Document:

Exhibit 10.1

                                                                  EXECUTION COPY

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                          SALE AND SERVICING AGREEMENT

                                      among

                          USAA AUTO OWNER TRUST 2006-3,
                                   as Issuer,

                              USAA ACCEPTANCE, LLC,
                                  as Depositor,

                                       and

                           USAA FEDERAL SAVINGS BANK,
                             as Seller and Servicer

                           Dated as of August 1, 2006

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                                Table of Contents
                                                                          Page
                                                                          ----

ARTICLE I      DEFINITIONS AND USAGE.........................................1

ARTICLE II     TRUST PROPERTY................................................1

  SECTION 2.1  Conveyance of Trust Property; Intent of the Parties...........1
  SECTION 2.2  Representations and Warranties of the Depositor
               regarding the Receivables.....................................2
  SECTION 2.3  Repurchase upon Breach........................................5
  SECTION 2.4  Custody of Receivable Files...................................5
  SECTION 2.5  Duties of Servicer as Custodian...............................6
  SECTION 2.6  Instructions; Authority to Act................................7
  SECTION 2.7  Custodian's Indemnification...................................7
  SECTION 2.8  Effective Period and Termination..............................7

ARTICLE III    ADMINISTRATION AND SERVICING OF RECEIVABLES AND TRUST
               PROPERTY......................................................8

  SECTION 3.1  Duties of Servicer............................................8
  SECTION 3.2  Collection of Receivable Payments.............................8
  SECTION 3.3  Realization Upon Receivables..................................9
  SECTION 3.4  Allocations of Collections...................................10
  SECTION 3.5  Maintenance of Security Interests in Financed Vehicles.......10
  SECTION 3.6  Covenants of Servicer........................................10
  SECTION 3.7  Purchase of Receivables Upon Breach..........................10
  SECTION 3.8  Servicer Fees................................................11
  SECTION 3.9  Servicer's Certificate.......................................11
  SECTION 3.10 Annual Statement as to Compliance; Item 1122 Servicing
               Criteria Assessment; Notice of Event of Servicing
               Termination..................................................11
  SECTION 3.11 Annual Independent Certified Public Accountant's Report......13
  SECTION 3.12 Access to Certain Documentation and Information
               Regarding Receivables........................................13
  SECTION 3.13 Servicer Expenses............................................13
  SECTION 3.14 Insurance....................................................13

ARTICLE IV     DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO NOTEHOLDERS AND
               CERTIFICATEHOLDERS...........................................14

  SECTION 4.1  Accounts.....................................................14
  SECTION 4.2  Collections..................................................15
  SECTION 4.3  Application of Collections...................................15
  SECTION 4.4  Advances.....................................................16

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  SECTION 4.5  Additional Deposits..........................................16
  SECTION 4.6  Distributions................................................17
  SECTION 4.7  Reserve Account..............................................20
  SECTION 4.8  Net Deposits.................................................22
  SECTION 4.9  Statements to Noteholders and Certificateholders.............22

ARTICLE V      THE DEPOSITOR................................................25

  SECTION 5.1  Representations, Warranties and Covenants of Depositor.......25
  SECTION 5.2  Liability of Depositor; Indemnities..........................26
  SECTION 5.3  Merger or Consolidation of, or Assumption of the
               Obligations of Depositor.....................................27
  SECTION 5.4  Limitation on Liability of Depositor and Others..............27
  SECTION 5.5  Depositor May Own Notes or Certificates......................27

ARTICLE VI     THE SERVICER.................................................27

  SECTION 6.1  Representations of Servicer..................................27
  SECTION 6.2  Indemnities of Servicer......................................29
  SECTION 6.3  Merger or Consolidation of, or Assumption of the
               Obligations of Servicer......................................30
  SECTION 6.4  Limitation on Liability of Servicer and Others...............30
  SECTION 6.5  Delegation of Duties.........................................31
  SECTION 6.6  Servicer Not to Resign as Servicer...........................31
  SECTION 6.7  Servicer May Own Notes or Certificates.......................31

ARTICLE VII    SERVICING TERMINATION........................................32

  SECTION 7.1  Events of Servicing Termination..............................32
  SECTION 7.2  Appointment of Successor Servicer............................33
  SECTION 7.3  Repayment of Advances........................................34
  SECTION 7.4  Notification to Noteholders and Certificateholders...........34
  SECTION 7.5  Waiver of Past Events of Servicing Termination...............35

ARTICLE VIII   TERMINATION..................................................35

  SECTION 8.1  Optional Purchase of All Receivables.........................35
  SECTION 8.2  Succession Upon Satisfaction and Discharge of Indenture......35

ARTICLE IX     MISCELLANEOUS PROVISIONS.....................................36

  SECTION 9.1  Amendment....................................................36
  SECTION 9.2  Protection of Title to Trust Property........................37
  SECTION 9.3  GOVERNING LAW................................................39
  SECTION 9.4  Notices......................................................39

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  SECTION 9.5  Severability of Provisions...................................39
  SECTION 9.6  Assignment...................................................40
  SECTION 9.7  Further Assurances...........................................40
  SECTION 9.8  No Waiver; Cumulative Remedies...............................40
  SECTION 9.9  Third-Party Beneficiaries....................................40
  SECTION 9.10 Actions by Noteholders or Certificateholders.................40
  SECTION 9.11 Limitation of Liability of Owner Trustee and Indenture
               Trustee......................................................41
  SECTION 9.12 Savings Clause...............................................41

ARTICLE X      Exchange Act Reporting.......................................41

  SECTION 10.1 Further Assurances...........................................41
  SECTION 10.2 Form 10-D Filings............................................42
  SECTION 10.3 Form 8-K Filings.............................................42
  SECTION 10.4 Form 10-K Filings............................................42
  SECTION 10.5 Report on Assessment of Compliance and Attestation...........43
  SECTION 10.6 Back-up Sarbanes-Oxley Certification.........................43
  SECTION 10.7 Use of Subcontractors........................................44
  SECTION 10.8 Representations and Warranties...............................44
  SECTION 10.9 Indemnification..............................................45
  SECTION 10.10Amendments...................................................46

Schedule A     Schedule of Receivables.....................................A-1
Schedule B-1   Location of Receivable Files ...............................B-1
Schedule B-2   Location of Lien Certificates ..............................B-2
Appendix A     Definitions and Usage..............................Appendix A-1
Appendix B     Item 1119 Parties..................................Appendix B-1
Appendix C     Minimum Servicing Criteria Assessment..............Appendix C-1
Appendix D     Performance Certification (Trustee/Reporting
               Subcontractor).....................................Appendix D-1
Appendix E     Performance Certification (Servicer)...............Appendix E-1

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      SALE AND SERVICING AGREEMENT, dated as of August 1, 2006 (as from time to
time amended, supplemented or otherwise modified and in effect, this
"Agreement"), among USAA AUTO OWNER TRUST 2006-3 (the "Issuer"), a Delaware
statutory trust, USAA ACCEPTANCE, LLC, a Delaware limited liability company (the
"Depositor") and USAA FEDERAL SAVINGS BANK, a federally chartered savings
association, as seller of the Receivables to the Depositor (in such capacity,
the "Seller") and servicer (in such capacity, the "Servicer").

      WHEREAS, the Issuer desires to purchase a portfolio of receivables and
related property consisting of motor vehicle installment loan contracts
originated by the Seller in the ordinary course of its business;

      WHEREAS, the Seller is concurrently selling such portfolio of receivables
and related property to the Depositor pursuant to the Receivables Purchase
Agreement, and the Depositor is willing to sell such portfolio of receivables
and related property to the Issuer; and

      WHEREAS, the Servicer is willing to service such receivables on behalf of
the Issuer.

      NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be
legally bound, agree as follows:

                                   ARTICLE I

                              DEFINITIONS AND USAGE

      Except as otherwise specified herein or as the context may otherwise
require, capitalized terms used but not otherwise defined herein are defined in
Appendix A hereto, which also contains rules as to usage that shall be
applicable herein.

                                   ARTICLE II

                                 TRUST PROPERTY

      SECTION 2.1 Conveyance of Trust Property; Intent of the Parties. In
consideration of the Issuer's delivery to, or upon the order of, the Depositor
of the Notes and the Certificates, the Depositor does hereby irrevocably sell,
transfer, assign and otherwise convey to the Issuer (i) without recourse
(subject to the obligations herein) all right, title and interest of the
Depositor, whether now owned or hereafter acquired, in and to the Trust Property
and (ii) funds in the amount of the Reserve Initial Deposit. The sale, transfer,
assignment and conveyance made hereunder shall not constitute and is not
intended to result in an assumption by the Issuer of any obligation of the
Depositor to the Obligors or any other Person in connection with the Receivables
and the other Trust Property or any agreement, document or instrument related
thereto. The Depositor and the Issuer intend that the sale, transfer, assignment
and conveyance of the Trust Property pursuant to this Section 2.1 shall be a
sale, and not a secured borrowing, for accounting purposes.

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      SECTION 2.2 Representations and Warranties of the Depositor regarding the
Receivables. The Depositor makes the following representations and warranties
with respect to the Receivables, on which the Issuer relies in purchasing the
Receivables and pledging the same to the Indenture Trustee. Such representations
and warranties speak as of the execution and delivery of this Agreement and as
of the Transfer Date, but shall survive the sale, transfer and assignment of the
Receivables by the Depositor to the Issuer and the pledge of the Receivables by
the Issuer to the Indenture Trustee pursuant to the Indenture.

      (i)   Schedule of Receivables. The information set forth in Schedule A to
            this Agreement with respect to each Receivable is true and correct
            in all material respects, and no selection procedures adverse to the
            Securityholders have been used in selecting the Receivables from all
            receivables owned by the Seller which meet the selection criteria
            specified herein.

      (ii)  No Sale or Transfer. No Receivable has been sold, transferred,
            assigned or pledged by the Depositor to any Person other than the
            Issuer.

      (iii) Good Title. Immediately prior to the transfer and assignment of the
            Receivables to the Issuer herein contemplated, the Depositor had
            good and marketable title to each Receivable free and clear of all
            Liens and rights of others; and, immediately upon the transfer
            thereof, the Issuer, has either (i) good and marketable title to
            each Receivable, free and clear of all of all Liens and rights of
            others, and the transfer has been perfected under applicable law or
            (ii) a first priority perfected security interest in each
            Receivable.

      (iv)  Receivable Files. The Receivable Files shall be kept at one or more
            of the locations specified in Schedule B-1 hereto; provided, that
            the Lien Certificates shall be kept at one or more of the locations
            specified in Schedule B-2 hereto.

      (v)   Characteristics of Receivables. Each Receivable (a) has been
            originated for the retail financing of a Financed Vehicle by an
            Obligor located in one of the States of the United States or the
            District of Columbia; (b) contains customary and enforceable
            provisions such that the rights and remedies of the holder thereof
            are adequate for realization against the collateral of the benefits
            of the security; and (c) provides for fully amortizing level
            scheduled monthly or semi-monthly payments (provided that the
            payment in the last month in the life of the Receivable may be
            different from the level scheduled payment) and for accrual of
            interest at a fixed rate according to the simple interest method.

      (vi)  Compliance with Law. Each Receivable and each sale of the related
            Financed Vehicle complied at the time it was originated or made, and
            complies on and after the Cut-off Date, in all material respects
            with all requirements of applicable federal, state, and local laws,
            and regulations thereunder, including usury laws, the Federal
            Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair
            Credit Reporting Act, the Federal Trade Commission Act, the
            Magnuson-Moss Warranty Act, Federal Reserve Board Regulations B and
            Z, state adaptations of the National Consumer Act and of the Uniform
            Consumer Credit Code, and any

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            other consumer credit, equal opportunity, and disclosure laws
            applicable to such Receivable and sale.

      (vii) Binding Obligation. Each Receivable constitutes the legal, valid,
            and binding payment obligation in writing of the Obligor,
            enforceable by the holder thereof in all material respects in
            accordance with its terms, subject, as to enforcement, to applicable
            bankruptcy, insolvency, reorganization, liquidation and other
            similar laws and equitable principles relating to or affecting the
            enforcement of creditors' rights.

      (viii) No Government Obligor. No Receivable is due from the United States
            of America or any state or from any agency, department,
            instrumentality or political subdivision of the United States of
            America or any state or local municipality and no Receivable is due
            from a business except to the extent that such receivable has a
            personal guaranty.

      (ix)  Security Interest in Financed Vehicle. Immediately prior to the sale
            and assignment thereof to the Issuer as herein contemplated, each
            Receivable was secured by a validly perfected first priority
            security interest in the Financed Vehicle in favor of the Seller as
            secured party or all necessary and appropriate action with respect
            to such Receivable had been taken to perfect a first priority
            security interest in the related Financed Vehicle in favor of the
            Seller as secured party, which security interest is assignable and
            has been so assigned by the Seller to the Depositor and by the
            Depositor to the Issuer.

      (x)   Receivables in Force. No Receivable has been satisfied,
            subordinated, or rescinded, nor has any Financed Vehicle been
            released from the Lien granted by the related Receivable in whole or
            in part.

      (xi)  No Waiver. No provision of a Receivable has been waived in such a
            manner that such Receivable fails either to meet all of the
            representations and warranties made by the Depositor herein with
            respect thereto pursuant to this Section 2.2.

      (xii) No Amendments. No Receivable has been amended except pursuant to
            instruments included in the Receivable Files and no such amendment
            has caused such Receivable either to fail to meet all of the
            representations and warranties made by the Depositor herein with
            respect thereto pursuant to this Section 2.2.

      (xiii) No Defenses. As of the Cut-off Date, there are no rights of
            rescission, setoff, counterclaim, or defense, and the Depositor has
            no knowledge of the same being asserted or threatened, with respect
            to any Receivable.

      (xiv) No Liens. As of the Cut-off Date, the Depositor has no knowledge of
            any Liens, claims that have been filed, including Liens for work,
            labor, materials or unpaid taxes relating to a Financed Vehicle,
            that would be Liens prior to, or equal or coordinate with, the Lien
            granted by the Receivable.

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      (xv)  No Default. Except for payment defaults continuing for a period of
            not more than thirty (30) days as of the Cut-off Date, the Depositor
            has no knowledge that a default, breach, violation, or event
            permitting acceleration under the terms of any Receivable exists;
            the Depositor has no knowledge that a continuing condition that with
            notice or lapse of time would constitute a default, breach,
            violation, or event permitting acceleration under the terms of any
            Receivable exists; and the Depositor has not waived any of the
            foregoing.

      (xvi) Insurance. Each Receivable requires that the Obligor thereunder
            obtain comprehensive and collision insurance covering the Financed
            Vehicle.

      (xvii) Lawful Assignment. No Receivable has been originated in, or is
            subject to the laws of, any jurisdiction under which the sale,
            transfer, and assignment of such Receivable under the Agreement is
            unlawful, void or voidable.

      (xviii) All Filings Made. No filings (other than UCC filings which have
            been made) or other actions are necessary in any jurisdiction to
            give the Issuer a first priority perfected security interest in the
            Receivables and to give the Indenture Trustee a first priority
            perfected security interest in the Receivables.

      (xix) One Original. With respect to any Receivable for which an original
            executed copy exists, there is no more than one original executed
            copy of such Receivable which does not have any marks or notations
            indicating that it has been pledged, assigned or otherwise conveyed
            to any Person other than the Seller and which, immediately prior to
            the delivery thereof to the Servicer, as custodian for the Indenture
            Trustee, was in the possession of the Seller.

      (xx)  Security. Each Receivable is secured by a new or used automobile or
            light-duty truck.

      (xxi) Maturity of Receivables. Each Receivable has a remaining maturity,
            as of the Cut-off Date, of not less than 8 months and not more than
            72 months and an original maturity of not less than 9 months and not
            more than 72 months. No Receivable has a scheduled maturity later
            than September 15, 2012.

      (xxii) Annual Percentage Rate. Each Receivable is a fully-amortizing
            simple interest contract which bears interest at a fixed rate per
            annum and which provides for level scheduled monthly or semi-monthly
            payments (except for the last payment, which may be minimally
            different from the level payments) over its respective remaining
            term, is not secured by any interest in real estate.

      (xxiii) No Repossessions. Each Receivable is secured by a Financed Vehicle
            that, as of the Cut-off Date, has not been repossessed without
            reinstatement of such Receivable.

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      (xxiv) Obligor Not Subject to Bankruptcy Proceedings. Each Receivable has
            been entered into by an Obligor who has not been identified on the
            computer files of the Seller as being a debtor in any bankruptcy
            proceeding as of the Cut-off Date.

      (xxv) No Overdue Payments. No Receivable has any payment that is more than
            thirty (30) days past due as of the Cut-off Date.

      (xxvi) Tangible Chattel Paper. The Receivables constitute "tangible
            chattel paper" within the meaning of UCC Section 9-102.

      (xxvii) Remaining Principal Balance. Each Receivable had a remaining
            principal balance, as of the Cut-off Date, of at least $800.00.

      (xxviii) Filing Statement Language. The financing statements referenced in
            paragraph (xviii) above, will contain a statement to the following
            effect "A purchase of or security interest in any collateral
            described in this financing statement will violate the rights of the
            Secured Party".

      SECTION 2.3 Repurchase upon Breach. Each of the Depositor, the Servicer,
the Issuer and the Owner Trustee shall inform the other parties to this
Agreement promptly, in writing, upon the discovery by it of any breach of the
Depositor's representations and warranties pursuant to Section 2.2. Unless the
breach shall have been cured by the last day of the second Collection Period
following written notice to the Indenture Trustee of such breach, the Indenture
Trustee shall enforce the obligation of the Depositor under this Section 2.3 to
repurchase any Receivable, the Issuer's interest in which is materially and
adversely affected by the breach as of such last day (or, at the Depositor's
option, the last day of the first Collection Period following the discovery). In
consideration of the purchase of the Receivable, the Depositor shall remit the
Purchase Amount (less any Liquidation Proceeds deposited, or to be deposited, in
the Collection Account with respect to such Receivable pursuant to Section 3.3),
in the manner specified in Section 4.5. The sole remedy of the Issuer, the Owner
Trustee, the Indenture Trustee, the Noteholders or the Certificateholders with
respect to a breach of the Depositor's representations and warranties pursuant
to Section 2.2 shall be to require the Depositor to repurchase such Receivables
pursuant to this Section 2.3. The obligation of the Depositor to repurchase
under this Section 2.3 shall not be solely dependent upon the actual knowledge
of the Depositor of any breached representation or warranty. Neither the Owner
Trustee nor the Indenture Trustee shall have any duty to conduct an affirmative
investigation as to the occurrence of any condition requiring the repurchase of
any Receivable pursuant to this Section 2.3 or the eligibility of any Receivable
for purposes of this Agreement. Notwithstanding anything herein to the contrary,
the Depositor shall only be obligated to pay such Purchase Amount and repurchase
the related Receivable to the extent it receives the Purchase Amount from the
Seller pursuant to Section 7.02 of the Receivables Purchase Agreement.

      SECTION 2.4 Custody of Receivable Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Issuer, upon
the execution and delivery of this Agreement, hereby revocably appoints the
Servicer, and the Servicer hereby accepts such appointment, to act as the agent
of the Issuer and the Indenture Trustee as custodian of the

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following documents or instruments, which are hereby constructively delivered to
the Indenture Trustee, as pledgee of the Issuer pursuant to the Indenture, with
respect to each Receivable:

            (i) The original executed Receivable or, if no such original exists,
      a copy thereof.

            (ii) The original credit application fully executed by the Obligor
      or a photocopy thereof or a record thereof on a computer file, diskette or
      on microfiche.

            (iii) The notice of recorded Lien or such documents that the
      Servicer or the Depositor shall keep on file, in accordance with its
      customary procedures, evidencing the first priority perfected security
      interest of the Seller in the Financed Vehicle.

            (iv) Any and all other documents (including any computer file,
      diskette or microfiche) that the Servicer or the Seller shall keep on
      file, in accordance with its customary procedures, relating to a
      Receivable, an Obligor (to the extent relating to a Receivable), or a
      Financed Vehicle.

      The Servicer acknowledges that it holds the documents and instruments
relating to the Receivables for the benefit of the Issuer and the Indenture
Trustee. The Issuer and the Indenture Trustee shall have no responsibility to
monitor the Servicer's performance as custodian and shall have no liability in
connection with the Servicer's performance of such duties hereunder.

      SECTION 2.5 Duties of Servicer as Custodian.

      (a) Safekeeping. The Servicer shall hold the Receivable Files for the
benefit of the Issuer and the Indenture Trustee and shall maintain such accurate
and complete accounts, records and computer systems pertaining to each
Receivable File as shall enable the Servicer and the Issuer to comply with the
terms and conditions of this Agreement, and the Indenture Trustee to comply with
the terms and conditions of the Indenture. In performing its duties as
custodian, the Servicer shall act with reasonable care, using that degree of
skill and attention that the Servicer exercises with respect to the receivable
files relating to all comparable automotive receivables that the Servicer
services for itself or others. The Servicer shall conduct, or cause to be
conducted, periodic audits of the Receivable Files held by it under this
Agreement and of the related accounts, records and computer systems, in such a
manner as shall enable the Issuer or the Indenture Trustee to identify all
Receivables Files and such related accounts, records and computer systems and
verify the accuracy of the Servicer's record keeping. The Servicer shall
promptly report to the Issuer and the Indenture Trustee any failure on its part
to hold the Receivable Files and maintain its accounts, records, and computer
systems as herein provided and shall promptly take appropriate action to remedy
any such failure. Nothing herein shall be deemed to require an initial review or
any periodic review by the Issuer, the Owner Trustee or the Indenture Trustee of
the Receivable Files.

      (b) Maintenance of and Access to Records. The Servicer shall maintain each
Receivable File at its offices specified in Schedule B-1 to this Agreement
provided, that all Lien Certificates will be maintained at the location
specified in Schedule B-2, or at such other office as shall be specified to the
Issuer and the Indenture Trustee by 30 days' prior written notice. The Servicer
shall make available to the Issuer and the Indenture Trustee or their duly
authorized

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<PAGE>

representatives, attorneys, or auditors, the Receivable Files and the related
accounts, records and computer systems maintained by the Servicer during normal
business hours as the Issuer or the Indenture Trustee shall reasonably request,
which does not unreasonably interfere with the Servicer's normal operations.

      (c) Release of Documents. Upon written instructions from the Indenture
Trustee, the Servicer shall release or cause to be released any document in the
Receivable Files to the Indenture Trustee, the Indenture Trustee's agent or the
Indenture Trustee's designee, as the case may be, at such place or places as the
Indenture Trustee may reasonably designate, as soon as is reasonably
practicable, to the extent it does not unreasonably interfere with the
Servicer's normal operations. The Servicer shall not be responsible for any loss
occasioned by the failure of the Indenture Trustee or its agent or designee to
return any document or any delay in doing so.

      SECTION 2.6 Instructions; Authority to Act. All instructions from the
Indenture Trustee shall be in writing and signed by an Authorized Officer of the
Indenture Trustee, and the Servicer shall be deemed to have received proper
instructions with respect to the Receivable Files upon its receipt of such
written instructions.

      SECTION 2.7 Custodian's Indemnification. The Servicer, as custodian, shall
indemnify the Issuer, the Owner Trustee and the Indenture Trustee for any and
all liabilities, obligations, losses, compensatory damages, payments, costs, or
expenses of any kind whatsoever that may be imposed on, incurred, or asserted
against the Issuer, the Owner Trustee or the Indenture Trustee as the result of
any improper act or omission in any way relating to the maintenance and custody
by the Servicer as custodian of the Receivable Files; provided, however, that
the Servicer shall not be liable (i) to the Issuer for any portion of any such
amount resulting from the willful misfeasance, bad faith, or negligence of the
Indenture Trustee, the Owner Trustee or the Issuer, (ii) to the Owner Trustee
for any portion of any such amount resulting from the willful misfeasance, bad
faith, or negligence of the Indenture Trustee, the Owner Trustee or the Issuer
and (iii) to the Indenture Trustee for any portion of any such amount resulting
from the willful misfeasance, bad faith, or negligence of the Indenture Trustee,
the Owner Trustee or the Issuer.

      SECTION 2.8 Effective Period and Termination. The Servicer's appointment
as custodian shall become effective as of the Cut-off Date and shall continue in
full force and effect until terminated pursuant to this Section 2.8. If the Bank
shall resign as Servicer in accordance with the provisions of this Agreement or
if all of the rights and obligations of the Servicer shall have been terminated
under Section 7.1, the appointment of the Servicer as custodian hereunder may be
terminated by the Indenture Trustee, or by the holders of Notes evidencing not
less than a majority of the principal amount of the Controlling Class
Outstanding (or if no Notes are Outstanding, by holders of Certificates
evidencing not less than a majority of the Percentage Interests evidenced by the
Certificates), in the same manner as the Indenture Trustee or such
Securityholders may terminate the rights and obligations of the Servicer under
Section 7.1. As soon as practicable after any termination of such appointment,
the Servicer shall deliver to the Indenture Trustee or the Indenture Trustee's
agent the Receivable Files and the related accounts and records maintained by
the Servicer at such place or places as the Indenture Trustee may reasonably
designate.

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<PAGE>

                                   ARTICLE III

        ADMINISTRATION AND SERVICING OF RECEIVABLES AND TRUST PROPERTY

      SECTION 3.1 Duties of Servicer. The Servicer shall manage, service,
administer and make collections on the Receivables with reasonable care, using
that degree of skill and attention that the Servicer exercises with respect to
all comparable new or used automobile and light-duty truck receivables that it
services for itself. The Servicer's duties shall include collection and posting
of all payments, responding to inquiries of Obligors on such Receivables,
investigating delinquencies, sending payment coupons to Obligors, reporting tax
information to Obligors, accounting for collections, furnishing monthly and
annual statements to the Owner Trustee and the Indenture Trustee with respect to
distributions, making Advances pursuant to Section 4.4, preparing (or causing to
be prepared) the tax returns of the Trust in accordance with Section 5.6 of the
Trust Agreement and, if requested to do so, providing the certifications
required, pursuant to Section 5.1(b) hereof. The Servicer shall follow its
customary standards, policies and procedures in performing its duties as
Servicer. Without limiting the generality of the foregoing, the Servicer is
hereby authorized and empowered to execute and deliver, on behalf of itself, the
Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders, the
Certificateholders, or any of them, any and all instruments of satisfaction or
cancellation, or partial or full release or discharge, and all other comparable
instruments, with respect to such Receivables or to the Financed Vehicles
securing such Receivables. If the Servicer shall commence a legal proceeding to
enforce a Receivable, the Issuer (in the case of a Receivable other than a
Purchased Receivable) shall thereupon be deemed to have automatically assigned,
solely for the purpose of collection, such Receivable to the Servicer. If in any
enforcement suit or legal proceeding it shall be held that the Servicer may not
enforce a Receivable on the ground that it shall not be a real party in interest
or a holder entitled to enforce the Receivable, the Issuer shall, at the
Servicer's expense and direction, take steps to enforce the Receivable,
including bringing suit in its name or the names of the Indenture Trustee, the
Noteholders, the Certificateholders, or any of them. The Issuer shall furnish
the Servicer with any powers of attorney and other documents reasonably
necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder.

      SECTION 3.2 Collection of Receivable Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due and shall
follow such collection procedures as it follows with respect to all comparable
new or used automobile and light-duty truck receivables that it services for
itself. The Servicer shall not change the amount of or reschedule the due date
of any scheduled payment of a Receivable to a date more than 30 days from the
original due date of such scheduled payment, change the annual percentage rate
of or extend any Receivable or change any material term of a Receivable, except
as provided by the terms of the Receivable or of this Agreement or as required
by law or court order; provided, however, that the Servicer may extend any
Receivable that is in default or with respect to which default is reasonably
foreseeable and that would be acceptable to the Servicer with respect to
comparable new or used automobile and light-duty truck receivables that it
services for itself if (a) the amount on deposit in the Reserve Account is
greater than zero at the time of the extension, (b) the total credit-related
extensions granted on the Receivable will not exceed four months in

                                       8
<PAGE>

the aggregate, (c) the total number of credit-related extensions granted on the
Receivable will not exceed two, and (d) the maturity of such Receivable will not
be extended beyond April 2012. If, as a result of inadvertently rescheduling or
extending payments, such rescheduling or extension breaches any of the terms of
the proviso to the preceding sentence, then the Servicer shall be obligated to
purchase such Receivable pursuant to Section 3.7. For the purpose of such
purchases pursuant to Section 3.7, notice shall be deemed to have been received
by the Servicer at such time as shall make purchase mandatory as of the last day
of the Collection Period during which the discovery of such breach occurred.

      Notwithstanding anything to the contrary herein, the Servicer may
implement programs that grant payment extensions in respect of receivables that
are not delinquent. Any such program shall be implemented with the approval of
the senior officer's credit committee of the Servicer in accordance with the
Servicer's general lending and policy guidelines. Any such payment extension may
extend the maturity of the applicable receivable beyond its original term to
maturity. Notwithstanding anything to the contrary herein, the Servicer may also
reduce the interest rate on Receivables affected by the application of the
Servicemembers Civil Relief Act to a rate that is lower than the maximum rate
prescribed by the Servicemembers Civil Relief Act and may readjust the payment
schedule for any Receivable that is affected by the application of the
Servicemembers Civil Relief Act until the maturity of the receivable.

      The Servicer may at any time perform specific duties as servicer or
custodian under this Agreement through subcontractors; provided, however, that
no such delegation or subcontracting shall relieve the Servicer of its
responsibilities with respect to such duties as to which the Servicer shall
remain primarily responsible with respect thereto. All amounts payable to any
subcontractor shall be paid by the Servicer and shall not be obligations of the
Indenture Trustee, the Owner Trustee or the Issuer or paid from the Indenture
Trust Estate. References in this Agreement to actions taken or to be taken by
the Servicer include actions taken or to be taken by a subcontractor on behalf
of the Servicer.

      SECTION 3.3 Realization Upon Receivables. On behalf of the Issuer, the
Servicer shall use reasonable efforts, consistent with its customary standards,
policies and procedures, to repossess or otherwise convert the ownership of the
Financed Vehicle securing any Receivable as to which the Servicer shall have
determined to be a Defaulted Receivable or otherwise (and shall specify any such
Defaulted Receivable to the Indenture Trustee no later than the Determination
Date following the Collection Period in which the Servicer shall have made such
determination). The Servicer shall follow such customary standards, policies and
procedures as it shall deem necessary or advisable in its servicing of
comparable receivables, which may include selling the Financed Vehicle at public
or private sale. The Servicer shall be entitled to recover from proceeds all
reasonable expenses incurred by it in the course of converting the Financed
Vehicle into cash proceeds. The Liquidation Proceeds (net of such expenses)
realized in connection with any such action with respect to a Receivable shall
be deposited by the Servicer in the Collection Account in the manner specified
in Section 4.2 and shall be applied to reduce (or to satisfy, as the case may
be) the Purchase Amount of the Receivable, if such Receivable is to be
repurchased by the Depositor pursuant to Section 2.3, or is to be purchased by
the Servicer pursuant to Section 3.7. The foregoing shall be subject to the
provision that, in any case in which the Financed Vehicle shall have suffered
damage, the Servicer shall not be required to

                                       9
<PAGE>

expend funds in connection with the repair or the repossession of such Financed
Vehicle unless it shall determine in its discretion that such repair and/or
repossession will increase the Liquidation Proceeds by an amount greater than
the amount of such expenses.

      SECTION 3.4 Allocations of Collections. If an Obligor is obligated under
one or more Receivables and also under one or more other assets owned by the
Bank or assigned by the Bank to third parties, then any payment on any such
asset received from or on behalf of such Obligor shall, if identified as being
made with respect to a particular item or asset, be applied to such item, and
otherwise shall be allocated by the Bank in accordance with its customary
standards, policies and procedures.

      SECTION 3.5 Maintenance of Security Interests in Financed Vehicles. The
Servicer shall, in accordance with its customary procedures, take such steps as
are necessary to maintain perfection of the security interest created by each
Receivable in the related Financed Vehicle. The Issuer hereby authorizes the
Servicer to take such steps as are necessary to re-perfect such security
interest on behalf of the Issuer and the Indenture Trustee in the event of the
relocation of a Financed Vehicle or for any other reason, in either case, when
the Servicer has knowledge of the need for such re-perfection. In the event that
the assignment of a Receivable to the Issuer is insufficient, without a notation
on the related Financed Vehicle's certificate of title, or without fulfilling
any additional administrative requirements under the laws of the state in which
the Financed Vehicle is located, to transfer to the Issuer a perfected security
interest in the related Financed Vehicle, the Servicer hereby agrees that the
Servicer's listing as the secured party on the certificate of title is deemed to
be in its capacity as agent of the Issuer and the Indenture Trustee and further
agrees to hold such certificate of title as the agent and custodian of the
Issuer and the Indenture Trustee; provided that the Servicer shall not, nor
shall the Issuer or the Indenture Trustee have the right to require that the
Servicer, make any such notation on the related Financed Vehicles' certificate
of title or fulfill any such additional administrative requirement of the laws
of the state in which a Financed Vehicle is located.

      SECTION 3.6 Covenants of Servicer. The Servicer shall not (i) release the
Financed Vehicle securing each such Receivable from the security interest
granted by such Receivable in whole or in part except in the event of payment in
full by or on behalf of the Obligor thereunder, (ii) impair the rights of the
Trust or the Indenture Trustee in the Receivables, or (iii) increase the number
of payments under a Receivable, increase the Amount Financed under a Receivable
or extend or forgive payments on a Receivable, except as provided in Section
3.2. In the event that at the end of the scheduled term of any Receivable, the
outstanding principal amount thereof is such that the final payment to be made
by the related Obligor is larger than the regularly scheduled payment of
principal and interest made by such Obligor, the Servicer may permit such
Obligor to pay such remaining principal amount in more than one payment of
principal and interest; provided that the last such payment shall be due on or
prior to the Collection Period immediately preceding the Class B Final Scheduled
Payment Date.

      SECTION 3.7 Purchase of Receivables Upon Breach. (a) The Servicer, the
Depositor or the Owner Trustee, as the case may be, promptly shall inform the
other parties to this Agreement, in writing, upon the discovery of any breach
pursuant to Section 3.2, 3.5 or 3.6. Unless the breach shall have been cured by
the last day of the second Collection Period

                                       10
<PAGE>

following such discovery (or, at the Servicer's election, the last day of the
first following Collection Period), the Servicer shall purchase any Receivable
materially and adversely affected by such breach as determined by the Indenture
Trustee (which shall include any Receivable as to which a breach of Section 3.6
has occurred) at the Purchase Amount (less any Liquidation Proceeds deposited,
or to be deposited, in the Collection Account with respect to such Receivable
pursuant to Section 3.3). In consideration of the purchase of such Receivable,
the Servicer shall remit the Purchase Amount in the manner specified in Section
4.5. For purposes of this Section 3.7, the Purchase Amount shall consist in part
of a release by the Servicer of all rights of reimbursement with respect to
Outstanding Advances on the Receivable. The sole remedy of the Issuer, the Owner
Trustee, the Indenture Trustee, the Noteholders or the Certificateholders with
respect to a breach pursuant to Section 3.2, 3.5 or 3.6 shall be to require the
Servicer to purchase Receivables pursuant to this Section 3.7.

      (b) With respect to all Receivables purchased pursuant to this Section
3.7, the Issuer shall assign to the Servicer or the Depositor, as applicable,
without recourse, representation or warranty, all of the Issuer's right, title
and interest in and to such Receivables and all security and documents relating
thereto.

      SECTION 3.8 Servicer Fees. The Servicer shall be entitled to any interest
earned on the amounts deposited in the Collection Account during each Collection
Period plus all late fees, prepayment charges and other administrative fees and
expenses or similar charges, if any, allowed by applicable law and the terms of
the Receivables during each Collection Period (the "Supplemental Servicing
Fee"). The Servicer also shall be entitled to the Servicing Fee, as provided
herein.

      SECTION 3.9 Servicer's Certificate. On or prior to the Determination Date
for each Payment Date, the Servicer shall deliver to the Depositor, the Owner
Trustee, each Note Paying Agent and Certificate Paying Agent, the Indenture
Trustee and the Seller, with a copy to the Rating Agencies, a Servicer's
Certificate containing all information (including all specific dollar amounts)
necessary to make the transfers and distributions pursuant to Sections 4.3, 4.4,
4.5, 4.6 and 4.7 hereof, and Section 8.2 of the Indenture for the Collection
Period preceding the date of such Servicer's Certificate, together with the
written statements to be furnished by the Owner Trustee to Certificateholders
pursuant to Section 4.9 hereof and by the Indenture Trustee to the Noteholders
pursuant to Section 4.9 hereof and Section 6.6 of the Indenture. Receivables
purchased or to be purchased by the Servicer or the Depositor shall be
identified by the Servicer by the Seller's account number with respect to such
Receivable (as specified in the Schedule of Receivables).

      SECTION 3.10 Annual Statement as to Compliance; Item 1122 Servicing
Criteria Assessment; Notice of Event of Servicing Termination. (a) The Servicer
shall deliver to the Owner Trustee, the Indenture Trustee and each Rating Agency
on or before March 31 of each year beginning March 31, 2007,

      (i) an Officer's Certificate, with respect to the preceding 12-month
period (or such shorter period in the case of the first such certificate),
stating that (x) a review of the activities of the Servicer during the preceding
12-month period (or such shorter period in the case of the first

                                       11
<PAGE>

such certificate) and of its performance under this Agreement has been made
under such officer's supervision and (y) to the best of such officer's
knowledge, based on such review, the Servicer has fulfilled all its obligations
in all material respects under this Agreement throughout such period, 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

      (ii) the servicing criteria assessment required to be filed in respect of
the Trust under the Exchange Act under Item 1122 of Regulation AB if periodic
reports under Section 15(d) of the Exchange Act, or any successor provision
thereto, were required to be filed in respect of the Trust. Such report shall be
signed by an authorized officer of the Servicer and shall at a minimum address
each of the Servicing Criteria specified on a certification substantially in the
form of Appendix C hereto delivered to the Depositor concurrently with the
execution of this Agreement. To the extent any of the Servicing Criteria are not
applicable to the Servicer, with respect to asset-backed securities transactions
taken as a whole involving the Servicer 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.

      A copy of such Officer's Certificate and the report referred to in Section
3.11 may be obtained by any Certificateholder by a request in writing to the
Owner Trustee, or by any Noteholder or Person certifying that it is a Note Owner
by a request in writing to the Indenture Trustee, in either case addressed to
the applicable Corporate Trust Office. Upon the telephone request of the Owner
Trustee, the Indenture Trustee shall promptly furnish the Owner Trustee a list
of Noteholders as of the date specified by the Owner Trustee.

      (b) The Servicer shall deliver to the Owner Trustee, the Indenture Trustee
and each Rating Agency promptly after having obtained knowledge thereof, but in
no event later than five (5) Business Days thereafter, written notice in an
Officer's Certificate of any event which with the giving of notice or lapse of
time, or both, would become an Event of Servicing Termination under Section 7.1.
The Seller shall deliver to the Owner Trustee, the Indenture Trustee and each
Rating Agency promptly after having obtained knowledge thereof, but in no event
later than five (5) Business Days thereafter, written notice in an Officer's
Certificate of any event which with the giving of notice or lapse of time, or
both, would become an Event of Servicing Termination under clause (a)(ii) of
Section 7.1.

      (c) 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 paragraph (a)(ii) of this Section 3.10 and Section 3.11. The
Servicer shall execute (provided the Servicer is not an Affiliate of the
Depositor) (and shall cause each Reporting Subcontractor to execute) a reliance
certificate to enable the Certification Parties to rely upon each (i) annual
report on assessments of compliance with servicing criteria provided pursuant to
Section 3.10 and (ii) accountant's report provided pursuant to Section 3.10 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 Section 3.11.

                                       12
<PAGE>

      (d) In the event the Servicer, any Subservicer or Reporting Subcontractor
is terminated or resigns during the term of this Agreement, such Person shall
provide the documents and information pursuant to Section 3.10 and Section 3.11
with respect to the period of time it was subject to this Agreement or provided
services with respect to the Trust or the Receivables. Notwithstanding anything
to the contrary contained herein, if the Servicer has exercised commercially
reasonable efforts to obtain any assessment or attestation required hereunder
from a Reporting Subcontractor, the failure by the Reporting Subcontractor to
provide such attestation on or assessment shall not constitute a breach
hereunder by the Servicer.

      SECTION 3.11 Annual Independent Certified Public Accountant's Report. The
Servicer shall cause a firm of independent certified public accountants, who may
also render other services to the Servicer, the Seller or the Depositor, to
deliver to the Owner Trustee and the Indenture Trustee on or before March 31 of
each year beginning March 31, 2007 with respect to the prior calendar year (or
such shorter period in the case of the first such report) the attestation report
that would be required to be filed in respect of the Trust under the Exchange
Act if periodic reports under Section 15(d) of the Exchange Act, or any
successor provision thereto, were required to be filed in respect of the Trust.
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.

      SECTION 3.12 Access to Certain Documentation and Information Regarding
Receivables. The Servicer shall provide to the Certificateholders, the Indenture
Trustee and the Noteholders access to the Receivable Files in such cases where
the Certificateholders, the Indenture Trustee or the Noteholders shall be
required by applicable statutes or regulations to review such documentation.
Access shall be afforded without charge, but only upon reasonable request and
during the normal business hours at the respective offices of the Servicer.
Nothing in this Section 3.12 shall affect the obligation of the Servicer to
observe any applicable law prohibiting disclosure of information regarding the
Obligors, and the failure of the Servicer to provide access to information as a
result of such obligation shall not constitute a breach of this Section 3.12.

      SECTION 3.13 Servicer Expenses. The Servicer shall be required to pay all
expenses incurred by it in connection with its activities hereunder, including
fees, expenses (including counsel fees and expenses) and disbursements of the
Owner Trustee and the Indenture Trustee, independent accountants, taxes imposed
on the Servicer and expenses incurred in connection with distributions and
reports to Noteholders and Certificateholders.

      SECTION 3.14 Insurance. The Servicer, in accordance with its customary
servicing procedures and underwriting standards, shall require that each Obligor
shall have obtained and shall maintain comprehensive and collision insurance
covering the related Financed Vehicle as of the execution of the Receivable. The
Servicer shall enforce its rights under the Receivables to require the Obligors
to maintain comprehensive and collision insurance, in accordance with the
Servicer's customary practices and procedures with respect to comparable new or
used automobile and light-duty truck receivables that it services for itself or
others.

                                       13
<PAGE>

                                   ARTICLE IV

        DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO NOTEHOLDERS AND
                               CERTIFICATEHOLDERS

      SECTION 4.1 Accounts. (a) The Servicer shall, prior to the Closing Date,
cause to be established and maintained an Eligible Deposit Account in the name
"JPMorgan Chase Bank, National Association, as Indenture Trustee, as secured
party from USAA Auto Owner Trust 2006-3", initially at the corporate trust
department of the Indenture Trustee, which shall be designated as the
"Collection Account". The Collection Account shall be under the sole dominion
and control of the Indenture Trustee; provided, that the Servicer may make
deposits to and direct the Indenture Trustee in writing to make withdrawals from
the Collection Account in accordance with the terms of the Basic Documents. The
Collection Account will be established and maintained pursuant to an account
agreement which specifies New York law as the governing law. In addition, the
Collection Account shall be established and maintained at an institution which
agrees in writing that for so long as the Notes are outstanding it will comply
with entitlement orders (as defined in Article 8 of the UCC) originated by the
Indenture Trustee without further consent of the Issuer. All monies deposited
from time to time in the Collection Account shall be held by the Indenture
Trustee as secured party for the benefit of the Noteholders and, after payment
in full of the Notes, as agent of the Issuer and as part of the Trust Property.
All deposits to and withdrawals from the Collection Account shall be made only
upon the terms and conditions of the Basic Documents.

      If the Servicer is required to remit collections pursuant to the first
sentence of Section 4.2, all amounts held in the Collection Account shall, to
the extent permitted by applicable law, rules and regulations, be invested, as
directed in writing by the Servicer, by the bank or trust company then
maintaining the Collection Account in specified Permitted Investments that
mature not later than the Business Day immediately prior to the Payment Date for
the Collection Period to which such amounts relate and such Permitted
Investments shall be held to maturity. All interest and other income (net of
losses and investment expenses) on funds on deposit in the Collection Account
shall be withdrawn from the Collection Account at the written direction of the
Servicer and shall be paid to the Servicer. The Indenture Trustee shall not be
liable for investment losses in Permitted Investments made in accordance with
directions from the Servicer. In the event that the Collection Account is no
longer to be maintained at the corporate trust department of the Indenture
Trustee, the Servicer shall, with the Indenture Trustee's or Issuer's assistance
as necessary, cause an Eligible Deposit Account to be established as the
Collection Account within ten (10) Business Days (or such longer period not to
exceed thirty (30) calendar days as to which each Rating Agency may consent) and
give written notice of the location and account number of such account to the
Indenture Trustee.

      (b) The Servicer shall, prior to the Closing Date, establish and maintain
an administrative subaccount within the Collection Account at the bank or trust
company then maintaining the Collection Account, which subaccount shall be
designated as the "Principal Distribution Account". The Principal Distribution
Account is established and maintained solely for administrative purposes.

                                       14
<PAGE>

      (c) The Servicer shall, prior to the Closing Date, cause an Eligible
Deposit Account to be established and maintained, in the name "USAA Auto Owner
Trust 2006-3 Certificate Distribution Account", initially at the corporate trust
department of the Owner Trustee, which shall be designated as the "Certificate
Distribution Account". The Certificate Distribution Account shall be under the
sole dominion and control of the Owner Trustee. All monies deposited from time
to time in the Certificate Distribution Account pursuant to this Agreement and
the Indenture shall be held by the Owner Trustee as part of the Trust Property
and shall be applied as provided in the Basic Documents. In the event that the
Certificate Distribution Account is no longer to be maintained at the corporate
trust department of the Owner Trustee, the Servicer shall cause an Eligible
Deposit Account to be established as the Certificate Distribution Account within
ten (10) Business Days (or such longer period not to exceed thirty (30) calendar
days as to which each Rating Agency may consent) and give written notice of the
location and account number of such account to the Owner Trustee. The
Certificate Distribution Account will be established and maintained pursuant to
an account agreement which specifies New York law as the governing law.

      SECTION 4.2 Collections. The Servicer shall remit to the Collection
Account within two (2) Business Days of the receipt thereof (i) all payments by
or on behalf of the Obligors (but excluding Purchased Receivables) and (ii) all
Liquidation Proceeds, both as collected during the Collection Period; provided
that the Bank, so long as it is acting as the Servicer and no Event of Servicing
Termination has occurred and is continuing, may make remittances of collections
on a less frequent basis than that specified in the immediately preceding
sentence. It is understood that such less frequent remittances may be made only
on the specific terms and conditions set forth below in this Section 4.2 and
only for so long as such terms and conditions are fulfilled. Accordingly,
notwithstanding the provisions of the first sentence of this Section 4.2, the
Servicer shall remit collections received during a Collection Period to the
Collection Account in immediately available funds on the Business Day preceding
the related Payment Date but only for so long as the Monthly Remittance
Condition is satisfied. The Owner Trustee or the Indenture Trustee shall not be
deemed to have knowledge of any event or circumstance in the definition of
Monthly Remittance Condition that would require remittance by the Servicer to
the Collection Account within two (2) Business Days of receipt as aforesaid
unless the Owner Trustee or the Indenture Trustee has received written notice of
such event or circumstance from the Seller or the Servicer in an Officer's
Certificate or from the holders of Notes evidencing not less than 25% of the
principal amount of the Notes Outstanding or from the Certificateholders of
Certificates evidencing not less than 25% of the Percentage Interests evidenced
by the Certificates or a Trustee Officer in the Corporate Trust Office with
knowledge hereof or familiarity herewith has actual knowledge of such event or
circumstance. For purposes of this Article IV the phrase "payments by or on
behalf of Obligors" shall mean payments made by Persons other than the Servicer
or by other means.

      SECTION 4.3 Application of Collections. For the purposes of this
Agreement, as of the close of business on the last day of each Collection
Period, all collections for the Collection Period with respect to each
Receivable (other than a Purchased Receivable) shall be applied by the Servicer
first to the amount of interest accrued on such Receivable to the date of
receipt, then to reduce the scheduled principal amount outstanding on the
Receivable to the extent of the remaining scheduled payment and then to any
outstanding fees under the terms of the

                                       15
<PAGE>

Receivable. Amounts paid by the Depositor, the Seller or the Servicer in respect
of Purchased Receivables shall be allocated first to any interest accrued on the
related Receivable and then to the Principal Balance of the related Receivable.

      SECTION 4.4 Advances. (a) As of each Determination Date, the Servicer
shall make a payment with respect to each Receivable (other than a Defaulted
Receivable) equal to the excess, if any, of (x) the product of the Principal
Balance of such Receivable as of the first day of the related Collection Period
and one-twelfth of the Annual Percentage Rate (as adjusted downward, as the case
may be, in accordance with the Servicemembers Civil Relief Act or pursuant to
Section 3.2) on such Receivable (calculated on the basis of a 360-day year of
twelve 30-day months), over (y) the interest actually received by the Servicer
with respect to such Receivable from the Obligor or from payment of the Purchase
Amount during or with respect to such Collection Period. The Servicer shall
deposit all such Advances into the Collection Account in immediately available
funds no later than, 11:00 a.m. New York City time, on the Determination Date.
Notwithstanding the foregoing, the Servicer may elect not to make any Advance
with respect to a Receivable to the extent that the Servicer, in its sole
discretion, shall determine that such Advance is not recoverable from subsequent
payments on such Receivable or from withdrawals from the Reserve Account. To the
extent that the amount set forth in clause (y) above with respect to a
Receivable is greater than the amount set forth in clause (x) above with respect
thereto, such excess amount shall be distributed to the Servicer pursuant to
Section 4.6(b). In addition, in the event that a Receivable becomes a Defaulted
Receivable, Outstanding Advances in respect of that Receivable shall be
reimbursed to the extent of interest Collections with respect to such Receivable
and, if such amounts are insufficient, from amounts on deposit in the Reserve
Account, and if such amounts are not sufficient, from amounts on deposit in the
Collection Account. The Servicer shall not make any advance with respect to
principal of Receivables.

      (b) The Servicer shall deposit in the Collection Account the aggregate
Advances on the Receivables pursuant to Section 4.4(a). To the extent that the
Servicer fails to make an Advance pursuant to Section 4.4(a) on the date
required, the Servicer shall so notify the Issuer and the Indenture Trustee in
writing specifying the amount of the Advance and the Receivable to which such
Advance related, and the Indenture Trustee shall withdraw such amount (or, if
determinable by the Servicer, such portion of such amount as does not represent
advances for delinquent interest) from the Reserve Account and deposit such
amount in the Collection Account.

      SECTION 4.5 Additional Deposits. (a) The Depositor and the Servicer shall
deposit in the Collection Account the aggregate Purchase Amounts with respect to
Purchased Receivables pursuant to Sections 2.3 and 3.7, respectively, and the
Servicer shall deposit therein all Purchase Amounts to be paid under Section
8.1. All such deposits with respect to a Collection Period shall be made, in
immediately available funds, on the Business Day preceding the Payment Date
related to such Collection Period.

      (b) The Indenture Trustee, in accordance with the written instructions of
the Servicer, shall, on each Payment Date make a withdrawal from the Reserve
Account (i) first, in an amount equal to the Reserve Account Excess Amount for
such Payment Date and (ii) second, in an

                                       16
<PAGE>

amount equal to the amount (if positive) calculated by the Servicer pursuant to
the second sentence of Section 4.6(b).

      SECTION 4.6 Distributions. (a) On each Payment Date, the Indenture Trustee
shall cause the transfer and distribution of the amounts set forth in the
Servicer's Certificate for such Payment Date from the Collection Account to the
Servicer, in immediately available funds, for repayment of Outstanding Advances
pursuant to Section 4.4(a).

      (b) The Servicer shall on or before each Determination Date calculate the
Available Collections, the Reserve Account Excess Amount, the Available Funds,
the Servicing Fee and all unpaid Servicing Fees from prior Collection Periods,
if any, the Accrued Class A Note Interest, the Accrued Class B Note Interest,
the First Priority Principal Payment, if any, and the Regular Principal
Distribution Amount. In addition, the Servicer shall calculate on or before each
Determination Date the difference, if any, between the Total Required Payment
and the Available Funds and, pursuant to Section 4.5(b), the Indenture Trustee
shall withdraw funds from the Reserve Account in an amount equal to the lesser
of such difference (if positive) or the balance of such Reserve Account.

      (c) On each Payment Date, the Servicer shall instruct the Indenture
Trustee (based on the information contained in the Servicer's Certificate
delivered on or before the related Determination Date pursuant to Section 3.9),
to make the following withdrawals from the Collection Account and make deposits,
distributions and payments, to the extent of Available Funds for such Payment
Date (plus funds, if any, deposited in the Collection Account from the Reserve
Account pursuant to Section 4.5(b)), in the following order of priority:

            (i) first, to the Servicer, the Servicing Fee and all unpaid
      Servicing Fees from prior Collection Periods;

            (ii) second, to the Class A Noteholders, the Accrued Class A Note
      Interest for such Payment Date; provided that if there are not sufficient
      funds available to pay the entire amount of the Accrued Class A Note
      Interest, the amounts available shall be applied to the payment of such
      interest on the Class A Notes on a pro rata basis;

            (iii) third, to the Class A Noteholders, the First Priority
      Principal Payment, if any, for such Payment Date to be distributed in the
      same priority as described under Section 4.6(d) of this Agreement;

            (iv) fourth, to the Class B Noteholders, the Accrued Class B Note
      Interest for such Payment Date;

            (v) fifth, to the Principal Distribution Account, the Regular
      Principal Distribution Amount (less any amounts distributed under clause
      (iii) above) for such Payment Date;

            (vi) sixth, if such Payment Date is a Final Scheduled Payment Date
      for any Class, to the Principal Distribution Account, the amount necessary
      to reduce the remaining principal amount of such Class to zero after
      giving effect to the amount, if any, to be

                                       17
<PAGE>

      applied on such Payment Date to such Class from funds deposited pursuant
      to clauses (iii) and (v) above;

            (vii) seventh, to the Reserve Account, the amount, if any, required
      to reinstate the amount in the Reserve Account up to the Specified Reserve
      Balance for such Payment Date;

            (viii) eighth, to the Indenture Trustee and the Owner Trustee, all
      amounts due for fees, expenses and indemnification pursuant to Section 6.7
      of the Indenture and Section 7.1 of the Trust Agreement, respectively, and
      not previously paid; and

            (ix) ninth, to the Certificate Distribution Account, any remaining
      Available Funds for such Payment Date.

      Notwithstanding the foregoing in this Section 4.6(c),

                 (A) if the Notes have been accelerated after an Event of
          Default specified in Section 5.1(iii) of the Indenture, then the
          Available Funds shall instead be applied in the following order of
          priority:

                    (1)  to the Indenture Trustee and the Owner Trustee, all
                         amounts due for fees, expenses and indemnification
                         under Section 6.7 of the Indenture, Section 7.1 of the
                         Trust Agreement and Section 6.2 of this Agreement,
                         respectively, and not previously paid;

                    (2)  to the Servicer, the Servicing Fee and all unpaid
                         Servicing Fees from prior Collection Periods;

                    (3)  to the Class A Noteholders, the Accrued Class A Note
                         Interest for such Payment Date; provided that if there
                         are not sufficient funds available to pay the entire
                         amount of the Accrued Class A Note Interest, the
                         amounts available shall be applied to the payment of
                         such interest on the Class A Notes on a pro rata basis;

                    (4)  to the Class A Noteholders, the First Priority
                         Principal Payment, if any, for such Payment Date to be
                         distributed in the same manner as described under
                         Section 4.6(d) of this Agreement;

                    (5)  to the Class B Noteholders, the Accrued Class B Note
                         Interest for such Payment Date;

                    (6)  first, to the holders of the Class A-1 Notes in
                         reduction of principal until the principal amount of
                         the Class A-1 Notes has been paid in full and then to
                         the holders of the Class A-2 Notes, the Class A-3 Notes
                         and the Class A-4 Notes on a pro rata basis in
                         reduction of principal until the principal amount of
                         such Class A Notes has been paid in full;

                                       18
<PAGE>

                    (7)  to the holders of the Class B Notes in reduction of
                         principal until the principal amount of the Class B
                         Notes has been paid in full; and

                    (8)  to the Certificate Distribution Account, any remaining
                         Available Funds for such Payment Date; and

                 (B) if the Notes have been accelerated after an Event of
          Default specified in Section 5.1(i), (ii), (iv) or (v) of the
          Indenture, then the Available Funds shall instead be applied in the
          following order of priority:

                    (1)  to the Indenture Trustee and the Owner Trustee, all
                         amounts due for fees, expenses and indemnification
                         under Section 6.7 of the Indenture, Section 7.1 of the
                         Trust Agreement and Section 6.2 of this Agreement,
                         respectively, and not previously paid;

                    (2)  to the Servicer, the Servicing Fee and all unpaid
                         Servicing Fees from prior Collection Periods;

                    (3)  to the Class A Noteholders, the Accrued Class A Note
                         Interest for such Payment Date; provided that if there
                         are not sufficient funds available to pay the entire
                         amount of the Accrued Class A Note Interest, the
                         amounts available shall be applied to the payment of
                         such interest on the Class A Notes on a pro rata basis;

                    (4)  first, to the holders of the Class A-1 Notes in
                         reduction of principal until the principal amount of
                         the Class A-1 Notes has been paid in full and then to
                         the holders of the Class A-2 Notes, the Class A-3 Notes
                         and the Class A-4 Notes on a pro rata basis in
                         reduction of principal until the principal amount of
                         such Class A Notes has been paid in full;

                    (5)  to the Class B Noteholders, first, the Accrued Class B
                         Note Interest for such Payment Date and second, in
                         reduction of principal until the principal amount of
                         the Class B Notes has been paid in full; and

                    (6)  to the Certificate Distribution Account, any remaining
                         Available Funds for such Payment Date.

      (d) If the Notes have not been accelerated because of an Event of Default,
then on each Payment Date the Servicer shall instruct the Indenture Trustee
(based on the information contained in the Servicer's Certificate delivered on
or before the related Determination Date pursuant to Section 3.9), to withdraw
the funds deposited in the Principal Distribution Account on such Payment Date
and make distributions and payments in the following order of priority:

            (i)   first, to the holders of the Class A-1 Notes on a pro rata
                  basis in reduction of principal until the principal amount of
                  the Class A-1 Notes has been paid in full;

                                       19
<PAGE>

            (ii)  second, to the holders of the Class A-2 Notes on a pro rata
                  basis in reduction of principal until the principal amount of
                  the Class A-2 Notes has been paid in full;

            (iii) third, to the holders of the Class A-3 Notes on a pro rata
                  basis in reduction of principal until the principal amount of
                  the Class A-3 Notes has been paid in full;

            (iv)  fourth, to the holders of the Class A-4 Notes on a pro rata
                  basis in reduction of principal until the principal amount of
                  the Class A-4 Notes has been paid in full; and

            (v)   fifth, to the holders of the Class B Notes on a pro rata basis
                  in reduction of principal until the principal amount of the
                  Class B Notes has been paid in full.

Any funds remaining on deposit in the Principal Distribution Account shall be
paid to the Indenture Trustee and the Owner Trustee to the extent, if any, of
amounts due to them hereunder that are unpaid and then to the Certificate
Distribution Account.

            If the Notes have been accelerated because of an Event of Default,
then on each Payment Date the Servicer shall instruct the Indenture Trustee
(based on the information contained in the Servicer's Certificate delivered on
or before the related Determination Date pursuant to Section 3.9), to withdraw
the funds deposited in the Principal Distribution Account on such Payment Date
and pay them to the holders of the Class A-1 Notes until the principal amount of
the Class A-1 Notes has been paid in full, then to the holders of the Class A-2
Notes, Class A-3 Notes and Class A-4 Notes on a pro rata basis in reduction of
principal until the principal amount of the Class A Notes has been paid in full
and then to the holders of the Class B Notes in reduction of principal until the
principal amount of the Class B Notes has been paid in full.

      SECTION 4.7 Reserve Account. (a) (i) The Servicer shall, prior to the
Closing Date, cause to be established and maintained an Eligible Deposit Account
in the name "JPMorgan Chase Bank, National Association, as Indenture Trustee, as
secured party from USAA Auto Owner Trust 2006-3", initially at the corporate
trust department of the Indenture Trustee, which shall be designated as the
"Reserve Account" (the Reserve Account, together with the Collection Account
(including the Principal Distribution Account), the "Trust Accounts"). The
Reserve Account shall be under the sole dominion and control of the Indenture
Trustee; provided, that the Servicer may make deposits to the Reserve Account in
accordance with the Basic Documents. The Reserve Account will be established and
maintained pursuant to an account agreement which specifies New York law as the
governing law. In addition, the Reserve Account shall be established and
maintained at an institution which agrees in writing that for so long as the
Notes are Outstanding it will comply with entitlement orders (as defined in
Article 8 of the UCC) originated by the Indenture Trustee without further
consent of the Issuer. On the Closing Date, the Depositor shall deposit the
Reserve Initial Deposit into the Reserve Account. The Reserve Account and all
amounts, securities, investments, financial assets and other property deposited
in or credited to the Reserve Account (such amounts, the "Reserve Account
Property") shall be

                                       20
<PAGE>

held by the Indenture Trustee as secured party for the benefit of the
Noteholders and, after payment in full of the Notes, as agent of the Owner
Trustee and as part of the Trust Property, and all deposits to and withdrawals
from there from shall be made only upon the terms and conditions of the Basic
Documents.

      The Reserve Account Property shall, to the extent permitted by applicable
law, rules and regulations, be invested, as directed in writing by holders of
Certificates holding not less than a majority of the Percentage Interests
evidenced by the Certificates, by the bank or trust company then maintaining the
Reserve Account in Permitted Investments that mature not later than the next
Payment Date or such later date that satisfies the Rating Agency Condition, and
such Permitted Investments shall be held to maturity. If JPMorgan Chase Bank,
National Association is the Indenture Trustee, in the absence of written
direction, all funds shall be retained uninvested. Additionally, amounts in the
Reserve Account will be retained uninvested in the circumstances described in
Section 8.3(c) of the Indenture. All interest and other income (net of losses
and investment expenses) on funds on deposit in the Reserve Account shall be
deposited therein. The Indenture Trustee shall not be liable for investment
losses in Permitted Investments made in accordance with directions from the
investment instructions received from holders of the Certificates as provided
above. In the event the Reserve Account is no longer to be maintained at the
corporate trust department of the Indenture Trustee, the Servicer shall, with
the Indenture Trustee's or Owner Trustee's assistance as necessary, cause an
Eligible Deposit Account to be established as the Reserve Account within ten
(10) Business Days (or such longer period not to exceed thirty (30) calendar
days as to which each Rating Agency may consent) and give written notice of the
location and account number of such account to the Indenture Trustee.

            (ii) With respect to Reserve Account Property:

                  (A) any Reserve Account Property that is a "financial asset"
            as defined in Section 8-102(a)(9) of the UCC shall be physically
            delivered to, or credited to an account in the name of, the
            institution maintaining the Reserve Account in accordance with such
            institution's customary procedures such that such institution
            establishes a "securities entitlement" in favor of the Indenture
            Trustee with respect thereto; and

                  (B) any Reserve Account Property that is held in deposit
            accounts shall be held solely in the name of the Indenture Trustee
            at one or more depository institutions having the Required Rating
            and each such deposit account shall be subject to the exclusive
            custody and control of the Indenture Trustee and the Indenture
            Trustee shall have sole signature authority with respect thereto.

            (iii) Except for any deposit accounts specified in clause (ii)(B)
      above, the Reserve Account shall only be invested in securities or in
      other assets which the institution maintaining the Reserve Account agrees
      to treat as "financial assets" as defined in Section 8-102(a)(9) of the
      UCC.

      (b) If the Servicer pursuant to Section 4.4 determines on or before any
Determination Date that it is required to make an Advance and does not do so
from its own funds, the Servicer shall promptly instruct the Indenture Trustee
in writing to draw funds, in an amount specified by

                                       21
<PAGE>

the Servicer, from the Reserve Account and deposit them in the Collection
Account to cover any shortfall. Such payment shall be deemed to have been made
by the Servicer pursuant to Section 4.4 for purposes of making distributions
pursuant to this Agreement, but shall not otherwise satisfy the Servicer's
obligation to deliver the amount of the Advances to the Indenture Trustee, and
the Servicer shall within two (2) Business Days replace any funds in the Reserve
Account so used.

      (c) Following the payment in full of the aggregate principal amount of the
Notes and of all other amounts owing or to be distributed hereunder or under the
Indenture or the Trust Agreement to Noteholders, the Indenture Trustee and the
Owner Trustee, any remaining Reserve Account Property shall be distributed to
the Certificate Distribution Account.

      SECTION 4.8 Net Deposits. For so long as (i) the Bank shall be the
Servicer and (ii) the Servicer shall be entitled pursuant to Section 4.2 to
remit collections on a monthly basis rather than within two (2) Business Days of
receipt, the Bank may make the remittances pursuant to Sections 4.2 and 4.5
above, net of amounts to be distributed to the Bank pursuant to Section 4.6(c).
Nonetheless, the Servicer shall account for all of the above described
remittances and distributions except for the Supplemental Servicing Fee in the
Servicer's Certificate as if the amounts were deposited and/or transferred
separately.

      SECTION 4.9 Statements to Noteholders and Certificateholders. On the
Business Day prior to each Payment Date, the Servicer shall provide to the
Indenture Trustee (with copies to the Rating Agencies, each Note Paying Agent
and the Depositor) for the Indenture Trustee to make available to each
Noteholder of record as of the most recent Record Date and to the Owner Trustee
(with copies to the Rating Agencies and to each Certificate Paying Agent) for
the Owner Trustee to forward to each Certificateholder of record as of the most
recent Record Date a statement based on information in the Servicer's
Certificate furnished pursuant to Section 3.9, setting forth for the Collection
Period relating to such Payment Date the following information as to the Notes
and the Certificates to the extent applicable:

            (i) the amount of such distribution allocable to principal allocable
      to the Notes and to the Certificates;

            (ii) the amount of such distribution allocable to interest allocable
      to the Notes and the Certificates;

            (iii) the amount of such distribution allocable to draws from the
      Reserve Account, if any;

            (iv) the number of receivables and the Pool Balance as of the
      beginning of business on the first day of the preceding Collection Period
      and the close of business on the last day of the preceding Collection
      Period;

            (v) the Specified Reserve Balance as of such Payment Date;

                                       22
<PAGE>

            (vi) the amount of the Servicing Fee paid to the Servicer with
      respect to the related Collection Period and the amount of any unpaid
      Servicing Fees and the change in such amount from that of the prior
      Payment Date;

            (vii) the amounts of the Class A Noteholders' Interest Carryover
      Shortfall and the Class B Noteholders' Interest Carryover Shortfall, if
      any, on such Payment Date and the change in such amounts from the
      preceding Payment Date;

            (viii) the aggregate outstanding principal amount of each Class of
      Notes and the Note Pool Factor for each Class of Notes as of such Payment
      Date;

            (ix) the amount of any previously due and unpaid payment of
      principal of the Notes, and the change in such amount from that of the
      prior Payment Date;

            (x) [reserved];

            (xi) the balance of the Reserve Account on such Payment Date, after
      giving effect to distributions made on such Payment Date and the change in
      such balance from the preceding Payment Date;

            (xii) [reserved];

            (xiii) the aggregate Purchase Amount of Receivables repurchased by
      the Depositor or the Seller or purchased by the Servicer, if any, with
      respect to the related Collection Period;

            (xiv) the amount of Advances, if any, on such Payment Date;

            (xv) the aggregate Collections for the related Collection Period;

            (xvi) the aggregate Principal Balance of the Receivables that became
      designated as Defaulted Receivables during the related Collection Period;

            (xvii) the applicable Record Dates, Interest Period and
      Determination Dates for calculating distributions and the actual Payment
      Date;

            (xviii) the amount of Collections received on the Receivables and
      any other assets of the Trust for the related Collection Period and any
      fees and expenses of the trust paid with respect to the Collection Period;

            (xix) delinquency and loss information for the receivables for the
      related Collection Period; and

            (xx) information on any coverage ratios or performance triggers, if
      applicable, and an indication if such triggers have been reached.

      In addition, such statements may be made available to the Noteholders and
Certificateholders of record by being posted by the Indenture Trustee on its
website at

                                       23
<PAGE>

www.jpmorgan.com/sfr. Access to such statements posted to such website shall be
limited to Noteholders and Certificateholders only. The Indenture Trustee shall
take whatever steps it believes in its sole discretion to be necessary to so
limit access to such statements on such website.

      Each amount set forth on the Payment Date statement pursuant to clauses
(i), (ii), (vi), (vii) and (ix) above shall be expressed as a dollar amount per
$1,000 of original principal amount of a Note.

                                       24
<PAGE>

                                    ARTICLE V

                                  THE DEPOSITOR

      SECTION 5.1 Representations, Warranties and Covenants of Depositor.

      (a) The Depositor makes the following representations and warranties on
which the Issuer is deemed to have relied in acquiring the Trust Property. The
representations and warranties speak as of the execution and delivery of this
Agreement and shall survive the conveyance of the Trust Property, by the
Depositor to the Issuer and the pledge thereof by the Issuer to the Indenture
Trustee pursuant to the Indenture:

      (i) Organization and Good Standing. The Depositor is a limited liability
company duly formed, validly existing and in good standing under the laws of the
State of Delaware, with all requisite power and authority to own its properties
and to conduct its business as such properties are currently owned and such
business is presently conducted, and had at all relevant times, and has, power,
authority, and legal right to acquire and own the Receivables.

      (ii) Power and Authority. The Depositor has all requisite power and
authority to execute and deliver this Agreement and the other Basic Documents to
which it is a party and to carry out their terms; the Depositor has full power
and authority to sell and assign the property to be sold, and assigned to and
deposited with the Issuer, and the Depositor shall have duly authorized such
sale and assignment to the Issuer by all necessary limited liability company
action; and the execution, delivery, and performance of this Agreement and the
other Basic Documents to which the Depositor is a party have been duly
authorized, executed and delivered by the Depositor by all necessary limited
liability company action.

      (iii) Binding Obligations. This Agreement, when duly executed and
delivered by the other parties hereto, constitutes a legal, valid, and binding
obligation of the Depositor enforceable against the Depositor in accordance with
its terms, except as the enforceability hereof may be limited by bankruptcy,
insolvency, reorganization, or other similar laws affecting creditors' rights in
general and by general principles of equity, regardless of whether such
enforceability is considered in a proceeding in equity or at law.

      (iv) No Violation. The consummation of the transactions contemplated by
this Agreement and the other Basic Documents to which the Depositor is a party
and the fulfillment of the terms hereof and thereof do not (i) conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time) a default under, the limited liability
company agreement of the Depositor, or conflict with or breach any of the
material terms or provisions of, or constitute (with or without notice or lapse
of time) a default under, any indenture, agreement, or other instrument to which
the Depositor is a party or by which it is bound, (ii) result in the creation or
imposition of any lien upon any of its properties pursuant to the terms of any
such indenture, agreement, or other instrument, or (iii) violate any law or, to
the best of the Depositor's knowledge, any order, rule, or regulation applicable
to the

                                       25
<PAGE>

Depositor of any court or of any federal or state regulatory body,
administrative agency, or other governmental instrumentality having jurisdiction
over the Depositor or its properties.

      (v) No Proceedings. There are no proceedings or investigations pending,
or, to the best of the Depositor's knowledge, threatened, before any court,
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Depositor or its properties (i) asserting the
invalidity of this Agreement, any of the other Basic Documents or the
Securities, (ii) seeking to prevent the issuance of the Securities or the
consummation of any of the transactions contemplated by this Agreement or the
other Basic Documents, (iii) seeking any determination or ruling that might
materially and adversely affect the performance by the Depositor of its
obligations under, or the validity or enforceability of, this Agreement, any of
the other Basic Documents or the Securities or (iv) relating to the Depositor
and which might adversely affect the federal income tax attributes of the
Securities.

      (vi) Security Interest Representation. This Agreement creates a valid and
continuing security interest (as defined in the applicable UCC) in the
Receivables that is in existence in favor of the Issuer, which security interest
is prior to all other liens, and is enforceable as such as against creditors of
and purchasers from the Depositor, which security interest will be assigned to
the Indenture Trustee pursuant to the Indenture. Other than the security
interest granted to the Issuer, the Depositor has not pledged, assigned,
transferred or sold, a security interest in, or otherwise conveyed any of the
Receivables, the Depositor has not authorized the filing of and is not aware of
any financing statements against the Depositor that include a description of
such Receivables other than the financing statements in favor of the Issuer and
the Indenture Trustee, and the Depositor is not aware of any judgment or tax
lien filing against it.

      (b) The Depositor covenants that it shall provide, or cause the Servicer
to provide, in a timely manner the certifications required by Section 302 of the
Sarbanes-Oxley Act of 2002.

      SECTION 5.2 Liability of Depositor; Indemnities. The Depositor shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Depositor under this Agreement, and hereby agrees to the
following:

      (a) The Depositor shall indemnify, defend, and hold harmless the Issuer,
the Owner Trustee and the Indenture Trustee from and against any taxes that may
at any time be asserted against any such Person with respect to, and as of the
date of, the conveyance of the Receivables to the Issuer or the issuance and
original sale of the Notes and the Certificates, including any sales, gross
receipts, general corporation, tangible personal property, privilege, or license
taxes (but, in the case of the Issuer, not including any taxes asserted with
respect to ownership of the Receivables or federal or state income taxes arising
out of the transactions contemplated by this Agreement and the other Basic
Documents) and costs and expenses in defending against the same.

      (b) The Depositor shall indemnify, defend, and hold harmless the Issuer,
the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholders from and against any loss, liability or expense incurred by
reason of (i) the Depositor's willful misfeasance, bad faith, or negligence in
the performance of its duties under this Agreement, or by reason of reckless
disregard of its obligations and duties under this Agreement and (ii) the
Depositor's violation of

                                       26
<PAGE>

federal or State securities laws in connection with the registration or the sale
of the Notes or the Certificates.

      (c) Indemnification under this Section 5.2 shall survive the resignation
or removal of the Owner Trustee or the Indenture Trustee and the termination of
this Agreement and shall include, without limitation, reasonable fees and
expenses of counsel and expenses of litigation. If the Depositor shall have made
any indemnity payments pursuant to this Section 5.2 and the Person to or on
behalf of whom such payments are made thereafter shall collect any of such
amounts from others, such Person shall promptly repay such amounts to the
Depositor, without interest.

      SECTION 5.3 Merger or Consolidation of, or Assumption of the Obligations
of Depositor. Any Person (i) into which the Depositor may be merged or
consolidated, (ii) resulting from any merger, conversion, or consolidation to
which the Depositor shall be a party, or (iii) succeeding to the business of the
Depositor, which Person in any of the foregoing cases executes an agreement of
assumption to perform every obligation of the Depositor under this Agreement,
will be the successor to the Depositor under this Agreement without the
execution or filing of any document or any further act on the part of any of the
parties to this Agreement. The Depositor shall provide notice of any merger,
conversion, consolidation, or succession pursuant to this Section 5.3 to the
Rating Agencies.

      SECTION 5.4 Limitation on Liability of Depositor and Others. The Depositor
and any officer or employee or agent of the Depositor may rely in good faith on
the advice of counsel or on any document of any kind, prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Depositor shall not be under any obligation to appear in, prosecute, or
defend any legal action that shall not be incidental to its obligations under
this Agreement, and that in its opinion may involve it in any expense or
liability.

      SECTION 5.5 Depositor May Own Notes or Certificates. The Depositor, and
any Affiliate of the Depositor, may in its individual or any other capacity
become the owner or pledgee of Notes or Certificates with the same rights as it
would have if it were not the Depositor or an Affiliate thereof, except as
otherwise expressly provided herein or in the other Basic Documents. Except as
set forth herein or in the other Basic Documents, Notes and Certificates so
owned by or pledged to the Depositor or any such Affiliate shall have an equal
and proportionate benefit under the provisions of this Agreement and the other
Basic Documents, without preference, priority, or distinction as among all of
the Notes and Certificates.

                                   ARTICLE VI

                                  THE SERVICER

      SECTION 6.1 Representations of Servicer. The Servicer makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Trust Property. The representations speak as of the execution and delivery of
this Agreement and shall survive the conveyance of the Trust Property to the
Issuer and the pledge thereof by the Issuer pursuant to the Indenture:

                                       27
<PAGE>

      (a) Organization and Good Standing. The Servicer has been duly organized
and is validly existing as a federally chartered savings association or
corporation and is in good standing under the laws of the United States of
America or its state of incorporation, with power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted, and had at all relevant times, and
has, power, authority, and legal right to acquire, own, sell, and service the
Receivables and to hold the Receivable Files as custodian on behalf of the
Indenture Trustee.

      (b) Power and Authority. The Servicer has the power and authority to
execute and deliver this Agreement and the other Basic Documents to which it is
a party and to carry out their terms; and the execution, delivery, and
performance of this Agreement and the other Basic Documents to which it is a
party shall have duly authorized, executed and delivered by the Servicer by all
necessary corporate action.

      (c) Binding Obligations. This Agreement constitutes a legal, valid, and
binding obligation of the Servicer enforceable in accordance with their terms
subject, as to enforcement, to applicable bankruptcy, insolvency,
reorganization, liquidation or other similar laws and equitable principles
relating to or affecting the enforcement of creditors' rights in general and by
general principles of equity regardless of whether such enforceability is
considered in a proceeding in equity or law.

      (d) No Violation. The consummation of the transactions contemplated by
this Agreement and the other Basic Documents to which the Servicer is a party
and the fulfillment of the terms hereof do not conflict with, result in any
breach of any of the terms and provisions of, nor constitute (i) (with or
without notice or lapse of time) a default under, the articles of association or
bylaws of the Servicer, or conflict with or breach any of the material terms or
provisions of, or constitute (with or without notice or lapse of time) a default
under, any indenture, agreement, or other instrument to which the Servicer is a
party or by which it shall be bound, (ii) result in the creation or imposition
of any lien upon any of its properties pursuant to the terms of any such
indenture, agreement, or other instrument or (iii) violate any law or, to the
best of the Servicer's knowledge, any order, rule, or regulation applicable to
the Servicer of any court or of any federal or state regulatory body,
administrative agency, or other governmental instrumentality having jurisdiction
over the Servicer or its properties.

      (e) No Proceedings. There are no proceedings or investigations pending, or
to the best of the Servicer's knowledge, threatened, before any court,
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Servicer or its properties (i) asserting the
invalidity of this Agreement, any of the other Basic Documents or the
Securities, (ii) seeking to prevent the issuance of the Securities or the
consummation of any of the transactions contemplated by this Agreement and the
other Basic Documents, (iii) seeking any determination or ruling that might
materially and adversely affect the performance by the Servicer of its
obligations under, or the validity or enforceability of, this Agreement, any of
the other Basic Documents or the Securities, or (iv) relating to the Servicer
and which might adversely affect the federal income tax attributes of the
Securities.

                                       28
<PAGE>

      (f) Fidelity Bond. The Servicer maintains a fidelity bond in such form and
amount as is customary for banks acting as custodian of funds and documents in
respect of retail automotive installment sales contracts.

      SECTION 6.2 Indemnities of Servicer. The Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer under this Agreement, and hereby agrees to the
following:

      (a) The Servicer shall defend, indemnify and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee, the Noteholders, the Certificateholders
and the Depositor from and against any and all costs, expenses, losses, damages,
claims and liabilities, arising out of or resulting from the use, ownership or
operation by the Servicer or any Affiliate thereof of a Financed Vehicle.

      (b) The Servicer shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Depositor and the Indenture Trustee from and against any
taxes that may at any time be asserted against any such Person with respect to
the transactions contemplated herein or in the other Basic Documents, if any,
including, without limitation, any sales, gross receipts, general corporation,
tangible personal property, privilege, or license taxes (but, in the case of the
Issuer, not including any taxes asserted with respect to, and as of the date of,
the conveyance of the Receivables to the Issuer or the issuance and original
sale of the Notes and the Certificates, or asserted with respect to ownership of
the Receivables, or federal or state income taxes arising out of the
transactions contemplated by this Agreement and the other Basic Documents) and
costs and expenses in defending against the same.

      (c) The Servicer shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee, the Noteholders, the Certificateholders
and the Depositor from and against any and all costs, expenses, losses, claims,
damages, and liabilities to the extent that such cost, expense, loss, claim,
damage, or liability arose out of, or was imposed upon any such Person through,
the negligence, willful misfeasance, or bad faith of the Servicer in the
performance of its duties under this Agreement or any other Basic Document to
which it is a party, or by reason of reckless disregard of its obligations and
duties under this Agreement or any other Basic Document to which it is a party.

      (d) The Servicer shall indemnify, defend, and hold harmless the Owner
Trustee and the Indenture Trustee, as applicable, from and against all costs,
expenses, losses, claims, damages, and liabilities arising out of or incurred in
connection with the acceptance or performance of the trusts and duties contained
herein and in the other Basic Documents, if any, except to the extent that such
cost, expense, loss, claim, damage, or liability: (i) shall be due to the
willful misfeasance, bad faith, or negligence (except for errors in judgment) of
the Owner Trustee or the Indenture Trustee, as applicable; (ii) in the case of
the Owner Trustee, shall arise from the Owner Trustee's breach of any of its
representations or warranties set forth in Section 6.9 of the Trust Agreement
or, in the case of the Indenture Trustee, from the Indenture Trustee's breach of
any of its representations or warranties set forth in the Indenture; or (iii) in
the case of the Indenture Trustee, shall arise out of or be incurred in
connection with the performance by the Indenture Trustee of the duties of a
Successor Servicer hereunder.

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<PAGE>

      (e) Indemnification under this Section 6.2 by the Bank (or any successor
thereto pursuant to Section 7.2) as Servicer, with respect to the period such
Person was the Servicer, shall survive the termination of such Person as
Servicer or a resignation by such Person as Servicer as well as the termination
of this Agreement or the resignation or removal of the Owner Trustee or the
Indenture Trustee and shall include reasonable fees and expenses of counsel and
expenses of litigation. If the Servicer shall have made any indemnity payments
pursuant to this Section 6.2 and the Person to or on behalf of whom such
payments are made thereafter shall collect any of such amounts from others, such
Person shall promptly repay such amounts to the Servicer, without interest.

      SECTION 6.3 Merger or Consolidation of, or Assumption of the Obligations
of Servicer. Any Person (i) into which the Servicer may be merged or
consolidated, (ii) resulting from any merger, conversion, or consolidation to
which the Servicer shall be a party, (iii) succeeding to the business of the
Servicer or (iv) 50% or more of the equity of which is owned, directly or
indirectly, by the United Services Automobile Association, which Person in any
of the foregoing cases executes an agreement of assumption to perform every
obligation of the Servicer under this Agreement, will be the successor to the
Servicer under this Agreement without the execution or filing of any paper or
any further act on the part of any of the parties to this Agreement. The
Servicer shall provide prior notice of the effective date of any merger,
conversion, consolidation or succession pursuant to this Section 6.3 to the
Rating Agencies, the Indenture Trustee and the Depositor. The Servicer shall
provide the Depositor in writing such information as reasonably requested by the
Depositor to comply with its Exchange Act reporting obligations with respect to
a successor Servicer.

      SECTION 6.4 Limitation on Liability of Servicer and Others. (a) Neither
the Servicer nor any of the directors or officers or employees or agents of the
Servicer shall be under any liability to the Issuer, the Noteholders or the
Certificateholders, except as provided under this Agreement, for any action
taken or for refraining from the taking of any action 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 or bad faith in the
performance of duties or by reason of reckless disregard of obligations and
duties under this Agreement, or by reason of negligence in the performance of
its duties under this Agreement. The Servicer and any director, officer or
employee or agent of the Servicer may rely in good faith on any Opinion of
Counsel or on any Officer's Certificate of the Depositor or certificate of
auditors believed to be genuine and to have been signed by the proper party in
respect of any matters arising under this Agreement.

      (b) Except as provided in this Agreement, the Servicer shall not be under
any obligation to appear in, prosecute, or defend any legal action that shall
not be incidental to its duties to service the Receivables in accordance with
this Agreement, and that in its opinion may involve it in any expense or
liability; provided, however, that the Servicer may undertake any reasonable
action that it may deem necessary or desirable in respect of this Agreement and
the rights and duties of the parties to this Agreement and the interests of the
Noteholders and Certificateholders under this Agreement. 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. Any amounts due the Servicer

                                       30
<PAGE>

pursuant to this subsection shall be payable on a Payment Date from the
Available Collections on deposit in the Collection Account only after all
payments required to be made on such date to the Noteholders, the
Certificateholders and the Servicer have been made, and deposits of any amount
required to be deposited into the Reserve Account pursuant to Section 4.6(c)(vi)
to maintain the amount on deposit therein (exclusive of investment income and
earnings on amounts on deposit therein) at the Specified Reserve Balance on such
date have been made.

      (c) The Servicer and any director or officer or employee or agent of the
Servicer shall be indemnified by the Trust and held harmless against any loss,
liability, or expense including reasonable attorneys' fees and expenses incurred
in connection with any legal action relating to the performance of the
Servicer's duties under this Agreement, other than (i) any loss or liability
otherwise reimbursable pursuant to this Agreement; (ii) any loss, liability, or
expense incurred solely by reason of the Servicer's willful misfeasance,
negligence, or bad faith in the performance of its duties hereunder or by reason
of reckless disregard of its obligations and duties under this Agreement; and
(iii) any loss, liability, or expense for which the Issuer is to be indemnified
by the Servicer under this Agreement. Any amounts due the Servicer pursuant to
this subsection shall be payable on a Payment Date from the Available Funds on
deposit in the Collection Account only after all payments required to be made on
such date to the Noteholders, the Certificateholders and the Servicer have been
made, and deposits of any amount required to be deposited into the Reserve
Account pursuant to Section 4.6(c)(vi) to maintain the amount on deposit therein
(exclusive of investment income and earnings on amounts on deposit therein) at
the Specified Reserve Balance on such date have been made.

      SECTION 6.5 Delegation of Duties. The Servicer may at any time perform
specific duties as servicer under this Agreement through sub-contractors;
provided that no such delegation or subcontracting shall relieve the Servicer of
its responsibilities with respect to such duties as to which the Servicer shall
remain primarily responsible and the Servicer shall be solely responsible for
the fees of any such sub-contractors.

      SECTION 6.6 Servicer Not to Resign as Servicer. Subject to the provisions
of Section 6.3, the Servicer shall not resign from its obligations and duties
under this Agreement except upon determination that the performance of its
duties under this Agreement shall no longer be permissible under applicable law.
Notice of any such determination permitting the resignation of the Servicer
shall be communicated to the Owner Trustee, the Indenture Trustee and the
Depositor at the earliest practicable time (and, if such communication is not in
writing, shall be confirmed in writing at the earliest practicable time) and any
such determination shall be evidenced by an Opinion of Counsel to such effect
delivered to the Owner Trustee and the Indenture Trustee concurrently with or
promptly after such notice. No such resignation shall become effective until the
Indenture Trustee or a Successor Servicer shall have (i) taken the actions
required by Section 7.1(b), (ii) assumed the responsibilities and obligations of
the Servicer in accordance with Section 7.2 and (iii) provided in writing the
information reasonably requested by the Depositor to comply with its reporting
obligations under the Exchange Act with respect to a replacement Servicer.

      SECTION 6.7 Servicer May Own Notes or Certificates. The Servicer, and any
Affiliate of the Servicer, may, in its individual or any other capacity, become
the owner or

                                       31
<PAGE>

pledgee of Notes or Certificates with the same rights as it would have if it
were not the Servicer or an Affiliate thereof, except as otherwise expressly
provided herein or in the other Basic Documents. Except as set forth herein or
in the other Basic Documents, Notes and Certificates so owned by or pledged to
the Servicer or such Affiliate shall have an equal and proportionate benefit
under the provisions of this Agreement, without preference, priority or
distinction as among all of the Notes and Certificates.

                                   ARTICLE VII

                              SERVICING TERMINATION

      SECTION 7.1 Events of Servicing Termination. (a) If any one of the
following events ("Events of Servicing Termination") shall occur and be
continuing:

            (i) Any failure by the Servicer (or, so long as the Seller is the
      Servicer, the Seller) to deliver to the Owner Trustee or the Indenture
      Trustee any proceeds or payment required to be so delivered under the
      terms of the Notes and the Certificates and this Agreement that shall
      continue unremedied for a period of five (5) Business Days after written
      notice of such failure is received by the Servicer or the Seller, as the
      case may be, from the Owner Trustee or the Indenture Trustee or after
      discovery of such failure by an officer of the Servicer or the Seller, as
      the case may be; or

            (ii) Failure on the part of the Servicer (or, so long as the Seller
      is the Servicer, the Seller) duly to observe or to perform in any material
      respect any other covenants or agreements, as the case may be, set forth
      in the Notes, the Certificates or in this Agreement, which failure shall
      (A) materially and adversely affect the rights of Noteholders or
      Certificateholders and (B) continue unremedied for a period of ninety (90)
      days after the date on which written notice of such failure, requiring the
      same to be remedied, shall have been given (1) to the Servicer or the
      Seller, as the case may be, by the Owner Trustee or the Indenture Trustee,
      or (2) to the Owner Trustee, the Indenture Trustee, the Seller and the
      Servicer by the Noteholders of Notes evidencing not less than 25% of the
      principal amount of the Controlling Class or, if no Notes are outstanding,
      by Certificateholders of Certificates evidencing not less than 25% of the
      Percentage Interests evidenced by the Certificates; or

            (iii) So long as the Bank or another depository institution is not
      the Servicer, the entry of a decree or order by a court or agency or
      supervisory authority having jurisdiction in the premises for the
      appointment of a conservator, receiver, or liquidator for the Servicer in
      any insolvency, readjustment of debt, marshalling of assets and
      liabilities, or similar proceedings, or for the winding up or liquidation
      of its respective affairs, and the continuance of any such decree or order
      unstayed and in effect for a period of sixty (60) consecutive days; or

            (iv) So long as the Bank or another depository institution is not
      the Servicer, the consent by the Servicer 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 of or relating to substantially all of its
      property;

                                       32
<PAGE>

      or 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 voluntary suspend payment of its
      obligations or become insolvent;

then the Indenture Trustee shall promptly notify each Rating Agency, and in each
and every case, so long as an Event of Servicing Termination shall not have been
remedied, either the Indenture Trustee or the holders of Notes evidencing not
less than a majority of the principal amount of the Controlling Class
Outstanding (or, if no Notes are Outstanding, Certificates evidencing not less
than a majority of the Percentage Interests evidenced by the Certificates), by
notice then given in writing to the Servicer (and to the Indenture Trustee and
the Owner Trustee if given by the Noteholders and to the Owner Trustee if given
by the Certificateholders) (with a copy to the Rating Agencies) may terminate
all of the rights and obligations of the Servicer under this Agreement. On or
after the receipt by the Servicer of such written notice, all authority and
power of the Servicer under this Agreement, whether with respect to the Notes,
the Certificates or the Trust Property or otherwise, shall pass to and be vested
in the Indenture Trustee or such Successor Servicer as may be appointed under
Section 7.2; and, without limitation, the Indenture Trustee and the Owner
Trustee are hereby authorized and empowered to execute and deliver, on behalf of
the predecessor Servicer, as attorney-in-fact or otherwise, any and all
documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the Receivables
and related documents, or otherwise.

      (b) Upon termination of the Servicer under Section 7.1(a), the predecessor
Servicer shall cooperate with the Indenture Trustee, the Owner Trustee and such
Successor Servicer in effecting the termination of the responsibilities and
rights of the predecessor Servicer under this Agreement, including the transfer
to the Indenture Trustee or such Successor Servicer for administration of all
cash amounts that shall at the time be held by the predecessor Servicer for
deposit, or shall thereafter be received with respect to a Receivable and the
delivery of the Receivable Files and the related accounts and records maintained
by the Servicer. All reasonable costs and expenses (including attorneys' fees)
incurred in connection with transferring the Receivable Files to the Successor
Servicer and amending this Agreement to reflect such succession as Servicer
pursuant to this Section 7.1 shall be paid by the predecessor Servicer upon
presentation of reasonable documentation of such costs and expenses.

      SECTION 7.2 Appointment of Successor Servicer. (a) Upon the Servicer's
receipt of notice of termination pursuant to Section 7.1 or the Servicer's
resignation in accordance with the terms of this Agreement, the predecessor
Servicer shall continue to perform its functions as Servicer under this
Agreement, in the case of termination, only until the date specified in such
termination notice or, if no such date is specified in a notice of termination,
until receipt of such notice and, in the case of resignation, until the later of
(x) the date 90 days from the delivery to the Indenture Trustee and the Owner
Trustee of written notice of such resignation (or written confirmation of such
notice) in accordance with the terms of this Agreement and (y) the date upon
which the predecessor Servicer shall become unable to act as Servicer, as
specified in the notice of resignation and accompanying Opinion of Counsel. In
the event of the Servicer's resignation or termination hereunder, the Issuer
shall appoint a Successor Servicer, and the

                                       33
<PAGE>

Successor Servicer shall accept its appointment by a written assumption in form
acceptable to the Owner Trustee and the Indenture Trustee (with a copy to each
Rating Agency) and shall provide the Depositor in writing with such information
as reasonably requested by the Depositor to comply with its reporting
obligations under the Exchange Act with respect to a replacement servicer. In
the event that a Successor Servicer has not been appointed at the time when the
predecessor Servicer has ceased to act as Servicer in accordance with this
Section 7.2, the Indenture Trustee without further action shall automatically be
appointed the Successor Servicer and the Indenture Trustee shall be entitled to
the Servicing Fee and shall provide the Depositor in writing with such
information as reasonably requested by the Depositor to comply with its
reporting obligations under the Exchange Act with respect to a Master Servicer.
The Indenture Trustee may resign as the Servicer by giving written notice of
such resignation to the Issuer and in such event shall be released from such
duties and obligations, such release not to be effective until the date a
Successor Servicer enters into a written assumption as provided in this Section.
Upon delivery of any such notice to the Issuer, the Issuer shall obtain a new
servicer as the Successor Servicer in accordance with this Section.
Notwithstanding the above, if the Indenture Trustee shall be legally unable so
to act or if, within 30 days after the delivery of its notice of resignation,
the Issuer shall not have obtained a Successor Servicer, the Indenture Trustee
shall appoint, or petition a court of competent jurisdiction to appoint, any
established institution, having a net worth of not less than $100,000,000 and
whose regular business shall include the servicing of automotive receivables, as
the successor to the Servicer under this Agreement; provided that the Rating
Agency Condition shall be satisfied in connection with such appointment.

      (b) Upon appointment, the Successor Servicer shall be the successor in all
respects to the predecessor Servicer and shall be subject to all the
responsibilities, duties, and liabilities arising thereafter relating thereto
placed on the predecessor Servicer, by the terms and provisions of this
Agreement.

      (c) In connection with such appointment, subject to Section 3.7(e) of the
Indenture, the Indenture Trustee may make such arrangements for the compensation
of such Successor Servicer out of payments on Receivables as it and such
Successor Servicer shall agree; provided, however, that no such compensation
shall be in excess of that permitted the predecessor Servicer under this
Agreement. The Indenture Trustee and such Successor Servicer shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any
such succession.

      SECTION 7.3 Repayment of Advances. If the identity of the Servicer shall
change, the predecessor Servicer shall be entitled to receive to the extent of
available funds reimbursement for Outstanding Advances pursuant to Section 4.3
and 4.4, in the manner specified in Section 4.6, with respect to all Advances
made by the predecessor Servicer.

      SECTION 7.4 Notification to Noteholders and Certificateholders. Upon any
termination of, or appointment of a successor to, the Servicer pursuant to this
Article VII, the Indenture Trustee shall give prompt written notice thereof to
Noteholders, and the Owner Trustee shall give prompt written notice thereof to
Certificateholders at their respective addresses of record and to each Rating
Agency.

                                       34
<PAGE>

      SECTION 7.5 Waiver of Past Events of Servicing Termination. The holders of
Notes evidencing not less than a majority of the principal amount of the
Controlling Class (or, if no Notes are Outstanding, holders of Certificates
evidencing not less than a majority of the Percentage Interests evidenced by the
Certificates) may, on behalf of all Noteholders and Certificateholders, waive
any Event of Servicing Termination hereunder and its consequences, except an
event resulting from the failure to make any required deposits to or payments
from any of the Trust Accounts or the Certificate Distribution Account in
accordance with this Agreement, which shall require the unanimous vote of all
Holders of Outstanding Securities. Upon any such waiver of a past Event of
Servicing Termination, such Event of Servicing Termination shall cease to exist,
and shall be deemed to have been remedied for every purpose of this Agreement.
No such waiver shall extend to any subsequent or other event or impair any right
consequent thereon. The Issuer shall provide written notice of any such waiver
to the Rating Agencies.

                                  ARTICLE VIII

                                   TERMINATION

      SECTION 8.1 Optional Purchase of All Receivables. As of the last day of
any Collection Period as of which the Pool Factor shall be equal to or less than
the Optional Purchase Percentage, the Servicer shall have the option to purchase
the Trust Property from the Trust. To exercise such option, the Servicer shall
deposit pursuant to Section 4.5 in the Collection Account an amount equal to the
lesser of (i) the aggregate Purchase Amount for the Receivables and (ii) the
fair market value of the Receivables, and shall succeed to all interests in and
to the Trust. Notwithstanding the foregoing, the Servicer shall not be permitted
to exercise such option unless the amount to be deposited in the Collection
Account pursuant to the preceding sentence is greater than or equal to the sum
of the outstanding principal amount of the Notes and all accrued but unpaid
interest (including any over due interest) thereon. The amount deposited in the
Collection Account pursuant to this Section 8.1 shall be used on the next
Payment Date to make payments in full to Noteholders and Certificateholders in
the manner set forth in Article IV. The purchase of the Trust Property pursuant
to this Section shall not be permitted unless either (i) the Servicer's
long-term unsecured debt is rated at the time of such purchase at least Baa3 by
Moody's or (ii) the Servicer provides to the Indenture Trustee and the Owner
Trustee an Opinion of Counsel in form reasonably satisfactory to the Indenture
Trustee and the Owner Trustee and in form and substance satisfactory to Moody's
to the effect that such purchase will not constitute a fraudulent transfer of
assets of the Servicer under applicable state and federal law; provided that
this sentence may be deleted or modified with the consent of Moody's and without
the consent of any Securityholder, the Indenture Trustee or the Owner Trustee.

      SECTION 8.2 Succession Upon Satisfaction and Discharge of Indenture.
Following the satisfaction and discharge of the Indenture and the payment in
full of the principal of and interest on the Notes, to the extent permitted by
applicable law and until the payment of all amounts owing or to be distributed
hereunder to the Certificateholders, the Indenture Trustee will continue to
carry out its obligations hereunder as agent for the Owner Trustee, including
without limitation making distributions from the Collection Account in
accordance with Section 4.6, making withdrawals from the Reserve Account in
accordance with Section 4.5(b) and Section 4.7.

                                       35
<PAGE>

                                   ARTICLE IX

                            MISCELLANEOUS PROVISIONS

      SECTION 9.1 Amendment. (a) This Agreement may be amended by the Depositor,
the Servicer and the Issuer, with the consent of the Indenture Trustee and the
Owner Trustee to the extent that their respective rights or obligations may be
affected thereby (which consent may not be unreasonably withheld), but without
the consent of any of the Noteholders or the Certificateholders, to cure any
ambiguity, to correct or supplement any provisions in this Agreement, or to add
any provisions to or change or eliminate any provisions or to modify the rights
of the Noteholders or Certificateholders; provided, however, that (i) such
action shall not, as evidenced by either an Opinion of Counsel or an Officer's
Certificate delivered to the Owner Trustee and the Indenture Trustee, materially
and adversely affect the interests of any Noteholder or Certificateholder and
(ii) the Rating Agency Condition shall be satisfied.

      (b) This Agreement may also be amended from time to time by the Depositor,
the Servicer and the Issuer, with the consent of the Indenture Trustee and the
Owner Trustee to the extent that their respective rights or obligations may be
affected thereby (which consent may not be unreasonably withheld) and with the
consent of (i) the Noteholders of Notes evidencing not less than a majority of
the principal amount of each Class of Notes and (ii) the Certificateholders of
Certificates evidencing not less than a majority of the Percentage Interests
evidenced by the Certificates (which consent of any holder of a Note or holder
of a Certificate given pursuant to this Section 9.1 or pursuant to any other
provision of this Agreement shall be conclusive and binding on such Note or
Certificate, as the case may be, and on all future holders of such Note or
holders of such Certificate, as the case may be, and of any Note or Certificate,
as applicable, issued upon the transfer thereof or in exchange thereof or in
lieu thereof whether or not notation of such consent is made upon such Note or
the Certificate), 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 Noteholders or the Certificateholders; provided,
however, that no such amendment shall (A) increase or reduce in any manner the
amount of, or accelerate or delay the timing of, or change the allocation or
priority of, collections of payments on Receivables or distributions that shall
be required to be made on any Note or Certificate or change any Note Interest
Rate or the amount required to be on deposit in the Reserve Account, without the
consent of all Noteholders or Certificateholders or (B) reduce the aforesaid
percentage required to consent to any such amendment, without the consent of the
holders of all Notes and holders of all Certificates. Notwithstanding the
foregoing, the Depositor may decrease the Specified Reserve Balance upon
satisfaction of the Rating Agency Condition without the consent of any other
party hereto or any Noteholder or Certificateholder.

      (c) Prior to the execution of any such amendment the Servicer will provide
written notification of the substance of such amendment to each Rating Agency.

      (d) Promptly after the execution of any such amendment, the Servicer shall
furnish written notification of the substance of such amendment to each
Certificateholder, the Indenture Trustee and each Rating Agency and the
Indenture Trustee will provide notification of the substance of such amendment
to each Noteholder. It shall not be necessary for the consent of

                                       36
<PAGE>

Noteholders or the Certificateholders pursuant to this Section 9.1 to approve
the particular form of any proposed amendment or consent, but it shall be
sufficient if such consent shall approve the substance thereof. The manner of
obtaining such consents (and any other consents of Noteholders and
Certificateholders provided for in this Agreement) and of evidencing the
authorization of the execution thereof by Noteholders and Certificateholders
shall be subject to such reasonable requirements as the Owner Trustee and the
Indenture Trustee may prescribe, including the establishment of record dates
pursuant to the Note Depository Agreement.

      (e) Prior to the execution of any amendment to this Agreement, the Owner
Trustee and the Indenture Trustee shall be entitled to receive and rely upon an
Opinion of Counsel stating that the execution of such amendment is authorized or
permitted by this Agreement and the Opinion of Counsel referred to in Section
9.2(i)(1). The Owner Trustee or the Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects such Owner Trustee's
or Indenture Trustee's own rights, duties or immunities under this Agreement or
otherwise.

      SECTION 9.2 Protection of Title to Trust Property. (a) The Depositor and
the Seller shall file such financing statements and cause to be filed such
continuation statements, all in such manner and in such places as may be
required by law fully to preserve, maintain, and protect the interest of the
Issuer and the Indenture Trustee for the benefit of the Noteholders in the
Receivables and in the proceeds thereof. The Depositor or the Seller, as
applicable, shall deliver (or cause to be delivered) to the Owner Trustee and
the Indenture Trustee file-stamped copies of, or filing receipts for, any
document filed as provided above, as soon as available following such filing.

      (b) None of the Depositor, the Seller or the Servicer shall change its
name, identity, or corporate structure in any manner that would, could, or might
make any financing statement or continuation statement filed by the Seller or
the Depositor in accordance with paragraph (a) above seriously misleading within
the meaning of ss. 9-506 of the UCC, unless it shall have given the Owner
Trustee and the Indenture Trustee at least 10 days' prior written notice
thereof, with a copy to the Rating Agencies, and shall have promptly filed
appropriate amendments to all previously filed financing statements or
continuation statements.

      (c) The Depositor, the Seller and the Servicer shall give the Owner
Trustee and the Indenture Trustee at least ten (10) days' prior written notice
of any relocation of its principal executive office or change in the
jurisdiction under whose laws it is formed if, as a result of such relocation or
change, the applicable provisions of the UCC would require the filing of any
amendment of any previously filed financing or continuation statement or of any
new financing statement and shall promptly file any such amendment or new
financing statement. The Servicer shall at all times maintain each office from
which it shall service Receivables, and its principal executive office, within
the United States of America.

      (d) The Servicer shall maintain accounts and records as to each Receivable
accurately and in sufficient detail to permit (i) the reader thereof to know at
any time the status of such Receivable, including payments and recoveries made
and payments owing (and the nature of each) and (ii) reconciliation between
payments or recoveries on (or with respect to) each

                                       37
<PAGE>

Receivable and the amounts from time to time deposited in the Collection Account
and the Reserve Account in respect of such Receivable.

      (e) The Servicer shall maintain its computer systems so that, from and
after the time of conveyance under this Agreement of the Receivables to the
Issuer, the Servicer's master computer records (including any back-up archives)
that refer to a Receivable shall indicate clearly, by numerical code or
otherwise, that such Receivable is owned by the Issuer and has been pledged to
the Indenture Trustee pursuant to the Indenture. Indication of the Issuer's and
the Indenture Trustee's interest in a Receivable shall not be deleted from or
modified on the Servicer's computer systems until, and only until, the
Receivable shall have been paid in full or repurchased.

      (f) If at any time the Seller or the Servicer shall propose to sell, grant
a security interest in, or otherwise transfer any interest in automotive
receivables to any prospective purchaser, lender, or other transferee, the
Servicer shall give to such prospective purchaser, lender, or other transferee
computer tapes, records, or print-outs (including any restored from back-up
archives) that, if they shall refer in any manner whatsoever to any Receivable,
shall indicate clearly that such Receivable has been conveyed to and is owned by
the Issuer and has been pledged to the Indenture Trustee.

      (g) The Servicer, upon receipt of reasonable prior notice, shall permit
the Owner Trustee, the Indenture Trustee and their respective agents at any time
during normal business hours to inspect, audit, and make copies of and to obtain
abstracts from the Servicer's records regarding any Receivable.

      (h) Upon request, the Servicer shall furnish to the Owner Trustee and the
Indenture Trustee, within five (5) Business Days, a list of all Receivables (by
contract number and name of Obligor) then owned by the Issuer, together with a
reconciliation of such list to the Schedule of Receivables and to each of the
Servicer's Certificates furnished before such request indicating removal of
Receivables from the Trust.

      (i) The Servicer shall deliver to the Owner Trustee and the Indenture
Trustee:

            (1) promptly after the execution and delivery of this Agreement and
      of each amendment thereto, an Opinion of Counsel either (A) stating that,
      in the opinion of such Counsel and subject to customary qualifications and
      assumptions, all financing statements and continuation statements have
      been filed that are necessary fully to preserve and protect the interest
      of the Issuer and the Indenture Trustee in the Receivables, and reciting
      the details of such filings or referring to prior Opinions of Counsel in
      which such details are given, or (B) stating that, in the opinion of such
      Counsel, no such action shall be necessary to preserve and protect such
      interest; and

            (2) within 120 days after the beginning of each calendar year
      beginning with the first calendar year beginning more than three months
      after the Cut-off Date, an Opinion of Counsel, dated as of a date during
      such 120-day period, either (A) stating that, in the opinion of such
      counsel and subject to customary qualifications and assumptions, all
      financing statements and continuation statements have been filed that are
      necessary fully

                                       38
<PAGE>

      to preserve and protect the interest of the Issuer and the Indenture
      Trustee in the Receivables, and reciting the details of such filings or
      referring to prior Opinions of Counsel in which such details are given, or
      (B) stating that, in the opinion of such Counsel, no such action shall be
      necessary to preserve and protect such interest.

      Each Opinion of Counsel referred to in clause (i)(1) or (i)(2) above shall
specify any action necessary (as of the date of such opinion) to be taken in the
following year to preserve and protect such interest.

      (j) For the purpose of facilitating the execution of this Agreement and
for other purposes, this Agreement may be executed in any number of
counterparts, each of which counterparts shall be deemed to be an original, and
all of which counterparts shall constitute but one and the same instrument.

      SECTION 9.3 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICTS 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 9.4 Notices. All demands, notices, and communications under this
Agreement shall be in writing, personally delivered, sent by telecopier, over
night courier or mailed by certified mail, return receipt requested, and shall
be deemed to have been duly given upon receipt (a) in the case of the Seller or
the Servicer, at 10750 McDermott Freeway, San Antonio, Texas 78288, Attention:
Mike Broker, Vice President, or at such other address as shall be designated by
the Seller or the Servicer in a written notice to the Owner Trustee and the
Indenture Trustee, (b) in the case of the Depositor, at 9830 Colonnade Blvd.,
Suite 600, San Antonio, Texas 78230, Attention: Vice President, Legal Counsel,
(c) in the case of the Owner Trustee, at the Corporate Trust Office of the Owner
Trustee, Attention: Rita M. Ritrovato, (d) in the case of the Indenture Trustee,
at the Corporate Trust Office of the Indenture Trustee, (e) in the case of
Moody's Investors Service, Inc., at the following address: Moody's Investors
Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York
10007, and (f) in the case of Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc., at the following address: Standard & Poor's
Rating Services, a division of The McGraw-Hill Companies, Inc., 55 Water Street,
40th Floor, New York, New York 10041, Attention: Asset Backed Surveillance
Department. Any notice required or permitted to be mailed to a Noteholder or
Certificateholder shall be given by first class mail, postage prepaid, at the
address of such Person as shown in the Note Register or the Certificate
Register, as applicable. Any notice so mailed within the time prescribed in this
Agreement shall be conclusively presumed to have been duly given, whether or not
the Noteholder or Certificateholder shall receive such notice.

      SECTION 9.5 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

                                       39
<PAGE>

affect the validity or enforceability of the other provisions of this Agreement
or of the Notes, the Certificates or the rights of the holders thereof.

      SECTION 9.6 Assignment. Notwithstanding anything to the contrary contained
herein, except as provided in Sections 6.3 and 7.2 and as provided in the
provisions of this Agreement concerning the resignation of the Servicer, this
Agreement may not be assigned by the Depositor or the Servicer unless (i)(A) the
Rating Agency Condition is satisfied and (B) the Indenture Trustee and the Owner
Trustee have consented thereto, which consent shall not be unreasonably withheld
or (ii) the Owner Trustee, the Indenture Trustee, the Noteholders of Notes
evidencing not less than 66 2/3% of the principal amount of the Notes
Outstanding and the Certificateholders of Certificates evidencing not less than
66 2/3% of the Percentage Interests evidenced by the Certificates consent
thereto. Any transfer or assignment with respect to the Servicer of all its
rights, obligations and duties will not become effective until a successor
Servicer has assumed the Servicer's rights, duties and obligations under this
Agreement. In the event of a transfer or assignment pursuant to clause (ii)
above, the Rating Agencies shall be provided with notice of such transfer or
assignment.

      SECTION 9.7 Further Assurances. The Depositor and the Servicer agree to do
and perform, from time to time, any and all acts and to execute any and all
further instruments required or reasonably requested by the Owner Trustee or the
Indenture Trustee more fully to effect the purposes of this Agreement.

      SECTION 9.8 No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of the Owner Trustee, the Indenture Trustee,
the Noteholders or the Certificateholders, any right, remedy, power or privilege
hereunder, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges therein provided are
cumulative and not exhaustive of any rights, remedies, powers and privileges
provided by law.

      SECTION 9.9 Third-Party Beneficiaries. This Agreement will inure to the
benefit of and be binding upon the parties hereto, the Indenture Trustee and the
Owner Trustee and their respective successors and permitted assigns and each of
the Indenture Trustee and the Owner Trustee may enforce the provisions hereof as
if they were parties thereto. Except as otherwise provided in this Article IX,
no other Person will have any right or obligation hereunder. The parties hereto
hereby acknowledge and consent to the pledge of this Agreement by the Issuer to
the Indenture Trustee for the benefit of the Noteholders pursuant to the
Indenture.

      SECTION 9.10 Actions by Noteholders or Certificateholders. (a) Wherever in
this Agreement a provision is made that an action may be taken or a notice,
demand, or instruction given by Noteholders or Certificateholders, such action,
notice, or instruction may be taken or given by any Noteholder or
Certificateholder, as applicable, unless such provision requires a specific
percentage of Noteholders or Certificateholders.

      (b) Any request, demand, authorization, direction, notice, consent,
waiver, or other act by a Noteholder or Certificateholder shall bind such
Noteholder or Certificateholder and every subsequent holder of such Note or
Certificate issued upon the registration of transfer

                                       40
<PAGE>

thereof or in exchange therefor or in lieu thereof in respect of anything done
or omitted to be done by the Owner Trustee, the Indenture Trustee or the
Servicer in reliance thereon, whether or not notation of such action is made
upon such Note or Certificate.

      SECTION 9.11 Limitation of Liability of Owner Trustee and Indenture
Trustee. (a) Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by Wells Fargo Delaware Trust Company not in
its individual capacity but solely in its capacity as Owner Trustee of the
Issuer and in no event shall Wells Fargo Delaware Trust Company, in its
individual capacity or, except as expressly provided in the Trust Agreement, as
Owner Trustee of the Issuer have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder
or in any of the certificates, notices or agreements delivered pursuant hereto,
as to all of which recourse shall be had solely to the assets of the Issuer. For
all purposes of this Agreement, in the performance of its duties or obligations
hereunder or in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles VI and VII of the Trust Agreement.

      (b) Notwithstanding anything contained herein to the contrary, this
Agreement has been accepted by JPMorgan Chase Bank, National Association, not in
its individual capacity but solely as Indenture Trustee, and in no event shall
JPMorgan Chase Bank, National Association, have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse shall be had solely to the assets
of the Issuer. For all purposes of this Agreement, in the performance of its
duties or obligations hereunder or in the performance of any duties or
obligations of the Issuer hereunder, the Indenture Trustee shall be subject to,
and entitled to the benefits of, the terms and provisions of Article VI of the
Indenture.

      SECTION 9.12 Savings Clause. It is the intention of the Depositor and the
Issuer that the transfer of the Trust Property contemplated herein constitute an
absolute transfer of the Trust Property, conveying good title to the Trust
Property from the Depositor to the Issuer. However, in the event that such
transfer is deemed to be a pledge or other transfer for security, the Depositor
hereby grants to the Issuer a first priority security interest in all of the
Depositor's right, title and interest in, to and under the Trust Property, and
all proceeds thereof, to secure a loan in an amount equal to all amounts payable
under the Notes and the Certificates, and in such event, this Agreement shall
constitute a security agreement under applicable law.

                                    ARTICLE X
                             EXCHANGE ACT REPORTING

      SECTION 10.1 Further Assurances. The Indenture Trustee, the Owner Trustee
and the Servicer 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. The Depositor shall not exercise its
right to request delivery of information or other performance under these
provisions other than in good faith. 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 Indenture Trustee, the Owner
Trustee and the Servicer shall provide the

                                       41
<PAGE>

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. Each of the
Servicer, the Indenture Trustee and the Owner Trustee acknowledges that
interpretations of the requirements of Regulation AB may change over time,
whether due to interpretive guidance provided by the Commission or its staff,
consensus among participants in the asset-backed securities markets, advice of
counsel, or otherwise, and agrees to comply with requests made by the Depositor
in good faith for delivery of information under these provisions on the basis of
evolving interpretations of Regulation AB.

      SECTION 10.2 Form 10-D Filings. So long as the Depositor is required to
file Exchange Act Reports with respect to the Issuer, no later than each Payment
Date, each of the Indenture Trustee, the Owner Trustee and the Servicer shall
notify (and the Servicer shall cause any Subservicer to notify) the Depositor of
any Form 10-D Disclosure Item with respect to such Person, 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 is obligated to provide pursuant to other provisions of this Agreement,
if so requested by the Depositor, the Servicer shall provide such information
which is available to the Servicer, without unreasonable effort or expense
regarding the performance or servicing of the Receivables 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 Statements to Noteholders pursuant to Section 4.9, commencing with the first
such report due not less than five Business Days following such request.

      SECTION 10.3 Form 8-K Filings. So long as the Depositor is required to
file Exchange Act Reports with respect to the Issuer, each of the Indenture
Trustee, the Owner Trustee and the Servicer shall promptly notify the Depositor,
but in no event later than one (1) Business Day after its occurrence, of any
Reportable Event (in the case of the Owner Trustee, only an event in clause (d)
of the definition of "Reportable Event") of which such Person (or in the case of
the Owner Trustee and the Indenture Trustee, a Responsible Officer of such
Person) 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 10.4 Form 10-K Filings. So long as the Depositor is required to
file Exchange Act Reports: (i) if the Item 1119 Parties listed on Appendix B
have changed since the Closing Date, no later than March 1 of each year, the
Depositor shall provide each of the Indenture Trustee, the Owner Trustee and the
Servicer with an updated Appendix B setting forth the Item 1119 Parties and (ii)
no later than March 15 of each year, commencing in 2007, the Indenture Trustee,
the Owner Trustee and the Servicer shall notify the Depositor 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.

                                       42
<PAGE>

      SECTION 10.5 Report on Assessment of Compliance and Attestation. So long
as the Depositor is required to file Exchange Act Reports, on or before March 15
of each calendar year, commencing in 2007:

      (a) The Indenture Trustee shall deliver to the Depositor and the Servicer
a report of the Indenture Trustee's assessment of compliance with the Servicing
Criteria during the immediately preceding calendar year, as set forth under
Rules 13a-18 and 15d-18 of the Exchange Act (or any successor provisions) and
Item 1122 of Regulation AB. Such report shall be signed by an authorized officer
of the Indenture Trustee and shall at a minimum address each of the Servicing
Criteria specified on a certification substantially in the form of Appendix C
hereto delivered to the Depositor concurrently with the execution of this
Agreement (provided that such certification may be revised after the date of
this Agreement as agreed by the Depositor and the Indenture Trustee to reflect
any guidance with respect to such criteria from the Commission). To the extent
any of the Servicing Criteria are not applicable to the Indenture Trustee, with
respect to asset-backed securities transactions taken as a whole involving the
Indenture Trustee and that are backed by the same asset type backing the Notes,
such report shall include such a statement to that effect. The Indenture Trustee
acknowledges and agrees that the Depositor and the Servicer with respect to its
duties as the Certifying Person, and each of their respective officers and
directors shall be entitled to rely on upon each such servicing criteria
assessment and the attestation delivered pursuant to Section 10.5(b) below.

      (b) The Indenture Trustee shall deliver to the Depositor and the Servicer
a report of a registered public accounting firm that attests to, and reports on,
the assessment of compliance made by the Indenture Trustee and delivered
pursuant to the preceding paragraph. Such attestation shall be in accordance
with Rules 13a-18 and 15d-18 of the Exchange Act (or any successor provisions),
Rules 1-02(a)(3) and 2-02(g) of Regulation S-X (or any successor provisions)
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.

      (c) 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. An assessment of compliance provided by a Subcontractor need not
address any elements of the Servicing Criteria other than those specified by the
Indenture Trustee pursuant to Section 10.5(a).

      (d) In the event the Indenture Trustee or Reporting Subcontractor is
terminated or resigns during the term of this Agreement, such Person shall
provide the documents and information pursuant to this Section 10.5 with respect
to the period of time it was subject to this Agreement or provided services with
respect to the Trust or the Receivables.

      SECTION 10.6 Back-up Sarbanes-Oxley Certification. No later than March 15
of each year, beginning in 2007, the Indenture Trustee and the Servicer shall
provide to the Person who signs the Sarbanes-Oxley Certification (the
"Certifying Person") a certification (each, a "Performance Certification") and
shall cause each Reporting Subcontractor, in the form attached

                                       43
<PAGE>

hereto as Appendix D (in the case of the Indenture Trustee or a Reporting
Subcontractor) and as Appendix E (in the case of the Servicer) 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
Depositor will not 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. So long as the Servicer is an Affiliate of
the Depositor, the Servicer may, but is not required to deliver the Performance
Certificate. In the event that prior to the filing date of the Form 10-K in
March of each year, the Indenture Trustee or the Servicer has actual knowledge
of information material to the Sarbanes-Oxley Certification, the Indenture
Trustee or the Servicer shall promptly notify the Depositor. Each of the
Indenture Trustee and the Servicer agrees 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.

      SECTION 10.7   Use of Subcontractors.

      (a) It shall not be necessary for the Indenture Trustee or the Servicer to
seek the consent of the Depositor or any other party hereto to the utilization
of any Subcontractor. Each of the Indenture Trustee and the Servicer shall
promptly upon request provide to the Depositor (or any designee of the
Depositor, such as the Servicer or the 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 Indenture
Trustee shall cause any such Subcontractor for the benefit of the Depositor to
comply with the provisions of Sections 10.5 and 10.6 of this Agreement to the
same extent as if such Subcontractor were the Indenture Trustee. The Indenture
Trustee shall be responsible for obtaining from each Subcontractor and
delivering to the Depositor, any assessment of compliance and attestation
required to be delivered by such Subcontractor under Section 10.5 and Section
10.6, in each case as and when required to be delivered.

      (b) As a condition to the utilization of any Subcontractor determined to
be a Reporting Subcontractor, the Servicer shall cause any such Subcontractor
for the benefit of the Depositor to comply with the provisions of Section
3.10(a)(ii), Section 3.11 and Section 10.6 of this Agreement to the same extent
as if such Subcontractor were the Servicer. The Servicer shall be responsible
for obtaining from each Subcontractor and delivering to the Depositor, any
assessment of compliance and attestation required to be delivered by such
Subcontractor under this Agreement, in each case as and when required to be
delivered.

      SECTION 10.8 Representations and Warranties. Each of the Indenture Trustee
and the Owner Trustee represents that (i) there are no affiliations, relating to
such Person with respect to

                                       44
<PAGE>

any 1119 Party, (ii) there are no relationships or transactions with respect to
any 1119 Party and such Person that are outside the ordinary course of business
or on terms other than would be obtained in an arm's length transaction with an
unrelated third party, apart from the transactions contemplated under the Basic
Documents, and that are material to the investors' understanding of the Notes
and (iii) there are no legal proceedings pending, or known to be contemplated by
governmental authorities, against such Person, or of which the property of such
Person is subject, that is material to the Noteholders.

      SECTION 10.9   Indemnification.

      (a) Each of the Indenture Trustee and the Servicer shall indemnify the
Depositor, each affiliate of the Depositor, the Servicer with respect to its
duties as Certifying Person or each Person who controls any of such parties
(within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act) and the respective present and former directors, officers,
employees and agents of each of the foregoing, and shall hold each of them
harmless from and against any losses, damages, penalties, fines, forfeitures,
legal fees and expenses and related costs, judgments, and any other costs, fees
and expenses that any of them may sustain arising out of or based upon:

      (i) (A) any untrue statement of a material fact contained or alleged to be
contained in (x) with respect to the Indenture Trustee, the servicing criteria
assessment provided under this Article X and (y) with respect to the Servicer,
Section 3.10 and Section 3.11 of this Agreement by or on behalf of such Person
(with respect to each such party, the "Provided Information"), or (B) the
omission or alleged omission to state in the Provided Information a material
fact required to be stated in the Provided Information, or necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided, by way of clarification, that clause (B) of
this paragraph shall be construed solely by reference to the related Provided
Information and not to any other information communicated in connection with a
sale or purchase of securities, without regard to whether the Provided
Information or any portion thereof is presented together with or separately from
such other information; or

      (ii) with respect to the Indenture Trustee, any failure by the Indenture
Trustee to deliver any servicing criteria assessment when and as required under
this Article X and with respect to the Servicer, any failure by the Servicer to
deliver any information, report, certification, accountant's letter or other
material when and as required under Section 3.10, Section 3.11 or Article X, as
applicable.

      (b) In the case of any failure of performance described in clause (ii) of
this Section, each of the Indenture Trustee and the Servicer shall promptly
reimburse the Depositor for all costs reasonably incurred by each such party in
order to obtain the information, report, certification, accountants' letter or
other material not delivered as required by the Indenture Trustee or the
Servicer, as applicable.

      (c) Each of the Indenture Trustee and the Servicer shall require that any
Reporting Subcontractor agree to the provisions of paragraphs (a) and (b) of
this Section 10.9, or shall be responsible for all such indemnification, costs
or expenses if the Reporting Subcontractor will not agree to such provisions.

                                       45
<PAGE>

      (d) Notwithstanding anything to the contrary contained herein, in no event
shall the Indenture Trustee be liable for special, indirect or consequential
damages of any kind whatsoever, including but not limited to lost profits, even
if the Indenture Trustee has been advised of the likelihood of such loss or
damage and regardless of the form of action.

      SECTION 10.10 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 9.01, provided such
amendment will not require any Opinion of Counsel or satisfaction of the Rating
Agency Condition or the consent of any Noteholder or Certificateholder.

                                       46
<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Sale and Servicing
Agreement to be duly executed by their respective officers thereunto duly
authorized as of the day and year first above written.

                              USAA AUTO OWNER TRUST 2006-3,
                              as Issuer

                              By:   WELLS FARGO DELAWARE TRUST COMPANY,
                                    not in its individual capacity but solely
                                    as Owner Trustee

                                    By:  /s/ Ann Roberts Dukart
                                       -----------------------------------------
                                    Name:  Ann Roberts Dukart
                                    Title: Vice President

                              USAA FEDERAL SAVINGS BANK,
                              as Seller and Servicer

                              By: /s/ Fritz D. Bohne
                                 ----------------------------------------------
                              Name:  Fritz D. Bohne
                              Title: Vice President, Senior Financial
                                     Officer and Treasurer

                              USAA ACCEPTANCE, LLC,
                              as Depositor

                              By: /s/ Edwin T. McQuiston
                                 ----------------------------------------------
                              Name:  Edwin T. McQuiston
                              Title: Vice President

                          Sale and Servicing Agreement
<PAGE>

Accepted and agreed:

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
   not in its individual capacity
   but solely as Indenture Trustee

By: /s/ Mark W. McDermott
   ---------------------------------------
   Name:  Mark W. McDermott
   Title: Vice President

WELLS FARGO DELAWARE TRUST COMPANY,
   not in its individual capacity
   but solely as Owner Trustee

By:  /s/ Ann Roberts Dukart
   ---------------------------------------
   Name:  Ann Roberts Dukart
   Title: Vice President

                         Sales and Servicing Agreement
<PAGE>

                                   SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                      [On File with the Indenture Trustee]

                                       A-1

<PAGE>

                                  SCHEDULE B-1

                          Location of Receivable Files

c/o USAA Federal Savings Bank
10750 McDermott Freeway
San Antonio, TX 78288

                                       B-1

<PAGE>

                                  SCHEDULE B-2

                          Location of Lien Certificates

FDI Consulting, Inc.
1610 Arden Way, Suite 145
Sacramento, CA 95815

                                       B-2

<PAGE>

                                  Appendix A

                             DEFINITIONS AND USAGE

      The following rules of construction and usage shall be applicable to any
agreement or instrument that is governed by this Appendix:

      (a) All terms defined in this Appendix shall have the defined meanings
when used in any agreement or instrument governed hereby and in any
certificate or other document made or delivered pursuant thereto unless
otherwise defined therein.

      (b) As used herein, in any agreement or instrument governed hereby and
in any certificate or other document made or delivered pursuant thereto,
accounting terms not defined in this Appendix or in any such agreement,
instrument, certificate or other document, and accounting terms partly defined
in this Appendix or in any such agreement, instrument, certificate or other
document, to the extent not defined, shall have the respective meanings given
to them under generally accepted accounting principles as in effect on the
date of such agreement or instrument. To the extent that the definitions of
accounting terms in this Appendix or in any such agreement, instrument,
certificate or other document are inconsistent with the meanings of such terms
under generally accepted accounting principles, the definitions contained in
this Appendix or in any such instrument, certificate or other document shall
control.

      The words "hereof," "herein," "hereunder" and words of similar import
when used in an agreement or instrument refer to such agreement or instrument
as a whole and not to any particular provision or subdivision thereof;
references in an agreement or instrument to "Article," "Section" or another
subdivision or to an attachment are, unless the context otherwise requires, to
an article, section or subdivision of or an attachment to such agreement or
instrument; and the term "including" and its variations shall be deemed to be
followed by "without limitation."

      The definitions contained in this Appendix are equally applicable to
both the singular and plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

      Any agreement, instrument or statute defined or referred to below or in
any agreement or instrument that is governed by this Appendix means such
agreement or instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver
or consent and (in the case of statutes) by succession of comparable successor
statutes and includes (in the case of agreements or instruments) references to
all attachments thereto and instruments incorporated therein. References to a
Person are also to its permitted successors and assigns.

                                  Definitions

      "Accrued Class A Note Interest" shall mean, with respect to any Payment
Date, the sum of the Class A Noteholders' Monthly Accrued Interest for such
Payment Date and the Class A Noteholders' Interest Carryover Shortfall for
such Payment Date.

                                 Appendix A-1
<PAGE>

      "Accrued Class B Note Interest" shall mean, with respect to any Payment
Date, the sum of the Class B Noteholders' Monthly Accrued Interest for such
Payment Date and the Class B Noteholders' Interest Carryover Shortfall for
such Payment Date.

      "Act" shall have the meaning specified in Section 11.3(a) of the
Indenture.

      "Administration Agreement" shall mean the Administration Agreement,
dated as of August 22, 2006, by and among the Administrator, the Issuer and
the Indenture Trustee.

      "Administrator" shall mean the Bank, in its capacity as administrator
under the Administration Agreement, or any successor Administrator thereunder.

      "Advance" shall mean the amount of interest, as of a Determination Date,
which the Servicer is required to advance on the Receivables pursuant to
Section 4.4(a) of the Sale and Servicing Agreement.

      "Affiliate" shall mean, 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 Person shall mean 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" shall have meanings correlative to the foregoing.

      "Amount Financed" shall mean, with respect to a Receivable, the amount
advanced under the Receivable toward the purchase price of the Financed
Vehicle and any related costs.

      "Annual Percentage Rate" or "APR" of a Receivable shall mean the annual
rate of finance charges stated in the Receivable.

      "Applicable Tax State" shall mean, as of any date of determination, each
State as to which any of the following is then applicable: (a) a State in
which the Owner Trustee maintains its Corporate Trust Office and (b) the State
of Texas.

      "Authenticating Agent" shall have the meaning specified in Section 2.14
of the Indenture or 3.14 of the Trust Agreement, as applicable.

      "Authorized Officer" shall mean, (i) with respect to the Issuer, any
officer within the Corporate Trust Office of the Owner Trustee, including any
vice president, assistant vice president, secretary, assistant secretary or
any other officer of the Owner Trustee customarily performing functions
similar to those performed by any of the above designated officers and, for so
long as the Administration Agreement is in full force and effect, any officer
of the Administrator who is authorized to act for the Administrator in matters
relating to the Issuer and to be acted upon by the Administrator pursuant to
the Administration Agreement; and (ii) with respect to the Indenture Trustee
or the Owner Trustee, any officer within the Corporate Trust Office of the
Indenture Trustee or the Owner Trustee, as the case may be, including any vice
president, assistant vice president, secretary, assistant secretary or any
other officer of the Indenture Trustee or the Owner Trustee, as the case may
be, customarily performing functions similar to those performed by any of the
above designated officers and also, with respect to a

                                 Appendix A-2
<PAGE>

particular matter, any other officer to whom such matter is referred because
of such officer's knowledge of and familiarity with the particular subject, in
each case having direct responsibility for the administration of the Indenture
or the Trust Agreement, as applicable, and shall also mean, with respect to
the Owner Trustee, any officer of the Administrator.

      "Available Collections" shall mean, for any Payment Date, the sum of the
following amounts with respect to the Collection Period preceding such Payment
Date: (i) all payments collected with respect to Receivables; (ii) all
Liquidation Proceeds attributable to Receivables which were designated as
Defaulted Receivables in prior Collection Periods in accordance with the
Servicer's customary servicing procedures; (iii) all Advances made by the
Servicer of interest due on the Receivables; (iv) the Purchase Amount received
with respect to each Receivable that became a Purchased Receivable during such
Collection Period; and (v) partial prepayments of any refunded item included
in the principal balance of a Receivable, such as extended warranty protection
plan costs, or physical damage, credit life, disability insurance premiums, or
any partial prepayment which causes a reduction in the Obligor's periodic
payment to an amount below the Scheduled Payment as of the Cut-off Date;
provided however, that in calculating the Available Collections the following
will be excluded: (i) amounts received on any Receivable to the extent that
the Servicer has previously made an unreimbursed Advance on such Receivable
and the amount received exceeds the accrued and unpaid interest on such
Receivable that has not been advanced; (ii) amounts received on any of the
Receivables to the extent that the Servicer has previously made an
unreimbursed Advance on a Receivable which is not recoverable from collections
on the particular Receivable; (iii) all payments and proceeds (including
Liquidation Proceeds) of any Receivables the Purchase Amount of which has been
included in Available Funds in a prior Collection Period; (iv) Liquidation
Proceeds with respect to a Receivable attributable to accrued and unpaid
interest thereon (but not including interest for the then current Collection
Period) but only to the extent of any unreimbursed Advances; and (v) amounts
constituting the Supplemental Servicing Fee.

      "Available Funds" shall mean, for any Payment Date, the sum of the
Available Collections for such Payment Date and the Reserve Account Excess
Amount for such Payment Date.

      "Bank" shall mean USAA Federal Savings Bank, a federally chartered
savings association.

      "Bankruptcy Code" shall mean the United States Bankruptcy Code, 11
U.S.C. 101 et seq., as amended.

      "Basic Documents" shall mean the Certificate of Trust, the Trust
Agreement, the Sale and Servicing Agreement, the Receivables Purchase
Agreement, the Indenture, the Administration Agreement, the Underwriting
Agreement, the Note Depository Agreement and the other documents and
certificates delivered in connection therewith.

      "Benefit Plan" or "Benefit Plan Investor" shall mean (a) an "employee
benefit plan" (as defined in Section 3(3) of ERISA), whether or not subject to
the provisions of Title I of ERISA, (b) any "plan" described in Section
4975(e)(1) of the Code, and (c) any entity whose underlying assets included
plan assets by reason of a plan's investment in the entity.

                                 Appendix A-3
<PAGE>

      "Book-Entry Note" shall mean a beneficial interest in any of the Class
A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes and
the Class B Notes, in each case issued in book-entry form.

      "Business Day" shall mean any day other than a Saturday, a Sunday or a
day on which banking institutions or trust companies in the State of New York,
the State of Delaware or the State of Texas are authorized by law, regulation
or executive order to be closed.

      "Certificate Distribution Account" shall mean the account established
and maintained as such pursuant to Section 4.1(c) of the Sale and Servicing
Agreement.

      "Certificateholder" or "holder of a Certificate" shall mean a Person in
whose name a Certificate is registered in the Certificate Register.

      "Certificate of Trust" shall mean the Certificate of Trust in the form
of Exhibit B to the Trust Agreement filed for the Trust pursuant to Section
3810(a) of the Statutory Trust Statute.

      "Certificate Paying Agent" shall mean any paying agent or co-paying
agent appointed pursuant to Section 3.9 of the Trust Agreement and shall
initially be the Owner Trustee.

      "Certificate Register" and "Certificate Registrar" shall have the
respective meanings specified in Section 3.4 of the Trust Agreement.

      "Certificates" shall mean the asset backed Certificates evidencing the
beneficial interest of a Certificateholder in the property of the Trust,
substantially in the form of Exhibit A to the Trust Agreement; provided,
however, that the Owner Trust Estate has been pledged to the Indenture Trustee
to secure payment of the Notes and the rights of the Certificateholders to
receive distributions on the Certificates are subordinated to the rights of
the Noteholders as described in the Sale and Servicing Agreement, the
Indenture and the Trust Agreement.

      "Certification Party" shall have the meaning set forth in Section 10.6
of the Sale and Servicing Agreement.

      "Certifying Person" shall have the meaning set forth in Section 10.6 of
the Sale and Servicing Agreement.

      "Class" shall mean a class of Notes, which may be the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes or the Class B
Notes.

      "Class A Noteholder" shall mean any holder of a Class A Note.

      "Class A Noteholders' Interest Carryover Shortfall" shall mean, for any
Payment Date, the excess of the Accrued Class A Note Interest for the
preceding Payment Date over the amount in respect of interest that is actually
paid to Noteholders of Class A Notes on such preceding Payment Date, plus
interest on the amount of interest due but not paid to Noteholders of Class A
Notes on the preceding Payment Date, to the extent permitted by law, at the
respective Note Interest Rates borne by such Class A Notes for the related
Interest Period.

                                 Appendix A-4
<PAGE>

      "Class A Noteholders' Monthly Accrued Interest" shall mean, with respect
to any Payment Date, the aggregate interest accrued for the related Interest
Period on the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and
the Class A-4 Notes at the respective Note Interest Rate for such Class in
accordance with its terms on the outstanding principal amount of the Notes of
each such Class on the immediately preceding Payment Date or the Closing Date,
as the case may be, after giving effect to all payments of principal to the
holders of the Notes of such Class on or prior to such preceding Payment Date.

      "Class A Notes" shall mean, collectively, the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

      "Class A-1 Final Scheduled Payment Date" shall mean the August 2007
Payment Date.

      "Class A-1 Noteholder" shall mean the Person in whose name a Class A-1
Note is registered on the Note Register.

      "Class A-1 Notes" shall mean the $257,000,000 aggregate initial
principal amount Class A-1 5.4047% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-1 to the
Indenture.

      "Class A-1 Rate" shall mean 5.4047% per annum. Interest with respect to
the Class A-1 Notes shall be computed on the basis of actual days elapsed in
the applicable Interest Period divided by 360 for all purposes of the Basic
Documents.

      "Class A-2 Final Scheduled Payment Date" shall mean the April 2009
Payment Date.

      "Class A-2 Noteholder" shall mean the Person in whose name a Class A-2
Note is registered on the Note Register.

      "Class A-2 Notes" shall mean the $270,000,000 aggregate initial
principal amount Class A-2 5.47% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-2 to the
Indenture.

      "Class A-2 Rate" shall mean 5.47% per annum. Interest with respect to
the Class A-2 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

      "Class A-3 Final Scheduled Payment Date" shall mean the February 2011
Payment Date.

      "Class A-3 Noteholder" shall mean the Person in whose name a Class A-3
Note is registered on the Note Register.

      "Class A-3 Notes" shall mean the $442,000,000 aggregate initial
principal amount Class A-3 5.36% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-3 to the
Indenture.

                                 Appendix A-5
<PAGE>

      "Class A-3 Rate" shall mean 5.36% per annum. Interest with respect to
the Class A-3 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

      "Class A-4 Final Scheduled Payment Date" shall mean the June 2012
Payment Date.

      "Class A-4 Noteholder" shall mean the Person in whose name a Class A-4
Note is registered on the Note Register.

      "Class A-4 Notes" shall mean the $221,653,000 aggregate initial
principal amount Class A-4 5.36% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-4 to the
Indenture.

      "Class A-4 Rate" shall mean 5.36% per annum. Interest with respect to
the Class A-4 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

      "Class B Final Scheduled Payment Date" shall mean the March 2013 Payment
Date.

      "Class B Noteholder" shall mean the Person in whose name a Class B Note
is registered on the Note Register.

      "Class B Noteholders' Interest Carryover Shortfall" shall mean, for any
Payment Date, the excess of the Accrued Class B Note Interest for the
preceding Payment Date over the amount in respect of interest that is actually
paid to Noteholders of Class B Notes on such preceding Payment Date, plus
interest on the amount of interest due but not paid to the Noteholders of
Class B Notes on the preceding Payment Date, to the extent permitted by law,
at the Class B Rate borne for the related Interest Period.

      "Class B Noteholders' Monthly Accrued Interest" shall mean, with respect
to any Payment Date, the aggregate interest accrued for the related Interest
Period on the Class B Notes at the Class B Rate for such Class in accordance
with its terms on the outstanding principal amount of the Class B Notes on the
immediately preceding Payment Date or the Closing Date, as the case may be,
after giving effect to all payments of principal to the holders of the Class B
Notes on or prior to such preceding Payment Date.

      "Class B Notes" shall mean the $36,824,513 aggregate initial principal
amount Class B 5.66% Asset Backed Notes issued by the Trust pursuant to the
Indenture, substantially in the form of Exhibit B to the Indenture.

      "Class B Rate" shall mean 5.66% per annum. Interest with respect to the
Class B Notes shall be computed on the basis of a 360-day year consisting of
twelve 30-day months for all purposes of the Basic Documents.

      "Clearing Agency" shall mean an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act.

                                 Appendix A-6
<PAGE>

      "Clearing Agency Participant" shall mean a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with
the Clearing Agency.

      "Closing Date" shall mean August 22, 2006.

      "Code" shall mean the Internal Revenue Code of 1986, as amended, and
Treasury Regulations promulgated thereunder.

      "Collateral" shall have the meaning specified in the Granting Clause of
the Indenture.

      "Collection Account" shall mean the account or accounts established and
maintained as such pursuant to Section 4.1(a) of the Sale and Servicing
Agreement.

      "Collection Period" shall mean, with respect to the first Payment Date,
the period from and including the Cut-off Date to and including August 31,
2006 and, with respect to each subsequent Payment Date, the calendar month
preceding the calendar month in which the Payment Date occurs.

      "Collections" shall mean all amounts collected by the Servicer (from
whatever source) on or with respect to the Receivables.

      "Commission" shall mean the Securities and Exchange Commission.

      "Computer Tape" shall mean the computer tape generated by the Seller
which provides information relating to the Receivables and which was used by
the Seller in selecting the Receivables conveyed to the Trust hereunder.

      "Controlling Class" shall mean the Class A Notes voting together as a
single class until they are paid in full; thereafter the Class B Notes will be
the controlling class.

      "Controlling Person" shall mean a Person, other than a Benefit Plan
Investor, that has discretionary authority or control with respect to the
assets of the Trust or who provides investment advice for a direct or indirect
fee with respect to those assets, or any affiliate of such a Person.

      "Corporate Trust Office" shall mean, (i) with respect to the Owner
Trustee, the principal corporate trust office of the Owner Trustee located at
919 North Market Street, Suite 700, Wilmington, Delaware 19801 or at such
other address as the Owner Trustee may designate from time to time by notice
to the Certificateholders and the Depositor, or the principal corporate trust
office of any successor Owner Trustee (the address of which the successor
Owner Trustee will notify the Certificateholders and the Depositor); and (ii)
with respect to the Indenture Trustee, the principal corporate trust office of
the Indenture Trustee located at 4 New York Plaza, 6th Floor, New York, New
York 10004, Attention: Worldwide Securities Services/Structured Finance
Services--USAA 2006-3 or at such other address as the Indenture Trustee may
designate from time to time by notice to the Noteholders and the Issuer, or
the principal corporate trust office of any successor Indenture Trustee (the
address of which the successor Indenture Trustee will notify the Noteholders
and the Issuer).

                                 Appendix A-7
<PAGE>

      "Cut-off Date" shall mean August 1, 2006.

      "Default" shall mean any occurrence that is, or with notice or the lapse
of time or both would become, an Event of Default.

      "Defaulted Receivable" shall mean a Receivable (i) that the Servicer
determines is unlikely to be paid in full or (ii) with respect to which at
least 5% of a Scheduled Payment is 120 or more days delinquent as of the end
of a calendar month.

      "Definitive Certificates" shall have the meaning specified in Section
3.13 of the Trust Agreement.

      "Definitive Notes" shall have the meaning specified in Section 2.11 of
the Indenture.

      "Depositor" shall mean USAA Acceptance, LLC, a Delaware limited
liability company.

      "Determination Date" shall mean, with respect to any Collection Period,
the second Business Day immediately preceding the Payment Date following such
Collection Period.

      "EDGAR" shall mean the Commission's Electronic Data Gathering, Analysis
and Retrieval system.

      "Eligible Deposit Account" shall mean either (i) a segregated account
with an Eligible Institution or (ii) a segregated trust account with the
corporate trust department of a depository institution organized under the
laws of the U.S. or any one of the states thereof or the District of Columbia
(or any domestic branch of a foreign bank), having corporate trust powers and
acting as trustee for funds deposited in such account, so long as any of the
securities of such depository institution have a credit rating from each
Rating Agency in one of its generic rating categories which signifies
investment grade.

      "Eligible Institution" shall mean either (i) the corporate trust
department of the Indenture Trustee or the Owner Trustee, as applicable; or
(ii) a depository institution organized under the laws of the U.S. or any one
of the states thereof or the District of Columbia (or any domestic branch of a
foreign bank), (1) which has either (A) a long-term unsecured debt rating of
at least "AA-" by Standard & Poor's and "Baa3" by Moody's or (B) a short-term
unsecured debt rating or certificate of deposit rating of "A-1+" by Standard &
Poor' and "Prime-1" by Moody's and (2) whose deposits are insured by the FDIC.

      "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended.

      "Event of Default" shall have the meaning specified in Section 5.1 of
the Indenture.

      "Event of Servicing Termination" shall mean an event specified in
Section 7.1 of the Sale and Servicing Agreement.

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

                                 Appendix A-8
<PAGE>

      "Exchange Act Reports" shall mean 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
under the Exchange Act.

      "Executive Officer" shall mean, with respect to any corporation or
depository institution, the Chief Executive Officer, Chief Operating Officer,
Chief Financial Officer, President, Executive Vice President, any Vice
President, the Secretary or the Treasurer of such corporation and, with
respect to any partnership, any general partner thereof.

      "FDIC" shall mean the Federal Deposit Insurance Corporation.

      "Final Scheduled Payment Date" shall mean, with respect to (i) the Class
A-1 Notes, the Class A-1 Final Scheduled Payment Date, (ii) the Class A-2
Notes, the Class A-2 Final Scheduled Payment Date, (iii) the Class A-3 Notes,
the Class A-3 Final Scheduled Payment Date, (iv) the Class A-4 Notes, the
Class A-4 Final Scheduled Payment Date, and (v) the Class B Notes, the Class B
Final Scheduled Payment Date.

      "Financed Vehicle" shall mean a new or used automobile or light-duty
truck, together with all accessions thereto, securing an Obligor's
indebtedness under the respective Receivable.

      "First Priority Principal Payment" shall mean, for each Payment Date, a
payment of principal equal to the excess, if any, of the aggregate principal
amount of the Class A Notes (before giving effect to any payments on that
Payment Date) over the Pool Balance at the end of the related Collection
Period.

      "Form 10-D Disclosure Item" shall mean with respect to any Person, any
litigation or governmental proceedings pending against such Person, or any of
the Trust, the Depositor, the Indenture Trustee, the Owner Trustee or the
Servicer if such Person or in the case of the Owner Trustee or Indenture
Trustee, a Responsible Officer of such Person, has actual knowledge thereof,
in each case that would be material to the noteholders.

      "Form 10-K Disclosure Item" shall mean 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 to the extent a Responsible
Officer of such Person (in the case of the Indenture Trustee and the Owner
Trustee) has actual knowledge thereof.

      "Grant" shall mean to mortgage, pledge, bargain, sell, warrant,
alienate, remise, release, convey, assign, transfer, create, and to grant a
lien upon and a security interest in and right of set-off against, and to
deposit, set over and confirm pursuant to the Indenture. A Grant of the
Collateral or of any other agreement or instrument shall include all rights,
powers and options (but none of the obligations) of the granting party
thereunder, including the immediate and continuing right to claim for,
collect, receive and give receipt for principal and interest payments in
respect of the Collateral and all other monies payable thereunder, to give and
receive notices and other communications, to make waivers or other agreements,
to exercise all rights and options, to bring Proceedings in the name of the
granting party or otherwise, and generally to do and receive anything that the
granting party is or may be entitled to do or receive thereunder or with
respect thereto.

                                 Appendix A-9
<PAGE>

      "Indemnified Parties" shall have the meaning assigned to such term in
Section 7.2 of the Trust Agreement.

      "Indenture" shall mean the Indenture, dated as of August 22, 2006, by
and between the Trust and the Indenture Trustee, as supplemented from time to
time.

      "Indenture Trust Estate" shall mean all money, instruments, rights and
other property that are subject or intended to be subject to the lien and
security interest of Indenture for the benefit of the Noteholders (including,
without limitation, all property and interests Granted to the Indenture
Trustee), including all proceeds thereof.

      "Indenture Trustee" shall mean JPMorgan Chase Bank, National
Association, a banking association organized under the laws of the United
States, not in its individual capacity but solely as Indenture Trustee under
the Indenture, or any successor Indenture Trustee under the Indenture.

      "Independent" shall mean, when used with respect to any specified
Person, that such Person (a) is in fact independent of the Issuer, any other
obligor on the Notes, the Seller and any Affiliate of any of the foregoing
Persons, (b) does not have any direct financial interest or any material
indirect financial interest in the Issuer, any such other obligor, the Seller
or any Affiliate of any of the foregoing Persons and (c) is not connected with
the Issuer, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons as an officer, employee, promoter, underwriter, trustee,
partner, director or person performing similar functions.

      "Independent Certificate" shall mean a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.1 of the
Indenture, made by an Independent appraiser, firm of certified public
accountants or other expert appointed by an Issuer Order and approved by the
Indenture Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of
"Independent" in the Indenture and that the signer is Independent within the
meaning thereof.

      "Initial Pool Balance" shall mean $1,227,477,513.49.

      "Insolvency Event" shall mean, with respect to any Person, (i) the
making of a general assignment for the benefit of creditors, (ii) the filing
of a voluntary petition in bankruptcy, (iii) being adjudged a bankrupt or
insolvent, or having had entered against such Person an order for relief in
any bankruptcy or insolvency proceeding, (iv) the filing by such Person of a
petition or answer seeking reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any statute,
law or regulation, (v) the filing by such Person of an answer or other
pleading admitting or failing to contest the material allegations of a
petition filed against such Person in any proceeding specified in (vii) below,
(vi) seeking, consent to or acquiescing in the appointment of a trustee,
receiver or liquidator of such Person or of all or any substantial part of the
assets of such Person or (vii) the failure to obtain dismissal within 60 days
of the commencement of any proceeding against such Person seeking
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any statute, law or

                                Appendix A-10
<PAGE>

regulation, or the entry of any order appointing a trustee, liquidator or
receiver of such Person or of such Person's assets or any substantial portion
thereof.

      "Interest Period" shall mean, with respect to any Payment Date (i) with
respect to the Class A-1 Notes, from and including the Closing Date (in the
case of the first Payment Date) or from and including the most recent Payment
Date on which interest has been paid to but excluding the following Payment
Date and (ii) with respect to each Class of Notes (other than the Class A-1
Notes) and the Certificates, from and including the Closing Date (in the case
of the first Payment Date) or from and including the 15th day of the calendar
month preceding each Payment Date to but excluding the 15th day of the
calendar month of such Payment Date.

      "IRS" shall mean the Internal Revenue Service.

      "Issuer" shall mean the Trust unless a successor replaces it and,
thereafter, shall mean the successor.

      "Issuer Order" and "Issuer Request" shall mean 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.

      "Item 1119 Party" shall mean the Depositor, the Seller, the Servicer,
the Indenture Trustee, the Owner Trustee and any other material transaction
party, as identified in Appendix C to the Sale and Servicing Agreement.

      "Investment Letter" shall have the meaning specified in Section 3.4(b)
of the Trust Agreement.

      "Lien" shall mean a security interest, lien, charge, pledge, equity, or
encumbrance of any kind other than, in respect of a Receivable, tax liens,
mechanics' liens, and any liens which attach to the respective Receivable by
operation of law.

      "Lien Certificate" shall mean the notice or other document referenced in
clause (iii) of the description of the Receivable Files.

      "Liquidation Proceeds" shall mean with respect to any Receivable (a)
insurance proceeds received by the Servicer and (b) monies collected by the
Servicer on a Defaulted Receivable from whatever source, including but not
limited to proceeds of Financed Vehicles after repossession, net of any
payments required by law to be remitted to the Obligor and net of all
reasonable expenses incurred by the Servicer in converting to cash the
Financed Vehicle securing such Defaulted Receivable.

      "Monthly Remittance Condition" shall mean either (a) the Servicer
obtains a short-term certificate of deposit rating of the Servicer from
Standard & Poor's and Moody's of "A-1+" and "Prime-1," respectively, or (b)
the Servicer provides the Indenture Trustee with a letter from each Rating
Agency to the effect that the current ratings assigned to the Securities by
such Rating Agency will not be adversely affected by the remittance of
Collections on a monthly, rather than a daily, basis.

      "Moody's" shall mean Moody's Investors Service, Inc.

                                Appendix A-11
<PAGE>

      "Note Depository Agreement" shall mean the Letter of Representations,
dated as of August 21, 2006 by and between the Issuer and The Depository Trust
Company regarding the Notes and Certificates.

      "Note Interest Rate" shall mean the Class A-1 Rate, the Class A-2 Rate,
the Class A-3 Rate, the Class A-4 Rate or the Class B Rate, as applicable.

      "Note Owner" shall mean, with respect to any Book-Entry Note, the Person
who is the beneficial owner of such Book-Entry Note, as reflected on the books
of the Clearing Agency or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such
Clearing Agency).

      "Note Paying Agent" shall mean the Indenture Trustee or any other Person
that meets the eligibility standards for the Indenture Trustee specified in
Section 6.11 of the Indenture and is authorized by the Issuer to make payments
to and distributions from the Collection Account (including the Principal
Distribution Account), including payment of principal of or interest on the
Notes on behalf of the Issuer.

      "Note Pool Factor" shall mean, with respect to each Class of Notes as of
the close of business on the last day of a Collection Period, a seven-digit
decimal figure calculated by the Servicer and equal to the outstanding
principal balance of such Class of Notes (after giving effect to any
reductions thereof to be made on the immediately following Payment Date)
divided by the original outstanding principal balance of such Class of Notes.
The Note Pool Factor will be 1.0000000 as of the Closing Date; thereafter, the
Note Pool Factor will decline to reflect reductions in the outstanding
principal amount of such Class of Notes.

      "Note Register" and "Note Registrar" shall have the respective meanings
specified in Section 2.5 of the Indenture.

      "Noteholder" or "holder of a Note" shall mean the Person in whose name a
Note is registered on the Note Register.

      "Notes" shall mean the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes, the Class A-4 Notes and the Class B Notes, collectively.

      "Obligor" on a Receivable shall mean the purchaser or co-purchasers of
the Financed Vehicle or any other Person who owes payments under the
Receivable.

      "Officer's Certificate" shall mean (i) with respect to the Trust, a
certificate signed by any Authorized Officer of the Trust and (ii) with
respect to the Depositor, the Seller or the Servicer, a certificate signed by
the chairman of the board, the president, any executive or senior vice
president, any vice president, the treasurer or the controller of the
Depositor or the Servicer, as applicable.

      "Opinion of Counsel" shall mean a written opinion of counsel which
counsel shall be acceptable to the Indenture Trustee, the Owner Trustee or the
Rating Agencies, as applicable.

                                Appendix A-12
<PAGE>

      "Optional Purchase Percentage" shall mean 10%.

      "Outstanding" shall mean with respect to the Securities, as of the date
of determination, all Securities theretofore authenticated and delivered under
the Indenture or the Trust Agreement, as applicable, except:

                  (a) Securities theretofore (i) cancelled by the Note
            Registrar or the Certificate Registrar, as applicable, or (ii)
            delivered to the Note Registrar or the Certificate Registrar, as
            applicable, for cancellation;

                  (b) Securities or portions thereof the payment for which
            money in the necessary amount has been theretofore deposited with
            (i)in the case of the Notes, the Indenture Trustee or any Note
            Paying Agent in trust for the Noteholders of such Notes (provided,
            however, that if such Notes are to be prepaid, notice of such
            prepayment has been duly given pursuant to the Indenture or
            provision for such notice has been made, satisfactory to the
            Indenture Trustee) or (ii) in the case of the Certificates, the
            Owner Trustee or any Certificate Paying Agent in trust for the
            Certificateholders of such Certificates (provided, however, that
            if such Certificates are to be prepaid, notice of such prepayment
            has been duly given pursuant to the Trust Agreement or provision
            for such notice has been made, satisfactory to the Owner Trustee);
            and

                  (c) Securities in exchange for or in lieu of which other
            Securities have been authenticated and delivered pursuant to the
            Indenture or the Trust Agreement, as applicable, unless proof
            satisfactory to the Indenture Trustee or the Owner Trustee, as
            applicable, is presented that any such Securities are held by a
            protected purchaser;

     provided, that in determining whether the holders of Notes or Certificates
evidencing the requisite principal amount of the Notes Outstanding or
Certificates Outstanding have given any request, demand, authorization,
direction, notice, consent, or waiver under any Basic Document, Securities owned
by the Issuer, any other obligor upon the Securities, the Depositor, the Seller,
the Servicer or any Affiliate of any of the foregoing Persons shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee or Owner Trustee, as applicable, shall be
protected in relying on any such request, demand, authorization, direction,
notice, consent, or waiver, only (i) Notes that a Responsible Officer of the
Indenture Trustee knows to be so owned and (ii) Certificates that a Responsible
Officer of the Owner Trustee knows to be so owned, shall be so disregarded;
provided, however, if the Issuer, any other obligor upon the Securities, the
Depositor, the Seller, the Servicer or any Affiliate of any of the foregoing
Persons owns an entire Class of Securities, such Securities shall be deemed to
be Outstanding. Notes owned by the Issuer, any other obligor upon the Notes, the
Depositor, the Seller, the Servicer or any Affiliate of any of the foregoing
Persons that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Indenture Trustee the
pledgee's right so to act with respect to such Notes and that the pledgee is not
the Issuer, any other obligor upon the Notes, the Depositor, the Seller, the
Servicer or any Affiliate of any of the foregoing Persons. Certificates owned by
the Issuer, any other obligor upon the Certificates, the Seller, the Servicer or
any Affiliate of any of the foregoing Persons that

                                Appendix A-13
<PAGE>

have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Owner Trustee the pledgee's right so to
act with respect to such Certificates and that the pledgee is not the Issuer,
any other obligor upon the Certificates, the Depositor, the Seller, the Servicer
or any Affiliate of any of the foregoing Persons.

      "Outstanding Advances" on the Receivables shall mean the sum, as of the
close of business on the last day of a Collection Period, of all Advances as
reduced as provided in Section 4.4(a) of the Sale and Servicing Agreement.

      "Owner Trustee" shall mean Wells Fargo Delaware Trust Company, a
Delaware limited purpose trust company, not in its individual capacity but
solely as Owner Trustee under the Trust Agreement, or any successor Owner
Trustee under the Trust Agreement.

      "Owner Trust Estate" shall mean all right, title and interest of the
Trust in, to and under the property and rights assigned to the Trust pursuant
to Article II of the Sale and Servicing Agreement.

      "Payment Date" shall mean the fifteenth (15th) day of each calendar
month or, if such day is not a Business Day, the next succeeding Business Day.

      "Percentage Interest" shall mean, as to any Certificate, the percentage
interest, specified on the face thereof, in the distributions on the
Certificates pursuant to the Trust Agreement.

      "Permitted Investments" shall mean, on any date of determination,
book-entry securities, negotiable instruments or securities represented by
instruments in bearer or registered form with maturities not exceeding the
Business Day preceding the next Payment Date which evidence:

                  (a) direct non-callable obligations of, and obligations
            fully guaranteed as to timely payment by, the United States of
            America;

                  (b) demand deposits, time deposits or certificates of
            deposit of any depository institution or trust company
            incorporated under the laws of the United States of America or any
            state thereof (or any domestic branch of a foreign bank) and
            subject to supervision and examination by federal or State banking
            or depository institution authorities; provided, however, that at
            the time of the investment or contractual commitment to invest
            therein, the commercial paper or other short-term unsecured debt
            obligations (other than such obligations the rating of which is
            based on the credit of a Person other than such depository
            institution or trust company) thereof shall have a credit rating
            from each of the Rating Agencies in the highest investment
            category granted thereby;

                  (c) commercial paper having, at the time of the investment
            or contractual commitment to invest therein, a rating from each of
            the Rating Agencies in the highest investment category granted
            thereby;

                  (d) investments in money market funds having a rating from
            each of the Rating Agencies in the highest investment category
            granted thereby (including

                                Appendix A-14
<PAGE>

            funds for which the Indenture Trustee or the Owner Trustee or any
            of their respective Affiliates is investment manager or advisor);

                  (e) bankers' acceptances issued by any depository
            institution or trust company referred to in clause (b) above;

                  (f) repurchase obligations with respect to any security that
            is a direct non-callable obligation of, or fully guaranteed by,
            the United States of America or any agency or instrumentality
            thereof the obligations of which are backed by the full faith and
            credit of the United States of America, in either case entered
            into with a depository institution or trust company (acting as
            principal) described in clause (b); and

                  (g) any other investment with respect to which the Issuer or
            the Servicer has received written notification from the Rating
            Agencies that the acquisition of such investment as a Permitted
            Investment will not result in a withdrawal or downgrading of the
            ratings on the Notes or the Certificates.

      "Person" shall mean any individual, corporation, limited liability
company, estate, partnership, joint venture, association, joint stock company,
trust, unincorporated organization, or government or any agency or political
subdivision thereof.

      "Plan" means 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(e)(1) of the Code) and any entity whose underlying assets include plan
assets by reason of a plan's investment in the entity or otherwise.

      "Pool Balance" shall mean on any date of determination, the aggregate
outstanding Principal Balance of the Receivables (exclusive of Purchased
Receivables and Defaulted Receivables) as of such date of determination.

      "Pool Factor" as of the last day of a Collection Period shall mean a
seven-digit decimal figure equal to the Pool Balance at that time divided by
the Initial Pool Balance.

      "Predecessor Note" shall mean, with respect to any particular Note,
every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note and, for purposes of this definition, any
Note authenticated and delivered under Section 2.6 of the Indenture in lieu of
a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the mutilated, lost, destroyed or stolen Note.

      "Preliminary Prospectus Supplement" shall have the meaning specified in
the Underwriting Agreement.

      "Prepayment Date" shall mean with respect to a prepayment of the Notes
pursuant to Section 10.1(a) of the Indenture, the Payment Date specified by
the Servicer pursuant to Section 10.1(a) or (b) of the Indenture, as
applicable.

                                Appendix A-15
<PAGE>

      "Prepayment Price" shall mean in the case of a Class of Notes to be
prepaid, an amount equal to the unpaid principal amount of such Class of Notes
plus accrued and unpaid interest thereon at the applicable Note Interest Rate
plus interest on any overdue interest at the applicable Note Interest Rate (to
the extent lawful) to but excluding the Prepayment Date.

      "Principal Balance" of a Receivable, as of any date of determination,
shall mean the Amount Financed minus that portion of all payments actually
received on or prior to such date allocable to principal.

      "Principal Distribution Account" shall mean the administrative
sub-account of the Collection Account established and maintained as such
pursuant to Section 4.1(b) of the Sale and Servicing Agreement.

      "Proceeding" shall mean any suit in equity, action at law or other
judicial or administrative proceeding.

      "Prospectus" shall have the meaning specified in the Underwriting
Agreement.

      "Prospectus Supplement" shall have the meaning specified in the
Underwriting Agreement.

      "Purchase Amount" with respect to a Purchased Receivable shall mean the
sum, as of the last day of the related Collection Period, of the Principal
Balance thereof plus the accrued interest thereon at the weighted average of
the Note Interest Rates and the Class B Rate through the end of the related
Collection Period.

      "Purchased Receivable" shall mean a Receivable purchased as of the close
of business on the last day of the respective Collection Period by the
Servicer pursuant to Section 3.7 of the Sale and Servicing Agreement, by the
Seller pursuant to Section 2.3 of the Sale and Servicing Agreement or by the
Servicer pursuant to Section 8.1 of the Sale and Servicing Agreement.

      "Rating Agency" shall mean each of the nationally recognized statistical
rating organizations designated by the Depositor to provide a rating on the
Notes or the Certificates which is then rating such Notes or Certificates. If
no such organization or successor is any 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 Indenture Trustee, the Owner Trustee and the Servicer.

      "Rating Agency Condition" shall mean, with respect to any action, that
each of the Rating Agencies shall have notified the Servicer, the Depositor,
the Owner Trustee and the Indenture Trustee in writing that such action will
not result in a reduction or withdrawal of the then current ratings of the
Notes or the Certificates.

      "Receivable" shall mean a motor vehicle installment loan contract listed
on Schedule A to the Receivables Purchase Agreement and all proceeds thereof
and payments thereunder, which Receivable shall not have been released by the
Indenture Trustee and the Owner Trustee from the Trust.

                                Appendix A-16
<PAGE>

      "Receivable Files" shall mean the documents specified in Section 2.4 of
the Sale and Servicing Agreement.

      "Receivables Purchase Agreement" shall mean the Receivables Purchase
Agreement, dated as of August 1, 2006, by and between the Bank, as seller, and
the Depositor, as purchaser.

      "Record Date" shall mean, with respect to any Payment Date or Prepayment
Date and any Book-Entry Security, the close of business on the day prior to
such Payment Date or Prepayment Date or, with respect to any Definitive Note
or Definitive Certificate, the last day of the month preceding the month in
which such Payment Date or Prepayment Date occurs.

      "Recoveries" shall mean, with respect to any Collection Period, all
amounts received by the Servicer with respect to any Defaulted Receivable
during any Collection Period following the Collection Period in which such
Receivable became a Defaulted Receivable, net of any fees, costs and expenses
incurred by the Servicer in connection with the collection of such Receivable
and any payments required by law to be remitted to the Obligor.

      "Registered Noteholder" shall mean the Person in whose name a Note is
registered on the Note Register on the applicable Record Date.

      "Registration Statement" shall mean Registration Statement No.
333-131356 filed by the Depositor with the Securities and Exchange Commission
as of the applicable effective date as to each part of the Registration
Statement pursuant to Rule 430B(f)(2).

      "Regular Principal Distribution Amount" shall mean, with respect to any
Payment Date, an amount equal to the excess, if any, of (a) the sum of the
aggregate principal amount of the Notes for such Payment Date (before giving
effect to any payments on that Payment Date) over (b) the Pool Balance at the
end of the related Collection Period.

      "Regulation AB" shall mean 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.

      "Related Agreements" shall have the meaning specified in the recitals to
the Administration Agreement.

      "Reportable Event" shall mean 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, the Notes or
            the Receivables, or an amendment to a Basic 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);

                                Appendix A-17
<PAGE>

      (b)   termination of a Basic 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 Servicer only, the occurrence of a Servicing
            Termination Event or an Event of Default;

      (d)   the resignation, removal, replacement, substitution of the Indenture
            Trustee, the Owner Trustee or any Co-Trustee;

      (e)   with respect to the Indenture Trustee only, a required distribution
            to holders of the Notes is not made as of the required Payment Date
            under the Indenture; and

      (f)   with respect to the Servicer only, if the Servicer becomes aware of
            any bankruptcy or receivership of the Seller, the Depositor, the
            Indenture Trustee, the Owner Trustee, any enhancement or support
            provider contemplated by Item 1114(b) or 1115 of Regulation AB, or
            other material party contemplated by Item 1101(d)(1) of Regulation
            AB.

      "Reporting Subcontractor" shall mean with respect to the Indenture
Trustee, any Subcontractor determined by such Person pursuant to Section 10.7
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.

      "Representatives" shall mean Banc of America Securities LLC and J.P.
Morgan Securities Inc., as representatives of the several Underwriters.

      "Repurchase Event" shall have the meaning specified in Section 7.02 of
the Receivables Purchase Agreement.

      "Required Rating" shall mean a rating on (i) short-term unsecured debt
obligations of "Prime-1" by Moody's and (ii) short-term unsecured debt
obligations of "A-1+" by Standard & Poor's; and any requirement that
short-term unsecured debt obligations have the "Required Rating" shall mean
that such short-term unsecured debt obligations have the foregoing required
ratings from each of such Rating Agencies.

      "Reserve Account" shall mean the account established and maintained as
such pursuant to Section 4.7(a) of the Sale and Servicing Agreement.

      "Reserve Account Property" shall have the meaning specified in Section
4.7(a) of the Sale and Servicing Agreement.

      "Reserve Account Excess Amount" shall mean, with respect to any Payment
Date, an amount equal to the excess, if any, of (i) the amount of cash or
other immediately available funds in the Reserve Account on such Payment Date
(prior to giving effect to any withdrawals

                                Appendix A-18
<PAGE>

therefrom relating to such Payment Date) over (ii) the Specified Reserve
Balance with respect to such Payment Date.

      "Reserve Initial Deposit" shall mean $8,592,342.59.

      "Rule 144 A Letter" shall have the meaning specified in Section 3.4(b)
of the Trust Agreement.

      "Sale and Servicing Agreement" shall mean the Sale and Servicing
Agreement, dated as of August 1, 2006, by and among the Trust, as issuer, the
Depositor, and the Bank, as seller and servicer.

      "Schedule of Receivables" shall mean the list of Receivables attached as
Schedule A to the Receivables Purchase Agreement, the Sale and Servicing
Agreement and the Indenture (which Schedules may be in the form of microfiche,
disk or other means acceptable to the Indenture Trustee).

      "Scheduled Payment" shall mean, for any Collection Period for any
Receivable, the amount indicated in such Receivable as required to be paid by
the Obligor in such Collection Period (without giving effect to deferments of
payments pursuant to Section 3.2 of the Sale and Servicing Agreement or any
rescheduling in any insolvency or similar proceedings).

      "Secretary of State" shall mean the Secretary of State of the State of
Delaware.

      "Securities" shall mean the Notes and the Certificates, collectively.

      "Securities Act" shall mean the Securities Act of 1933, as amended.

      "Securityholders" shall mean the Noteholders and the Certificateholders,
collectively.

      "Seller" shall mean the Bank as the seller of the Receivables under the
Receivables Purchase Agreement and each successor to the Bank.

      "Servicer" shall mean the Bank as the servicer of the Receivables under
the Sale and Servicing Agreement, and each successor to the Bank (in the same
capacity) pursuant to Section 6.3 of the Sale and Servicing Agreement.

      "Servicer's Certificate" shall mean a certificate completed and executed
by the Servicer by the chairman of the board, the president, any executive
vice president, any vice president, the treasurer, any assistant treasurer,
the controller, or any assistant controller of the Servicer pursuant to
Section 3.9 of the Sale and Servicing Agreement.

      "Servicing Criteria" shall mean the "servicing criteria" set forth in
Item 1122(d) of Regulation AB.

      "Servicing Fee" shall mean, with respect to a Collection Period, the fee
payable to the Servicer for services rendered during such Collection Period,
which shall be equal to one-twelfth

                                Appendix A-19
<PAGE>

of the Servicing Fee Rate multiplied by the Pool Balance as of the first day
of the Collection Period.

      "Servicing Fee Rate" shall mean 0.50% per annum.

      "Similar Laws" shall mean federal, state or local laws that impose
requirements similar to Section 406 of ERISA or Section 4975 of the Code.

      "Simple Interest Method" shall mean the method of allocating a fixed
level payment to principal and interest, pursuant to which the portion of such
payment that is allocated to interest is equal to the amount accrued from the
date of the preceding payment to the date of the current payment.

      "Specified Reserve Balance" shall mean for a Payment Date the greater of
(a) 0.95% of the Pool Balance as of the last day of the related Collection
Period and (b) 0.50% of the Pool Balance as of the Cut-off Date, but in any
event shall not be greater than the sum of the aggregate principal balance of
the Outstanding Notes as of the current Payment Date. The Specified Reserve
Balance may be reduced to a lesser amount as determined by the Depositor, if
each of Moody's and Standard & Poor's shall have confirmed in writing to the
Indenture Trustee that such action will not result in a withdrawal or
reduction in any of its ratings of the Notes.

      "Standard & Poor's" shall mean Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc.

      "State" shall mean any state or commonwealth of the United States of
America, or the District of Columbia.

      "Statutory Trust Statute" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 Delaware Code ss. 3801 et seq., as amended.

      "Subcontractor" shall mean 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
Receivables but performs one or more discrete functions identified in Item
1122(d) of Regulation AB with respect to the Receivables under the direction
or authority of the Indenture Trustee.

      "Successor Servicer" shall mean an institution appointed as successor
Servicer pursuant to Section 7.2 of the Sale and Servicing Agreement.

      "Supplemental Servicing Fee" shall mean the fee payable to the Servicer
for certain services rendered during the respective Collection Period,
determined pursuant to and defined in Section 3.8 of the Sale and Servicing
Agreement.

      "Total Required Payment" shall mean, with respect to any Payment Date,
the sum of the Servicing Fee and all unpaid Servicing Fees from prior
Collection Periods, the Accrued Class A Note Interest, the Accrued Class B
Note Interest and the Regular Principal Distribution Amount; provided,
however, that on any Final Scheduled Payment Date the amount required to be
paid pursuant to Section 4.6(c)(vi) of the Sale and Servicing Agreement shall
be included in the Total

                                Appendix A-20
<PAGE>

Required Payment; provided, further, that following the occurrence and during
the continuation of an Event of Default, on any Payment Date until the Payment
Date on which the outstanding principal amount of all the Securities has been
paid in full, the Total Required Payment shall mean the sum of the fees,
expenses and indemnification of the Indenture Trustee and the Owner Trustee,
the Servicing Fee and all unpaid Servicing Fees from prior Collection Periods,
the Accrued Class A Note Interest, the Accrued Class B Note Interest and the
amount necessary to reduce the outstanding principal amount of all the Notes
to zero.

      "Transfer Date" shall mean the Closing Date.

      "Transferor Certificate" shall have the meaning specified in Section
3.4(b) of the Trust Agreement.

      "Treasury Regulations" shall mean regulations, including proposed or
temporary regulations, promulgated under the Code. References to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

      "Trust" shall mean USAA Auto Owner Trust 2006-3, a Delaware statutory
trust governed by the Trust Agreement.

      "Trust Accounts" shall have the meaning specified in Section 4.7(a) of
the Sale and Servicing Agreement.

      "Trust Agreement" shall mean the Amended and Restated Trust Agreement of
the Trust dated as of August 22, 2006, by and between the Depositor and the
Owner Trustee, as amended and/or restated from time to time.

      "Trust Indenture Act" or "TIA" shall mean the Trust Indenture Act of
1939, as amended, unless otherwise specifically provided.

      "Trust Property" shall mean, collectively, (i) the Receivables; (ii)
monies received thereunder on or after the Cut-off Date; (iii) the security
interests in the Financed Vehicles granted by Obligors pursuant to the
Receivables and any other interest of the Issuer in the Financed Vehicles;
(iv) rights to receive proceeds with respect to the Receivables from claims on
any theft, physical damage, credit life, credit disability, or other insurance
policies covering Financed Vehicles or Obligors; (v) all of the Seller's
rights to the Receivable Files; (vi) the Trust Accounts and all amounts,
securities, investments, investment property and other property deposited in
or credited to any of the foregoing, all security entitlements relating to the
foregoing and all proceeds thereof; (vii) the Receivables Purchase Agreement;
(viii) payments and proceeds with respect to the Receivables held by the
Servicer; (ix) all property (including the right to receive Liquidation
Proceeds) securing a Receivable (other than a Receivable repurchased by the
Servicer or purchased by the Seller); (x) rebates of premiums and other
amounts relating to insurance policies and other items financed under the
Receivables in effect as of the Cut-off Date; and (xi) all present and future
claims, demands, causes of action and choses in action in respect of any or
all of the foregoing and all payments on or under and all proceeds of every
kind and nature whatsoever in respect of any or all of the foregoing,
including all proceeds of the conversion thereof, voluntary or involuntary,
into cash or other liquid property,

                                Appendix A-21
<PAGE>

all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances,
chattel paper, checks, deposit accounts, insurance proceeds, condemnation
awards, rights to payment of any and every kind and other forms of obligations
and receivables, instruments and other property which at any time constitute
all or part of or are included in the proceeds of any of the foregoing.

      "Trustee Officer" shall mean, with respect to the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee 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, in each case having direct responsibility for the
administration of the Indenture and the other Basic Documents on behalf of the
Indenture Trustee and, with respect to the Owner Trustee, any officer within
the Corporate Trust Office of the Owner Trustee with direct responsibility for
the administration of the Trust Agreement and the other Basic Documents on
behalf of the Owner Trustee.

      "UCC" shall mean the Uniform Commercial Code as in effect in any
relevant jurisdiction.

      "Underwriters" shall mean the underwriters named in Schedule I to the
Underwriting Agreement.

      "Underwriting Agreement" shall mean the Underwriting Agreement, dated
August 14, 2006 among the Seller, the Depositor and the Representatives.

      "Underwritten Securities" shall mean the Notes.

                                Appendix A-22

                                  Appendix A-1
<PAGE>

                                   APPENDIX B

                                Item 1119 Parties

USAA Auto Owner Trust 2006-3
USAA Acceptance, LLC
USAA Federal Savings Bank
Wells Fargo Delaware Trust Company
JPMorgan Chase Bank, National Association

                                  Appendix B-1

<PAGE>

                                   APPENDIX C

                Minimum Servicing Criteria to be Addressed in
                       Assessment of Compliance Statement

            The assessment of compliance to be delivered by the [Trustee]
[Servicer] shall address, at a minimum, the criteria identified as below as
"Applicable Servicing Criteria":

--------------------------------------------------------------------------------
                                                          Applicable Servicing
Reg AB Reference     Servicing Criteria                         Criteria
--------------------------------------------------------------------------------
                     General Servicing Considerations
--------------------------------------------------------------------------------
                     Policies and procedures are
                     instituted to monitor any
                     performance or other triggers and
                     events of default in accordance
1122(d)(1)(i)        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 back-up servicer for
1122(d)(1)(iii)      the Pool Assets 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
                     terms of the transaction
1122(d)(1)(iv)       agreements.
--------------------------------------------------------------------------------
                     Cash Collection and Administration
--------------------------------------------------------------------------------
                     Payments on pool assets are
                     deposited into the appropriate
                     custodial bank accounts and
                     related bank clearing accounts no
                     more than two business days
                     following receipt, or such other
                     number of days specified in the
1122(d)(2)(i)        transaction agreements.
--------------------------------------------------------------------------------
                     Disbursements made via wire
                     transfer on behalf of an obligor
                     or to an investor are made only
1122(d)(2)(ii)       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 approved as
                     specified in the transaction
1122(d)(2)(iii)      agreements.
--------------------------------------------------------------------------------
                     The related accounts for the
                     transaction, such as cash reserve
                     accounts or accounts established
                     as a form of over
                     collateralization, are separately
                     maintained (e.g., with respect to
                     commingling of cash) as set forth
1122(d)(2)(iv)       in the 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
                     13k-1(b)(1) of the Securities
1122(d)(2)(v)        Exchange Act.
--------------------------------------------------------------------------------
                                  Appendix C-1
<PAGE>
--------------------------------------------------------------------------------
                                                          Applicable Servicing
Reg AB Reference     Servicing Criteria                         Criteria
--------------------------------------------------------------------------------
                     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, or such other
                     number of days specified in the
1122(d)(2)(vii)      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
                     trustee's records as to the total
                     unpaid principal balance and
                     number of Pool Assets serviced by
1122(d)(3)(i)        the Servicer.
--------------------------------------------------------------------------------
                     Amounts due to investors are
                     allocated and remitted in
                     accordance with timeframes,
                     distribution priority and other
                     terms set forth in the
1122(d)(3)(ii)       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 transaction
1122(d)(3)(iii)      agreements.
--------------------------------------------------------------------------------
                     Amounts remitted to investors per
                     the investor reports agree with
                     cancelled checks, or other form
                     of payment, or custodial bank
1122(d)(3)(iv)       statements.
--------------------------------------------------------------------------------
                     Pool Asset Administration
--------------------------------------------------------------------------------
                     Collateral or security on pool
                     assets is maintained as required
                     by the transaction agreements or
1122(d)(4)(i)        related pool asset documents.
--------------------------------------------------------------------------------
                     Pool assets  and related
                     documents are safeguarded as
                     required by the transaction
1122(d)(4)(ii)       agreements
--------------------------------------------------------------------------------
                     Any additions, removals or
                     substitutions to the asset pool
                     are made, reviewed and approved
                     in accordance with any conditions
                     or requirements in the
1122(d)(4)(iii)      transaction agreements.
--------------------------------------------------------------------------------
                     Payments on pool assets,
                     including any payoffs, made in
                     accordance with the related pool
                     asset documents are posted to the
                     Servicer's obligor records
                     maintained no more than two
                     business days after receipt, or
                     such other number of days
                     specified in the transaction
                     agreements, and allocated to
1122(d)(4)(iv)       principal,
--------------------------------------------------------------------------------

                                  Appendix C-2

<PAGE>

--------------------------------------------------------------------------------
                                                          Applicable Servicing
Reg AB Reference     Servicing Criteria                         Criteria
--------------------------------------------------------------------------------
                     interest or other items (e.g.,
                     escrow) in accordance with the
                     related pool asset documents.
--------------------------------------------------------------------------------
                     The Servicer's records regarding
                     the pool assets agree with the
                     Servicer's records with respect
                     to an obligor's unpaid principal
1122(d)(4)(v)        balance.
--------------------------------------------------------------------------------
                     Changes with respect to the terms
                     or status of an obligor's pool
                     assets (e.g., loan modifications
                     or re-agings) are made, reviewed
                     and approved by authorized
                     personnel in accordance with the
                     transaction agreements and
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 transaction
1122(d)(4)(vii)      agreements.
--------------------------------------------------------------------------------
                     Records documenting collection
                     efforts are maintained during the
                     period a pool asset is delinquent
                     in accordance with the
                     transaction agreements. Such
                     records are maintained on at
                     least a monthly basis, or such
                     other period specified in the
                     transaction agreements, and
                     describe the entity's activities
                     in monitoring delinquent pool
                     assets including, for example,
                     phone calls, letters and payment
                     rescheduling plans in cases where
                     delinquency is deemed temporary
1122(d)(4)(viii)     (e.g., illness or unemployment).
--------------------------------------------------------------------------------
                     Adjustments to interest rates or
                     rates of return for pool assets
                     with variable rates are computed
                     based on the related pool asset
1122(d)(4)(ix)       documents.
--------------------------------------------------------------------------------
                     Regarding any funds held in trust
                     for an obligor (such as escrow
                     accounts): (A) such funds are
                     analyzed, in accordance with the
                     obligor's pool asset documents,
                     on at least an annual basis, or
                     such other period specified in
                     the transaction agreements; (B)
                     interest on such funds is paid,
                     or credited, to obligors in
                     accordance with applicable pool
                     asset documents and state laws;
                     and (C) such funds are returned
                     to the obligor within 30 calendar
                     days of full repayment of the
                     related pool assets, or such
                     other number of days specified in
1122(d)(4)(x)        the transaction 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 other number of days
                     specified in the transaction
1122(d)(4)(xi)       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 the late payment was due
                     to the obligor's error or
1122(d)(4)(xii)      omission.
--------------------------------------------------------------------------------
                     Disbursements made on behalf of
                     an obligor are posted within two
1122(d)(4)(xiii)     business days to the obligor's
--------------------------------------------------------------------------------
                                  Appendix C-3
<PAGE>

--------------------------------------------------------------------------------
                                                          Applicable Servicing
Reg AB Reference     Servicing Criteria                         Criteria
--------------------------------------------------------------------------------
                     records maintained by the
                     servicer, or such other number of
                     days 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 AB, is
                     maintained as set forth in the
1122(d)(4)(xv)       transaction agreements.
--------------------------------------------------------------------------------

                                    [JPMORGAN CHASE BANK, NATIONAL
                                    ASSOCIATION] [USAA FEDERAL SAVINGS BANK]

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

                                    Date:
                                         -------------------------------------

                                  Appendix C-4

<PAGE>

                                   APPENDIX D

                        Form of Performance Certification

                                  CERTIFICATION

      Re:   USAA Auto Owner Trust 2006-3
            ----------------------------

      The undersigned [Indenture Trustee] [Reporting Subcontractor] hereby
certifies to the [ ] and its officers, directors and Affiliates (collectively,
the "Certification Parties") as follows, with the knowledge and intent that the
Certification Parties will rely on this Certification in connection with the
certification concerning the Trust to be signed by an officer of the Servicer
and submitted to the Securities and Exchange Commission pursuant to the
Sarbanes-Oxley Act of 2002:

      1. The [Indenture Trustee] [Reporting Subcontractor] has reviewed the
information and reports provided by it to the Depositor and the Servicer
pursuant to the Sale and Servicing Agreement with respect to the servicing
criteria assessment under Section 10.5 of the Sale and Servicing Agreement (the
"Information");

      2. Based on the [Indenture Trustee] [Reporting Subcontractor]'s knowledge,
the Information, taken as a whole, does not contain any untrue statement of a
material fact or omit to state a material fact required in the Information and
necessary to make the statements made, in the light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by the 10-K report; and

      3. The servicing criteria assessment required to be provided by the
[Indenture Trustee] [Reporting Subcontrator] pursuant to the Agreement, has been
provided to the Depositor and the Servicer. Any material instance of
noncompliance with the applicable Servicing Criteria has been disclosed in such
report.

      [4. Any assessment of compliance with servicing criteria required to be
provided by any Reporting Subcontractor of the Indenture Trustee have been
provided by such Reporting Subcontractor.]

                                   Appendix D-1
<PAGE>

      Capitalized terms not otherwise defined herein have the meanings ascribed
thereto in the Sale and Servicing Agreement dated as of August 1, 2006 among
USAA Federal Savings Bank, as Seller and Servicer, USAA Auto Owner Trust 2006-3
and USAA Acceptance, LLC.

                                    [JPMORGAN CHASE BANK, NATIONAL
                                    ASSOCIATION, not in its individual
                                    capacity but solely as Indenture  Trustee]
                                    [REPORTING SUBCONTRACTOR]

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

                                    Date:
                                         --------------------------------------

                                   Appendix D-2
<PAGE>

                                   APPENDIX E

                        Form of Performance Certification

                                  CERTIFICATION

      Re:   USAA Auto Owner Trust 2006-3
            ----------------------------

      The undersigned Servicer hereby certifies to the [ ] and its officers,
directors and Affiliates (collectively, the "Certification Parties") as follows,
with the knowledge and intent that the Certification Parties will rely on this
Certification in connection with the certification concerning the Trust to be
signed by an officer of the Servicer and submitted to the Securities and
Exchange Commission pursuant to the Sarbanes-Oxley Act of 2002:

      1. I have reviewed the servicer compliance statement of the Servicer
provided in accordance with Item 1123 of Regulation AB (the "Compliance
Statement"), the report on assessment of the Servicer's compliance with the
servicing criteria set forth in Item 1122(d) of Regulation AB (the "Servicing
Criteria"), provided in accordance with Rules 13a-18 and 15d-18 under Securities
Exchange Act of 1934, as amended (the "Exchange Act") and Item 1122 of
Regulation AB (the "Servicing Assessment"), the registered public accounting
firm's attestation report provided in accordance with Rules 13a-18 and 15d-18
under the Exchange Act and Section 1122(b) of Regulation AB (the "Attestation
Report"), and all servicing reports, officer's certificates and other
information relating to the servicing of the Receivables by the Servicer during
200[ ] that were delivered by the Servicer to the Indenture Trustee pursuant to
the Agreement (collectively, the "Servicer Servicing Information");

      2. Based on my knowledge, the Servicer Servicing Information, taken as a
whole, does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements made, in the light of the
circumstances under which such statements were made, not misleading with respect
to the period of time covered by the Servicer Servicing Information;

      3. Based on my knowledge, all of the Servicer Servicing Information
required to be provided by the Servicer under the Agreement has been provided to
the Indenture Trustee;

      4. I am responsible for reviewing the activities performed by the Servicer
as servicer under the Sale and Servicing Agreement dated August 1, 2006 among
USAA Auto Owner Trust 2006-3, USAA Acceptance, LLC and USAA Federal Savings Bank
(the "Agreement"), and based on my knowledge and the compliance review conducted
in preparing the Compliance Statement and except as disclosed in the Compliance
Statement, the Servicing Assessment or the Attestation Report, the Servicer has
fulfilled its obligations under the Agreement in all material respects; and

      5. The Compliance Statement required to be delivered by the Servicer
pursuant to the Agreement, and the Servicing Assessment and Attestation Report
required to be provided by the Servicer and by any Reporting Subcontractor
pursuant to the Agreement, have been provided

                                      E-1

<PAGE>

to the Indenture Trustee. Any material instances of noncompliance described in
such reports have been disclosed to the Depositor. Any material instance of
noncompliance with the Servicing Criteria has been disclosed in such reports.

      Capitalized terms not otherwise defined herein have the meanings ascribed
thereto in the Sale and Servicing Agreement dated as of August 1, 2006 among
USAA Federal Savings Bank, as Seller and Servicer, USAA Auto Owner Trust 2006-3
and USAA Acceptance, LLC.

                                    USAA FEDERAL SAVINGS BANK

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

                                      E-2<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

                                  as Depositor

                                       and

                            WILMINGTON TRUST COMPANY

                                as Owner Trustee

                                   ----------

                                 TRUST AGREEMENT

                           Dated as of August 8, 2006

                                   ----------

             Merrill Lynch Mortgage Investors Trust, Series 2006-SL2

<PAGE>

<TABLE>
<S>                                                                           <C>
ARTICLE I DEFINITIONS......................................................    1
    Section 1.01  Definitions..............................................    1
    Section 1.02  Other Definitional Provisions............................    1

ARTICLE II ORGANIZATION....................................................    2
    Section 2.01  Name.....................................................    2
    Section 2.02  Office...................................................    2
    Section 2.03  Purposes and Powers......................................    2
    Section 2.04  Appointment of Owner Trustee.............................    3
    Section 2.05  Initial Capital Contribution.............................    3
    Section 2.06  Declaration of Trust.....................................    3
    Section 2.07  Title to Trust Property..................................    3
    Section 2.08  Situs of Trust...........................................    3
    Section 2.09  Activities of Trust......................................    4
    Section 2.10  Representations and Warranties of the Depositor..........    6

ARTICLE III CONVEYANCE OF THE OWNER TRUST ESTATE; THE CERTIFICATES.........    6
    Section 3.01  Conveyance of the Owner Trust Estate.....................    6
    Section 3.02  [RESERVED]...............................................    9
    Section 3.03  The Certificates.........................................    9
    Section 3.04  Authentication of Certificate............................    9
    Section 3.05  Registration of and Limitations on Transfer and Exchange
                  of Certificate...........................................   10
    Section 3.06  Mutilated, Destroyed, Lost or Stolen Certificates........   15
    Section 3.07  Persons Deemed Certificateholders........................   15
    Section 3.08  Access to Certificateholders' Name and Addresses.........   15
    Section 3.09  Maintenance of Office or Agency..........................   15
    Section 3.10  Certificate Paying Agent.................................   16
    Section 3.11  Subordination............................................   17

ARTICLE IV AUTHORITY AND DUTIES OF OWNER TRUSTEE...........................   17
    Section 4.01  General Authority........................................   17
    Section 4.02  General Duties...........................................   17
    Section 4.03  Action upon Instruction..................................   18
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<S>                                                                           <C>
    Section 4.04  No Duties Except as Specified under Specified Documents
                  or in Instructions.......................................   18
    Section 4.05  Restrictions.............................................   19
    Section 4.06  Prior Notice to the Certificateholders with Respect to
                  Certain Matters..........................................   19
    Section 4.07  Action by Certificateholders with Respect to Certain
                  Matters..................................................   20
    Section 4.08  Action by Certificateholder with Respect to Bankruptcy...   20
    Section 4.09  Restrictions on Certificateholders' Power................   20
    Section 4.10  Doing Business in Other Jurisdictions....................   20

ARTICLE V APPLICATION OF TRUST FUNDS.......................................   20
    Section 5.01  Distributions............................................   20
    Section 5.02  Method of Payment........................................   21
    Section 5.03  Additional Balances and Excluded Amounts.................   22
    Section 5.04  Signature on Returns.....................................   22
    Section 5.05  Statements to Certificateholders.........................   22

ARTICLE VI CONCERNING THE OWNER TRUSTEE....................................   22
    Section 6.01  Acceptance of Trusts and Duties..........................   22
    Section 6.02  Furnishing of Documents..................................   24
    Section 6.03  Representations and Warranties...........................   24
    Section 6.04  Reliance; Advice of Counsel..............................   24
    Section 6.05  Not Acting in Individual Capacity........................   25
    Section 6.06  Owner Trustee Not Liable for Certificates or Related
                  Documents................................................   25
    Section 6.07  Owner Trustee May Own the Certificates and the Notes.....   25

ARTICLE VII COMPENSATION OF OWNER TRUSTEE..................................   26
    Section 7.01  Owner Trustee's Fees and Expenses........................   26
    Section 7.02  Indemnification..........................................   26
    Section 7.03  Payments to the Owner Trustee............................   27

ARTICLE VIII TERMINATION OF TRUST AGREEMENT................................   27
    Section 8.01  Termination of Trust Agreement...........................   27
    Section 8.02  Additional Termination Requirements......................   28

ARTICLE IX SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES..........   28
    Section 9.01  Eligibility Requirements for Owner Trustee...............   28
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>                                                                           <C>
    Section 9.02  Replacement of Owner Trustee.............................   29
    Section 9.03  Successor Owner Trustee..................................   29
    Section 9.04  Merger or Consolidation of Owner Trustee.................   30
    Section 9.05  Appointment of Co-Trustee or Separate Trustee............   30

ARTICLE X MISCELLANEOUS....................................................   31
    Section 10.01 Amendments...............................................   31
    Section 10.02 No Legal Title to Owner Trust Estate.....................   32
    Section 10.03 Limitations on Rights of Others..........................   33
    Section 10.04 Notices..................................................   33
    Section 10.05 Severability.............................................   33
    Section 10.06 Separate Counterparts....................................   33
    Section 10.07 Successors and Assigns...................................   34
    Section 10.08 No Petition..............................................   34
    Section 10.09 No Recourse..............................................   34
    Section 10.10 Headings.................................................   34
    Section 10.11 GOVERNING LAW............................................   34
    Section 10.12 Integration..............................................   34
    Section 10.13 Intention of the Parties.................................   34
</TABLE>

EXHIBIT A   FORM OF CLASS C CERTIFICATES
EXHIBIT B   [RESERVED]
EXHIBIT C   FORM OF RULE 144A INVESTMENT REPRESENTATION
EXHIBIT D   FORM OF INVESTOR REPRESENTATION LETTER
EXHIBIT E   FORM OF TRANSFEROR REPRESENTATION LETTER
EXHIBIT F   FORM OF ERISA REPRESENTATION LETTER
EXHIBIT G   [RESERVED]
EXHIBIT H   [RESERVED]
EXHIBIT I   FORM OF CLASS R CERTIFICATES
EXHIBIT J-1 FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT
EXHIBIT J-2 FORM OF TRANSFEROR'S AFFIDAVIT
EXHIBIT K   FORM OF CLASS G CERTIFICATES
EXHIBIT L   FORM OF CLASS P CERTIFICATES

                                      -iii-
<PAGE>

          This Trust Agreement, dated as of August 8, 2006 (as may be amended,
modified or supplemented and in effect from time to time, this "Trust
Agreement"), between MERRILL LYNCH MORTGAGE INVESTORS, INC., a Delaware
corporation, as depositor (the "Depositor"), and WILMINGTON TRUST COMPANY, a
Delaware banking corporation, as owner trustee (the "Owner Trustee"),

                                WITNESSETH THAT:

          WHEREAS, pursuant to the terms of the Mortgage Loan Purchase
Agreement, Merrill Lynch Mortgage Lending Inc. (in such capacity, the "Seller")
will sell to the Depositor the Mortgage Loans together with the Related
Documents on the Closing Date;

          WHEREAS, pursuant to the terms of this Trust Agreement, the Depositor
desires to convey the Mortgage Loans to the Trust;

          NOW, THEREFORE, in consideration of the mutual agreements herein
contained, the Depositor and the Owner Trustee agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          Section 1.01 Definitions. For all purposes of this Trust Agreement,
except as otherwise expressly provided herein or unless the context otherwise
requires, capitalized terms not otherwise defined herein shall have the meanings
assigned to such terms in Appendix A to the Indenture, dated August 8, 2006 (the
"Indenture"), among Merrill Lynch Mortgage Investors Trust 2006-SL2, as issuer,
Citibank, N.A., as indenture trustee, and LaSalle Bank National Association, as
securities administrator, as in effect on the date hereof. All other capitalized
terms used herein shall have the meanings specified herein.

          Section 1.02 Other Definitional Provisions.

          (a) All terms defined in this Trust Agreement shall have the defined
meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein.

          (b) As used in this Trust Agreement and in any certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Trust Agreement or in any such certificate or other document,
and accounting terms partly defined in this Trust Agreement or in any such
certificate or other document to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting
principles. To the extent that the definitions of accounting terms in this Trust
Agreement or in any such certificate or other document are inconsistent with the
meanings of such terms under generally accepted accounting principles, the
definitions contained in this Trust Agreement or in any such certificate or
other document shall control.

          (c) The words "hereof," "herein," "hereunder" and words of similar
import when used in this Trust Agreement shall refer to this Trust Agreement as
a whole and not to any

<PAGE>

particular provision of this Trust Agreement; Article, Section and Exhibit
references contained in this Trust Agreement are references to Articles,
Sections and Exhibits in or to this Trust Agreement unless otherwise specified;
the term "including" shall mean "including without limitation;" the term "or"
shall include "and/or" and the term "proceeds" shall have the meaning ascribed
thereto in the UCC.

          (d) The definitions contained in this Trust Agreement are applicable
to the singular as well as the plural forms of such terms and to the masculine
as well as to the feminine and neuter genders of such terms.

          (e) Any agreement, instrument or statute defined or referred to herein
or in any instrument or certificate delivered in connection herewith means such
agreement, instrument or statute as from time to time amended, modified or
supplemented and includes (in the case of agreements or instruments) references
to all attachments thereto and instruments incorporated therein; references to a
Person are also to its permitted successors and assigns.

                                   ARTICLE II

                                  ORGANIZATION

          Section 2.01 Name. The trust shall be known as "Merrill Lynch Mortgage
Investors Trust, Series 2006-SL2" (the "Trust" or the "Owner Trust"), in which
name the Owner Trustee may engage in the transactions contemplated hereby, make
and execute contracts and other instruments on behalf of the Trust and sue and
be sued.

          Section 2.02 Office. The office of the Trust shall be in care of the
Owner Trustee at the Corporate Trust Office or at such other address in Delaware
as the Owner Trustee may designate by written notice to the Certificateholders
and the Depositor.

          Section 2.03 Purposes and Powers. The purpose of the Trust is to
engage in the following activities:

               (i) to issue the Notes pursuant to the Indenture and the
Certificates pursuant to this Trust Agreement and to sell the Notes and the
Certificates;

               (ii) to purchase the Mortgage Loans and to pay organizational,
start-up and transactional expenses of the Trust;

               (iii) to assign, grant, transfer, pledge and convey the Mortgage
Loans pursuant to the Indenture and to hold, manage and distribute to the
Certificateholders pursuant to Section 5.01 any portion of the Mortgage Loans
released from the Lien of, and remitted to the Trust pursuant to the Indenture;

               (iv) to assign, grant, transfer, own, pledge and convey the
Mortgage Loans in connection with any such termination;

               (v) to enter into and perform its obligations under the Operative
Documents to which it is to be a party;

                                      -2-

<PAGE>

               (vi) to engage in those activities, including entering into
agreements, that are necessary, suitable or convenient to accomplish the
foregoing or are incidental thereto or connected therewith, including, without
limitation, to accept additional contributions of equity that are not subject to
the Lien of the Indenture; and

               (vii) subject to compliance with the Operative Documents, to
engage in such other activities as may be required in connection with
conservation of the Owner Trust Estate and the making of distributions to the
Securityholders.

          The Trust is hereby authorized to engage in the foregoing activities.
The Trust shall not engage in any activity other than in connection with the
foregoing or other than as required or authorized by the terms of this Trust
Agreement or the Operative Documents.

          Section 2.04 Appointment of Owner Trustee. The Depositor hereby
appoints the Owner Trustee as trustee of the Trust effective as of the date
hereof, to have all the rights, powers and duties set forth herein.

          Section 2.05 Initial Capital Contribution. The Owner Trustee
acknowledges, on behalf of the Trust, the receipt in trust of the property
assigned to the Trust pursuant to Section 3.01.

          The Trust acknowledges the conveyance to the Trust by the Depositor,
as of the Closing Date, of the Owner Trust Estate, including all right, title
and interest of the Depositor in and to the Owner Trust Estate. Concurrently
with such conveyance, the Trust has pledged the Trust Estate to the Indenture
Trustee and has executed the Certificates and the Notes and caused them to be
duly authenticated and delivered.

          Section 2.06 Declaration of Trust. The Owner Trustee hereby declares
that it shall hold the Owner Trust Estate in trust upon and subject to the
conditions set forth herein for the use and benefit of the Certificateholders,
subject to the obligations of the Owner Trust under the Operative Documents. It
is the intention of the parties hereto that the Owner Trust constitute a
statutory trust under the Statutory Trust Statute and that this Trust Agreement
constitute the governing instrument of such statutory trust. It is the intention
of the parties hereto that an election be made to treat each REMIC provided for
in the Indenture as a REMIC for federal income tax purposes.

          Section 2.07 Title to Trust Property. Legal title to the Owner Trust
Estate shall be vested at all times in the Trust as a separate legal entity
except where applicable law in any jurisdiction requires title to any part of
the Owner Trust Estate to be vested in a trustee or trustees, in which case
title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a
separate trustee, as the case may be.

          Section 2.08 Situs of Trust. The Trust will be located and
administered in the State of Delaware or Illinois. All bank accounts maintained
by the Owner Trustee on behalf of the Trust shall be located in the State of
Delaware or the State of Illinois. The Trust shall not have any employees in any
state other than Delaware; provided, however, that nothing herein shall restrict
or prohibit the Owner Trustee from having employees within or without the State
of Delaware or taking actions outside the State of Delaware in order to comply
with Section 2.03.

                                      -3-

<PAGE>

Payments will be received by the Trust only in Delaware or Illinois, and
payments will be made by the Trust only from Delaware or Illinois. The only
office of the Trust will be at the Corporate Trust Office in Delaware.

          Section 2.09 Activities of Trust. It is the intention of the parties
hereto that the Trust shall not engage in any business or activities other than
in connection with, or relating to, the purposes specified in Section 2.03. The
operations of the Trust will be conducted in accordance with the following
standards (and the Depositor hereby agrees to use its best efforts to cause the
operations of the Trust to be conducted in accordance herewith) and each
Certificateholder and each holder of an Ownership Interest (by its acquisition
thereof) shall have been deemed to have agreed to comply with the following:

               (i) The Trust will observe all procedures required by this
Agreement.

               (ii) Except as otherwise provided in Section 4 of this Agreement
and in the Administration Agreement, the business and affairs of the Trust will
be managed by or under the direction of the Depositor. Except as otherwise
expressly provided in this Agreement, none of any Certificateholder, the
Depositor or any of its Affiliates will have authority to act for, or to assume
any obligation or responsibility on behalf of, the Trust.

               (iii) The Trust will keep correct and complete books and records
of accounts and shall maintain such books and records separate from those of the
Depositor or any subsidiary, affiliate or separate account of the Depositor,
each Certificateholder and any other person or entity. Any such books and
records will be continuously maintained by the Administrator as official records
of the Trust.

               (iv) Each of the Depositor and the Trust will provide for its own
operating expenses and liabilities from its own funds. General overhead and
administrative expenses of the Trust will not be charged or otherwise allocated
to the Depositor or its Affiliates and such expenses of the Depositor or its
Affiliates will not be charged or otherwise allocated to the Trust.

               (v) The Trust will conduct its business under names or tradenames
so as not to mislead others as to the identity of the Trust. Without limiting
the generality of the foregoing, all oral and written communications, including
letters, invoices, contracts, statements and applications will be made solely in
the name of the Trust if related to the Trust. None of the Trust, the Depositor
or any Affiliate or any Certificateholder shall fail to correct any
misunderstanding regarding the separate identity of the Trust.

               (vi) There will be no financing of operations or guarantees made
by the Trust with respect to obligations of any Certificateholder or of the
Depositor or its Affiliates. There will be no financing of obligations or
guarantees made by the Depositor or any Affiliates or any Certificateholder with
respect to obligations of the Trust. There will not be any indebtedness relating
to borrowings or loans between the Trust and any Certificateholder or the
Depositor or its Affiliates.

               (vii) The Trust will act solely in its name and through its or
the Owner Trustee's or the Administrator's duly authorized officers or agents in
the conduct of its business.

                                      -4-

<PAGE>

The Trust will not (A) operate or purport to operate as an integrated, single
economic unit with respect to any Certificateholder or the Depositor or any
other affiliated or unaffiliated entity; (B) seek or obtain credit or incur any
obligation to any third party based upon the assets of any Certificateholder or
the Depositor or its Affiliates; or (C) induce any such third party to
reasonably rely on the creditworthiness of any Certificateholder or the
Depositor or any other affiliated or unaffiliated entity. The Depositor and its
Affiliates and any Certificateholder will not and the Trust will not permit such
parties to (A) operate or purport to operate as an integrated, single economic
unit with respect to the Trust; (B) seek or obtain credit or incur any
obligation to any third party based upon the assets of the Trust; or (C) induce
any such third party to reasonably rely on the creditworthiness of the Trust.

               (viii) The Trust will maintain its principal place of business in
the State of Delaware.

               (ix) The Trust and any Certificateholder and the Depositor shall
keep separate their respective funds and other assets and shall not commingle
such funds and other assets with those of any other Affiliates thereof and the
Trust keeps its funds and bank accounts separate and apart from any other
entity.

               (x) To the extent applicable, the Trust shall prepare or cause to
be prepared financial statements and records of the Trust that are distinct and
separate from those of any Certificateholder, the Depositor and any other
Affiliates (although they may be presented as part of the consolidated financial
statements of an Affiliate). These statements and reports shall be prepared and
maintained in accordance with generally accepted accounting principles and shall
be susceptible to audit. Any consolidated financial statements with the
Depositor or any Affiliates or any Certificateholder shall henceforth indicate
that the assets of the Trust are not available to satisfy the creditors of any
entity other than the Trust.

               (xi) The Trust will not engage in any transaction with an
Affiliate on any terms other than would be obtained in an arm's-length
transaction with a non-Affiliate.

               (xii) The Trust will not elect to be treated for federal income
tax purposes as a corporation under Treasury Regulations Section 301.7701-3 or
any successor provision and no Certificateholder or holder of an Ownership
Interest will make or participate in the making of any election to treat the
Trust as a corporation under Treasury Regulations Section 301.7701-3 or any
successor provision.

               (xiii) The Trust will not engage in activities that are contrary
to the status of the Trust as a qualifying special purpose entity under existing
accounting literature.

               (xiv) The Trust will not file and the Owner Trustee will not file
with respect to the Trust a petition for bankruptcy, reorganization, assignment
for the benefit of creditors or similar proceeding.

               (xv) The Trust will not incur, create or assume any indebtedness
for borrowed money other than Notes.

                                      -5-

<PAGE>

               (xvi) Neither the Trust nor the Owner Trustee will take any steps
to have Class C Certificates held through the Depositary Trust Company or any
similar arrangement. No Certificateholder or holder of an Ownership Interest
will take any steps to have Class C Certificates held through the Depositary
Trust Company or any similar arrangement.

          Section 2.10 Representations and Warranties of the Depositor. The
Depositor hereby represents and warrants to the Owner Trustee that:

               (i) The Depositor is duly organized and validly existing as a
corporation in good standing under the laws of the State of Delaware, with power
and authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted.

               (ii) The Depositor is duly qualified to do business as a foreign
corporation in good standing and has obtained all necessary licenses and
approvals in all jurisdictions in which the ownership or lease of its property
or the conduct of its business shall require such qualifications and in which
the failure to so qualify would have a material adverse effect on the business,
properties, assets or condition (financial or other) of the Depositor and the
ability of the Depositor to perform under this Trust Agreement.

               (iii) The Depositor has the power and authority to execute and
deliver this Trust Agreement and to carry out its terms; the Depositor has full
power and authority to sell and assign the property to be sold and assigned to
and deposited with the Trust as part of the Trust and the Depositor has duly
authorized such sale and assignment and deposit to the Trust by all necessary
corporate action; and the execution, delivery and performance of this Trust
Agreement have been duly authorized by the Depositor by all necessary corporate
action.

               (iv) The consummation of the transactions contemplated by this
Trust Agreement and the fulfillment of the terms hereof do not conflict with,
result in any breach of any of the terms and provisions of, or constitute (with
or without notice or lapse of time) a default under, the articles of
incorporation or bylaws of the Depositor, or any indenture, agreement or other
instrument to which the Depositor is a party or by which it is bound; nor result
in the creation or imposition of any Lien upon any of its properties pursuant to
the terms of any such indenture, agreement or other instrument (other than
pursuant to the Operative Documents); nor violate any law or, to the best of the
Depositor's knowledge, any order, rule or regulation applicable to the Depositor
of any court or of any federal or state regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Depositor or
its properties.

                                  ARTICLE III

             CONVEYANCE OF THE OWNER TRUST ESTATE; THE CERTIFICATES

          Section 3.01 Conveyance of the Owner Trust Estate. In consideration of
the delivery to the Depositor of the Certificates, the Depositor, concurrently
with the execution and delivery hereof, does hereby transfer, convey, sell and
assign to the Trust, on behalf of the Securityholders, without recourse, all of
its right, title and interest, whether now owned or

                                      -6-

<PAGE>

hereafter acquired, in and to (A) the Mortgage Loans and all Additional Balances
(other than Excluded Amounts) thereafter arising, including the Mortgage Notes,
the Mortgages, any related insurance policies and all other documents in the
related Mortgage Loan Files and including any Eligible Substitute Loans; (B) the
Certificate Distribution Account; (C) pool insurance policies, hazard insurance
policies and any bankruptcy bond relating to the foregoing, if applicable; (D)
all amounts payable after the Cut-off Date to the holders of the Mortgage Loans
in accordance with the terms thereof; (E) all income, payments, proceeds and
products of the conversion, voluntary or involuntary, of the foregoing into
cash, instruments, securities or other property, including without limitation
all amounts from time to time held or invested in the Certificate Distribution
Account, whether in the form of cash, instruments, securities or other property;
(F) all accounts, chattel paper, deposit accounts, documents, general
intangibles, goods, instruments, investment property, letter-of-credit rights,
letters of credit, money, and oil, gas, and other minerals, consisting of,
arising from, or relating to, any of the foregoing; and (G) all proceeds of any
of the foregoing (collectively, the "Owner Trust Estate").

          The Depositor and the Owner Trustee agree that it is not intended that
any Mortgage Loan be included in the Owner Trust Estate that is a "High-Cost
Home Loan" as defined in (i) the New Jersey Home Ownership Security Act
effective November 27, 2003, (ii) the New Mexico Home Loan Protection Act
effective January 1, 2004, (ii) the Massachusetts Predatory Home Loan Practices
Act effective November 7, 2004, (iv) the Indiana High Cost Home Loan Law Act
effective January, 2005 or (v) the Kentucky Revised Statutes Section 360.100, in
each case as amended from time to time.

          In connection with the assignment of the Mortgage Loans, the Depositor
does hereby deliver to, and deposit with the applicable Custodian acting on the
Indenture Trustee's behalf, the following documents or instruments with respect
to each Mortgage Loan:

          (A) The original Mortgage Note endorsed in blank, together with all
riders thereto. The Mortgage Note shall include all intervening endorsements
showing a complete chain of the title from the Transferor to
[____________________].

          (B) Except as provided below and for each Mortgage Loan that is not a
MERS Loan, the original recorded Mortgage together with all riders thereto, with
evidence of recording thereon, or, if the original Mortgage has not yet been
returned from the recording office, a copy of the original Mortgage together
with all riders thereto certified to be a true copy of the original of the
Mortgage that has been delivered for recording in the appropriate recording
office of the jurisdiction in which the Mortgaged Property is located and in the
case of each MERS Loan, the original Mortgage together with all riders thereto,
noting the presence of the MIN of the Loan and either language indicating that
the Mortgage Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan at
origination, the original Mortgage and the assignment thereof to MERS, with
evidence of recording indicated thereon, or a copy of the Mortgage certified by
the public recording office in which such Mortgage has been recorded.

          (C) In the case of each Mortgage Loan that is not a MERS Loan, the
original Assignment of each Mortgage in blank.

                                      -7-

<PAGE>

          (D) The original policy of title insurance (or a preliminary title
report, commitment or binder if the original title insurance policy has not been
received from the title insurance company).

          (E) Originals of any intervening assignments of the Mortgage, with
evidence of recording thereon or, if the original intervening assignment has not
yet been returned from the recording office, a copy of such assignment certified
to be a true copy of the original of the assignment which has been sent for
recording in the appropriate jurisdiction in which the Mortgaged Property is
located.

          (F) Originals of all assumption and modification agreements, if any.

          (G) If in connection with any Mortgage Loan, the Depositor cannot
deliver the Mortgage, Assignments of Mortgage or assumption, consolidation or
modification, as the case may be, with evidence of recording thereon, if
applicable, concurrently with the execution and delivery of this Agreement
solely because of a delay caused by the public recording office where such
Mortgage, Assignments of Mortgage or assumption, consolidation or modification,
as the case may be, has been delivered for recordation, the Depositor shall
deliver or cause to be delivered to the Custodian written notice stating that
such Mortgage or assumption, consolidation or modification, as the case may be,
has been delivered to the appropriate public recording office for recordation.
Thereafter, the Depositor shall deliver or cause to be delivered to the
Custodian such Mortgage, Assignments of Mortgage or assumption, consolidation or
modification, as the case may be, with evidence of recording indicated thereon,
if applicable, upon receipt thereof from the public recording office. To the
extent any required endorsement is not contained on a Mortgage Note or an
Assignment of Mortgage, the Depositor shall make or cause to be made such
endorsement.

          (H) With respect to any Mortgage Loan, none of the Depositor, the
Master Servicer, the Servicers, the Custodians, the Securities Administrator or
the Indenture Trustee shall be obligated to cause to be recorded the Assignment
of Mortgage referred to in this Section 3.01. In the event an Assignment of
Mortgage is not recorded, the Servicers and the Master Servicer shall have no
liability for its failure to receive and act on notices related to such
Assignment of Mortgage.

     The ownership of each Mortgage Note, the Mortgage and the contents of the
related Mortgage File is vested in the Trust and pledged to the Indenture
Trustee on behalf of the Securityholders. None of the Depositor, the Master
Servicer or the Servicers shall take any action inconsistent the foregoing and
shall not claim any ownership interest therein. The Depositor, the Master
Servicer and the Servicers shall respond to any third party inquiries with
respect to ownership of the Mortgage Loans by stating that such ownership is
held by the Trust and pledged to the Indenture Trustee on behalf of the
Securityholders. Mortgage documents relating to the Mortgage Loans not delivered
to the Custodians on the Indenture Trustee's behalf are and shall be held in
trust by the Servicers, for the benefit of the Trust as the owner thereof, and
the Servicers' possession of the contents of each Mortgage File so retained is
for the sole purpose of servicing the related Mortgage Loan, and such retention
and possession by the Servicers, is in a custodial capacity only. The Depositor
agrees to take no action inconsistent

                                      -8-

<PAGE>

with the Trust's ownership of the Mortgage Loans, to indicate promptly to all
inquiring parties that the Mortgage Loans have been sold and to claim no
ownership interest in the Mortgage Loans.

          Section 3.02 [RESERVED].

          Section 3.03 The Certificates. Initially, the Trust shall issue a
single denomination of a 100.00% Certificate Percentage Interest of the Class C
Certificates. The Class C Certificates shall represent a beneficial interest in
the portion of the Trust relating to the Mortgage Loans. Initially, the Trust
shall issue a single denomination of a 100.00% Certificate Percentage Interest
of the Class P Certificates. The Class P Certificates shall represent a 100%
beneficial interest in the portion of the Trust relating to Prepayment Charges
on the Mortgage Loans. Initially, the Trust shall issue a single denomination of
a 100.00% Certificate Percentage Interest of the Class G Certificates.
Initially, the Trust shall issue a single denomination of a 100.00% Certificate
Percentage Interest of the Class R Certificates. For purposes of the REMIC
Provisions, the Class R Certificate and Class G Certificate shall each represent
the sole "residual interest" in one or more of the REMICs as set forth in the
Indenture.

          The Certificates shall be executed on behalf of the Trust by manual or
facsimile signature of an authorized officer of the Owner Trustee and
authenticated in the manner provided in Section 3.04. If the Certificates bear
the manual or facsimile signatures of individuals who were, at the time when
such signatures shall have been affixed, authorized to sign on behalf of the
Trust, it shall be validly issued and entitled to the benefit of this Trust
Agreement, notwithstanding that such individuals or any of them shall have
ceased to be so authorized prior to the authentication and delivery of the
Certificates or did not hold such offices at the date of authentication and
delivery of the Certificates. A Person shall become a Certificateholder and
shall be entitled to the rights and subject to the obligations of the
Certificateholders hereunder upon such Person's acceptance of the Certificates
duly registered in such Person's name, pursuant to Section 3.05.

          A transferee of a Certificate shall become a Certificateholder and
shall be entitled to the rights and subject to the obligations of the
Certificateholders hereunder upon such transferee's acceptance of such
Certificate duly registered in such transferee's name pursuant to and upon
satisfaction of the conditions set forth in Section 3.05.

          Section 3.04 Authentication of Certificate. Concurrently with the
acquisition of the Mortgage Loans by the Trust, the Owner Trustee or the
Certificate Paying Agent shall cause each Class of Certificates to be issued in
a Certificate Percentage Interest of 100.00%, to be executed on behalf of the
Trust, authenticated and delivered upon the written order of the Depositor,
signed by its chairman of the board, its president, any vice president or any
authorized officer, without further corporation action by the Depositor, in the
authorized denomination. A Certificate shall not entitle its holder to any
benefit under this Trust Agreement or be valid for any purpose unless there
shall appear on such Certificate a certificate of authentication substantially
in the form set forth in Exhibit A, Exhibit I, Exhibit K or Exhibit L executed
by the Owner Trustee or the Certificate Paying Agent, by manual signature; such
authentication shall constitute conclusive evidence that such Certificate shall
have been duly authenticated and delivered hereunder. Each Certificate shall be
dated the date of its authentication.

                                      -9-

<PAGE>

          Section 3.05 Registration of and Limitations on Transfer and Exchange
of Certificate. (i) The Certificate Registrar shall keep or cause to be kept, at
the office or agency maintained pursuant to Section 3.09, a Certificate Register
in which, subject to such reasonable regulations as it may prescribe, the
Certificate Registrar shall provide for the registration of the Certificates and
of transfers and exchanges of the Certificates as herein provided. The
Securities Administrator shall be the initial Certificate Registrar. If the
Certificate Registrar resigns or is removed, the Owner Trustee shall appoint a
successor Certificate Registrar.

          Upon surrender for registration or transfer of a Certificate at the
office or agency maintained pursuant to Section 3.09, the Owner Trustee shall
execute, authenticate and deliver (or shall cause the Certificate Registrar as
its authenticating agent to authenticate and deliver) in the name of the
designated transferee or transferees, a new Certificate in authorized
denominations of a like aggregate amount dated the date of authentication by the
Owner Trustee or any authenticating agent. At the option of a Certificateholder,
such Certificateholder's Certificate may be exchanged for another Certificate of
authorized denominations of a like aggregate amount upon surrender of the
Certificate to be exchanged at the office or agency maintained pursuant to
Section 3.09.

          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 Certificate Registrar duly executed by the registered
holder of such Certificate or such holder's attorney duly authorized in writing.
When a Certificate is surrendered for registration of transfer or exchange it
shall be canceled and subsequently disposed of by the Certificate Registrar in
accordance with its customary practice.

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

          No transfer, sale, pledge or other disposition of the Class G, Class P
or Class C Certificates shall be made unless such transfer, sale, pledge or
other disposition is exempt from the registration requirements of the Securities
Act and any applicable state securities laws or is made in accordance with said
Act and laws. In the event of any such transfer, the Certificate Registrar or
the Depositor shall prior to such transfer require the transferee to execute
either (i) an investment letter in substantially the form attached hereto as
Exhibit C (or in such form and substance reasonably satisfactory to the
Certificate Registrar and the Depositor), which investment letters shall not be
an expense of the Trust, the Owner Trustee, the Certificate Registrar, the
Master Servicer, the Servicers or the Depositor and which investment letter
states that, among other things, such transferee (a) is a "qualified
institutional buyer" as defined under Rule 144A, acting for its own account or
the accounts of other "qualified institutional buyers" as defined under Rule
144A, and (b) is aware that the proposed transferor intends to rely on the
exemption from registration requirements under the Securities Act of 1933, as
amended, provided by Rule 144A or (ii) (a) a written Opinion of Counsel
acceptable to and in form and substance satisfactory to the Certificate
Registrar and the Depositor that such transfer may be made pursuant to an
exemption, describing the applicable exemption and the basis therefor, from said
Act and laws or is being made pursuant to said Act and laws, which Opinion of
Counsel

                                      -10-

<PAGE>

shall not be an expense of the Trust, the Owner Trustee, the Certificate
Registrar, the Master Servicer, the Servicers or the Depositor and (b) the
transferee executes a representation letter, substantially in the form of
Exhibit D hereto, and the transferor executes a representation letter,
substantially in the form of Exhibit E hereto, each acceptable to and in form
and substance satisfactory to the Certificate Registrar and the Depositor
certifying the facts surrounding such transfer, which representation letters
shall not be an expense of the Trust, the Owner Trustee, the Certificate
Registrar, the Master Servicer, the Servicer or the Depositor. The
Certificateholder desiring to effect such transfer shall, and does hereby agree
to, indemnify the Trust, the Owner Trustee, the Certificate Registrar, the
Master Servicer, the Securities Administrator, the Servicers and the Depositor
against any liability that may result if the transfer is not so exempt or is not
made in accordance with such federal and state laws.

          The transferee of a Certificate shall be deemed to have represented,
substantially in the form of Exhibit F, that it is not, and is not directly or
indirectly acquiring the Certificate for, on behalf of, or with any assets of, a
Plan or plan subject to Similar Law.

          Any purported transfer of a Certificate to or on behalf of a Plan in
violation of the representations described in the preceding paragraph shall be
void and of no effect. The Securities Administrator and the Certificate
Registrar shall be under no liability to any person for any registration or
transfer of any Certificate that is in fact not permitted, for making any
payments due on such Certificate to the holder thereof or taking any other
action with respect to such holder so long as the transfer was registered in
accordance with the foregoing requirements and so long as prior to registering
such transfer, the Securities Administrator or the Certificate Registrar
receives any transfer certificate, affidavit or opinion required to be delivered
to it hereunder. The Securities Administrator shall be entitled, but not
obligated, to recover from any holder of any Certificate that was in fact a Plan
or plan subject to Similar Law, as applicable, or person acting on behalf of a
Plan or plan subject to Similar Law, as applicable, at the time it became a
holder or that subsequently became a Plan or person acting on behalf of a Plan,
all payments made on such Certificate at and after either such time. Any such
payments so recovered by the Securities Administrator shall be paid and
delivered to the last preceding holder of such Certificate that is not such a
Plan or plan subject to Similar Law, as applicable, or person acting on behalf
of a Plan or plan subject to Similar Law, as applicable.

          In addition, with respect to each Class G or Class R Certificate, (i)
each Person who has or who acquires any Ownership Interest in a Class G or Class
R Certificate shall be deemed by the acceptance or acquisition of such Ownership
Interest to have agreed to be bound by the following provisions and the rights
of each Person acquiring any Ownership Interest in a Class G or Class R
Certificate are expressly subject to the following provisions:

                    (A) Each Person holding or acquiring any Ownership Interest
               in a Class G or Class R Certificate shall be a Permitted
               Transferee and shall promptly notify the Owner Trustee of any
               change or impending change in its status as a Permitted
               Transferee.

                    (B) No Ownership Interest in a Class G or Class R
               Certificate may be purchased, transferred or sold, directly or
               indirectly, except in accordance with the provisions hereof. No
               Ownership Interest in a Class

                                      -11-

<PAGE>

               G or Class R Certificate may be registered on the Closing Date or
               thereafter transferred, and the Certificate Registrar shall not
               register the Transfer of any Class G or Class R Certificate
               unless, in addition to any other certificates required to be
               delivered under this Section 3.05, the Certificate Registrar
               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 J-1 and an affidavit of the
               proposed transferor in the form attached hereto as Exhibit J-2.
               In the absence of a contrary instruction from the transferor of a
               Class G or Class R Certificate, declaration (11) in Appendix A of
               the Transfer Affidavit may be left blank. If the transferor
               requests by written notice to the Certificate Registrar prior to
               the date of the proposed transfer that one of the two other forms
               of declaration (11) in Appendix A of the Transfer Affidavit be
               used, then the requirements of this Section 3.05(B) shall not
               have been satisfied unless the Transfer Affidavit includes such
               other form of declaration.

                    (C) Notwithstanding the delivery of a Transfer Affidavit and
               Agreement by a proposed Transferee under clause (B) above, if a
               Responsible Officer of the Certificate Registrar who is assigned
               to this Agreement has actual knowledge that the proposed
               Transferee is not a Permitted Transferee, no Transfer of an
               Ownership Interest in a Class G or Class R Certificate to such
               proposed Transferee shall be effected.

                    (D) Each Person holding or acquiring any Ownership Interest
               in a Class G or Class R Certificate shall agree (x) to obtain a
               Transfer Affidavit from any other Person to whom such Person
               attempts to Transfer its Ownership Interest in a Class G or Class
               R Certificate, (y) 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 G or Class R Certificate
               and (z) not to Transfer its Ownership Interest in a Class G or
               Class R Certificate or to cause the Transfer of an Ownership
               Interest in a Class G or Class R Certificate to any other Person
               if it has actual knowledge that such Person is not a Permitted
               Transferee. Further, no transfer, sale or other disposition of
               any Ownership Interest in a Class G or Class R Certificate may be
               made to a person who is not a U.S. Person (within the meaning of
               section 7701 of the Code) unless such person furnishes the
               transferor and the Certificate Registrar with a duly completed
               and effective Internal Revenue Service Form W-8ECI (or any
               successor thereto) and the Certificate Registrar consents to such
               transfer, sale or other disposition in writing.

                    (E) Any attempted or purported Transfer of any Ownership
               Interest in a Class G or Class R Certificate in violation of the
               provisions of Section 3.05(i)(A)-(D) 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 G or Class
               R Certificate in violation of the

                                      -12-

<PAGE>

               provisions of Section 3.05(i)(A)-(D), 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 G or Class R Certificate. The Certificate Registrar
               shall be under no liability to any Person for any registration of
               Transfer of a Class G or Class R Certificate that is in fact not
               permitted by Section 3.05(i)(A), Section 3.05(i)(B) or Section
               3.05(i)(D) 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. The Certificate Registrar shall be entitled but not
               obligated to recover from any Holder of a Class G or Class 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 G or Class R Certificate at and after either such time. Any
               such payments so recovered by the Certificate Registrar shall be
               paid and delivered by the Certificate Registrar to the last
               preceding Permitted Transferee of such Certificate.

               (ii) At the option of the Holder of the Class R Certificate, the
multiple "residual interests" represented by the Class R Certificate may be
severed and represented by separate certificates (with the separate certificate
that represents the residual interest in the highest-tier REMIC also
representing any interest of the Class R Certificate with respect to non-REMIC
notional principal contracts described in the Indenture); provided, however,
that such separate certification may not occur until the Certificate Registrar
receives an Opinion of Counsel to the effect that separate certification in the
form and manner proposed would not result in the imposition of federal tax upon
the Trust or any of the REMICs provided for in the Indenture or cause any of the
REMICs provided for in the Indenture to fail to qualify as a REMIC; and provided
further, that the provisions of Sections 3.05 will apply to each such separate
certificate as if the separate certificate were a Class R Certificate. If, as
evidenced by an Opinion of Counsel, it is necessary to preserve the REMIC status
of any of the REMICs provided for in the Indenture, the multiple "residual
interests" represented by the Class R Certificate may be severed and represented
by separate certificates (with the separate certificate that represents the
residual interest in the highest-tier REMIC also representing any interest of
the Class R Certificate with respect to non-REMIC notional principal contracts
described in the Indenture).

               (iii) Each Person holding or acquiring any Ownership Interest in
a Class G or Class R Certificate hereby consents to any amendment of this
Agreement that, based on an Opinion of Counsel furnished to the Certificate
Registrar, is reasonably necessary (a) to ensure that the record ownership of,
or any beneficial interest in, a Class G or Class 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 G or
Class R Certificate that is held by a Person that is not a Permitted Transferee
to a Holder that is a Permitted Transferee.

               (iv) The Certificate Paying Agent shall make available, upon
written request from the Internal Revenue Service and any potentially affected
Person, all information

                                      -13-
<PAGE>

necessary to compute any tax imposed (A) as a result of the Transfer of an
Ownership Interest in a Class G or Class R Certificate to any Person who is a
Disqualified Organization, including the information regarding "excess
inclusions" of such Class G or Class R Certificates required to be provided to
the Internal Revenue Service and certain Persons as described in Treasury
Regulations Sections 1.860D-1(b)(5) and 1.860E-2(a)(5), and (B) as a result of
any regulated investment company, real estate investment trust, common trust
fund, partnership, trust, estate or organization described in Section 1381 of
the Code that holds an Ownership Interest in a Class G or Class R Certificate
having as among its record holders at any time any Person who is a Disqualified
Organization. Reasonable compensation for providing such information may be
required by the REMIC Administrator before it will provide such information to
any such potentially affected Person.

               (v) The provisions of this Section 3.05 set forth prior to this
clause (v) may be modified, added to or eliminated, provided that there shall
have been delivered to the Owner Trustee and the Certificate Registrar the
following:

                    (A) written notification from each Rating Agency to the
               effect that the modification, addition to or elimination of such
               provisions will not cause such Rating Agency to downgrade its
               then-current ratings, if any, if determined without regard to the
               Policy, of any Class of the Notes below the lower of the
               then-current rating or the rating assigned to such Notes as of
               the Closing Date by such Rating Agency; and (B) subject to
               Section 10.01(f), an Officers' Certificate of the Securities
               Administrator stating that the Securities Administrator has
               received an Opinion of Counsel, in form and substance
               satisfactory to the Securities Administrator, to the effect that
               such modification, addition to or absence of such provisions will
               not cause any portion of any of the REMICs created under the
               Indenture to cease to qualify as a REMIC and will not cause (x)
               any portion of any of the REMICs created under the Indenture to
               be subject to an entity-level tax caused by the Transfer of any
               Class G or Class R Certificate to a Person that is a Disqualified
               Organization or (y) a Certificateholder or another Person to be
               subject to a REMIC-related tax caused by the Transfer of a Class
               G or Class R Certificate to a Person that is not a Permitted
               Transferee.

          Notwithstanding any term herein contained to the contrary, neither the
Securities Administrator nor the Certificate Registrar shall be under any
obligation to determine or monitor whether any transfer or exchange of any
Security complies with the Securities Act, or any other state securities laws
that may be applicable, or ERISA, the Investment Company Act or the Code, or
with the applicable restrictions set forth herein; provided, however, that if a
certificate, letter or opinion is specifically required by the express terms of
this Section 3.05 to be delivered to the Securities Administrator or the
Certificate Registrar prior to a registration of a transfer, the Securities
Administrator or the Certificate Registrar, as the case may be, shall be under a
duty to receive the same, and to examine it to determine whether it conforms on
its face to the applicable requirements of this Section 3.05. The Securities
Administrator or the Certificate Registrar shall be entitled to rely
conclusively upon, and to assume the continuing truth and accuracy of, each
representation letter, certificate or opinion received by it from time to time
pursuant to the terms

                                      -14-

<PAGE>

hereof, without further inquiry on its part; and has no responsibility for the
sufficiency of the terms of this Section 3.05 or the form of the representation
letters attached hereto.

          Section 3.06 Mutilated, Destroyed, Lost or Stolen Certificates. If (a)
any mutilated Certificate shall be surrendered to the Certificate Registrar, or
if the Certificate Registrar shall receive evidence to its satisfaction of the
destruction, loss or theft of any Certificate and (b) there shall be delivered
to the Certificate Registrar and the Owner Trustee such security or indemnity as
may be required by them to save each of them and the Trust from harm, then in
the absence of notice to the Certificate Registrar or the Owner Trustee that
such Certificate has been acquired by a protected purchaser, the Owner Trustee
shall execute on behalf of the Trust and the Owner Trustee or the Certificate
Paying Agent, as the Trust's authenticating agent, shall authenticate and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like tenor and denomination. In
connection with the issuance of any new Certificate under this Section 3.06, the
Owner Trustee or the Certificate Registrar may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith. Any duplicate Certificate issued pursuant to this Section
3.06 shall constitute conclusive evidence of ownership in the Trust, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

          Section 3.07 Persons Deemed Certificateholders. Prior to due
presentation of the Certificates for registration of transfer, the Owner
Trustee, the Certificate Registrar or any Certificate Paying Agent may treat the
Person in whose name any Certificate is registered in the Certificate Register
as the owner of such Certificate for the purpose of receiving distributions
pursuant to Section 5.02 and for all other purposes whatsoever, and none of the
Trust, the Owner Trustee, the Certificate Registrar or any Certificate Paying
Agent shall be bound by any notice to the contrary.

          Section 3.08 Access to Certificateholders' Name and Addresses.
The Certificate Registrar shall furnish or cause to be furnished to the
Depositor or the Owner Trustee, within 15 days after receipt by the Certificate
Registrar of a written request therefor from the Depositor or the Owner Trustee,
a list, in such form as the Depositor or the Owner Trustee, as the case may be,
may reasonably require, of the names and addresses of the Certificateholders as
of the most recent Record Date. Each Certificateholder, by receiving and holding
the Certificates, shall be deemed to have agreed not to hold any of the Trust,
the Depositor, the Certificate Registrar or the Owner Trustee accountable by
reason of the disclosure of its name and address, regardless of the source from
which such information was derived.

          Section 3.09 Maintenance of Office or Agency. The Certificate
Registrar shall maintain in Chicago, Illinois an office or offices or agency or
agencies where the Certificates may be surrendered for registration of transfer
or exchange and where notices and demands to or upon the Trust in respect of the
Certificates and the Operative Documents may be served. The Certificate
Registrar initially designates the Corporate Trust Office of the Securities
Administrator as its office for such purposes. The Certificate Registrar shall
give prompt written notice to the Depositor and the Certificateholders of any
change in the location of the Certificate Register or any such office or agency.

                                      -15-
<PAGE>

          Section 3.10 Certificate Paying Agent. (a) The Certificate Paying
Agent shall make distributions to the Certificateholders from the Certificate
Distribution Account on behalf of the Trust in accordance with the provisions of
the Certificates and Section 5.01 hereof from payments remitted to the
Certificate Paying Agent by the Securities Administrator pursuant to Section
3.05 of the Indenture. The Trust hereby appoints the Securities Administrator as
Certificate Paying Agent. The Certificate Paying Agent shall:

               (i) hold all sums held by it for the payment of amounts due with
respect to the Certificates in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of
as herein provided;

               (ii) give the Owner Trustee notice of any default by the Trust of
which a Responsible Officer of the Certificate Paying Agent has actual knowledge
in the making of any payment required to be made with respect to the
Certificates;

               (iii) at any time during the continuance of any such default by
the Trust, upon the written request of the Owner Trustee forthwith pay to the
Owner Trustee on behalf of the Trust all sums held in trust by the Certificate
Paying Agent pursuant to clause (i) above;

               (iv) immediately resign as Certificate Paying Agent and forthwith
pay to the Owner Trustee on behalf of the Trust all sums held by it in trust for
the payment of the Certificates if at any time it ceases to meet the standards
required to be met by the Certificate Paying Agent at the time of its
appointment;

               (v) comply with all requirements of the Code with respect to the
withholding from any payments made by it on the Certificates of any applicable
withholding taxes imposed thereon and with respect to any applicable reporting
requirements in connection therewith; and

               (vi) deliver to the Owner Trustee a copy of the report to
Certificateholders prepared with respect to each Payment Date by the Securities
Administrator.

          (b) The Trust may revoke such power and remove the Certificate Paying
Agent if the Owner Trustee determines in its sole discretion that the
Certificate Paying Agent shall have failed to perform its obligations under this
Trust Agreement in any material respect. The Securities Administrator shall be
permitted to resign as Certificate Paying Agent upon 30 days written notice to
the Owner Trustee; provided the Securities Administrator is also resigning as
Paying Agent and Securities Administrator under the Indenture at such time as
well as Master Servicer under the Servicing Agreement and as Administrator under
the Administration Agreement. In the event that the Securities Administrator
shall no longer be the Certificate Paying Agent under this Trust Agreement and
Paying Agent under the Indenture, the Owner Trustee shall appoint a successor to
act as Certificate Paying Agent (which shall be a bank or trust company) and
which shall also be the successor Paying Agent under the Indenture. The Owner
Trustee shall cause such successor Certificate Paying Agent or any additional
Certificate Paying Agent appointed by the Owner Trustee to execute and deliver
to the Owner Trustee an instrument to the effect set forth in this Section 3.10
as it relates to the Certificate Paying Agent.

                                      -16-

<PAGE>

The Certificate Paying Agent shall return all unclaimed funds to the Trust and
upon removal of a Certificate Paying Agent such Certificate Paying Agent shall
also return all funds in its possession to the Trust. The provisions of Sections
6.01, 6.04, 6.05, 6.06, 6.07, 7.01, 7.02 and 7.03 shall apply to the Certificate
Paying Agent to the extent applicable. Any reference in this Trust Agreement to
the Certificate Paying Agent shall include any co-paying agent unless the
context requires otherwise.

          (c) The Certificate Paying Agent shall establish and maintain with
itself the "Certificate Distribution Account" in which the Certificate Paying
Agent shall deposit, on the same day as it is received from the Securities
Administrator, each remittance received by the Certificate Paying Agent with
respect to payments made pursuant to the Indenture. The Certificate Paying Agent
shall make all distributions on the Certificates from moneys on deposit in the
Certificate Distribution Account. Amounts in the Certificate Distribution
Account shall remain uninvested.

          Section 3.11 Subordination. Except as otherwise provided in the
Operative Documents, for so long as any Notes are outstanding or unpaid, the
Certificateholders, other than the holders of the Class G Certificates, will
generally be subordinated in right of payment, under the Certificates or
otherwise, to payments to the Noteholders under, or otherwise related to, the
Indenture. Except as otherwise provided in the Operative Documents, if an Event
of Default has occurred and is continuing under the Indenture, the Certificates
will be fully subordinated to obligations owing by the Trust to the Noteholders
under, or otherwise related to, the Indenture, and no distributions will be made
on the Certificates until the Noteholders, the Master Servicer, the
Administrator and the Securities Administrator have been irrevocably paid in
full.

                                   ARTICLE IV

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

          Section 4.01 General Authority. The Owner Trustee is authorized and
directed to execute and deliver the Operative Documents to which the Trust is to
be a party and each certificate or other document attached as an exhibit to or
contemplated by the Operative Documents to which the Trust is to be a party and
any amendment or other agreement or instrument described herein, in each case,
in such form as the Owner Trustee shall approve, as evidenced conclusively by
the Owner Trustee's execution thereof.

          Section 4.02 General Duties. The Owner Trustee shall be responsible to
administer the Trust pursuant to the terms of this Trust Agreement and in the
interest of the Certificateholders, subject to the Operative Documents and in
accordance with the provisions of this Trust Agreement. Notwithstanding the
foregoing, the Owner Trustee shall be deemed to have discharged its duties under
this Trust Agreement and the other Operative Documents to the extent that the
Seller or the Administrator shall have agreed in the Administration Agreement to
perform the duties of the Owner Trustee or the Trust, and the Owner Trustee
shall not be responsible for monitoring the performance of such duties by the
Seller or the Administrator nor shall the Owner Trustee be liable for the acts
or omissions of the Seller or the Administrator. In no event shall the Owner
Trustee be obligated to assume the duties of the Seller or Administrator

                                      -17-

<PAGE>

in the event of the Seller's or Administrator's resignation, removal, insolvency
or other incapacity.

          Section 4.03 Action upon Instruction.

          (a) Subject to this Article IV and in accordance with the terms of the
Operative Documents, holders of a majority of the Certificate Percentage
Interest or each class of Certificates may by written instruction direct the
Owner Trustee in the management of the Trust. Such direction may be exercised at
any time by written instruction of a majority of the Certificate Percentage
Interest of each class of Certificates pursuant to this Article IV.

          (b) Notwithstanding the foregoing, the Owner Trustee shall not be
required to take any action hereunder or under any Operative Document if the
Owner Trustee shall have reasonably determined, or shall have been advised by
counsel, that such action is likely to result in liability on the part of the
Owner Trustee or is contrary to the terms hereof or of any Operative Document or
is otherwise contrary to law or may adversely affect the status of any REMIC
created under the Indenture as a REMIC or cause any tax to be imposed on any
such REMIC.

          (c) Whenever the Owner Trustee is required to decide or is unable to
decide between alternative courses of action permitted or required by the terms
of this Trust Agreement or under any Operative Document, or in the event that
the Owner Trustee is unsure as to the application of any provision of this Trust
Agreement or any Operative Document or any such provision is ambiguous as to its
application, or is, or appears to be, in conflict with any other applicable
provision, or in the event that this Trust Agreement permits any determination
by the Owner Trustee or is silent or is incomplete as to the course of action
that the Owner Trustee is required to take with respect to a particular set of
facts, the Owner Trustee shall promptly give notice (in such form as shall be
appropriate under the circumstances) to the Certificateholders requesting
direction as to the course of action to be adopted and to the extent the Owner
Trustee acts in good faith in accordance with any written instructions received
from such Certificateholders pursuant to Section 4.03(a) above, the Owner
Trustee shall not be liable on account of such action to any Person. If the
Owner Trustee shall not have received appropriate instruction within 10 days of
such notice (or within such shorter period of time as reasonably may be
specified in such notice or may be necessary under the circumstances) it may,
but shall be under no duty to, take or refrain from taking such action not
inconsistent with this Trust Agreement or the Operative Documents, as it shall
deem to be in the best interests of the Certificateholders, and the Owner
Trustee shall have no liability to any Person for such action or inaction.

          Section 4.04 No Duties Except as Specified under Specified Documents
or in Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any payment with respect to, register, record, sell, dispose of, or
otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from
taking any action under, or in connection with, any document contemplated hereby
to which the Owner Trustee is a party, except as expressly required by this
Trust Agreement; and no implied duties or obligations shall be read into this
Trust Agreement or any Operative Document against the Owner Trustee. The Owner
Trustee shall have no responsibility to prepare or file any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security

                                      -18-

<PAGE>

interest or lien granted to it hereunder or to prepare or file any Securities
and Exchange Commission filing for the Trust or to record this Trust Agreement
or any Operative Document. The Owner Trustee nevertheless agrees that it will,
at its own cost and expense, promptly take all action as may be necessary to
discharge any liens on any part of the Owner Trust Estate that result from
actions by, or claims against, the Owner Trustee in its individual capacity that
are not related to the ownership or the administration of the Owner Trust
Estate.

          Section 4.05 Restrictions.

          (a) The Owner Trustee shall not take any action (x) that is
inconsistent with the purposes of the Trust set forth in Section 2.03, (y) that,
to the actual knowledge of the Owner Trustee, would result in the Trust becoming
taxable as a corporation for federal income tax purposes or (z) that, to the
actual knowledge of the Owner Trustee, may adversely affect the status of any
REMIC created under the Indenture as a REMIC or cause any tax to be imposed on
any such REMIC. The Certificateholders shall not direct the Owner Trustee to
take action that would violate the provisions of this Section 4.05.

          (b) The Owner Trustee shall not convey or transfer any of the Trust's
properties or assets, including those included in the Owner Trust Estate, to any
person nor shall the Owner Trustee acquire any properties or assets on behalf of
the Trust after the Closing Date (other than as expressly provided for in the
Operative Agreements) unless (a) it shall have received an Opinion of Counsel to
the effect that such transaction will not have any material adverse tax
consequence to the Trust, any REMICs provided for in the Indenture or any
Certificateholder and (b) such conveyance or transfer shall not violate the
provisions of Section 3.15(b) of the Indenture.

          Section 4.06 Prior Notice to the Certificateholders with Respect to
Certain Matters. With respect to the following matters, the Owner Trustee shall
not take action unless at least 30 days before the taking of such action, the
Owner Trustee shall have notified the Certificateholders of the proposed action
and the holders of a majority of the Certificate Percentage Interest shall not
have notified the Owner Trustee in writing prior to the 30th day after such
notice is given that such holders have withheld consent or provided alternative
direction:

          (a) the initiation of any claim or lawsuit by the Trust and the
compromise of any action, claim or lawsuit brought by or against the Trust;

          (b) the election by the Trust to file an amendment to the Certificate
of Trust (unless such amendment is required to be filed under the Statutory
Trust Statute);

          (c) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is required;

          (d) the amendment of the Indenture by a supplemental indenture in
circumstances where the consent of any Noteholder is not required and such
amendment materially adversely affects the interest of the Certificateholders;
and

                                      -19-

<PAGE>

          (e) the appointment pursuant to the Indenture of a successor Note
Registrar, Paying Agent or Securities Administrator or pursuant to this Trust
Agreement of a successor Certificate Registrar or Certificate Paying Agent or
the consent to the assignment by the Note Registrar, Paying Agent, Securities
Administrator, Certificate Registrar or Certificate Paying Agent of its
obligations under the Indenture or this Trust Agreement, as applicable.

          Section 4.07 Action by Certificateholders with Respect to Certain
Matters. The Owner Trustee shall not have the power, except upon the direction
of the Certificateholders and except as expressly provided in the Operative
Documents, to sell the Mortgage Loans after the termination of the Indenture.
The Owner Trustee shall take the actions referred to in the preceding sentence
only upon written instructions signed by the Certificateholders.

          Section 4.08 Action by Certificateholder with Respect to Bankruptcy.
The Owner Trustee shall not have the power to commence a voluntary proceeding in
bankruptcy relating to the Trust without the prior approval of the
Certificateholders and the delivery to the Owner Trustee by each
Certificateholder of a certificate certifying that such Certificateholder
reasonably believes that the Trust is insolvent.

          Section 4.09 Restrictions on Certificateholders' Power. The
Certificateholders shall not direct the Owner Trustee to take or to refrain from
taking any action if such action or inaction would be contrary to any obligation
of the Trust or the Owner Trustee under this Trust Agreement or any of the
Operative Documents or would be contrary to Section 2.03, nor shall the Owner
Trustee be obligated to follow any such direction, if given.

          Section 4.10 Doing Business in Other Jurisdictions. Notwithstanding
anything contained herein to the contrary, neither Wilmington Trust Company nor
the Owner Trustee shall be required to take any action in any jurisdiction other
than in the State of Delaware if the taking of such action will, even after the
appointment of a co-trustee or separate trustee in accordance with Section 9.05
hereof, (i) require the consent or approval or authorization or order of or the
giving of notice to, or the registration with or the taking of any other action
in respect of, any state or other governmental authority or agency of any
jurisdiction other than the State of Delaware; (ii) result in any fee, tax or
other governmental charge under the laws of the State of Delaware becoming
payable by Wilmington Trust Company, or (iii) subject Wilmington Trust Company
to personal jurisdiction in any jurisdiction other than the State of Delaware
for causes of action arising from acts unrelated to the consummation of the
transactions by Wilmington Trust Company or the Owner Trustee, as the case may
be, contemplated hereby.

                                    ARTICLE V

                           APPLICATION OF TRUST FUNDS

          Section 5.01 Distributions.

          (a) On each Payment Date, the Certificate Paying Agent shall
distribute from amounts on deposit in the Certificate Distribution Account, the
Class G Certificate Distribution Amount with respect to such Payment Date to the
holders of the Class G Certificates. On each Payment Date, the Certificate
Paying Agent shall distribute to the holders of the Class G

                                      -20-

<PAGE>

Certificates, all allocations of principal and interest distributable in respect
of Excluded Amounts with respect to such Payment Date. On each Payment Date, the
Certificate Paying Agent shall distribute from amounts on deposit in the
Certificate Distribution Account, the Class R Certificate Distribution Amount
with respect to such Payment Date to the holders of the Class R Certificates. On
each Payment Date, the Certificate Paying Agent shall distribute from amounts on
deposit in the Certificate Distribution Account, the Class P Certificate
Distribution Amount with respect to such Payment Date to the holders of the
Class P Certificates. On each Payment Date, the Certificate Paying Agent shall
distribute from amounts on deposit in the Certificate Distribution Account, the
Class C Certificate Distribution Amount with respect to such Payment Date to the
holders of the Class C Certificates.

          (b) In the event that any withholding tax is imposed on the
distributions (or allocations of income) to the Certificateholders, such tax
shall reduce the amount otherwise distributable to the Certificateholders in
accordance with this Section 5.01. The Certificate Paying Agent is hereby
authorized and directed to retain or cause to be retained from amounts otherwise
distributable to the Certificateholders sufficient funds for the payment of any
tax that is legally owed by the Trust (but such authorization shall not prevent
the Owner Trustee from contesting any such tax in appropriate proceedings, and
withholding payment of such tax, if permitted by law, pending the outcome of
such proceedings). The amount of any withholding tax imposed with respect to any
Certificateholder shall be treated as cash distributed to such Certificateholder
at the time it is withheld by the Certificate Paying Agent. The amount of any
such withholding tax shall be remitted by the Certificate Paying Agent, as
required, to the appropriate taxing authority. If there is a possibility that
withholding tax is payable with respect to a distribution (such as a
distribution to a non-U.S. Certificateholder), the Certificate Paying Agent may
in its sole discretion withhold such amounts in accordance with this paragraph
(b).

          (c) Except as provided in the Indenture, distributions to the
Certificateholders, other than the holders of the Class G Certificates, shall be
subordinated to the creditors of the Trust, including the Noteholders.

          (d) Allocations of profits, income and losses, as determined for
federal income tax purposes, shall be made within each Class of Certificates to
the Certificateholders on a pro rata basis based on the Certificate Percentage
Interests thereof.

          (e) For federal income tax purposes, distributions and allocations
shall be deemed made to the interests in each REMIC created under the Indenture
as provided in the Indenture.

          Section 5.02 Method of Payment. Subject to Section 8.01(c),
distributions required to be made to the Certificateholders on any Payment Date
as provided in Section 5.01 shall be made to the Certificateholders of record on
the preceding Record Date by wire transfer, in immediately available funds, to
the account of each Certificateholder at a bank or other entity having
appropriate facilities therefor, if such Certificateholders shall have provided
to the Certificate Registrar appropriate written instructions at least five
Business Days prior to such Payment Date or, if not, by check mailed to such
Certificateholder at the address of such Certificateholder appearing in the
Certificate Register.

                                      -21-
<PAGE>

          Section 5.03 Additional Balances and Excluded Amounts. With respect to
each Payment Date, subject to Section 3.03 of the Countrywide Servicing
Agreement, the Master Servicer shall notify the Holder of the Class G
Certificate of the total amount of all Additional Balance Advance Amounts and
Excluded Amounts that are to be funded, and the Holder of the Class G
Certificate will be required to submit to the Master Servicer an amount equal to
the total amount of all Additional Balance Advance Amounts and Excluded Amounts
no later than one (1) Business Day prior to such Payment Date. The Master
Servicer will then use such amounts to purchase, or reimburse Countrywide for
HELOC Draw Advances in respect of, Additional Balance Advance Amounts and
Excluded Amounts.

          Section 5.04 Signature on Returns. The REMIC Administrator, as agent
for the Owner Trustee, shall sign on behalf of the Trust the tax or information
returns of each REMIC or grantor trust created under the Indenture. The Owner
Trustee shall give the REMIC Administrator all such powers of attorney as are
needed to enable the REMIC Administrator to prepare and sign such tax or
information returns. In order to enable the Securities Administrator and REMIC
Administrator to perform their duties as set forth in the Indenture, the
Depositor shall provide, or cause to be provided, to the Securities
Administrator and REMIC Administrator within 10 days after the Closing Date all
information or data that the Securities Administrator and REMIC Administrator
request in writing and determine to be relevant for tax purposes to the
valuations and offering prices of the Securities, including, without limitation,
the price, yield, prepayment assumption and projected cash flows of the
Securities and the Mortgage Loans. Thereafter, the Depositor shall provide to
the Securities Administrator and REMIC Administrator promptly upon written
request therefor, any such additional information or data that the Securities
Administrator and REMIC Administrator may, from time to time, request in order
to enable the Securities Administrator and REMIC Administrator to perform their
duties as set forth in the Indenture. The Depositor hereby agrees to indemnify
the Securities Administrator and REMIC Administrator for any losses,
liabilities, damages, claims or expenses of the Securities Administrator and
REMIC Administrator arising from any errors or miscalculations of the Securities
Administrator and REMIC Administrator that result from any failure of the
Depositor to provide, or to cause to be provided, accurate information or data
to the Securities Administrator and REMIC Administrator on a timely basis.

          Section 5.05 Statements to Certificateholders. On each Payment Date,
the Certificate Paying Agent shall make available on its website the statement
or statements provided to the Owner Trustee and the Certificate Paying Agent by
the Securities Administrator.

                                   ARTICLE VI

                          CONCERNING THE OWNER TRUSTEE

          Section 6.01 Acceptance of Trusts and Duties. The Owner Trustee
accepts the trusts hereby created and agrees to perform its duties hereunder
with respect to such trusts but only upon the terms of this Trust Agreement. The
Owner Trustee and the Certificate Paying Agent also agree to disburse all moneys
actually received by it constituting part of the Owner Trust Estate upon the
terms of the Operative Documents, including this Trust Agreement. The Owner
Trustee shall not be answerable or accountable hereunder or under any other
Operative Document under any circumstances, except (i) for its own willful
misconduct, gross negligence

                                      -22-

<PAGE>

or bad faith or (ii) in the case of the inaccuracy of any representation or
warranty contained in Section 6.03 expressly made by the Owner Trustee. In
particular, but not by way of limitation (and subject to the exceptions set
forth in the preceding sentence):

          (a) No provision of this Trust Agreement or any other Operative
Document shall require the Owner Trustee to expend or risk funds or otherwise
incur any financial liability in the performance of any of its rights, duties or
powers hereunder or under any other Operative Document if the Owner Trustee
shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured or
provided to it;

          (b) Under no circumstances shall the Owner Trustee be liable for
indebtedness evidenced by or arising under any of the Operative Documents,
including the principal of and interest on the Notes;

          (c) The Owner Trustee shall not be responsible for or in respect of
the validity or sufficiency of this Trust Agreement or for the due execution
hereof by the Depositor or for the form, character, genuineness, sufficiency,
value or validity of any of the Owner Trust Estate, or for or in respect of the
validity or sufficiency of the Operative Documents, the Notes or the
Certificates, other than the certificate of authentication on the Certificates,
if executed by the Owner Trustee, and the Owner Trustee shall in no event assume
or incur any liability, duty, or obligation to any Noteholder or to any
Certificateholder, other than as expressly provided for herein or expressly
agreed to in the Operative Documents;

          (d) The execution, delivery, authentication and performance by it of
this Trust Agreement will not require the authorization, consent or approval of,
the giving of notice to, the filing or registration with, or the taking of any
other action with respect to, any governmental authority or agency;

          (e) The Owner Trustee shall not be liable for the default or
misconduct of the Depositor, Securities Administrator, Indenture Trustee, the
Master Servicer or the Servicers under any of the Operative Documents or
otherwise and the Owner Trustee shall have no obligation or liability to perform
the obligations of the Trust under this Trust Agreement or the Operative
Documents that are required to be performed by the Indenture Trustee or the
Securities Administrator under the Indenture, the Master Servicer under the
Servicing Agreement or the Seller or the Administrator under the Administration
Agreement; and

          (f) The Owner Trustee shall be under no obligation to exercise any of
the rights or powers vested in it or duties imposed by this Trust Agreement, or
to institute, conduct or defend any litigation under this Trust Agreement or
otherwise or in relation to this Trust Agreement or any other Operative
Document, at the request, order or direction of the Certificateholders, unless
the Certificateholders have offered to the Owner Trustee security or indemnity
satisfactory to it against the costs, expenses and liabilities that may be
incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee
to perform any discretionary act enumerated in this Trust Agreement or in any
other Operative Document shall not be construed as a duty, and the Owner Trustee
shall not be answerable for other than its gross negligence, bad faith or
willful misconduct in the performance of any such act.

                                      -23-

<PAGE>

          Section 6.02 Furnishing of Documents. The Owner Trustee shall furnish
to the Securityholders promptly upon receipt of a written reasonable request
therefor, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Trust under the Operative Documents.

          Section 6.03 Representations and Warranties. The Owner Trustee hereby
represents and warrants to the Depositor, for the benefit of the
Certificateholders, that:

          (a) It is a banking corporation duly organized and validly existing in
good standing under the laws of the State of Delaware. It has all requisite
corporate power and authority to execute, deliver and perform its obligations
under this Trust Agreement;

          (b) It has taken all corporate action necessary to authorize the
execution and delivery by it of this Trust Agreement, and this Trust Agreement
will be executed and delivered by one of its officers who is duly authorized to
execute and deliver this Trust Agreement on its behalf;

          (c) Neither the execution nor the delivery by it of this Trust
Agreement, nor the consummation by it of the transactions contemplated hereby
nor compliance by it with any of the terms or provisions hereof will contravene
any federal or Delaware law, governmental rule or regulation governing the
banking or trust powers of the Owner Trustee or any judgment or order binding on
it, or constitute any default under its charter documents or bylaws or any
indenture, mortgage, contract, agreement or instrument to which it is a party or
by which any of its properties may be bound;

          (d) This Trust Agreement, assuming due authorization, execution and
delivery by the Depositor, constitutes a valid, legal and binding obligation of
the Owner Trustee, enforceable against it in accordance with the terms hereof
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
other laws affecting the enforcement of creditors' rights generally and to
general principles of equity, regardless of whether such enforcement is
considered in a proceeding in equity or at law;

          (e) The Owner Trustee is not in default with respect to any order or
decree of any court or any order, regulation or demand of any federal, state,
municipal or governmental agency, which default might have consequences that
would materially and adversely affect the condition (financial or other) or
operations of the Owner Trustee or its properties or might have consequences
that would materially adversely affect its performance hereunder; and

          (f) No litigation is pending or, to the best of the Owner Trustee's
knowledge, threatened against the Owner Trustee which would prohibit its
entering into this Trust Agreement or performing its obligations under this
Trust Agreement.

          Section 6.04 Reliance; Advice of Counsel.

          (a) The Owner Trustee shall incur no liability to anyone in acting
upon any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond, or other document or paper believed by it to
be genuine and believed by it to be signed by the proper party or parties. The
Owner Trustee may accept a certified copy of a resolution of the

                                      -24-

<PAGE>

board of directors or other governing body of any corporate party as conclusive
evidence that such resolution has been duly adopted by such body and that the
same is in full force and effect. As to any fact or matter the method of
determination of which is not specifically prescribed herein, the Owner Trustee
may for all purposes hereof rely on a certificate, signed by the president or
any vice president or by the treasurer or other authorized officers of the
relevant party, as to such fact or matter and such certificate shall constitute
full protection to the Owner Trustee for any action taken or omitted to be taken
by it in good faith in reliance thereon.

          (b) In the exercise or administration of the Trust hereunder and in
the performance of its duties and obligations under this Trust Agreement or the
other Operative Documents, the Owner Trustee (i) may act directly or through its
agents, attorneys, custodians or nominees (including persons acting under a
power of attorney) pursuant to agreements entered into with any of them, and the
Owner Trustee shall not be liable for the conduct or misconduct of such agents,
attorneys, custodians or nominees (including persons acting under a power of
attorney) if such persons have been selected by the Owner Trustee with
reasonable care, and (ii) may consult with counsel, accountants and other
skilled persons to be selected with reasonable care and employed by it at the
expense of the Seller. The Owner Trustee shall not be liable for anything done,
suffered or omitted in good faith by it in accordance with the opinion or advice
of any such counsel, accountants or other such Persons.

          Section 6.05 Not Acting in Individual Capacity. Except as provided in
this Article VI, in accepting the trusts hereby created, Wilmington Trust
Company acts solely as Owner Trustee hereunder and not in its individual
capacity, and all Persons having any claim against the Owner Trustee by reason
of the transactions contemplated by this Trust Agreement or any other Operative
Document shall look only to the Owner Trust Estate for payment or satisfaction
thereof.

          Section 6.06 Owner Trustee Not Liable for Certificates or Related
Documents. The recitals contained herein and in the Certificates (other than the
signatures of the Owner Trustee on the Certificates) shall not be taken as the
statements of the Owner Trustee, and the Owner Trustee assumes no responsibility
for the correctness thereof. The Owner Trustee makes no representations as to
the validity or sufficiency of this Trust Agreement, of any other Operative
Document or of the Certificates (other than the signatures of the Owner Trustee
on the Certificates) or the Notes. The Owner Trustee shall at no time have any
responsibility or liability with respect to the sufficiency of the Owner Trust
Estate or its ability to generate the payments to be distributed to the
Certificateholders under this Trust Agreement or the Noteholders under the
Indenture, including, the compliance by the Depositor or the Seller with any
warranty or representation made under any Operative Document or in any related
document or the accuracy of any such warranty or representation, or any action
of the Certificate Paying Agent, the Certificate Registrar, the Securities
Administrator or the Indenture Trustee taken in the name of the Owner Trustee.

          Section 6.07 Owner Trustee May Own the Certificates and the Notes. The
Owner Trustee in its individual or any other capacity may become the owner or
pledgee of the Certificates or the Notes and may deal with the Depositor, the
Seller, the Certificate Paying Agent, the Certificate Registrar, the Securities
Administrator and the Indenture Trustee in transactions with the same rights as
it would have if it were not Owner Trustee.

                                      -25-

<PAGE>

                                   ARTICLE VII

                          COMPENSATION OF OWNER TRUSTEE

          Section 7.01 Owner Trustee's Fees and Expenses. The Owner Trustee
shall receive as compensation for its services hereunder such fees as have been
separately agreed upon before the date hereof (the "Owner Trustee Fee") from the
Seller, and the Owner Trustee shall be reimbursed for its reasonable expenses
hereunder and under the other Operative Documents, including the reasonable
compensation, expenses and disbursements of such agents, representatives,
experts and counsel as the Owner Trustee may reasonably employ in connection
with the exercise and performance of its rights and its duties hereunder and
under the other Operative Documents, which shall be payable by the Seller.

          Section 7.02 Indemnification. The Seller, the Depositor and the Trust
(on a joint and several basis) shall indemnify, defend and hold harmless the
Owner Trustee, both as Owner Trustee and in its individual capacity, and its
successors, assigns, agents and servants (collectively, the "Indemnified
Parties") from and against, any and all liabilities, obligations, losses,
damages, taxes, claims, actions and suits, and any and all reasonable costs,
expenses and disbursements (including reasonable legal fees and expenses) of any
kind and nature whatsoever (collectively, "Expenses") that may at any time be
imposed on, incurred by, or asserted against the Owner Trustee or any
Indemnified Party in any way relating to or arising out of this Trust Agreement,
the Operative Documents, the Owner Trust Estate, the administration of the Owner
Trust Estate or the action or inaction of the Owner Trustee hereunder, provided,
that such indemnity constitutes an "unanticipated expense" within the meaning of
Treasury Regulation 1.860G-1(b)(3)(ii) and that:

               (i) the Seller, the Depositor and the Trust shall not be liable
for or required to indemnify an Indemnified Party from and against Expenses
arising or resulting from the Owner Trustee's willful misconduct, gross
negligence or bad faith or as a result of any inaccuracy of a representation or
warranty contained in Section 6.03 expressly made by the Owner Trustee;

               (ii) with respect to any such claim, the Indemnified Party shall
have given the Seller, the Depositor and the Trust written notice thereof
promptly after the Indemnified Party shall have actual knowledge thereof;

               (iii) while maintaining control over its own defense, the Seller
shall consult with the Indemnified Party in preparing such defense; and

               (iv) notwithstanding anything in this Trust Agreement to the
contrary, the Seller, the Depositor and the Trust shall not be liable for
settlement of any claim by an Indemnified Party entered into without the prior
consent of the Seller, the Depositor or the Trust, as applicable, which consent
shall not be unreasonably withheld.

          The indemnities contained in this Section shall survive the
resignation or removal of the Owner Trustee or the termination of this Trust
Agreement. In the event of any claim, action or proceeding for which indemnity
will be sought pursuant to this Section 7.02, the Owner

                                      -26-

<PAGE>

Trustee's choice of legal counsel, if other than the legal counsel retained by
the Owner Trustee in connection with the execution and delivery of this Trust
Agreement, shall be subject to the approval of the Seller, which approval shall
not be unreasonably withheld. In addition, upon written notice to the Owner
Trustee and with the consent of the Owner Trustee which consent shall not be
unreasonably withheld, the Seller has the right to assume the defense of any
claim, action or proceeding against the Owner Trustee.

          Section 7.03 Payments to the Owner Trustee. The Owner Trustee shall
have a lien on the Owner Trust Estate for amounts owing hereunder. Any amounts
paid to the Owner Trustee pursuant to this Article VII shall be deemed not to be
a part of the Owner Trust Estate immediately after such payment.

                                  ARTICLE VIII

                         TERMINATION OF TRUST AGREEMENT

          Section 8.01 Termination of Trust Agreement.

          (a) The Trust shall dissolve upon the earlier of (i) the final
distribution of all moneys or other property or proceeds of the Owner Trust
Estate in accordance with the terms of the Indenture and this Trust Agreement or
(ii) the Final Maturity Date. The bankruptcy, liquidation, dissolution, death or
incapacity of a Certificateholder shall not (x) operate to terminate this Trust
Agreement or the Trust or (y) entitle such Certificateholder's legal
representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of all or any part of the
Trust or the Owner Trust Estate or (z) otherwise affect the rights, obligations
and liabilities of the parties hereto.

          (b) Neither the Depositor nor any Certificateholder shall be entitled
to revoke or terminate the Trust.

          (c) Notice of any dissolution of the Trust, specifying the Payment
Date upon which the Certificateholders shall surrender its Certificate to the
Certificate Paying Agent for payment of the final distribution and cancellation,
shall be given by the Certificate Paying Agent by letter to the
Certificateholders mailed within five Business Days of receipt of notice of such
dissolution from the Owner Trustee, stating (i) the Payment Date upon or with
respect to which final payment of the Certificates shall be made upon
presentation and surrender of the Certificates at the office of the Certificate
Paying Agent therein designated, (ii) the amount of any such final payment and
(iii) that the Record Date otherwise applicable to such Payment Date is not
applicable, payments being made only upon presentation and surrender of the
Certificates at the office of the Certificate Payment Agent therein specified.
The Certificate Paying Agent shall give such notice to the Owner Trustee and the
Certificate Registrar at the time such notice is given to the
Certificateholders. Upon presentation and surrender of the Certificates, the
Certificate Paying Agent shall cause to be distributed to the Certificateholders
amounts distributable on such Payment Date pursuant to Section 5.01.

          In the event that a Certificateholder shall not surrender its
Certificate for cancellation within six months after the date specified in the
above mentioned written notice, the

                                      -27-

<PAGE>

Certificate Paying Agent shall give a second written notice to such
Certificateholder to surrender the Certificate for cancellation and receive the
final distribution with respect thereto. Subject to applicable laws with respect
to escheat of funds, if within one year following the Payment Date on which
final payment of such Certificate was to have been made pursuant to Section
5.01, such Certificate shall not have been surrendered for cancellation, the
Certificate Paying Agent may take appropriate steps, or may appoint an agent to
take appropriate steps, to contact the remaining Certificateholders concerning
surrender of such Certificate, and the cost thereof shall be paid out of the
funds and other assets that shall remain subject to this Trust Agreement. Any
funds remaining in the Certificate Distribution Account after exhaustion of such
remedies shall be distributed by the Certificate Paying Agent to the Class R
Certificateholder.

          (d) Upon the completion of the winding up of the Trust and
notification to the Owner Trustee from the Servicer, who shall be responsible
for liquidating the Trust, as to the satisfaction of the obligations of the
Trust, the Owner Trustee shall cause the Certificates of Trust to be canceled by
filing a certificate of cancellation with the Secretary of State in accordance
with the provisions of Section 3810(c) of the Statutory Trust Statute, upon
which filing the Trust shall terminate.

          Section 8.02 Additional Termination Requirements.

          (a) Each REMIC created under the Indenture shall be terminated in
accordance with the additional requirements set forth in the Indenture.

          (b) Each Holder of a Security and the Owner Trustee hereby irrevocably
approves and appoints the Securities Administrator as its attorney-in-fact to
adopt a plan of complete liquidation prepared by the Depositor for each REMIC in
accordance with the terms and conditions of this Agreement and the Indenture.

                                   ARTICLE IX

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

          Section 9.01 Eligibility Requirements for Owner Trustee. The Owner
Trustee shall at all times be a corporation satisfying the provisions of Section
3807(a) of the Statutory Trust Statute; authorized to exercise corporate trust
powers; having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by federal or state authorities; and
having (or having a parent that has) long term debt obligations with a rating of
at least A (or the equivalent) by Standard & Poor's, Fitch and/or Moody's. If
such corporation shall publish reports of condition at least annually pursuant
to law or to the requirements of the aforesaid supervising or examining
authority, then for the purpose of this Section, the combined capital and
surplus of such corporation 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 Owner Trustee shall cease to be eligible in accordance with
the provisions of this Section 9.01, the Owner Trustee shall resign immediately
in the manner and with the effect specified in Section 9.02.

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<PAGE>

          Section 9.02 Replacement of Owner Trustee. The Owner Trustee may at
any time resign and be discharged from the trusts hereby created by giving 30
days prior written notice thereof to the Depositor and the Securities
Administrator. Upon receiving such notice of resignation, the Securities
Administrator shall promptly appoint a successor Owner Trustee, by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
resigning Owner Trustee and to the successor Owner Trustee. If no successor
Owner Trustee shall have been so appointed and have accepted appointment within
30 days after the giving of such notice of resignation, the resigning Owner
Trustee or any Certificateholder may petition any court of competent
jurisdiction for the appointment of a successor Owner Trustee.

          If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 9.01 and shall fail to resign after
written request therefor by the Securities Administrator, or if at any time the
Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Depositor shall remove the Owner Trustee.
If the Depositor shall remove the Owner Trustee under the authority of the
immediately preceding sentence, the Depositor shall promptly appoint a successor
Owner Trustee by written instrument, in duplicate, one copy of which instrument
shall be delivered to the outgoing Owner Trustee so removed and one copy to the
successor Owner Trustee, and shall pay all fees owed to the outgoing Owner
Trustee.

          Any resignation or removal of the Owner Trustee and appointment of a
successor Owner Trustee pursuant to any of the provisions of this Section shall
not become effective until acceptance of appointment by the successor Owner
Trustee pursuant to Section 9.03 and payment of all fees and expenses owed to
the outgoing Owner Trustee.

          Section 9.03 Successor Owner Trustee. Any successor Owner Trustee
appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the
Depositor and to its predecessor Owner Trustee an instrument accepting such
appointment under this Trust Agreement, and thereupon the resignation or removal
of the predecessor Owner Trustee shall become effective, and such successor
Owner Trustee, without any further act, deed or conveyance, shall become fully
vested with all the rights, powers, duties and obligations of its predecessor
under this Trust Agreement, with like effect as if originally named as Owner
Trustee. The predecessor Owner Trustee shall deliver to the successor Owner
Trustee all documents and statements and monies held by it under this Trust
Agreement; and the predecessor Owner Trustee shall execute and deliver such
instruments and do such other things as may reasonably be required for fully and
certainly vesting and confirming in the successor Owner Trustee all such rights,
powers, duties and obligations.

          No successor Owner Trustee shall accept appointment as provided in
this Section 9.03 unless at the time of such acceptance such successor Owner
Trustee shall be eligible pursuant to Section 9.01.

          Upon acceptance of appointment by a successor Owner Trustee pursuant
to this Section 9.03, the successor Owner Trustee shall mail notice thereof to
all Certificateholders, the Securities Administrator, the Noteholders and the
Rating Agencies.

                                      -29-

<PAGE>

          Section 9.04 Merger or Consolidation of Owner Trustee. Any Person into
which the Owner Trustee may be merged or converted or with which it may be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Owner Trustee shall be a party, or any Person
succeeding to all or substantially all of the corporate trust business of the
Owner Trustee, shall be the successor of the Owner Trustee hereunder, without
the execution or filing of any instrument or any further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding;
provided, that such Person shall be eligible pursuant to Section 9.01 and,
provided, further, that the Owner Trustee shall mail notice of such merger or
consolidation to the Rating Agencies.

          Section 9.05 Appointment of Co-Trustee or Separate Trustee.
Notwithstanding any other provisions of this Trust Agreement, at any time, for
the purpose of meeting any legal requirements of any jurisdiction in which any
part of the Owner Trust Estate may at the time be located, the Owner Trustee
shall have the power and shall execute and deliver all instruments to appoint
one or more Persons to act as co-trustee, jointly with the Owner Trustee, or as
separate trustee or trustees, of all or any part of the Owner Trust Estate, and
to vest in such Person, in such capacity, such title to the Owner Trust Estate
or any part thereof and, subject to the other provisions of this Section, such
powers, duties, obligations, rights and trusts as the Owner Trustee may consider
necessary or desirable. No co-trustee or separate trustee under this Trust
Agreement shall be required to meet the terms of eligibility as a successor
Owner Trustee pursuant to Section 9.01 and no notice of the appointment of any
co-trustee or separate trustee shall be required pursuant to Section 9.03.

          Each separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

          (a) All rights, powers, duties and obligations conferred or imposed
upon the Owner Trustee shall be conferred upon and exercised or performed by the
Owner 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 Owner 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, the Owner 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 Owner Trust Estate 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 Owner Trustee;

          (b) No trustee under this Trust Agreement shall be personally liable
by reason of any act or omission of any other trustee under this Trust
Agreement; and

          (c) The Owner 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 Owner 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 Trust
Agreement and the conditions of this Article. Each separate trustee and
co-trustee, upon its

                                      -30-

<PAGE>

acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Trust Agreement, specifically including every provision of this Trust
Agreement relating to the conduct of, affecting the liability of, or affording
protection to, the Owner Trustee. Each such instrument shall be filed with the
Owner Trustee.

          Any separate trustee or co-trustee may at any time appoint the Owner
Trustee as 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
Trust 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 Owner Trustee, to the extent permitted by law, without the
appointment of a new or successor co-trustee or separate trustee.

                                    ARTICLE X

                                  MISCELLANEOUS

          Section 10.01 Amendments.

          (a) This Trust Agreement may be amended from time to time by the
parties hereto as specified in this Section 10.01, provided that any amendment,
except as provided in subparagraph (e) below, be accompanied by an Opinion of
Counsel, to the Owner Trustee to the effect that such amendment (i) complies
with the provisions of this Section and (ii) will not cause the Trust or any
REMIC created under the Indenture to be subject to an entity level tax or cause
any REMIC created under the Indenture to fail to qualify as a REMIC for federal
income tax purposes.

          (b) If the purpose of the amendment (as detailed therein) is to
correct any mistake, eliminate any inconsistency, cure any ambiguity or deal
with any matter not covered (i.e. to give effect to the intent of the parties),
it shall not be necessary to obtain the consent of the Certificateholders, but
the Owner Trustee shall be furnished with (A) a letter from the Rating Agencies
that the amendment will not result in the downgrading or withdrawal of the
rating then assigned to any of the Notes and (B) an Opinion of Counsel to the
effect that such action will not adversely affect in any material respect the
interests of any Certificateholder shall be obtained.

          (c) If the purpose of the amendment is to prevent the imposition of
any federal or state taxes at any time that any Security is outstanding (i.e.
technical in nature), it shall not be necessary to obtain the consent of any
Securityholder, but the Owner Trustee shall be furnished with an Opinion of
Counsel that such amendment is necessary or helpful to prevent the imposition of
such taxes and is not materially adverse to any Securityholder. If the purpose
of the amendment is to preserve the status of any REMIC created under the
Indenture as a REMIC or to avoid any tax upon any such REMIC, it shall not be
necessary to obtain the consent of any Securityholder, but the Owner Trustee
shall be furnished with an Opinion of Counsel that such amendment is necessary
or helpful to preserve such status or avoid such tax.

                                      -31-
<PAGE>

          (d) If the purpose of the amendment is to add or eliminate or change
any provision of the Trust Agreement other than as contemplated in (b) and (c)
above, the amendment shall require (A) an Opinion of Counsel to the effect that
such action will not adversely affect in any material respect the interests of
any Securityholder and (B) either (a) a letter from the Rating Agencies that the
amendment will not result in the downgrading or withdrawal of the rating then
assigned to any of the Notes or (b) the consent of the Certificateholders and
the Securities Administrator; provided, however, that no such amendment shall
reduce in any manner the amount of, or delay the timing of, payments received
that are required to be distributed on the Certificates without the consent of
the Certificateholders.

          (e) If the purpose of the amendment is to provide for the holding of
the Certificates in book-entry form, it shall require the consent of the
Certificateholders; provided, that the Opinion of Counsel specified in
subparagraph (a) above shall not be required.

          (f) If the purpose of the amendment is to provide for the issuance of
additional certificates representing an interest in the Trust, it shall not be
necessary to obtain the consent of any Securityholder, but the Owner Trustee
shall be furnished with (A) an Opinion of Counsel to the effect that such action
will not adversely affect in any material respect the interests of any
Securityholder and (B) a letter from the Rating Agencies that the amendment will
not result in the downgrading or withdrawal of the rating then assigned to of
the Notes.

          (g) Promptly after the execution of any such amendment or consent, the
Owner Trustee shall furnish written notification of the substance of such
amendment or consent to the Certificateholders, the Securities Administrator and
each of the Rating Agencies. It shall not be necessary for the consent of the
Certificateholders or the Securities Administrator pursuant to this Section
10.01 to approve the particular form of any proposed amendment or consent, but
it shall be sufficient if such consent shall approve the substance thereof. The
manner of obtaining such consents (and any other consent of the
Certificateholders provided for in this Trust Agreement or in any other
Operative Document) and of evidencing the authorization of the execution thereof
by the Certificateholders shall be subject to such reasonable requirements as
the Owner Trustee may prescribe.

          (h) In connection with the execution of any amendment to any agreement
to which the Trust is a party, other than this Trust Agreement, the Owner
Trustee shall be entitled to receive and conclusively rely upon an Opinion of
Counsel to the effect that such amendment is authorized or permitted by the
documents subject to such amendment and that all conditions precedent in the
Operative Documents for the execution and delivery thereof by the Trust or the
Owner Trustee, as the case may be, have been satisfied.

          Promptly after the execution of any amendment to the Certificate of
Trust, the Owner Trustee shall cause the filing of such amendment with the
Secretary of State of the State of Delaware.

          Section 10.02 No Legal Title to Owner Trust Estate. The
Certificateholders shall not have legal title to any part of the Owner Trust
Estate. The Certificateholders shall be entitled to receive distributions with
respect to their undivided beneficial interest therein only in accordance with
Articles V and VIII. No transfer, by operation of law or otherwise, of any
right,

                                      -32-

<PAGE>

title or interest of the Certificateholders to and in their beneficial interest
in the Owner Trust Estate shall operate to terminate this Trust Agreement or the
trusts hereunder or entitle any transferee to an accounting or to the transfer
to it of legal title to any part of the Owner Trust Estate.

          Section 10.03 Limitations on Rights of Others. The provisions of this
Trust Agreement are solely for the benefit of the Owner Trustee, the Depositor,
the Certificateholders, and, to the extent expressly provided herein, the
Seller, the Indenture Trustee, the Securities Administrator and the Noteholders,
and nothing in this Trust Agreement, whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Trust Agreement
or any covenants, conditions or provisions contained herein.

          Section 10.04 Notices.

          (a) Unless otherwise expressly specified or permitted by the terms
hereof, all notices shall be in writing and shall be deemed given upon receipt,
if to the Owner Trustee, addressed to Wilmington Trust Company, 1100 North
Market Street, Wilmington, Delaware 19890, with a copy to Citibank, N.A. 388
Greenwich Street, 14th Floor, New York, NY 10013, Attention: Agency and Trust -
MLMI Trust 2006-SL2; if to the Securities Administrator or the Certificate
Registrar, addressed to, LaSalle Bank National Association, 135 South LaSalle
Street, Suite 1625, Chicago, Illinois 60603, Attention: Merrill Lynch Mortgage
Investors Trust 2006-SL2, if to the Depositor, addressed to Merrill Lynch
Mortgage Investors, Inc. 250 Vesey Street, 4 World Financial Center, 10th Floor,
New York, New York 10013; if to the Rating Agencies, addressed to Moody's
Investors Service, Inc., 99 Church Street, 4th Floor, New York, New York 10007,
to Fitch, Inc., One State Street Plaza, 30th Floor, New York, New York 10004,
Attention: Surveillance Group and to Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., 55 Water Street, New York, NY 10041; or, as to each
party, at such other address as shall be designated by such party in a written
notice to each other party.

          (b) Any notice required or permitted to be given to a
Certificateholder shall be given by first-class mail, postage prepaid, at the
address of such Certificateholder as shown in the Certificate Register. Any
notice so mailed within the time prescribed in this Trust Agreement shall be
conclusively presumed to have been duly given, whether or not such
Certificateholder receives such notice.

          (c) A copy of any notice delivered to the Owner Trustee or the Trust
shall also be delivered to the Depositor.

          Section 10.05 Severability. Any provision of this Trust Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

          Section 10.06 Separate Counterparts. This Trust Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall

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<PAGE>

be an original, but all such counterparts shall together constitute but one and
the same instrument.

          Section 10.07 Successors and Assigns. All representations,
warranties, covenants and agreements contained herein shall be binding upon, and
inure to the benefit of, each of the Depositor, the Owner Trustee and its
successors and the Certificateholders and their respective successors and
permitted assigns, all as herein provided. Any request, notice, direction,
consent, waiver or other instrument or action by a Certificateholder shall bind
the successors and assigns of such Certificateholder.

          Section 10.08 No Petition. The Owner Trustee, by entering into this
Trust Agreement and each Certificateholder, by accepting a Certificate, hereby
covenants and agrees that they will not, prior to the day that is one year and
one day after the date this Trust Agreement terminates, institute against the
Depositor or the Trust, or join in any institution against the Depositor or the
Trust of, any bankruptcy proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations under the
Certificates, the Notes, this Trust Agreement or any of the other Operative
Documents.

          Section 10.09 No Recourse. Each Certificateholder by accepting a
Certificate acknowledges that the Certificates represent beneficial interests in
the Trust only and do not represent interests in or obligations of the
Depositor, the Seller, the Owner Trustee, the Securities Administrator, the
Indenture Trustee or any Affiliate thereof and no recourse may be had against
such parties or their assets, except as may be expressly set forth or
contemplated in this Trust Agreement, the Certificates or the other Operative
Documents.

          Section 10.10 Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

          Section 10.11 GOVERNING LAW. THIS TRUST AGREEMENT SHALL BE CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

          Section 10.12 Integration. This Trust Agreement constitutes the
entire agreement among the parties hereto pertaining to the subject matter
hereof and supersedes all prior agreements and understanding pertaining thereto.

          Section 10.13 Intention of the Parties. (a) It is the express intent
of the parties hereto that the conveyance by the Depositor to the Trust pursuant
to this Trust Agreement of the Owner Trust Estate be, and be construed as, an
absolute sale and assignment by the Depositor to the Trust. Further, it is not
intended that the conveyance be deemed to be the grant of a security interest in
the Mortgage Loans by the Depositor to the Trust to secure a debt or other
obligation. However, in the event that the Mortgage Loans are held to be
property of the Depositor, or if for any reason this Trust Agreement is held or
deemed to create a security interest in the Mortgage Loans, then (i) this Trust
Agreement shall be a security agreement within the meaning of Article

                                      -34-

<PAGE>

9 of the UCC; (ii) the conveyances provided for in Section 3.01 shall be deemed
to be a grant by the Depositor to the Trust of, and the Depositor hereby grants
to the Trust, a security interest in all of the Depositor's right, title and
interest, whether now owned or hereafter acquired, in and to (A) the Owner Trust
Estate; (B) all accounts, chattel paper, deposit accounts, documents, general
intangibles, goods, instruments, investment property, letter-of-credit rights,
letters of credit, money, and oil, gas, and other minerals, consisting of,
arising from, or relating to, any of the foregoing; and (C) all proceeds of any
of the foregoing; (iii) the possession or control by the Trust or any other
agent of the Trust of any of the foregoing property shall be deemed to be
possession or control by the secured party, or possession or control by a
purchaser, for purposes of perfecting the security interest pursuant to the UCC
(including, without limitation, Sections 9-104, 9-106, 9-313 or 9-314 thereof);
and (iv) 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, securities
intermediaries, bailees or agents of, or persons holding for, the Trust, as
applicable, for the purpose of perfecting such security interest under
applicable law.

          (b) The parties hereto, shall, to the extent consistent with this
Trust Agreement, take such reasonable actions as may be necessary to ensure
that, if this Trust Agreement were deemed to create a security interest in the
Mortgage Loans, such security interest would be deemed to be a perfected
security interest of first priority.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -35-

<PAGE>

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

                                        MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                        as Depositor

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

                                        WILMINGTON TRUST COMPANY,
                                        as Owner Trustee

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

Acknowledged and Agreed:

LaSALLE BANK NATIONAL ASSOCIATION,
as Certificate Registrar, REMIC
Administrator, Certificate Paying
Agent and Securities Administrator

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

MERRILL LYNCH MORTGAGE LENDING, INC.,
as Seller

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

                                      -36-

<PAGE>

                                    EXHIBIT A

                          FORM OF CLASS C CERTIFICATES

          SOLELY FOR FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE REPRESENTS AN
INTEREST IN A GRANTOR TRUST THAT HOLDS ONE OR MORE "REGULAR INTERESTS" IN A
"REAL ESTATE MORTGAGE INVESTMENT CONDUIT," AS THOSE TERMS ARE DEFINED,
RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE") AND IS TREATED AS HAVING ENTERED INTO CERTAIN NOTIONAL
PRINCIPAL CONTRACTS.

          THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN
THE SPONSOR, THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR,
THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE CUSTODIANS
REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS CERTIFICATE, THE
REMIC REGULAR INTERESTS REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE
GUARANTEED OR INSURED BY THE SPONSOR, THE DEPOSITOR, THE MASTER SERVICER, THE
SECURITIES ADMINISTRATOR, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE
SERVICERS OR THE CUSTODIANS OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL
AGENCY OR INSTRUMENTALITY.

THIS CLASS C-[_] CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF
1940, AS AMENDED (THE "1940 ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS,
AND MAY NOT, DIRECTLY OR INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR
OFFERED FOR SALE, UNLESS SUCH TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE
ACT, THE 1940 ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER
ALSO COMPLIES WITH THE OTHER PROVISIONS OF SECTION 3.05 OF THE TRUST AGREEMENT.
NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE SECURITIES
ADMINISTRATOR SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE
SECURITIES ADMINISTRATOR (A) AN INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR;
AND (B) REPRESENTATIONS FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF
THE CERTIFICATES.

          THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE ONLY (A) TO A PERSON IT
REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A
UNDER THE ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A OR (B) TO AN INSTITUTIONAL ACCREDITED INVESTOR AS
DEFINED

<PAGE>

IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D, AND IN EACH CASE IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SUBJECT
TO THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE
DELIVERY OF A CERTIFICATE OF TRANSFER IN THE FORM APPEARING IN THE TRUST
AGREEMENT.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE SECURITIES ADMINISTRATOR WITH A REPRESENTATION THAT SUCH
TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN SUBJECT TO
SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO STATE, LOCAL, FEDERAL, NON-U.S. OR
OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE
CODE, AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE BY, ON BEHALF
OF, OR WITH ANY ASSETS OF ANY SUCH PLAN.

                            CLASS C-[_] CERTIFICATE

Number: 06-SL2-C-[_]                       Percentage Interest:
                                           100%

Cut-off Date: July 1, 2006

First Distribution Date: August 25, 2006   Aggregate Percentage Interest of all
                                           Class C-[_] Certificates:
                                           100%

Pass-Through Rate: Variable                CUSIP: [________]

<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

          evidencing an ownership interest in distributions allocable to the
Class C-[_] Certificates with respect to a pool of conventional, sub-prime
mortgage loans and home equity revolving lines of credit formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

          This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
is the registered owner of the ownership interest (the "Ownership Interest")
evidenced by this Certificate (obtained by dividing the Percentage Interest of
this Certificate by the aggregate Percentage Interest of all Class C-[_]
Certificates) in certain distributions with respect to a pool of conventional,
sub-prime mortgage loans and home equity revolving lines of credit (the
"Mortgage Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Securityholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by Wilshire Credit Corporation and Countrywide Home
Loans Servicing LP (the "Servicers") and are secured by second liens on
Mortgaged Properties. The Trust Fund was created pursuant to a trust agreement
(the "Agreement"), dated as of January 1, 2006, between the Depositor and
Wilmington Trust Company (the "Owner Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

          This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, Class C-[_] (the "Class C-[_] Certificates")
and is issued under and is subject to the terms, provisions and conditions of
the Agreement, to which Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which Agreement such Holder is bound.

          The Class A Notes, the Class M Notes, the Class B Notes, the Class P
Certificates, the Class C Certificates, the Class G Certificates and the Class R
Certificates are collectively referred to herein as the "Securities."

          Pursuant to the terms of the Agreement, the Securities Administrator
will distribute from funds in the Certificate Distribution Account the amounts
described in the Agreement on the 25th day of each month or, if such 25th day is
not a Business Day, the Business Day immediately following (the "Distribution
Date"), commencing in August 2006. Such distributions will be made to the Person
in whose name this Certificate is registered at the close of business on the
last Business Day of the month preceding the month in which such payment is
made.

          Distributions on this Certificate will be made either by check mailed
to the address of the person entitled to distributions as it appears on the
Certificate Register or, in the

<PAGE>

case of any certificateholder that has so notified the Securities Administrator
in writing in accordance with the Agreement, by wire transfer in immediately
available funds to the account of such certificateholder at a bank or other
depository institution having appropriate wire transfer facilities; provided,
however, that the final distribution in retirement of the certificates will be
made only upon presentation and surrender of this Certificate at the office of
the Securities Administrator or such other address designated in writing by the
Securities Administrator. On each Distribution Date, a holder of this
Certificate will receive such holder's Percentage Interest of the amounts
required to be distributed with respect to the applicable Class of Certificates.

          The Securities Administrator will maintain or cause to be maintained a
Certificate Register in which, subject to such reasonable regulations as it may
prescribe, the Trustee will provide for the registration of Certificates and of
transfers and exchanges of Certificates. Upon surrender for registration of
transfer of any Certificate at any office or agency of the Securities
Administrator, or, if an Authenticating Agent has been appointed under the
Agreement, the Authenticating Agent, maintained for such purpose, the Securities
Administrator, will, subject to the limitations set forth in the Agreement,
authenticate and deliver, in the name of the designated transferee or
transferees, a Certificate of a like class and dated the date of authentication
by the Authenticating Agent. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Securities
Administrator, of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator, for that purpose and specified in such notice of final
distribution.

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

          Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

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

Dated:  August 8, 2006                  MERRILL LYNCH MORTGAGE INVESTORS TRUST,
                                        SERIES 2006-SL2

                                        WILMINGTON TRUST COMPANY,
                                        as Owner Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION,
as Securities Administrator

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

<PAGE>

                             REVERSE OF CERTIFICATE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

          This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, issued in one or more Classes of Class A Notes,
Class M Notes, Class B Notes, Class P Certificates, Class C Certificates, Class
G Certificates and Class R Certificates, each evidencing an interest in certain
distributions with respect to a pool of conventional, sub-prime Mortgage Loans
and home equity revolving lines of credit formed and sold by the Depositor and
certain other property conveyed by the Depositor to the Owner Trustee.

          Following the initial issuance of the Certificates, the principal
balance of this Certificate will be different from the Original Denomination
shown above. Anyone acquiring this Certificate may ascertain its current
principal balance by inquiry of the Securities Administrator.

          The Holder, by its acceptance of this Certificate, agrees that it will
look solely to the Trust Fund and certain amounts resulting from credit
enhancements for payment hereunder and that the Securities Administrator is not
liable to the Holders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

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

          No service charge will be made to the Holder for any transfer or
exchange of the Certificate, but the Trustee may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of the Certificate. Prior to due
presentation of a Certificate for registration of transfer, the Depositor and
the Securities Administrator may treat the person in whose name any Certificate
is registered as the owner of such Certificate and the Percentage Interest in
the Trust Fund evidenced thereby for the purpose of receiving distributions
pursuant to the Agreement and for all other purposes whatsoever, and neither the
Depositor nor the Securities Administrator will be affected by notice to the
contrary.

          The Agreement may be amended from time to time by the Depositor and
the Owner Trustee, without the consent of any of the Securityholders, to cure
any ambiguity, to correct or supplement any provisions therein which may be
inconsistent with the other provisions therein, to ensure continuing treatment
of each REMIC included in the Trust Fund as a REMIC, or to make any other
provisions with respect to matters or questions arising under the Agreement
which are not materially inconsistent with the provisions of the Agreement,
provided that such

<PAGE>

action does not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Securityholder.

          The Agreement may also be amended from time to time by the Depositor
and the Owner Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are 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 clause (i), without the consent of the Holders
of Certificates of such Class evidencing 66 2/3% 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.

          For federal income tax purposes, the Trust Fund will include one or
more "real estate mortgage investment conduits" (each, a "REMIC"). The REMIC
Regular Interests will represent "regular interests" in one of the REMICs
included in the Trust Fund. Each of the Class R Certificate and the Class G
Certificate will represent the sole class of "residual interest" in one or more
of the REMICs.

          The obligations and responsibilities of the Depositor and the Owner
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Owner Trustee of an Optional Termination; 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 Securityholders of all amounts required to
be distributed to them pursuant to this Agreement, as applicable. In no event
shall the trusts created under the Agreement 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.

<PAGE>

                              [FORM OF ASSIGNMENT]

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto _________________________________________________________________

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                                  NOTICE: The signature to this assignment
       ------------------------------   must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
-------------------------------------   alteration or enlargement or any change
(Signature guaranty)                    whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

<PAGE>

                                    EXHIBIT B

                                   [RESERVED]
<PAGE>

                                    EXHIBIT C

                   FORM OF RULE 144A INVESTMENT REPRESENTATION

             DESCRIPTION OF RULE 144A SECURITIES, INCLUDING NUMBERS:

                   __________________________________________

                   __________________________________________

                   __________________________________________

                   __________________________________________

          The undersigned seller, as registered holder (the "Seller"), intends
to transfer the Rule 144A Securities described above to the undersigned buyer
(the "Buyer").

          1. In connection with such transfer and in accordance with the
agreements pursuant to which the Rule 144A Securities were issued, the Seller
hereby certifies the following facts: Neither the Seller nor anyone acting on
its behalf has offered, transferred, pledged, sold or otherwise disposed of the
Rule 144A Securities, any interest in the Rule 144A Securities or any other
similar security to, or solicited any offer to buy or accept a transfer, pledge
or other disposition of the Rule 144A Securities, any interest in the Rule 144A
Securities or any other similar security from, or otherwise approached or
negotiated with respect to the Rule 144A Securities, any interest in the Rule
144A Securities 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
Rule 144A Securities under the Securities Act of 1933, as amended (the "1933
Act"), or that would render the disposition of the Rule 144A Securities a
violation of Section 5 of the 1933 Act or require registration pursuant thereto,
and that the Seller has not offered the Rule 144A Securities to any person other
than the Buyer or another "qualified institutional buyer" as defined in Rule
144A under the 1933 Act.

          2. The Buyer, pursuant to Section 3.05 of the Agreement, warrants and
represents to, and covenants with the Owner Trustee, the Depositor, the
Securities Administrator and the Indenture Trustee (as such terms are defined in
the Trust Agreement (the "Agreement"), dated as of August 8, 2006 between
Merrill Lynch Mortgage Investors, Inc., as Depositor, and Wilmington Trust
Company, as Owner Trustee) as follows:

               a. The Buyer understands that the Rule 144A Securities have not
     been registered under the 1933 Act or the securities laws of any state.

               b. The Buyer considers itself a substantial, sophisticated
     institutional investor having such knowledge and experience in financial
     and business matters that it is capable of evaluating the merits and risks
     of investment in the Rule 144A Securities.

               c. The Buyer has been furnished with all information regarding
     the Rule 144A Securities that it has requested from the Seller, the
     Securities Administrator, the Indenture Trustee, the Owner Trustee, the
     Servicers or the Master Servicer.

<PAGE>

               d. Neither the Buyer nor anyone acting on its behalf has offered,
     transferred, pledged, sold or otherwise disposed of the Rule 144A
     Securities, any interest in the Rule 144A Securities or any other similar
     security to, or solicited any offer to buy or accept a transfer, pledge or
     other disposition of the Rule 144A Securities, any interest in the Rule
     144A Securities or any other similar security from, or otherwise approached
     or negotiated with respect to the Rule 144A Securities, any interest in the
     Rule 144A Securities 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 Rule 144A Securities under the 1933 Act or that would
     render the disposition of the Rule 144A Securities a violation of Section 5
     of the 1933 Act or require registration pursuant thereto, nor will it act,
     nor has it authorized or will it authorize any person to act, in such
     manner with respect to the Rule 144A Securities.

               e. The Buyer is a "qualified institutional buyer" as that term is
     defined in Rule 144A under the 1933 Act and has completed either of the
     forms of certification to that effect attached hereto as Annex 1 or Annex
     2. The Buyer is aware that the sale to it is being made in reliance on Rule
     144A. The Buyer is acquiring the Rule 144A Securities for its own account
     or the accounts of other qualified institutional buyers, understands that
     such Rule 144A Securities may be resold, pledged or transferred only (i) to
     a person reasonably believed to be a qualified institutional buyer that
     purchases for its own account or for the account of a qualified
     institutional buyer to whom notice is given that the resale, pledge or
     transfer is being made in reliance on Rule 144A, or (ii) pursuant to
     another exemption from registration under the 1933 Act.

          3. The Buyer represents that:

          (i) The Buyer is not, and is not directly or indirectly acquiring the
Certificates for, on behalf of, or with any assets of, an employee benefit plan
or other arrangement subject to Title I of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), a plan subject to Section 4975 of
the Internal Revenue Code of 1986, as amended (the "Code"), or a plan or other
arrangement subject to any provisions under any federal, state, local, non-U.S.
or other laws or regulations that are substantively similar to the foregoing
provisions of ERISA or the Code; and

          (ii) the Buyer is familiar with the prohibited transaction
restrictions and fiduciary responsibility requirements of Sections 406 and 407
of ERISA and Section 4975 of the Code and understands that each of the parties
to which this certification is made is relying and will continue to rely on the
statements made in this paragraph 3.

          4. This document may be executed in one or more counterparts and by
the different parties hereto on separate counterparts, each of which, when so
executed, shall be deemed to be an original; such counterparts, together, shall
constitute one and the same document.

          IN WITNESS WHEREOF, each of the parties has executed this document as
of the date set forth below.

<PAGE>

-------------------------------------   ----------------------------------------
Print Name of Seller.                   Print Name of Buyer

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

Taxpayer Identification:                Taxpayer Identification:

No.                                     No.
    ---------------------------------       ------------------------------------
Date:                                   Date:
      -------------------------------         ----------------------------------

<PAGE>

                                                            ANNEX 1 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

          The undersigned hereby certifies as follows in connection with the
Rule 144A Investment Representation to which this Certification is attached:

          1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

          2. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested
on a discretionary basis $___________(1) in securities (except for the excluded
securities referred to below) as of the end of the Buyer's most recent fiscal
year (such amount being calculated in accordance with Rule 144A) and (ii) the
Buyer satisfies the criteria in the category marked below.

____ Corporation, etc. The Buyer is a corporation (other than a bank, savings
     and loan association or similar institution), Massachusetts or similar
     business trust, partnership, or charitable organization described in
     Section 501(c)(3) of the Internal Revenue Code.

____ 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.

____ QIB. An entity, all of the equity owners of which are "qualified
     institutional buyers."

____ 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.

____ Broker-Dealer. The Buyer is a dealer registered pursuant to Section 15 of
     the Securities Exchange Act of 1934.

----------
(1)  Buyer must own and/or invest on a discretionary basis at least $100,000,000
     in securities unless Buyer is a dealer, and, in that case, Buyer must own
     and/or invest on a discretionary basis at least $10,000,000 in securities.

<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 or 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 Adviser. The Buyer is an investment adviser registered under the
     Investment Advisers Act of 1940.

____ SBIC. The 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. The Buyer is a business development company
     as defined in Section 202(a)(22) of the Investment Advisers Act of 1940.

____ Trust Fund. The Buyer is a trust fund whose trustee is a bank or trust
     company and whose participants are exclusively (a) plans 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, or (b) employee benefit plans within the meaning of Title
     I of the Employee Retirement Income Security Act of 1974, but is not a
     trust fund that includes as participants individual retirement accounts or
     H.R. 10 plans.

          3. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan
participations, (v) repurchase agreements, (vi) securities owned but subject to
a repurchase agreement and (vii) currency, interest rate and commodity swaps.

          4. For purposes of determining the aggregate amount of securities
owned and/or invested on a discretionary basis by the Buyer, the Buyer used the
cost of such securities to the Buyer and did not include any of the securities
referred to in the preceding paragraph. 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.

<PAGE>

          5. The Buyer acknowledges that it is familiar with Rule 144A and
understands that the seller to it and other parties related to the Rule 144A
Securities are relying and will continue to rely on the statements made herein
because one or more sales to the Buyer may be in reliance on Rule 144A.

____   ____   Will the Buyer be purchasing the Rule 144A
Yes    No     Securities only for the Buyer's own account?

          6. If the answer to the foregoing question is "no", the Buyer agrees
that, in connection with any purchase of securities sold to the Buyer for the
account of a third party (including any separate account) in reliance on Rule
144A, the Buyer will only purchase for the account of a third party that at the
time is a "qualified institutional buyer" within the meaning of Rule 144A. In
addition, the Buyer agrees that the Buyer will not purchase securities for a
third party unless the Buyer has obtained a current representation letter from
such third party or taken other appropriate steps contemplated by Rule 144A to
conclude that such third party independently meets the definition of "qualified
institutional buyer" set forth in Rule 144A.

          7. The 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 Rule 144A Securities will
constitute a reaffirmation of this certification as of the date of such
purchase.

                                        ----------------------------------------
                                        Print Name of Buyer

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

<PAGE>

                                                            ANNEX 2 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [FOR BUYERS THAT ARE REGISTERED INVESTMENT COMPANIES]

          The undersigned hereby certifies as follows in connection with the
Rule 144A Investment Representation to which this Certification is attached:

          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 ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

          2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, 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.

____ The Buyer owned $________ in securities (other than the excluded securities
     referred to below) as of the end of the Buyer's most recent fiscal year
     (such amount being calculated in accordance with Rule 144A).

____ The Buyer is part of a Family of Investment Companies which owned in the
     aggregate $_________ in securities (other than the excluded securities
     referred to below) as of the end of the Buyer's most recent fiscal year
     (such amount being calculated in accordance with Rule 144A).

          3. The term "Family of Investment Companies" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

          4. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

          5. The Buyer is familiar with Rule 144A and understands that each of
the parties to which this certification is made 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.

<PAGE>

          6. The undersigned will notify each of the parties to which this
certification is made of any changes in the information and conclusions herein.
Until such notice, the Buyer's purchase of Rule 144A Securities will constitute
a reaffirmation of this certification by the undersigned as of the date of such
purchase.

                                        ----------------------------------------
                                        Print Name of Buyer

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

                                        IF AN ADVISER:

                                        ----------------------------------------
                                        Print Name of Buyer
                                        Date:
                                              ----------------------------------

<PAGE>

                                    EXHIBIT D

                     FORM OF INVESTOR REPRESENTATION LETTER

                                 ________, 20__

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wilmington Trust Company
1100 North Market Street
Wilmington, Delaware 19890

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Attention: Worldwide Securities Services/Structured Finance Services-Merrill
           Lynch Mortgage Investors Trust, 2006-SL2

       Re: Merrill Lynch Mortgage Investors Trust, 2006-SL2, Mortgage Loan
           Asset-Backed Certificates, Series 2006-SL2 [C][P][G]

Ladies and Gentlemen:

          _____________ (the "Purchaser") intends to purchase from _________
(the "Seller") _____% Certificate Percentage Interest of the Merrill Lynch
Mortgage Investors Trust, 2006-SL2, Mortgage Loan Asset-Backed Certificates,
Series 20006-SL2, Class [C][P][G] (the "Certificate"), issued pursuant to the
Trust Agreement (the "Trust Agreement"), dated as of August 8, 2006 between
Merrill Lynch Mortgage Investors, Inc. (the "Depositor") and Wilmington Trust
Company, as owner trustee (the "Owner Trustee"), as acknowledged and agreed by
LaSalle Bank National Association, as Certificate Registrar. All terms used
herein and not otherwise defined shall have the meanings set forth in the Trust
Agreement. The Purchaser hereby certifies, represents and warrants to, and
covenants with, the Depositor and the Certificate Registrar that:

               1. The Purchaser understands that (a) the Certificate has not
          been and will not be registered or qualified under the Securities Act
          of 1933, as amended (the "Act") or any state securities law, (b) the
          Depositor is not required to so register or qualify the Certificate,
          (c) the Certificate may be resold only if registered and qualified
          pursuant to the provisions of the Act or any state securities law, or
          if an exemption from such registration and qualification is available,
          (d) the Trust Agreement contains restrictions regarding the transfer
          of the Certificate and (e) the Certificate will bear a legend to the
          foregoing effect.

<PAGE>

               2. The Purchaser is acquiring the Certificate for its own account
          for investment only and not with a view to or for sale in connection
          with any distribution thereof in any manner that would violate the Act
          or any applicable state securities laws.

               3. The Purchaser is (a) a substantial, sophisticated
          institutional investor having such knowledge and experience in
          financial and business matters, and, in particular, in such matters
          related to securities similar to the Certificate, such that it is
          capable of evaluating the merits and risks of investment in the
          Certificate, (b) able to bear the economic risks of such an investment
          and (c) an "accredited investor" within the meaning of Rule 501 (a)
          promulgated pursuant to the Act.

               4. The Purchaser has been furnished with, and has had an
          opportunity to review (a) a copy of the Trust Agreement and (b) such
          other information concerning the Certificate, the Mortgage Loans and
          the Depositor as has been requested by the Purchaser from the
          Depositor or the Seller and is relevant to the Purchaser's decision to
          purchase the Certificate. The Purchaser has had any questions arising
          from such review answered by the Depositor or the Seller to the
          satisfaction of the Purchaser.

               5. The Purchaser has not and will not nor has it authorized or
          will it authorize any person to (a) offer, pledge, sell, dispose of or
          otherwise transfer any Certificate, any interest in the Certificates
          or any other similar security to any person in any manner, (b) solicit
          any offer to buy or to accept a pledge, disposition of other transfer
          of the Certificates, any interest in the Certificates or any other
          similar security from any person in any manner, (c) otherwise approach
          or negotiate with respect to any Certificate, any interest in any
          Certificate or any other similar security with any person in any
          manner, (d) make any general solicitation by means of general
          advertising or in any other manner or (e) take any other action, that
          (as to any of (a) through (e) above) would constitute a distribution
          of the Certificates under the Act, that would render the disposition
          of the Certificates a violation of Section 5 of the Act or any state
          securities law, or that would require registration or qualification
          pursuant thereto. The Purchaser will not sell or otherwise transfer
          the Certificates, except in compliance with the provisions of the
          Trust Agreement.

               6. The Purchaser represents:

          (i) The Purchaser represents that it is not, and is not directly or
indirectly acquiring the Certificate for, on behalf of, or with any assets of,
an employee benefit plan or other arrangement subject to Title I of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), a plan subject to
Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code"), or a
plan or other arrangement subject to any provisions under any federal, state,
local, non-U.S. or other laws or regulations that are substantively similar to
the foregoing provisions of ERISA or the Code; and

<PAGE>

          (ii) the Purchaser is familiar with the prohibited transaction
restrictions and fiduciary responsibility requirements of Sections 406 and 407
of ERISA and Section 4975 of the Code and understands that each of the parties
to which this certification is made is relying and will continue to rely on the
statements made in this paragraph 6.

               7. The Purchaser is not a non-United States person.

                                        Very truly yours,

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

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

<PAGE>

                                    EXHIBIT E

                    FORM OF TRANSFEROR REPRESENTATION LETTER

                                 _________, 20__

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wilmington Trust Company
1100 North Market Street
Wilmington, Delaware 19890

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Attention: Worldwide Securities Services/Structured Finance Services-Merrill
           Lynch Mortgage Investors Trust, 2006-SL2

       Re: Merrill Lynch Mortgage Investors Trust 2006-SL2, Mortgage Loan Asset-
           Backed Certificates, Series 2006-SL2, Class [C][P][G]

Ladies and Gentlemen:

          ______________ (the "Purchaser") intends to purchase from ________
(the "Seller") _____% Certificate Percentage Interest of the Merrill Lynch
Mortgage Investors Trust 2006-SL2, Mortgage Loan Asset-Backed Certificates,
Series 2006-SL2 Class [C][P][G] (the "Certificate"), issued pursuant to the
Trust Agreement (the "Trust Agreement"), dated as of August 8, 2006 between
Merrill Lynch Mortgage Investors, Inc., as depositor (the "Depositor") and
Wilmington Trust Company, as owner trustee (the "Owner Trustee"), as
acknowledged and agreed by LaSalle Bank National Association, as certificate
registrar (the "Certificate Registrar"). All terms used herein and not otherwise
defined shall have the meanings set forth in the Trust Agreement. The Seller
hereby certifies, represents and warrants to, and covenants with, the Depositor
and the Certificate Registrar that:

          Neither the Seller nor anyone acting on its behalf has (a) offered,
pledged, sold, disposed of or otherwise transferred the Certificate, any
interest in the Certificate or any other similar security to any person in any
manner, (b) has solicited any offer to buy or to accept a pledge, disposition or
other transfer of any Certificate, any interest in the Certificate or any other
similar security from any person in any manner, (c) has otherwise approached or
negotiated with respect to the Certificate, any interest in the Certificate or
any other similar security with any person in any manner, (d) has made any
general solicitation by means of general advertising or in any other manner, or
(e) has taken any other action, that (as to any of (a) through (e) above)

<PAGE>

would constitute a distribution of the Certificate under the Securities Act of
1933 (the "Act"), that would render the disposition of the Certificate a
violation of Section 5 of the Act or any state securities law, or that would
require registration or qualification pursuant thereto. The Seller will not act,
in any manner set forth in the foregoing sentence with respect to the
Certificate. The Seller has not and will not sell or otherwise transfer any of
the Certificate, except in compliance with the provisions of the Trust
Agreement.

                                        Very truly yours,

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

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

<PAGE>

                                    EXHIBIT F

                       FORM OF ERISA REPRESENTATION LETTER

                                ___________, 20__

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Wilmington Trust Company
1100 North Market Street
Wilmington, Delaware 19890

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Attention: Worldwide Securities Services/Structured Finance Services-Merrill
           Lynch Mortgage Investors Trust 2006-SL2

       Re: Merrill Lynch Mortgage Investors Trust 2006-SL2, Mortgage Loan Asset-
           Backed Certificates, Series 2006-SL2, Class [C][P][G][R]

Dear Sirs:

          ____________________________ (the "Transferee") intends to acquire
from ______________(the "Transferor") $_______ of Merrill Lynch Mortgage
Investors Trust 2006-SL2, Mortgage Loan Asset-Backed Certificates, Series
206-SL2, Class [C][P][G][R] (the "Certificates"), issued pursuant to a Trust
Agreement (the "Trust Agreement") dated August 8, 2006 among Merrill Lynch
Mortgage Investors, Inc., as depositor (the "Depositor") and Wilmington Trust
Company, as trustee (the "Owner Trustee"). Capitalized terms used herein and not
otherwise defined shall have the meanings assigned thereto in the Trust
Agreement.

          (1) The transferee hereby certificates, represents and warrants to,
and covenants with, the Depositor, the Owner Trustee, the Securities
Administrator and the Master Servicer that it is not, and is not directly or
indirectly acquiring the Certificate for, on behalf of, or with any assets of,
an employee benefit plan or other arrangement subject to Title I of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), a plan subject to
Section 4975 of the Internal Revenue Code of 1986, as amended (the "Code"), or a
plan or other arrangement subject to any provisions under any federal, state,
local, non-U.S. or other laws or regulations that are substantively similar to
the foregoing provisions of ERISA or the Code; and

          (2) The Transferee is familiar with the prohibited transaction
restrictions and fiduciary responsibility requirements of Sections 406 and 407
of ERISA and Section 4975 of the

<PAGE>

Code and understands that each of the parties to which this certification is
made is relying and will continue to rely on the statements made herein.

                                        Very truly yours,

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

                                        By:
                                            ------------------------------------
                                        Title:
                                               ---------------------------------
<PAGE>

                                    EXHIBIT G

                                   [RESERVED]

<PAGE>

                                    EXHIBIT H

                                   [RESERVED]

<PAGE>

                                    EXHIBIT I

                           FORM OF CLASS R CERTIFICATE

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

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE SPONSOR,
THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE OWNER
TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE CUSTODIANS REFERRED TO
BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC RESIDUAL
INTERESTS REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR
INSURED BY THE SPONSOR, THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES
ADMINISTRATOR, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE
CUSTODIANS OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.

THIS CLASS R-[_] CERTIFICATE MAY NOT BE TRANSFERRED, EXCEPT IN ACCORDANCE WITH
SECTION 3.05 OF THE TRUST AGREEMENT AND THE HOLDER OF THIS CERTIFICATE BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE
ONLY IN ACCORDANCE WITH SECTION 3.05 OF THE TRUST AGREEMENT. NO TRANSFER OF THIS
CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE SHALL HAVE RECEIVED, IN FORM AND
SUBSTANCE SATISFACTORY TO THE TRUSTEE (A) A TRANSFER AFFIDAVIT FROM THE
PROSPECTIVE INVESTOR; AND (B) AN AFFIDAVIT FROM THE TRANSFEROR REGARDING THE
OFFERING AND SALE OF THE CERTIFICATE.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE SECURITIES ADMINISTRATOR WITH A REPRESENTATION THAT SUCH
TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN SUBJECT TO
SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO STATE, LOCAL, FEDERAL, NON-U.S. OR
OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE
("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE
BY, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH PLAN.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY

<PAGE>

ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
ADMINISTRATOR.

                             CLASS R-[_] CERTIFICATE

Number: 06-SL2-R-[_]                       Principal Balance: $[________]

Cut-off Date: July 1, 2006                 Pass-Through Rate: Variable(1)

First Distribution Date: August 25, 2006   CUSIP: [________]

----------
(1)  Subject to a cap as described in the Agreement.

<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2006-SL2

          evidencing an ownership interest in distributions allocable to the
Class R-[_] Certificates with respect to a pool of conventional, sub-prime
mortgage loans and home equity revolving lines of credit formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

          This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
is the registered owner of the ownership interest (the "Ownership Interest")
evidenced by this Certificate in certain distributions with respect to a pool of
conventional, sub-prime mortgage loans and home equity revolving lines of credit
(the "Mortgage Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Securityholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by Wilshire Credit Corporation and Countrywide Home
Loans Servicing LP (the "Servicers") and are secured by second liens on
Mortgaged Properties. The Trust Fund was created pursuant to a trust agreement
(the "Agreement"), dated as of January 1, 2006, between the Depositor and
Wilmington Trust Company (the "Owner Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

          This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, Class R-[_] (the "Class R-[_] Certificates") and is
issued under and is subject to the terms, provisions and conditions of the
Agreement, to which Agreement the Holder of this Certificate by virtue of the
acceptance hereof assents and by which Agreement such Holder is bound.

          The Class A Notes, the Class M Notes, the Class B Notes, the Class P
Certificates, the Class C Certificates, the Class G Certificates and the Class R
Certificates are collectively referred to herein as the "Securities."

          Pursuant to the terms of the Agreement, the Securities Administrator
will distribute from funds in the Certificate Distribution Account the amounts
described in the Agreement on the 25th day of each month or, if such 25th day is
not a Business Day, the Business Day immediately following (the "Distribution
Date"), commencing in August 2006. Such distributions will be made to the Person
in whose name this Certificate is registered at the close of business on the
last Business Day of the month preceding the month in which such payment is
made.

          Distributions on this Certificate will be made either by check mailed
to the address of the person entitled to distributions as it appears on the
Certificate Register or, in the case of any certificateholder that has so
notified the Securities Administrator in writing in

<PAGE>

accordance with the Agreement, by wire transfer in immediately available funds
to the account of such certificateholder at a bank or other depository
institution having appropriate wire transfer facilities; provided, however, that
the final distribution in retirement of the certificates will be made only upon
presentation and surrender of this Certificate at the office of the Securities
Administrator or such other address designated in writing by the Securities
Administrator. On each Distribution Date, a holder of this Certificate will
receive such holder's Percentage Interest of the amounts required to be
distributed with respect to the applicable Class of Certificates.

          The Securities Administrator will maintain or cause to be maintained a
Certificate Register in which, subject to such reasonable regulations as it may
prescribe, the Trustee will provide for the registration of Certificates and of
transfers and exchanges of Certificates. Upon surrender for registration of
transfer of any Certificate at any office or agency of the Securities
Administrator, or, if an Authenticating Agent has been appointed under the
Agreement, the Authenticating Agent, maintained for such purpose, the Securities
Administrator, will, subject to the limitations set forth in the Agreement,
authenticate and deliver, in the name of the designated transferee or
transferees, a Certificate of a like class and dated the date of authentication
by the Authenticating Agent. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Securities
Administrator, of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator, for that purpose and specified in such notice of final
distribution.

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

          Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

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

Dated: August 8, 2006                   MERRILL LYNCH MORTGAGE INVESTORS TRUST,
                                        SERIES 2006-SL2

                                        WILMINGTON TRUST COMPANY, as Owner
                                        Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION, as
Securities Administrator

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

<PAGE>

                             REVERSE OF CERTIFICATE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

          This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, issued in one or more Classes of Class A Notes,
Class M Notes, Class B Notes, Class P Certificates, Class C Certificates, Class
G Certificates and Class R Certificates, each evidencing an interest in certain
distributions with respect to a pool of conventional, sub-prime Mortgage Loans
and home equity revolving lines of credit formed and sold by the Depositor and
certain other property conveyed by the Depositor to the Owner Trustee.

          Following the initial issuance of the Certificates, the principal
balance of this Certificate will be different from the Original Denomination
shown above. Anyone acquiring this Certificate may ascertain its current
principal balance by inquiry of the Securities Administrator.

          The Holder, by its acceptance of this Certificate, agrees that it will
look solely to the Trust Fund and certain amounts resulting from credit
enhancements for payment hereunder and that the Securities Administrator is not
liable to the Holders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

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

          No service charge will be made to the Holder for any transfer or
exchange of the Certificate, but the Trustee may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of the Certificate. Prior to due
presentation of a Certificate for registration of transfer, the Depositor and
the Securities Administrator may treat the person in whose name any Certificate
is registered as the owner of such Certificate and the Percentage Interest in
the Trust Fund evidenced thereby for the purpose of receiving distributions
pursuant to the Agreement and for all other purposes whatsoever, and neither the
Depositor nor the Securities Administrator will be affected by notice to the
contrary.

          The Agreement may be amended from time to time by the Depositor and
the Owner Trustee, without the consent of any of the Securityholders, to cure
any ambiguity, to correct or supplement any provisions therein which may be
inconsistent with the other provisions therein, to ensure continuing treatment
of each REMIC included in the Trust Fund as a REMIC, or to make any other
provisions with respect to matters or questions arising under the Agreement
which are not materially inconsistent with the provisions of the Agreement,
provided that such action does not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Securityholder.

<PAGE>

          The Agreement may also be amended from time to time by the Depositor
and the Owner Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are 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 clause (i), without the consent of the Holders
of Certificates of such Class evidencing 66 2/3% 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.

          For federal income tax purposes, the Trust Fund will include one or
more "real estate mortgage investment conduits" (each, a "REMIC"). The REMIC
Regular Interests will represent "regular interests" in one of the REMICs
included in the Trust Fund. Each of the Class R Certificate and the Class G
Certificate will represent the sole class of "residual interest" in one or more
of the REMICs.

          The obligations and responsibilities of the Depositor and the Owner
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Owner Trustee of an Optional Termination; 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 Securityholders of all amounts required to
be distributed to them pursuant to this Agreement, as applicable. In no event
shall the trusts created under the Agreement 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.

<PAGE>

                              [FORM OF ASSIGNMENT]

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto ________________________________________________________________

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                                  NOTICE: The signature to this assignment
       ------------------------------   must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
-------------------------------------   alteration or enlargement or any change
(Signature guaranty)                    whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

<PAGE>

                                   EXHIBIT J-1

                    FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Attention: Worldwide Securities Services/Structure Finance Services - Merrill
           Lynch Mortgage Investors Trust, Series 2006-SL2

Ladies and Gentlemen:

     We propose to purchase Merrill Lynch Mortgage Investors Trust, Mortgage
Loan Asset-Backed Certificates, Series 2006-SL2, Class [R][G] Certificate,
issued pursuant to the Trust Agreement dated August 8, 2006, between Merrill
Lynch Mortgage Investors, Inc. as Depositor and Wilmington Trust Company as
Owner Trustee (the "Trust Agreement").

     1. We certify that (a) we are not a disqualified organization and (b) we
are not purchasing such Class [R][G] Certificate on behalf of a disqualified
organization; for this purpose the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code. We
understand that any breach by us of this certification may cause us to be liable
for an excise tax imposed upon transfers to disqualified organizations.

     2. We certify that (a) we have historically paid our debts as they became
due, (b) we intend, and believe that we will be able, to continue to pay our
debts as they become due in the future, (c) we understand that, as beneficial
owner of the Class [R][G] Certificate, we may incur tax liabilities in excess of
any cash flows generated by the Class [R][G] Certificate, and (d) we intend to
pay any taxes associated with holding the Class [R][G] Certificate as they
become due and (e) we will not cause income from the Class [R][G] Certificate to
be attributable to a foreign permanent establishment or fixed base (within the
meaning of an applicable income tax treaty) of ours or another U.S. taxpayer.

<PAGE>

     3. We acknowledge that we will be the beneficial owner of the Class [R][G]
Certificate and:

     ____ The Class [R][G] Certificate will be registered in our name.

     ____ The Class [R][G] Certificate will be held in the name of our nominee,
          _________________, which is not a disqualified organization.

     4. We certify that we are not an employee benefit plan subject to Title I
of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), a
plan subject to Section 4975 of the Code or a plan subject to federal, state,
local, non-U.S. or other law substantively similar to the foregoing provisions
of ERISA or the Code (each, a "Plan"), and are not directly or indirectly
acquiring the Class [R][G] Certificate on behalf of or with any assets of a
Plan.

     5. We certify that (i) we are a U.S. person or (ii) we will hold the Class
[R][G] Certificate in connection with the conduct of a trade or business within
the United States and have furnished the transferor and the Certificate
Registrar with a duly completed and effective Internal Revenue Service Form
W-8ECI or successor form at the time and in the manner required by the Code; for
this purpose the term "U.S. person" means a citizen or resident of the United
States, a corporation, or partnership (unless, in the case of a partnership,
Treasury regulations are adopted that provide otherwise) created or organized in
or under the laws of the United States, any State thereof or the District of
Columbia, including an entity treated as a corporation or partnership for
federal income tax purposes, an estate whose income is subject to United States
federal income tax regardless of the source of its income, 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 such U.S. persons have the authority
to control all substantial decisions of the trust (or, to the extent provided in
applicable Treasury regulations, certain trusts in existence on August 20, 1996
which are eligible to elect to be treated as U.S. Persons. We agree that any
breach by us of this certification shall render the transfer of any interest in
the Class [R][G] Certificate to us absolutely null and void and shall cause no
rights in the Class [R][G] Certificate to vest in us.

     6. We agree that in the event that at some future time we wish to transfer
any interest in the Class [R][G] Certificate, we will transfer such interest in
the Class [R][G] Certificate only (a) to a transferee that (i) is not a
disqualified organization and is not purchasing such interest in the Class
[R][G] Certificate on behalf of a disqualified organization, (ii) is a U.S.
person or will hold the Class [R][G] Certificate in connection with the conduct
of a trade or business within the United States and will furnish us and the
Certificate Registrar with a duly completed and effective Internal Revenue
Service Form W-8ECI or successor form at the time and in the manner required by
the Code and (iii) has delivered to the Certificate Registrar a letter in the
form of this letter (including the affidavit appended hereto) and, we will
provide the Certificate Registrar a written statement substantially in the form
of Exhibit J-2 to the Trust Agreement.

     7. We hereby designate _______________________ as our fiduciary to act as
the tax matters person for each of the REMICs in which the Class [R][G]
represents the "residual interest" provided for in the Trust Agreement.

<PAGE>

                                        Very truly yours,

                                        [PURCHASER]

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

Accepted as of __________ __, 200__

MERRILL LYNCH MORTGAGE INVESTORS, INC.

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

<PAGE>

                                   APPENDIX A

                                        Affidavit pursuant to (i) Section
                                        860E(e)(4) of the Internal Revenue Code
                                        of 1986, as amended, and (ii) certain
                                        provisions of the Trust Agreement

Under penalties of perjury, the undersigned declares that the following is true:

     1. He or she is an officer of _________________________ (the "Transferee"),

     2. the Transferee's Employer Identification number is __________,

     3. the Transferee is not a "disqualified organization" (as defined below),
has no plan or intention of becoming a disqualified organization, and is not
acquiring any of its interest in the Merrill Lynch Mortgage Investors Trust,
Mortgage Loan Asset-Backed Certificates, Series 2006-SL2, Class [R][G]
Certificate on behalf of a disqualified organization or any other entity,

     4. unless Merrill Lynch Mortgage Investors, Inc.("MLMI") has consented to
the transfer to the Transferee by executing the form of Consent affixed as
Appendix B to the Transferee's Letter to which this Certificate is affixed as
Appendix A, the Transferee is a "U.S. person" (as defined below),

     5. that no purpose of the transfer is to avoid or impede the assessment or
collection of tax,

     6. the Transferee has historically paid its debts as they became due,

     7. the Transferee intends, and believes that it will be able, to continue
to pay its debts as they become due in the future,

     8. the Transferee understands that, as beneficial owner of the Class [R][G]
Certificate, it may incur tax liabilities in excess of any cash flows generated
by the Class [R][G] Certificate,

     9. the Transferee intends to pay any taxes associated with holding the
Class [R][G] Certificate as they become due,

     10. the Transferee consents to any amendment of the Trust Agreement that
shall be deemed necessary by MLMI (upon advice of counsel) to constitute a
reasonable arrangement to ensure that the Class [R][G] Certificate will not be
owned directly or indirectly by a disqualified organization, and

     11. IF BRACKETED, THE FOLLOWING CERTIFICATIONS ARE INAPPLICABLE [the
transfer is not a direct or indirect transfer of the Class [R][G] Certificate to
a foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of the Transferee, and as to each of the residual
interests represented by the Class

<PAGE>

[R][G] Certificate, the present value of the anticipated tax liabilities
associated with holding such residual interest does not exceed the sum of:

          A. the present value of any consideration given to the Transferee to
     acquire such residual interest;

          B. the present value of the expected future distributions on such
     residual interest; and

          C. the present value of the anticipated tax savings associated with
     holding such residual interest as the related REMIC generates losses.

For purposes of this declaration, (i) the Transferee is assumed to pay tax at a
rate equal to the highest rate of tax specified in Section 11(b)(1) of the Code,
but the tax rate specified in Section 55(b)(1)(B) of the Code may be used in
lieu of the highest rate specified in Section 11(b)(1) of the Code if the
Transferee has been subject to the alternative minimum tax under Section 55 of
the Code in the preceding two years and will compute its taxable income in the
current taxable year using the alternative minimum tax rate, and (ii) present
values are computed using a discount rate equal to the Federal short-term rate
prescribed by Section 1274(d) of the Code for the month of the transfer and the
compounding period used by the Transferee;]

[(11) (A) at the time of the transfer, and at the close of each of the
     Transferee's two fiscal years preceding the Transferee's fiscal year of
     transfer, the Transferee's gross assets for financial reporting purposes
     exceed $100 million and its net assets for financial reporting purposes
     exceed $10 million; and

     (B)  the Transferee is an eligible corporation as defined in Treasury
          regulations Section 1.860E-1(c)(6)(i) and has agreed in writing that
          any subsequent transfer of the Class [R][G] Certificate will be to
          another eligible corporation in a transaction that satisfies Treasury
          regulation Sections 1.860E-1(c)(4)(i), 1.860E-1(c)(4)(ii),
          1.860E-1(c)(4)(iii) and 1.860E-1(c)(5) and such transfer will not be a
          direct or indirect transfer to a foreign permanent establishment
          (within the meaning of an applicable income tax treaty) of a domestic
          corporation.

For purposes of this declaration, the gross and net assets of the Transferee do
not include any obligation of any related person as defined in Treasury
regulation Section 1.860E-1(c)(6)(ii) or any other asset if a principal purpose
for holding or acquiring the other asset is to permit the Transferee to make
this declaration or to satisfy the requirements of Treasury regulation Section
1.860E-1(c)(5)(i).]

(12) The Transferee will not cause income from the Class [R][G] Certificate to
be attributable to a foreign permanent establishment or fixed base (within the
meaning of an applicable income tax treaty) of the Transferee or another U.S.
taxpayer.

For purpose of this affidavit, the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue

<PAGE>

Code of 1986, as amended (the "Code")), any organization (other than a
cooperative described in Section 521 of the Code) that is exempt from taxation
under the Code (unless such organization is subject to tax on excess inclusions)
and any organization that is described in Section 1381(a)(2)(C) of the Code and
the term "U.S. Person" means a citizen or resident of the United States, a
corporation or partnership (unless, in the case of a partnership, Treasury
regulations are adopted that provide otherwise) created or organized in or under
the laws of the United States, any state thereof or the District of Columbia,
including an entity treated as a corporation or partnership for federal income
tax purposes, an estate whose income is subject to Unites States federal income
tax regardless of its source, or a trust if a court within the United States is
able to exercise primary supervision over the administration of such trust, and
one or more such U.S. Persons have the authority to control all substantial
decisions of such trust, (or, to the extent provided in applicable Treasury
regulations, certain trusts in existence on August 20, 1996, which are eligible
to elect to be treated as U.S. Persons).

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

By:
    ---------------------------------

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

Address of Investor for receipt of
distribution:

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

Address of Investor for receipt of
tax information:

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

(Corporate Seal)

Attest:

--------------------------
                          , Secretary
--------------------------

<PAGE>

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 Investor, and acknowledged to me that he executed the same as his
free act and deed and the free act and deed of the Investor.

Subscribed and sworn before me this
day of __________, 200_.

_____________________________________
Notary Public

County of ___________________________

State of ____________________________

My commission expires the ________ day of ______________

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
Dated:
       ------------------------------
<PAGE>

                                   EXHIBIT J-2

                         FORM OF TRANSFEROR'S AFFIDAVIT

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street
Chicago, Illinois 60603, Suite 1625
Attention: Worldwide Securities/Structured Finance Services-Merrill Lynch
Mortgage Investors Trust, Series 2006-SL2

Re:  Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
     Certificates, Series 2006-SL2

     _______________________ (the "Transferor") has reviewed the attached
affidavit of _____________________________ (the "Transferee"), and has no actual
knowledge that such affidavit is not true, and has no reason to believe that the
Transferee has the intention to impede the assessment or collection of any
federal, state or local taxes legally required to be paid with respect to the
Class [R][G] Certificate referred to in the attached affidavit. In addition, the
Transferor has conducted a reasonable investigation at the time of the transfer
and found that the Transferee had historically paid its debts as they came due
and found no significant evidence to indicate that the Transferee will not
continue to pay its debts as they become due.

                                        Very truly yours,

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

<PAGE>

                                    EXHIBIT K

                          FORM OF CLASS G CERTIFICATES

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

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE SPONSOR,
THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES ADMINISTRATOR, THE OWNER
TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE CUSTODIANS REFERRED TO
BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS CERTIFICATE, THE REMIC RESIDUAL
INTEREST REPRESENTED HEREBY NOR THE UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR
INSURED BY THE SPONSOR, THE DEPOSITOR, THE MASTER SERVICER, THE SECURITIES
ADMINISTRATOR, THE OWNER TRUSTEE, THE INDENTURE TRUSTEE, THE SERVICERS OR THE
CUSTODIANS OR BY ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR
INSTRUMENTALITY.

THIS CLASS G-[_] CERTIFICATE MAY NOT BE TRANSFERRED, EXCEPT IN ACCORDANCE WITH
SECTION 3.05 OF THE TRUST AGREEMENT AND THE HOLDER OF THIS CERTIFICATE BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE
ONLY IN ACCORDANCE WITH SECTION 3.05 OF THE TRUST AGREEMENT. NO TRANSFER OF THIS
CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE SHALL HAVE RECEIVED, IN FORM AND
SUBSTANCE SATISFACTORY TO THE TRUSTEE (A) A TRANSFER AFFIDAVIT FROM THE
PROSPECTIVE INVESTOR; AND (B) AN AFFIDAVIT FROM THE TRANSFEROR REGARDING THE
OFFERING AND SALE OF THE CERTIFICATE.

NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
TRANSFEREE PROVIDES THE SECURITIES ADMINISTRATOR WITH A REPRESENTATION THAT SUCH
TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN SUBJECT TO
SECTION 4975 OF THE CODE OR A PLAN SUBJECT TO STATE, LOCAL, FEDERAL, NON-U.S. OR
OTHER LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE
("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE
BY, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH PLAN.

FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE PRINCIPAL BALANCE OF
THIS CERTIFICATE MAY BE DIFFERENT FROM THE ORIGINAL DENOMINATION SHOWN BELOW.
ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL BALANCE BY
INQUIRY OF THE SECURITIES ADMINISTRATOR.

<PAGE>

                             CLASS G-[_] CERTIFICATE

Number: 06-SL2-G-[_]                       Original Denomination:
                                           $[___________]

Cut-off Date: July 1, 2006                 Last Scheduled
                                           Distribution Date: May 25, 2037

First Distribution Date: August 25, 2006   Aggregate Initial Certificate
                                           Balance of all Class G-[_]
                                           Certificates: $0

Pass-Through Rate: Variable(2)             CUSIP: [________]

----------
(2)  Subject to a cap as described in the Agreement.

<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

          evidencing an ownership interest in distributions allocable to the
Class G-[_] Certificates with respect to a pool of conventional, sub-prime
mortgage loans and home equity revolving lines of credit formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

          This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
is the registered owner of the ownership interest (the "Ownership Interest")
evidenced by this Certificate in certain distributions with respect to a pool of
conventional, sub-prime mortgage loans and home equity revolving lines of credit
(the "Mortgage Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Securityholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by Wilshire Credit Corporation and Countrywide Home
Loans Servicing LP (the "Servicers") and are secured by second liens on
Mortgaged Properties. The Trust Fund was created pursuant to a trust agreement
(the "Agreement"), dated as of January 1, 2006, between the Depositor and
Wilmington Trust Company (the "Owner Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

          This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, Class G-[_] (the "Class G-[_] Certificates")
and is issued under and is subject to the terms, provisions and conditions of
the Agreement, to which Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which Agreement such Holder is bound.

          The Class A Notes, the Class M Notes, the Class B Notes, the Class P
Certificates, the Class C Certificates, the Class G Certificates and the Class R
Certificates are collectively referred to herein as the "Securities."

          Pursuant to the terms of the Agreement, the Securities Administrator
will distribute from funds in the Certificate Distribution Account the amounts
described in the Agreement on the 25th day of each month or, if such 25th day is
not a Business Day, the Business Day immediately following (the "Distribution
Date"), commencing in August 2006. Such distributions will be made to the Person
in whose name this Certificate is registered at the close of business on the
last Business Day of the month preceding the month in which such payment is
made.

          Distributions on this Certificate will be made either by check mailed
to the address of the person entitled to distributions as it appears on the
Certificate Register or, in the case of any certificateholder that has so
notified the Securities Administrator in writing in

<PAGE>

accordance with the Agreement, by wire transfer in immediately available funds
to the account of such certificateholder at a bank or other depository
institution having appropriate wire transfer facilities; provided, however, that
the final distribution in retirement of the certificates will be made only upon
presentation and surrender of this Certificate at the office of the Securities
Administrator or such other address designated in writing by the Securities
Administrator. On each Distribution Date, a holder of this Certificate will
receive such holder's Percentage Interest of the amounts required to be
distributed with respect to the applicable Class of Certificates.

          The Securities Administrator will maintain or cause to be maintained a
Certificate Register in which, subject to such reasonable regulations as it may
prescribe, the Trustee will provide for the registration of Certificates and of
transfers and exchanges of Certificates. Upon surrender for registration of
transfer of any Certificate at any office or agency of the Securities
Administrator, or, if an Authenticating Agent has been appointed under the
Agreement, the Authenticating Agent, maintained for such purpose, the Securities
Administrator, will, subject to the limitations set forth in the Agreement,
authenticate and deliver, in the name of the designated transferee or
transferees, a Certificate of a like class and dated the date of authentication
by the Authenticating Agent. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Securities
Administrator, of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator, for that purpose and specified in such notice of final
distribution.

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

          Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

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

Dated: August 8, 2006                   MERRILL LYNCH MORTGAGE INVESTORS TRUST,
                                        SERIES 2006-SL2

                                        WILMINGTON TRUST COMPANY, as Owner
                                        Trustee

                                        By:
                                            ------------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION, as
Securities Administrator

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

<PAGE>

                             REVERSE OF CERTIFICATE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

          This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, issued in one or more Classes of Class A Notes,
Class M Notes, Class B Notes, Class P Certificates, Class C Certificates, Class
G Certificates and Class R Certificates, each evidencing an interest in certain
distributions with respect to a pool of conventional, sub-prime Mortgage Loans
and home equity revolving lines of credit formed and sold by the Depositor and
certain other property conveyed by the Depositor to the Owner Trustee.

          Following the initial issuance of the Certificates, the principal
balance of this Certificate will be different from the Original Denomination
shown above. Anyone acquiring this Certificate may ascertain its current
principal balance by inquiry of the Securities Administrator.

          The Holder, by its acceptance of this Certificate, agrees that it will
look solely to the Trust Fund and certain amounts resulting from credit
enhancements for payment hereunder and that the Securities Administrator is not
liable to the Holders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

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

          No service charge will be made to the Holder for any transfer or
exchange of the Certificate, but the Trustee may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of the Certificate. Prior to due
presentation of a Certificate for registration of transfer, the Depositor and
the Securities Administrator may treat the person in whose name any Certificate
is registered as the owner of such Certificate and the Percentage Interest in
the Trust Fund evidenced thereby for the purpose of receiving distributions
pursuant to the Agreement and for all other purposes whatsoever, and neither the
Depositor nor the Securities Administrator will be affected by notice to the
contrary.

          The Agreement may be amended from time to time by the Depositor and
the Owner Trustee, without the consent of any of the Securityholders, to cure
any ambiguity, to correct or supplement any provisions therein which may be
inconsistent with the other provisions therein, to ensure continuing treatment
of each REMIC included in the Trust Fund as a REMIC, or to make any other
provisions with respect to matters or questions arising under the Agreement
which are not materially inconsistent with the provisions of the Agreement,
provided that such action does not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Securityholder.

<PAGE>

          The Agreement may also be amended from time to time by the Depositor
and the Owner Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are 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 clause (i), without the consent of the Holders
of Certificates of such Class evidencing 66 2/3% 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.

          For federal income tax purposes, the Trust Fund will include one or
more "real estate mortgage investment conduits" (each, a "REMIC"). The REMIC
Regular Interests will represent "regular interests" in one of the REMICs
included in the Trust Fund. Each of the Class R Certificate and the Class G
Certificate will represent the sole class of "residual interest" in one or more
of the REMICs.

          The obligations and responsibilities of the Depositor and the Owner
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Owner Trustee of an Optional Termination; 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 Securityholders of all amounts required to
be distributed to them pursuant to this Agreement, as applicable. In no event
shall the trusts created under the Agreement 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.

<PAGE>

                              [FORM OF ASSIGNMENT]

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto _________________________________________________________________

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                                  NOTICE: The signature to this assignment
       ------------------------------   must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
-------------------------------------   alteration or enlargement or any change
(Signature guaranty)                    whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

<PAGE>

                                    EXHIBIT L

                          FORM OF CLASS P CERTIFICATES

THIS CERTIFICATE DOES NOT REPRESENT AN OBLIGATION OF OR INTEREST IN THE SPONSOR,
THE DEPOSITOR, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR OR ANY SERVICER
REFERRED TO BELOW OR ANY OF THEIR AFFILIATES. NEITHER THIS CERTIFICATE NOR THE
UNDERLYING MORTGAGE LOANS ARE GUARANTEED OR INSURED BY THE SPONSOR, THE
DEPOSITOR, THE OWNER TRUSTEE, THE SECURITIES ADMINISTRATOR, ANY SERVICER OR BY
ANY OF THEIR AFFILIATES OR BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.

THIS CLASS P-[_] CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF
1940, AS AMENDED (THE "1940 ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS,
AND MAY NOT, DIRECTLY OR INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR
OFFERED FOR SALE, UNLESS SUCH TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE
ACT, THE 1940 ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER
ALSO COMPLIES WITH THE OTHER PROVISIONS OF SECTION 3.05 OF THE TRUST AGREEMENT.
NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE SECURITIES
ADMINISTRATOR SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE
SECURITIES ADMINISTRATOR (A) AN INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR;
AND (B) REPRESENTATIONS FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF
THE CERTIFICATES.

THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR
OTHERWISE TRANSFER SUCH CERTIFICATE ONLY (A) TO A PERSON IT REASONABLY BELIEVES
IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A OR (B) TO AN INSTITUTIONAL ACCREDITED INVESTOR AS DEFINED IN RULE
501(A)(1), (2), (3) OR (7) OF REGULATION D, AND IN EACH CASE IN ACCORDANCE WITH
ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SUBJECT TO THE TRUSTEE'S
RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF A
CERTIFICATE OF TRANSFER IN THE FORM APPEARING IN THE TRUST AGREEMENT.

EACH TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO REPRESENT EITHER (I) THAT
IT IS NOT, AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THE CERTIFICATES FOR, ON
BEHALF OF OR WITH ANY ASSETS OF, AN EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED ("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE

<PAGE>

OF 1986, AS AMENDED (THE "CODE"), OR A PLAN OR OTHER ARRANGEMENT SUBJECT TO ANY
PROVISIONS UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR
REGULATIONS THAT ARE SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA
OR THE CODE ("SIMILAR LAW") OR (II) THAT IT IS A PLAN THAT IS NOT SUBJECT TO
ERISA OR SECTION 4975 OF THE CODE BUT THAT IS SUBJECT TO SIMILAR LAW, AND THAT
ITS ACQUISITION AND HOLDING OF THIS CERTIFICATE OR ANY INTEREST THEREIN,
THROUGHOUT THE PERIOD THAT IT HOLDS THIS CERTIFICATE, WILL NOT CONSTITUTE OR
RESULT IN A VIOLATION OF SIMILAR LAW, AND WILL NOT SUBJECT THE DEPOSITOR, THE
INDENTURE TRUSTEE, THE ISSUING ENTITY, THE OWNER TRUSTEE, THE SECURITIES
ADMINISTRATOR, THE MASTER SERVICER OR THE SERVICERS TO ANY OBLIGATION IN
ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE INDENTURE.

                            CLASS P-[_] CERTIFICATE

Number: 06-SL2-P-[_]                       Percentage Interest:
                                           100%

Cut-off Date: July 1, 2006

First Distribution Date: August 25, 2006   Aggregate Percentage Interest
                                           of all Class P-[_] Certificates:
                                           100%

                                           CUSIP: [________]

<PAGE>

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                    MORTGAGE LOAN ASSET-BACKED CERTIFICATES,
                                 Series 2006-SL2

          evidencing an ownership interest in distributions allocable to the
Class P-[_] Certificates with respect to a pool of conventional, sub-prime
mortgage loans formed and sold by

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.

          This certifies that MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
is the registered owner of the ownership interest (the "Ownership Interest")
evidenced by this Certificate (obtained by dividing the Percentage Interest of
this Certificate by the aggregate Percentage Interest of all Class P-[_]
Certificates) in certain distributions with respect to a pool of conventional,
sub-prime mortgage loans and home equity revolving lines of credit (the
"Mortgage Loans") formed and sold by Merrill Lynch Mortgage Investors, Inc.
(hereinafter called the "Depositor"), and certain other property held in trust
for the benefit of Securityholders (collectively, the "Trust Fund"). The
Mortgage Loans are serviced by Wilshire Credit Corporation and Countrywide Home
Loans Servicing LP (the "Servicers") and are secured by second liens on
Mortgaged Properties. The Trust Fund was created pursuant to a trust agreement
(the "Agreement"), dated as of January 1, 2006, between the Depositor and
Wilmington Trust Company (the "Owner Trustee"), a summary of certain of the
pertinent provisions of which is set forth hereafter. To the extent not defined
herein, the capitalized terms used herein have the meanings assigned in the
Agreement.

          This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust, Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, Class P-[_] (the "Class P-[_] Certificates")
and is issued under and is subject to the terms, provisions and conditions of
the Agreement, to which Agreement the Holder of this Certificate by virtue of
the acceptance hereof assents and by which Agreement such Holder is bound.

          The Class A Notes, the Class M Notes, the Class B Notes, the Class P
Certificates, the Class C Certificates, the Class G Certificates and the Class R
Certificates are collectively referred to herein as the "Securities."

          Pursuant to the terms of the Agreement, the Securities Administrator
will distribute from funds in the Certificate Distribution Account the amounts
described in the Agreement on the 25th day of each month or, if such 25th day is
not a Business Day, the Business Day immediately following (the "Distribution
Date"), commencing in August 2006. Such distributions will be made to the Person
in whose name this Certificate is registered at the close of business on the
last Business Day of the month preceding the month in which such payment is
made.

          Distributions on this Certificate will be made either by check mailed
to the address of the person entitled to distributions as it appears on the
Certificate Register or, in the case of any certificateholder that has so
notified the Securities Administrator in writing in

<PAGE>

accordance with the Agreement, by wire transfer in immediately available funds
to the account of such certificateholder at a bank or other depository
institution having appropriate wire transfer facilities; provided, however, that
the final distribution in retirement of the certificates will be made only upon
presentation and surrender of this Certificate at the office of the Securities
Administrator or such other address designated in writing by the Securities
Administrator. On each Distribution Date, a holder of this Certificate will
receive such holder's Percentage Interest of the amounts required to be
distributed with respect to the applicable Class of Certificates.

          The Securities Administrator will maintain or cause to be maintained a
Certificate Register in which, subject to such reasonable regulations as it may
prescribe, the Trustee will provide for the registration of Certificates and of
transfers and exchanges of Certificates. Upon surrender for registration of
transfer of any Certificate at any office or agency of the Securities
Administrator, or, if an Authenticating Agent has been appointed under the
Agreement, the Authenticating Agent, maintained for such purpose, the Securities
Administrator, will, subject to the limitations set forth in the Agreement,
authenticate and deliver, in the name of the designated transferee or
transferees, a Certificate of a like class and dated the date of authentication
by the Authenticating Agent. Notwithstanding the above, the final distribution
on this Certificate will be made after due notice by the Securities
Administrator, of the pendency of such distribution and only upon presentation
and surrender of this Certificate at the office or agency appointed by the
Securities Administrator, for that purpose and specified in such notice of final
distribution.

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

          Unless the certificate of authentication has been executed by the
Authenticating Agent, by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement or be valid for any purpose.

<PAGE>

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

Dated: August 8, 2006                   MERRILL LYNCH MORTGAGE INVESTORS
                                        TRUST, SERIES 2006-SL2

                                        WILMINGTON TRUST COMPANY, as Owner
                                        Trustee

                                        By:
                                            ---------------------------------
                                            Authorized Officer

CERTIFICATE OF AUTHENTICATION

This is one of the Certificates
referred to in the within-mentioned
Agreement.

LASALLE BANK NATIONAL ASSOCIATION, as
Securities Administrator

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

<PAGE>

                             REVERSE OF CERTIFICATE

                     MERRILL LYNCH MORTGAGE INVESTORS TRUST
                     MORTGAGE LOAN ASSET-BACKED SECURITIES,
                                 Series 2006-SL2

          This Certificate is one of a duly authorized issue of Certificates,
designated as Merrill Lynch Mortgage Investors Trust Mortgage Loan Asset-Backed
Securities, Series 2006-SL2, issued in one or more Classes of Class A Notes,
Class M Notes, Class B Notes, Class P Certificates, Class C Certificates, Class
G Certificates and Class R Certificates, each evidencing an interest in certain
distributions with respect to a pool of conventional, sub-prime Mortgage Loans
and home equity revolving lines of credit formed and sold by the Depositor and
certain other property conveyed by the Depositor to the Owner Trustee.

          Following the initial issuance of the Certificates, the principal
balance of this Certificate will be different from the Original Denomination
shown above. Anyone acquiring this Certificate may ascertain its current
principal balance by inquiry of the Securities Administrator.

          The Holder, by its acceptance of this Certificate, agrees that it will
look solely to the Trust Fund and certain amounts resulting from credit
enhancements for payment hereunder and that the Securities Administrator is not
liable to the Holders for any amount payable under this Certificate or the
Agreement or, except as expressly provided in the Agreement, subject to any
liability under the Agreement.

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

          No service charge will be made to the Holder for any transfer or
exchange of the Certificate, but the Trustee may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer or exchange of the Certificate. Prior to due
presentation of a Certificate for registration of transfer, the Depositor and
the Securities Administrator may treat the person in whose name any Certificate
is registered as the owner of such Certificate and the Percentage Interest in
the Trust Fund evidenced thereby for the purpose of receiving distributions
pursuant to the Agreement and for all other purposes whatsoever, and neither the
Depositor nor the Securities Administrator will be affected by notice to the
contrary.

          The Agreement may be amended from time to time by the Depositor and
the Owner Trustee, without the consent of any of the Securityholders, to cure
any ambiguity, to correct or supplement any provisions therein which may be
inconsistent with the other provisions therein, to ensure continuing treatment
of each REMIC included in the Trust Fund as a REMIC, or to make any other
provisions with respect to matters or questions arising under the Agreement
which are not materially inconsistent with the provisions of the Agreement,
provided that such

<PAGE>

action does not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Securityholder.

          The Agreement may also be amended from time to time by the Depositor
and the Owner Trustee, with the consent of the Holders of Certificates
evidencing in the aggregate not less than 66 2/3% of the Percentage Interests of
each Class of Certificates affected thereby, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Agreement or of modifying in any manner the rights of the Holders of
Certificates of such Class; provided, however, that no such amendment may (i)
reduce in any manner the amount of, or delay the timing of, payments received on
Mortgage Loans which are 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 clause (i), without the consent of the Holders
of Certificates of such Class evidencing 66 2/3% 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.

          For federal income tax purposes, the Trust Fund will include one or
more "real estate mortgage investment conduits" (each, a "REMIC"). The REMIC
Regular Interests will represent "regular interests" in one of the REMICs
included in the Trust Fund. Each of the Class R Certificate and the Class G
Certificate will represent the sole class of "residual interest" in one or more
of the REMICs.

          The obligations and responsibilities of the Depositor and the Owner
Trustee under the Agreement shall terminate upon the earlier of (a) the exercise
by the Owner Trustee of an Optional Termination; 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 Securityholders of all amounts required to
be distributed to them pursuant to this Agreement, as applicable. In no event
shall the trusts created under the Agreement 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.

<PAGE>

                              [FORM OF ASSIGNMENT]

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto _________________________________________________________________

(PLEASE INSERT SOCIAL SECURITY* OR TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE)

________________________________________________________________________________
(Please Print or Type Name and Address of Assignee)

________________________________________________________________________________
the within Certificate, and all rights thereunder, and hereby does irrevocably
constitute and appoint

__________________________________________ Attorney to transfer the within
Certificate on the books kept for the registration thereof, with full power of
substitution in the premises.

Dated:                                  NOTICE: The signature to this assignment
       ------------------------------   must correspond with the name as it
                                        appears upon the face of the within
                                        Certificate in every particular, without
-------------------------------------   alteration or enlargement or any change
(Signature guaranty)                    whatever.

(*This information, which is voluntary, is being requested to ensure that the
assignee will not be subject to backup withholding under Section 3406 of the
Code.)

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