]

                                     R-1
<PAGE>

                                 EXHIBIT S-1

                FORM OF CORRIDOR CONTRACT ASSIGNMENT AGREEMENT

                     [See document delivered at closing.]

                                    S-1-1
<PAGE>

                                  EXHIBIT S-2

              FORM OF CORRIDOR CONTRACT ADMINISTRATION AGREEMENT

                     [See document delivered at closing.]

                                    S-2-1
<PAGE>

                                   EXHIBIT T

               OFFICER'S CERTIFICATE WITH RESPECT TO PREPAYMENTS

                          ASSET-BACKED CERTIFICATES,
                                 Series 2006-1

                                    [Date]

Via Facsimile

The Bank of New York,
        as Trustee
101 Barclay Street
New York, New York  10286

Dear Sir or Madam:

          Reference is made to the Pooling and Servicing Agreement, dated as
of January 1, 2006, (the "Pooling and Servicing Agreement") among CWABS, Inc.,
as Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as
a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans Servicing LP,
as Master Servicer, and The Bank of New York, as Trustee. Capitalized terms
used herein shall have the meanings ascribed to such terms in the Pooling and
Servicing Agreement.

          __________________ hereby certifies that he/she is a Servicing
Officer, holding the office set forth beneath his/her name and hereby further
certifies as follows:

          With respect to the Distribution Date in _________ 20[ ] and each
Mortgage Loan set forth in the attached schedule:

          1. A Principal Prepayment in full or in part was received during the
related Prepayment Period;

          2. Any Prepayment Charge due under the terms of the Mortgage Note
with respect to such Principal Prepayment was or was not, as indicated on the
attached schedule using "Yes" or "No", received from the Mortgagor and
deposited in the Certificate Account;

          3. As to each Mortgage Loan set forth on the attached schedule for
which all or part of the Prepayment Charge required in connection with the
Principal Prepayment was waived by the Master Servicer, such waiver was, as
indicated on the attached schedule, based upon:

                    (i) the Master Servicer's determination that such waiver
          would maximize recovery of Liquidation Proceeds for such Mortgage
          Loan, taking into account the value of such Prepayment Charge, or

                                     T-1
<PAGE>

                    (ii)(A) the enforceability thereof is limited (1) by
          bankruptcy, insolvency, moratorium, receivership, or other similar
          law relating to creditors' rights generally or (2) due to
          acceleration in connection with a foreclosure or other involuntary
          payment, or (B) the enforceability is otherwise limited or
          prohibited by applicable law; and

          4. We certify that all amounts due in connection with the waiver of
a Prepayment Charge inconsistent with clause 3 above which are required to be
deposited by the Master Servicer pursuant to Section 3.19 of the Pooling and
Servicing Agreement, have been or will be so deposited.

                                               COUNTRYWIDE HOME LOANS, INC.,
                                                 as Master Servicer

                                               By:____________________________
                                                  Name:
                                                  Title:

                                     T-2
<PAGE>

  SCHEDULE OF MORTGAGE LOANS FOR WHICH A PREPAYMENT WAS RECEIVED DURING THE
                          RELATED PREPAYMENT PERIOD

Loan Number            Clause 2:  Yes/No            Clause 3:  (i) or (ii)
_____________________  ___________________________  ___________________________
_____________________  ___________________________  ___________________________
_____________________  ___________________________  ___________________________
_____________________  ___________________________  ___________________________
_____________________  ___________________________  ___________________________
_____________________  ___________________________  ___________________________
_____________________  ___________________________  ___________________________
_____________________  ___________________________  ___________________________
_____________________  ___________________________  ___________________________

                                     T-3
<PAGE>

                                   EXHIBIT U

                             FORM OF SWAP CONTRACT

               [See appropriate documents delivered at closing.]

                                     U-1
<PAGE>

                                  EXHIBIT V-1

                  FORM OF SWAP CONTRACT ASSIGNMENT AGREEMENT

                     [See document delivered at closing.]

                                    V-1-1
<PAGE>

                                  EXHIBIT V-2

                FORM OF SWAP CONTRACT ADMINISTRATION AGREEMENT

                     [See document delivered at closing.]

                                    V-2-1
<PAGE>

                                  EXHIBIT W

                           FORM OF MONTHLY STATEMENT

                          [On file with the Trustee]

                                      W-1
<PAGE>

                                  EXHIBIT X-1

                       FORM OF PERFORMANCE CERTIFICATION
                                 (Subservicer)

                          (On file with the Trustee)

                                    X-1-1
<PAGE>

                                  EXHIBIT X-2

                       FORM OF PERFORMANCE CERTIFICATION
                                   (Trustee)

                          (On file with the Trustee)

                                    X-2-1
<PAGE>

                                   EXHIBIT Y

                                    FORM OF
                     SERVICING CRITERIA TO BE ADDRESSED IN
                      ASSESSMENT OF COMPLIANCE STATEMENT

          The assessment of compliance to be delivered by [the Master
Servicer] [Trustee] [Name of Subservicer] shall address, at a minimum, the
criteria identified as below as "Applicable Servicing Criteria":

<TABLE>
<CAPTION>

------------------------------------------------------------------------------- ------------------
                           Servicing Criteria                                      Applicable
                                                                                    Servicing
                                                                                    Criteria
------------------------------------------------------------------------------- ------------------
   Reference                             Criteria
<S>               <C>                                                           <C>
----------------- ------------------------------------------------------------- ------------------
                             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.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
1122(d)(1)(iii)   Any requirements in the transaction agreements to maintain a
                  back-up servicer for the mortgage loans are maintained.
-----------------                                                               ------------------
1122(d)(1)(iv)    A fidelity bond and errors and omissions policy is in effect
                  on the party participating in the servicing function
                  throughout the reporting period in the amount of coverage
                  required by and otherwise in accordance with the terms of
                  the transaction agreements.
-----------------                                                               ------------------
                            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.
-----------------                                                               ------------------
1122(d)(2)(ii)    Disbursements made via wire transfer on behalf of an obligor
                  or to an investor are made only by authorized personnel.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
                  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
1122(d)(2)(iv)    forth in the transaction agreements.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
1122(d)(2)(vi)    Unissued checks are safeguarded so as to prevent
                  unauthorized access.
-----------------                                                               ------------------
</TABLE>

                                     Y-1
<PAGE>

<TABLE>
<CAPTION>

<S>               <C>                                                           <C>
------------------------------------------------------------------------------- ------------------
                           Servicing Criteria                                      Applicable
                                                                                    Servicing
                                                                                    Criteria
------------------------------------------------------------------------------- ------------------
   Reference                             Criteria
----------------- ------------------------------------------------------------- ------------------
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.
-----------------                                                               ------------------
                            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.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
                  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
1122(d)(3)(iii)   transaction agreements.
-----------------                                                               ------------------
                  Amounts remitted to investors per the investor reports agree
                  with cancelled checks, or other form of payment,
1122(d)(3)(iv)    or custodial bank statements.
-----------------                                                               ------------------
                                 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.
-----------------                                                               ------------------
                  Mortgage loan and related documents are safeguarded as
1122(d)(4)(ii)    required by the transaction agreements
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
</TABLE>

                                     Y-2
<PAGE>

<TABLE>
<CAPTION>

<S>               <C>                                                           <C>
------------------------------------------------------------------------------- ------------------
                           Servicing Criteria                                      Applicable
                                                                                    Servicing
                                                                                    Criteria
------------------------------------------------------------------------------- ------------------
   Reference                             Criteria
----------------- ------------------------------------------------------------- ------------------
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).
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
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.
-----------------                                                               ------------------
                  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
1122(d)(4)(xiii)  days specified in the transaction agreements.
-----------------                                                               ------------------
1122(d)(4)(xiv)   Delinquencies, charge-offs and uncollectible accounts are
                  recognized and recorded in accordance with the transaction
                  agreements.
-----------------                                                               ------------------
                  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
1122(d)(4)(xv)    transaction agreements.
----------------- ------------------------------------------------------------- ------------------

----------------- ------------------------------------------------------------- ------------------
</TABLE>

                                            [NAME OF MASTER SERVICER]
                                            [NAME OF TRUSTEE]
                                            [NAME OF SUBSERVICER]

                                            Date:  _________________________

                                            By:  ___________________________
                                            Name:
                                            Title:

                                     Y-3
<PAGE>

                                   EXHIBIT Z

                      [FORM OF] LIST OF ITEM 1119 PARTIES

                          ASSET BACKED CERTIFICATES,
                                Series 200_-__

                                    [Date]

Party                             Contact Information
________________________________  _____________________________________________
________________________________  _____________________________________________
________________________________  _____________________________________________
________________________________  _____________________________________________
________________________________  _____________________________________________
________________________________  _____________________________________________
________________________________  _____________________________________________
________________________________  _____________________________________________
________________________________  _____________________________________________

                                     Z-1
<PAGE>

                                  EXHIBIT AA

                                    FORM OF
                         SARBANES-OXLEY CERTIFICATION
                         (Replacement Master Servicer)

                          (On file with the Trustee)

                                     AA-1
<PAGE>

                                  SCHEDULE I

           PREPAYMENT CHARGE SCHEDULE AND PREPAYMENT CHARGE SUMMARY

        [Delivered to Trustee at closing and on file with the Trustee.]

                                    S-1-1
<PAGE>

                                  SCHEDULE II

                              COLLATERAL SCHEDULE

Characteristic                           Applicable   Loan Group 1  Loan Group 2
                                           Section
--------------------------------------- ------------- ------------- ------------
Single-Family Detached Dwellings         2.03(b)(32)     72.84%        67.70%
Two- to Four-Family Dwellings            2.03(b)(32)     5.75%          7.46%
Low-Rise Condominium Units               2.03(b)(32)     4.93%          5.65%
High-Rise Condominium Units              2.03(b)(32)     0.35%          0.56%
Manufactured Housing                     2.03(b)(32)     0.00%          0.00%
PUDs                                     2.03(b)(32)     16.13%        18.64%
Earliest Origination Date                2.03(b)(33)    6/1/2004      3/28/2005
Prepayment Penalty                       2.03(b)(35)     89.10%        79.39%
Investor Properties                      2.03(b)(36)     2.06%          3.87%
Primary Residences                       2.03(b)(36)     97.13%        95.06%
Lowest Current Mortgage Rate             2.03(b)(48)     5.500%        4.950%
Highest Current Mortgage Rate            2.03(b)(48)    11.875%        12.000%
Weighted Average Current Mortgage Rate   2.03(b)(48)     7.151%        7.516%
Lowest Gross Margin                      2.03(b)(51)      N/A          4.250%
Highest Gross Margin                     2.03(b)(51)      N/A          10.070%
Weighted Average Gross Margin            2.03(b)(51)      N/A          6.640%
Date on or before which each Initial
Mortgage Loan has a Due Date             2.03(b)(52)    7/1/2004      4/1/2005

<TABLE>
<CAPTION>

                                   Adjustable Rate
                                Mortgage Loans (other
                                   than Two-Year,         Two-Year     Three-Year     Five-Year
                                   Three-Year and          Hybrid        Hybrid         Hybrid
                  Applicable      Five-Year Hybrid        Mortgage      Mortgage       Mortgage
Adjustment Date    Section         Mortgage Loans)         Loans          Loans         Loans
---------------- ------------- ------------------------ ------------- -------------- -------------
<S>              <C>                  <C>                 <C>           <C>           <C>
  Latest Next
Adjustment Date  2.03(b)(34)          7/1/2006            2/1/2008      2/1/2009      11/1/2010
</TABLE>

                                    S-II-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00098-of-00352.parquet"}]]