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    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    Issuer

     

     

    and

     

     

    DEUTSCHE
      BANK NATIONAL TRUST COMPANY

    Indenture
      Trustee

     

    _____________________________

     

    INDENTURE

     

    Dated
      as
      of June 22, 2006

     

    _____________________________

     

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

     

    ________________

     

    

     

    
      

      

    

    

     

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF CONTENTS

     

     

    
      	
              ARTICLE
                I

            
	
              DEFINITIONS

            
	
              Section
                1.01.

            	
              Definitions

            
	
              Section
                1.02.

            	
              Incorporation
                by Reference of Trust Indenture Act

            
	
              Section
                1.03.

            	
              Rules
                of Construction

            
	 	 
	
              ARTICLE
                II

            
	
              ORIGINAL
                ISSUANCE OF THE NOTES

            
	
              Section
                2.01.

            	
              Form

            
	
              Section
                2.02.

            	
              Execution,
                Authentication and Delivery

            
	
              Section
                2.03.

            	
              Acceptance
                of Mortgage Loans by Indenture Trustee.

            
	 	 
	
              ARTICLE
                III

            
	
              COVENANTS

            
	
              Section
                3.01.

            	
              Collection
                of Payments with respect to the Mortgage Loans

            
	
              Section
                3.02.

            	
              Maintenance
                of Office or Agency

            
	
              Section
                3.03.

            	
              Money
                for Payments To Be Held in Trust; Paying Agent

            
	
              Section
                3.04.

            	
              Existence

            
	
              Section
                3.05.

            	
              Payment
                of Principal and Interest.

            
	
              Section
                3.06.

            	
              Protection
                of Trust Estate.

            
	
              Section
                3.07.

            	
              Opinions
                as to Trust Estate.

            
	
              Section
                3.08.

            	
              Performance
                of Obligations.

            
	
              Section
                3.09.

            	
              Negative
                Covenants

            
	
              Section
                3.10.

            	
              [Reserved.]

            
	
              Section
                3.11.

            	
              [Reserved.]

            
	
              Section
                3.12.

            	
              Representations
                and Warranties Concerning the Mortgage Loans

            
	
              Section
                3.13.

            	
              Amendments
                to Servicing Agreement

            
	
              Section
                3.14.

            	
              Servicer
                as Agent and Bailee of the Indenture Trustee

            
	
              Section
                3.15.

            	
              Investment
                Company Act

            
	
              Section
                3.16.

            	
              Issuer
                May Consolidate, etc.

            
	
              Section
                3.17.

            	
              Successor
                or Transferee.

            
	
              Section
                3.18.

            	
              No
                Other Business

            
	
              Section
                3.19.

            	
              No
                Borrowing

            
	
              Section
                3.20.

            	
              Guarantees,
                Loans, Advances and Other Liabilities

            
	
              Section
                3.21.

            	
              Capital
                Expenditures

            
	
              Section
                3.22.

            	
              Determination
                of Note Rate

            
	
              Section
                3.23.

            	
              Restricted
                Payments

            
	
              Section
                3.24.

            	
              Notice
                of Events of Default

            
	
              Section
                3.25.

            	
              Further
                Instruments and Acts

            
	
              Section
                3.26.

            	
              Statements
                to Noteholders

            
	
              Section
                3.27.

            	
              [Reserved].

            
	
              Section
                3.28.

            	
              Certain
                Representations Regarding the Trust Estate.

            
	
              Section
                3.29.

            	
              Allocation
                of Realized Losses.

            
	 	 
	
              ARTICLE
                IV

            
	
              THE
                NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

            
	
              Section
                4.01.

            	
              The
                Notes

            
	
              Section
                4.02.

            	
              Registration
                of and Limitations on Transfer and Exchange of Notes; Appointment
                of Note
                Registrar and Certificate.

            
	
              Section
                4.03.

            	
              Mutilated,
                Destroyed, Lost or Stolen Notes

            
	
              Section
                4.04.

            	
              Persons
                Deemed Owners

            
	
              Section
                4.05.

            	
              Cancellation

            
	
              Section
                4.06.

            	
              Book-Entry
                Notes

            
	
              Section
                4.07.

            	
              Notices
                to Depository

            
	
              Section
                4.08.

            	
              Definitive
                Notes

            
	
              Section
                4.09.

            	
              Tax
                Treatment

            
	
              Section
                4.10.

            	
              Satisfaction
                and Discharge of Indenture

            
	
              Section
                4.11.

            	
              Application
                of Trust Money

            
	
              Section
                4.12.

            	
              Derivative
                Contracts for Benefit of the Certificates

            
	
              Section
                4.13.

            	
              Repayment
                of Monies Held by Paying Agent

            
	
              Section
                4.14.

            	
              Temporary
                Notes

            
	
              Section
                4.15.

            	
              Representation
                Regarding ERISA

            
	 	 
	
              ARTICLE
                V

            
	
              DEFAULT
                AND REMEDIES

            
	
              Section
                5.01.

            	
              Events
                of Default

            
	
              Section
                5.02.

            	
              Acceleration
                of Maturity; Rescission and Annulment

            
	
              Section
                5.03.

            	
              Collection
                of Indebtedness and Suits for Enforcement by Indenture
                Trustee.

            
	
              Section
                5.04.

            	
              Remedies;
                Priorities.

            
	
              Section
                5.05.

            	
              Optional
                Preservation of the Trust Estate

            
	
              Section
                5.06.

            	
              Limitation
                of Suits

            
	
              Section
                5.07.

            	
              Unconditional
                Rights of Noteholders To Receive Principal and
                Interest.

            
	
              Section
                5.08.

            	
              Restoration
                of Rights and Remedies

            
	
              Section
                5.09.

            	
              Rights
                and Remedies Cumulative

            
	
              Section
                5.10.

            	
              Delay
                or Omission Not a Waiver

            
	
              Section
                5.11.

            	
              Control
                By Noteholders

            
	
              Section
                5.12.

            	
              Waiver
                of Past Defaults

            
	
              Section
                5.13.

            	
              Undertaking
                for Costs

            
	
              Section
                5.14.

            	
              Waiver
                of Stay or Extension Laws

            
	
              Section
                5.15.

            	
              Sale
                of Trust Estate.

            
	
              Section
                5.16.

            	
              Action
                on Notes

            
	
              Section
                5.17.

            	
              Performance
                and Enforcement of Certain Obligations.

            
	 	 
	
              ARTICLE
                VI

            
	
              THE
                INDENTURE TRUSTEE

            
	
              Section
                6.01.

            	
              Duties
                of Indenture Trustee.

            
	
              Section
                6.02.

            	
              Rights
                of Indenture Trustee.

            
	
              Section
                6.03.

            	
              Individual
                Rights of Indenture Trustee

            
	
              Section
                6.04.

            	
              Indenture
                Trustee’s Disclaimer

            
	
              Section
                6.05.

            	
              Notice
                of Event of Default

            
	
              Section
                6.06.

            	
              Reports
                by Indenture Trustee to Holders and Tax Administration.

            
	
              Section
                6.07.

            	
              Compensation
                and Indemnity

            
	
              Section
                6.08.

            	
              Replacement
                of Indenture Trustee

            
	
              Section
                6.09.

            	
              Successor
                Indenture Trustee by Merger

            
	
              Section
                6.10.

            	
              Appointment
                of Co-Indenture Trustee or Separate Indenture Trustee.

            
	
              Section
                6.11.

            	
              Eligibility;
                Disqualification

            
	
              Section
                6.12.

            	
              Preferential
                Collection of Claims Against Issuer

            
	
              Section
                6.13.

            	
              Representations
                and Warranties

            
	
              Section
                6.14.

            	
              Directions
                to Indenture Trustee

            
	
              Section
                6.15.

            	
              The
                Agents

            
	 	 
	
              ARTICLE
                VII

            
	
              NOTEHOLDERS’
                LISTS AND REPORTS

            
	
              Section
                7.01.

            	
              Issuer
                To Furnish Indenture Trustee Names and Addresses of
                Noteholders.

            
	
              Section
                7.02.

            	
              Preservation
                of Information; Communications to Noteholders.

            
	
              Section
                7.03.

            	
              Reports
                of Issuer.

            
	
              Section
                7.04.

            	
              Reports
                by Indenture Trustee

            
	
              Section
                7.05.

            	
              Statements
                to Noteholders.

            
	 	 
	
              ARTICLE
                VIII

            
	
              ACCOUNTS,
                DISBURSEMENTS AND RELEASES

            
	
              Section
                8.01.

            	
              Collection
                of Money

            
	
              Section
                8.02.

            	
              Trust
                Accounts.

            
	
              Section
                8.03.

            	
              Officer’s
                Certificate

            
	
              Section
                8.04.

            	
              Termination
                Upon Distribution to Noteholders

            
	
              Section
                8.05.

            	
              Release
                of Trust Estate.

            
	
              Section
                8.06.

            	
              Surrender
                of Notes Upon Final Payment

            
	
              Section
                8.07.

            	
              Optional
                Redemption of the Notes.

            
	 	 
	
              ARTICLE
                IX

            
	
              SUPPLEMENTAL
                INDENTURES

            
	
              Section
                9.01.

            	
              Supplemental
                Indentures Without Consent of Noteholders.

            
	
              Section
                9.02.

            	
              Supplemental
                Indentures With Consent of Noteholders

            
	
              Section
                9.03.

            	
              Execution
                of Supplemental Indentures

            
	
              Section
                9.04.

            	
              Effect
                of Supplemental Indenture

            
	
              Section
                9.05.

            	
              Conformity
                with Trust Indenture Act

            
	
              Section
                9.06.

            	
              Reference
                in Notes to Supplemental Indentures

            
	 	 
	
              ARTICLE
                X

            
	
              MISCELLANEOUS

            
	
              Section
                10.01.

            	
              Compliance
                Certificates and Opinions, etc.

            
	
              Section
                10.02.

            	
              Form
                of Documents Delivered to Indenture Trustee

            
	
              Section
                10.03.

            	
              Acts
                of Noteholders.

            
	
              Section
                10.04.

            	
              Notices
                etc., to Indenture Trustee Issuer and Rating Agencies.

            
	
              Section
                10.05.

            	
              Notices
                to Noteholders; Waiver

            
	
              Section
                10.06.

            	
              Conflict
                with Trust Indenture Act

            
	
              Section
                10.07.

            	
              Effect
                of Headings

            
	
              Section
                10.08.

            	
              Successors
                and Assigns

            
	
              Section
                10.09.

            	
              Separability

            
	
              Section
                10.10.

            	
              [Reserved.]

            
	
              Section
                10.11.

            	
              Legal
                Holidays

            
	
              Section
                10.12.

            	
              GOVERNING
                LAW

            
	
              Section
                10.13.

            	
              Counterparts

            
	
              Section
                10.14.

            	
              Recording
                of Indenture

            
	
              Section
                10.15.

            	
              Issuer
                Obligation

            
	
              Section
                10.16.

            	
              No
                Petition

            
	
              Section
                10.17.

            	
              Inspection

            
	
              Section
                10.18.

            	
              No
                Recourse to Owner Trustee

            
	
              Section
                10.19.

            	
              Proofs
                of Claim

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBITS

    

    
      	
              Exhibit
                A-1

            	
              Form
                of Class AV-1 Note

            
	
              Exhibit
                A-2

            	
              Form
                of Class AF-2 Note

            
	
              Exhibit
                A-3

            	
              Form
                of Class AF-3 Note

            
	
              Exhibit
                A-4

            	
              Form
                of Class AF-4 Note

            
	
              Exhibit
                A-5

            	
              Form
                of Class AF-5 Note

            
	
              Exhibit
                A-6

            	
              Form
                of Class AF-6 Note

            
	
              Exhibit
                A-7

            	
              Form
                of Class M-1 Note

            
	
              Exhibit
                A-8

            	
              Form
                of Class M-2 Note

            
	
              Exhibit
                A-9

            	
              Form
                of Class M-3 Note

            
	
              Exhibit
                A-10

            	
              Form
                of Class M-4 Note

            
	
              Exhibit
                A-11

            	
              Form
                of Class M-5 Note

            
	
              Exhibit
                A-12

            	
              Form
                of Class M-6 Note

            
	
              Exhibit
                B

            	
              Mortgage
                Loan Schedule

            
	
              Exhibit
                C-1

            	
              Form
                of Indenture Trustee’s Initial Certification

            
	
              Exhibit
                C-2

            	
              Form
                of Indenture Trustee’s Final Certification

            
	
              Exhibit
                D

            	
              Reserved

            
	
              Appendix
                A

            	
              Definitions

            

    

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    This
      Indenture, dated as of June 22, 2006, is entered into between New Century
      Alternative Mortgage Loan Trust 2006-ALT1, a Delaware statutory trust, as Issuer
      (the “Issuer”), and Deutsche Bank National Trust Company, a national banking
      association, as Indenture Trustee (the “Indenture Trustee”).

     

    WITNESSETH
      THAT:

     

    Each
      party hereto agrees as follows for the benefit of the other party and for the
      equal and ratable benefit of the Holders of the Issuer’s Asset-Backed Notes,
      Series 2006-ALT1 (the “Notes”).

     

    GRANTING
      CLAUSE

     

    The
      Issuer hereby Grants to the Indenture Trustee at the Closing Date, as trustee
      for the benefit of the Holders of the Notes, all of the Issuer’s right, title
      and interest in and to whether now existing or hereafter created by (a) the
      Mortgage Loans, Qualified Substitute Mortgage Loans and the proceeds thereof
      and
      all rights under the Related Documents; (b) all funds on deposit from time
      to
      time in the Collection Account allocable to the Mortgage Loans excluding any
      investment income from such funds; (c) all funds on deposit from time to time
      in
      the Payment Account and in all proceeds thereof; (d) all rights under (i) the
      Mortgage Loan Purchase Agreement as assigned to the Issuer, (ii) the Servicing
      Agreement and (iii) any title, hazard and primary insurance policies with
      respect to the Mortgaged Properties; (e) all present and future claims, demands,
      causes 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 and all payments on or under, and all
      proceeds of every kind and nature whatsoever in the conversion thereof,
      voluntary or involuntary, into cash or other liquid property, all cash proceeds,
      accounts, accounts receivable, notes, drafts, acceptances, checks, deposit
      accounts, 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 and (f) all other property of the Issuer (collectively, the “Trust
      Estate” or the “Collateral”).

     

    The
      foregoing Grant is made in trust to secure the payment of principal of and
      interest on, and any other amounts owing in respect of, the Notes, equally
      and
      ratably without prejudice, priority or distinction, and to secure compliance
      with the provisions of this Indenture, all as provided in this
      Indenture.

     

    The
      Indenture Trustee, as trustee on behalf of the Holders of the Notes,
      acknowledges such Grant, accepts the trust under this Indenture in accordance
      with the provisions hereof and agrees to perform its duties as Indenture Trustee
      as required herein.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01.  Definitions.
      For all
      purposes of this Indenture, except as otherwise expressly provided herein or
      unless the context otherwise requires, capitalized terms not otherwise defined
      herein shall have the meanings assigned to such terms in the Definitions
      attached hereto as Appendix A which is incorporated by reference herein. All
      other capitalized terms used herein shall have the meanings specified
      herein.

     

    Section
      1.02.  Incorporation
      by Reference of Trust Indenture Act.
      Whenever this Indenture refers to a provision of the Trust Indenture Act (the
      “TIA”), the provision is incorporated by reference in and made a part of this
      Indenture. The following TIA terms used in this Indenture have the following
      meanings:

     

    “Commission”
      means the Securities and Exchange Commission.

     

    “indenture
      securities” means the Notes.

     

    “indenture
      security holder” means a Noteholder.

     

    “indenture
      to be qualified” means this Indenture.

     

    “indenture
      trustee” or “institutional trustee” means the Indenture Trustee.

     

    “obligor”
      on the indenture securities means the Issuer and any other obligor on the
      indenture securities.

     

    All
      other
      TIA terms used in this Indenture that are defined by the TIA, defined by TIA
      reference to another statute or defined by Commission rules and have the
      meanings assigned to them by such definitions.

     

    Section
      1.03.  Rules
      of Construction.
      Unless
      the context otherwise requires:

     

    (i) a
      term
      has the meaning assigned to it;

     

    (ii) an
      accounting term not otherwise defined has the meaning assigned to it in
      accordance with generally accepted accounting principles as in effect from
      time
      to time;

     

    (iii) “or”
is
      not exclusive;

     

    (iv) “including”
      means including without limitation;

     

    (v) words
      in
      the singular include the plural and words in the plural include the singular;
      and

     

    (vi) 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

    ORIGINAL
      ISSUANCE OF THE NOTES

     

    Section
      2.01.  Form.
      The
      Class A Notes and the Mezzanine Notes, together with the Indenture Trustee’s
      certificate of authentication, shall be in substantially the form set forth
      in
      Exhibits A-1 through A-12 to this Indenture, respectively, with such appropriate
      insertions, omissions, substitutions and other variations as are required or
      permitted by this Indenture.

     

    The
      Notes
      shall be typewritten, printed, lithographed or engraved or produced by any
      combination of these methods (with or without steel engraved
      borders).

     

    The
      terms
      of the Notes set forth in Exhibits A-1 through A-12 to this Indenture are part
      of the terms of this Indenture.

     

    Section
      2.02.  Execution,
      Authentication and Delivery.  The
      Notes shall be executed on behalf of the Issuer by any of its Authorized
      Officers. The signature of any such Authorized Officer on the Notes may be
      manual or facsimile.

     

    Notes
      bearing the manual or facsimile signature of individuals who were at any time
      Authorized Officers of the Issuer shall bind the Issuer, notwithstanding that
      such individuals or any of them have ceased to hold such offices prior to the
      authentication and delivery of such Notes or did not hold such offices at the
      date of such Notes.

     

    The
      Indenture Trustee shall upon Issuer Request authenticate and deliver the Class
      A
      Notes and the Mezzanine Notes for original issue in an aggregate initial
      principal amount of $511,373,000. The
      Classes of Notes shall have the following Initial Note Balances:

     

    
      	
              Class

            	 	
              Initial
                Note Balance

            
	
              AV-1

            	 	
              $

            	
              176,827,000

            
	
              AF-2

            	 	
              $

            	
              49,143,000

            
	
              AF-3

            	 	
              $

            	
              74,436,000

            
	
              AF-4

            	 	
              $

            	
              77,025,000

            
	
              AF-5

            	 	
              $

            	
              64,489,000

            
	
              AF-6

            	 	
              $

            	
              49,102,000

            
	
              M-1

            	 	
              $

            	
              7,301,000

            
	
              M-2

            	 	
              $

            	
              2,610,000

            
	
              M-3

            	 	
              $

            	
              2,610,000

            
	
              M-4

            	 	
              $

            	
              2,610,000

            
	
              M-5

            	 	
              $

            	
              2,610,000

            
	
              M-6

            	 	
              $

            	
              2,610,000

            

    

     

    Each
      of
      the Notes shall be dated the date of its authentication. The Notes shall be
      issuable as registered Notes and the Notes shall be issuable in the minimum
      initial Note Balances of $25,000 and in integral multiples of $1 in excess
      thereof.

     

    No
      Note
      shall be entitled to any benefit under this Indenture or be valid or obligatory
      for any purpose, unless there appears on such Note a certificate of
      authentication substantially in the form provided for herein executed by the
      Indenture Trustee by the manual signature of one of its authorized signatories,
      and such certificate upon any Note shall be conclusive evidence, and the only
      evidence, that such Note has been duly authenticated and delivered
      hereunder.

     

    Section
      2.03.  Acceptance
      of Mortgage Loans by Indenture Trustee.

     

    (a)  The
      Indenture Trustee acknowledges receipt of, subject to the exceptions it notes
      pursuant to the procedures described below, the documents (or certified copies
      thereof) referred to in Section 2.1(b) of the Mortgage Loan Purchase Agreement,
      and declares that it holds and will continue to hold those documents and any
      amendments, replacements or supplements thereto and all other assets of the
      Trust Estate as Indenture Trustee in trust for the use and benefit of all
      present and future Holders of the Notes.

     

    The
      parties hereto understand and agree that it is not intended that any Mortgage
      Loan be included in the Trust that is a “High-Cost Home Loan” as defined by the
      Homeownership and Equity Protection Act of 1994 or any other applicable federal,
      state and local predatory or abusive lending laws.

     

    The
      Indenture Trustee agrees, for the benefit of the Noteholders, to review each
      Mortgage File on or before the Closing Date and to certify in substantially
      the
      form attached hereto as Exhibit C-1 (the “Initial Certification”) that, as to
      each Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
      Loan specifically identified in the exception report annexed thereto as not
      being covered by such certification), (i) all documents constituting part of
      such Mortgage File (other than such documents described in Section 2.1(b)(v)
      of
      the Mortgage Loan Purchase Agreement) required to be delivered to it pursuant
      to
      the Mortgage Loan Purchase Agreement are in its possession, (ii) such documents
      have been reviewed by it and appear regular on their face and relate to such
      Mortgage Loan and (iii) based on its examination and only as to the foregoing,
      the information set forth in the Mortgage Loan Schedule that corresponds to
      items (i), (ii), (x), (xi) and (xiv) of the definition of “Mortgage Loan
      Schedule” accurately reflects information set forth in the Mortgage File. It is
      herein acknowledged that, in conducting such review, the Indenture Trustee
      was
      under no duty or obligation (i) to inspect, review or examine any such
      documents, instruments, certificates or other papers to determine whether they
      are genuine, enforceable, or appropriate for the represented purpose or whether
      they have actually been recorded or that they are other than what they purport
      to be on their face or (ii) to determine whether any Mortgage File should
      include any of the documents specified in clause (v) of Section 2.1(b) of the
      Mortgage Loan Purchase Agreement. After delivery of the Initial Certification,
      the Indenture Trustee will send a monthly report noting any Mortgage Files
      that
      are not complete to the Servicer. The Indenture Trustee shall send such reports
      until all Mortgage Files are complete.

     

    Prior
      to
      the first anniversary date of this Indenture the Indenture Trustee shall deliver
      to the Depositor and the Servicer a final certification in the form annexed
      hereto as Exhibit C-2 evidencing the completeness of the Mortgage Files, with
      any applicable exceptions noted thereon, and the Servicer shall forward a copy
      thereof to any Sub-Servicer.

     

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

     

    (b)  Upon
      deposit of the Purchase Price in the Payment Account, the Indenture Trustee
      shall release and deliver to NC Capital (at the expense of the Servicer) the
      related Mortgage File and shall execute and deliver all instruments of transfer
      or assignment, without recourse, furnished to it by NC Capital as are necessary
      to vest in NC Capital title to and rights under the related Mortgage Loan.
      Such
      purchase shall be deemed to have occurred on the date on which certification
      of
      the deposit of the Purchase Price in the Payment Account was received by the
      Indenture Trustee.

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    ARTICLE
      III

    COVENANTS

     

    Section
      3.01.  Collection
      of Payments with respect to the Mortgage Loans.
      The
      Indenture Trustee shall establish and maintain an Eligible Account (the “Payment
      Account”) in which the Indenture Trustee shall deposit, on the same day as it is
      received from the Servicer, each remittance received by the Indenture Trustee
      with respect to the Mortgage Loans. The Indenture Trustee shall make all
      payments of principal of and interest on the Notes, subject to Section 3.03
      as
      provided in Section 3.05 herein from monies on deposit in the Payment
      Account.

     

    Section
      3.02.  Maintenance
      of Office or Agency.
      The
      Issuer will maintain an office or agency where, subject to satisfaction of
      conditions set forth herein, Notes may be surrendered for registration of
      transfer or exchange, and where notices and demands to or upon the Issuer in
      respect of the Notes and this Indenture may be served. The Issuer hereby
      initially appoints the Indenture Trustee to serve as its agent for the foregoing
      purposes. If at any time the Issuer shall fail to maintain any such office
      or
      agency or shall fail to furnish the Indenture Trustee with the address thereof,
      such surrenders may be made at the office of the Indenture Trustee’s agent
      located at DB Services Tennessee, 648 Grassmere Park Road, Nashville, Tennessee
      37211-3658, Attention: Transfer Unit, and notices and demands may be made or
      served at the Corporate Trust Office.

     

    Section
      3.03.  Money
      for Payments To Be Held in Trust; Paying Agent.
      As
      provided in Section 3.01, all payments of amounts due and payable with respect
      to any Notes that are to be made from amounts withdrawn from the Payment Account
      pursuant to Section 3.01 shall be made on behalf of the Issuer by the Indenture
      Trustee or by the Paying Agent, and no amounts so withdrawn from the Payment
      Account for payments of Notes shall be paid over to the Issuer except as
      provided in this Section 3.03. The Issuer hereby appoints the Indenture Trustee
      as its Paying Agent.

     

    The
      Issuer will cause each Paying Agent other than the Indenture Trustee to execute
      and deliver to the Indenture Trustee an instrument in which such Paying Agent
      shall agree with the Indenture Trustee (and if the Indenture Trustee acts as
      Paying Agent it hereby so agrees), subject to the provisions of this Section
      3.03, that such Paying Agent will:

     

    (i)  hold
      all
      sums held by it for the payment of amounts due with respect to the Notes 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 and pay such
      sums to such Persons as herein provided;

     

    (ii)  give
      the
      Indenture Trustee notice of any default by the Issuer of which it has actual
      knowledge in the making of any payment required to be made with respect to
      the
      Notes;

     

    (iii)  at
      any
      time during the continuance of any such default, upon the written request of
      the
      Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held
      in
      trust by such Paying Agent;

     

    (iv)  immediately
      resign as Paying Agent and forthwith pay to the Indenture Trustee all sums
      held
      by it in trust for the payment of Notes if at any time it ceases to meet the
      standards required to be met by a 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 any Notes of any applicable withholding taxes imposed
      thereon and with respect to any applicable reporting requirements in connection
      therewith; and

     

    (vi)  not
      commence a bankruptcy proceeding against the Issuer in connection with this
      Indenture.

     

    The
      Issuer may at any time, for the purpose of obtaining the satisfaction and
      discharge of this Indenture or for any other purpose, by Issuer Request direct
      any Paying Agent to pay to the Indenture Trustee all sums held in trust by
      such
      Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts
      as those upon which the sums were held by such Paying Agent; and upon such
      payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall
      be
      released from all further liability with respect to such money.

     

    Subject
      to applicable laws with respect to escheat of funds, any money held by the
      Indenture Trustee or any Paying Agent in trust for the payment of any amount
      due
      with respect to any Note and remaining unclaimed for one year after such amount
      has become due and payable shall be discharged from such trust and be paid
      to
      the Issuer on Issuer Request; and the Holder of such Note shall thereafter,
      as
      an unsecured general creditor, look only to the Issuer for payment thereof
      (but
      only to the extent of the amounts so paid to the Issuer), and all liability
      of
      the Indenture Trustee or such Paying Agent with respect to such trust money
      shall thereupon cease; provided,
      however,
      that the
      Indenture Trustee or such Paying Agent, before being required to make any such
      repayment, shall at the expense and direction of the Issuer cause to be
      published once, in an Authorized Newspaper published in the English language,
      notice that such money remains unclaimed and that, after a date specified
      therein which shall not be less than 30 days from the date of such publication,
      any unclaimed balance of such money then remaining will be repaid to the Issuer.
      The Indenture Trustee may also adopt and employ, at the expense and direction
      of
      the Issuer, any other reasonable means of notification of such repayment
      (including, but not limited to, mailing notice of such repayment to Holders
      whose Notes have been called but have not been surrendered for redemption or
      whose right to or interest in monies due and payable but not claimed is
      determinable from the records of the Indenture Trustee or of any Paying Agent,
      at the last address of record for each such Holder).

     

    Section
      3.04.  Existence.
      The
      Issuer will keep in full effect its existence, rights and franchises as a
      statutory trust under the laws of the State of Delaware (unless it becomes,
      or
      any successor Issuer hereunder is or becomes, organized under the laws of any
      other state or of the United States of America, in which case the Issuer will
      keep in full effect its existence, rights and franchises under the laws of
      such
      other jurisdiction) and will obtain and preserve its qualification to do
      business in each jurisdiction in which such qualification is or shall be
      necessary to protect the validity and enforceability of this Indenture, the
      Notes, the Mortgage Loans and each other instrument or agreement included in
      the
      Trust Estate.

     

    Section
      3.05.  Payment
      of Principal and Interest.

     

    (a)  On
      each
      Payment Date from amounts on deposit in the Payment Account in accordance with
      Section 8.02 hereof, the Indenture Trustee shall pay to the Persons specified
      below, to the extent provided therein, the Available Payment Amount for such
      Payment Date.

     

    (b)  On
      each
      Payment Date, the Indenture Trustee shall withdraw from the Payment Account
      an
      amount equal to the Interest Remittance Amount and pay to the Noteholders the
      following amounts, in the following order of priority:

     

    (i)  concurrently,
      to the Holders of each Class of Class A Notes, on a pro
      rata basis
      based on the entitlement of each such Class, an amount equal to the Senior
      Interest Payment Amount allocable to each such Class of Notes; and

     

    (ii)  sequentially,
      to the Holders of the Class M-1 Notes, the Class M-2 Notes, the Class M-3 Notes,
      the Class M-4 Notes, the Class M-5 Notes and the Class M-6 Notes in that order,
      in an amount equal to the Interest Payment Amount allocable to each such Class
      of Notes.

     

    (c)  (I)
      On
      each Payment Date (a) prior to the Stepdown Date or (b) on which a Trigger
      Event
      is in effect, the Principal Payment Amount shall be paid in the following order
      of priority:

     

    (i)  to
      the
      Holders of the Classes of Class A Notes (allocated among the Classes of Class
      A
      Notes in the priority described below), until the Note Balances thereof have
      been reduced to zero; and

     

    (ii)  sequentially,
      to the Holders of the Class M-1 Notes, the Class M-2 Notes, the Class M-3 Notes,
      the Class M-4 Notes, the Class M-5 Notes and the Class M-6 Notes in that order,
      until the respective Note Balance of each such Class has been reduced to
      zero.

     

    (II) On
      each
      Payment Date (a) on or after the Stepdown Date and (b) on which a Trigger Event
      is not in effect, the Principal Payment Amount shall be paid in the following
      order of priority;

     

    (i)  to
      the
      Holders of the Classes of Class A Notes (allocated among the Classes of Class
      A
      Notes in the priority described below), the Senior Principal Payment Amount,
      until the Note Balances thereof have been reduced to zero; 

     

    (ii)  to
      the
      holders of the Class M-1 Notes, the Class M-1 Principal Payment Amount until
      the
      Note Balance thereof has been reduced to zero;

     

    (iii)  to
      the
      holders of the Class M-2 Notes, the Class M-2 Principal Payment Amount until
      the
      Note Balance thereof has been reduced to zero;

     

    (iv)  to
      the
      holders of the Class M-3 Notes, the Class M-3 Principal Payment Amount until
      the
      Note Balance thereof has been reduced to zero;

     

    (v)  to
      the
      holders of the Class M-4 Notes, the Class M-4 Principal Payment Amount until
      the
      Note Balance thereof has been reduced to zero;

     

    (vi)  to
      the
      holders of the Class M-5 Notes, the Class M-5 Principal Payment Amount until
      the
      Note Balance thereof has been reduced to zero; and

     

    (vii)  to
      the
      holders of the Class M-6 Notes, the Class M-6 Principal Payment Amount until
      the
      Note Balance thereof has been reduced to zero.

     

    With
      respect to the Class A Notes, all principal payments will be paid sequentially,
      first, to the Class AF-6 Notes, the Lockout Payment Percentage of such principal
      payments, until the Note Balance of the Class AF-6 Notes has been reduced to
      zero; second, to the Class AV-1 Notes, until the Note Balance of the Class
      AV-1
      Notes has been reduced to zero; third, to the Class AF-2 Notes, until the Note
      Balance of the Class AF-2 Notes has been reduced to zero; fourth, to the Class
      AF-3 Notes, until the Note Balance of the Class AF-3 Notes has been reduced
      to
      zero; fifth, to the Class AF-4 Notes, until the Note Balance of the Class AF-4
      Notes has been reduced to zero; sixth, to the Class AF-5 Notes, until the Note
      Balance of the Class AF-5 Notes has been reduced to zero and seventh, to the
      Class AF-6 Notes, until the Note Balance of the Class AF-6 Notes has been
      reduced to zero; provided, however, on any Payment Date on which the aggregate
      Note Balance of the Mezzanine Notes and the Overcollateralization Amount has
      been reduced to zero, principal payments will be paid, concurrently, to the
      Class A Notes, on a pro
      rata
      basis
      based on the Note Balance of each such Class, until their respective Note
      Balances have been reduced to zero.

     

    (d)  On
      each
      Payment Date, the Net Monthly Excess Cashflow shall be paid by the Indenture
      Trustee as follows: 

     

    (i)  to
      the
      Holders of the Class or Classes of Notes then entitled to receive payments
      in
      respect of principal, as part of the Principal Payment Amount in an amount
      equal
      to the Overcollateralization Increase Amount for the Notes, applied to reduce
      the Note Balance of such Notes until the aggregate Note Balance of such Notes
      is
      reduced to zero;

     

    (ii)  sequentially,
      to the Holders of the Class M-1 Notes, the Class M-2 Notes, the Class M-3 Notes,
      the Class M-4 Notes, the Class M-5 Notes and the Class M-6 Notes, in that order,
      first, in an amount equal to the Interest Carry Forward Amount allocable to
      each
      such Class of Notes and second, in an amount equal to the Allocated Realized
      Loss Amount allocable to each such Class of Notes;

     

    (iii)  to
      the
      Holders of the Class A Notes and Mezzanine Notes (in the priority described
      below), any Basis Risk Shortfalls for such Payment Date;

     

    (iv)  sequentially,
      to the Holders of the Class M-1 Notes, the Class M-2 Notes, the Class M-3 Notes,
      the Class M-4 Notes, the Class M-5 Notes and the Class M-6 Notes, in that order,
      in an amount equal to the Deferred Interest allocated to each such Class of
      Notes; and

     

    (v)  to
      the
      Owner Trustee, any fees, expenses and indemnities not otherwise paid and then,
      to the Holders of the Certificates, any remaining amounts.

     

    On
      each
      Payment Date, all amounts representing Prepayment Charges in respect of the
      Mortgage Loans received during the related Prepayment Period that were not
      otherwise used to absorb Realized Losses as set forth in Section 3.29 shall
      be
      withdrawn from the Payment Account and distributed by the Indenture Trustee
      to
      the Holders of the Certificates and shall not be available for payment to the
      Holders of any Class of Notes.

     

    Following
      the foregoing payments, an amount equal to the amount of Subsequent Recoveries
      deposited into the Collection Account pursuant to Section 3.10 of the Servicing
      Agreement shall be applied to increase the Note Balance of the Class of Notes
      with the Highest Priority up to the extent of such Realized Losses previously
      unreimbursed to that Class of Notes pursuant to Section 3.29. An amount equal
      to
      the amount of any remaining Subsequent Recoveries shall be applied to increase
      the Note Balance of the Class of Notes with the next Highest Priority, up to
      the
      amount of such Realized Losses previously allocated to that Class of Notes
      pursuant to Section 3.29. Holders of such Notes will not be entitled to any
      distribution in respect of interest on the amount of such increases for any
      Interest Accrual Period preceding the Payment Date on which such increase
      occurs. Any such increases shall be applied to the Note Balance of each Note
      of
      such Class in accordance with its respective Percentage Interest.

     

    (e)  On
      each
      Payment Date, after making the distributions of the Available Payment Amount
      as
      set forth above, the Indenture Trustee will determine the amount of any Basis
      Risk Shortfalls with respect to the Class A Notes and Mezzanine Notes for such
      Payment Date and pay such amount to the extent of the applicable Basis Risk
      Shortfall in the following order of priority:

     

    (i)  concurrently
      to each Class of Class A Notes, on a pro
      rata
      basis
      based on the Basis Risk Shortfall for each such Class, until the unpaid Basis
      Risk Shortfall for each such class has been reduced to zero; and

     

    (ii)  sequentially,
      to the Class M-1 Notes, the Class M-2 Notes, the Class M-3 Notes, the Class
      M-4
      Notes, the Class M-5 Notes and the Class M-6 Notes, in that order, until the
      unpaid Basis Risk Shortfall for each such class has been reduced to
      zero.

     

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

     

    (g)  On
      each
      Payment Date, the Certificate Paying Agent shall deposit in the Certificate
      Distribution Account all amounts it received pursuant to this Section 3.05
      for
      the purpose of distributing such funds pursuant to the Trust
      Agreement.

     

    (h)  Any
      installment of interest or principal, if any, payable on any Note that is
      punctually paid or duly provided for by the Issuer on the applicable Payment
      Date shall, if such Holder shall have so requested at least five Business Days
      prior to the related Record Date, be paid to each Holder of record on the
      preceding Record Date, by wire transfer to an account specified in writing
      by
      such Holder reasonably satisfactory to the Indenture Trustee as of the preceding
      Record Date or in all other cases or if no such instructions have been delivered
      to the Indenture Trustee, by check to such Noteholder mailed to such Holder’s
      address as it appears in the Note Register in the amount required to be paid
      to
      such Holder on such Payment Date pursuant to such Holder’s Notes; provided,
      however,
      that
      the Indenture Trustee shall not pay to such Holders any amount required to
      be
      withheld from a payment to such Holder by the Code.

     

    (i)  The
      principal of each Note shall be due and payable in full on the Final Stated
      Maturity Date for such Note as provided in the forms of Notes set forth in
      Exhibits A-1 through A-12 to this Indenture. All principal payments on the
      Notes
      shall be made to the Noteholders entitled thereto in accordance with the
      Percentage Interests represented by such Notes. The Indenture Trustee shall
      notify the Person in whose name a Note is registered at the close of business
      on
      the Record Date preceding the Final Stated Maturity Date or other final Payment
      Date (including any final Payment Date resulting from any redemption pursuant
      to
      Section 8.07 hereof). Such notice shall to the extent practicable be mailed
      no
      later than five Business Days prior to such Final Stated Maturity Date or other
      final Payment Date and shall specify that payment of the principal amount and
      any interest due with respect to such Note at the Final Stated Maturity Date
      or
      other final Payment Date will be payable only upon presentation and surrender
      of
      such Note and shall specify the place where such Note may be presented and
      surrendered for such final payment. No interest shall accrue on the Notes on
      or
      after the Final Stated Maturity Date or any such other final Payment
      Date.

     

    Section
      3.06.  Protection
      of Trust Estate.

     

    (a)  The
      Issuer will from time to time prepare, execute and deliver all such supplements
      and amendments hereto and all such financing statements, continuation
      statements, instruments of further assurance and other instruments, and will
      take such other action necessary or advisable to:

     

    (i)  maintain
      or preserve the lien and security interest (and the priority thereof) of this
      Indenture or carry out more effectively the purposes hereof;

     

    (ii)  perfect,
      publish notice of or protect the validity of any Grant made or to be made by
      this Indenture;

     

    (iii)  cause
      the
      Issuer or Servicer to enforce any of the rights to the Mortgage Loans;
      or

     

    (iv)  preserve
      and defend title to the Trust Estate and the rights of the Indenture Trustee
      and
      the Noteholders in such Trust Estate against the claims of all persons and
      parties.

     

    (b)  Except
      as
      otherwise provided in this Indenture, the Indenture Trustee shall not remove
      any
      portion of the Trust Estate that consists of money or is evidenced by an
      instrument, certificate or other writing from the jurisdiction in which it
      was
      held at the date of the most recent Opinion of Counsel delivered pursuant to
      Section 3.07 hereof (or from the jurisdiction in which it was held as described
      in the Opinion of Counsel delivered on the Closing Date pursuant to Section
      3.07(a) hereof, or if no Opinion of Counsel has yet been delivered pursuant
      to
      Section 3.07(b) hereof, unless the Indenture Trustee shall have first received
      an Opinion of Counsel to the effect that the lien and security interest created
      by this Indenture with respect to such property will continue to be maintained
      after giving effect to such action or actions).

     

    The
      Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact
      to
      sign any financing statement, continuation statement or other instrument
      required to be signed pursuant to this Section 3.06 upon the Issuer’s
      preparation thereof and delivery to the Indenture Trustee.

     

    Section
      3.07.  Opinions
      as to Trust Estate.

     

    (a) On
      the
      Closing Date, the Issuer shall furnish to the Indenture Trustee and the Owner
      Trustee an Opinion of Counsel either stating that, in the opinion of such
      counsel, such action has been taken with respect to the recording and filing
      of
      this Indenture, any indentures supplemental hereto, and any other requisite
      documents, and with respect to the execution and filing of any financing
      statements and continuation statements, as are necessary to perfect and make
      effective the lien and first priority security interest in the Collateral and
      reciting the details of such action, or stating that, in the opinion of such
      counsel, no such action is necessary to make such lien and first priority
      security interest effective.

     

    (b) On
      or
      before April 15th
      in each
      calendar year, beginning in 2007, the Issuer shall furnish to the Indenture
      Trustee an Opinion of Counsel at the expense of the Issuer either stating that,
      in the opinion of such counsel, such action has been taken with respect to
      the
      recording, filing, re-recording and refiling of this Indenture, any indentures
      supplemental hereto and any other requisite documents and with respect to the
      execution and filing of any financing statements and continuation statements
      as
      is necessary to maintain the lien and first priority security interest in the
      Collateral and reciting the details of such action or stating that in the
      opinion of such counsel no such action is necessary to maintain such lien and
      security interest. Such Opinion of Counsel shall also describe the recording,
      filing, re-recording and refiling of this Indenture, any indentures supplemental
      hereto and any other requisite documents and the execution and filing of any
      financing statements and continuation statements that will, in the opinion
      of
      such counsel, be required to maintain the lien and security interest in the
      Collateral until December 31st
      in the
      following calendar year.

     

    Section
      3.08.  Performance
      of Obligations.

     

    The
      Issuer will punctually perform and observe all of its obligations and agreements
      contained in this Indenture, the Basic Documents and in the instruments and
      agreements included in the Trust Estate.

     

    The
      Issuer may contract with other Persons to assist it in performing its duties
      under this Indenture, and any performance of such duties by a Person identified
      to the Indenture Trustee in an Officer’s Certificate of the Issuer shall be
      deemed to be action taken by the Issuer.

     

    The
      Issuer will not take any action or permit any action to be taken by others
      which
      would release any Person from any of such Person’s covenants or obligations
      under any of the documents relating to the Mortgage Loans or under any
      instrument included in the Trust Estate, or which would result in the amendment,
      hypothecation, subordination, termination or discharge of, or impair the
      validity or effectiveness of, any of the documents relating to the Mortgage
      Loans or any such instrument, except such actions as the Servicer is expressly
      permitted to take in the Servicing Agreement. The Indenture Trustee may exercise
      the rights of the Issuer to direct the actions of the Servicer pursuant to
      the
      Servicing Agreement.

     

    The
      Issuer may retain an administrator and may enter into contracts with other
      Persons for the performance of the Issuer’s obligations hereunder, and
      performance of such obligations by such Persons shall be deemed to be
      performance of such obligations by the Issuer.

     

    Section
      3.09.  Negative
      Covenants.  So
      long as any Notes are Outstanding, the Issuer shall not:

     

    (i)  except
      as
      expressly permitted by this Indenture, sell, transfer, exchange or otherwise
      dispose of the Trust Estate, unless directed to do so by the Indenture
      Trustee;

     

    (ii)  claim
      any
      credit on, or make any deduction from the principal or interest payable in
      respect of, the Notes (other than amounts properly withheld from such payments
      under the Code) or assert any claim against any present or former Noteholder
      by
      reason of the payment of the taxes levied or assessed upon any part of the
      Trust
      Estate;

     

    (iii)  (A)
      permit the validity or effectiveness of this Indenture to be impaired, or permit
      the lien of this Indenture to be amended, hypothecated, subordinated, terminated
      or discharged, or permit any Person to be released from any covenants or
      obligations with respect to the Notes under this Indenture except as may be
      expressly permitted hereby, (B) permit any lien, charge, excise, claim, security
      interest, mortgage or other encumbrance (other than the lien of this Indenture)
      to be created on or extend to or otherwise arise upon or burden the Trust Estate
      or any part thereof or any interest therein or the proceeds thereof or (C)
      permit the lien of this Indenture not to constitute a valid first priority
      security interest in the Trust Estate; or

     

    (iv)  waive
      or
      impair, or fail to assert rights under, the Mortgage Loans, or impair or cause
      to be impaired the Issuer’s interest in the Mortgage Loans, the Mortgage Loan
      Purchase Agreement or in any Basic Document, if any such action would materially
      and adversely affect the interests of the Noteholders.

     

    Section
      3.10.  [Reserved.]

     

    Section
      3.11.  [Reserved.]

     

    Section
      3.12.  Representations
      and Warranties Concerning the Mortgage Loans.
      The
      Indenture Trustee, as pledgee of the Mortgage Loans, has the benefit of the
      representations and warranties made by NC Capital in the Mortgage Loan Purchase
      Agreement concerning NC Capital, the Seller and the Mortgage Loans to the same
      extent as though such representations and warranties were made directly to
      the
      Indenture Trustee. If a Responsible Officer of the Indenture Trustee has actual
      knowledge of any breach of any representation or warranty made by NC Capital
      in
      the Mortgage Loan Purchase Agreement, the Indenture Trustee shall promptly
      notify NC Capital of such finding and NC Capital’s obligation to cure such
      defect or repurchase or substitute for the related Mortgage Loan.

     

    Section
      3.13.  Amendments
      to Servicing Agreement.
      The
      Issuer covenants with the Indenture Trustee that it will not enter into any
      amendment or supplement to the Servicing Agreement without the prior written
      consent of the Indenture Trustee.

     

    Section
      3.14.  Servicer
      as Agent and Bailee of the Indenture Trustee.
      Solely
      for purposes of perfection under Section 9-305 of the UCC or other similar
      applicable law, rule or regulation of the state in which such property is held
      by the Servicer, the Issuer and the Indenture Trustee hereby acknowledge that
      the Servicer is acting as bailee of the Indenture Trustee in holding amounts
      on
      deposit in the Collection Account, as well as its bailee in holding any Related
      Documents released to the Servicer, and any other items constituting a part
      of
      the Trust Estate which from time to time come into the possession of the
      Servicer. It is intended that, by the Servicer’s acceptance of such bailee
      arrangement, the Indenture Trustee, as a secured party of the Mortgage Loans,
      will be deemed to have possession of such Related Documents, such monies and
      such other items for purposes of Section 9-305 of the UCC of the state in which
      such property is held by the Servicer. The Indenture Trustee shall not be liable
      with respect to such documents, monies or items while in possession of the
      Servicer.

     

    Section
      3.15.  Investment
      Company Act.
      The
      Issuer shall not become an “investment company” or be under the “control” of an
“investment company” as such terms are defined in the Investment Company Act of
      1940, as amended (or any successor or amendatory statute), and the rules and
      regulations thereunder (taking into account not only the general definition
      of
      the term “investment company” but also any available exceptions to such general
      definition); provided,
      however,
      that the
      Issuer shall be in compliance with this Section 3.15 if it shall have obtained
      an order exempting it from regulation as an “investment company” so long as it
      is in compliance with the conditions imposed in such order.

     

    Section
      3.16.  Issuer
      May Consolidate, etc.

     

    (a)  The
      Issuer shall not consolidate or merge with or into any other Person,
      unless:

     

    (i)  the
      Person (if other than the Issuer) formed by or surviving such consolidation
      or
      merger shall be a Person organized and existing under the laws of the United
      States of America or any state or the District of Columbia and shall expressly
      assume, by an indenture supplemental hereto, executed and delivered to the
      Indenture Trustee, in form reasonably satisfactory to the Indenture Trustee,
      the
      due and punctual payment of the principal of and interest on all Notes, and
      all
      other amounts payable to the Indenture Trustee, the payment to the Certificate
      Paying Agent of all amounts due to the Certificateholders, and the performance
      or observance of every agreement and covenant of this Indenture on the part
      of
      the Issuer to be performed or observed, all as provided herein;

     

    (ii)  immediately
      after giving effect to such transaction, no Event of Default shall have occurred
      and be continuing;

     

    (iii)  the
      Rating Agencies shall have notified the Issuer that such transaction shall
      not
      cause the rating of the Notes to be reduced, suspended or withdrawn or to be
      considered by either Rating Agency to be below investment grade;

     

    (iv)  the
      Issuer shall have received an Opinion of Counsel (and shall have delivered
      a
      copy thereof to the Indenture Trustee) to the effect that such transaction
      will
      not (A) result in a “substantial modification” of the Notes under Treasury
      Regulation section 1.1001-3, or adversely affect the status of the Notes as
      indebtedness for federal income tax purposes, or (B) if 100% of the Certificates
      are not owned by the Seller, cause the Trust to be subject to an entity level
      tax for federal income tax purposes;

     

    (v)  any
      action that is necessary to maintain the lien and security interest created
      by
      this Indenture shall have been taken; and

     

    (vi)  the
      Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate
      and an Opinion of Counsel each stating that such consolidation or merger and
      such supplemental indenture comply with this Article III and that all conditions
      precedent herein provided for or relating to such transaction have been complied
      with (including any filing required by the Exchange Act), and that such
      supplemental indenture is enforceable.

     

    (b)  The
      Issuer shall not convey or transfer any of its properties or assets, including
      those included in the Trust Estate, to any Person, unless:

     

    (i)  the
      Person that acquires by conveyance or transfer the properties and assets of the
      Issuer, the conveyance or transfer of which is hereby restricted, shall (A)
      be a
      United States citizen or a Person organized and existing under the laws of
      the
      United States of America or any state thereof, (B) expressly assume, by an
      indenture supplemental hereto, executed and delivered to the Indenture Trustee,
      in form satisfactory to the Indenture Trustee, the due and punctual payment
      of
      the principal of and interest on all Notes and the performance or observance
      of
      every agreement and covenant of this Indenture on the part of the Issuer to
      be
      performed or observed, all as provided herein, (C) expressly agree by means
      of
      such supplemental indenture that all right, title and interest so conveyed
      or
      transferred shall be subject and subordinate to the rights of the Holders of
      the
      Notes, (D) unless otherwise provided in such supplemental indenture, expressly
      agree to indemnify, defend and hold harmless the Issuer and the Indenture
      Trustee against and from any loss, liability or expense arising under or related
      to this Indenture and the Notes and (E) expressly agree by means of such
      supplemental indenture that such Person (or if a group of Persons, then one
      specified Person) shall make all filings with the Commission (and any other
      appropriate Person) required by the Exchange Act in connection with the
      Notes;

     

    (ii)  immediately
      after giving effect to such transaction, no Default or Event of Default shall
      have occurred and be continuing;

     

    (iii)  the
      Rating Agencies shall have notified the Issuer that such transaction shall
      not
      cause the rating of the Notes to be reduced, suspended or
      withdrawn;

     

    (iv)  the
      Issuer shall have received an Opinion of Counsel (and shall have delivered
      a
      copy thereof to the Indenture Trustee) to the effect that such transaction
      will
      not (A) result in a “substantial modification” of the Notes under Treasury
      Regulation section 1.1001-3, or adversely affect the status of the Notes as
      indebtedness for federal income tax purposes, or (B) if 100% of the Certificates
      are not owned by the Seller, cause the Trust to be subject to an entity level
      tax for federal income tax purposes;

     

    (v)  any
      action that is necessary to maintain the lien and security interest created
      by
      this Indenture shall have been taken; and

     

    (vi)  the
      Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate
      and an Opinion of Counsel each stating that such conveyance or transfer and
      such
      supplemental indenture comply with this Article III and that all conditions
      precedent herein provided for relating to such transaction have been complied
      with (including any filing required by the Exchange Act).

     

    Section
      3.17.  Successor
      or Transferee.

     

    (a)  Upon
      any
      consolidation or merger of the Issuer in accordance with Section 3.16(a), the
      Person formed by or surviving such consolidation or merger (if other than the
      Issuer) shall succeed to, and be substituted for, and may exercise every right
      and power of, the Issuer under this Indenture with the same effect as if such
      Person had been named as the Issuer herein.

     

    (b)  Upon
      a
      conveyance or transfer of all the assets and properties of the Issuer pursuant
      to Section 3.16(b), the Issuer will be released from every covenant and
      agreement of this Indenture to be observed or performed on the part of the
      Issuer with respect to the Notes immediately upon the delivery of written notice
      to the Indenture Trustee of such conveyance or transfer.

     

    Section
      3.18.  No
      Other Business.
      The
      Issuer shall not engage in any business other than financing, purchasing, owning
      and selling and managing the Mortgage Loans and the issuance of the Notes and
      Certificates in the manner contemplated by this Indenture and the Basic
      Documents and all activities incidental thereto.

     

    Section
      3.19.  No
      Borrowing.
      The
      Issuer shall not issue, incur, assume, guarantee or otherwise become liable,
      directly or indirectly, for any indebtedness except for the Notes under this
      Indenture.

     

    Section
      3.20.  Guarantees,
      Loans, Advances and Other Liabilities.  Except
      as contemplated by this Indenture or the Basic Documents, the Issuer shall
      not
      make any loan or advance or credit to, or guarantee (directly or indirectly
      or
      by an instrument having the effect of assuring another’s payment or performance
      on any obligation or capability of so doing or otherwise), endorse or otherwise
      become contingently liable, directly or indirectly, in connection with the
      obligations, stocks or dividends of, or own, purchase, repurchase or acquire
      (or
      agree contingently to do so) any stock, obligations, assets or securities of,
      or
      any other interest in, or make any capital contribution to, any other
      Person.

     

    Section
      3.21.  Capital
      Expenditures.
      The
      Issuer shall not make any expenditure (by long-term or operating lease or
      otherwise) for capital assets (either realty or personalty).

     

    Section
      3.22.  Determination
      of Note Rate.
      On each
      Interest Determination Date, the Indenture Trustee shall determine One-Month
      LIBOR and the related Note Rate for each Class of Notes for the following
      Interest Accrual Period. The establishment of One-Month LIBOR on each Interest
      Determination Date by the Indenture Trustee and the Indenture Trustee’s
      calculation of the rate of interest applicable to each Class of Notes for the
      related Accrual Period shall (in the absence of manifest error) be final and
      binding.

     

    Section
      3.23.  Restricted
      Payments.
      The
      Issuer shall not, directly or indirectly, (i) pay any dividend or make any
      distribution (by reduction of capital or otherwise), whether in cash, property,
      securities or a combination thereof, to the Owner Trustee or any owner of a
      beneficial interest in the Issuer or otherwise with respect to any ownership
      or
      equity interest or security in or of the Issuer, (ii) redeem, purchase, retire
      or otherwise acquire for value any such ownership or equity interest or security
      or (iii) set aside or otherwise segregate any amounts for any such purpose;
      provided,
      however,
      that the
      Issuer may make, or cause to be made, (x) distributions and payments to the
      Owner Trustee, the Indenture Trustee, Noteholders and the Certificateholders
      as
      contemplated by, and to the extent funds are available for such purpose under
      this Indenture and the Trust Agreement and (y) payments to the Servicer pursuant
      to the terms of the Servicing Agreement. The Issuer will not, directly or
      indirectly, make payments to or distributions from the Collection Account except
      in accordance with this Indenture and the Basic Documents.

     

    Section
      3.24.  Notice
      of Events of Default.
      The
      Issuer shall give the Indenture Trustee and the Rating Agencies prompt written
      notice of each Event of Default hereunder and under the Trust
      Agreement.

     

    Section
      3.25.  Further
      Instruments and Acts.
      Upon
      request of the Indenture Trustee, the Issuer will execute and deliver such
      further instruments and do such further acts as may be reasonably necessary
      or
      proper to carry out more effectively the purpose of this Indenture.

     

    Section
      3.26.  Statements
      to Noteholders.
      On each
      Payment Date, the Indenture Trustee and the Certificate Registrar shall prepare
      and make available on the Indenture Trustee’s website,
      https://www.tss.db.com/invr (or deliver at the recipient’s option), to each
      Noteholder and Certificateholder the most recent statement prepared by the
      Indenture Trustee pursuant to Section 7.05 hereof.

     

    Section
      3.27.  [Reserved].

     

    Section
      3.28.  Certain
      Representations Regarding the Trust Estate.

     

    (a)  With
      respect to that portion of the Collateral described in clauses (a) through
      (d)
      of the definition of Trust Estate, the Issuer represents to the Indenture
      Trustee that:

     

    (i)  This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable UCC) in the Collateral in favor of the Indenture Trustee, which
      security interest is prior to all other liens, and is enforceable as such as
      against creditors of and purchasers from the Issuer.

     

    (ii)  The
      Collateral constitutes “deposit accounts” or “instruments,” as applicable,
      within the meaning of the applicable UCC.

     

    (iii)  The
      Issuer owns and has good and marketable title to the Collateral, free and clear
      of any lien, claim or encumbrance of any Person.

     

    (iv)  The
      Issuer has taken all steps necessary to cause the Indenture Trustee to become
      the account holder of the Collateral.

     

    (v)  Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, the Issuer has not pledged, assigned, sold, granted a security
      interest in, or otherwise conveyed any of the Collateral.

     

    (vi)  The
      Collateral is not in the name of any Person other than the Issuer or the
      Indenture Trustee. The Issuer has not consented to the bank maintaining the
      Collateral to comply with instructions of any Person other than the Indenture
      Trustee.

     

    (b)  With
      respect to that portion of the Collateral described in clause (e), the Issuer
      represents to the Indenture Trustee that:

     

    (i)  This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable UCC) in the Collateral in favor of the Indenture Trustee, which
      security interest is prior to all other liens, and is enforceable as such as
      against creditors of and purchasers from the Issuer.

     

    (ii)  The
      Collateral constitutes “general intangibles” within the meaning of the
      applicable UCC.

     

    (iii)  The
      Issuer owns and has good and marketable title to the Collateral, free and clear
      of any lien, claim or encumbrance of any Person.

     

    (iv)  Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, the Issuer has not pledged, assigned, sold, granted a security
      interest in, or otherwise conveyed any of the Collateral.

     

    (c)  With
      respect to any Collateral in which a security interest may be perfected by
      filing, the Issuer has not authorized the filing of, and is not aware of any
      financing statements against, the Issuer, that include a description of
      collateral covering such Collateral, other than any financing statement relating
      to the security interest granted to the Indenture Trustee hereunder or that
      has
      been terminated. The Issuer is not aware of any judgment or tax lien filings
      against the Issuer.

     

    (d)  The
      Issuer has caused or will have caused, within ten days, the filing of all
      appropriate financing statements in the proper filing office in the appropriate
      jurisdictions under applicable law in order to perfect the security interest
      in
      all Collateral granted to the Indenture Trustee hereunder in which a security
      interest may be perfected by filing and the Issuer will cause such security
      interest to be maintained. Any financing statement that is filed in connection
      with this Section 3.28 shall contain a statement that a purchase or security
      interest in any collateral described therein will violate the rights of the
      secured party named in such financing statement.

     

    (e)  The
      foregoing representations may not be waived and shall survive the issuance
      of
      the Notes.

     

    Section
      3.29.  Allocation
      of Realized Losses.

     

    (a)  All
      Realized Losses on the Mortgage Loans shall be allocated by the Indenture
      Trustee on each Payment Date as follows: first, to the Net Monthly Excess
      Cashflow for the related Interest Accrual Period; second, to the Prepayment
      Charges collected or paid by the Servicer during the related Prepayment Period,
      third, to the Overcollateralized Amount, until the Overcollateralized Amount
      has
      been reduced to zero; fourth, to the Class M-6 Notes until the Note Balance
      thereof has been reduced to zero; fifth, to the Class M-5 Notes until the Note
      Balance thereof has been reduced to zero; sixth, to the Class M-4 Notes until
      the Note Balance thereof has been reduced to zero; seventh, to the Class M-3
      Notes until the Note Balance thereof has been reduced to zero; eighth, to the
      Class M-2 Notes until the Note Balance thereof has been reduced to zero; and
      ninth, to the Class M-1 Notes, until the Note Balance thereof has been reduced
      to zero.

     

    (b)  All
      Realized Losses to be allocated to the Note Balances of all Classes on any
      Payment Date shall be so allocated after the actual payments to be made on
      such
      date as provided above. All references above to the Note Balance of any Class
      of
      Notes shall be to the Note Balance of such Class immediately prior to the
      relevant Payment Date, before reduction thereof by any Realized Losses, in
      each
      case to be allocated to such Class of Notes, on such Payment Date.

     

    Any
      allocation of Realized Losses to a Mezzanine Note on any Payment Date shall
      be
      made by reducing the Note Balance thereof by the amount so allocated. No
      allocations of any Realized Losses shall be made to the Note Balances of the
      Class A Notes.

     

    As
      used
      herein, an allocation of a Realized Loss on a “pro
      rata
      basis”
among two or more specified Classes of Notes means an allocation on a pro rata
      basis, among the various Classes so specified, to each such Class of Notes
      on
      the basis of their then outstanding Note Balances prior to giving effect to
      payments to be made on such Payment Date. All Realized Losses and all other
      losses allocated to a Class of Notes hereunder will be allocated among the
      Notes
      of such Class in proportion to the Percentage Interests evidenced
      thereby.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    ARTICLE
      IV  

    THE
      NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

     

    Section
      4.01.  The
      Notes.
      Each
      Class of Notes shall be registered in the name of a nominee designated by the
      Depository. Beneficial Owners will hold interests in the Notes through the
      book-entry facilities of the Depository in minimum initial Note Balances of
      $25,000 and integral multiples of $1 in excess thereof.

     

    The
      Indenture Trustee may for all purposes (including the making of payments due
      on
      the Notes) deal with the Depository as the authorized representative of the
      Beneficial Owners with respect to the Notes for the purposes of exercising
      the
      rights of Holders of the Notes hereunder. Except as provided in the next
      succeeding paragraph of this Section 4.01, the rights of Beneficial Owners
      with
      respect to the Notes shall be limited to those established by law and agreements
      between such Beneficial Owners and the Depository and Depository Participants.
      Except as provided in Section 4.08 hereof, Beneficial Owners shall not be
      entitled to definitive notes for the Notes as to which they are the Beneficial
      Owners. Requests and directions from, and votes of, the Depository as Holder
      of
      the Notes shall not be deemed inconsistent if they are made with respect to
      different Beneficial Owners. The Indenture Trustee may establish a reasonable
      record date in connection with solicitations of consents from or voting by
      Noteholders and give notice to the Depository of such record date. Without
      the
      consent of the Issuer and the Indenture Trustee, no Note may be transferred
      by
      the Depository except to a successor Depository that agrees to hold such Note
      for the account of the Beneficial Owners.

     

    In
      the
      event the Depository Trust Company resigns or is removed as Depository, the
      Indenture Trustee with the approval of the Issuer may appoint a successor
      Depository. If no successor Depository has been appointed within 30 days of
      the
      effective date of the Depository’s resignation or removal, each Beneficial Owner
      shall be entitled to certificates representing the Notes it beneficially owns
      in
      the manner prescribed in Section 4.08.

     

    The
      Notes
      shall, on original issue, be executed on behalf of the Issuer by the Owner
      Trustee, not in its individual capacity but solely as Owner Trustee,
      authenticated by the Indenture Trustee and delivered by the Indenture Trustee
      to
      or upon the order of the Issuer.

     

    Section
      4.02.  Registration
      of and Limitations on Transfer and Exchange of Notes; Appointment of Note
      Registrar and Certificate.

     

    The
      Issuer shall cause to be kept at the Corporate Trust Office a Note Register
      in
      which, subject to such reasonable regulations as it may prescribe, the Note
      Registrar shall provide for the registration of Notes and of transfers and
      exchanges of Notes as herein provided.

     

    Subject
      to the restrictions and limitations set forth below, upon surrender for
      registration of transfer of any Note at the Corporate Trust Office, the Issuer
      shall execute and the Note Registrar shall authenticate and deliver, in the
      name
      of the designated transferee or transferees, one or more new Notes in authorized
      initial Note Balances evidencing the same Class and aggregate Percentage
      Interests.

     

    Subject
      to the foregoing, at the option of the Noteholders, Notes may be exchanged
      for
      other Notes of like tenor and in authorized initial Note Balances evidencing
      the
      same Class and aggregate Percentage Interests upon surrender of the Notes to
      be
      exchanged at the Corporate Trust Office of the Note Registrar. Whenever any
      Notes are so surrendered for exchange, the Issuer shall execute and the
      Indenture Trustee shall authenticate and deliver the Notes which the Noteholder
      making the exchange is entitled to receive. Each Note presented or surrendered
      for registration of transfer or exchange shall (if so required by the Note
      Registrar) be duly endorsed by, or be accompanied by a written instrument of
      transfer in form reasonably satisfactory to the Note Registrar duly executed
      by
      the Holder thereof or his attorney duly authorized in writing with such
      signature guaranteed by a commercial bank or trust company located or having
      a
      correspondent located in the city of New York. Notes delivered upon any such
      transfer or exchange will evidence the same obligations, and will be entitled
      to
      the same rights and privileges, as the Notes surrendered.

     

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

     

    The
      Issuer hereby appoints the Indenture Trustee as (i) Certificate Registrar to
      keep at its Corporate Trust Office a Certificate Register pursuant to Section
      3.09 of the Trust Agreement in which, subject to such reasonable regulations
      as
      it may prescribe, the Certificate Registrar shall provide for the registration
      of Certificates and of transfers and exchanges thereof pursuant to Section
      3.05
      of the Trust Agreement and (ii) Note Registrar under this Indenture. The
      Indenture Trustee hereby accepts such appointments.

     

    Section
      4.03.  Mutilated,
      Destroyed, Lost or Stolen Notes.
      If (i)
      any mutilated Note is surrendered to the Indenture Trustee, or the Indenture
      Trustee receives evidence to its satisfaction of the destruction, loss or theft
      of any Note, and (ii) there is delivered to the Indenture Trustee such security
      or indemnity as may be required by it to hold the Issuer and the Indenture
      Trustee harmless, then, in the absence of notice to the Issuer, the Note
      Registrar or the Indenture Trustee that such Note has been acquired by a bona
      fide purchaser, and provided that the requirements of Section 8-405 of the
      UCC
      are met, the Issuer shall execute, and upon its request the Indenture Trustee
      shall authenticate and deliver, in exchange for or in lieu of any such
      mutilated, destroyed, lost or stolen Note, a replacement Note; provided,
      however,
      that if
      any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
      become or within seven days shall be due and payable, instead of issuing a
      replacement Note, the Issuer may pay such destroyed, lost or stolen Note when
      so
      due or payable without surrender thereof. If, after the delivery of such
      replacement Note or payment of a destroyed, lost or stolen Note pursuant to
      the
      proviso to the preceding sentence, a bona fide purchaser of the original Note
      in
      lieu of which such replacement Note was issued presents for payment such
      original Note, the Issuer and the Indenture Trustee shall be entitled to recover
      such replacement Note (or such payment) from the Person to whom it was delivered
      or any Person taking such replacement Note from such Person to whom such
      replacement Note was delivered or any assignee of such Person, except a bona
      fide purchaser, and shall be entitled to recover upon the security or indemnity
      provided therefor to the extent of any loss, damage, cost or expense incurred
      by
      the Issuer or the Indenture Trustee in connection therewith.

     

    Upon
      the
      issuance of any replacement Note under this Section 4.03, the Issuer may require
      the payment by the Holder of such Note of a sum sufficient to cover any tax
      or
      other governmental charge that may be imposed in relation thereto and any other
      reasonable expenses (including the fees and expenses of the Indenture Trustee)
      connected therewith.

     

    Every
      replacement Note issued pursuant to this Section 4.03 in replacement of any
      mutilated, destroyed, lost or stolen Note shall constitute an original
      additional contractual obligation of the Issuer, whether or not the mutilated,
      destroyed, lost or stolen Note shall be at any time enforceable by anyone,
      and
      shall be entitled to all the benefits of this Indenture equally and
      proportionately with any and all other Notes duly issued hereunder.

     

    The
      provisions of this Section 4.03 are exclusive and shall preclude (to the extent
      lawful) all other rights and remedies with respect to the replacement or payment
      of mutilated, destroyed, lost or stolen Notes.

     

    Section
      4.04.  Persons
      Deemed Owners.
      Prior
      to due presentment for registration of transfer of any Note, the Issuer, the
      Indenture Trustee, the Paying Agent and any agent of the Issuer or the Indenture
      Trustee may treat the Person in whose name any Note is registered (as of the
      day
      of determination) as the owner of such Note for the purpose of receiving
      payments of principal of and interest, if any, on such Note and for all other
      purposes whatsoever, whether or not such Note be overdue, and neither the
      Issuer, the Indenture Trustee, the Paying Agent nor any agent of the Issuer
      or
      the Indenture Trustee shall be affected by notice to the contrary.

     

    Section
      4.05.  Cancellation.
      All
      Notes surrendered for payment, registration of transfer, exchange or redemption
      shall, if surrendered to any Person other than the Indenture Trustee, be
      delivered to the Indenture Trustee and shall be promptly cancelled by the
      Indenture Trustee. The Issuer may at any time deliver to the Indenture Trustee
      for cancellation any Notes previously authenticated and delivered hereunder
      which the Issuer may have acquired in any manner whatsoever, and all Notes
      so
      delivered shall be promptly cancelled by the Indenture Trustee. No Notes shall
      be authenticated in lieu of or in exchange for any Notes cancelled as provided
      in this Section 4.05, except as expressly permitted by this Indenture. All
      cancelled Notes may be held or disposed of by the Indenture Trustee in
      accordance with its standard retention or disposal policy as in effect at the
      time unless the Issuer shall direct by an Issuer Request that they be destroyed
      or returned to it; provided,
      however,
      that
      such Issuer Request is timely and the Notes have not been previously disposed
      of
      by the Indenture Trustee.

     

    Section
      4.06.  Book-Entry
      Notes.  The
      Notes, upon original issuance, will be issued in the form of typewritten Notes
      representing the Book-Entry Notes, to be delivered to The Depository Trust
      Company, the initial Depository, by, or on behalf of, the Issuer. The Notes
      shall initially be registered on the Note Register in the name of Cede &
Co., the nominee of the initial Depository, and no Beneficial Owner will receive
      a Definitive Note representing such Beneficial Owner’s interest in such Note,
      except as provided in Section 4.08. With respect to such Notes, unless and
      until
      definitive, fully registered Notes (the “Definitive Notes”) have been issued to
      Beneficial Owners pursuant to Section 4.08:

     

    (i)  the
      provisions of this Section 4.06 shall be in full force and effect;

     

    (ii)  the
      Note
      Registrar, the Paying Agent and the Indenture Trustee shall be entitled to
      deal
      with the Depository for all purposes of this Indenture (including the payment
      of
      principal of and interest on the Notes and the giving of instructions or
      directions hereunder) as the sole holder of the Notes, and shall have no
      obligation to the Beneficial Owners of the Notes;

     

    (iii)  to
      the
      extent that the provisions of this Section 4.06 conflict with any other
      provisions of this Indenture, the provisions of this Section 4.06 shall
      control;

     

    (iv)  the
      rights of Beneficial Owners shall be exercised only through the Depository
      and
      shall be limited to those established by law and agreements between such Owners
      of Notes and the Depository and/or the Depository Participants. Unless and
      until
      Definitive Notes are issued pursuant to Section 4.08, the initial Depository
      will make book-entry transfers among the Depository Participants and receive
      and
      transmit payments of principal of and interest on the Notes to such Depository
      Participants; and

     

    (v)  whenever
      this Indenture requires or permits actions to be taken based upon instructions
      or directions of Holders of Notes evidencing a specified percentage of the
      Note
      Balances of the Notes, the Depository shall be deemed to represent such
      percentage with respect to the Notes only to the extent that it has received
      instructions to such effect from Beneficial Owners and/or Depository
      Participants owning or representing, respectively, such required percentage
      of
      the beneficial interest in the Notes and has delivered such instructions to
      the
      Indenture Trustee.

     

    Section
      4.07.  Notices
      to Depository.
      Whenever a notice or other communication to the Note Holders is required under
      this Indenture, unless and until Definitive Notes shall have been issued to
      Beneficial Owners pursuant to Section 4.08, the Indenture Trustee shall give
      all
      such notices and communications specified herein to be given to Holders of
      the
      Notes to the Depository, and shall have no obligation to the Beneficial
      Owners.

     

    Section
      4.08.  Definitive
      Notes.
      If (i)
      the Indenture Trustee determines that the Depository is no longer willing or
      able to properly discharge its responsibilities with respect to the Notes and
      the Indenture Trustee is unable to locate a qualified successor or (ii) after
      the occurrence of an Event of Default, Beneficial Owners of Notes representing
      beneficial interests aggregating at least a majority of the Note Balances of
      the
      Notes advise the Depository in writing that the continuation of a book-entry
      system through the Depository is no longer in the best interests of the
      Beneficial Owners, then the Depository shall notify all Beneficial Owners and
      the Indenture Trustee of the occurrence of any such event and of the
      availability of Definitive Notes to Beneficial Owners requesting the same.
      Upon
      surrender to the Indenture Trustee of the typewritten Notes representing the
      Book-Entry Notes by the Depository, accompanied by registration instructions,
      the Issuer shall execute and the Indenture Trustee shall authenticate the
      Definitive Notes in accordance with the instructions of the Depository. None
      of
      the Issuer, the Note Registrar or the Indenture Trustee shall be liable for
      any
      delay in delivery of such instructions and may conclusively rely on, and shall
      be protected in relying on, such instructions. Upon the issuance of Definitive
      Notes, the Indenture Trustee shall recognize the Holders of the Definitive
      Notes
      as Noteholders.

     

    Section
      4.09.  Tax
      Treatment.
      The
      Issuer has entered into this Indenture, and the Notes will be issued with the
      intention that, for federal, state and local income, single business and
      franchise tax purposes, the Notes will qualify as indebtedness. The Issuer
      and
      the Indenture Trustee (in accordance with Section 6.06 hereof), by entering
      into
      this Indenture, and each Noteholder, by its acceptance of its Note (and each
      Beneficial Owner by its acceptance of an interest in the applicable Book-Entry
      Note), agree to treat the Notes for federal, state and local income, single
      business and franchise tax purposes as indebtedness.

     

    Section
      4.10.  Satisfaction
      and Discharge of Indenture.
      This
      Indenture shall cease to be of further effect with respect to the Notes except
      as to (i) rights of registration of transfer and exchange, (ii) substitution
      of
      mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
      receive payments of principal thereof and interest thereon, (iv) Sections 3.03,
      3.04, 3.06, 3.09, 3.17, 3.19 and 3.20, (v) the rights and immunities of the
      Indenture Trustee hereunder (including the rights of the Indenture Trustee
      under
      Section 6.07) and the obligations of the Indenture Trustee under Section 4.11
      and (vi) the rights of Noteholders as beneficiaries hereof with respect to
      the
      property so deposited with the Indenture Trustee payable to all or any of them,
      and the Indenture Trustee, on demand of and at the expense of the Issuer, shall
      execute proper instruments acknowledging satisfaction and discharge of this
      Indenture with respect to the Notes and shall release and deliver the Collateral
      to or upon the order of the Issuer, when

     

    (A) either

     

    (1) all
      Notes
      theretofore authenticated and delivered (other than (i) Notes that have been
      destroyed, lost or stolen and that have been replaced or paid as provided in
      Section 4.03 hereof and (ii) Notes for whose payment money has theretofore
      been
      deposited in trust or segregated and held in trust by the Issuer and thereafter
      repaid to the Issuer or discharged from such trust, as provided in Section
      3.03)
      have been delivered to the Indenture Trustee for cancellation; or

     

    (2) all
      Notes
      not theretofore delivered to the Indenture Trustee for cancellation (a) have
      become due and payable, (b) will become due and payable at the Final Stated
      Maturity Date within one year, or (c) have been called for early redemption
      pursuant to Section 8.07 hereof, and the Issuer, in the case of (a) or (b)
      above, has irrevocably deposited or caused to be irrevocably deposited with
      the
      Indenture Trustee cash or direct obligations of or obligations guaranteed by
      the
      United States of America (which will mature prior to the date such amounts
      are
      payable), in trust for such purpose, in an amount sufficient to pay and
      discharge the entire indebtedness on such Notes then outstanding not theretofore
      delivered to the Indenture Trustee for cancellation when due on the Final Stated
      Maturity Date or other final Payment Date, or, in the case of (c) above, the
      Issuer shall have complied with all requirements of Section 8.07
      hereof,

     

    (B) the
      Issuer has paid or caused to be paid all other sums payable hereunder;
      and

     

    (C) the
      Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an
      Opinion of Counsel, each meeting the applicable requirements of Section 10.01
      hereof, each stating that all conditions precedent herein provided for relating
      to the satisfaction and discharge of this Indenture have been complied with
      and,
      if the Opinion of Counsel relates to a deposit made in connection with Section
      4.10(A)(2)(b) above, such opinion shall further be to the effect that such
      deposit will constitute an “in-substance defeasance” within the meaning of
      Revenue Ruling 85-42, 1985-1 C.B. 36, and in accordance therewith, the Issuer
      will be the owner of the assets deposited in trust for federal income tax
      purposes.

     

    Section
      4.11.  Application
      of Trust Money.
      All
      monies deposited with the Indenture Trustee pursuant to Section 4.10 hereof
      shall be held in trust and applied by it, in accordance with the provisions
      of
      the Notes and this Indenture, to the payment, either directly or through any
      Paying Agent or the Issuer, Certificate Paying Agent as designee of the Issuer,
      as the Indenture Trustee may determine, to the Holders of Notes or Certificates,
      of all sums due and to become due thereon for principal and interest or
      otherwise; but such monies need not be segregated from other funds except to
      the
      extent required herein or required by law.

     

    Section
      4.12.  Derivative
      Contracts for Benefit of the Certificates.
      At any
      time on or after the Closing Date, the Issuer shall have the right to convey
      to
      the Trust Estate, solely for the benefit of the Holder of the Certificates,
      a
      derivative contract or comparable instrument. Any such instrument shall
      constitute a fully prepaid agreement. All collections, proceeds and other
      amounts in respect of such an instrument shall be distributed to the
      Certificates on the Payment Date following receipt thereof by the Indenture
      Trustee.

     

    Section
      4.13.  Repayment
      of Monies Held by Paying Agent.
      In
      connection with the satisfaction and discharge of this Indenture with respect
      to
      the Notes, all monies then held by any Person other than the Indenture Trustee
      under the provisions of this Indenture with respect to such Notes shall, upon
      demand of the Issuer, be paid to the Indenture Trustee to be held and applied
      according to Section 3.05 and thereupon such Person shall be released from
      all
      further liability with respect to such monies.

     

    Section
      4.14.  Temporary
      Notes.
      Pending
      the preparation of any Definitive Notes, the Issuer may execute and upon its
      written direction, the Indenture Trustee may authenticate and make available
      for
      delivery, temporary Notes that are printed, lithographed, typewritten,
      photocopied or otherwise produced, in any denomination, substantially of the
      tenor of the Definitive Notes in lieu of which they are issued and with such
      appropriate insertions, omissions, substitutions and other variations as the
      officers executing such Notes may determine, as evidenced by their execution
      of
      such Notes.

     

    If
      temporary Notes are issued, the Issuer will cause Definitive Notes to be
      prepared without unreasonable delay. After the preparation of the Definitive
      Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
      surrender of the temporary Notes at the office of the Indenture Trustee located
      at DB Services Tennessee, 648 Grassmere Park Road, Nashville, Tennessee
      37211-3658, Attention: Transfer Unit, without charge to the Holder. Upon
      surrender for cancellation of any one or more temporary Notes, the Issuer shall
      execute and the Indenture Trustee shall authenticate and make available for
      delivery, in exchange therefor, Definitive Notes of authorized denominations
      and
      of like tenor, class and aggregate principal amount. Until so exchanged, such
      temporary Notes shall in all respects be entitled to the same benefits under
      this Indenture as Definitive Notes.

     

    Section
      4.15.  Representation
      Regarding ERISA.
      By
      acquiring a Note or interest therein, each Holder of such Note or Beneficial
      Owner of any such interest will be deemed to represent that either (1) it is
      not
      acquiring the Note with Plan Assets or (2) (A) the acquisition, holding and
      transfer of such Note will not give rise to a non-exempt prohibited transaction
      under Section 406 of ERISA or Section 4975 of the Code and (B) the Notes are
      rated investment grade or better and such person believes that the Notes are
      properly treated as indebtedness without substantial equity features for
      purposes of the Department of Labor regulation 29 C.F.R. § 2510.3-101, and
      agrees to so treat the Notes. Alternatively, regardless of the rating of the
      Notes, such person may provide the Indenture Trustee and the Owner Trustee
      with
      an opinion of counsel, which opinion of counsel will not be at the expense
      of
      the Issuer, the Seller, NC Capital, any Underwriter, the Owner Trustee, the
      Indenture Trustee, the Servicer or any successor servicer which opines that
      the
      acquisition, holding and transfer of such Note or interest therein is
      permissible under applicable law, will not constitute or result in a non-exempt
      prohibited transaction under ERISA or Section 4975 of the Code and will not
      subject the Issuer, the Seller, NC Capital, the Depositor, the Owner Trustee,
      the Indenture Trustee, the Servicer or any successor servicer to any obligation
      in addition to those undertaken in the Indenture or the other Operative
      Agreements.

     

    

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    ARTICLE
      V

    DEFAULT
      AND REMEDIES

     

    Section
      5.01.  Events
      of Default.
      The
      Issuer shall deliver to the Indenture Trustee, written notice in the form of
      an
      Officer’s Certificate, within five days after learning of the occurrence of any
      event which with the giving of notice and the lapse of time would become an
      Event of Default under clause (iii), (iv) or (v) of the definition of “Event of
      Default,” its status and what action the Issuer is taking or proposes to take
      with respect thereto. The Indenture Trustee shall not be deemed to have
      knowledge of any Event of Default unless a Responsible Officer has actual
      knowledge thereof or unless written notice of such Event of Default is received
      by a Responsible Officer and such notice references the Notes, the Trust Estate
      or this Indenture.

     

    Section
      5.02.  Acceleration
      of Maturity; Rescission and Annulment.
      If an
      Event of Default should occur and be continuing, then and in every such case
      the
      Indenture Trustee at the written direction of the Holders of Notes representing
      not less than a majority of the aggregate Note Balance of the Notes, together
      with accrued and unpaid interest thereon through the date of acceleration shall
      become immediately due and payable.

     

    At
      any
      time after such declaration of acceleration of maturity with respect to an
      Event
      of Default has been made and before a judgment or decree for payment of the
      money due has been obtained by the Indenture Trustee as hereinafter in this
      Article V provided, Holders of the Notes representing not less than a majority
      of the aggregate Note Balance of the Notes, by written notice to the Issuer
      and
      the Indenture Trustee, may waive the related Event of Default and rescind and
      annul such declaration and its consequences if

     

    (i)  the
      Issuer has paid or deposited with the Indenture Trustee a sum sufficient to
      pay
      (a) all payments of principal of and interest on the Notes and all other amounts
      that would then be due hereunder or upon the Notes if the Event of Default
      giving rise to such acceleration had not occurred; and (b) all sums paid or
      advanced by the Indenture Trustee hereunder and the reasonable compensation,
      expenses, disbursements and advances of the Indenture Trustee and its agents
      and
      counsel; and

     

    (ii)  all
      Events of Default, other than the nonpayment of the principal of the Notes
      that
      has become due solely by such acceleration, have been cured or waived as
      provided in Section 5.12.

     

    No
      such
      rescission shall affect any subsequent default or impair any right consequent
      thereto.

     

    Section
      5.03.  Collection
      of Indebtedness and Suits for Enforcement by Indenture Trustee.

     

    (a)  The
      Issuer covenants that if (i) default is made in the payment of any interest
      on
      any Note when the same becomes due and payable, and such default continues
      for a
      period of five days, or (ii) default is made in the payment of the principal
      of
      or any installment of the principal of any Note when the same becomes due and
      payable, the Issuer shall, upon demand of the Indenture Trustee, at the
      direction of the Holders of a majority of the aggregate Note Balance of the
      Notes, pay to the Indenture Trustee, for the benefit of the Holders of Notes,
      the whole amount then due and payable on the Notes for principal and interest,
      with interest at the applicable Note Rate upon the overdue principal, and in
      addition thereto such further amount as shall be sufficient to cover the costs
      and expenses of collection, including the reasonable compensation, expenses,
      disbursements and advances of the Indenture Trustee and its agents and
      counsel.

     

    (b)  In
      case
      the Issuer shall fail forthwith to pay such amounts upon such demand, the
      Indenture Trustee, in its own name and as trustee of an express trust, subject
      to the provisions of Section 10.16 hereof may institute a Proceeding for the
      collection of the sums so due and unpaid, and may prosecute such Proceeding
      to
      judgment or final decree, and may enforce the same against the Issuer or other
      obligor upon the Notes and collect in the manner provided by law out of the
      property of the Issuer or other obligor the Notes, wherever situated, the monies
      adjudged or decreed to be payable.

     

    (c)  If
      an
      Event of Default occurs and is continuing, the Indenture Trustee, subject to
      the
      provisions of Section 10.16 hereof may, as more particularly provided in Section
      5.04 hereof, in its discretion, proceed to protect and enforce its rights and
      the rights of the Noteholders, by such appropriate Proceedings, as directed
      in
      writing by Holders of a majority of the aggregate Note Balance of the Notes,
      to
      protect and enforce any such rights, whether for the specific enforcement of
      any
      covenant or agreement in this Indenture or in aid of the exercise of any power
      granted herein, or to enforce any other proper remedy or legal or equitable
      right vested in the Indenture Trustee by this Indenture or by law.

     

    (d)  In
      case
      there shall be pending, relative to the Issuer or any other obligor upon the
      Notes or any Person having or claiming an ownership interest in the Trust
      Estate, Proceedings under Title 11 of the United States Code or any other
      applicable federal or state bankruptcy, insolvency or other similar law, or
      in
      case a receiver, assignee or trustee in bankruptcy or reorganization,
      liquidator, sequestrator or similar official shall have been appointed for
      or
      taken possession of the Issuer or its property or such other obligor or Person,
      or in case of any other comparable judicial Proceedings relative to the Issuer
      or other obligor upon the Notes, or to the creditors or property of the Issuer
      or such other obligor, the Indenture Trustee, as directed in writing by Holders
      of a majority of the aggregate Note Balance of the Notes, irrespective of
      whether the principal of any Notes shall then be due and payable as therein
      expressed or by declaration or otherwise and irrespective of whether the
      Indenture Trustee shall have made any demand pursuant to the provisions of
      this
      Section, shall be entitled and empowered, by intervention in such Proceedings
      or
      otherwise:

     

    (i)  to
      file
      and prove a claim or claims for the whole amount of principal and interest
      owing
      and unpaid in respect of the Notes and to file such other papers or documents
      as
      may be necessary or advisable in order to have the claims of the Indenture
      Trustee (including any claim for reasonable compensation to the Indenture
      Trustee and each predecessor Indenture Trustee, and their respective agents,
      attorneys and counsel, and for reimbursement of all expenses and liabilities
      incurred, and all advances made, by the Indenture Trustee and each predecessor
      Indenture Trustee, except as a result of negligence or bad faith) and of the
      Noteholders allowed in such Proceedings;

     

    (ii)  unless
      prohibited by applicable law and regulations, to vote on behalf of the Holders
      of Notes in any election of a trustee, a standby trustee or Person performing
      similar functions in any such Proceedings;

     

    (iii)  to
      collect and receive any monies or other property payable or deliverable on
      any
      such claims and to distribute all amounts received with respect to the claims
      of
      the Noteholders and of the Indenture Trustee on their behalf, and

     

    (iv)  to
      file
      such proofs of claim and other papers or documents as may be necessary or
      advisable in order to have the claims of the Indenture Trustee or the Holders
      of
      Notes allowed in any judicial proceedings relative to the Issuer, its creditors
      and its property; and any trustee, receiver, liquidator, custodian or other
      similar official in any such Proceeding is hereby authorized by each of such
      Noteholders to make payments to the Indenture Trustee and, in the event that
      the
      Indenture Trustee shall consent to the making of payments directly to such
      Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient
      to cover reasonable compensation to the Indenture Trustee, each predecessor
      Indenture Trustee and their respective agents, attorneys and counsel, and all
      other expenses and liabilities incurred, and all advances made, by the Indenture
      Trustee and each predecessor Indenture Trustee.

     

    (e)  Nothing
      herein contained shall be deemed to authorize the Indenture Trustee to authorize
      or consent to or vote for or accept or adopt on behalf of any Noteholder any
      plan of reorganization, arrangement, adjustment or composition affecting the
      Notes or the rights of any Holder thereof or to authorize the Indenture Trustee
      to vote in respect of the claim of any Noteholder in any such proceeding except,
      as aforesaid, to vote for the election of a trustee in bankruptcy or similar
      Person.

     

    (f)  All
      rights of action and of asserting claims under this Indenture, or under any
      of
      the Notes, may be enforced by the Indenture Trustee without the possession
      of
      any of the Notes or the production thereof in any trial or other Proceedings
      relative thereto, and any such action or proceedings instituted by the Indenture
      Trustee shall be brought in its own name as trustee of an express trust, and
      any
      recovery of judgment, subject to the payment of the expenses, disbursements
      and
      compensation of the Indenture Trustee, each predecessor Indenture Trustee and
      their respective agents and attorneys, shall be for the ratable benefit of
      the
      Holders of the Notes, subject to Section 5.05 hereof.

     

    (g)  In
      any
      Proceedings brought by the Indenture Trustee (and also any Proceedings involving
      the interpretation of any provision of this Indenture to which the Indenture
      Trustee shall be a party), the Indenture Trustee shall be held to represent
      all
      the Holders of the Notes, and it shall not be necessary to make any Noteholder
      a
      party to any such Proceedings.

     

    Section
      5.04.  Remedies;
      Priorities.

     

    (a)  If
      an
      Event of Default shall have occurred and be continuing and if an acceleration
      has been declared and not rescinded pursuant to Section 5.02 hereof, the
      Indenture Trustee subject to the provisions of Section 10.16 hereof may, and
      shall, at the written direction of the Holders of a majority of the aggregate
      Note Balance of the Notes, do one or more of the following (subject to Section
      5.05 hereof):

     

    (i)  institute
      Proceedings in its own name and as trustee of an express trust for the
      collection of all amounts then payable on the Notes or under this Indenture
      with
      respect thereto, whether by declaration or otherwise enforce any judgment
      obtained, and collect from the Issuer and any other obligor upon such Notes
      monies adjudged due;

     

    (ii)  institute
      Proceedings from time to time for the complete or partial foreclosure of this
      Indenture with respect to the Trust Estate;

     

    (iii)  exercise
      any remedies of a secured party under the UCC and take any other appropriate
      action to protect and enforce the rights and remedies of the Indenture Trustee
      and the Holders of the Notes; and

     

    (iv)  sell
      the
      Trust Estate or any portion thereof or rights or interest therein, at one or
      more public or private sales called and conducted in any manner permitted by
      law; provided,
      however,
      that
      the Indenture Trustee may not sell or otherwise liquidate the Trust Estate
      following an Event of Default, unless (A) the Indenture Trustee obtains the
      consent of the Holders of 100% of the aggregate Note Balance of the Notes,
      (B)
      the proceeds of such sale or liquidation distributable to the Holders of the
      Notes are sufficient to discharge in full all amounts then due and unpaid upon
      such Notes for principal and interest or (C) the Indenture Trustee determines
      that the Mortgage Loans will not continue to provide sufficient funds for the
      payment of principal of and interest on the applicable Notes as they would
      have
      become due if the Notes had not been declared due and payable, and the Indenture
      Trustee obtains the consent of the Holders of a majority of the aggregate Note
      Balance of the Notes. In determining such sufficiency or insufficiency with
      respect to clause (B) and (C), the Indenture Trustee may, but need not, obtain
      and rely upon written advice or an opinion (obtained at the expense of the
      Trust) of an Independent investment banking or accounting firm of national
      reputation as to the feasibility of such proposed action and as to the
      sufficiency of the Trust Estate for such purpose. Notwithstanding the foregoing,
      so long as a Servicer Event of Default has not occurred, any sale of the Trust
      Estate shall be made subject to the continued servicing of the Mortgage Loans
      by
      the Servicer as provided in the Servicing Agreement.

     

    (b)  If
      the
      Indenture Trustee collects any money or property pursuant to this Article V,
      it
      shall pay out the money or property in the following order:

     

    (i)  to
      the
      Indenture Trustee and the Owner Trustee for amounts due under Section 6.07
      hereof and to the Owner Trustee for amounts due pursuant to Article VII of
      the
      Trust Agreement;

     

    (ii)  to
      the
      Noteholders for amounts due and unpaid on the Notes (including Interest
      Carryforward Amount but not including any Basis Risk Shortfalls) with respect
      to
      interest, first, concurrently, to the Holders of each Class of Class A Notes,
      on
      a pro
      rata
      basis
      based on the entitlement of each such Class, second, to the Holders of the
      Class
      M-1 Notes, third, to the Holders of the Class M-2 Notes, fourth, to the Holders
      of the Class M-3 Notes, fifth, to the Holders of the Class M-4 Notes, sixth,
      to
      the Holders of the Class M-5 Notes, seventh, to the Holders of the Class M-6
      Notes, eighth, to the Holders of the Class M-7 Notes, and ninth to the Holders
      of the Class M-8 Notes according to the amounts due and payable on the Notes
      for
      interest;

     

    (iii)  to
      the
      Noteholders for amounts due and unpaid on the Notes with respect to principal,
      first, concurrently, to the Holders of each Class of Class A Notes, on a
pro
      rata
      basis
      based on the Note Balance of each such Class, second, to the Holders of the
      Class M-1 Notes, third, to the Holders of the Class M-2 Notes, fourth, to the
      Holders of the Class M-3 Notes, fifth, to the Holders of the Class M-4 Notes,
      sixth, to the Holders of the Class M-5 Notes, and seventh, to the Holders of
      the
      Class M-6 Notes according to the amounts due and payable on the Notes for
      interest according to the amounts due and payable on such Notes for principal,
      in each case, until the Note Balance of each such Class is reduced to
      zero;

     

    (iv)  to
      the
      Noteholders for the amount of any related Allocated Realized Loss Amount and
      Deferred Interest not previously paid, first, to the Holders of the Class M-1
      Notes, second, to the Holders of the Class M-2 Notes, third, to the Holders
      of
      the Class M-3 Notes, fourth, to the Holders of the Class M-4 Notes, fifth,
      to
      the Holders of the Class M-5 Notes, and sixth, to the Holders of the Class
      M-6
      Notes;

     

    (v)  to
      the
      Noteholders for amounts due and unpaid on the Notes with respect to any related
      Basis Risk Shortfalls, first, concurrently, to the Holders of each Class of
      Class A Notes, on a pro
      rata
      basis
      based on the Basis Risk Shortfalls for each such Class, second, to the Holders
      of the Class M-1 Notes, third, to the Holders of the Class M-2 Notes, fourth,
      to
      the Holders of the Class M-3 Notes, fifth, to the Holders of the Class M-4
      Notes, sixth, to the Holders of the Class M-5 Notes, and seventh, to the Holders
      of the Class M-6 Notes according to the amounts due and payable on the Notes
      with respect thereto, from amounts available in the Trust Estate for the
      Noteholders; and

     

    (vi)  to
      the
      payment of the remainder, if any to the Certificate Paying Agent on behalf
      of
      the Issuer or to any other person legally entitled thereto.

     

    The
      Indenture Trustee may fix a record date and Payment Date for any payment to
      Noteholders pursuant to this Section 5.04. At least 15 days before such record
      date, the Indenture Trustee shall mail to each Noteholder a notice that states
      the record date, the Payment Date and the amount to be paid.

     

    Section
      5.05.  Optional
      Preservation of the Trust Estate.
      If the
      Notes have been declared to be due and payable under Section 5.02 following
      an
      Event of Default and such declaration and its consequences have not been
      rescinded and annulled, the Indenture Trustee may elect to take and maintain
      possession of the Trust Estate. It is the desire of the parties hereto and
      the
      Noteholders that there be at all times sufficient funds for the payment of
      principal of and interest on the Notes and other obligations of the Issuer
      and
      the Indenture Trustee shall take such desire into account when determining
      whether or not to take and maintain possession of the Trust Estate. In
      determining whether and how to take and maintain possession of the Trust Estate,
      the Indenture Trustee may, but need not, obtain and rely upon the written advice
      or an opinion of an Independent investment banking or accounting firm of
      national reputation as to the feasibility of such proposed action and as to
      the
      sufficiency of the Trust Estate for such purpose.

     

    Section
      5.06.  Limitation
      of Suits.
      No
      Holder of any Note shall have any right to institute any Proceeding, judicial
      or
      otherwise, with respect to this Indenture, or for the appointment of a receiver
      or trustee, or for any other remedy hereunder, unless and subject to the
      provisions of Section 10.16 hereof

     

    (i)  such
      Holder has previously given written notice to the Indenture Trustee of a
      continuing Event of Default;

     

    (ii)  the
      Holders of not less than 25% of the aggregate Note Balance of the Notes have
      made a written request to the Indenture Trustee to institute such Proceeding
      in
      respect of such Event of Default in its own name as Indenture Trustee
      hereunder;

     

    (iii)  such
      Holder or Holders have offered to the Indenture Trustee indemnity reasonably
      satisfactory to it against the costs, expenses and liabilities to be incurred
      in
      complying with such request;

     

    (iv)  the
      Indenture Trustee for 60 days after its receipt of such notice of request and
      offer of indemnity has failed to institute such Proceedings; and

     

    (v)  no
      direction inconsistent with such written request has been given to the Indenture
      Trustee during such 60-day period by the Holders of a majority of the Note
      Balances of the Notes.

     

    It
      is
      understood and intended that no one or more Holders of Notes shall have any
      right in any manner whatever by virtue of, or by availing of, any provision
      of
      this Indenture to affect, disturb or prejudice the rights of any other Holders
      of Notes or to obtain or to seek to obtain priority or preference over any
      other
      Holders or to enforce any right under this Indenture, except in the manner
      herein provided.

     

    Section
      5.07.  Unconditional
      Rights of Noteholders To Receive Principal and Interest.

     

    Notwithstanding
      any other provisions in this Indenture, the Holder of any Note shall have the
      right, which is absolute and unconditional, to receive payment of the principal
      of and interest, if any, on such Note on or after the respective due dates
      thereof expressed in such Note or in this Indenture and to institute suit for
      the enforcement of any such payment, and such right shall not be impaired
      without the consent of such Holder.

     

    Section
      5.08.  Restoration
      of Rights and Remedies.
      If the
      Indenture Trustee or any Noteholder has instituted any Proceeding to enforce
      any
      right or remedy under this Indenture and such Proceeding has been discontinued
      or abandoned for any reason or has been determined adversely to the Indenture
      Trustee or to such Noteholder, then and in every such case the Issuer, the
      Indenture Trustee and the Noteholders shall, subject to any determination in
      such Proceeding, be restored severally and respectively to their former
      positions hereunder, and thereafter all rights and remedies of the Indenture
      Trustee and the Noteholders shall continue as though no such Proceeding had
      been
      instituted.

     

    Section
      5.09.  Rights
      and Remedies Cumulative.
      No
      right or remedy herein conferred upon or reserved to the Indenture Trustee
      or to
      the Noteholders is intended to be exclusive of any other right or remedy, and
      every right and remedy shall, to the extent permitted by law, be cumulative
      and
      in addition to every other right and remedy given hereunder or now or hereafter
      existing at law or in equity or otherwise. The assertion or employment of any
      right or remedy hereunder, or otherwise, shall not prevent the concurrent
      assertion or employment of any other appropriate right or remedy.

     

    Section
      5.10.  Delay
      or Omission Not a Waiver.
      No
      delay or omission of the Indenture Trustee or any Holder of any Note to exercise
      any right or remedy accruing upon any Event of Default shall impair any such
      right or remedy or constitute a waiver of any such Event of Default or an
      acquiescence therein. Every right and remedy given by this Article V or by
      law
      to the Indenture Trustee or to the Noteholders may be exercised from time to
      time, and as often as may be deemed expedient, by the Indenture Trustee or
      by
      the Noteholders, as the case may be.

     

    Section
      5.11.  Control
      By Noteholders.  The
      Holders of a majority of the aggregate Note Balance of Notes shall have the
      right to direct the time, method and place of conducting any Proceeding for
      any
      remedy available to the Indenture Trustee with respect to the Notes or
      exercising any trust or power conferred on the Indenture Trustee; provided
      that:

     

    (i)  such
      direction shall not be in conflict with any rule of law or with this
      Indenture;

     

    (ii)  any
      direction to the Indenture Trustee to sell or liquidate the Trust Estate shall
      be by Holders of Notes representing not less than 100% of the Note Balances
      of
      the Notes;

     

    (iii)  the
      Indenture Trustee has been provided with indemnity satisfactory to it;
      and

     

    (iv)  the
      Indenture Trustee may take any other action deemed proper by the Indenture
      Trustee that is not inconsistent with such direction of the Holders of Notes
      representing a majority of the Note Balances of the Notes.

     

    Notwithstanding
      the rights of Noteholders set forth in this Section 5.11 the Indenture Trustee
      need not take any action that it determines might involve it in
      liability.

     

    Section
      5.12.  Waiver
      of Past Defaults.  Prior
      to the declaration of the acceleration of the maturity of the Notes as provided
      in Section 5.02 hereof, the Holders of Notes representing not less than a
      majority of the aggregate Note Balance of the Notes may waive any past Event
      of
      Default and its consequences except an Event of Default (a) with respect to
      payment of principal of or interest on any of the Notes or (b) in respect of
      a
      covenant or provision hereof which cannot be modified or amended without the
      consent of the Holder of each Note. In the case of any such waiver, the Issuer,
      the Indenture Trustee and the Holders of the Notes shall be restored to their
      former positions and rights hereunder, respectively, but no such waiver shall
      extend to any subsequent or other Event of Default or impair any right
      consequent thereto.

     

    Upon
      any
      such waiver, any Event of Default arising therefrom shall be deemed to have
      been
      cured and not to have occurred, for every purpose of this Indenture; but no
      such
      waiver shall extend to any subsequent or other Event of Default or impair any
      right consequent thereto.

     

    Section
      5.13.  Undertaking
      for Costs.
      All
      parties to this Indenture agree, and each Holder of any Note and each Beneficial
      Owner of any interest therein by such Holder’s or Beneficial Owner’s acceptance
      thereof shall be deemed to have agreed, that any court may in its discretion
      require, in any suit for the enforcement of any right or remedy under this
      Indenture, or in any suit against the Indenture Trustee for any action taken,
      suffered or omitted by it as Indenture Trustee, the filing by any party litigant
      in such suit of an undertaking to pay the costs of such suit, and that such
      court may in its discretion assess reasonable costs, including reasonable
      attorneys’ fees, against any party litigant in such suit, having due regard to
      the merits and good faith of the claims or defenses made by such party litigant;
      but the provisions of this Section 5.13 shall not apply to (a) any suit
      instituted by the Indenture Trustee, (b) any suit instituted by any Noteholder,
      or group of Noteholders, in each case holding in the aggregate more than 10%
      of
      the Note Balances of the Notes or (c) any suit instituted by any Noteholder
      for
      the enforcement of the payment of principal of or interest on any Note on or
      after the respective due dates expressed in such Note and in this
      Indenture.

     

    Section
      5.14.  Waiver
      of Stay or Extension Laws.
      The
      Issuer covenants (to the extent that it may lawfully do so) that it will not
      at
      any time insist upon, or plead or in any manner whatsoever, claim or take the
      benefit or advantage of, any stay or extension law wherever enacted, now or
      at
      any time hereafter in force, that may affect the covenants or the performance
      of
      this Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
      expressly waives all benefit or advantage of any such law, and covenants that
      it
      shall not hinder, delay or impede the execution of any power herein granted
      to
      the Indenture Trustee, but will suffer and permit the execution of every such
      power as though no such law had been enacted.

     

    Section
      5.15.  Sale
      of Trust Estate.

     

    (a)  The
      power
      to effect any sale or other disposition (a “Sale”) of any portion of the Trust
      Estate pursuant to Section 5.04 hereof is expressly subject to the provisions
      of
      Section 5.05 hereof and this Section 5.15. The power to effect any such Sale
      shall not be exhausted by any one or more Sales as to any portion of the Trust
      Estate remaining unsold, but shall continue unimpaired until the entire Trust
      Estate shall have been sold or all amounts payable on the Notes and under this
      Indenture shall have been paid. The Indenture Trustee may from time to time
      postpone any public Sale by public announcement made at the time and place
      of
      such Sale. The Indenture Trustee hereby expressly waives its right to any amount
      fixed by law as compensation for any Sale.

     

    (b)  The
      Indenture Trustee shall not in any private Sale sell the Trust Estate, or any
      portion thereof, unless

     

    (i)  the
      Holders of all Notes consent to or direct the Indenture Trustee to make, such
      Sale, or

     

    (ii)  the
      proceeds of such Sale would be not less than the entire amount which would
      be
      payable to the Noteholders under the Notes, in full payment thereof in
      accordance with Section 5.02 hereof, on the Payment Date next succeeding the
      date of such Sale, or

     

    (iii)  the
      Indenture Trustee determines that the conditions for retention of the Trust
      Estate set forth in Section 5.05 hereof cannot be satisfied (in making any
      determination under this Section 5.15, the Indenture Trustee may rely upon
      written advice or an opinion of an Independent investment banking firm obtained
      and delivered as provided in Section 5.05 hereof), the Holders of Notes
      representing at least 100% of the Note Balances of the Notes consent to such
      Sale.

     

    The
      purchase by the Indenture Trustee of all or any portion of the Trust Estate
      at a
      private Sale shall not be deemed a Sale or other disposition thereof for
      purposes of this Section 5.15(b).

     

    (c)  [Reserved].

     

    (d)  In
      connection with a Sale of all or any portion of the Trust Estate,

     

    (i)  any
      Holder or Holders of Notes may bid for and purchase the property offered for
      sale, and upon compliance with the terms of sale may hold, retain and possess
      and dispose of such property, without further accountability, and may, in paying
      the purchase money therefor, deliver any Notes or claims for interest thereon
      in
      lieu of cash up to the amount which shall, upon distribution of the net proceeds
      of such sale, be payable thereon, and such Notes, in case the amounts so payable
      thereon shall be less than the amount due thereon, shall be returned to the
      Holders thereof after being appropriately stamped to show such partial
      payment;

     

    (ii)  the
      Indenture Trustee, may bid for and acquire the property offered for Sale in
      connection with any Sale thereof, and, subject to any requirements of, and
      to
      the extent permitted by, applicable law in connection therewith, may purchase
      all or any portion of the Trust Estate in a private sale, and, in lieu of paying
      cash therefor, may make settlement for the purchase price by crediting the
      gross
      Sale price against the sum of (A) the amount which would be payable to the
      Holders of the Notes and Holders of Certificates on the Payment Date next
      succeeding the date of such Sale and (B) the expenses of the Sale and of any
      Proceedings in connection therewith which are reimbursable to it, without being
      required to produce the Notes in order to complete any such Sale or in order
      for
      the net Sale price to be credited against such Notes, and any property so
      acquired by the Indenture Trustee shall be held and dealt with by it in
      accordance with the provisions of this Indenture;

     

    (iii)  the
      Indenture Trustee shall execute and deliver an appropriate instrument of
      conveyance, prepared by the Issuer and satisfactory to the Indenture Trustee,
      transferring its interest in any portion of the Trust Estate in connection
      with
      a Sale thereof;

     

    (iv)  the
      Indenture Trustee is hereby irrevocably appointed the agent and attorney-in-fact
      of the Issuer to transfer and convey its interest in any portion of the Trust
      Estate in connection with a Sale thereof, and to take all action necessary
      to
      effect such Sale; and

     

    (v)  no
      purchaser or transferee at such a Sale shall be bound to ascertain the Indenture
      Trustee’s authority, inquire into the satisfaction of any conditions precedent
      or see to the application of any monies.

     

    Section
      5.16.  Action
      on Notes.
      The
      Indenture Trustee’s right to seek and recover judgment on the Notes or under
      this Indenture shall not be affected by the seeking, obtaining or application
      of
      any other relief under or with respect to this Indenture. Neither the lien
      of
      this Indenture nor any rights or remedies of the Indenture Trustee or the
      Noteholders shall be impaired by the recovery of any judgment by the Indenture
      Trustee against the Issuer or by the levy of any execution under such judgment
      upon any portion of the Trust Estate or upon any of the assets of the Issuer.
      Any money or property collected by the Indenture Trustee shall be applied in
      accordance with Section 5.04(b) hereof.

     

    Section
      5.17.  Performance
      and Enforcement of Certain Obligations.

     

    (a)  Promptly
      following a request from the Indenture Trustee to do so, the Issuer in its
      capacity as holder of the Mortgage Loans, shall take all such lawful action
      as
      the Indenture Trustee may request to cause the Issuer to compel or secure the
      performance and observance by the Seller, NC Capital and the Servicer, as
      applicable, of each of their obligations to the Issuer under or in connection
      with the Mortgage Loan Purchase Agreement and the Servicing Agreement, and
      to
      exercise any and all rights, remedies, powers and privileges lawfully available
      to the Issuer under or in connection with the Mortgage Loan Purchase Agreement
      and the Servicing Agreement to the extent and in the manner directed by the
      Indenture Trustee, as pledgee of the Mortgage Loans, including the transmission
      of notices of default on the part of the Seller, NC Capital or the Servicer
      thereunder and the institution of legal or administrative actions or proceedings
      to compel or secure performance by the Seller, NC Capital or the Servicer of
      each of their obligations under the Mortgage Loan Purchase Agreement and the
      Servicing Agreement.

     

    (b)  The
      Indenture Trustee, as pledgee of the Mortgage Loans, may, and at the direction
      (which direction shall be in writing or by telephone (confirmed in writing
      promptly thereafter)) of the Holders of 66-2/3% of the Note Balances of the
      Notes, shall exercise all rights, remedies, powers, privileges and claims of
      the
      Issuer against the Seller, NC Capital or the Servicer under or in connection
      with the Mortgage Loan Purchase Agreement and the Servicing Agreement, including
      the right or power to take any action to compel or secure performance or
      observance by the Seller, NC Capital or the Servicer, as the case may be, of
      each of their obligations to the Issuer thereunder and to give any consent,
      request, notice, direction, approval, extension or waiver under the Mortgage
      Loan Purchase Agreement and the Servicing Agreement, as the case may be, and
      any
      right of the Issuer to take such action shall not be suspended.

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    ARTICLE
      VI

     

    THE
      INDENTURE TRUSTEE

     

    Section
      6.01.  Duties
      of Indenture Trustee.

     

    (a)  If
      an
      Event of Default has occurred and is continuing, the Indenture Trustee shall
      exercise the rights and powers vested in it by this Indenture and use the same
      degree of care and skill in their exercise as a prudent person would exercise
      or
      use under the circumstances in the conduct of such person’s own
      affairs.

     

    (b)  Except
      during the continuance of an Event of Default:

     

    (i)  the
      Indenture Trustee undertakes to perform such duties and only such duties as
      are
      specifically set forth in this Indenture and no implied covenants or obligations
      shall be read into this Indenture against the Indenture Trustee;
      and

     

    (ii)  in
      the
      absence of bad faith on its part, the Indenture Trustee may conclusively rely,
      as to the truth of the statements and the correctness of the opinions expressed
      therein, upon certificates or opinions furnished to the Indenture Trustee and
      conforming to the requirements of this Indenture; however, the Indenture Trustee
      shall examine the certificates and opinions to determine whether or not they
      conform to the requirements of this Indenture.

     

    (c)  The
      Indenture Trustee may not be relieved from liability for its own negligent
      action, its own negligent failure to act or its own willful misconduct, except
      that:

     

    (i)  this
      paragraph does not limit the effect of paragraph (b) of this Section
      6.01;

     

    (ii)  the
      Indenture Trustee shall not be liable for any error of judgment made in good
      faith by a Responsible Officer unless it is proved that the Indenture Trustee
      was negligent in ascertaining the pertinent facts; and

     

    (iii)  the
      Indenture Trustee shall not be liable with respect to any action it takes or
      omits to take in good faith in accordance with a direction received by it from
      Noteholders or from the Issuer, which they are entitled to give under the Basic
      Documents.

     

    (d)  The
      Indenture Trustee shall not be liable for interest on any money received by
      it.

     

    (e)  Money
      held in trust by the Indenture Trustee need not be segregated from other trust
      funds except to the extent required by law or the terms of this Indenture or
      the
      Trust Agreement.

     

    (f)  No
      provision of this Indenture shall require the Indenture Trustee to expend or
      risk its own funds or otherwise incur financial liability in the performance of
      any of its duties hereunder or in the exercise of any of its rights or powers,
      if it shall have reasonable grounds to believe that repayment of such funds
      or
      indemnity satisfactory to it against such risk or liability is not reasonably
      assured to it.

     

    (g)  Every
      provision of this Indenture relating to the conduct or affecting the liability
      of or affording protection to the Indenture Trustee shall be subject to the
      provisions of this Section and to the provisions of the TIA.

     

    (h)  The
      Indenture Trustee shall act in accordance with Sections 6.03 of the Servicing
      Agreement and shall act as successor to the Servicer or appoint a successor
      Servicer in accordance with Section 6.02 of the Servicing
      Agreement.

     

    (i)  In
      order
      to comply with laws, rules, regulations and executive orders in effect from
      time
      to time applicable to banking institutions, including those relating to the
      funding of terrorist activities and money laundering (“Applicable Law”), the
      Trustee is required to obtain, verify and record certain information relating
      to
      individuals and entities which maintain a business relationship with the
      Trustee. Accordingly, each of the parties agrees to provide to the Trustee
      upon
      its request from time to time such identifying information and documentation
      as
      may be available for such party in order to enable the Trustee to comply with
      Applicable Law.

     

    Section
      6.02.  Rights
      of Indenture Trustee.

     

    (a)  The
      Indenture Trustee may conclusively rely on, and shall be fully protected from
      acting or refraining from acting upon, any document believed by it to be genuine
      and to have been signed or presented by the proper person. The Indenture Trustee
      need not investigate any fact or matter stated in the document.

     

    (b)  Before
      the Indenture Trustee acts or refrains from acting, it may require an Officer’s
      Certificate or an Opinion of Counsel. The Indenture Trustee shall not be liable
      for any action it takes or omits to take in good faith in reliance on an
      Officer’s Certificate or Opinion of Counsel.

     

    (c)  The
      Indenture Trustee shall not be liable for any action it takes or omits to take
      in good faith which it believes to be authorized or within its rights or powers;
      provided,
      however,
      that
      the Indenture Trustee’s conduct does not constitute willful misconduct,
      negligence or bad faith.

     

    (d)  The
      Indenture Trustee may consult with counsel, and the advice or Opinion of Counsel
      with respect to legal matters relating to the Basic Documents and the Notes
      shall be full and complete authorization and protection from liability in
      respect to any action taken, omitted or suffered by it hereunder or in
      connection herewith in good faith and in accordance with the advice or opinion
      of such counsel.

     

    (e)  The
      Indenture Trustee may execute any of the trusts or powers hereunder or perform
      any duties hereunder, either directly or by or through agents, attorneys,
      custodians or nominees appointed with due care, and shall not be responsible
      for
      any willful misconduct or negligence on the part of any agent, attorney,
      custodian or nominee so appointed.

     

    (f)  The
      Indenture Trustee or its Affiliates are permitted to receive additional
      compensation that could be deemed to be in the Indenture Trustee’s economic
      self-interest for (i) serving as investment adviser, administrator, shareholder,
      servicing agent, custodian or sub-custodian with respect to certain of the
      Permitted Investments, (ii) using Affiliates to effect transactions in certain
      Permitted Investments and (iii) effecting transactions in certain Permitted
      Investments. Such compensation shall not be considered an amount that is
      reimbursable or payable to the Indenture Trustee (i) as part of the Indenture
      Trustee Fee, (ii) pursuant to Sections 3.05(d), 3.05(h), 5.04(b), 6.07 or
      8.02(c) hereunder or (iii) out of the Available Payment Amount.

     

    Section
      6.03.  Individual
      Rights of Indenture Trustee.
      The
      Indenture Trustee in its individual or any other capacity may become the owner
      or pledgee of Notes and may otherwise deal with the Issuer or its Affiliates
      with the same rights it would have if it were not Indenture Trustee, subject
      to
      the requirements of the Trust Indenture Act. Any Note Registrar, co-registrar
      or
      co-paying agent may do the same with like rights. However, the Indenture Trustee
      must comply with Sections 6.11 and 6.12 hereof.

     

    Section
      6.04.  Indenture
      Trustee’s Disclaimer.
      The
      Indenture Trustee shall not be responsible for and makes no representation
      as to
      the validity or adequacy of this Indenture or the Notes, it shall not be
      accountable for the Issuer’s use of the proceeds from the Notes, and it shall
      not be responsible for any statement of the Issuer in the Indenture or in any
      document issued in connection with the sale of the Notes or in the Notes other
      than the Indenture Trustee’s certificate of authentication. 

     

    Section
      6.05.  Notice
      of Event of Default.
      Subject
      to Section 5.01, the Indenture Trustee shall promptly mail to each Noteholder
      notice of the Event of Default after it is actually known to a Responsible
      Officer
      of
      the Indenture Trustee, unless such Event of Default shall have been waived
      or
      cured. Except in the case of an Event of Default in payment of principal of
      or
      interest on any Note, the Indenture Trustee may withhold the notice if and
      so
      long as it in good faith determines that withholding the notice is in the
      interests of Noteholders.

     

    Section
      6.06.  Reports
      by Indenture Trustee to Holders and Tax Administration.

     

    The
      Indenture Trustee shall deliver to each Noteholder such information as may
      be
      required to enable such holder to prepare its federal and state income tax
      returns. The Indenture Trustee shall prepare and file (or cause to be prepared
      and filed), on behalf of the Owner Trustee or the Issuer, all tax returns (if
      any) and information reports, tax elections and such annual or other reports
      of
      the Issuer as are necessary for preparation of tax returns and information
      reports as provided in Section 5.03 of the Trust Agreement, including without
      limitation Form 1099. All tax returns and information reports shall be signed
      by
      the Owner Trustee as provided in Section 5.03 of the Trust
      Agreement.

     

    Section
      6.07.  Compensation
      and Indemnity.  The
      Indenture Trustee shall withdraw from the Payment Account on each Payment Date
      and pay to itself the Indenture Trustee Fee. The Indenture Trustee’s
      compensation shall not be limited by any law on compensation of a trustee of
      an
      express trust. In addition, the Indenture Trustee shall withdraw from the
      Payment Account on each Payment Date and pay to the Owner Trustee the Owner
      Trustee Fee and its Expenses.

     

    The
      Issuer shall reimburse the Indenture Trustee and the Owner Trustee for all
      reasonable out-of-pocket expenses incurred or made by it, including costs of
      collection, in addition to compensation for its services. Such expenses shall
      include reasonable compensation and expenses, disbursements and advances of
      the
      Indenture Trustee’s or the Owner Trustee’s agents, counsel, accountants and
      experts. The Issuer shall indemnify the Indenture Trustee and hold it harmless
      against any and all claim, tax, penalty, loss, liability or expense (including
      attorneys’ fees and expenses) of any kind whatsoever incurred by it in
      connection with the administration of this Trust and the performance of its
      duties under any of the Basic Documents. The Indenture Trustee shall notify
      the
      Issuer promptly of any claim for which it may seek indemnity. Failure by the
      Indenture Trustee to so notify the Issuer shall not relieve the Issuer of its
      obligations hereunder. The Issuer shall defend any such claim, and the Indenture
      Trustee may have separate counsel and the Issuer shall pay the fees and expenses
      of such counsel. The Issuer is not obligated to reimburse any expense or
      indemnify against any loss, liability or expense incurred by the Indenture
      Trustee through the Indenture Trustee’s own willful misconduct, negligence or
      bad faith.

     

    The
      Issuer’s payment obligations to the Indenture Trustee and the Owner Trustee
      pursuant to this Section 6.07 shall survive the discharge of this Indenture
      and
      the termination or resignation of the Indenture Trustee. When the Indenture
      Trustee or the Owner Trustee incurs expenses after the occurrence of an Event
      of
      Default with respect to the Issuer, the expenses are intended to constitute
      expenses of administration under Title 11 of the United States Code or any
      other
      applicable federal or state bankruptcy, insolvency or similar law.

     

    Section
      6.08.  Replacement
      of Indenture Trustee.
      No
      resignation or removal of the Indenture Trustee and no appointment of a
      successor Indenture Trustee shall become effective until the acceptance of
      appointment by the successor Indenture Trustee pursuant to this Section 6.08.
      The Indenture Trustee may resign at any time by so notifying the Issuer. Holders
      of a majority of Note Balances of the Notes may remove the Indenture Trustee
      by
      so notifying the Indenture Trustee and may appoint a successor Indenture
      Trustee. The Issuer shall, remove the Indenture Trustee if:

     

    (i)  the
      Indenture Trustee fails to comply with Section 6.11 hereof;

     

    (ii)  the
      Indenture Trustee is adjudged a bankrupt or insolvent;

     

    (iii)  a
      receiver or other public officer takes charge of the Indenture Trustee or its
      property; or

     

    (iv)  the
      Indenture Trustee otherwise becomes incapable of acting.

     

    If
      the
      Indenture Trustee resigns or is removed or if a vacancy exists in the office
      of
      the Indenture Trustee for any reason (the Indenture Trustee in such event being
      referred to herein as the retiring Indenture Trustee), the Issuer shall,
      promptly appoint a successor Indenture Trustee.

     

    A
      successor Indenture Trustee shall deliver a written acceptance of its
      appointment to the retiring Indenture Trustee and to the Issuer. Thereupon,
      the
      resignation or removal of the retiring Indenture Trustee shall become effective,
      and the successor Indenture Trustee shall have all the rights, powers and duties
      of the Indenture Trustee under this Indenture. The successor Indenture Trustee
      shall mail a notice of its succession to Noteholders. The retiring Indenture
      Trustee shall promptly transfer all property held by it as Indenture Trustee
      to
      the successor Indenture Trustee.

     

    If
      a
      successor Indenture Trustee does not take office within 30 days after the
      retiring Indenture Trustee resigns or is removed, the retiring Indenture
      Trustee, the Issuer or the Holders of a majority of Note Balances of the Notes
      may petition any court of competent jurisdiction for the appointment of a
      successor Indenture Trustee.

     

    Notwithstanding
      the replacement of the Indenture Trustee pursuant to this Section, the Issuer’s
      obligations under Section 6.07 shall continue for the benefit of the
      retiring Indenture Trustee.

     

    Section
      6.09.  Successor
      Indenture Trustee by Merger.
      If the
      Indenture Trustee consolidates with, merges or converts into, or transfers
      all
      or substantially all of its corporate trust business or assets to, another
      corporation or banking association, the resulting, surviving or transferee
      corporation, without any further act, shall be the successor Indenture Trustee;
      provided, that such corporation or banking association shall be otherwise
      qualified and eligible under Section 6.11 hereof. The Indenture Trustee shall
      provide the Rating Agencies with prior written notice of any such
      transaction.

     

    If
      at the
      time such successor or successors by merger, conversion or consolidation to
      the
      Indenture Trustee shall succeed to the trusts created by this Indenture and
      any
      of the Notes shall have been authenticated but not delivered, any such successor
      to the Indenture Trustee may adopt the certificate of authentication of any
      predecessor trustee and deliver such Notes so authenticated; and if at that
      time
      any of the Notes shall not have been authenticated, any successor to the
      Indenture Trustee may authenticate such Notes either in the name of any
      predecessor hereunder or in the name of the successor to the Indenture Trustee;
      and in all such cases such certificates shall have the full force which it
      is in
      the Notes or in this Indenture provided that the certificate of the Indenture
      Trustee shall have.

     

    Section
      6.10.  Appointment
      of Co-Indenture Trustee or Separate Indenture Trustee.

     

    (a)  Notwithstanding
      any other provisions of this Indenture, at any time, for the purpose of meeting
      any legal requirement of any jurisdiction in which any part of the Trust Estate
      may at the time be located, the Indenture Trustee shall have the power and
      may
      execute and deliver all instruments to appoint one or more Persons to act as
      a
      co-trustee or co-trustees, or separate trustee or separate trustees, of all
      or
      any part of the Trust Estate, and to vest in such Person or Persons, in such
      capacity and for the benefit of the Noteholders, such title to the Trust Estate,
      or any part hereof, and, subject to the other provisions of this Section, such
      powers, duties, obligations, rights and trusts as the Indenture Trustee may
      consider necessary or desirable. No co-trustee or separate trustee hereunder
      shall be required to meet the terms of eligibility as a successor trustee under
      Section 6.11 hereof.

     

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

     

    (i)  all
      rights, powers, duties and obligations conferred or imposed upon the Indenture
      Trustee shall be conferred or imposed upon and exercised or performed by the
      Indenture 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 Indenture 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 Indenture Trustee shall be incompetent or
      unqualified to perform such act or acts, in which event such rights, powers,
      duties and obligations (including the holding of title to the Trust 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 Indenture Trustee;

     

    (ii)  no
      trustee hereunder shall be personally liable by reason of any act or omission of
      any other trustee hereunder; and

     

    (iii)  the
      Indenture Trustee may at any time accept the resignation of or remove any
      separate trustee or co-trustee.

     

    (c)  Any
      notice, request or other writing given to the Indenture 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 Indenture and the conditions
      of this Article VI. Each separate trustee and co-trustee, upon its acceptance
      of
      the trusts conferred, shall be vested with the estates or property specified
      in
      its instrument of appointment, either jointly with the Indenture Trustee or
      separately, as may be provided therein, subject to all the provisions of this
      Indenture, specifically including every provision of this Indenture relating
      to
      the conduct of, affecting the liability of, or affording protection to, the
      Indenture Trustee. Every such instrument shall be filed with the Indenture
      Trustee.

     

    (d)  Any
      separate trustee or co-trustee may at any time constitute the Indenture Trustee,
      its agent or attorney-in-fact with full power and authority, to the extent
      not
      prohibited by law, to do any lawful act under or in respect of this Indenture
      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
      Indenture Trustee, to the extent permitted by law, without the appointment
      of a
      new or successor trustee.

     

    Section
      6.11.  Eligibility;
      Disqualification.  The
      Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a).
      The Indenture Trustee shall have a combined capital and surplus of at least
      $50,000,000 as set forth in its most recent published annual report of condition
      and it or its parent shall have a long-term debt rating of “Baa3” or better by
      Moody’s and “BBB” or better by S&P and Fitch. The Indenture Trustee shall
      comply with TIA § 310(b), including the optional provision permitted by the
      second sentence of TIA § 310(b)(9); provided,
      however,
      that
      there shall be excluded from the operation of TIA § 310(b)(1) any indenture or
      indentures under which other securities of the Issuer are outstanding if the
      requirements for such exclusion set forth in TIA § 310(b)(1) are
      met.

     

    Section
      6.12.  Preferential
      Collection of Claims Against Issuer.
      The
      Indenture Trustee shall comply with TIA § 311(a), excluding any creditor
      relationship listed in TIA § 311(b). An Indenture Trustee who has resigned or
      been removed shall be subject to TIA § 311(a) to the extent
      indicated.

     

    Section
      6.13.  Representations
      and Warranties.  The
      Indenture Trustee hereby represents that:

     

    (i)  It
      is a
      national banking association duly organized, validly existing and in good
      standing under the laws of the United States.

     

    (ii)  The
      execution and delivery of this Indenture by it, and the performance and
      compliance with the terms of this Indenture by it, will not violate its charter
      or bylaws.

     

    (iii)  It
      has
      the full power and authority to enter into and consummate all transactions
      contemplated by this Indenture has duly authorized the execution, delivery
      and
      performance of this Indenture, and has duly executed and delivered this
      Indenture.

     

    (iv)  This
      Indenture, assuming due authorization, execution and delivery by the Issuer,
      constitutes a valid, legal and binding obligation of it, enforceable against
      it
      in accordance with the terms hereof, subject to (A) applicable bankruptcy,
      insolvency, receivership, reorganization, moratorium and other laws affecting
      the enforcement of creditors’ rights generally, and (B) general principles of
      equity, regardless of whether such enforcement is considered in a proceeding
      in
      equity or at law.

     

    (v)  The
      Indenture Trustee is a “securities intermediary,” as such term is defined in
      Section 8-102(a)(14)(B) of the New York UCC, that in the ordinary course of
      its
      business maintains “securities accounts” for others, as such term is used in
      Section 8-501 of the New York UCC.

     

    (vi)  The
      “securities intermediary’s jurisdiction” as defined in the New York UCC shall be
      the State of New York.

     

    (vii)  The
      Indenture Trustee is not a “clearing corporation”, as such term is defined in
      Section 8-102(a)(5) of the New York UCC.

     

    Section
      6.14.  Directions
      to Indenture Trustee. 
      The Indenture Trustee is hereby directed:

     

    (i)  to
      accept
      the pledge of the Mortgage Loans and hold the assets of the Trust Estate in
      trust for the Noteholders;

     

    (ii)  to
      authenticate and deliver the Notes substantially in the form prescribed by
      Exhibits A-1 through A-14 to this Indenture in accordance with the terms of
      this
      Indenture; and

     

    (iii)  to
      take
      all other actions as shall be required to be taken by the terms of this
      Indenture.

     

    Section
      6.15.  The
      Agents.  The
      provisions of this Indenture relating to the limitations of the Indenture
      Trustee’s liability and to its indemnity, rights and protections shall inure
      also to the Paying Agent and Note Registrar.

     

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

ARTICLE
      VII

     

    NOTEHOLDERS’
      LISTS AND REPORTS

     

    Section
      7.01.  Issuer
      To Furnish Indenture Trustee Names and Addresses of Noteholders.

     

    The
      Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not
      more than five days after each Record Date, a list, in such form as the
      Indenture Trustee may reasonably require, of the names and addresses of the
      Holders of Notes as of such Record Date, (b) at such other times as the
      Indenture Trustee may request in writing, within 30 days after receipt by the
      Issuer of any such request, a list of similar form and content as of a date
      not
      more than 10 days prior to the time such list is furnished; provided,
      however,
      that so
      long as the Indenture Trustee is the Note Registrar, no such list shall be
      required to be furnished to the Indenture Trustee.

     

    Section
      7.02.  Preservation
      of Information; Communications to Noteholders.

     

    (a)  The
      Indenture Trustee shall preserve, in as current a form as is reasonably
      practicable, the names and addresses of the Holders of Notes contained in the
      most recent list furnished to the Indenture Trustee as provided in Section
      7.01
      hereof and the names and addresses of Holders of Notes received by the Indenture
      Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy
      any
      list furnished to it as provided in such Section 7.01 upon receipt of a new
      list
      so furnished.

     

    (b)  Noteholders
      or Note Owners may communicate pursuant to TIA § 312(b) with other Noteholders
      or Note Owners with respect to their rights under this Indenture or under the
      Notes.

     

    (c)  The
      Issuer, the Indenture Trustee and the Note Registrar shall have the protection
      of TIA § 312(c).

     

    Section
      7.03.  Reports
      of Issuer.

     

    (a)  Subject
      to Section 4.02 of the Servicing Agreement,

     

    (i)  The
      Indenture Trustee shall file with the Commission on behalf of the Issuer, with
      a
      copy to the Issuer within 15 days before the Issuer is required to file the
      same
      with the Commission, the annual reports and the information, documents and
      other
      reports (or such portions of any of the foregoing as the Commission may from
      time to time by rules and regulations prescribe) that the Issuer may be required
      to file with the Commission pursuant to Section 13 or 15(d) of the Exchange
      Act;

     

    (ii)  The
      Indenture Trustee shall file with the Commission, on behalf of the Issuer,
      in
      accordance with rules and regulations prescribed from time to time by the
      Commission such additional information, documents and reports with respect
      to
      compliance by the Issuer with the conditions and covenants of this Indenture
      as
      may be required from time to time by such rules and regulations;
      and

     

    (iii)  The
      Indenture Trustee shall supply (and the Indenture Trustee shall transmit by
      mail
      to all Noteholders described in TIA § 313(c)) such summaries of any information,
      documents and reports required to be filed by the Issuer pursuant to clauses
      (i)
      and (ii) of this Section 7.03(a) and by rules and regulations prescribed from
      time to time by the Commission.

     

    (b)  Unless
      the Issuer otherwise determines, the fiscal year of the Issuer shall end on
      December 31st
      of each
      year.

     

    Section
      7.04.  Reports
      by Indenture Trustee.
      If
      required by TIA § 313(a), within 60 days after each January 30th
      beginning with March 31, 2007, the Indenture Trustee shall mail to each
      Noteholder as required by TIA § 313(c) a brief report dated as of such date that
      complies with TIA § 313(a). The Indenture Trustee also shall comply with TIA §
313(b).

     

    A
      copy of
      each report at the time of its mailing to Noteholders shall be filed by the
      Indenture Trustee with the Commission via EDGAR and each stock exchange, if
      any,
      on which the Notes are listed. The Issuer shall notify the Indenture Trustee
      if
      and when the Notes are listed on any stock exchange.

     

    Section
      7.05.  Statements
      to Noteholders.

     

    (a)  With
      respect to each Payment Date, the Indenture Trustee shall make available via
      the
      Indenture Trustee’s website https://www.tss.db.com/invr or deliver at the
      recipient’s option to each Noteholder and each Certificateholder, the Depositor,
      the Owner Trustee, the Certificate Paying Agent and each Rating Agency, a
      statement setting forth the following information as to the Notes, to the extent
      applicable:

     

    (i)  the
      amount of the payment made on such Payment Date to the Holders of the Notes
      of
      each Class allocable to principal;

     

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

     

    (iii)  the
      fees
      and expenses of the Trust accrued and paid on such Payment Date and to whom
      such
      fees and expenses were paid;

     

    (iv)  the
      aggregate amount of P&I Advances for such Payment Date (including the
      general purpose of such P&I Advances);

     

    (v)  the
      aggregate Stated Principal Balance of the Mortgage Loans and any REO Properties
      as of the close of business on such Payment Date;

     

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

     

    (vii)  the
      number and aggregate unpaid principal balance of Mortgage Loans (a) delinquent
      30 to 59 days, (b) delinquent 60 to 89 days, (c) delinquent 90 or more days,
      in
      each case, as of the last day of the preceding calendar month, (d) as to which
      foreclosure proceedings have been commenced and (e) with respect to which the
      related Mortgagor has filed for protection under applicable bankruptcy laws,
      with respect to whom bankruptcy proceedings are pending or with respect to
      whom
      bankruptcy protection is in force;

     

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

     

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

     

    (x)  the
      aggregate amount of Realized Losses incurred during the related Prepayment
      Period and the aggregate amount of Realized Losses incurred since the Closing
      Date and the aggregate amount of Subsequent Recoveries received during the
      Prepayment Period and the cumulative amount of Subsequent Recoveries received
      since the Closing Date;

     

    (xi)  the
      aggregate Note Balance of each Class of Notes, before and after giving effect
      to
      the payments, and allocations of Realized Losses, made on such Payment
      Date;

     

    (xii)  the
      Interest Payment Amount in respect of the Class A Notes and the Mezzanine Notes
      for such Payment Date and the Interest Carry Forward Amount, if any, with
      respect to the Class A Notes and the Mezzanine Notes on such Payment
      Date;

     

    (xiii)  the
      aggregate amount of any Prepayment Interest Shortfall for such Payment Date,
      to
      the extent not covered by payments by the Servicer pursuant to Section 3.24
      of
      the Servicing Agreement;

     

    (xiv)  the
      aggregate amount of Relief Act Interest Shortfalls for such Payment
      Date;

     

    (xv)  the
      Net
      Monthly Excess Cashflow, the Overcollateralized Amount, the
      Overcollateralization Reduction Amount, Overcollateralization Increase Amount,
      the Overcollateralization Target Amount, the Credit Enhancement Percentage
      for
      such Payment Date;

     

    (xvi)  the
      respective Note Rates applicable to the Class A Notes and the Mezzanine Notes
      for such Payment Date and the Note Rate applicable to the Class A Notes and
      the
      Mezzanine Notes for the immediately succeeding Payment Date;

     

    (xvii)  the
      Basis
      Risk Shortfall for the Class A Notes and the Mezzanine Notes, if any, for such
      Payment Date and the amount remaining unpaid after reimbursements therefor
      on
      such Payment Date;

     

    (xviii)  whether
      the Stepdown Date or a Trigger Event is in effect on such Payment Date;

     

    (xix)  the
      Delinquency Percentage and Realized Loss Percentage for such Payment
      Date;

     

    (xx)  the
      amount of Prepayment Charges collected or paid by the Servicer for such Payment
      Date;

     

    (xxi)  the
      total
      cashflows received and the general sources thereof; and

     

    (xxii)  the
      applicable Record Dates, Interest Accrual Periods and Interest Determination
      Dates for calculating payments for such Payment Date.

     

    Items
      (i)
      and (ii) above shall be presented on the basis of a Note having a $1,000
      denomination. In addition, by January 31st
      of each
      calendar year following any year during which the Notes are outstanding, the
      Indenture Trustee shall furnish a report to each Noteholder of record if so
      requested in writing at any time during each calendar year as to the aggregate
      of amounts reported pursuant to (i) and (ii) with respect to the Notes for
      such
      calendar year.

     

    (b)  The
      Indenture Trustee may conclusively rely upon the Remittance Report provided
      by
      the Servicer pursuant to Section 4.01 of the Servicing Agreement in its
      preparation of its Statement to Noteholders.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
ARTICLE
      VIII

     

    ACCOUNTS,
      DISBURSEMENTS AND RELEASES

     

    Section
      8.01.  Collection
      of Money.
      Except
      as otherwise expressly provided herein, the Indenture Trustee may demand payment
      or delivery of, and shall receive and collect, directly and without intervention
      or assistance of any fiscal agent or other intermediary, all money and other
      property payable to or receivable by the Indenture Trustee pursuant to this
      Indenture. The Indenture Trustee shall apply all such money received by it
      as
      provided in this Indenture. Except as otherwise expressly provided in this
      Indenture, if any default occurs in the making of any payment or performance
      under any agreement or instrument that is part of the Trust Estate, the
      Indenture Trustee may take such action as may be appropriate to enforce such
      payment or performance, including the institution and prosecution of appropriate
      Proceedings. Any such action shall be without prejudice to any right to claim
      a
      Default or Event of Default under this Indenture and any right to proceed
      thereafter as provided in Article V.

     

    Section
      8.02.  Trust
      Accounts.

     

    (a)  On
      or
      prior to the Closing Date, the Issuer shall cause the Indenture Trustee to
      establish and maintain, in the name of the Indenture Trustee, for the benefit
      of
      the Noteholders, the Payment Account as provided in Section 3.01
      hereof.

     

    (b)  On
      each
      Payment Date, the Indenture Trustee shall pay itself the Indenture Trustee
      Fee
      and any expenses owing to it for such Payment Date and shall pay the Owner
      Trustee the Owner Trustee Fee and its Expenses, and then the Indenture Trustee
      shall pay all remaining amounts on deposit in the Payment Account to the
      Noteholders in respect of the Notes and to such other persons in the order
      of
      priority set forth in Section 3.05 hereof (except as otherwise provided in
      Section 5.04(b) hereof).

     

    (c)  Pursuant
      to Section 3.12 of the Servicing Agreement, funds in the Payment Account shall
      remain uninvested unless the Indenture Trustee is otherwise directed by the
      Servicer in Section 3.10(d) of the Servicing Agreement.

     

    Section
      8.03.  Officer’s
      Certificate.
      The
      Indenture Trustee shall receive at least seven Business Days’ notice when
      requested by the Issuer to take any action pursuant to Section 8.05(a) hereof,
      accompanied by copies of any instruments to be executed, and the Indenture
      Trustee shall also require, as a condition to such action, an Officer’s
      Certificate, in form and substance satisfactory to the Indenture Trustee,
      stating the legal effect of any such action, outlining the steps required to
      complete the same, and concluding that all conditions precedent to the taking
      of
      such action have been complied with.

     

    Section
      8.04.  Termination
      Upon Distribution to Noteholders.
      This
      Indenture and the respective obligations and responsibilities of the Issuer
      and
      the Indenture Trustee created hereby shall terminate upon the payment to
      Noteholders, the Certificate Paying Agent on behalf of the Owner Trustee, the
      Certificateholders and the Indenture Trustee of all amounts required to be
      paid
      pursuant to Article III; provided,
      however,
      that in
      no event shall the trust created hereby continue beyond the expiration of 21
      years from the death of the survivor of the descendants of Joseph P. Kennedy,
      the late ambassador of the United States to the Court of St. James, living
      on
      the date hereof.

     

    Section
      8.05.  Release
      of Trust Estate.

     

    (a)  Subject
      to the payment of its fees and expenses, the Indenture Trustee may, and when
      required by the provisions of this Indenture shall, execute instruments to
      release property from the lien of this Indenture, or convey the Indenture
      Trustee’s interest in the same, in a manner and under circumstances that are not
      inconsistent with the provisions of this Indenture, including for the purposes
      of any repurchase by the Servicer of a Mortgage Loan pursuant to Section 3.16
      of
      the Servicing Agreement. No party relying upon an instrument executed by the
      Indenture Trustee as provided in Article VIII hereunder shall be bound to
      ascertain the Indenture Trustee’s authority, inquire into the satisfaction of
      any conditions precedent, or see to the application of any monies.

     

    (b)  The
      Indenture Trustee shall, at such time as (i) there are no Notes Outstanding
      and
      (ii) all sums due to the Indenture Trustee pursuant to this Indenture have
      been
      paid, release any remaining portion of the Trust Estate that secured the Notes
      from the lien of this Indenture.

     

    (c)  The
      Indenture Trustee shall release property from the lien of this Indenture
      pursuant to this Section 8.05 only upon receipt of a request from the Issuer
      accompanied by an Officers’ Certificate and an Opinion of Counsel stating that
      all applicable requirements have been satisfied.

     

    Section
      8.06.  Surrender
      of Notes Upon Final Payment.
      By
      acceptance of any Note, the Holder thereof agrees to surrender such Note to
      the
      Indenture Trustee promptly, prior to such Noteholder’s receipt of the final
      payment thereon.

     

    Section
      8.07.  Optional
      Redemption of the Notes.

     

    (a)  The
      Holder of the Owner Trust Certificates (in such capacity, the “Terminator”)
      shall have the option to purchase the Mortgage Loans and any REO Properties
      on
      any Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date. The aggregate purchase price will be equal
      to
      the greater of (i) the Stated Principal Balance of the Mortgage Loans and the
      appraised value of any REO Properties, such appraisal to be conducted by an
      Independent appraiser mutually agreed upon by the Terminator and the Indenture
      Trustee in their reasonable discretion and (ii) the fair market value of the
      Mortgage Loans and the REO Properties (as determined by the Terminator and,
      to
      the extent that a Class of Class A Notes or a Class of Mezzanine Notes will
      not
      receive all amounts owed to it as a result of the purchase, the Indenture
      Trustee (it being understood and agreed that any determination by the Indenture
      Trustee shall be made solely in reliance on an appraisal by an Independent
      appraiser as provided above)), in each case plus accrued and unpaid interest
      thereon at the weighted average of the Mortgage Rates through the end of the
      Due
      Period preceding the final Payment Date plus unreimbursed Servicing Advances,
      P&I Advances, any unpaid Servicing Fees allocable to such Mortgage Loans and
      REO Properties and any accrued and unpaid Basis Risk Shortfalls then remaining
      unpaid or which is due to the exercise of such option (the “Redemption Price”);
      provided, however, that the Terminator will not be permitted to purchase the
      Mortgage Loans unless the Redemption Price is sufficient to retire the Note
      Balance of the remaining Notes to zero. If the determination of the fair market
      value of the Mortgage Loans and REO Properties shall be required to be made
      by
      the Terminator and an Independent appraiser as provided above, (A) such
      appraisal shall be obtained at no expense to the Indenture Trustee and (B)
      the
      Indenture Trustee may conclusively rely on, and shall be protected in relying
      on, such appraisal.

     

    (b)  In
      order
      to exercise the foregoing option, the Terminator shall provide written notice
      of
      its exercise of such option to the Indenture Trustee and the Owner Trustee
      at
      least 15 days prior to its exercise. Following receipt of the notice, the
      Indenture Trustee shall provide notice to the Noteholders of the final payment
      on the Notes. In addition, the Terminator shall, not less than one Business
      Day
      prior to the proposed Payment Date on which such redemption is to be made,
      deposit the aggregate redemption price specified in (a) above with the Indenture
      Trustee, who shall deposit the aggregate redemption price into the Payment
      Account and shall, on the Payment Date after receipt of the funds, apply such
      funds to make final payments of principal and interest on the Notes in
      accordance with Section 3.05(b) and (c) hereof and payment in full to the
      Indenture Trustee, and this Indenture shall be discharged subject to the
      provisions of Section 4.10 hereof. If for any reason the amount deposited by
      the
      Terminator is not sufficient to make such redemption or such redemption cannot
      be completed for any reason, the amount so deposited by the Terminator with
      the
      Indenture Trustee shall be immediately returned to the Terminator in full and
      shall not be used for any other purpose or be deemed to be part of the Trust
      Estate.

     

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
ARTICLE
      IX

     

    SUPPLEMENTAL
      INDENTURES

     

    Section
      9.01.  Supplemental
      Indentures Without Consent of Noteholders.

     

    (a)  Without
      the consent of the Holders of any Notes but with prior notice to the Rating
      Agencies, the Issuer and the Indenture Trustee, when authorized by an Issuer
      Request, at any time and from time to time, may enter into one or more
      indentures supplemental hereto (which shall conform to the provisions of the
      TIA
      as in force at the date of the execution thereof), in form satisfactory to
      the
      Indenture Trustee, for any of the following purposes:

     

    (i)  to
      correct or amplify the description of any property at any time subject to the
      lien of this Indenture, or better to assure, convey and confirm unto the
      Indenture Trustee any property subject or required to be subjected to the lien
      of this Indenture, or to subject to the lien of this Indenture additional
      property;

     

    (ii)  to
      evidence the succession, in compliance with the applicable provisions hereof,
      of
      another person to the Issuer, and the assumption by any such successor of the
      covenants of the Issuer herein and in the Notes contained;

     

    (iii)  to
      add to
      the covenants of the Issuer, for the benefit of the Holders of the Notes, or
      to
      surrender any right or power herein conferred upon the Issuer;

     

    (iv)  to
      convey, transfer, assign, mortgage or pledge any property to or with the
      Indenture Trustee;

     

    (v)  to
      cure
      any ambiguity, to correct or supplement any provision herein or in any
      supplemental indenture that may be inconsistent with any other provision herein
      or in any supplemental indenture;

     

    (vi)  to
      make
      any other provisions with respect to matters or questions arising under this
      Indenture or in any supplemental indenture; provided, that such action (as
      evidenced by either (i) an Opinion of Counsel delivered to the Servicer and
      the
      Indenture Trustee or (ii) confirmation from the Rating Agencies that such
      amendment will not result in the reduction or withdrawal of the rating of any
      Class of Notes) shall not materially and adversely affect the interests of
      the
      Holders of the Notes;

     

    (vii)  to
      evidence and provide for the acceptance of the appointment hereunder by a
      successor trustee with respect to the Notes and to add to or change any of
      the
      provisions of this Indenture as shall be necessary to facilitate the
      administration of the trusts hereunder by more than one trustee, pursuant to
      the
      requirements of Article VI hereof; or

     

    (viii)  to
      modify, eliminate or add to the provisions of this Indenture to such extent
      as
      shall be necessary to effect the qualification of this Indenture under the
      TIA
      or under any similar federal statute hereafter enacted and to add to this
      Indenture such other provisions as may be expressly required by the
      TIA;

     

    provided,
      however,
      that no
      such indenture supplements shall be entered into unless the Indenture Trustee
      shall have received an Opinion of Counsel as to the enforceability of any such
      indenture supplement and to the effect that (i) such indenture supplement is
      permitted hereunder and (ii) entering into such indenture supplement will not
      result in a “substantial modification” of the Notes under Treasury Regulation
      Section 1.1001-3 or adversely affect the status of the Notes as indebtedness
      for
      federal income tax purposes.

     

    The
      Indenture Trustee is hereby authorized to join in the execution of any such
      supplemental indenture and to make any further appropriate agreements and
      stipulations that may be therein contained.

     

    (b)  The
      Issuer and the Indenture Trustee, when authorized by an Issuer Request, may,
      also without the consent of any of the Holders of the Notes and prior notice
      to
      the Rating Agencies, enter into an indenture or indentures supplemental hereto
      for the purpose of adding any provisions to, or changing in any manner or
      eliminating any of the provisions of, this Indenture or of modifying in any
      manner the rights of the Holders of the Notes under this Indenture; provided,
      however,
      that
      such action as evidenced by an Opinion of Counsel, (i) is permitted by this
      Indenture, and shall not (ii) adversely affect in any material respect the
      interests of any Noteholder (which may be evidenced by confirmation from the
      Rating Agencies that such amendment will not result in the reduction or
      withdrawal of the rating of any Class of Notes) or (iii) if 100% of the
      Certificates are not owned by the Seller, cause the Issuer to be subject to
      an
      entity level tax for federal income tax purposes.

     

    Section
      9.02.  Supplemental
      Indentures With Consent of Noteholders.
      The
      Issuer and the Indenture Trustee, when authorized by an Issuer Request, also
      may, with prior notice to the Rating Agencies and, with the consent of the
      Holders of not less than a majority of the Note Balance of each Class of Notes
      affected thereby, by Act (as defined in Section 10.03 hereof) of such Holders
      delivered to the Issuer and the Indenture Trustee, enter into an indenture
      or
      indentures supplemental hereto for the purpose of adding any provisions to,
      or
      changing in any manner or eliminating any of the provisions of, this Indenture
      or of modifying in any manner the rights of the Holders of the Notes under
      this
      Indenture; provided,
      however,
      that no
      such supplemental indenture shall, without the consent of the Holder of each
      Note affected thereby:

     

    (i)  change
      the date of payment of any installment of principal of or interest on any Note,
      or reduce the principal amount thereof or the interest rate thereon, change
      the
      provisions of this Indenture relating to the application of collections on,
      or
      the proceeds of the sale of, the Trust Estate to payment of principal of or
      interest on the Notes, or change any place of payment where, or the coin or
      currency in which, any Note or the interest thereon is payable, or impair the
      right to institute suit for the enforcement of the provisions of this Indenture
      requiring the application of funds available therefor, as provided in Article
      V,
      to the payment of any such amount due on the Notes on or after the respective
      due dates thereof;

     

    (ii)  reduce
      the percentage of the Note Balances of the Notes, the consent of the Holders
      of
      which is required for any such supplemental indenture, or the consent of the
      Holders of which is required for any waiver of compliance with certain
      provisions of this Indenture or certain defaults hereunder and their
      consequences provided for in this Indenture;

     

    (iii)  modify
      or
      alter the provisions of the proviso to the definition of the term “Outstanding”
or modify or alter the exception in the definition of the term
“Holder”;

     

    (iv)  reduce
      the percentage of the Note Balances of the Notes required to direct the
      Indenture Trustee to direct the Issuer to sell or liquidate the Trust Estate
      pursuant to Section 5.04 hereof;

     

    (v)  modify
      any provision of this Section 9.02 except to increase any percentage specified
      herein or to provide that certain additional provisions of this Indenture or
      the
      Basic Documents cannot be modified or waived without the consent of the Holder
      of each Note affected thereby;

     

    (vi)  modify
      any of the provisions of this Indenture in such manner as to affect the
      calculation of the amount of any payment of interest or principal due on any
      Note on any Payment Date (including the calculation of any of the individual
      components of such calculation); or

     

    (vii)  permit
      the creation of any lien ranking prior to or on a parity with the lien of this
      Indenture with respect to any part of the Trust Estate or, except as otherwise
      permitted or contemplated herein, terminate the lien of this Indenture on any
      property at any time subject hereto or deprive the Holder of any Note of the
      security provided by the lien of this Indenture;

     

    and
      provided,
      further,
      that
      such action shall not, as evidenced by an Opinion of Counsel, cause the Issuer
      (if 100% of the Certificates are not owned by the Seller) to be subject to
      an
      entity level tax.

     

    Any
      such
      action shall not (as evidenced by either (i) an Opinion of Counsel delivered
      to
      the Servicer and the Indenture Trustee or (ii) confirmation from the Rating
      Agencies that such amendment will not result in the reduction or withdrawal
      of
      the rating of any Class of Notes) adversely affect in any material respect
      the
      interest of any Holder (other than a Holder who shall consent to such
      supplemental indenture).

     

    It
      shall
      not be necessary for any Act of Noteholders under this Section 9.02 to approve
      the particular form of any proposed supplemental indenture, but it shall be
      sufficient if such Act shall approve the substance thereof.

     

    Promptly
      after the execution by the Issuer and the Indenture Trustee of any supplemental
      indenture pursuant to this Section 9.02, the Indenture Trustee shall mail to
      the
      Holders of the Notes to which such amendment or supplemental indenture relates
      a
      notice setting forth in general terms the substance of such supplemental
      indenture. Any failure of the Indenture Trustee to mail such notice, or any
      defect therein, shall not, however, in any way impair or affect the validity
      of
      any such supplemental indenture.

     

    Section
      9.03.  Execution
      of Supplemental Indentures.
      In
      executing, or permitting the additional trusts created by, any supplemental
      indenture permitted by this Article IX or the modification thereby of the trusts
      created by this Indenture, the Indenture Trustee shall be entitled to receive,
      and subject to Sections 6.01 and 6.02 hereof, shall be fully protected in
      relying upon, an Opinion of Counsel stating that the execution of such
      supplemental indenture is authorized or permitted by this Indenture. The
      Indenture Trustee may, but shall not be obligated to, enter into any such
      supplemental indenture that affects the Indenture Trustee’s own rights, duties,
      liabilities or immunities under this Indenture or otherwise.

     

    Section
      9.04.  Effect
      of Supplemental Indenture.
      Upon
      the execution of any supplemental indenture pursuant to the provisions hereof,
      this Indenture shall be and shall be deemed to be modified and amended in
      accordance therewith with respect to the Notes affected thereby, and the
      respective rights, limitations of rights, obligations, duties, liabilities
      and
      immunities under this Indenture of the Indenture Trustee, the Issuer and the
      Holders of the Notes shall thereafter be determined, exercised and enforced
      hereunder subject in all respects to such modifications and amendments, and
      all
      the terms and conditions of any such supplemental indenture shall be and be
      deemed to be part of the terms and conditions of this Indenture for any and
      all
      purposes.

     

    Section
      9.05.  Conformity
      with Trust Indenture Act.
      Every
      amendment of this Indenture and every supplemental indenture executed pursuant
      to this Article IX shall conform to the requirements of the Trust Indenture
      Act
      as then in effect so long as this Indenture shall then be qualified under the
      Trust Indenture Act.

     

    Section
      9.06.  Reference
      in Notes to Supplemental Indentures.  Notes
      authenticated and delivered after the execution of any supplemental indenture
      pursuant to this Article IX may, and if required by the Indenture Trustee shall,
      bear a notation in form approved by the Indenture Trustee as to any matter
      provided for in such supplemental indenture. If the Issuer or the Indenture
      Trustee shall so determine, new Notes so modified as to conform, in the opinion
      of the Indenture Trustee and the Issuer, to any such supplemental indenture
      may
      be prepared and executed by the Issuer and authenticated and delivered by the
      Indenture Trustee in exchange for Outstanding Notes.

     

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    ARTICLE
      X

     

    MISCELLANEOUS

     

    Section
      10.01.  Compliance
      Certificates and Opinions, etc.

     

    (a)  Upon
      any
      application or request by the Issuer to the Indenture Trustee to take any action
      under any provision of this Indenture, the Issuer shall furnish to the Indenture
      Trustee (i) an Officer’s Certificate stating that all conditions precedent, if
      any, provided for in this Indenture relating to the proposed action have been
      complied with and (ii) an Opinion of Counsel stating that in the opinion of
      such
      counsel all such conditions precedent, if any, have been complied with, except
      that, in the case of any such application or request as to which the furnishing
      of such documents is specifically required by any provision of this Indenture,
      no additional certificate or opinion need be furnished.

     

    Every
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture shall include:

     

    (i)  a
      statement that each signatory of such certificate or opinion has read or has
      caused to be read such covenant or condition and the definitions herein relating
      thereto;

     

    (ii)  a
      brief
      statement as to the nature and scope of the examination or investigation upon
      which the statements or opinions contained in such certificate or opinion are
      based;

     

    (iii)  a
      statement that, in the opinion of each such signatory, such signatory has made
      such examination or investigation as is necessary to enable such signatory
      to
      express an informed opinion as to whether or not such covenant or condition
      has
      been complied with;

     

    (iv)  a
      statement as to whether, in the opinion of each such signatory, such condition
      or covenant has been complied with; and

     

    (v)  if
      the
      signatory of such certificate or opinion is required to be Independent, the
      statement required by the definition of the term “Independent
      Certificate.”

     

    (b)  (i)
      Prior
      to the deposit of any Collateral or other property or securities with the
      Indenture Trustee that is to be made the basis for the release of any property
      or securities subject to the lien of this Indenture, the Issuer shall, in
      addition to any obligation imposed in Section 10.01(a) or elsewhere in this
      Indenture, furnish to the Indenture Trustee an Officer’s Certificate certifying
      or stating the opinion of each person signing such certificate as to the fair
      value (within 90 days prior to such deposit) to the Issuer of the Collateral
      or
      other property or securities to be so deposited and a report from a nationally
      recognized accounting firm verifying such value.

     

    (ii)  Whenever
      the Issuer is required to furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of any signer thereof as to the
      matters described in clause (i) above, the Issuer shall also deliver to the
      Indenture Trustee an Independent Certificate from a nationally recognized
      accounting firm as to the same matters, if the fair value of the securities
      to
      be so deposited and of all other such securities made the basis of any such
      withdrawal or release since the commencement of the then current fiscal year
      of
      the Issuer, as set forth in the certificates delivered pursuant to clause (i)
      above and this clause (ii), is 10% or more of the Note Balances of the Notes,
      but such a certificate need not be furnished with respect to any securities
      so
      deposited, if the fair value thereof as set forth in the related Officer’s
      Certificate is less than $25,000 or less than one percent of the Note Balances
      of the Notes.

     

    (iii)  Whenever
      any property or securities are to be released from the lien of this Indenture,
      the Issuer shall also furnish to the Indenture Trustee an Officer’s Certificate
      certifying or stating the opinion of each person signing such certificate as
      to
      the fair value (within 90 days prior to such release) of the property or
      securities proposed to be released and stating that in the opinion of such
      person the proposed release will not impair the security under this Indenture
      in
      contravention of the provisions hereof.

     

    (iv)  Whenever
      the Issuer is required to furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of any signer thereof as to the
      matters described in clause (iii) above, the Issuer shall also furnish to the
      Indenture Trustee an Independent Certificate as to the same matters if the
      fair
      value of the property or securities and of all other property or securities
      released from the lien of this Indenture since the commencement of the
      then-current calendar year, as set forth in the certificates required by clause
      (iii) above and this clause (iv), equals 10% or more of the Note Principal
      Balances of the Notes, but such certificate need not be furnished in the case
      of
      any release of property or securities if the fair value thereof as set forth
      in
      the related Officer’s Certificate is less than $25,000 or less than one percent
      of the then Note Principal Balances of the Notes.

     

    Section
      10.02.  Form
      of Documents Delivered to Indenture Trustee.
      In any
      case where several matters are required to be certified by, or covered by an
      opinion of, any specified Person, it is not necessary that all such matters
      be
      certified by, or covered by the opinion of, only one such Person, or that they
      be so certified or covered by only one document, but one such Person may certify
      or give an opinion with respect to some matters and one or more other such
      Persons as to other matters, and any such Person may certify or give an opinion
      as to such matters in one or several documents.

     

    Any
      certificate or opinion of an Authorized Officer of the Issuer may be based,
      insofar as it relates to legal matters, upon a certificate or opinion of, or
      representations by, counsel, unless such officer knows, or in the exercise
      of
      reasonable care should know, that the certificate or opinion or representations
      with respect to the matters upon which his certificate or opinion is based
      are
      erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel
      may be based, insofar as it relates to factual matters, upon a certificate
      or
      opinion of, or representations by, an officer or officers of the Seller or
      the
      Issuer, stating that the information with respect to such factual matters is
      in
      the possession of the Seller or the Issuer, unless such counsel knows, or in
      the
      exercise of reasonable care should know, that the certificate or opinion or
      representations with respect to such matters are erroneous.

     

    Where
      any
      Person is required to make, give or execute two or more applications, requests,
      consents, certificates, statements, opinions or other instruments under this
      Indenture, they may, but need not, be consolidated and form one
      instrument.

     

    Whenever
      in this Indenture, in connection with any application or certificate or report
      to the Indenture Trustee, it is provided that the Issuer shall deliver any
      document as a condition of the granting of such application, or as evidence
      of
      the Issuer’s compliance with any term hereof, it is intended that the truth and
      accuracy, at the time of the granting of such application or at the effective
      date of such certificate or report (as the case may be), of the facts and
      opinions stated in such document shall in such case be conditions precedent
      to
      the right of the Issuer to have such application granted or to the sufficiency
      of such certificate or report. The foregoing shall not, however, be construed
      to
      affect the Indenture Trustee’s right to rely upon the truth and accuracy of any
      statement or opinion contained in any such document as provided in Article
      VI.

     

    Section
      10.03.  Acts
      of Noteholders.

     

    (a)  Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given or taken by Noteholders may be
      embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such Noteholders in person or by agents duly appointed in
      writing; and except as herein otherwise expressly provided, such action shall
      become effective when such instrument or instruments are delivered to the
      Indenture Trustee, and, where it is hereby expressly required, to the Issuer.
      Such instrument or instruments (and the action embodied therein and evidenced
      thereby) are herein sometimes referred to as the “Act” of the Noteholders
      signing such instrument or instruments. Proof of execution of any such
      instrument or of a writing appointing any such agent shall be sufficient for
      any
      purpose of this Indenture and (subject to Section 6.01 hereof) conclusive in
      favor of the Indenture Trustee and the Issuer, if made in the manner provided
      in
      this Section 10.03 hereof.

     

    (b)  The
      fact
      and date of the execution by any person of any such instrument or writing may
      be
      proved in any manner that the Indenture Trustee deems sufficient.

     

    (c)  The
      ownership of Notes shall be proved by the Note Registrar.

     

    (d)  Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by the Holder of any Notes shall bind the Holder of every Note issued
      upon the registration thereof or in exchange therefor or in lieu thereof, in
      respect of anything done, omitted or suffered to be done by the Indenture
      Trustee or the Issuer in reliance thereon, whether or not notation of such
      action is made upon such Note.

     

    Section
      10.04.  Notices
      etc., to Indenture Trustee Issuer and Rating Agencies.

     

    Any
      request, demand, authorization, direction, notice, consent, waiver or Act of
      Noteholders or other documents provided or permitted by this Indenture shall
      be
      in writing and if such request, demand, authorization, direction, notice,
      consent, waiver or act of Noteholders is to be made upon, given or furnished
      to
      or filed with:

     

    (i)  the
      Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for
      every purpose hereunder if made, given, furnished or filed in writing to or
      with
      the Indenture Trustee at the Corporate Trust Office. The Indenture Trustee
      shall
      promptly transmit any notice received by it from the Noteholders to the Issuer;
      or

     

    (ii)  the
      Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for
      every purpose hereunder if in writing and mailed first-class, postage prepaid
      to
      the Issuer addressed to: New Century Alternative Mortgage Loan Trust 2006-ALT1,
      in care of Wilmington Trust Company, Rodney Square North, 1100 North Market
      Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust
      Administration, or at any other address previously furnished in writing to
      the
      Indenture Trustee by the Issuer. The Issuer shall promptly transmit any notice
      received by it from the Noteholders to the Indenture Trustee.

     

    Notices
      required to be given to the Rating Agencies by the Issuer, the Indenture Trustee
      or the Owner Trustee shall be in writing, mailed first-class postage pre-paid,
      to (i) in the case of Moody’s, at the following address: Moody’s Investors
      Service, Inc., Residential Mortgage Monitoring Department, 99 Church Street,
      New
      York, New York 10007, (ii) in the case of S&P, at the following address:
      Standard & Poor’s, 55 Water Street, 41st
      Floor,
      New York, New York 10041, Attention of Asset Backed Surveillance Department
      and
      (iii) in the case of Fitch Ratings, at the following address: Fitch Ratings,
      One
      State Street Plaza, New York, New York 10004; or as to each of the foregoing,
      at
      such other address as shall be designated by written notice to the other
      parties.

     

    Section
      10.05.  Notices
      to Noteholders; Waiver.
      Where
      this Indenture provides for notice to Noteholders of any event, such notice
      shall be sufficiently given (unless otherwise herein expressly provided) if
      in
      writing and mailed, first-class, postage prepaid to each Noteholder affected
      by
      such event, at such Person’s address as it appears on the Note Register, not
      later than the latest date, and not earlier than the earliest date, prescribed
      for the giving of such notice. In any case where notice to Noteholders is given
      by mail, neither the failure to mail such notice nor any defect in any notice
      so
      mailed to any particular Noteholder shall affect the sufficiency of such notice
      with respect to other Noteholders, and any notice that is mailed in the manner
      herein provided shall conclusively be presumed to have been duly given
      regardless of whether such notice is in fact actually received.

     

    Where
      this Indenture provides for notice in any manner, such notice may be waived
      in
      writing by any Person entitled to receive such notice, either before or after
      the event, and such waiver shall be the equivalent of such notice. Waivers
      of
      notice by Noteholders shall be filed with the Indenture Trustee but such filing
      shall not be a condition precedent to the validity of any action taken in
      reliance upon such a waiver.

     

    In
      case,
      by reason of the suspension of regular mail service as a result of a strike,
      work stoppage or similar activity, it shall be impractical to mail notice of
      any
      event to Noteholders when such notice is required to be given pursuant to any
      provision of this Indenture, then any manner of giving such notice as shall
      be
      satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving
      of such notice.

     

    Where
      this Indenture provides for notice to the Rating Agencies, failure to give
      such
      notice shall not affect any other rights or obligations created hereunder,
      and
      shall not under any circumstance constitute an Event of Default.

     

    Section
      10.06.  Conflict
      with Trust Indenture Act.
      If any
      provision hereof limits, qualifies or conflicts with another provision hereof
      that is required to be included in this Indenture by any of the provisions
      of
      the TIA, such required provision shall control.

     

    The
      provisions of TIA §§ 310 through 317 that impose duties on any Person (including
      the provisions automatically deemed included herein unless expressly excluded
      by
      this Indenture) are a part of and govern this Indenture, whether or not
      physically contained herein.

     

    Section
      10.07.  Effect
      of Headings.
      The
      Article and Section headings herein are for convenience only and shall not
      affect the construction hereof.

     

    Section
      10.08.  Successors
      and Assigns.  All
      covenants and agreements in this Indenture and the Notes by the Issuer shall
      bind its successors and assigns, whether so expressed or not. All agreements
      of
      the Indenture Trustee in this Indenture shall bind its successors, co-trustees
      and agents.

     

    Section
      10.09.  Separability.
      In case
      any provision in this Indenture or in the Notes shall be invalid, illegal or
      unenforceable, the validity, legality, and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

     

    Section
      10.10.  [Reserved.]

     

    Section
      10.11.  Legal
      Holidays.
      In any
      case where the date on which any payment is due shall not be a Business Day,
      then (notwithstanding any other provision of the Notes or this Indenture)
      payment need not be made on such date, but may be made on the next succeeding
      Business Day with the same force and effect as if made on the date on which
      nominally due, and no interest shall accrue for the period from and after any
      such nominal date.

     

    Section
      10.12.  GOVERNING
      LAW.  THIS
      INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK, 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
      10.13.  Counterparts.
      This
      Indenture may be executed in any number of counterparts, each of which so
      executed shall be deemed to be an original, but all such counterparts shall
      together constitute but one and the same instrument.

     

    Section
      10.14.  Recording
      of Indenture.
      If this
      Indenture is subject to recording in any appropriate public recording offices,
      such recording is to be effected by the Issuer and at its expense accompanied
      by
      an Opinion of Counsel at its expense (which may be counsel to the Indenture
      Trustee or any other counsel reasonably acceptable to the Indenture Trustee)
      to
      the effect that such recording is necessary either for the protection of the
      Noteholders or any other Person secured hereunder or for the enforcement of
      any
      right or remedy granted to the Indenture Trustee under this
      Indenture.

     

    Section
      10.15.  Issuer
      Obligation.  No
      recourse may be taken, directly or indirectly, with respect to the obligations
      of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
      this Indenture or any certificate or other writing delivered in connection
      herewith or therewith, against (i) the Indenture Trustee or the Owner Trustee
      in
      its individual capacity, (ii) any owner of a beneficial interest in the Issuer
      or (iii) any partner, owner, beneficiary, agent, officer, director, employee
      or
      agent of the Indenture Trustee or the Owner Trustee in its individual capacity,
      any holder of a beneficial interest in the Issuer, the Owner Trustee or the
      Indenture Trustee or of any successor or assign of the Indenture Trustee or
      the
      Owner Trustee in its individual capacity, except as any such Person may have
      expressly agreed (it being understood that the Indenture Trustee and the Owner
      Trustee have no such obligations in their individual capacity) and except that
      any such partner, owner or beneficiary shall be fully liable, to the extent
      provided by applicable law, for any unpaid consideration for stock, unpaid
      capital contribution or failure to pay any installment or call owing to such
      entity. For all purposes of this Indenture, 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 Article VI, VII and
      VIII of the Trust Agreement.

     

    Section
      10.16.  No
      Petition.  The
      Indenture Trustee, by entering into this Indenture, and each Noteholder, by
      accepting a Note, hereby covenant and agree that they will not at any time
      prior
      to one year from the date of termination hereof, institute against the Depositor
      or the Issuer, or join in any institution against the Depositor or the Issuer
      of, any bankruptcy, reorganization, arrangement, insolvency or liquidation
      proceedings, or other proceedings under any United States federal or state
      bankruptcy or similar law in connection with any obligations relating to the
      Notes, this Indenture or any of the Basic Documents, except for filing proofs
      of
      claim.

     

    Section
      10.17.  Inspection.
      The
      Issuer agrees that, at its expense, on reasonable prior notice, it shall permit
      any representative of the Indenture Trustee, during the Issuer’s normal business
      hours, to examine all the books of account, records, reports and other papers
      of
      the Issuer, to make copies and extracts therefrom, to cause such books to be
      audited by Independent certified public accountants, and to discuss the Issuer’s
      affairs, finances and accounts with the Issuer’s officers, employees, and
      Independent certified public accountants, all at such reasonable times and
      as
      often as may be reasonably requested. The Indenture Trustee shall cause its
      representatives to hold in confidence all such information except to the extent
      disclosure may be required by law (and all reasonable applications for
      confidential treatment are unavailing) and except to the extent that the
      Indenture Trustee may reasonably determine that such disclosure is consistent
      with its obligations hereunder.

     

    Section
      10.18.  No
      Recourse to Owner Trustee.
      It is
      expressly understood and agreed by the parties hereto that (a) this Indenture
      is
      executed and delivered by Wilmington Trust Company, not individually or
      personally, but solely as Owner Trustee of New Century Alternative Mortgage
      Loan
      Trust 2006-ALT1, in the exercise of the powers and authority conferred and
      vested in it, (b) each of the representations, undertakings and agreements
      herein made on the part of the Issuer is made and intended not as personal
      representations, undertakings and agreements by Wilmington Trust Company but
      is
      made and intended for the purpose for binding only the Issuer, (c) nothing
      herein contained shall be construed as creating any liability of Wilmington
      Trust Company, individually or personally, to perform any covenant either
      expressed or implied contained herein, all such liability, if any, being
      expressly waived by the parties hereto and by any Person claiming by, through
      or
      under the parties hereto and (d) under no circumstances shall Wilmington Trust
      Company be personally liable for the payment of any indebtedness or expenses
      of
      the Issuer or be liable for the breach or failure of any obligation,
      representation, warranty or covenant made or undertaken by the Issuer under
      this
      Indenture or any other related documents.

     

    Section
      10.19.  Proofs
      of Claim.
      The
      Indenture Trustee is authorized to file such proofs of claim and other papers
      or
      documents as may be necessary or advisable in order to have the claims of the
      Indenture Trustee (including any claim for the reasonable compensation,
      expenses, disbursements and advances of the Indenture Trustee, its agents and
      counsel) and the Noteholders allowed in any judicial proceedings relative to
      the
      Issuer (or any other obligor upon the Notes), its creditors or its property
      and
      shall be entitled and empowered to collect, receive and distribute any money
      or
      other property payable or deliverable on any such claims and any custodian
      in
      any such judicial proceeding is hereby authorized by each Noteholder to make
      such payments to the Indenture Trustee, as administrative expenses associated
      with any such proceeding, and, in the event that the Indenture Trustee shall
      consent to the making of such payments directly to the Noteholder to pay to
      the
      Indenture Trustee any amount due to it for the reasonable compensation,
      expenses, disbursements and advances of the Indenture Trustee, its agents and
      counsel, and any other amounts due to the Indenture Trustee under Section 6.07
      hereof. To the extent that the payment of any such compensation, expenses,
      disbursements and advances of the Indenture Trustee, its agents and counsel,
      and
      any other amounts due the Indenture Trustee under Section 6.07 hereof out of
      the
      estate in any such proceeding, shall be denied for any reason, payment of the
      same shall be secured by a Lien on, and shall be paid out of, any and all
      distributions, dividends, money, securities and other properties that the
      Noteholders may be entitled to receive in such proceeding whether in liquidation
      or under any plan of reorganization or arrangement or otherwise. Nothing herein
      contained shall be deemed to authorize the Indenture Trustee to authorize or
      consent to or accept or adopt on behalf of any Noteholder any plan of
      reorganization, arrangement, adjustment or composition affecting the Noteholder
      of the rights of any Noteholder thereof, or to authorize the Indenture Trustee
      to vote in respect of the claim of any Noteholder in any such
      proceeding.

     

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    IN
      WITNESS WHEREOF, the Issuer and the Indenture 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.

     

    
      	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1, as
                Issuer

            
	 
	
              By:
                Wilmington Trust Company, not in its individual capacity but solely
                as
                Owner Trustee

            
	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	
              /s/
                Michele C. Harra

            
	
              Name:

            	
              Michele
                C. Harra

            
	
              Title:

            	
              Financial
                Services Officer

            

    

    

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY, as Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	
              /s/
                Eiko Akiyama

            
	
              Name:

            	
              Eiko
                Akiyama

            
	
              Title:

            	
              Associate

            

    

    

    
      	
              By:

            	
              /s/
                Ronaldo Reyes

            
	
              Name:

            	
              Ronaldo
                Reyes

            
	
              Title:

            	
              Vice
                President

            

    

    

    

    
      
        

         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF CALIFORNIA

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF ORANGE

            	
              )

            	 

    

    

    On
      this
      ___ day of June, 2006, before me personally appeared _________ to me known,
      who
      being by me duly sworn, did depose and say, that (s)he is _____________ and
      _______________ to me known, who being by me duly sworn, did depose and say,
      that (s)he is a _________________ of the Indenture Trustee, one of the
      corporations described in and which executed the above instrument; and that
      he
      signed his name thereto by like order.

     

    
      	 	 
	 	
              Notary
                Public

            
	 	 
	 	
              NOTARY
                PUBLIC

            

    

    

    

    [NOTARIAL
      SEAL]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF DELAWARE

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW CASTLE

            	
              )

            	 

    

    

    On
      this
      ___ day of June, 2006, before me personally appeared _______________ to me
      known, who being by me duly sworn, did depose and say, that (s)he is a Financial
      Services Officer of the Owner Trustee, one of the entities described in and
      which executed the above instrument; and that she signed her name thereto by
      like order.

     

    
      	 	 
	 	
              Notary
                Public

            
	 	 
	 	
              NOTARY
                PUBLIC

            

    

    

    

    [NOTARIAL
      SEAL]

     

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-1

     

    FORM
      OF
      CLASS AV-1 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

     

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

     

    CLASS
      AV-1

     

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $176,827,000.00

            	
              NOTE
                RATE: Variable

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $176,827,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [     ]

            

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($176,827,000.00) in monthly
      installments on the twenty-fifth day of each month or, if such day is not a
      Business Day, the next succeeding Business Day (each a “Payment Date”),
      commencing in June 2006 and ending on or before the Payment Date occurring
      on
      the Final Stated Maturity Date and to pay interest on the Note Balance of this
      Note (this “Note”) outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class AV-1 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class AV-1 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      AV-1 Notes pursuant to the Indenture and the rights conveyed to the Issuer
      under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

     

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

    Additional
      abbreviations may also be used though not in the above LIST.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING 

    NUMBER
      OF
      ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________             ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-2

     

    FORM
      OF
      CLASS AF-2 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

     

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

     

    CLASS
      AF-2

     

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $49,143,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $49,143,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [     ]

            

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($49,143,000.00) in monthly
      installments on the twenty-fifth day of each month or, if such day is not a
      Business Day, the next succeeding Business Day (each a “Payment Date”),
      commencing in June 2006 and ending on or before the Payment Date occurring
      on
      the Final Stated Maturity Date and to pay interest on the Note Balance of this
      Note (this “Note”) outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class AF-2 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class AF-2 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      AF-2 Notes pursuant to the Indenture and the rights conveyed to the Issuer
      under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

     

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

    Additional
      abbreviations may also be used though not in the above LIST.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING 

    NUMBER
      OF
      ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-3

     

    FORM
      OF
      CLASS AF-3 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

    CLASS
      AF-3

     

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $74,436,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $74,436,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [     ]

            

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($74,436,000.00) in monthly
      installments on the twenty-fifth day of each month or, if such day is not a
      Business Day, the next succeeding Business Day (each a “Payment Date”),
      commencing in June 2006 and ending on or before the Payment Date occurring
      on
      the Final Stated Maturity Date and to pay interest on the Note Balance of this
      Note (this “Note”) outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class AF-3 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class AF-3 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      AF-3 Notes pursuant to the Indenture and the rights conveyed to the Issuer
      under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

     

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

    Additional
      abbreviations may also be used though not in the above LIST.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING 

    NUMBER
      OF
      ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-4

     

    FORM
      OF
      CLASS AF-4 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

    CLASS
      AF-4

     

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $77,025,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $77,025,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [     ]

            

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($77,025,000.00) in monthly
      installments on the twenty-fifth day of each month or, if such day is not a
      Business Day, the next succeeding Business Day (each a “Payment Date”),
      commencing in June 2006 and ending on or before the Payment Date occurring
      on
      the Final Stated Maturity Date and to pay interest on the Note Balance of this
      Note (this “Note”) outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class AF-4 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class AF-4 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      AF-4 Notes pursuant to the Indenture and the rights conveyed to the Issuer
      under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

     

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

    Additional
      abbreviations may also be used though not in the above LIST.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING 

    NUMBER
      OF
      ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-5

     

    FORM
      OF
      CLASS AF-5 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

    CLASS
      AF-5

     

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $64,489,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $64,489,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [     ]

            

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($64,489,000.00) in monthly
      installments on the twenty-fifth day of each month or, if such day is not a
      Business Day, the next succeeding Business Day (each a “Payment Date”),
      commencing in June 2006 and ending on or before the Payment Date occurring
      on
      the Final Stated Maturity Date and to pay interest on the Note Balance of this
      Note (this “Note”) outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class AF-5 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class AF-5 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      AF-5 Notes pursuant to the Indenture and the rights conveyed to the Issuer
      under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	
               

            	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

     

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

    Additional
      abbreviations may also be used though not in the above LIST.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING 

    NUMBER
      OF
      ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-6

     

    FORM
      OF
      CLASS AF-6 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

    CLASS
      AF-6

     

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $49,102,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $49,102,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [    
                ]

            

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($49,102,000.00) in monthly
      installments on the twenty-fifth day of each month or, if such day is not a
      Business Day, the next succeeding Business Day (each a “Payment Date”),
      commencing in June 2006 and ending on or before the Payment Date occurring
      on
      the Final Stated Maturity Date and to pay interest on the Note Balance of this
      Note (this “Note”) outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class AF-6 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class AF-6 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      AF-6 Notes pursuant to the Indenture and the rights conveyed to the Issuer
      under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

     

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

    Additional
      abbreviations may also be used though not in the above LIST.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING 

    NUMBER
      OF
      ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-7

     

    FORM
      OF
      CLASS M-1 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

     

    THIS
      NOTE
      IS SUBORDINATE TO THE CLASS A NOTES TO THE EXTENT DESCRIBED IN THE INDENTURE
      REFERRED TO HEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

    CLASS
      M-1

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $7,301,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $7,301,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [     ]

            
	 	 

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($7,301,000.00) in monthly installments
      on the twenty-fifth day of each month or, if such day is not a Business Day,
      the
      next succeeding Business Day (each a “Payment Date”), commencing in June 2006
      and ending on or before the Payment Date occurring on the Final Stated Maturity
      Date and to pay interest on the Note Balance of this Note (this “Note”)
      outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class M-1 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class M-1 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      M-1 Notes pursuant to the Indenture and the rights conveyed to the Issuer under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

    

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-8

     

    FORM
      OF
      CLASS M-2 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

     

    THIS
      NOTE
      IS SUBORDINATE TO THE CLASS A NOTES AND THE CLASS M-1 NOTES TO THE EXTENT
      DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

    CLASS
      M-2

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $2,610,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $2,610,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [     ]

            
	 	 

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($2,610,000.00) in monthly installments
      on the twenty-fifth day of each month or, if such day is not a Business Day,
      the
      next succeeding Business Day (each a “Payment Date”), commencing in June 2006
      and ending on or before the Payment Date occurring on the Final Stated Maturity
      Date and to pay interest on the Note Balance of this Note (this “Note”)
      outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class M-2 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class M-2 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      M-2 Notes pursuant to the Indenture and the rights conveyed to the Issuer under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

    

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-9

     

    FORM
      OF
      CLASS M-3 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

     

    THIS
      NOTE
      IS SUBORDINATE TO THE CLASS A NOTES, THE CLASS M-1 NOTES AND THE CLASS M-2
      NOTES
      TO THE EXTENT DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

    CLASS
      M-3

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $2,610,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $2,610,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [     ]

            
	 	 

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($2,610,000.00) in monthly installments
      on the twenty-fifth day of each month or, if such day is not a Business Day,
      the
      next succeeding Business Day (each a “Payment Date”), commencing in June 2006
      and ending on or before the Payment Date occurring on the Final Stated Maturity
      Date and to pay interest on the Note Balance of this Note (this “Note”)
      outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class M-3 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class M-3 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      M-3 Notes pursuant to the Indenture and the rights conveyed to the Issuer under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

    

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-10

     

    FORM
      OF
      CLASS M-4 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

     

    THIS
      NOTE
      IS SUBORDINATE TO THE CLASS A NOTES, THE CLASS M-1 NOTES, THE CLASS M-2 NOTES
      AND THE CLASS M-3 NOTES TO THE EXTENT DESCRIBED IN THE INDENTURE REFERRED TO
      HEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

    CLASS
      M-4

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $2,610,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $2,610,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [     ]

            
	 	 

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($2,610,000.00) in monthly installments
      on the twenty-fifth day of each month or, if such day is not a Business Day,
      the
      next succeeding Business Day (each a “Payment Date”), commencing in June 2006
      and ending on or before the Payment Date occurring on the Final Stated Maturity
      Date and to pay interest on the Note Balance of this Note (this “Note”)
      outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class M-4 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class M-4 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      M-4 Notes pursuant to the Indenture and the rights conveyed to the Issuer under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

    

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-11

     

    FORM
      OF
      CLASS M-5 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

     

    THIS
      NOTE
      IS SUBORDINATE TO THE CLASS A NOTES, THE CLASS M-1 NOTES, THE CLASS M-2 NOTES,
      THE CLASS M-3 NOTES AND THE CLASS M-4 NOTES TO THE EXTENT DESCRIBED IN THE
      INDENTURE REFERRED TO HEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

    CLASS
      M-5

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $2,610,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $2,610,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [    
                ]

            
	 	 

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($2,610,000.00) in monthly installments
      on the twenty-fifth day of each month or, if such day is not a Business Day,
      the
      next succeeding Business Day (each a “Payment Date”), commencing in June 2006
      and ending on or before the Payment Date occurring on the Final Stated Maturity
      Date and to pay interest on the Note Balance of this Note (this “Note”)
      outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class M-5 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class M-5 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      M-5 Notes pursuant to the Indenture and the rights conveyed to the Issuer under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

    

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-12

     

    FORM
      OF
      CLASS M-6 NOTES

     

    UNLESS
      THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
      COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE INDENTURE TRUSTEE OR ITS AGENT
      FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE ISSUED IS
      REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
      BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
      OF
      DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
      TO
      ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
      HAS AN INTEREST HEREIN.

     

    THE
      HOLDER OF THIS NOTE OR BENEFICIAL OWNER OF ANY INTEREST HEREIN WILL BE DEEMED
      TO
      REPRESENT TO ONE OF THE REPRESENTATIONS CONTAINED IN SECTION 4.15 OF THE
      INDENTURE.

     

    THIS
      NOTE
      IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF PAYMENT
      TO AMOUNTS AVAILABLE FROM THE TRUST AS PROVIDED IN THE INDENTURE REFERRED TO
      BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON THIS
      NOTE.

     

    PRINCIPAL
      OF THIS NOTE IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY, THE
      OUTSTANDING NOTE BALANCE OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT
      SHOWN ON THE FACE HEREOF.

     

    THIS
      NOTE
      IS SUBORDINATE TO THE CLASS A NOTES, THE CLASS M-1 NOTES, THE CLASS M-2 NOTES,
      THE CLASS M-3 NOTES, THE CLASS M-4 NOTES AND THE CLASS M-5 NOTES TO THE EXTENT
      DESCRIBED IN THE INDENTURE REFERRED TO HEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NEW
      CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

    ASSET-BACKED
      NOTES, SERIES 2006-ALT1

    CLASS
      M-6

    

    
      	
              AGGREGATE
                NOTE BALANCE:

              $2,610,000.00

            	
              NOTE
                RATE: [__]% per annum

            
	 	 
	
              INITIAL
                NOTE BALANCE OF THIS BOND: $2,610,000.00

            	
              BOND
                NO. 1

            
	 	 
	
              PERCENTAGE
                INTEREST: 100%

            	
              CUSIP
                NO. [     ]

            
	 	 

    

    

    New
      Century Alternative Mortgage Loan Trust 2006-ALT1 (the “Issuer”), a Delaware
      statutory trust, for value received, hereby promises to pay to Cede & Co. or
      registered assigns, the principal sum of ($2,610,000.00) in monthly installments
      on the twenty-fifth day of each month or, if such day is not a Business Day,
      the
      next succeeding Business Day (each a “Payment Date”), commencing in June 2006
      and ending on or before the Payment Date occurring on the Final Stated Maturity
      Date and to pay interest on the Note Balance of this Note (this “Note”)
      outstanding from time to time as provided below.

     

    This
      Note
      is one of a duly authorized issue of the Issuer’s Asset-Backed Notes, Series
      2006-ALT1 (the “Notes”), issued under an Indenture dated as of June 22, 2006
      (the “Indenture”), between the Issuer and Deutsche Bank National Trust Company,
      as indenture trustee (the “Indenture Trustee”, which term includes any successor
      Indenture Trustee under the Indenture), to which Indenture and all indentures
      supplemental thereto reference is hereby made for a statement of the respective
      rights thereunder of the Issuer, the Indenture Trustee, and the Holders of
      the
      Notes and the terms upon which the Notes are to be authenticated and delivered.
      All terms used in this Note which are defined in the Indenture shall have the
      meanings assigned to them in the Indenture.

     

    Payments
      of principal and interest on this Note will be made on each Payment Date to
      the
      Noteholder of record as of the related Record Date. The “Note Balance” of a Note
      as of any date of determination is equal to the initial Note Balance thereof,
      reduced by the aggregate of all amounts previously paid with respect to such
      Note on account of principal and the aggregate amount of cumulative Realized
      Losses allocated to such Note on all prior Payment Dates.

     

    The
      principal of, and interest on, this Note are due and payable as described in
      the
      Indenture, in such coin or currency of the United States of America as at the
      time of payment is legal tender for payment of public and private debts. All
      payments made by the Issuer with respect to this Note shall be equal to this
      Note’s pro
      rata
      share of
      the aggregate payments on all Class M-6 Notes as described above, and shall
      be
      applied as between interest and principal as provided in the
      Indenture.

     

    All
      principal and interest accrued on the Notes, if not previously paid, will become
      finally due and payable at the Final Stated Maturity Date.

     

    The
      Notes
      are subject to redemption in whole, but not in part, by the Terminator on any
      Payment Date on or after the Payment Date on which the aggregate Stated
      Principal Balance of the Mortgage Loans as of the end of the prior Due Period
      is
      less than or equal to 10% of the aggregate Stated Principal Balance of the
      Mortgage Loans as of Cut-off Date.

     

    The
      Issuer shall not be liable upon the indebtedness evidenced by the Notes except
      to the extent of amounts available from the Trust Estate which constitutes
      security for the payment of the Notes. The assets included in the Trust Estate
      will be the sole source of payments on the Class M-6 Notes, and each Holder
      hereof, by its acceptance of this Note, agrees that (i) such Note will be
      limited in right of payment to amounts available from the Trust Estate as
      provided in the Indenture and (ii) such Holder shall have no recourse to the
      Issuer, the Owner Trustee, the Indenture Trustee, the Seller, NC Capital, the
      Servicer or any of their respective affiliates, or to the assets of any of
      the
      foregoing entities, except the assets of the Issuer pledged to secure the Class
      M-6 Notes pursuant to the Indenture and the rights conveyed to the Issuer under
      the Indenture.

     

    Any
      payment of principal or interest payable on this Note which is punctually paid
      on the applicable Payment Date shall be paid to the Person in whose name such
      Note is registered at the close of business on the Record Date for such Payment
      Date by check mailed to such person’s address as it appears in the Note Register
      on such Record Date, except for the final installment of principal and interest
      payable with respect to such Note, which shall be payable as provided below.
      Notwithstanding the foregoing, upon written request with appropriate
      instructions by the Holder of this Note delivered to the Indenture Trustee
      at
      least five Business Days prior to the Record Date, any payment of principal
      or
      interest, other than the final installment of principal or interest, shall
      be
      made by wire transfer to an account in the United States designated by such
      Holder. All scheduled reductions in the Note Balance of a Note (or one or more
      predecessor Notes) effected by payments of principal made on any Payment Date
      shall be binding upon all Holders of this Note and of any note issued upon
      the
      registration of transfer thereof or in exchange therefor or in lieu thereof,
      whether or not such payment is noted on such Note. The final payment of this
      Note shall be payable upon presentation and surrender thereof on or after the
      Payment Date thereof at the office or agency of the Issuer maintained by it
      for
      such purpose pursuant to Section 3.02 of the Indenture.

     

    Subject
      to the foregoing provisions, each Note delivered under the Indenture, upon
      registration of transfer of or in exchange for or in lieu of any other Note
      shall carry the right to unpaid principal and interest that were carried by
      such
      other Note.

     

    If
      an
      Event of Default as defined in the Indenture shall occur and be continuing
      with
      respect to the Notes, the Notes may become or be declared due and payable in
      the
      manner and with the effect provided in the Indenture. If any such acceleration
      of maturity occurs prior to the payment of the entire unpaid Note Balance of
      the
      Notes, the amount payable to the Holder of this Note will be equal to the sum
      of
      the unpaid Note Balance of the Notes, together with accrued and unpaid interest
      thereon as described in the Indenture. The Indenture provides that,
      notwithstanding the acceleration of the maturity of the Notes, under certain
      circumstances specified therein, all amounts collected as proceeds of the Trust
      Estate securing the Notes or otherwise shall continue to be applied to payments
      of principal of and interest on the Notes as if they had not been declared
      due
      and payable.

     

    The
      failure to pay any Interest Carryforward Amount at any time when funds are
      not
      available to make such payment as provided in the Indenture shall not constitute
      an Event of Default under the Indenture.

     

    The
      Holder of this Note or Beneficial Owner of any interest herein is deemed to
      represent that either (1) it is not acquiring this Note with Plan Assets or
      (2)
      (A) the acquisition, holding and transfer of this Note will not give rise to
      a
      nonexempt prohibited transaction under Section 406 of ERISA or Section 4975
      of
      the Code and (B) this Note is rated investment grade or better and such person
      believes that this Note is properly treated as indebtedness without substantial
      equity features for purposes of the DOL Regulations, and agrees to so treat
      this
      Note. Alternatively, regardless of the rating of this Note, such person may
      provide the Indenture Trustee and the Owner Trustee with an opinion of counsel,
      which opinion of counsel will not be at the expense of the Issuer, the Seller,
      NC Capital, any Underwriter, the Owner Trustee, the Indenture Trustee, the
      Servicer or any successor servicer which opines that the acquisition, holding
      and transfer of this Note or interest herein is permissible under applicable
      law, will not constitute or result in a non-exempt prohibited transaction under
      ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
      NC Capital, the Depositor, any Underwriter, the Owner Trustee, the Indenture
      Trustee, the Servicer or any successor servicer to any obligation in addition
      to
      those undertaken in the Indenture.

     

    As
      provided in the Indenture and subject to certain limitations therein set forth,
      the transfer of this Note may be registered on the Note Register of the Issuer.
      Upon surrender for registration of transfer of, or presentation of a written
      instrument of transfer for, this Note at the office or agency designated by
      the
      Issuer pursuant to the Indenture, accompanied by proper instruments of
      assignment in form satisfactory to the Indenture Trustee, one or more new Notes
      of any authorized denominations and of a like aggregate initial Note Balance,
      will be issued to the designated transferee or transferees.

     

    Prior
      to
      the due presentment for registration of transfer of this Note, the Issuer,
      the
      Indenture Trustee and any agent of the Issuer or the Indenture Trustee may
      treat
      the Person in whose name this Note is registered as the owner of such Note
      (i)
      on the applicable Record Date for the purpose of making payments and interest
      of
      such Note and (ii) on any other date for all other purposes whatsoever, as
      the
      owner hereof, whether or not this Note be overdue, and neither the Issuer,
      the
      Indenture Trustee nor any such agent of the Issuer or the Indenture Trustee
      shall be affected by notice to the contrary.

     

    The
      Indenture permits, with certain exceptions as therein provided, the amendment
      thereof and the modification of the rights and obligations of the Issuer and
      the
      rights of the Holders of the Notes under the Indenture at any time by the Issuer
      and the Holders of a majority of all Notes at the time outstanding. The
      Indenture also contains provisions permitting the Holders of Notes representing
      specified percentages of the aggregate Note Balance of the Notes on behalf
      of
      the Holders of all the Notes, to waive any past Default under the Indenture
      and
      its consequences. Any such waiver by the Holder, at the time of the giving
      thereof, of this Note (or any one or more predecessor Notes) shall bind the
      Holder of every Note issued upon the registration of transfer hereof or in
      exchange hereof or in lieu hereof, whether or not notation of such consent
      or
      waiver is made upon such Note. The Indenture also permits the Issuer and the
      Indenture Trustee to amend or waive certain terms and conditions set forth
      in
      the Indenture without the consent of the Holders of the Notes issued
      thereunder.

     

    Initially,
      this Note will be registered in the name of Cede & Co. as nominee of DTC,
      acting in its capacity as the Depository for this Note. This Note will be
      delivered by the clearing agency in denominations as provided in the Indenture
      and subject to certain limitations therein set forth. This Note is exchangeable
      for a like aggregate initial Note Balance of Notes of different authorized
      denominations, as requested by the Holder surrendering same.

     

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

     

    AS
      PROVIDED IN THE INDENTURE, THIS NOTE AND THE INDENTURE CREATING THIS NOTE SHALL
      BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE STATE OF
      NEW
      YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed
      by
      Wilmington Trust Company, not in its individual capacity but solely as Owner
      Trustee.

     

    Dated:
      June ____, 2006

     

    
      	 	 	 	 	 	 	
              NEW
                CENTURY ALTERNATIVE MORTGAGE LOAN TRUST 2006-ALT1

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              BY:
                WILMINGTON TRUST COMPANY, not in its individual capacity but solely
                in its
                capacity as Owner Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Authorized
                Signatory

            
	 	 	 	 	 	 	 	 

    

    

    

    INDENTURE
      TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     

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

     

    
      	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY,

              as
                Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Authorized
                Signatory

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ABBREVIATIONS

     

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

    

    
      	
              TEN
                COM

            	
              --

            	
              as
                tenants in common

               

            
	
              TEN
                ENT

            	
              --

            	
              as
                tenants by the entireties

               

            
	
              JT
                TEN

            	
              --

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

               

            
	
              UNIF
                GIFT MIN ACT

            	
              --

            	
              __________
                Custodian

               

            
	 	 	
              (Cust)

            	
              (Minor)

            
	 	 	 	 
	 	 	
              under
                Uniform Gifts to Minor Act

               

            
	 	 	 	
              (State)

            
	 	 	 

    

    

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSIGNMENT

     

    FOR
      VALUE
      RECEIVED, the undersigned hereby sells, assigns and transfers unto

     

    PLEASE
      INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

    

    
      	 
	 
	 

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    

    
      	 

    

    the
      within Note and all rights thereunder, and hereby irrevocably constitutes and
      appoints _________________________________ attorney to transfer said Note on
      the
      books kept for registration thereof, with full power of substitution in the
      premises.

     

    Dated:
      ________________________________         ________________________________

     

    Signature
      Guaranteed by __________________________________

     

    NOTICE:
      The signature(s) to this assignment must correspond with the name as it appears
      upon the face of the within Note in every particular, without alteration or
      enlargement or any change whatsoever. Signature(s) must be guaranteed by a
      commercial bank or by a member firm of the New York Stock Exchange or another
      national securities exchange. Notarized or witnessed signatures are not
      acceptable.

     

    

     

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      B

     

    MORTGAGE
      LOAN SCHEDULE

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      C-1

     

    FORM
      OF
      INITIAL CERTIFICATION

     

                                        June
      22,
      2006

    

    
      	
              New
                Century Alternative Mortgage Loan Trust 2006-ALT1

              c/o
                Wilmington Trust Company

              Rodney
                Square North

              1100
                North Market Street

              Wilmington,
                Delaware 19990-0001

              Attention:
                Corporate Trust Administration

            	
              Wells
                Fargo Bank, N.A.

              9062
                Old Annapolis Road

              Columbia,
                Maryland 21045

            

    

    

    
      	 	
              Re:

            	
              Indenture
                dated as of June 22, 2006, between New Century Alternative Mortgage
                Loan
                Trust 2006-ALT1 and Deutsche Bank National Trust
                Company

            

    

    

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.03(a) of the above-captioned Indenture and Section
      2.1(b)(i)-(v) of the Mortgage Loan Purchase Agreement, dated as of June 22,
      2006
      (the “MLPA”; and together with the Indenture, the “Agreements”), among New
      Century Credit Corporation, NC Capital Corporation and New Century Mortgage
      Securities LLC., the undersigned, as Indenture Trustee, hereby certifies that
      as
      to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
      Mortgage Loan paid in full or any Mortgage Loan specifically identified in
      the
      exception report annexed thereto as not being covered by such certification)
      (i)
      all documents constituting part of such Mortgage File (other than such documents
      described in Section 2.1(v) of the MLPA) required to be delivered to it pursuant
      to the Agreement are in its possession, (ii) such documents have been reviewed
      by it and appear regular on their face and relate to such Mortgage Loan and
      (iii) based on its examination and only as to the foregoing, the information
      set
      forth in the Mortgage Loan Schedule that corresponds to items (i), (ii), (x),
      (xi) and (xiv) of the definition of “Mortgage Loan Schedule” accurately reflects
      information set forth in the Mortgage File.

     

    The
      Indenture Trustee makes no representations as to: (i) the validity, legality,
      sufficiency, enforceability or genuineness of any of the documents contained
      in
      the Mortgage File of any of the Mortgage Loans identified on the Mortgage Loan
      Schedule, (ii) the collectability, insurability, effectiveness or suitability
      of
      any such Mortgage Loan, or (iii) whether any Mortgage File included any of
      the
      documents specified in clause (v) of Section 2.1 of the MLPA.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Indenture.

     

    
      	 	 	 	 	 	 	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY, as Indenture Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name: 

            
	 	 	 	 	 	 	 	
              Title: 

            

    

    

    

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      C-2

     

    FORM
      OF
      FINAL CERTIFICATION

     

    ,
      200__

    

    
      	
              New
                Century Alternative Mortgage Loan Trust 2006-ALT1

              c/o
                Wilmington Trust Company

              Rodney
                Square North

              1100
                North Market Street

              Wilmington,
                Delaware 19990-0001

              Attention:
                Corporate Trust Administration

            	
              Wells
                Fargo Bank, N.A.

              9062
                Old Annapolis Road

              Columbia,
                Maryland 21045

            

    

    

    
      	 	
              Re:

            	
              Indenture
                dated as of June 22, 2006, between New Century Alternative Mortgage
                Loan
                Trust 2006-ALT1 and Deutsche Bank National Trust
                Company

            

    

    

    Ladies
      and Gentlemen:

     

    In
      accordance with Section 2.03(b) of the above-captioned Indenture, and Section
      2.1(b) of the Mortgage Loan Purchase Agreement, dated as of June 7, 2006, (the
      “MLPA”; and together with the Indenture, the “Agreements”), among New Century
      Credit Corporation, NC Capital Corporation and New Century Mortgage Securities
      LLC, the undersigned, as Indenture Trustee, hereby certifies that as to each
      Mortgage Loan listed in the Mortgage Loan Schedule (other than any Mortgage
      Loan
      paid in full or listed on the exception report attached hereto) it has received
      the documents set forth in Section 2.1(b) of the MLPA.

     

    The
      Indenture Trustee has made no independent examination of any documents contained
      in each Mortgage File beyond the review specifically required in the Agreements.
      The Indenture Trustee makes no representation that any documents specified
      in
      clause (v) of Section 2.1(b) should be included in any Mortgage
      File.

     

    The
      Indenture Trustee makes no representations as to and shall not be responsible
      to
      verify: (i) the validity, legality, sufficiency, enforceability, due
      authorization, recordability or genuineness of any of the documents contained
      in
      each Mortgage File of any of the Mortgage Loans identified on the Mortgage
      Loan
      Schedule, (ii) the collectability, insurability, effectiveness or suitability
      of
      any such Mortgage Loan or (iii) the existence of any assumption, modification,
      written assurance or substitution agreement with respect to any Mortgage File
      if
      no such documents appear in the Mortgage File delivered to the Indenture
      Trustee.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the above-captioned Indenture.

     

    
      	 	 	 	 	 	 	
              DEUTSCHE
                BANK NATIONAL TRUST COMPANY, as Indenture Trustee

            
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	 	
              Name: 

            
	 	 	 	 	 	 	 	
              Title: 

            

    

    

    

    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

     

    [RESERVED]

     

    

     

    

     

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

     

    
      DEFINITIONS

       

      “Accepted
        Servicing Practices”: The servicing standards set forth in Section 3.01 of the
        Servicing Agreement.

       

      “Accrued
        Note Interest”: With respect to any Class A Note or Mezzanine Note and each
        Payment Date, interest accrued during the related Interest Accrual Period
        at the
        Note Rate for such Note for such Payment Date on the Note Balance immediately
        prior to such Payment Date. All payments of interest on the Floating Rate
        Notes
        will be calculated on the basis of a 360-day year and the actual number of
        days
        in the applicable Interest Accrual Period. All payments of interest on the
        Fixed
        Rate Notes will be the calendar month preceding the month in which such Payment
        Date occurs calculated on the basis of a 360-day year and twelve 30-day months.
        

       

      “Additional
        Form 10-D Disclosure”: As defined in Section 4.02(b)(i) of the Servicing
        Agreement.

       

      “Additional
        Form 10-K Disclosure”: As defined in Section 4.02(b)(iii) of the Servicing
        Agreement.

       

      “Advancing
        Person”: As defined in Section 3.26(a) of the Servicing Agreement.

       

      “Administrator”:
        NC Capital Corporation in the performance of its duties pursuant to Article
        VIII
        under the Mortgage Loan Purchase Agreement. 

       

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

       

      “Allocated
        Realized Loss Amount”: With respect to any Payment Date and any Class of
        Mezzanine Notes, the sum of (i) any Realized Losses allocated to such Class
        of
        Notes on such Payment Date and previous Payment Dates minus the amount of
        Subsequent Recoveries allocated to such Class on such Payment Date and previous
        Payment Dates as provided in Section 3.05 hereof minus the amount of Net
        Monthly
        Excess Cashflow applied to such Class for such Payment Date and previous
        Payment
        Dates pursuant to Section 3.05(d)(iv). 

       

      “Assignment”:
        An assignment of Mortgage, notice of transfer or equivalent instrument, in
        recordable form (excepting therefrom, if applicable, the mortgage recordation
        information which has not been required pursuant to Section 2.1 of the Mortgage
        Loan Purchase Agreement or returned by the applicable recorder’s office), which
        is sufficient under the laws of the jurisdiction wherein the related Mortgaged
        Property is located to reflect of record the sale of the Mortgage, which
        assignment, notice of transfer or equivalent instrument may be in the form
        of
        one or more blanket assignments covering Mortgages secured by Mortgaged
        Properties located in the same county, if permitted by law.

       

      “Authorized
        Newspaper”: A newspaper of general circulation in the Borough of Manhattan, The
        City of New York, printed in the English language and customarily published
        on
        each Business Day, whether or not published on Saturdays, Sundays or
        holidays.

       

      “Authorized
        Officer”: With respect to the Issuer, any officer of the Owner Trustee who is
        authorized to act for the Owner Trustee in matters relating to the Issuer
        and
        who is identified on the list of Authorized Officers delivered by the Owner
        Trustee to the Indenture Trustee on the Closing Date (as such list may be
        modified or supplemented from time to time thereafter) and any authorized
        officer of the Servicer in its capacity as administrator of the Issuer pursuant
        to Article VIII of the Servicing Agreement.

       

      “Available
        Funds Rate”: For any Payment Date and the Class A Notes and Mezzanine Notes, a
        per annum rate equal to the weighted average of the Expense Adjusted Mortgage
        Rates of the then outstanding Mortgage Loans multiplied by a fraction the
        numerator of which is the aggregate Stated Principal Balance of the Mortgage
        Loans as of the last day of the prior Due Period and the denominator of which
        is
        the aggregate Note Balance of the Class A Notes and the Mezzanine Notes
        immediately prior to such Payment Date multiplied (in the case of the Floating
        Rate Notes) by a fraction, the numerator of which is 30 and the denominator
        of
        which is the actual number of days elapsed in the related Interest Accrual
        Period.

       

      “Available
        Payment Amount”: With respect to any Payment Date, an amount equal to (1) the
        sum of (a) the aggregate of the amounts on deposit in the Collection Account
        as
        of the close of business on the related Determination Date, including any
        Subsequent Recoveries, (b) the aggregate of any amounts received in respect
        of
        an REO Property withdrawn from the Collection Account and deposited in the
        Payment Account for such Payment Date pursuant to Section 3.23 of the Servicing
        Agreement, (c) the aggregate of any amounts deposited in the Payment Account
        by
        the Servicer in respect of Prepayment Interest Shortfalls for such Payment
        Date
        pursuant to Section 3.24 of the Servicing Agreement, (d) the aggregate of
        any
        P&I Advances made by the Servicer for such Payment Date pursuant to Section
        4.01 of the Servicing Agreement, (e) the aggregate of any advances made by
        the
        Indenture Trustee as successor Servicer or any other successor Servicer for
        such
        Payment Date pursuant to Section 6.02 of the Servicing Agreement, and (f)
        the
        amount of any Prepayment Charges collected by the Servicer in connection
        with
        the Principal Prepayment of any of the Mortgage Loans, by (2) the portion
        of the
        amount described in clause (1)(a) above that represents (i) Monthly Payments
        on
        the Mortgage Loans received from a Mortgagor on or prior to the Determination
        Date but due during any Due Period subsequent to the related Due Period,
        (ii)
        Principal Prepayments on the Mortgage Loans received after the related
        Prepayment Period (together with any interest payments received with such
        Principal Prepayments to the extent they represent the payment of interest
        accrued on the Mortgage Loans during a period subsequent to the related
        Prepayment Period), (iii) Liquidation Proceeds and Insurance Proceeds received
        in respect of the Mortgage Loans after the related Prepayment Period, (iv)
        amounts reimbursable or payable to the Depositor, the Servicer, the Indenture
        Trustee, the Owner Trustee, the Seller or any Sub- Servicer pursuant to Section
        3.11 or Section 3.12 of the Servicing Agreement, (v) the Indenture Trustee
        Fee,
        the Owner Trustee Fee (beginning on the 13th
        Payment
        Date) and other amounts payable from the Payment Account pursuant to Section
        6.07 hereof and (vi) amounts deposited in the Collection Account or the Payment
        Account in error. 

       

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

       

      “Bankruptcy
        Loss”: With respect to any Mortgage Loan, a Realized Loss resulting from a
        Deficient Valuation or Debt Service Reduction.

       

      “Basic
        Documents”: The Trust Agreement, the Certificate of Trust, the Indenture, the
        Servicing Agreement, the Mortgage Loan Purchase Agreement and the other
        documents and certificates delivered in connection with any of the
        above.

       

      “Basis
        Risk Shortfall”: With respect to any Class of Notes and any Payment Date, the
        sum of (i) the excess, if any, of (x) the aggregate Accrued Note Interest
        thereon for such Payment Date (without regard to the Available Funds Rate)
        over
        (y) interest accrued on such Class of Notes at the Available Funds Rate and
        (ii)
        the unpaid portion of any Basis Risk Shortfall from the prior Payment Dates
        together with interest accrued on such unpaid portion for the most recently
        ended Interest Accrual Period at the related Note Rate (without regard to
        the
        Available Funds Rate).

       

      “Beneficial
        Owner”: With respect to any Note, the Person who is the beneficial owner of such
        Note as reflected on the books of the Depository or on the books of a Person
        maintaining an account with such Depository (directly as a Depository
        Participant or indirectly through a Depository Participant, in accordance
        with
        the rules of such Depository).

       

      “Book-Entry
        Notes”: Beneficial interests in the Notes, ownership and transfers of which
        shall be made through book entries by the Depository as described in Section
        4.06 hereof.

       

      “Business
        Day”: Any day other than a Saturday, a Sunday or a day on which banking or
        savings institutions in the State of Delaware, the State of New York, the
        State
        of California, the State of Maryland, the State of Iowa, or in the city in
        which
        the Corporate Trust Office of the Indenture Trustee is located are authorized
        or
        obligated by law or executive order to be closed.

       

      “Cash-Out
        Refinancing”: A Refinanced Mortgage Loan the proceeds of which are more than a
        nominal amount in excess of the principal balance of any existing first mortgage
        or subordinate mortgage on the related Mortgaged Property and related closing
        costs.

       

      “Certificate
        Distribution Account”: The account or accounts created and maintained pursuant
        to Section 3.10(c) of the Trust Agreement. The Certificate Distribution Account
        shall be an Eligible Account.

       

      “Certificate
        Paying Agent”: The meaning specified in Section 3.10 of the Trust
        Agreement.

       

      “Certificate
        Percentage Interest”: With respect to each Certificate, the Certificate
        Percentage Interest stated on the face thereof.

       

      “Certificate
        Register”: The register maintained by the Certificate Registrar in which the
        Certificate Registrar shall provide for the registration of Certificates
        and of
        transfers and exchanges of Certificates.

       

      “Certificate
        Registrar”: Initially, the Indenture Trustee, in its capacity as Certificate
        Registrar, or any successor to the Indenture Trustee in such
        capacity.

       

      “Certificate
        of Trust”: The Certificate of Trust filed for the Trust pursuant to Section
        3810(a) of the Statutory Trust Statute.

       

      “Certificates”
        or “Trust Certificates”: The New Century Alternative Mortgage Loan Trust
        2006-ALT1 Trust Certificates, evidencing the beneficial ownership interest
        in
        the Issuer and executed by the Owner Trustee in substantially the form set
        forth
        in Exhibit A to the Trust Agreement.

       

      “Certificateholder”
        or “Holder”: The Person in whose name a Certificate is registered in the
        Certificate Register. Owners of Certificates that have been pledged in good
        faith may be regarded as Holders if the pledgee establishes to the satisfaction
        of the Indenture Trustee or the Owner Trustee, as the case may be, 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 or any Affiliate of any
        of
        the foregoing Persons.

       

      “Certification”:
        As defined in Section 4.02(b)(iii) of the Servicing Agreement.

       

      “Class”:
        Collectively, all of the Notes bearing the same class designation.

       

      “Class
        A
        Notes”: Any of the Class AV-1 Notes, Class AF-2 Notes, Class AF-3 Notes, Class
        AF-4 Notes, Class AF-5 Notes or the Class AF-6 Notes.

       

      “Class
        AV-1 Notes”: Any one of the Class AV-1 Notes executed, authenticated and
        delivered by the Indenture Trustee, substantially in the form annexed as
        Exhibit
        A-1 to the Indenture.

       

      “Class
        AF-2 Notes”: Any one of the Class AF-2 Notes executed, authenticated and
        delivered by the Indenture Trustee, substantially in the form annexed as
        Exhibit
        A-2 to the Indenture.

       

      “Class
        AF-3 Notes”: Any one of the Class AF-3 Notes executed, authenticated and
        delivered by the Indenture Trustee, substantially in the form annexed as
        Exhibit
        A-3 to the Indenture.

       

      “Class
        AF-4 Notes”: Any one of the Class AF-4 Notes executed, authenticated and
        delivered by the Indenture Trustee, substantially in the form annexed as
        Exhibit
        A-4 to the Indenture.

       

      “Class
        AF-5 Notes”: Any one of the Class AF-5 Notes executed, authenticated and
        delivered by the Indenture Trustee, substantially in the form annexed as
        Exhibit
        A-5 to the Indenture.

       

      “Class
        AF-6 Notes”: Any one of the Class AF-6 Notes executed, authenticated and
        delivered by the Indenture Trustee, substantially in the form annexed as
        Exhibit
        A-6 to the Indenture.

       

      “Class
        M-1 Note”: Any one of the Class M-1 Notes executed, authenticated and delivered
        by the Indenture Trustee, substantially in the form annexed as Exhibit A-7
        to
        the Indenture.

       

      “Class
        M-1 Principal Payment Amount”: With respect to any Payment Date, the excess of
        (x) the sum of (i) the aggregate Note Balance of the Class A Notes (after
        taking
        into account the payment of the Senior Principal Payment Amount on such Payment
        Date) and (ii) the Note Balance of the Class M-1 Notes immediately prior
        to such
        Payment Date over (y) the lesser of (A) the product of (i) 91.00% and (ii)
        the
        aggregate Stated Principal Balance of the Mortgage Loans as of the last day
        of
        the related Due Period and (B) the aggregate Stated Principal Balance of
        the
        Mortgage Loans as of the last day of the related Due Period minus
        $2,609,047.87.

       

      “Class
        M-2 Note”: Any one of the Class M-2 Notes executed, authenticated and delivered
        by the Indenture Trustee, substantially in the form annexed as Exhibit A-8
        to
        the Indenture.

       

      “Class
        M-2 Principal Payment Amount”: With respect to any Payment Date, the excess of
        (x) the sum of (i) the aggregate Note Balance of the Class A Notes (after
        taking
        into account the payment of the Senior Principal Payment Amount on such Payment
        Date), (ii) the Note Balance of the Class M-1 Notes (after taking into account
        the payment of the Class M-1 Principal Payment Amount on such Payment Date)
        and
        (iii) the Note Balance of the Class M-2 Notes immediately prior to such Payment
        Date over (y) the lesser of (A) the product of (i) 92.00% and (ii) the aggregate
        Stated Principal Balance of the Mortgage Loans as of the last day of the
        related
        Due Period and (B) the aggregate Stated Principal Balance of the Mortgage
        Loans
        as of the last day of the related Due Period minus $2,609,047.87.

       

      “Class
        M-3 Note”: Any one of the Class M-3 Notes executed, authenticated and delivered
        by the Indenture Trustee, substantially in the form annexed as Exhibit A-9
        to
        the Indenture.

       

      “Class
        M-3 Principal Payment Amount”: With respect to any Payment Date, the excess of
        (x) the sum of (i) the aggregate Note Balance of the Class A Notes (after
        taking
        into account the payment of the Senior Principal Payment Amount on such Payment
        Date), (ii) the Note Balance of the Class M-1 Notes (after taking into account
        the payment of the Class M-1 Principal Payment Amount on such Payment Date),
        (iii) the Note Balance of the Class M-2 Notes (after taking into account
        the
        payment of the Class M-2 Principal Payment Amount on such Payment Date) and
        (iv)
        the Note Balance of the Class M-3 Notes immediately prior to such Payment
        Date
        over (y) the lesser of (A) the product of (i) 93.00% and (ii) the aggregate
        Stated Principal Balance of the Mortgage Loans as of the last day of the
        related
        Due Period and (B) the aggregate Stated Principal Balance of the Mortgage
        Loans
        as of the last day of the related Due Period minus $2,609,047.87.

       

      “Class
        M-4 Note”: Any one of the Class M-4 Notes executed, authenticated and delivered
        by the Indenture Trustee, substantially in the form annexed as Exhibit A-10
        to
        the Indenture.

       

      “Class
        M-4 Principal Payment Amount”: With respect to any Payment Date, the excess of
        (x) the sum of (i) the aggregate Note Balance of the Class A Notes (after
        taking
        into account the payment of the Senior Principal Payment Amount on such Payment
        Date), (ii) the Note Balance of the Class M-1 Notes (after taking into account
        the payment of the Class M-1 Principal Payment Amount on such Payment Date),
        (iii) the Note Balance of the Class M-2 Notes (after taking into account
        the
        payment of the Class M-2 Principal Payment Amount on such Payment Date),
        (iv)
        the Note Balance of the Class M-3 Notes (after taking into account the payment
        of the Class M-3 Principal Payment Amount on such Payment Date) and (v) the
        Note
        Balance of the Class M-4 Notes immediately prior to such Payment Date over
        (y)
        the lesser of (A) the product of (i) 94.00% (ii) the aggregate Stated Principal
        Balance of the Mortgage Loans as of the last day of the related Due Period
        and
        (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the
        last
        day of the related Due Period minus $2,609,047.87.

       

      “Class
        M-5 Note”: Any one of the Class M-5 Notes executed, authenticated and delivered
        by the Indenture Trustee, substantially in the form annexed as Exhibit A-11
        of
        the Indenture.

       

      “Class
        M-5 Principal Payment Amount”: With respect to any Payment Date, the excess of
        (x) the sum of (i) the aggregate Note Balance of the Class A Notes (after
        taking
        into account the payment of the Senior Principal Payment Amount on such Payment
        Date), (ii) the Note Balance of the Class M-1 Notes (after taking into account
        the payment of the Class M-1 Principal Payment Amount on such Payment Date),
        (iii) the Note Balance of the Class M-2 Notes (after taking into account
        the
        payment of the Class M-2 Principal Payment Amount on such Payment Date),
        (iv)
        the Note Balance of the Class M-3 Notes (after taking into account the payment
        of the Class M-3 Principal Payment Amount on such Payment Date), (v) the
        Note
        Balance of the Class M-4 Notes (after taking into account the payment of
        the
        Class M-4 Principal Payment Amount on such Payment Date) and (vi) the Note
        Balance of the Class M-5 Notes immediately prior to such Payment Date over
        (y)
        the lesser of (A) the product of (i) 95.00% (ii) the aggregate Stated Principal
        Balance of the Mortgage Loans as of the last day of the related Due Period
        and
        (B) the aggregate Stated Principal Balance of the Mortgage Loans as of the
        last
        day of the related Due Period minus $2,609,047.87.

       

      “Class
        M-6 Note”: Any one of the Class M-6 Notes executed, authenticated and delivered
        by the Indenture Trustee, substantially in the form annexed as Exhibit A-12
        of
        the Indenture.

       

      “Class
        M-6 Principal Payment Amount”: With respect to any Payment Date, the excess of
        (x) the sum of (i) the aggregate Note Balance of the Class A Notes (after
        taking
        into account the payment of the Senior Principal Payment Amount on such Payment
        Date), (ii) the Note Balance of the Class M-1 Notes (after taking into account
        the payment of the Class M-1 Principal Payment Amount on such Payment Date),
        (iii) the Note Balance of the Class M-2 Notes (after taking into account
        the
        payment of the Class M-2 Principal Payment Amount on such Payment Date),
        (iv)
        the Note Balance of the Class M-3 Notes (after taking into account the payment
        of the Class M-3 Principal Payment Amount on such Payment Date), (v) the
        Note
        Balance of the Class M-4 Notes (after taking into account the payment of
        the
        Class M-4 Principal Payment Amount on such Payment Date), (vi) the Note Balance
        of the Class M-5 Notes (after taking into account the payment of the Class
        M-5
        Principal Payment Amount on such Payment Date) and (vii) the Note Balance
        of the
        Class M-6 Notes immediately prior to such Payment Date over (y) the lesser
        of
        (A) the product of (i) 96.00% (ii) the aggregate Stated Principal Balance
        of the
        Mortgage Loans as of the last day of the related Due Period and (B) the
        aggregate Stated Principal Balance of the Mortgage Loans as of the last day
        of
        the related Due Period minus $2,609,047.87.

       

      “Closing
        Date”: June 22, 2006.

       

      “Code”:
        The Internal Revenue Code of 1986.

       

      “Collateral”:
        The meaning specified in the Granting Clause of the Indenture.

       

      “Collection
        Account”: The account or accounts created and maintained, or caused to be
        created and maintained, by the Servicer pursuant to Section 3.10(a) of the
        Servicing Agreement, which shall be entitled “Wells Fargo Bank, N.A., as
        Servicer for Deutsche Bank National Trust Company, as Indenture Trustee,
        in
        trust for the registered holders of New Century Alternative Mortgage Loan
        Trust
        2006-ALT1, Asset Backed Notes, Series 2006-ALT1.” The Collection Account must be
        an Eligible Account.

       

      “Commission”:
        The Securities and Exchange Commission.

       

      “Corporate
        Trust Office”: With respect to the Indenture Trustee, Certificate Registrar,
        Certificate Paying Agent and Paying Agent, the principal corporate trust
        office
        of the Indenture Trustee and Note Registrar at which at any particular time
        its
        corporate trust business shall be administered, which office at the date
        of the
        execution of this instrument is located at 1761 East St. Andrew Place, Santa
        Ana, California 92705, Attention: Trust Administration, NC06A1. With respect
        to
        the Owner Trustee, the principal corporate trust office of the Owner Trustee
        at
        which at any particular time its corporate trust business shall be administered,
        which office at the date of the execution of this Trust Agreement is located
        at
        Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
        Wilmington, Delaware 19801, Attention: New Century Alternative Mortgage Loan
        Trust 2006-ALT1 (NC06A1).

       

      “Credit
        Enhancement Percentage”: For any Payment Date, the percentage equivalent of a
        fraction, the numerator of which is the sum of the aggregate Note Balance
        of the
        Mezzanine Notes and the Overcollateralization Amount calculated after taking
        into account payments of principal on the Mortgage Loans and payment of the
        Principal Payment Amount to the Notes then entitled to payments of principal
        on
        such Payment Date, and the denominator of which is the aggregate Stated
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period.

       

      “Cut-off
        Date”: The close of business on May 1, 2006.

       

      “Debt
        Service Reduction”: With respect to any Mortgage Loan, a reduction in the
        scheduled Monthly Payment for such Mortgage Loan by a court of competent
        jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction
        constituting a Deficient Valuation or any reduction that results in a permanent
        forgiveness of principal.

       

      “Default”:
        Any occurrence which is or with notice or the lapse of time or both would
        become
        an Event of Default.

       

      “Deferred
        Interest”: With respect to the Mezzanine Notes and any Payment Date, an amount
        equal to the sum of (a) the aggregate amount of interest accrued at the
        applicable Note Rate during the related Interest Accrual Period on any Allocated
        Realized Loss Amount for such Class, (b) any amounts described in clause
        (a) for
        such Class for prior Payment Dates that remain unpaid, and (c) interest accrued
        for the Interest Accrual Period related to such Payment Date on the amount
        in
        clause (b) at the Note Rate applicable to such Class

       

      “Deficient
        Valuation”: With respect to any Mortgage Loan, a valuation by a court of
        competent jurisdiction of the Mortgaged Property in an amount less than the
        then
        outstanding indebtedness under the Mortgage Loan, or any reduction in the
        amount
        of principal to be paid in connection with any scheduled Monthly Payment
        that
        constitutes a permanent forgiveness of principal, which valuation or reduction
        results from a proceeding under the Bankruptcy Code.

       

      “Definitive
        Notes”: The meaning specified in Section 4.06 hereof.

       

      “Deleted
        Mortgage Loan”: A Mortgage Loan replaced or to be replaced with an Qualified
        Substitute Mortgage Loan.

       

      “Delinquency
        Rate”: With respect to any calendar month, the percentage obtained by dividing
        (a) the sum of the aggregate Stated Principal Balance of (i) Mortgage Loans
        delinquent 60 days or more, (ii) Mortgage Loans in foreclosure, (iii) REO
        Properties and (iv) Mortgage Loans in bankruptcy and delinquent 60 days or
        more
        by (b) the aggregate Stated Principal Balance of the Mortgage Loans as of
        the
        last day of such calendar month; provided, however, that any Mortgage Loan
        purchased by the Servicer pursuant to Section 3.16(c) of the Servicing Agreement
        shall not be included in either the numerator or the denominator for purposes
        of
        calculating the Delinquency Percentage.

       

      “Depositor”:
        New Century Mortgage Securities LLC, a Delaware limited liability company,
        or
        its successor in interest.

       

      “Depository”
        or “Depository Agency”: The Depository Trust Company or a successor appointed by
        the Indenture Trustee. Any successor to the Depository shall be an organization
        registered as a “clearing agency” pursuant to Section 17A of the Exchange Act
        and the regulations of the Securities and Exchange Commission
        thereunder.

       

      “Depository
        Institution”: Any depository institution or trust company, including the
        Indenture Trustee that (a) is incorporated under the laws of the United States
        of America or any State thereof, (b) is subject to supervision and examination
        by federal or state banking authorities and (c) has outstanding unsecured
        commercial paper or other short-term unsecured debt obligations (or, in the
        case
        of a depository institution that is the principal subsidiary of a holding
        company, such holding company has unsecured commercial paper or other short-term
        unsecured debt obligations) that are rated at least P-1 by Moody’s, A-1 by Fitch
        (if rated by Fitch), A-1+ by S&P and R-1.

       

      “Depository
        Participant”: A Person for whom, from time to time, the Depository effects
        book-entry transfers and pledges of securities deposited with the
        Depository.

       

      “Determination
        Date”: With respect to any Payment Date, the 15th
        day of
        the calendar month in which such Payment Date occurs, or if such 15th
        day is
        not a Business Day, the Business Day immediately preceding such 15th
        day.

       

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

       

      “Due
        Date”: With respect to each Mortgage Loan, the day of the month on which each
        scheduled Monthly Payment is due.

       

      “Due
        Period”: With respect to any Payment Date, the period commencing on the second
        day of the month immediately preceding the month in which such Payment Date
        occurs and ending on the related Due Date.

       

      “Eligible
        Account”: Any of (i) an account or accounts maintained with a Depository
        Institution, (ii) an account or accounts the deposits in which are fully
        insured
        by the FDIC or (iii) a segregated, non-interest bearing trust account or
        accounts maintained with the corporate trust department of a federal or state
        chartered depository institution or trust company acting in its fiduciary
        capacity. Eligible Accounts may bear interest.

       

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

       

      “Escrow
        Payment”: As defined in Section 3.09 of the Servicing Agreement.

       

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

       

      “Event
        of
        Default”: With respect to the Indenture, any one of the following events
        (whatever the reason for such Event of Default and whether it shall be voluntary
        or involuntary or be effected by operation of law or pursuant to any judgment,
        decree or order of any court or any order, rule or regulation of any
        administrative or governmental body):

       

      (i) a
        failure
        by the Issuer to pay Accrued Note Interest on any of the Notes or the Principal
        Payment Amount on any Payment Date; or

       

      (ii) the
        failure by the Issuer on a respective Final Stated Maturity Date to reduce
        the
        Note Balance of any of the Notes to zero; or

       

      (iii) there
        occurs a default in the observance or performance of any covenant or agreement
        of the Issuer made in the Indenture, or any representation or warranty of
        the
        Issuer made in the Indenture or in any certificate or other writing delivered
        pursuant hereto or in connection herewith proving to have been incorrect
        in any
        material respect as of the time when the same shall have been made, and such
        default shall continue or not be cured, or the circumstance or condition
        in
        respect of which such representation or warranty was incorrect shall not
        have
        been eliminated or otherwise cured, for a period of 30 days after there shall
        have been given, by registered or certified mail, to the Issuer by the Indenture
        Trustee or to the Issuer and the Indenture Trustee by the Holders of at least
        25% of the aggregate Note Balance of the Outstanding Notes, a written notice
        specifying such default or incorrect representation or warranty and requiring
        it
        to be remedied and stating that such notice is a notice of default hereunder;
        or

       

      (iv) there
        occurs the filing of a decree or order for relief by a court having jurisdiction
        in the premises in respect of the Issuer or any substantial part of the Trust
        Estate in an involuntary case under any applicable federal or state bankruptcy,
        insolvency or other similar law now or hereafter in effect, or appointing
        a
        receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
        official of the Issuer or for any substantial part of the Trust Estate, or
        ordering the winding-up or liquidation of the Issuer’s affairs, and such decree
        or order shall remain unstayed and in effect for a period of 60 consecutive
        days; or

       

      (v) there
        occurs the commencement by the Issuer of a voluntary case under any applicable
        federal or state bankruptcy, insolvency or other similar law now or hereafter
        in
        effect, or the consent by the Issuer to the entry of an order for relief
        in an
        involuntary case under any such law, or the consent by the Issuer to the
        appointment or taking possession by a receiver, liquidator, assignee, custodian,
        trustee, sequestrator or similar official of the Issuer or for any substantial
        part of the assets of the Trust Estate, or the making by the Issuer of any
        general assignment for the benefit of creditors, or the failure by the Issuer
        generally to pay its debts as such debts become due, or the taking of any
        action
        by the Issuer in furtherance of any of the foregoing; or

       

      (vi) the
        Issuer becomes subject to federal income tax.

       

      “Excess
        Overcollateralized Amount”: With respect to the Class A Notes and the Mezzanine
        Notes and any Payment Date, the excess, if any, of (i) the Overcollateralized
        Amount for such Payment Date (calculated for this purpose only after assuming
        that 100% of the Principal Remittance Amount on such Payment Date has been
        paid)
        over (ii) the Overcollateralization Target Amount for such Payment
        Date.

       

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

       

      “Expense
        Adjusted Mortgage Rate”: With respect to any Mortgage Loan (or the related REO
        Property), as of any date of determination, a per annum rate of interest
        equal
        to the applicable Mortgage Rate thereon as of the close of business on the
        first
        day of the calendar month preceding the month in which the Payment Date occurs
        minus the sum of (i) the Indenture Trustee Fee Rate, (ii) the Servicing Fee
        Rate
        and (iii) a rate per annum equal to the product of (a) a fraction, the numerator
        of which is the Owner Trustee Fee for the related Payment Date and the
        denominator of which is aggregate Stated Principal Balance of the Mortgage
        Loans
        as of the last day of the related Due Period and (b) 12.

       

      “Expenses”:
        The meaning specified in Section 7.02 of the Trust Agreement.

       

      “Fannie
        Mae”: Fannie Mae, formerly known as the Federal National Mortgage Association,
        or any successor thereto.

       

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

       

      “Final
        Stated Maturity Date”: With respect to each Class of Notes, the Payment Date in
        July 2036. 

       

      “Final
        Recovery Determination”: With respect to any defaulted Mortgage Loan or any REO
        Property (other than a Mortgage Loan or REO Property (i) purchased by NC
        Capital, the Depositor or the Servicer pursuant to or as contemplated by
        Section
        2.04 hereof, Section 3.16(c) of the Servicing Agreement or (ii) removed from
        the
        Trust pursuant to Section 8.07 hereof), a determination made by the Servicer
        that all Insurance Proceeds, Liquidation Proceeds and other payments or
        recoveries which the Servicer, in its reasonable good faith judgment, expects
        to
        be finally recoverable in respect thereof have been so recovered. The Servicer
        shall maintain records, prepared by a Servicing Officer, of each Final Recovery
        Determination made thereby.

       

      “Fitch”:
        Fitch Ratings or its successor in interest.

       

      “Fixed
        Rate Notes”: Any Class A Notes (other than the Class AV-1 Notes) or Mezzanine
        Notes.

       

      “Floating
        Rate Notes”: The Class AV-1 Notes.

       

      “Form
        8-K
        Disclosure Information”: As defined in Section 4.02(b)(ii) of the Servicing
        Agreement.

       

      “Freddie
        Mac”: Freddie Mac, formerly known as the Federal Home Loan Mortgage Corporation,
        or any successor thereto.

       

      “Grant”:
        Pledge, bargain, sell, warrant, alienate, remise, release, convey, assign,
        transfer, create, and grant a lien upon and a security interest in and right
        of
        set-off against, 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 such collateral or other agreement or instrument and all other moneys
        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.

       

      “Highest
        Priority”: As of any date of determination, the Class of Mezzanine Notes then
        outstanding with a Note Balance greater than zero, with the highest priority
        for
        payments pursuant to Section 3.05 hereof, in the following order: Class M-1,
        Class M-2, Class M-3, Class M-4, Class M-5 and Class M-6 Notes.

       

      “Indemnified
        Party”: The meaning specified in Section 7.02 of the Trust
        Agreement.

       

      “Indenture”:
        The indenture dated as of June 22, 2006, between the Issuer and the Indenture
        Trustee, relating to the New Century Alternative Mortgage Loan Trust 2006-ALT1,
        Asset-Backed Notes, Series 2006-ALT1.

       

      “Indenture
        Trustee”: Deutsche Bank National Trust Company, and its successors and assigns
        or any successor indenture trustee appointed pursuant to the terms of the
        Indenture.

       

      “Indenture
        Trustee Fee”: With respect to any Payment Date, one month’s interest accrued at
        the Indenture Trustee Fee Rate on the Stated Principal Balance of each Mortgage
        Loan as of the first day of the related Due Period.

       

      “Indenture
        Trustee Fee Rate”: 0.0053% per annum 

       

      “Independent”:
        When used with respect to any specified Person, the Person (i) is in fact
        independent of the Issuer, any other obligor on the Notes, the Seller, the
        Servicer, the Depositor and any Affiliate of any of the foregoing Persons,
        (ii)
        does not have any direct financial interest or any material indirect financial
        interest in the Issuer, any such other obligor, the Seller, the Servicer,
        the
        Depositor or any Affiliate of any of the foregoing Persons and (iii) is not
        connected with the Issuer, any such other obligor, the Seller, the Servicer,
        the
        Depositor 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”: 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 10.01 hereof, made by an independent
        appraiser or other expert appointed by an Issuer Request, and such opinion
        or
        certificate shall state that the signer has read the definition of “Independent”
in this Indenture and that the signer is Independent within the meaning
        thereof.

       

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

       

      “Initial
        Deposit”: With respect to the Mortgage Loans with a first Monthly Payment due on
        July 1, 2006, an amount equal to $219,600.36.

       

      “Initial
        Note Balance”: As set forth in Section 2.02 hereof.

       

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

       

      “Interest
        Accrual Period”: With
        respect to any Payment Date and the Floating Rate Notes, the period
        commencing on the Payment Date of the month immediately preceding the month
        in
        which such Payment Date occurs (or, in the case of the first Payment Date,
        commencing on the Closing Date) and ending on the day preceding such Payment
        Date. With respect to any Payment Date and the Fixed Rate Notes, the calendar
        month preceding the month in which such Payment Date occurs. 

       

      “Interest
        Carry Forward Amount”: With respect to any Payment Date and any Class of Class A
        Notes or Mezzanine Notes, the sum of (i) the amount, if any, by which (a)
        the
        Interest Payment Amount for such Class of Notes as of the immediately preceding
        Payment Date exceeded (b) the actual amount paid on such Class of Notes in
        respect of interest on such immediately preceding Payment Date, (ii) the
        amount
        of any Interest Carry Forward Amount for such Class of Notes remaining unpaid
        from the previous Payment Date and (iii) accrued interest on the sum of (i)
        and
        (ii) above calculated at the related Note Rate for the most recently ended
        Interest Accrual Period.

       

      “Interest
        Determination Date”: With respect to the Floating Rate Notes and any Interest
        Accrual Period therefor, the second London Business Day preceding the
        commencement of such Interest Accrual Period.

       

      “Interest
        Payment Amount”: With respect to any Payment Date and any Class of Class A Notes
        and Mezzanine Notes, the aggregate Accrued Note Interest on the Notes of
        such
        Class for such Payment Date.

       

      “Interest
        Remittance Amount”: With respect to any Payment Date, that portion of the
        Available Payment Amount for such Payment Date allocable to interest received
        or
        advanced on the Mortgage Loans and any Subsequent Recoveries. In addition,
        the
        Interest Remittance Amount for the first Payment Date will be increased by
        the
        Initial Deposit.

       

      “Investment
        Company Act”: The Investment Company Act of 1940, as amended, and any amendments
        thereto.

       

      “IRS”:
        The Internal Revenue Service.

       

      “Issuer”:
        New Century Alternative Mortgage Loan Trust 2006-ALT1, a Delaware statutory
        trust, or its successor in interest.

       

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

       

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

       

      “Lien”:
        Any mortgage, deed of trust, pledge, conveyance, hypothecation, assignment,
        participation, deposit arrangement, encumbrance, lien (statutory or other),
        preference, priority right or interest or other security agreement or
        preferential arrangement of any kind or nature whatsoever, including, without
        limitation, any conditional sale or other title retention agreement, any
        financing lease having substantially the same economic effect as any of the
        foregoing and the filing of any financing statement under the UCC (other
        than
        any such financing statement filed for informational purposes only) or
        comparable law of any jurisdiction to evidence any of the foregoing; provided,
        however, that any assignment pursuant to Section 6.02 of the Servicing Agreement
        shall not be deemed to constitute a Lien.

       

      “Liquidation
        Event”: With respect to any Mortgage Loan, any of the following events: (i) such
        Mortgage Loan is paid in full; (ii) a Final Recovery Determination is made
        as to
        such Mortgage Loan; or (iii) such Mortgage Loan is removed from the Trust
        by
        reason of (A) its being purchased, sold or replaced pursuant to or as
        contemplated by Section 2.03 hereof or Section 3.16(c) of the Servicing
        Agreement or (B) the Servicer redeeming the Notes pursuant to Section 8.07
        hereof. With respect to any REO Property, either of the following events:
        (i) a
        Final Recovery Determination is made as to such REO Property; or (ii) such
        REO
        Property is removed from the Trust by reason of the Servicer redeeming the
        Notes
        pursuant to Section 8.07 hereof.

       

      “Liquidation
        Proceeds”: The amount (other than Insurance Proceeds or amounts received in
        respect of the rental of any REO Property prior to REO Disposition) received
        by
        the Servicer in connection with (i) the taking of all or a part of a Mortgaged
        Property by exercise of the power of eminent domain or condemnation, (ii)
        the
        liquidation of a defaulted Mortgage Loan through a trustee’s sale, foreclosure
        sale or otherwise, (iii) the repurchase, substitution or sale of a Mortgage
        Loan
        or an REO Property pursuant to or as contemplated by Section 2.03 hereof
        or
        Section 3.16(c) of the Servicing Agreement, or (iv) the removal from the
        Trust
        of a Mortgage Loan or an REO Property pursuant to Section 8.07
        hereof.

       

      “Loan-to-Value
        Ratio”: As of any date of determination, the fraction, expressed as a
        percentage, the numerator of which is the principal balance of the related
        Mortgage Loan at such date (and, with respect to any second lien Mortgage
        Loan,
        the principal balance of the related first lien Mortgage Loan plus the principal
        balance of such second lien Mortgage Loan) and the denominator of which is
        the
        Value of the related Mortgaged Property.

       

      “Lockout
        Note Percentage”: The Lockout Note Percentage for the Class AF-6 Notes will be
        calculated for each Payment Date to be the percentage equal to the Note Balance
        of the Class AF-6 Notes immediately prior to such Payment Date divided by
        the
        aggregate Note Balance of the Class A Notes immediately prior to such Payment
        Date.

       

      “Lockout
        Payment Percentage”: The Lockout Payment Percentage for the Class AF-6 Notes and
        any Payment Date means the indicated percentage of the Lockout Note Percentage
        for such Payment Date:

       

      
        	
                Distribution
                  Date Occurring In

              	 	
                Percentage

              
	
                June
                  2006 through May 2009

              	 	
                0%

              
	
                June
                  2009 through May 2011

              	 	
                45%

              
	
                June
                  2011 through May 2012

              	 	
                80%

              
	
                June
                  2012 through May 2013

              	 	
                100%

              
	
                June
                  2013 and thereafter

              	 	
                300%

              

      

      

       

      “London
        Business Day”: Any day on which banks in the City of London and New York are
        open and conducting transactions in United States dollars.

       

      “Majority
        Certificateholder”: A Holder of a 50.01% or greater Certificate Percentage
        Interest of the Certificates.

       

      “Mezzanine
        Note”: Any Class M-1 Note, Class M-2 Note, Class M-3 Note, Class M-4 Note, Class
        M-5 Note or Class M-6 Note.

       

      “Monthly
        Payment”: With respect to any Mortgage Loan, the scheduled monthly payment of
        principal and interest on such Mortgage Loan which is payable by the related
        Mortgagor from time to time under the related Mortgage Note, determined:
        (a)
        after giving effect to (i) any Deficient Valuation and/or Debt Service Reduction
        with respect to such Mortgage Loan and (ii) any reduction in the amount of
        interest collectible from the related Mortgagor pursuant to the Relief Act;
        (b)
        without giving effect to any extension granted or agreed to by the Servicer
        pursuant to Section 3.07 of the Servicing Agreement and (c) on the assumption
        that all other amounts, if any, due under such Mortgage Loan are paid when
        due.

       

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

       

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

       

      “Mortgage
        File”: The mortgage documents listed in Section 2.1 of the Mortgage Loan
        Purchase Agreement pertaining to a particular Mortgage Loan and any additional
        documents required to be added to the Mortgage File pursuant to the Mortgage
        Loan Purchase Agreement.

       

      “Mortgage
        Loan”: Each mortgage loan transferred and assigned to the Trust and delivered
        to
        the Trust pursuant to Section 2.1 of the Mortgage Loan Purchase Agreement
        or
        Section 2.04(b) of the Servicing Agreement, as held from time to time as
        a part
        of the Trust, the Mortgage Loans so held being identified in the Mortgage
        Loan
        Schedule.

       

      “Mortgage
        Loan Schedule”: With respect to any date, the schedule of Mortgage Loans held by
        the Issuer on such date. The schedule of Mortgage Loans as of the Cut-off
        Date
        is the schedule set forth in Exhibit B of the Indenture, which schedule sets
        forth as to each Mortgage Loan:

       

      
        	 	
                (i)

              	
                the
                  Mortgage Loan identifying number;

              
	 	 	 
	 	
                (ii)

              	
                the
                  state and zip code of the Mortgaged Property;

              
	 	 	 
	 	
                (iii)

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

              
	 	 	 
	 	
                (iv)

              	
                the
                  type of Residential Dwelling constituting the Mortgaged
                  Property;

              
	 	 	 
	 	
                (v)

              	
                the
                  original months to maturity;

              
	 	 	 
	 	
                (vi)

              	
                the
                  stated remaining months to maturity from the Cut-off Date based
                  on the
                  original amortization schedule;

              
	 	 	 
	 	
                (vii)

              	
                the
                  Loan-to-Value Ratio at origination;

              
	 	 	 
	 	
                (viii)

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

              
	 	 	 
	 	
                (ix)

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

              
	 	 	 
	 	
                (x)

              	
                the
                  stated maturity date;

              
	 	 	 
	 	
                (xi)

              	
                the
                  amount of the Monthly Payment at origination;

              
	 	 	 
	 	
                (xii)

              	
                the
                  amount of the Monthly Payment due on the first Due Date after the
                  Cut-off
                  Date;

              
	 	 	 
	 	
                (xiii)

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

              
	 	 	 
	 	
                (xiv)

              	
                the
                  original principal amount of the Mortgage Loan;

              
	 	 	 
	 	
                (xv)

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

              
	 	 	 
	 	
                (xvi)

              	
                [reserved];

              
	 	 	 
	 	
                (xvii)

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

              
	 	 	 
	 	
                (xviii)

              	
                the
                  Mortgage Rate at origination;

              
	 	 	 
	 	
                (xix)

              	
                a
                  code indicating the documentation program (i.e., Full Documentation,
                  Limited Documentation, Stated Income Documentation);

              
	 	 	 
	 	
                (xx)

              	
                the
                  risk grade;

              
	 	 	 
	 	
                (xxi)

              	
                the
                  Value of the Mortgaged Property;

              
	 	 	 
	 	
                (xxii)

              	
                the
                  sale price of the Mortgaged Property, if applicable;

              
	 	 	 
	 	
                (xxiii)
                  

              	
                the
                  actual unpaid Stated Principal Balance of the Mortgage Loan as
                  of the
                  Cut-off Date;

              
	 	 	 
	 	
                (xxiv)

              	
                the
                  type and term of the related Prepayment Charge;

              
	 	 	 
	 	
                (xxv)

              	
                the
                  rounding code (i.e., nearest 0.125%, next highest
                  0.125%);

              
	 	 	 
	 	
                (xxvi)

              	
                the
                  program code; and

              
	 	 	 
	 	
                (xxvii)
                  

              	
                the
                  total amount of points and fees charged such Mortgage
                  Loan.

              

      

       

      The
        Mortgage Loan Schedule shall set forth the following information with respect
        to
        the Mortgage Loans as of the Cut-off Date: (1) the number of Mortgage Loans;
        (2)
        the current Stated Principal Balance of the Mortgage Loans; (3) the weighted
        average Mortgage Rate of the Mortgage Loans and (4) the weighted average
        maturity of the Mortgage Loans. With respect to any Qualified Substitute
        Mortgage Loan, the Cut-off Date shall refer to the related Cut-off Date for
        such
        Mortgage Loan, determined in accordance with the definition of Cut-off Date
        herein.

       

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

       

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

       

      “Mortgage
        Rate”: With respect to each Mortgage Loan, the annual rate at which interest
        accrues on such Mortgage Loan from time to time in accordance with the
        provisions of the related Mortgage Note, which rate with respect to each
        Mortgage Loan shall remain constant at the rate set forth in the Mortgage
        Loan
        Schedule as the Mortgage Rate in effect immediately following the Cut-off
        Date.

       

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

       

      “Mortgagor”:
        The obligor on a Mortgage Note.

       

      “NC
        Capital” or “Responsible Party”: NC Capital Corporation, or its successor in
        interest.

       

      “Net
        Monthly Excess Cashflow”: With respect to any Payment Date, the sum of (i) any
        Overcollateralization Reduction Amount for such Payment Date and (ii) the
        excess
        of (x) the Available Payment Amount for such Payment Date over (y) the sum
        for
        such Payment Date of (A) the Senior Interest Payment Amount paid to the Holders
        of the Class A Notes and the Interest Payment Amount paid to the Holders
        of the
        Mezzanine Notes and (B) the Principal Remittance Amount.

       

      “Net
        Mortgage Rate”: With respect to any Mortgage Loan (or the related REO Property)
        as of any date of determination, a per annum rate of interest equal to the
        then
        applicable Mortgage Rate for such Mortgage Loan minus the Servicing Fee
        Rate.

       

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

       

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

       

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

       

      “Note”:
        Any one of the Asset Backed Notes, Series 2006-ALT1, Class AV-1, Class AF-2,
        Class AF-3, Class AF-4, Class AF-5, Class AF-6, Class M-1, Class M-2, Class
        M-3,
        Class M-4, Class M-5 and Class M-6 issued under the Indenture.

       

      “Note
        Balance”: With respect to each Class A Note or Mezzanine Note as of any date of
        determination, the Note Balance of such Note on the Payment Date immediately
        prior to such date of determination plus, with respect to each Class of
        Mezzanine Notes, any increase in the Note Balance of such Note pursuant to
        Section 3.05 hereof due to the receipt of Subsequent Recoveries, minus all
        payments of principal made thereon and in the case of each Class of Mezzanine
        Notes, Realized Losses allocated thereto on such immediately prior Payment
        Date
        (or, in the case of any date of determination up to and including the first
        Payment Date, the initial Note Balance of such Note, as stated on the face
        thereof).

       

      “Note
        Margin”: With respect to the Class AV-1 Notes, the margin set forth
        below:

       

      
        	 	
                Note
                  Margin

              
	
                Class

              	
                (1)
                  (%)

              	
                (2)
                  (%)

              
	
                AV-1

              	
                0.06000

              	
                0.06000

              

      

       

      
        	 	
                _______________

              
	 	
                (1)

              	
                For
                  the Interest Accrual Period for each Payment Date through and including
                  the first Payment Date on which the aggregate Stated Principal
                  Balance of
                  the Mortgage Loans remaining in the Mortgage Pool is reduced to
                  less than
                  10% of the aggregate Stated Principal Balance of the Mortgage Loans
                  as of
                  the Cut-off Date.

              
	 	
                (2)

              	
                For
                  the Interest Accrual Period for each Payment Date
                  thereafter.

              
	 	 	 

      

      “Note
        Owner”: The Beneficial Owner of a Note.

       

      “Note
        Rate”: With respect to the Floating Rate Notes and any Payment Date, a rate per
        annum equal to the lesser of (i) One-Month LIBOR plus the related Note Margin
        for such Payment Date and (ii) the Available Funds Rate for such Payment
        Date.

       

      With
        respect to any Class of Fixed Rate Notes and any Payment Date, the lesser
        of (i)
        the applicable fixed rate per annum set forth below and (ii) the Available
        Funds
        Rate for such Payment Date.

       

      
        	 	
                Rate

              
	
                Class

              	
                (1)

              	
                (2)

              
	
                AF-2

              	
                5.90936%
                  per annum

              	
                5.90936%
                  per annum

              
	
                AF-3

              	
                6.17307%
                  per annum

              	
                6.17307%
                  per annum

              
	
                AF-4

              	
                6.31000%
                  per annum

              	
                6.81000%
                  per annum

              
	
                AF-5

              	
                6.31000%
                  per annum

              	
                6.81000%
                  per annum

              
	
                AF-6

              	
                6.16696%
                  per annum

              	
                6.66696%
                  per annum

              
	
                M-1

              	
                6.31000%
                  per annum

              	
                6.81000%
                  per annum

              
	
                M-2

              	
                6.31000%
                  per annum

              	
                6.81000%
                  per annum

              
	
                M-3

              	
                6.31000%
                  per annum

              	
                6.81000%
                  per annum

              
	
                M-4

              	
                6.31000%
                  per annum

              	
                6.81000%
                  per annum

              
	
                M-5

              	
                6.31000%
                  per annum

              	
                6.81000%
                  per annum

              
	
                M-6

              	
                6.31000%
                  per annum

              	
                6.81000%
                  per annum

              

      

      _________

      
        	
                (1)

              	
                For
                  the Interest Accrual Period for each Payment Date through and including
                  the first Payment Date on which the aggregate Stated Principal
                  Balance of
                  the Mortgage Loans remaining in the Trust is reduced to less than
                  10% of
                  the aggregate Stated Principal Balance of the Mortgage Loans as
                  of the
                  Cut-off Date.

              

        	
                (2)

              	For each Interest Accrual Period
                thereafter.

      

      

      “Note
        Register”: The register maintained by the Note Registrar in which the Note
        Registrar shall provide for the registration of Notes and of transfers and
        exchanges of Notes.

       

      “Note
        Registrar”: The Indenture Trustee, in its capacity as Note Registrar, or any
        successor to the Indenture Trustee in such capacity.

       

      “Noteholder”
        or “Holder”: The Person in whose name a Note is registered in the Note Register,
        except that, any Note registered in the name of the Depositor, the Issuer,
        the
        Indenture Trustee, the Seller or the Servicer or any Affiliate of any of
        them
        shall be deemed not to be a holder or holders, nor shall any so owned be
        considered outstanding, for purposes of giving any request, demand,
        authorization, direction, notice, consent or waiver under the Indenture or
        the
        Trust Agreement; provided that, in determining whether the Indenture Trustee
        shall be protected in relying upon any such request, demand, authorization,
        direction, notice, consent or waiver, only Notes that a Responsible Officer
        of
        the Indenture Trustee or the Owner Trustee actually knows to be so owned
        shall
        be so disregarded. Owners of Notes that have been pledged in good faith may
        be
        regarded as Holders if the pledgee establishes to the satisfaction of the
        Indenture Trustee or the Owner 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 or any Affiliate of any of the foregoing Persons.

       

      “Officer’s
        Certificate”: With respect to the Servicer, a certificate signed by the
        President, Managing Director, a Director, a Vice President or an Assistant
        Vice
        President, of the Servicer and delivered to the Indenture Trustee. With respect
        to the Issuer, a certificate signed by any Authorized Officer of the Issuer,
        under the circumstances described in, and otherwise complying with, the
        applicable requirements of Section 10.01 hereof, and delivered to the Indenture
        Trustee. Unless otherwise specified, any reference in the Indenture to an
        Officer’s Certificate shall be to an Officer’s Certificate of any Authorized
        Officer of the Issuer.

       

      “One-Month
        LIBOR”: With respect to the Floating Rate Notes and any Interest Accrual Period
        therefor, the rate determined by the Indenture Trustee on the related Interest
        Determination Date on the basis of the offered rate for one-month U.S. dollar
        deposits, as such rate appears on Telerate Page 3750 as of 11:00 a.m. (London
        time) on such Interest Determination Date; provided that if such rate does
        not
        appear on Telerate Page 3750, the rate for such date will be determined on
        the
        basis of the offered rates of the Reference Banks for one-month U.S. dollar
        deposits, as of 11:00 a.m. (London time) on such Interest Determination Date.
        In
        such event, the Indenture Trustee will request the principal London office
        of
        each of the Reference Banks to provide a quotation of its rate. If on such
        Interest Determination Date, two or more Reference Banks provide such offered
        quotations, One-Month LIBOR for the related Interest Accrual Period shall
        be the
        arithmetic mean of such offered quotations (rounded upwards if necessary
        to the
        nearest whole multiple of 1/16%). If on such Interest Determination Date,
        fewer
        than two Reference Banks provide such offered quotations, One-Month LIBOR
        for
        the related Interest Accrual Period shall be the higher of (i) LIBOR as
        determined on the previous Interest Determination Date and (ii) the Reserve
        Interest Rate. Notwithstanding the foregoing, if, under the priorities described
        above, LIBOR for an Interest Determination Date would be based on LIBOR for
        the
        previous Interest Determination Date for the third consecutive Interest
        Determination Date, the Indenture Trustee, after consultation with the Servicer,
        shall select an alternative comparable index (over which the Indenture Trustee
        has no control), used for determining one-month Eurodollar lending rates
        that is
        calculated and published (or otherwise made available) by an independent
        party.

       

      “Opinion
        of Counsel”: A written opinion of counsel acceptable to the Indenture Trustee,
        in its reasonable discretion which counsel may be in-house counsel for the
        Servicer if acceptable to the Indenture Trustee and the Rating Agencies or
        counsel for the Depositor, as the case may be.

       

      “Originators”:
        New Century Mortgage Corporation and Home123 Corporation, or their successors
        in
        interest, in their capacity as originators of the Mortgage Loans.

       

      “Outstanding”:
        With respect to the Notes, as of the date of determination, all Notes
        theretofore executed, authenticated and delivered under this Indenture
        except:

       

      (i) Notes
        theretofore canceled by the Note Registrar or delivered to the Indenture
        Trustee
        for cancellation; and

       

      (ii) Notes
        in
        exchange for or in lieu of which other Notes have been executed, authenticated
        and delivered pursuant to the Indenture unless proof satisfactory to the
        Indenture Trustee is presented that any such Notes are held by a holder in
        due
        course;

       

      “Overcollateralization
        Deficiency Amount”: With respect to any Payment Date, the excess, if any, of (a)
        the Overcollateralization Target Amount applicable to such Payment Date over
        (b)
        the Overcollateralized Amount applicable to such Payment Date (calculated
        for
        this purpose only, after assuming that 100% of the Principal Remittance Amount
        on such Payment Date has been paid).

       

      “Overcollateralization
        Increase Amount”: With respect to any Payment Date, the lesser of (a) the
        Overcollateralization Deficiency Amount as of such Payment Date and (b) the
        Net
        Monthly Excess Cashflow Amount with respect to such Payment Date and any
        Prepayment Charges collected during the related Prepayment Period.

       

      “Overcollateralization
        Reduction Amount”: With respect to any Payment Date, an amount equal to the
        lesser of (a) the Excess Overcollateralized Amount and (b) the Principal
        Remittance Amount.

       

      “Overcollateralization
        Target Amount”: With respect to any Payment Date (a) prior to the Stepdown Date,
        an amount equal to 2.00% of the aggregate Stated Principal Balance of the
        Mortgage Loans as of the Cut-off Date; (b) on or after the Stepdown Date
        provided a Trigger Event is not in effect, the greater of (i) 4.00% of the
        aggregate Stated Principal Balance of the Mortgage Loans as of the last day
        of
        the related Due Period and (ii) $2,609,047.87; and (c) on or after the Stepdown
        Date and if a Trigger Event is in effect, the Overcollateralization Target
        Amount for the immediately preceding Payment Date. Notwithstanding the
        foregoing, on and after any Payment Date following the reduction of the
        aggregate Note Balance of the Notes to zero, the Overcollateralization Target
        Amount will be zero. 

       

      “Overcollateralized
        Amount”: With respect to any Payment Date, the excess, if any, of (a) the
        aggregate Stated Principal Balance of the Mortgage Loans and REO Properties
        as
        of the last day of the related Due Period over (b) the aggregate Note Balance
        of
        the Class A Notes and the Mezzanine Notes (after giving effect to payments
        to be
        made on such Payment Date).

       

      “Owner
        Trust Estate”: The corpus of the Issuer created by the Trust Agreement which
        consists of items referred to in Section 3.01 of the Trust
        Agreement.

       

      “Owner
        Trustee”: Wilmington Trust Company, acting not in its individual capacity but
        solely as Owner Trustee, and its successors and assigns or any successor
        owner
        trustee appointed pursuant to the terms of the Trust Agreement.

       

      “Owner
        Trustee Fee”: The initial fee and the first year annual administration fee
        payable to the Owner Trustee on the Closing Date and with respect to each
        Payment Date beginning on the 13th
        Payment
        Date, one twelfth (1/12) of the Owner Trustee’s annual administration fee, which
        the Owner Trustee shall provide to the Servicer and the Indenture
        Trustee.

       

      “Paying
        Agent”: Any paying agent or co-paying agent appointed pursuant to Section 3.03
        hereof, which initially shall be the Indenture Trustee.

       

      “Payment
        Account”: The trust account or accounts created and maintained by the Indenture
        Trustee pursuant to Section 3.01 hereof, which shall be entitled “Deutsche Bank
        National Trust Company, as Indenture Trustee, in trust for the registered
        holders of New Century Alternative Mortgage Loan Trust 2006-ALT1, Asset Backed
        Notes.” The Payment Account must be an Eligible Account.

       

      “Payment
        Date”: The 25th
        day of
        any month, or if such 25th
        day is
        not a Business Day, the Business Day immediately following such 25th
        day,
        commencing in June 2006.

       

      “Percentage
        Interest”: With respect to any Note, the percentage obtained by dividing the
        Note Balance of such Note by the aggregate Note Balances of all Notes of
        that
        Class. With respect to any Certificate, the percentage as stated on the face
        thereof.

       

      “Permitted
        Investments”: Any one or more of the following obligations or securities
        acquired at a purchase price of not greater than par, regardless of whether
        issued by the Depositor, the Servicer, the Indenture Trustee or any of their
        respective Affiliates:

       

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

       

      (ii) demand
        and time deposits in, certificates of deposit of, or bankers’ acceptances issued
        by, any Depository Institution;

       

      (iii) repurchase
        obligations with respect to any security described in clause (i) above entered
        into with a Depository Institution (acting as principal);

       

      (iv) securities
        bearing interest or sold at a discount that are issued by any corporation
        incorporated under the laws of the United States of America or any state
        thereof
        and that are rated by each Rating Agency that rates such securities in its
        highest long-term unsecured rating categories at the time of such investment
        or
        contractual commitment providing for such investment;

       

      (v) commercial
        paper (including both non-interest-bearing discount obligations and
        interest-bearing obligations payable on demand or on a specified date not
        more
        than 30 days after the date of acquisition thereof) that is rated by each
        Rating
        Agency that rates such securities in its highest short-term unsecured debt
        rating available at the time of such investment;

       

      (vi) units
        of
        money market funds that have been rated “AAAm” or “AAAm-G” by S&P;
        and

       

      (viii) if
        previously confirmed in writing to the Indenture Trustee, any other demand,
        money market or time deposit, or any other obligation, security or investment,
        as may be acceptable to the Rating Agencies as a permitted investment of
        funds
        backing securities having ratings equivalent to its highest initial rating
        of
        the Class A Notes;

       

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

       

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

       

      “P&I
        Advance”: As to any Mortgage Loan or REO Property, any advance made by the
        Servicer in respect of any Payment Date pursuant to Section 4.01 of the
        Servicing Agreement.

       

      “Plan”:
        Any employee benefit plan or certain other retirement plans and arrangements,
        including individual retirement accounts and annuities, Keogh plans and bank
        collective investment funds and insurance company general or separate accounts
        in which such plans, accounts or arrangements are invested, that are subject
        to
        ERISA or Section 4975 of the Code.

       

      “Plan
        Assets”: Assets of a Plan within the meaning of Department of Labor regulation
        29 C.F.R. § 2510.3-101.

       

      “Prepayment
        Assumption”: As set forth in the Prospectus Supplement.

       

      “Prepayment
        Charge”: With respect to any Prepayment Period, any prepayment premium, penalty
        or charge payable by a Mortgagor in connection with any Principal Prepayment
        on
        a Mortgage Loan pursuant to the terms of the related Mortgage Note.

       

      “Prepayment
        Interest Shortfall”: With respect to any Payment Date, for each Mortgage Loan
        that was during the related Prepayment Period the subject of a Principal
        Prepayment in full or in part that was applied by the Servicer to reduce
        the
        outstanding Stated Principal Balance of such loan on a date preceding the
        Due
        Date in the succeeding Prepayment Period, an amount equal to one month’s
        interest at the applicable Net Mortgage Rate less any payments of interest
        made
        by the Mortgagor. The obligations of the Servicer in respect of any Prepayment
        Interest Shortfall are set forth in Section 3.24 of the Servicing
        Agreement.

       

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

       

      “Principal
        Payment Amount”: With respect to any Payment Date, the sum of (i) the principal
        portion of each Monthly Payment on the Mortgage Loans due during the related
        Due
        Period, actually received on or prior to the related Determination Date or
        advanced on or before the related Servicer Remittance Date; (ii) the Stated
        Principal Balance of any Mortgage Loan that was purchased during the related
        Prepayment Period pursuant to or as contemplated by Section 2.04 or Section
        3.16(c) of the Servicing Agreement and the amount of any shortfall deposited
        in
        the Collection Account in connection with the substitution of a Deleted Mortgage
        Loan pursuant to Section 2.04 of the Servicing Agreement during the related
        Prepayment Period; (iii) the principal portion of all other unscheduled
        collections (including, without limitation, Principal Prepayments, Insurance
        Proceeds, Liquidation Proceeds and REO Principal Amortization) received during
        the related Prepayment Period, net of any portion thereof that represents
        a
        recovery of principal for which an advance was made by the Servicer pursuant
        to
        Section 4.01 of the Servicing Agreement in respect of a preceding Payment
        Date;
        (iv) on the Payment Date on which the Notes are to be redeemed pursuant to
        Section 8.07 hereof, that portion of the Redemption Price, in respect of
        principal on the Mortgage Loans and (v) the Overcollateralization Increase
        Amount for such Payment Date minus
        (vi) the
        Overcollateralization Reduction Amount for such Payment Date.

       

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

       

      “Principal
        Remittance Amount”: With respect to any Payment Date, the sum of the amounts set
        forth in clauses (i) through (iii) of the definition of Principal Payment
        Amount.

       

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

       

      “Prospectus
        Supplement”: That certain Prospectus Supplement dated June 7, 2006, relating to
        the public offering of the Class A Notes and the Mezzanine Notes.

       

      “Purchase
        Price”: With respect to any Mortgage Loan or REO Property to be purchased
        pursuant to or as contemplated by Section 2.03 hereof or Section 3.16(c)
        of the
        Servicing Agreement, and as confirmed by an Officer’s Certificate from the
        Servicer to the Indenture Trustee, an amount equal to the sum of (i) 100%
        of the
        Stated Principal Balance thereof as of the date of purchase, (ii) in the
        case of
        (x) a Mortgage Loan, accrued interest on such Stated Principal Balance at
        the
        applicable Mortgage Rate in effect from time to time from the Due Date as
        to
        which interest was last covered by a payment by the Mortgagor or an advance
        by
        the Servicer, which payment or advance had as of the date of purchase been
        paid
        pursuant to Section 3.05 hereof, through the end of the calendar month in
        which
        the purchase is to be effected and (y) an REO Property, the sum of (1) accrued
        interest on such Stated Principal Balance at the applicable Mortgage Rate
        in
        effect from time to time from the Due Date as to which interest was last
        covered
        by a payment by the Mortgagor or an advance by the Servicer through the end
        of
        the calendar month immediately preceding the calendar month in which such
        REO
        Property was acquired, plus (2) REO Imputed Interest for such REO Property
        for
        each calendar month commencing with the calendar month in which such REO
        Property was acquired and ending with the calendar month in which such purchase
        is to be effected, net of the total of all net rental income, Insurance
        Proceeds, Liquidation Proceeds and P&I Advances that as of the date of
        purchase had been paid as or to cover REO Imputed Interest pursuant to Section
        3.05 hereof, (iii) any unreimbursed Servicing Advances and P&I Advances
        (including Nonrecoverable P&I Advances and Nonrecoverable Servicing
        Advances) and any unpaid Servicing Fees allocable to such Mortgage Loan or
        REO
        Property, (iv) any amounts previously withdrawn from the Collection Account
        in
        respect of such Mortgage Loan or REO Property pursuant to Section 3.11(a)(ix)
        and Section 3.16(b) of the Servicing Agreement, and (v) in the case of a
        Mortgage Loan required to be purchased pursuant to Section 2.03 hereof or
        purchased by the Servicer pursuant to Section 3.16(c) of the Servicing
        Agreement, expenses reasonably incurred or to be incurred by the Servicer
        or the
        Indenture Trustee in respect of the breach or defect giving rise to the purchase
        obligation including any costs and damages incurred by the Trust in connection
        with any violation by such loan of any predatory or abusive lending
        law.

       

      “Qualified
        Substitute Mortgage Loan”: A mortgage loan substituted for a Deleted Mortgage
        Loan which must, on the date of such substitution, (i) have an outstanding
        Stated Principal Balance, after application of all scheduled payments of
        principal and interest due during or prior to the month of substitution,
        not in
        excess of the Stated Principal Balance of the Deleted Mortgage Loan as of
        the
        Due Date in the calendar month during which the substitution occurs, (ii)
        have a
        Mortgage Rate not less than (and not more than one percentage point in excess
        of) the Mortgage Rate of the Deleted Mortgage Loan, (iii) have a remaining
        term
        to maturity not greater than (and not more than one year less than) that
        of the
        Deleted Mortgage Loan, (viii) have the same Due Date as the Due Date on the
        Deleted Mortgage Loan, (ix) have a Loan-to-Value Ratio as of the date of
        substitution equal to or lower than the Loan-to-Value Ratio of the Deleted
        Mortgage Loan as of such date, (x) have a risk grading determined by the
        Originator at least equal to the risk grading assigned on the Deleted Mortgage
        Loan and (xi) conform to each representation and warranty set forth in Mortgage
        Loan Purchase Agreement applicable to the Deleted Mortgage Loan. In the event
        that one or more mortgage loans are substituted for one or more Deleted Mortgage
        Loans, the amounts described in clause (i) hereof shall be determined on
        the
        basis of aggregate Stated Principal Balances, the Mortgage Rates described
        in
        clause (ii) hereof shall be determined on the basis of weighted average Mortgage
        Rates, the terms described in clause (vii) hereof shall be determined on
        the
        basis of weighted average remaining term to maturity, the Loan-to-Value Ratios
        described in clause (ix) hereof shall be satisfied as to each such mortgage
        loan, the risk gradings described in clause (x) hereof shall be satisfied
        as to
        each such mortgage loan and, except to the extent otherwise provided in this
        sentence, the representations and warranties described in clause (xi) hereof
        must be satisfied as to each Qualified Substitute Mortgage Loan or in the
        aggregate, as the case may be.

       

      “Rate/Term
        Refinancing”: A Refinanced Mortgage Loan, the proceeds of which are not more
        than a nominal amount in excess of the existing first mortgage loan and any
        subordinate mortgage loan on the related Mortgaged Property and related closing
        costs, and were used exclusively (except for such nominal amount) to satisfy
        the
        then existing first mortgage loan and any subordinate mortgage loan of the
        Mortgagor on the related Mortgaged Property and to pay related closing
        costs.

       

      “Rating
        Agency” or “Rating Agencies”: Moody’s, Fitch, S&P or their successors. If
        such agencies or their successors are no longer in existence, “Rating Agencies”
shall be such nationally recognized statistical rating agencies, or other
        comparable Persons, designated by the Depositor, notice of which designation
        shall be given to the Indenture Trustee and the Servicer.

       

      “Realized
        Loss”: With respect to each Mortgage Loan as to which a Final Recovery
        Determination has been made, an amount (not less than zero) equal to (i)
        the
        unpaid Stated Principal Balance of such Mortgage Loan as of the commencement
        of
        the calendar month in which the Final Recovery Determination was made, plus
        (ii)
        accrued interest from the Due Date as to which interest was last paid by
        the
        Mortgagor through the end of the calendar month in which such Final Recovery
        Determination was made, calculated in the case of each calendar month during
        such period (A) at an annual rate equal to the annual rate at which interest
        was
        then accruing on such Mortgage Loan and (B) on a principal amount equal to
        the
        Stated Principal Balance of such Mortgage Loan as of the close of business
        on
        the Payment Date during such calendar month, plus (iii) any amounts previously
        withdrawn from the Collection Account in respect of such Mortgage Loan pursuant
        to Section 3.11(a)(ix) and Section 3.16(b) of the Servicing Agreement, minus
        (iv) the proceeds, if any, received in respect of such Mortgage Loan during
        the
        calendar month in which such Final Recovery Determination was made, net of
        amounts that are payable therefrom to the Servicer with respect to such Mortgage
        Loan pursuant to Section 3.11(a)(iii) of the Servicing Agreement.

       

      If
        the
        Servicer receives Subsequent Recoveries with respect to any Mortgage Loan,
        the
        amount of the Realized Loss with respect to that Mortgage Loan will be reduced
        to the extent such recoveries are applied as principal payments on any
        Payment Date.

       

      With
        respect to any REO Property as to which a Final Recovery Determination has
        been
        made, an amount (not less than zero) equal to (i) the unpaid principal balance
        of the related Mortgage Loan as of the date of acquisition of such REO Property
        on behalf of the Trust, plus (ii) accrued interest from the Due Date as to
        which
        interest was last paid by the Mortgagor in respect of the related Mortgage
        Loan
        through the end of the calendar month immediately preceding the calendar
        month
        in which such REO Property was acquired, calculated in the case of each calendar
        month during such period (A) at an annual rate equal to the annual rate at
        which
        interest was then accruing on the related Mortgage Loan and (B) on a principal
        amount equal to the Stated Principal Balance of the related Mortgage Loan
        as of
        the close of business on the Payment Date during such calendar month, plus
        (iii)
        REO Imputed Interest for such REO Property for each calendar month commencing
        with the calendar month in which such REO Property was acquired and ending
        with
        the calendar month in which such Final Recovery Determination was made, plus
        (iv) any amounts previously withdrawn from the Collection Account in respect
        of
        the related Mortgage Loan pursuant to Section 3.11(a)(ix) and Section 3.16(b)
        of
        the Servicing Agreement, minus (v) the aggregate of all P&I Advances and
        Servicing Advances (in the case of Servicing Advances, without duplication
        of
        amounts netted out of the rental income, Insurance Proceeds and Liquidation
        Proceeds described in clause (vi) below) made by the Servicer in respect
        of such
        REO Property or the related Mortgage Loan for which the Servicer has been
        or, in
        connection with such Final Recovery Determination, will be reimbursed pursuant
        to Section 3.23 of the Servicing Agreement out of rental income, Insurance
        Proceeds and Liquidation Proceeds received in respect of such REO Property,
        minus (vi) the total of all net rental income, Insurance Proceeds and
        Liquidation Proceeds received in respect of such REO Property that has been,
        or
        in connection with such Final Recovery Determination, will be transferred
        to the
        Payment Account pursuant to Section 3.23 of the Servicing
        Agreement.

       

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

       

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

       

      “Record
        Date”: With respect to each Payment Date and any Floating Rate Notes that are
        Book-Entry Notes, the Business Day immediately preceding such Payment Date.
        With
        respect to each Payment Date and any Fixed Rate Notes, or any Definitive
        Notes,
        the last Business Day of the month immediately preceding the month in which
        such
        Payment Date occurs, except in the case of the first Payment Date, in which
        case
        the Record Date will be the Closing Date.

       

      “Redemption
        Price”: As defined in Section 8.07 hereof.

       

      “Reference
        Banks”: Deutsche Bank AG, Barclay’s Bank PLC, The Tokyo Mitsubishi Bank and
        National Westminster Bank PLC and their successors in interest; provided,
        however, that if any of the foregoing banks are not suitable to serve as
        a
        Reference Bank, then any leading banks selected by the Indenture Trustee,
        after
        consultation with the Depositor, which are engaged in transactions in Eurodollar
        deposits in the international Eurocurrency market (i) with an established
        place
        of business in London and (ii) not controlling, under the control of or under
        common control with the Depositor or any Affiliate thereof.

       

      “Refinanced
        Mortgage Loan”: A Mortgage Loan the proceeds of which were not used to purchase
        the related Mortgaged Property.

       

      “Registered
        Holder”: The Person in whose name a Note is registered in the Note Register on
        the applicable Record Date.

       

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

       

      “Related
        Documents”: With respect to each Mortgage Loan, the documents specified in
        Section 2.1(b) of the Mortgage Loan Purchase Agreement and any documents
        required to be added to such documents pursuant to the Mortgage Loan Purchase
        Agreement, the Trust Agreement, Indenture or the Servicing
        Agreement.

       

      “Relief
        Act”: The Servicemembers Civil Relief Act or similar state law.

       

      “Relief
        Act Interest Shortfall”: With respect to any Payment Date and any Mortgage Loan,
        any reduction in the amount of interest collectible on such Mortgage Loan
        for
        the most recently ended calendar month as a result of the application of
        the
        Relief Act.

       

      “Remittance
        Report”: A report in form and substance mutually acceptable to the Indenture
        Trustee and the Servicer in an electronic format prepared by the Servicer
        pursuant to Section 4.01 of the Servicing Agreement with such additions,
        deletions and modifications as mutually agreed to by the Indenture Trustee
        and
        the Servicer.

       

      “Rents
        from Real Property”: With respect to any REO Property, gross income of the
        character described in Section 856(d) of the Code as being included in the
        term
“rents from real property.”

       

      “REO
        Account”: The account or accounts maintained, or caused to be maintained, by the
        Servicer in respect of an REO Property pursuant to Section 3.23 of the Servicing
        Agreement.

       

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

       

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

       

      “REO
        Principal Amortization”: With respect to any REO Property, for any calendar
        month, the excess, if any, of (a) the aggregate of all amounts received in
        respect of such REO Property during such calendar month, whether in the form
        of
        rental income, sale proceeds (including, without limitation, that portion
        of the
        proceeds paid in connection with a purchase of all of the Notes pursuant
        to
        Section 8.07 hereof that is allocable to such REO Property) or otherwise,
        net of
        any portion of such amounts (i) payable pursuant to Section 3.23(c) of the
        Servicing Agreement in respect of the proper operation, management and
        maintenance of such REO Property or (ii) payable or reimbursable to the Servicer
        pursuant to Section 3.23(d) of the Servicing Agreement for unpaid Servicing
        Fees
        in respect of the related Mortgage Loan and unreimbursed Servicing Advances
        and
        P&I Advances in respect of such REO Property or the related Mortgage Loan,
        over (b) the REO Imputed Interest in respect of such REO Property for such
        calendar month.

       

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

       

      “Reportable
        Event”: As defined in Section 4.02(b)(ii) of the Servicing
        Agreement.

       

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

       

      “Reserve
        Interest Rate”: With respect to any Interest Determination Date, the rate per
        annum that the Indenture Trustee determines to be either (i) the arithmetic
        mean
        (rounded upwards if necessary to the nearest whole multiple of 1/16%) of
        the
        one-month U.S. dollar lending rates which New York City banks selected by
        the
        Indenture Trustee, after consultation with the Servicer, are quoting on the
        relevant Interest Determination Date to the principal London offices of leading
        banks in the London interbank market or (ii) in the event that the Indenture
        Trustee can determine no such arithmetic mean, the lowest one-month U.S.
        dollar
        lending rate which New York City banks selected by the Indenture Trustee,
        after
        consultation with the Servicer, are quoting on such Interest Determination
        Date
        to leading European banks.

       

      “Residential
        Dwelling”: Any one of the following: (i) an attached, detached or semi-detached
        one-family dwelling, (ii) an attached, detached or semi-detached two-to
        four-family dwelling, (iii) a one-family dwelling unit in a Fannie Mae eligible
        condominium project, or (iv) an attached, detached or semi-detached one-family
        dwelling in a planned unit development, none of which is a co-operative or
        mobile home (as defined in 42 United States Code, Section 5402(6)).

       

      “Responsible
        Officer”: When used with respect to the Indenture Trustee or the Owner Trustee,
        any vice president, managing director, director, any assistant vice president,
        the Secretary, any assistant secretary, the Treasurer, any assistant treasurer,
        any associate, any trust officer or assistant trust officer or any other
        officer
        of the Trustee having direct responsibility over this Agreement or otherwise
        engaged in performing functions similar to those performed by any of the
        above
        designated officers and, with respect to a particular matter, to whom such
        matter is referred because of such officer’s knowledge of and familiarity with
        the particular subject.

       

      “Rolling
        Three Month Delinquency Rate”: As of any Payment Date, the sum of the
        Delinquency Rates for the previous three calendar months divided by 3 (or
        1 or
        2, in the case of the first or second Payment Date, respectively).

       

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

       

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

       

      “Seller”:
        New Century Credit Corporation, and its successors and assigns, in its capacity
        as seller under the Mortgage Loan Purchase Agreement.

       

      “Senior
        Interest Payment Amount”: With respect to any Payment Date and any Class of
        Class A Notes, an amount equal to the sum of (i) the Interest Payment Amount
        for
        such Payment Date for that Class and (ii) the Interest Carry Forward Amount,
        if
        any, for such Payment Date for that Class.

       

      “Senior
        Principal Payment Amount”: With respect to any Payment Date, the excess of (x)
        the aggregate Note Balance of the Class A Notes immediately prior to such
        Payment Date over (y) the lesser of (A) the product of (i) 88.20% and (ii)
        the
        aggregate Stated Principal Balance of the Mortgage Loans as of the last day
        of
        the related Due Period and (B) the aggregate Stated Principal Balance of
        the
        Mortgage Loans as of the last day of the related Due Period minus
        $2,609,047.87.

       

      “Servicer”:
        From and after the Servicing Transfer Date, Wells Fargo Bank, N.A., and if
        a
        successor servicer is appointed hereunder, such successor. Prior to the
        Servicing Transfer Date, “Servicer” shall mean New Century Mortgage Corporation
        with respect to all of the Mortgage Loans.

       

      “Servicer
        Event of Default”: One or more of the events described in Section 6.01 of the
        Servicing Agreement.

       

      “Servicer
        Remittance Date”: With respect to any Payment Date, two Business Days preceding
        the related Payment Date.

       

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

       

      “Servicing
        Advances”: The reasonable “out-of-pocket” costs and expenses incurred by the
        Servicer in connection with a default, delinquency or other unanticipated
        event
        by the Servicer in the performance of its servicing obligations, including,
        but
        not limited to, the cost of (i) the preservation, restoration and protection
        of
        a Mortgaged Property, (ii) any enforcement or judicial proceedings, including
        but not limited to foreclosures and bankruptcies, in respect of a particular
        Mortgage Loan, (iii) the management (including reasonable fees in connection
        therewith) and liquidation of any REO Property and (iv) the performance of
        its
        obligations under Section 3.01, Section 3.09, Section 3.14, Section 3.16
        and
        Section 3.23 of the Servicing Agreement. The Servicer shall not be required
        to
        make any Nonrecoverable Servicing Advances.

       

      “Servicing
        Agreement”: The Servicing Agreement dated as of June 22, 2006, among the
        Servicer, the Issuer and the Indenture Trustee.

       

      “Servicing
        Criteria”: As set forth in Exhibit E of the Servicing Agreement.

       

      “Servicing
        Fee”: With respect to each Mortgage Loan and for any calendar month, an amount
        equal to the Servicing Fee Rate accrued for one month (or in the event of
        any
        payment of interest which accompanies a Principal Prepayment in full or in
        part
        made by the Mortgagor during such calendar month, interest for the number
        of
        days covered by such payment of interest) on the same principal amount on
        which
        interest on such Mortgage Loan accrues for such calendar month, calculated
        on
        the basis of a 360-day year consisting of twelve 30-day months. A portion
        of
        such Servicing Fee may be retained by any Sub-Servicer as its servicing
        compensation.

       

      “Servicing
        Fee Rate”: 0.250% per annum.

       

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

       

      “Servicing
        Transfer Date”:
        July 1,
        2006.

       

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

       

      “Stated
        Principal Balance”: With respect to any Mortgage Loan: (a) as of any date of
        determination up to but not including the Payment Date on which the proceeds,
        if
        any, of a Liquidation Event with respect to such Mortgage Loan would be paid,
        the principal balance of such Mortgage Loan as of the Cut-off Date, as shown
        in
        the Mortgage Loan Schedule, minus the sum of (i) the principal portion of
        each
        Monthly Payment due on a Due Date subsequent to the Cut-off Date, to the
        extent
        received from the Mortgagor or advanced by the Servicer and paid pursuant
        to
        Section 3.05 hereof on or before such date of determination, (ii) all Principal
        Prepayments received after the Cut-off Date, to the extent paid pursuant
        to
        Section 3.05 hereof on or before such date of determination, (iii) all
        Liquidation Proceeds and Insurance Proceeds applied by the Servicer as
        recoveries of principal in accordance with the provisions of Section 3.16
        of the
        Servicing Agreement, to the extent paid pursuant to Section 3.05 hereof on
        or
        before such date of determination, and (iv) any Realized Loss incurred with
        respect thereto as a result of a Deficient Valuation made during or prior
        to the
        Prepayment Period for the most recent Payment Date coinciding with or preceding
        such date of determination; and (b) as of any date of determination coinciding
        with or subsequent to the Payment Date on which the proceeds, if any, of
        a
        Liquidation Event with respect to such Mortgage Loan would be paid, zero.
        With
        respect to any REO Property: (a) as of any date of determination up to but
        not
        including the Payment Date on which the proceeds, if any, of a Liquidation
        Event
        with respect to such REO Property would be paid, an amount (not less than
        zero)
        equal to the Stated Principal Balance of the related Mortgage Loan as of
        the
        date on which such REO Property was acquired on behalf of the Trust, minus
        the
        sum of (i) if such REO Property was acquired before the Payment Date in any
        calendar month, the principal portion of the Monthly Payment due on the Due
        Date
        in the calendar month of acquisition, to the extent advanced by the Servicer
        and
        paid pursuant to Section 3.05 hereof on or before such date of determination,
        and (ii) the aggregate amount of REO Principal Amortization in respect of
        such
        REO Property for all previously ended calendar months, to the extent paid
        pursuant to Section 3.05 hereof on or before such date of determination;
        and (b)
        as of any date of determination coinciding with or subsequent to the Payment
        Date on which the proceeds, if any, of a Liquidation Event with respect to
        such
        REO Property would be paid, zero.

       

      “Statutory
        Trust Statute”: Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code §§3801
        et seq., as the same may be amended from time to time.

       

      “Stepdown
        Date”: The earlier to occur of (i) the Payment Date on which the aggregate Note
        Balance of the Class A Notes has been reduced to zero and (ii) the later
        to
        occur of (a) the Payment Date occurring in June 2009 and (b) the first Payment
        Date on which the Credit Enhancement Percentage (calculated for this purpose
        only after taking into account payments of principal on the Mortgage Loans
        but
        prior to any payment of the Principal Payment Amount on the Notes then entitled
        to payments of principal on such Payment Date) is equal to or greater than
        11.80%.

       

      “Sub-Contractor”:
        Any
        vendor, subcontractor or other Person that is not responsible for the overall
        servicing of Mortgage Loans but performs one or more discrete functions
        identified in Item 1122(d) of Regulation AB with respect to Mortgage Loans
        under
        the direction or authority of any Servicer (or a Sub-Servicer of any Servicer)
        or the Indenture Trustee.

       

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

       

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

       

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

       

      “Subsequent
        Recoveries”: As of any Payment Date, unanticipated amounts received by the
        Servicer (net of any related expenses permitted to be reimbursed pursuant
        to
        Section 3.11 of the Servicing Agreement) specifically related to a Mortgage
        Loan
        that was the subject of a liquidation or an REO Disposition prior to the
        related
        Prepayment Period that resulted in a Realized Loss.

       

      “Substitution
        Shortfall Amount”: As defined in Section 2.04(b) of the Servicing
        Agreement.

       

      “Telerate
        Screen Page 3750”: The display designated as page “3750” on the Dow Jones
        Telerate Capital Markets Report (or such other page as may replace page 3750
        on
        that report for the purpose of displaying London interbank offered rates
        of
        major banks).

       

      “Trigger
        Event”: A Trigger Event is in effect with respect to any Payment Date on or
        after the Stepdown Date if:

       

      (a) the
        Rolling Three Month Delinquency Rate exceeds 45.00% of the Credit Enhancement
        Percentage for the prior Payment Date; or

       

      (b) the
        aggregate amount of Realized Losses incurred since the Cut-off Date through
        the
        last day of the related Due Period (reduced by the aggregate amount of
        Subsequent Recoveries received from the Cut-off Date through the last day
        of the
        related Due Period) divided by aggregate Stated Principal Balance of the
        Mortgage Loans as of the Cut-off Date exceeds the applicable percentages
        set
        forth below with respect to such Payment Date:

       

      
        	
                Payment
                  Date Occurring In

              	 	
                Percentage

              
	
                June
                  2008 through May 2009

              	 	
                0.200%
                  for the first month, plus an additional 1/12th
                  of
                  0.250% for each month thereafter

              
	
                June
                  2009 through May 2010

              	 	
                0.450%
                  for the first month, plus an additional 1/12th
                  of
                  0.300% for each month thereafter

              
	
                June
                  2010 through May 2011

              	 	
                0.750%
                  for the first month, plus an additional 1/12th
                  of
                  0.200% for each month thereafter

              
	
                June
                  2011 through May 2012

              	 	
                0.950%
                  for the first month, plus an additional 1/12th
                  of
                  0.250% for each month thereafter

              
	
                June
                  2012 and thereafter

              	 	
                1.200%

              

      

      

       

      “Trust”:
        The New Century Alternative Mortgage Loan Trust 2006-ALT1 to be created pursuant
        to the Trust Agreement.

       

      “Trust
        Agreement”: The Trust Agreement, dated June 19, 2006, between the Owner Trustee
        and the Depositor together with the Amended and Restated Trust Agreement
        dated
        as of June 22, 2006, among the Owner Trustee, the Depositor and Deutsche
        Bank
        National Trust Company, as Certificate Registrar and Certificate Paying Agent,
        relating to the Trust.

       

      “Trust
        Estate”: The meaning specified in the Granting Clause of the
        Indenture.

       

      “Trust
        Indenture Act” or “TIA”: The Trust Indenture Act of 1939, as amended from time
        to time, as in effect on any relevant date.

       

      “UCC”:
        The Uniform Commercial Code, as amended from time to time, as in effect in
        any
        specified jurisdiction.

       

      “Underwriter”:
        Goldman, Sachs & Co., or its successors.

       

      “Uninsured
        Cause”: Any cause of damage to a Mortgaged Property such that the complete
        restoration of such property is not fully reimbursable by the hazard insurance
        policies required to be maintained pursuant to Section 3.14 of the Servicing
        Agreement.

       

      “Value”:
        With respect to any Mortgaged Property, the lesser of (i) the lesser of (a)
        the
        value thereof as determined by an appraisal made for the Originator of the
        Mortgage Loan at the time of origination of the Mortgage Loan by an appraiser
        who met the minimum requirements of Fannie Mae and Freddie Mac and (b) the
        value
        thereof as determined by a review appraisal conducted by the Originator in
        accordance with the Originator’s underwriting guidelines, and (ii) the purchase
        price paid for the related Mortgaged Property by the Mortgagor with the proceeds
        of the Mortgage Loan; provided, however, (A) in the case of a Refinanced
        Mortgage Loan, such value of the Mortgaged Property is based solely upon
        the
        lesser of (1) the value determined by an appraisal made for the Originator
        of
        such Refinanced Mortgage Loan at the time of origination of such Refinanced
        Mortgage Loan by an appraiser who met the minimum requirements of Fannie
        Mae and
        Freddie Mac and (2) the value thereof as determined by a review appraisal
        conducted by the Originator in accordance with the Originator’s underwriting
        guidelines, and (B) in the case of a Mortgage Loan originated in connection
        with
        a “lease-option purchase,” such value of the Mortgaged Property is based on the
        lower of the value determined by an appraisal made for the Originator of
        such
        Mortgage Loan at the time of origination or the sale price of such Mortgaged
        Property if the “lease option purchase price” was set less than 12 months prior
        to origination, and is based on the value determined by an appraisal made
        for
        the Originator of such Mortgage Loan at the time of origination if the “lease
        option purchase price” was set 12 months or more prior to
        origination.Unassociated Document

    GSC
      CAPITAL CORP. MORTGAGE TRUST 2006-2

     

    Issuing
      Entity

     

    and

     

    THE
      BANK
      OF NEW YORK

     

    INDENTURE
      TRUSTEE

     

    
      	 	 	 

    

    

    INDENTURE

     

    DATED
      AS
      OF JUNE 23, 2006

    
       

      
        	 	 	 

      

      

    

     

    
      	 	 	 

    

    

    GSC
      ALTERNATIVE LOAN TRUST NOTES

     

    
      	 	 	 

    

     

    
       

      
        	 	 	 

      

      

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

    

    TABLE
      OF CONTENTS

    
       

    

     

    ARTICLE
      I

    DEFINITIONS

     

    Section
      1.01        
 Definitions

    Section
      1.02          Rules of
      Construction

     

    ARTICLE
      II

    ORIGINAL
      ISSUANCE OF NOTES

     

    Section
      2.01          Form

    Section
      2.02          Execution,
      Authentication and Delivery

     

    ARTICLE
      III

    COVENANTS

     

    Section
      3.01          Collection of
      Payments with respect to the Mortgage Loans

    Section
      3.02          Maintenance of Office
      or Agency

    Section
      3.03          Money for Payments To
      Be Held in Trust; Paying Agent

    Section
      3.04         
Existence

    Section
      3.05          Protection of Trust
      Estate

    Section
      3.06          Opinions as to Trust
      Estate

    Section
      3.07          Performance of
      Obligations

    Section
      3.08          Negative
      Covenants

    Section
      3.09          Annual Statement as
      to Compliance

    Section
      3.10          Representations and
      Warranties Concerning the Mortgage Loans

    Section
      3.11          Amendments to Sale
      and Servicing Agreement

    Section
      3.12          Master Servicer as
      Agent and Bailee of the Indenture Trustee

    Section
      3.13          Investment Company
      Act

    Section
      3.14          Issuing Entity May
      Consolidate, etc

    Section
      3.15          Successor or
      Transferee

    Section
      3.16          No Other
      Business

    Section
      3.17          No
      Borrowing

    Section
      3.18          Guarantees, Loans,
      Advances and Other Liabilities

    Section
      3.19          Capital
      Expenditures

    Section
      3.20          Determination of Note
      Rate

    Section
      3.21          Restricted
      Payments

    Section
      3.22          Notice of Events of
      Default

    Section
      3.23          Further Instruments
      and Acts

    Section
      3.24          Certain
      Representations Regarding the Trust Estate.

    Section
      3.25         
[reserved].

    Section
      3.26         
[reserved].

    Section
      3.27         
[reserved].

    Section
      3.28          Allocation of
      Realized Losses

    Section
      3.29          Allocation of
      Subsequent Recoveries

     

    ARTICLE
      IV

    THE
      NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

     

    Section
      4.01          The
      Notes

    Section
      4.02          Priorities of
      Distribution.

    Section
      4.03          Registration of and
      Limitations on Transfer and Exchange of Notes; Appointment of Note Registrar
      and
      Certificate Registrar

    Section
      4.04          Mutilated, Destroyed,
      Lost or Stolen Notes

    Section
      4.05          Persons Deemed
      Owners

    Section
      4.06         
Cancellation

    Section
      4.07          Book-Entry
      Notes

    Section
      4.08          Notices to
      Depository

    Section
      4.09          Definitive
      Notes

    Section
      4.10          Tax
      Treatment

    Section
      4.11          Satisfaction and
      Discharge of Indenture

    Section
      4.12          Application of Trust
      Money

    Section
      4.13          Repayment of Monies
      Held by Paying Agent

    Section
      4.14          Temporary
      Notes

    Section
      4.15          Representation
      Regarding ERISA

    Section
      4.16          Privately Offered
      Notes.

    Section
      4.17          Swap
      Contract.

     

    ARTICLE
      V

    DEFAULT
      AND REMEDIES

     

    Section
      5.01          Events of
      Default

    Section
      5.02          Acceleration of
      Maturity; Rescission and Annulment

    Section
      5.03          Collection of
      Indebtedness and Suits for Enforcement by Indenture Trustee.

    Section
      5.04          Remedies;
      Priorities

    Section
      5.05          Optional Preservation
      of the Trust Estate

    Section
      5.06          Limitation of
      Suits

    Section
      5.07          Unconditional Rights
      of Noteholders To Receive Principal and Interest

    Section
      5.08          Restoration of Rights
      and Remedies

    Section
      5.09          Rights and Remedies
      Cumulative

    Section
      5.10          Delay or Omission Not
      a Waiver

    Section
      5.11          Control By
      Noteholders

    Section
      5.12          Waiver of Past
      Defaults

    Section
      5.13          Undertaking for
      Costs

    Section
      5.14          Waiver of Stay or
      Extension Laws

    Section
      5.15          Sale of Trust
      Estate

    Section
      5.16          Action on
      Notes

    Section
      5.17          Performance and
      Enforcement of Certain Obligations

     

    ARTICLE
      VI

    THE
      INDENTURE TRUSTEE

     

    Section
      6.01          Duties of Indenture
      Trustee

    Section
      6.02          Rights of Indenture
      Trustee

    Section
      6.03          Individual Rights of
      Indenture Trustee

    Section
      6.04          Indenture Trustee’s
      Disclaimer

    Section
      6.05          Notice of Event of
      Default

    Section
      6.06          Reports by Indenture
      Trustee to Holders and Tax Administration

    Section
      6.07         
Compensation

    Section
      6.08          Replacement of
      Indenture Trustee

    Section
      6.09          Successor Indenture
      Trustee by Merger

    Section
      6.10          Appointment of
      Co-Indenture Trustee or Separate Indenture Trustee

    Section
      6.11          Representations and
      Warranties

    Section
      6.12          Directions to
      Indenture Trustee

    Section
      6.13          The
      Agents

    Section
      6.14          Eligibility;
      Disqualification

    Section
      6.15          Preferential
      Collection of Claims Against Issuing Entity

    Section
      6.16          Certain Matters
      Affecting the Indenture Trustee.

     

    ARTICLE
      VII

    NOTEHOLDERS’
      LISTS AND REPORTS

     

    Section
      7.01          Issuing Entity To
      Furnish Indenture Trustee Names and Addresses of Noteholders

    Section
      7.02          Preservation of
      Information; Communications to Noteholders

    Section
      7.03         
[Reserved].

    Section
      7.04         
[Reserved].

    Section
      7.05          Monthly Statements to
      Noteholders

     

    ARTICLE
      VIII

    ACCOUNTS,
      DISBURSEMENTS AND RELEASES

     

    Section
      8.01          Collection of
      Money

    Section
      8.02         
[Reserved].

    Section
      8.03          Officer’s
      Certificate

    Section
      8.04          Termination Upon
      Distribution to Noteholders

    Section
      8.05          Release of Trust
      Estate

    Section
      8.06          Surrender of Notes
      Upon Final Payment

    Section
      8.07          Optional Redemption
      of the Notes

    Section
      8.08          Swap
      Account.

    Section
      8.09          Termination Following
      TMP Trigger Event

     

    ARTICLE
      IX

    SUPPLEMENTAL
      INDENTURES

     

    Section
      9.01          Supplemental
      Indentures Without Consent of Noteholders

    Section
      9.02          Supplemental
      Indentures With Consent of Noteholders

    Section
      9.03          Execution of
      Supplemental Indentures

    Section
      9.04          Effect of
      Supplemental Indenture

    Section
      9.05          Reference in Notes to
      Supplemental Indentures

    Section
      9.06          Swap Counterparty
      Consent.

     

    ARTICLE
      X

    MISCELLANEOUS

     

    Section
      10.01        Compliance Certificates and
      Opinions, etc

    Section
      10.02        Form of Documents Delivered
      to Indenture Trustee

    Section
      10.03        Acts of
      Noteholders

    Section
      10.04        Notices etc., to Indenture
      Trustee Issuing Entity, Swap Counterparty and Rating Agencies

    Section
      10.05        Notices to Noteholders;
      Waiver

    Section
      10.06        Effect of
      Headings

    Section
      10.07        Successors and
      Assigns

    Section
      10.08        Separability

    Section
      10.09        [Reserved].

    Section
      10.10        Legal Holidays

    Section
      10.11        GOVERNING LAW

    Section
      10.12        Counterparts

    Section
      10.13        Recording of
      Indenture

    Section
      10.14        Issuing Entity
      Obligation

    Section
      10.15        No Petition

    Section
      10.16        Inspection

     

    ARTICLE
      XI

    TMP
      TRIGGER EVENT

     

    Section
      11.01        Discharge of Indenture and
      Transfer of Mortgage Loans

    Section
      11.02        Conditions Precedent to a
      REMIC Conversion. Prior to a REMIC Conversion following a TMP Trigger
      Event:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBITS

     

    

      
        	
                Exhibit
                  A-1

              	
                —

              	
                Form
                  of Class A Notes

              
	
                Exhibit
                  A-2

              	
                —

              	
                Form
                  of Class M Notes

              
	
                Exhibit
                  A-3

              	
                —

              	
                Form
                  of Class B Notes

              
	
                Exhibit
                  A-4

              	
                —

              	
                Form
                  of Class C Notes

              
	
                Exhibit
                  B

              	
                —

              	
                Form
                  of Transferor Certificate for Private Certificates

              
	
                Exhibit
                  C

              	
                —

              	
                Form
                  of Rule 144A Investment Letter

              
	
                Exhibit
                  D

              	
                —

              	
                Form
                  of Investment Letter

              
	
                Exhibit
                  E

              	
                —

              	
                Form
                  of Transferee Certificate

              
	
                Exhibit
                  F

              	
                —

              	
                Form
                  of Swap Contract

              
	
                Exhibit
                  G

              	
                —

              	
                Form
                  of Swap Contract Assignment Agreement

              
	
                Exhibit
                  H

              	
                —

              	
                Form
                  of Swap Contract Administration Agreement

              
	
                Exhibit
                  I

              	
                —

              	
                Form
                  of Swap Guarantee

              
	
                Appendix
                  A

              	
                —

              	
                Definitions

              

      

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    This
      Indenture, dated as of June 23, 2006, is entered into between GSC Capital Corp.
      Mortgage Trust 2006-2, a Delaware statutory trust, as Issuing Entity (the
“Issuing Entity”), and The Bank of New York, a New York banking corporation, as
      Indenture Trustee (the “Indenture Trustee”).

     

    WITNESSETH
      THAT:

     

    Each
      party hereto agrees as follows for the benefit of the other party and for the
      equal and ratable benefit of the Holders of the Issuing Entity’s GSC Alternative
      Loan Trust Notes, Series 2006-2 (the “Notes”).

     

    GRANTING
      CLAUSE

     

    The
      Issuing Entity hereby Grants to the Indenture Trustee at the Closing Date,
      as
      trustee for the benefit of the Holders of the Notes, all of the Issuing Entity’s
      right, title and interest in and to whether now existing or hereafter created
      by
      (a) the Mortgage Loans, Replacement Mortgage Loans, and the proceeds thereto
      and
      all rights under the Related Documents; (b) all funds on deposit from time
      to
      time in the Collection Account allocable to the Mortgage Loans excluding any
      investment income from such funds; (c) all funds on deposit from time to time
      in
      the Payment Account and in all proceeds thereof; (d) [reserved]; (e) any REO
      Property, (f) each Required Insurance Policy, and any amounts payable by the
      insurer under any Insurance Policy (to the extent the mortgagee has a claim
      thereto); (g) all rights under (i) the Sale and Servicing Agreement as assigned
      to the Issuing Entity, with respect to the Mortgage Loans, (ii) any subservicing
      agreements, (iii) any title, hazard and primary insurance policies with respect
      to the Mortgaged Properties; (h) the rights with respect to the Swap Contract;
      and (i) all present and future claims, demands, causes 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 and all payments on or under, and all proceeds of every kind and
      nature whatsoever in the conversion thereof, voluntary or involuntary, into
      cash
      or other liquid property, all cash proceeds, accounts, accounts receivable,
      notes, drafts, acceptances, checks, deposit accounts, 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 (collectively, the “Trust Estate” or the
“Collateral”).

     

    The
      foregoing Grant is made in trust to secure the payment of principal of and
      interest on, and any other amounts owing in respect of, the Notes, equally
      and
      ratably without prejudice, priority or distinction, and to secure compliance
      with the provisions of this Indenture, all as provided in this
      Indenture.

     

    The
      Indenture Trustee, as trustee on behalf of the Holders of the Notes,
      acknowledges such Grant, accepts the trust under this Indenture in accordance
      with the provisions hereof and agrees to perform its duties as Indenture Trustee
      as required herein.

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01  Definitions.
      For all
      purposes of this Indenture, except as otherwise expressly provided herein or
      unless the context otherwise requires, capitalized terms not otherwise defined
      herein shall have the meanings assigned to such terms in the Definitions
      attached hereto as Appendix A which is incorporated by reference herein. All
      other capitalized terms used herein shall have the meanings specified
      herein.

     

    Section
      1.02  Rules
      of Construction.
      Unless
      the context otherwise requires:

     

    (i)  a
      term
      has the meaning assigned to it;

     

    (ii)  an
      accounting term not otherwise defined has the meaning assigned to it in
      accordance with generally accepted accounting principles as in effect from
      time
      to time;

     

    (iii)  “or”
is
      not exclusive;

     

    (iv)  “including”
      means including without limitation;

     

    (v)  words
      in
      the singular include the plural and words in the plural include the singular;
      and

     

    (vi)  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

     

    ORIGINAL
      ISSUANCE OF NOTES

     

    Section
      2.01  Form.
      The
      Class A, Class M, Class B and Class C, together with the Indenture Trustee’s
      certificate of authentication, shall be in substantially the form set forth
      in
      Exhibit A-1, A-2, A-3 and A-4, as applicable, to this Indenture, respectively,
      with such appropriate insertions, omissions, substitutions and other variations
      as are required or permitted by this Indenture.

     

    The
      Notes
      shall be typewritten, printed, lithographed or engraved or produced by any
      combination of these methods (with or without steel engraved
      borders).

     

    The
      terms
      of the Notes set forth in Exhibit A-1, A-2, A-3 and A-4 to this Indenture are
      part of the terms of this Indenture.

     

    Section
      2.02  Execution,
      Authentication and Delivery.
      The
      Notes shall be executed on behalf of the Issuing Entity by any of its Authorized
      Officers. The signature of any such Authorized Officer on the Notes may be
      manual or facsimile.

     

    Notes
      bearing the manual or facsimile signature of individuals who were at any time
      Authorized Officers of the Issuing Entity shall bind the Issuing Entity,
      notwithstanding that such individuals or any of them have ceased to hold such
      offices prior to the authentication and delivery of such Notes or did not hold
      such offices at the date of such Notes.

     

    The
      Indenture Trustee shall upon Issuing Entity Request authenticate and deliver
      the
      Bonds for original issue in an aggregate initial Note
      Principal Balance of
      $[_____________.___]. Each Class of Bonds shall be issued in the following
      aggregate initial Note Principal Balances:

     

    
      	
              Class

            	 	
              Aggregate
                Initial Note Principal Balance

            	 
	
              A-1

            	 	
              $

            	
              [475,551,000.00

            	
              ]

            
	
              A-2

            	 	
              $

            	
              [52,838,900.00

            	
              ]

            
	
              M-1

            	 	
              $

            	
              [8,518,000.00

            	
              ]

            
	
              M-2

            	 	
              $

            	
              [6,814,000.00

            	
              ]

            
	
              M-3

            	 	
              $

            	
              [4,259,000.00

            	
              ]

            
	
              M-4

            	 	
              $

            	
              [2,839,000.00

            	
              ]

            
	
              M-5

            	 	
              $

            	
              [2,839,000.00

            	
              ]

            
	
              M-6

            	 	
              $

            	
              [2,839,000.00

            	
              ]

            
	
              M-7

            	 	
              $

            	
              [2,839,000.00

            	
              ]

            
	
              M-8

            	 	
              $

            	
              [2,839,000.00

            	
              ]

            
	
              B-1

            	 	
              $

            	
              [2,839,000.00

            	
              ]

            
	
              C

            	 	
              $

            	
              [1,952,287.__

            	
              ]

            

    

    

    Each
      of
      the Notes shall be dated the date of its authentication. The Notes shall be
      issuable as registered Notes and the Notes shall be issuable in the minimum
      initial Note Principal Balances of $25,000 and in integral multiples of $1
      in
      excess thereof.

     

    No
      Note
      shall be entitled to any benefit under this Indenture or be valid or obligatory
      for any purpose, unless there appears on such Note or a facsimile thereof,
      a
      certificate of authentication substantially in the form provided for herein
      executed by the Indenture Trustee by the manual signature of one of its
      authorized signatories, and such certificate upon any Note shall be conclusive
      evidence, and the only evidence, that such Note has been duly authenticated
      and
      delivered hereunder.

     

    ARTICLE
      III

     

    COVENANTS

     

    Section
      3.01  Collection
      of Payments with respect to the Mortgage Loans.
      The
      Indenture Trustee shall maintain the Payment Account established pursuant to
      Section 3.05 of the Sale and Servicing Agreement in accordance with the
      requirements of such Section. The Indenture Trustee shall make all payments
      of
      principal of and interest on the Notes, subject to Section 3.03 herein, as
      provided in Section 3.05 of the Sale and Servicing Agreement from monies on
      deposit in the Payment Account.

     

    Section
      3.02  Maintenance
      of Office or Agency.
      The
      Indenture Trustee will maintain or cause to be maintained at its expense an
      office or offices or agency or agencies in New York City where Notes may be
      surrendered for registration of transfer or exchange. The Indenture Trustee
      initially designates its offices at 101 Barclay Street, New York, New York
      10286, Attention: Corporate Trust MBS Administration, as offices for such
      purposes. The Indenture Trustee will give prompt written notice to the
      Noteholders of any change in such location of any such office or
      agency.

     

    Section
      3.03  Money
      for Payments To Be Held in Trust; Paying Agent.
      As
      provided in Section 3.01, all payments of amounts due and payable with respect
      to any Notes that are to be made from amounts withdrawn from the Payment Account
      pursuant to Section 3.01 shall be made on behalf of the Issuing Entity by the
      Indenture Trustee or by the Paying Agent, and no amounts so withdrawn from
      the
      Payment Account for payments of Notes shall be paid over to the Issuing Entity
      except as provided in this Section 3.03. The Issuing Entity hereby appoints
      the
      Indenture Trustee as its Paying Agent.

     

    The
      Issuing Entity will cause each Paying Agent other than the Indenture Trustee
      to
      execute and deliver to the Indenture Trustee an instrument in which such Paying
      Agent shall agree with the Indenture Trustee (and if the Indenture Trustee
      acts
      as Paying Agent it hereby so agrees), subject to the provisions of this Section
      3.03, that such Paying Agent will:

     

    (i)  hold
      all
      sums held by it for the payment of amounts due with respect to the Notes 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 and pay such
      sums to such Persons as herein provided;

     

    (ii)  give
      the
      Indenture Trustee notice of any default by the Issuing Entity of which it has
      actual knowledge in the making of any payment required to be made with respect
      to the Notes;

     

    (iii)  at
      any
      time during the continuance of any such default, upon the written request of
      the
      Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held
      in
      trust by such Paying Agent;

     

    (iv)  immediately
      resign as Paying Agent and forthwith pay to the Indenture Trustee all sums
      held
      by it in trust for the payment of Notes if at any time it ceases to meet the
      standards required to be met by a 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 any Notes of any applicable withholding taxes imposed
      thereon and with respect to any applicable reporting requirements in connection
      therewith; and

     

    (vi)  not
      commence a bankruptcy proceeding against the Issuing Entity in connection with
      this Indenture.

     

    The
      Issuing Entity may at any time, for the purpose of obtaining the satisfaction
      and discharge of this Indenture or for any other purpose, by Issuing Entity
      Request direct any Paying Agent to pay to the Indenture Trustee all sums held
      in
      trust by such Paying Agent, such sums to be held by the Indenture Trustee upon
      the same trusts as those upon which the sums were held by such Paying Agent;
      and
      upon such payment by any Paying Agent to the Indenture Trustee, such Paying
      Agent shall be released from all further liability with respect to such
      money.

     

    Subject
      to applicable laws with respect to escheat of funds, any money held by the
      Indenture Trustee or any Paying Agent in trust for the payment of any amount
      due
      with respect to any Note and remaining unclaimed for one year after such amount
      has become due and payable shall be discharged from such trust and be paid
      to
      the Issuing Entity on Issuing Entity Request; and the Holder of such Note shall
      thereafter, as an unsecured general creditor, look only to the Issuing Entity
      for payment thereof (but only to the extent of the amounts so paid to the
      Issuing Entity), and all liability of the Indenture Trustee or such Paying
      Agent
      with respect to such trust money shall thereupon cease; provided,
      however,
      that the
      Indenture Trustee or such Paying Agent, before being required to make any such
      repayment, shall at the expense and direction of the Issuing Entity cause to
      be
      published once, in an Authorized Newspaper published in the English language,
      notice that such money remains unclaimed and that, after a date specified
      therein which shall not be less than 30 days from the date of such publication,
      any unclaimed balance of such money then remaining will be repaid to the Issuing
      Entity. The Indenture Trustee may also adopt and employ, at the expense and
      direction of the Issuing Entity, any other reasonable means of notification of
      such repayment (including, but not limited to, mailing notice of such repayment
      to Holders whose Notes have been called but have not been surrendered for
      redemption or whose right to or interest in monies due and payable but not
      claimed is determinable from the records of the Indenture Trustee or of any
      Paying Agent, at the last address of record for each such Holder).

     

    Section
      3.04  Existence.
      The
      Issuing Entity will keep in full effect its existence, rights and franchises
      as
      a statutory trust under the laws of the State of Delaware (unless it becomes,
      or
      any successor Issuing Entity hereunder is or becomes, organized under the laws
      of any other state or of the United States of America, in which case the Issuing
      Entity will keep in full effect its existence, rights and franchises under
      the
      laws of such other jurisdiction) and will obtain and preserve its qualification
      to do business in each jurisdiction in which such qualification is or shall
      be
      necessary to protect the validity and enforceability of this Indenture, the
      Notes, the Mortgage Loans and each other instrument or agreement included in
      the
      Trust Estate.

     

    Section
      3.05  Protection
      of Trust Estate.
      (a)
      The
      Issuing Entity will from time to time prepare, execute and deliver all such
      supplements and amendments hereto and all such financing statements,
      continuation statements, instruments of further assurance and other instruments,
      and will take such other action necessary or advisable to:

     

    (i)  maintain
      or preserve the lien and security interest (and the priority thereof) of this
      Indenture or carry out more effectively the purposes hereof;

     

    (ii)  perfect,
      publish notice of or protect the validity of any Grant made or to be made by
      this Indenture;

     

    (iii)  cause
      the
      Indenture Trustee or Master Servicer to enforce any of the rights to the
      Mortgage Loans; or

     

    (iv)  preserve
      and defend title to the Trust Estate and the rights of the Indenture Trustee
      and
      the Noteholders in such Trust Estate against the claims of all persons and
      parties.

     

    (b)  Except
      as
      otherwise provided in this Indenture, the Indenture Trustee shall not remove
      any
      portion of the Trust Estate that consists of money or is evidenced by an
      instrument, certificate or other writing from the jurisdiction in which it
      was
      held at the date of the most recent Opinion of Counsel delivered pursuant to
      Section 3.06 hereof (or from the jurisdiction in which it was held as described
      in the Opinion of Counsel delivered on the Closing Date pursuant to Section
      3.06(a) hereof, or if no Opinion of Counsel has yet been delivered pursuant
      to
      Section 3.06(b) hereof, unless the Indenture Trustee shall have first received
      an Opinion of Counsel to the effect that the lien and security interest created
      by this Indenture with respect to such property will continue to be maintained
      after giving effect to such action or actions).

     

    The
      Issuing Entity hereby designates the Indenture Trustee its agent and
      attorney-in-fact to sign any financing statement, continuation statement or
      other instrument required to be signed pursuant to this Section 3.05 upon the
      Issuing Entity’s preparation thereof and delivery to the Indenture
      Trustee.

     

    Section
      3.06  Opinions
      as to Trust Estate.
      (a)
      On the
      Closing Date, the Issuing Entity shall furnish to the Indenture Trustee and
      the
      Owner Trustee an Opinion of Counsel either stating that, in the opinion of
      such
      counsel, such action has been taken with respect to the recording and filing
      of
      this Indenture, any indentures supplemental hereto, and any other requisite
      documents, and with respect to the execution and filing of any financing
      statements and continuation statements, as are necessary to perfect and make
      effective the lien and first priority security interest in the Collateral and
      reciting the details of such action, or stating that, in the opinion of such
      counsel, no such action is necessary to make such lien and first priority
      security interest effective.

     

    (b)  On
      or
      before April 15 in each calendar year, beginning in 2007, the Issuing Entity
      shall furnish to the Indenture Trustee an Opinion of Counsel at the expense
      of
      the Issuing Entity either stating that, in the opinion of such counsel, such
      action has been taken with respect to the recording, filing, re-recording and
      refiling of this Indenture, any indentures supplemental hereto and any other
      requisite documents and with respect to the execution and filing of any
      financing statements and continuation statements as is necessary to maintain
      the
      lien and first priority security interest in the Collateral and reciting the
      details of such action or stating that in the opinion of such counsel no such
      action is necessary to maintain such lien and security interest. Such Opinion
      of
      Counsel shall also describe the recording, filing, re-recording and refiling
      of
      this Indenture, any indentures supplemental hereto and any other requisite
      documents and the execution and filing of any financing statements and
      continuation statements that will, in the opinion of such counsel, be required
      to maintain the lien and security interest in the Collateral until December
      31
      in the following calendar year.

     

    Section
      3.07  Performance
      of Obligations.
      (a)
      The
      Issuing Entity will punctually perform and observe all of its obligations and
      agreements contained in this Indenture, the Basic Documents and in the
      instruments and agreements included in the Trust Estate.

     

    (b)  The
      Issuing Entity may contract with other Persons to assist it in performing its
      duties under this Indenture, and any performance of such duties by a Person
      identified to the Indenture Trustee in an Officer’s Certificate of the Issuing
      Entity shall be deemed to be action taken by the Issuing Entity.

     

    (c)  The
      Issuing Entity will not take any action or permit any action to be taken by
      others which would release any Person from any of such Person’s covenants or
      obligations under any of the documents relating to the Mortgage Loans, or under
      any instrument included in the Trust Estate, or which would result in the
      amendment, hypothecation, subordination, termination or discharge of, or impair
      the validity or effectiveness of, any of the documents relating to the Mortgage
      Loans or any such instrument, except such actions as the Master Servicer is
      expressly permitted to take in the Sale and Servicing Agreement. The Indenture
      Trustee, as pledgee of the Mortgage Loans, may exercise the rights of the
      Issuing Entity to direct the actions of the Master Servicer pursuant to the
      Sale
      and Servicing Agreement.

     

    (d)  The
      Issuing Entity may retain an administrator and may enter into contracts with
      other Persons for the performance of the Issuing Entity’s obligations hereunder,
      and performance of such obligations by such Persons shall be deemed to be
      performance of such obligations by the Issuing Entity.

     

    Section
      3.08  Negative
      Covenants.
      So long
      as any Notes are Outstanding, the Issuing Entity shall not:

     

    (i)  except
      as
      expressly permitted by this Indenture, sell, transfer, exchange or otherwise
      dispose of the Trust Estate, unless directed to do so by the Indenture
      Trustee;

     

    (ii)  claim
      any
      credit on, or make any deduction from the principal or interest payable in
      respect of, the Notes (other than amounts properly withheld from such payments
      under the Code) or assert any claim against any present or former Noteholder
      by
      reason of the payment of the taxes levied or assessed upon any part of the
      Trust
      Estate;

     

    (iii)  
      (A)
      permit the validity or effectiveness of this Indenture to be impaired, or permit
      the lien of this Indenture to be amended, hypothecated, subordinated, terminated
      or discharged, or permit any Person to be released from any covenants or
      obligations with respect to the Notes under this Indenture except as may be
      expressly permitted hereby, (B) permit any lien, charge, excise, claim, security
      interest, mortgage or other encumbrance (other than the lien of this Indenture)
      to be created on or extend to or otherwise arise upon or burden the Trust Estate
      or any part thereof or any interest therein or the proceeds thereof or (C)
      permit the lien of this Indenture not to constitute a valid first priority
      security interest in the Trust Estate; or

     

    (iv)  waive
      or
      impair, or fail to assert rights under, the Mortgage Loans or impair or cause
      to
      be impaired the Issuing Entity’s interest in the Mortgage Loans, the Sale and
      Servicing Agreement or in any Basic Document, if any such action would
      materially and adversely affect the interests of the Noteholders.

     

    Section
      3.09  Annual
      Statement as to Compliance.
      The
      Issuing Entity will deliver to the Indenture Trustee, by March 1 of each year
      commencing with the calendar year 2007, an Officer’s Certificate stating, as to
      the Authorized Officer signing such Officer’s Certificate, that:

     

    (i)  a
      review
      of the activities of the Issuing Entity during the previous calendar year and
      of
      its performance under this Indenture has been made under such Authorized
      Officer’s supervision; and

     

    (ii)  to
      the
      best of such Authorized Officer’s knowledge, based on such review, the Issuing
      Entity has complied with all conditions and covenants under this Indenture
      throughout such year, or, if there has been a default in its compliance with
      any
      such condition or covenant, specifying each such default known to such
      Authorized Officer and the nature and status thereof.

     

    Section
      3.10  Representations
      and Warranties Concerning the Mortgage Loans.
      The
      Indenture Trustee, as pledgee of the Mortgage Loans, has the benefit of the
      representations and warranties made by the Seller and CHL in the Sale and
      Servicing Agreement concerning the
      Seller or CHL, as applicable,
      to the
      same extent as though such representations and warranties were made directly
      to
      the Indenture Trustee. If a Responsible Officer of the Indenture Trustee has
      actual knowledge of any breach of any representation or warranty made by the
      Seller or CHL, as applicable, in the Sale and Servicing Agreement, the Indenture
      Trustee shall promptly notify the Seller or CHL, as applicable, of such finding
      and such party’s obligation to cure such defect or repurchase or substitute for
      the related Mortgage Loan.

     

    Section
      3.11  Amendments
      to Sale and Servicing Agreement.
      The
      Issuing Entity covenants with the Indenture Trustee that it will not enter
      into
      any amendment or supplement to the Sale and Servicing Agreement without the
      prior written consent of the Indenture Trustee. Subsequent to a TMP Trigger
      Event, the Indenture Trustee shall not enter into any such amendment or
      supplement without receiving an opinion of counsel to the effect that such
      amendment or supplement will not cause the imposition of any tax on the Trust
      or
      the Noteholders.

     

    Section
      3.12  Master
      Servicer as Agent and Bailee of the Indenture Trustee.
      Solely
      for purposes of perfection under Section 9-305 of the Uniform Commercial Code
      or
      other similar applicable law, rule or regulation of the state in which such
      property is held by the Master Servicer, the Issuing Entity and the Indenture
      Trustee hereby acknowledge that the Master Servicer is acting as bailee of
      the
      Indenture Trustee in holding amounts on deposit in the Collection Account,
      as
      well as its bailee in holding any related document in the Mortgage File released
      to the Master Servicer, and any other items constituting a part of the Trust
      Estate which from time to time come into the possession of the Master Servicer.
      It is intended that, by the Master Servicer’s acceptance of such bailee
      arrangement, the Indenture Trustee, as a secured party of the Mortgage Loans,
      will be deemed to have possession of such document, such monies and such other
      items for purposes of Section 9-305 of the Uniform Commercial Code of the state
      in which such property is held by the Master Servicer. The Indenture Trustee
      shall not be liable with respect to such documents, monies or items while in
      possession of the Master Servicer.

     

    Section
      3.13  Investment
      Company Act.
      The
      Issuing Entity shall not become an “investment company” or be under the
“control” of an “investment company” as such terms are defined in the Investment
      Company Act of 1940, as amended (or any successor or amendatory statute), and
      the rules and regulations thereunder (taking into account not only the general
      definition of the term “investment company” but also any available exceptions to
      such general definition); provided,
      however,
      that the
      Issuing Entity shall be in compliance with this Section 3.13 if it shall have
      obtained an order exempting it from regulation as an “investment company” so
      long as it is in compliance with the conditions imposed in such
      order.

     

    Section
      3.14  Issuing
      Entity
      May
      Consolidate, etc.
      (a)
      The
      Issuing Entity shall not consolidate or merge with or into any other Person,
      unless:

     

    (i)  the
      Person (if other than the Issuing Entity) formed by or surviving such
      consolidation or merger shall be a Person organized and existing under the
      laws
      of the United States of America or any state or the District of Columbia and
      shall expressly assume, by an indenture supplemental hereto, executed and
      delivered to the Indenture Trustee, in form reasonably satisfactory to the
      Indenture Trustee, the due and punctual payment of the principal of and interest
      on all Notes, and all other amounts payable to the Indenture Trustee, the
      payment to the Paying Agent of all amounts due to the Noteholders, and the
      performance or observance of every agreement and covenant of this Indenture
      on
      the part of the Issuing Entity to be performed or observed, all as provided
      herein;

     

    (ii)  immediately
      after giving effect to such transaction, no Event of Default shall have occurred
      and be continuing;

     

    (iii)  the
      Rating Agencies shall have notified the Issuing Entity that such transaction
      shall not cause the rating of the Offered Notes to be reduced, suspended or
      withdrawn or to be considered by either Rating Agency to be below investment
      grade;

     

    (iv)  the
      Issuing Entity shall have received an Opinion of Counsel (and shall have
      delivered a copy thereof to the Indenture Trustee) to the effect that such
      transaction will not (A) result in a “significant modification” of the Notes
      under Treasury Regulation section 1.1001-3, or adversely affect the status
      of
      the Offered Notes as indebtedness for federal income tax purposes and cause
      the
      Trust to be subject to an entity level tax for federal income tax purposes.
      Notwithstanding
      the foregoing, a TMP Trigger Event and subsequent REMIC Conversion will result
      in a “significant modification” of the Notes.

     

    (v)  any
      action that is necessary to maintain the lien and security interest created
      by
      this Indenture shall have been taken; and

     

    (vi)  the
      Issuing Entity shall have delivered to the Indenture Trustee an Officer’s
      Certificate and an Opinion of Counsel each stating that such consolidation
      or
      merger and such supplemental indenture comply with this Article III and that
      all
      conditions precedent herein provided for or relating to such transaction have
      been complied with (including any filing required by the Exchange Act), and
      that
      such supplemental indenture is enforceable.

     

    (b)  The
      Issuing Entity shall not convey or transfer any of its properties or assets,
      including those included in the Trust Estate, to any Person,
      unless:

     

    (i)  the
      Person that acquires by conveyance or transfer the properties and assets of
      the
      Issuing Entity, the conveyance or transfer of which is hereby restricted, shall
      (A) be a United States citizen or a Person organized and existing under the
      laws
      of the United States of America or any state thereof, (B) expressly assume,
      by
      an indenture supplemental hereto, executed and delivered to the Indenture
      Trustee, in form satisfactory to the Indenture Trustee, the due and punctual
      payment of the principal of and interest on all Offered Notes and the
      performance or observance of every agreement and covenant of this Indenture
      on
      the part of the Issuing Entity to be performed or observed, all as provided
      herein, (C) expressly agree by means of such supplemental indenture that all
      right, title and interest so conveyed or transferred shall be subject and
      subordinate to the rights of the Holders of the Offered Notes, (D) unless
      otherwise provided in such supplemental indenture, expressly agree to indemnify,
      defend and hold harmless the Issuing Entity, the Indenture Trustee against
      and
      from any loss, liability or expense arising under or related to this Indenture
      and the Notes and (E) expressly agree by means of such supplemental indenture
      that such Person (or if a group of Persons, then one specified Person) shall
      make all filings with the Commission (and any other appropriate Person) required
      by the Exchange Act in connection with the Offered Notes;

     

    (ii)  immediately
      after giving effect to such transaction, no Default or Event of Default shall
      have occurred and be continuing;

     

    (iii)  the
      Rating Agencies shall have notified the Issuing Entity that such transaction
      shall not cause the rating of the Offered Notes to be reduced, suspended or
      withdrawn;

     

    (iv)  the
      Issuing Entity shall have received an Opinion of Counsel (and shall have
      delivered a copy thereof to the Indenture Trustee) to the effect that such
      transaction will not (A) result in a “significant modification” of the Notes
      under Treasury Regulation section 1.1001-3, or adversely affect the status
      of
      the Offered Notes as indebtedness for federal income tax purposes and cause
      the
      Trust to be subject to an entity level tax for federal income tax purposes.
      Notwithstanding the foregoing, a TMP Trigger Event and subsequent REMIC
      Conversion will result in a “significant modification” of the
      Notes.

     

    (v)  any
      action that is necessary to maintain the lien and security interest created
      by
      this Indenture shall have been taken; and

     

    (vi)  the
      Issuing Entity shall have delivered to the Indenture Trustee an Officer’s
      Certificate and an Opinion of Counsel each stating that such conveyance or
      transfer and such supplemental indenture comply with this Article III and that
      all conditions precedent herein provided for relating to such transaction have
      been complied with (including any filing required by the Exchange
      Act).

     

    Section
      3.15  Successor
      or Transferee.
      (a)
      Upon any
      consolidation or merger of the Issuing Entity in accordance with Section
      3.14(a), the Person formed by or surviving such consolidation or merger (if
      other than the Issuing Entity) shall succeed to, and be substituted for, and
      may
      exercise every right and power of, the Issuing Entity under this Indenture
      with
      the same effect as if such Person had been named as the Issuing Entity
      herein.

     

    (b)  Upon
      a
      conveyance or transfer of all the assets and properties of the Issuing Entity
      pursuant to Section 3.14(b), the Issuing Entity will be released from every
      covenant and agreement of this Indenture to be observed or performed on the
      part
      of the Issuing Entity with respect to the Notes immediately upon the delivery
      of
      written notice to the Indenture Trustee of such conveyance or
      transfer.

     

    Section
      3.16  No
      Other Business.
      The
      Issuing Entity shall not engage in any business other than financing,
      purchasing, owning and selling and managing the Mortgage Loans and the issuance
      of the Notes and Certificates in the manner contemplated by this Indenture
      and
      the Basic Documents and all activities incidental thereto.

     

    Section
      3.17  No
      Borrowing.
      The
      Issuing Entity shall not issue, incur, assume, guarantee or otherwise become
      liable, directly or indirectly, for any indebtedness except for the Notes under
      this Indenture.

     

    Section
      3.18  Guarantees,
      Loans, Advances and Other Liabilities.
      Except
      as contemplated by this Indenture or the Basic Documents, the Issuing Entity
      shall not make any loan or advance or credit to, or guarantee (directly or
      indirectly or by an instrument having the effect of assuring another’s payment
      or performance on any obligation or capability of so doing or otherwise),
      endorse or otherwise become contingently liable, directly or indirectly, in
      connection with the obligations, stocks or dividends of, or own, purchase,
      repurchase or acquire (or agree contingently to do so) any stock, obligations,
      assets or securities of, or any other interest in, or make any capital
      contribution to, any other Person.

     

    Section
      3.19  Capital
      Expenditures.
      The
      Issuing Entity shall not make any expenditure (by long-term or operating lease
      or otherwise) for capital assets (either realty or personalty).

     

    Section
      3.20  Determination
      of Note Rate.
      On each
      Interest Determination Date, the Indenture Trustee shall determine One-Month
      LIBOR and the related Note Rate for each Class of Notes (other than the Class
      C
      Notes), for the following Accrual Period and shall inform the Issuing Entity,
      the Master Servicer, and the Depositor at their respective facsimile numbers
      given to the Indenture Trustee in writing thereof. The establishment of
      One-Month LIBOR on each such Interest Determination Date by the Indenture
      Trustee and the Indenture Trustee’s calculation of the rate of interest
      applicable to each Class of Notes (other than the Class C Notes) for the related
      Accrual Period shall (in the absence of manifest error) be final and
      binding.

     

    Section
      3.21  Restricted
      Payments.
      The
      Issuing Entity shall not, directly or indirectly, (i) pay any dividend or make
      any payment (by reduction of capital or otherwise), whether in cash, property,
      securities or a combination thereof, to the Owner Trustee or any owner of a
      beneficial interest in the Issuing Entity or otherwise with respect to any
      ownership or equity interest or security in or of the Issuing Entity, (ii)
      redeem, purchase, retire or otherwise acquire for value any such ownership
      or
      equity interest or security or (iii) set aside or otherwise segregate any
      amounts for any such purpose; provided,
      however,
      that the
      Issuing Entity may make, or cause to be made, (x) payments and payments to
      the
      Owner Trustee, the Indenture Trustee, Noteholders and the Certificateholders
      as
      contemplated by, and to the extent funds are available for such purpose under
      this Indenture and the Trust Agreement and (y) payments to the Master Servicer,
      and the Subservicers pursuant to the terms of the Servicing Agreement. The
      Issuing Entity will not, directly or indirectly, make payments to or payments
      from the Collection Account except in accordance with this Indenture and the
      Basic Documents.

     

    Section
      3.22  Notice
      of Events of Default.
      The
      Issuing Entity shall give the Indenture Trustee and the Rating Agencies prompt
      written notice of each Event of Default hereunder and under the Trust
      Agreement.

     

    Section
      3.23  Further
      Instruments and Acts.
      Upon
      request of the Indenture Trustee, the Issuing Entity will execute and deliver
      such further instruments and do such further acts as may be reasonably necessary
      or proper to carry out more effectively the purpose of this
      Indenture.

     

    Section
      3.24  Certain
      Representations Regarding the Trust Estate.

     

    (a)  With
      respect to that portion of the Collateral described in clauses (a) through
      (i)
      of the definition of Trust Estate, the Issuing Entity represents to the
      Indenture Trustee that:

     

    (i)  This
      Indenture creates a valid and continuing security interest (as defined in the
      applicable UCC) in the Collateral in favor of the Indenture Trustee, which
      security interest is prior to all other liens, and is enforceable as such as
      against creditors of and purchasers from the Issuing Entity.

     

    (ii)  In
      each
      case, within the meaning of the applicable UCC: (A) the Collateral described
      in
      clauses (a) through (c) constitutes “deposit accounts” or “instruments,” as
      applicable; (B) the Collateral described in clause (e) constitutes “real
      property;”(C) the Collateral described in clause (f) constitutes “insurance;”
and (D) the Collateral described in clauses (g), (h) and (i) constitute “general
      intangibles.”

     

    (iii)  The
      Issuing Entity owns and has good and marketable title to the Collateral, free
      and clear of any lien, claim or encumbrance of any Person.

     

    (iv)  The
      Issuing Entity has taken all steps necessary to cause the Indenture Trustee
      to
      become the account holder of the Collateral.

     

    (v)  Other
      than the security interest granted to the Indenture Trustee pursuant to this
      Indenture, or the conveyances that the Issuing Entity would be required to
      make
      at the time of a REMIC Conversion following the satisfaction and discharge
      of
      this Indenture following a TMP Trigger Event, the Issuing Entity has not
      pledged, assigned, sold, granted a security interest in, or otherwise conveyed
      any of the Collateral.

     

    (vi)  The
      Collateral is not in the name of any Person other than the Issuing Entity or
      the
      Indenture Trustee. The Issuing Entity has not consented to the bank maintaining
      the Collateral to comply with instructions of any Person other than the
      Indenture Trustee.

     

    (b)  With
      respect to any Collateral in which a security interest may be perfected by
      filing, the Issuing Entity has not authorized the filing of, and is not aware
      of
      any financing statements against, the Issuing Entity, that include a description
      of collateral covering such Collateral, other than any financing statement
      relating to the security interest granted to the Indenture Trustee hereunder
      or
      that has been terminated. The Issuing Entity is not aware of any judgment or
      tax
      lien filings against the Issuing Entity.

     

    (c)  The
      Issuing Entity has caused or will have caused, within ten days of the Closing
      Date, the filing of all appropriate financing statements in the proper filing
      office in the appropriate jurisdictions under applicable law in order to perfect
      the security interest in all Collateral granted to the Indenture Trustee
      hereunder in which a security interest may be perfected by filing. Any financing
      statement that is filed in connection with this Section 3.24 shall contain
      a
      statement that a purchase or security interest in any collateral described
      therein will violate the rights of the secured party named in such financing
      statement.

     

    (d)  The
      foregoing representations may not be waived and shall survive the issuance
      of
      the Notes.

     

    Section
      3.25  [reserved].

     

    Section
      3.26  [reserved].

     

    Section
      3.27  [reserved].

     

    Section
      3.28  Allocation
      of Realized Losses.
      On each
      Payment Date, the Indenture Trustee shall allocate any Applied Realized Loss
      Amount to reduce the Note Principal Balances of the Class B-1, Class M-8, Class
      M-7, Class M-6, Class M-5, Class M-4, Class M-3, Class M-2 and Class M-1 Notes,
      sequentially, in that order, in each case until the Note Principal Balance
      thereof is reduced to zero. After the Note Principal Balances of the Subordinate
      Notes have been reduced to zero, (i) the Indenture Trustee shall allocate any
      Applied Realized Loss Amounts to reduce the Note Principal Balance of the
Class
      A-2
      Notes and Class A-1 Notes, sequentially, in that order,
      in each
      case until the Note Principal Balance thereof is reduced to zero.

     

    Section
      3.29  Allocation
      of Subsequent Recoveries.
      On each
      Payment Date, the Indenture Trustee shall allocate the amount of the Subsequent
      Recoveries, if any, first to increase the Note Principal Balances of the Class
      A-1 Notes and Class A-2 Notes, sequentially, in that order, to which Applied
      Realized Loss Amounts have been previously allocated, in each case by not more
      than the amount of the Unpaid Realized Loss Amount of such Class, and then
      to
      increase the Note Principal Balance of the Subordinate Notes to which Applied
      Realized Loss Amounts have been previously allocated, sequentially, to the
      Class
      M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class
      M-8
      and Class B-1 Notes, in that order, in each case by not more than the amount
      of
      the Unpaid Realized Loss Amount of such Class.

     

    Holders
      of Notes to which any Subsequent Recoveries have been allocated shall not be
      entitled to any payment in respect of Current Interest on the amount of such
      increases for any Accrual Period preceding the Payment Date on which such
      increase occurs.

     

    ARTICLE
      IV

     

    THE
      NOTES; SATISFACTION AND DISCHARGE OF INDENTURE

     

    Section
      4.01  The
      Notes.
      Each
      Class of Book-Entry Notes shall be registered in the name of a nominee
      designated by the Depository. Beneficial Owners will hold interests in the
      Book-Entry Notes through the book-entry facilities of the Depository in minimum
      initial Note Principal Balances of $20,000 and integral multiples of $1 in
      excess thereof.

     

    The
      Indenture Trustee may for all purposes (including the making of payments due
      on
      the Notes) deal with the Depository as the authorized representative of the
      Beneficial Owners with respect to the Notes for the purposes of exercising
      the
      rights of Holders of the Notes hereunder. Except as provided in the next
      succeeding paragraph of this Section 4.01, the rights of Beneficial Owners
      with
      respect to the Notes shall be limited to those established by law and agreements
      between such Beneficial Owners and the Depository and Depository Participants.
      Except as provided in Section 4.08 hereof, Beneficial Owners shall not be
      entitled to definitive certificates for the Notes as to which they are the
      Beneficial Owners. Requests and directions from, and votes of, the Depository
      as
      Holder of the Notes shall not be deemed inconsistent if they are made with
      respect to different Beneficial Owners. The Indenture Trustee may establish
      a
      reasonable record date in connection with solicitations of consents from or
      voting by Noteholders and give notice to the Depository of such record date.
      Without the consent of the Issuing Entity and the Indenture Trustee, no Note
      may
      be transferred by the Depository except to a successor Depository that agrees
      to
      hold such Note for the account of the Beneficial Owners.

     

    In
      the
      event the Depository Trust Company resigns or is removed as Depository, the
      Indenture Trustee with the approval of the Issuing Entity may appoint a
      successor Depository. If no successor Depository has been appointed within
      30
      days of the effective date of the Depository’s resignation or removal, each
      Beneficial Owner shall be entitled to certificates representing the Notes it
      beneficially owns in the manner prescribed in Section 4.08.

     

    The
      Notes
      shall, on original issue, be executed on behalf of the Issuing Entity by the
      Owner Trustee, not in its individual capacity but solely as Owner Trustee,
      authenticated by the Indenture Trustee and delivered by the Indenture Trustee
      to
      or upon the order of the Issuing Entity.

     

    Section
      4.02  Priorities
      of Distribution.

     

    (a)  On
      each
      Payment Date, the Interest Funds for such Payment Date shall be distributed
      by
      the Indenture Trustee from the Payment Account in the following order of
      priority:

     

    (i)  to
      the
      Swap Account, the amount of any Net Swap Payment and any Swap Termination
      Payment (other than a Swap Termination Payment due to a Swap Counterparty
      Trigger Event) payable to the Swap Counterparty with respect to such Payment
      Date;

     

    (ii)  concurrently,
      to pay to the Class A-1 Notes and Class A-2 Notes, pro rata, the Current
      Interest and any Interest Carry Forward Amount for each such Class and such
      Payment Date;

     

    (iii)  sequentially,
      to pay to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
      M-6,
      Class M-7, Class M-8 and Class B-1 Notes, in that order, the Current Interest
      for each such Class and such Payment Date, and

     

    (iv)  any
      remainder to be included in the Excess Cashflow for that Payment
      Date.

     

    (b)  On
      each
      Payment Date, the Principal Distribution Amount for such Payment Date shall
      be
      distributed by the Indenture Trustee from the Payment Account in the following
      order of priority:

     

    (i)  with
      respect to any Payment Date prior to the Stepdown Date or on which a Trigger
      Event is in effect, sequentially:

     

    (A) concurrently,
      the Principal Distribution Amount for that Payment Date to the Class A-1 Notes
      and Class A-2, pro rata based on their outstanding Note Principal Balances,
      in
      each case until the Note Principal Balance thereof is reduced to
      zero;

     

    (B) sequentially,
      the remaining Principal Distribution Amount to the Class M-1, Class M-2, Class
      M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class B-1 Notes,
      in that order, in each case until the Note Principal Balance thereof is reduced
      to zero; and

     

    (C) any
      remaining Principal Distribution Amount to be included in the Excess Cashflow
      for such Payment Date.

     

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

     

    (A) to
      pay,
      as principal, an amount equal to the Class A Principal Distribution Amount
      for
      that Payment Date, concurrently, to the Class A-1 Notes and Class A-2 Notes,
      pro
      rata based on their outstanding Note Principal Balances, in each case until
      the
      Note Principal Balance thereof is reduced to zero;

     

    (B) sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
      M-7, Class M-8 and Class B-1 Notes, in that order, the Subordinate Class
      Principal Distribution Amount for each such Class and Payment Date, until the
      Note Principal Balance of each such Class is reduced to zero; and

     

    (C) any
      remaining Principal Distribution Amount to be included as part of the Excess
      Cashflow.

     

    (c)  With
      respect to any Payment Date, any Excess Cashflow shall be distributed to the
      Classes of Notes in the following amounts and order of priority, to the extent
      of the remaining Excess Cashflow:

     

    (i)  to
      the
      Holders of the Class or Classes of Adjustable Rate Notes then entitled to
      receive distributions in respect of principal, an amount in respect of principal
      equal to the Extra Principal Distribution Amount, payable to such Holders of
      each such Class as part of the Principal Distribution Amount pursuant to Section
      4.02(b) above;

     

    (ii)  sequentially,
      to Holders of the Class A-1 Notes and Class A-2, in that order, based on the
      amount of Unpaid Realized Loss Amount for each such Class, an amount equal
      to
      any Unpaid Realized Loss Amount for each such Class;

     

    (iii)  sequentially,
      to the Holders
      of the Class
      M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class
      M-8
      and Class B-1 Notes, in that order, in each case, first in an amount equal
      to
      any Interest Carry Forward Amount for that class and Payment Date, and second,
      in an amount equal to the Unpaid Realized Loss Amount for that
      class;

     

    (iv)  first,
      to
      Holders of the Class A-1 Notes and Class A-2 Notes, pro rata based on
      entitlement, to the extent needed to pay any remaining Net Rate Carryover for
      each such class, and second, sequentially to the Class M-1, Class M-2, Class
      M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8 and Class
      B-1 Notes,
      in
      that order, to the extent needed to pay any remaining Net Rate Carryover for
      each such class;

     

    (v)  to
      the
      Swap Account, an amount equal to any Swap Termination Payment due to the Swap
      Counterparty as a result of a Swap Counterparty Trigger Event;

     

    (vi)  to
      the
      Class C Notes, any remaining amount; and

     

    (vii)  to
      the
      Owner Trust Certificates, any
      remaining amount.

     

    (d)  On
      each
      Payment Date on or prior to the Swap Contract Termination Date, following the
      deposits to the Swap Account pursuant to Section 4.02(a)(i) and the
      distributions described under Section 4.02(c)(i) through (iv), the Indenture
      Trustee shall distribute amounts paid by or on behalf of the Swap Contract
      Administrator and on deposit in the Swap Account in the following amounts and
      order of priority:

     

    (i)  to
      the
      Swap Contract Administrator for payment to the Swap Counterparty, any Net Swap
      Payment payable to the Swap Counterparty with respect to such Payment Date;
      and

     

    (ii)  to
      the
      Swap Contract Administrator for payment to the Swap Counterparty, any Swap
      Termination Payment (other than a Swap Termination Payment due to a Swap
      Counterparty Trigger Event) payable to the Swap Counterparty with respect to
      such Payment Date.

     

    (iii)  concurrently
      to the Holders of each Class of Class A Notes, to pay any remaining Current
      Interest and Interest Carry Forward Amount due on that Payment Date, pro rata
      based on their respective entitlements;

     

    (iv)  sequentially,
      to the Holders of the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8 and Class B-1 Notes, in that order, in each
      case
      to pay an amount equal to any remaining Current Interest and Interest Carry
      Forward Amount due for the Class and the Payment Date;

     

    (v)  to
      the
      Holders of the Class or Classes of Adjustable Rate Notes then entitled to
      receive distributions in respect of principal, an aggregate amount equal to
      the
      Overcollateralization Deficiency Amount remaining unpaid following the
      distributions described under Section 4.042b), payable to such Holders of each
      such Class as principal in the same manner in which the Extra Principal
      Distribution Amount in would be distributed to such Classes as described under
      Section 4.02(b);

     

    (vi)  first,
      to
      the Holders of the Class A-1 Notes and Class A-2 Notes, pro rata based on
      entitlement, to the extent needed to pay any remaining Net Rate Carryover for
      each such Class and Payment Date, and second, sequentially to the Class M-1,
      Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class
      M-8
      and Class B-1 Notes,
      in
      that order, to the extent needed to pay any remaining Net Rate Carryover for
      each such Class and Payment Date;

     

    (vii)  sequentially,
      to the Holders of the Class A-1 Notes and Class A-2 Notes, in that order, based
      on the amount of Unpaid Realized Loss Amount for each such Class, in an amount
      equal to the Unpaid Realized Loss Amount for each such Class and Payment Date;
      and

     

    (viii)  sequentially,
      to the Holders
      of the Class
      M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class
      M-8
      and Class B-1 Notes, in that order, in each case in an amount equal to the
      remaining Unpaid Realized Loss Amount for the Class and Payment
      Date.

     

    On
      each
      Payment Date on or prior to the Swap Contract Termination Date, following the
      distributions described under Section 4.02(c)(6), the Indenture Trustee shall
      distribute amounts on deposit in the Swap Account to the Swap Contract
      Administrator for payment to the Swap Counterparty, any Swap Termination Payment
      due to a Swap Counterparty Trigger Event payable to the Swap Counterparty with
      respect to such Payment Date.

     

    (e)  Subject
      to Section 9.02 of the Sale and Servicing Agreement respecting the final
      distribution, on each Payment Date the Indenture Trustee shall make
      distributions to each Noteholder of record on the preceding Record Date either
      by wire transfer in immediately available funds to the account of such holder
      at
      a bank or other entity having appropriate facilities therefor, if (i) such
      Holder has so notified the Indenture Trustee at least 5 Business Days prior
      to
      the related Record Date and (ii) such Holder shall hold Regular Notes with
      aggregate principal denominations of not less than $1,000,000 or evidencing
      a
      Percentage Interest aggregating 10% or more with respect to such Class or,
      if
      not, by check mailed by first class mail to such Noteholder at the address
      of
      such holder appearing in the Note Register. Notwithstanding the foregoing,
      but
      subject to Section 9.02 of the Sale and Servicing Agreement respecting the
      final
      distribution, distributions with respect to Notes registered in the name of
      a
      Depository shall be made to such Depository in immediately available
      funds.

     

    On
      or
      before 5:00 p.m. Pacific time on the fifth Business Day following each
      Determination Date (but in no event later than 5:00 p.m. Pacific time on the
      third Business Day before the related Payment Date), the Master Servicer shall
      deliver a report to the Indenture Trustee (in the form of a computer readable
      magnetic tape or by such other means as the Master Servicer and the Indenture
      Trustee may agree from time to time) containing such data and information as
      agreed to by the Master Servicer and the Indenture Trustee such as to permit
      the
      Indenture Trustee to prepare the Monthly Statement and make the required
      distributions for the related Payment Date (the “Remittance Report”). The
      Indenture Trustee shall not be responsible to recompute, recalculate or verify
      information provided to it by the Master Servicer and shall be permitted to
      conclusively rely on any information provided to it by the Master
      Servicer.

     

    Section
      4.03  Registration
      of and Limitations on Transfer and Exchange of Notes; Appointment of Note
      Registrar and Certificate Registrar.
      The
      Issuing Entity shall cause to be kept at the Corporate Trust Office a Note
      Register in which, subject to such reasonable regulations as it may prescribe,
      the Note Registrar shall provide for the registration of Notes and of transfers
      and exchanges of Notes as herein provided.

     

    Subject
      to the restrictions and limitations set forth below, upon surrender for
      registration of transfer of any Note at the Corporate Trust Office, the Issuing
      Entity shall execute and the Note Registrar shall authenticate and deliver,
      in
      the name of the designated transferee or transferees, one or more new Notes
      in
      authorized initial Note Principal Balances evidencing the same Class and
      aggregate Percentage Interests.

     

    Subject
      to the foregoing, at the option of the Noteholders, Notes may be exchanged
      for
      other Notes of like tenor and in authorized initial Note Principal Balances
      evidencing the same Class and aggregate Percentage Interests upon surrender
      of
      the Notes to be exchanged at the Corporate Trust Office of the Note Registrar.
      Whenever any Notes are so surrendered for exchange, the Issuing Entity shall
      execute and the Indenture Trustee shall authenticate and deliver the Notes
      which
      the Noteholder making the exchange is entitled to receive. Each Note presented
      or surrendered for registration of transfer or exchange shall (if so required
      by
      the Note Registrar) be duly endorsed by, or be accompanied by a written
      instrument of transfer in form reasonably satisfactory to the Note Registrar
      duly executed by the Holder thereof or his attorney duly authorized in writing
      with such signature guaranteed by a commercial bank or trust company located
      or
      having a correspondent located in the city of New York. Notes delivered upon
      any
      such transfer or exchange will evidence the same obligations, and will be
      entitled to the same rights and privileges, as the Notes
      surrendered.

     

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

     

    The
      Issuing Entity hereby appoints the Indenture Trustee as (i) Certificate
      Registrar to keep at its Corporate Trust Office a Certificate Register pursuant
      to Section 3.09 of the Trust Agreement in which, subject to such reasonable
      regulations as it may prescribe, the Certificate Registrar shall provide for
      the
      registration of Certificates and of transfers and exchanges thereof pursuant
      to
      Section 3.05 of the Trust Agreement and (ii) Note Registrar under this
      Indenture. The Indenture Trustee hereby accepts such appointments.

     

    Section
      4.04  Mutilated,
      Destroyed, Lost or Stolen Notes.
      If (i)
      any mutilated Note is surrendered to the Indenture Trustee, or the Indenture
      Trustee receives evidence to its satisfaction of the destruction, loss or theft
      of any Note, and (ii) there is delivered to the Indenture Trustee such security
      or indemnity as may be required by it to hold the Issuing Entity and the
      Indenture Trustee harmless, then, in the absence of notice to the Issuing
      Entity, the Note Registrar or the Indenture Trustee that such Note has been
      acquired by a bona fide purchaser, and provided that the requirements of Section
      8-405 of the UCC are met, the Issuing Entity shall execute, and upon its request
      the Indenture Trustee shall authenticate and deliver, in exchange for or in
      lieu
      of any such mutilated, destroyed, lost or stolen Note, a replacement Note;
      provided,
      however,
      that if
      any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
      become or within seven days shall be due and payable, instead of issuing a
      replacement Note, the Issuing Entity may pay such destroyed, lost or stolen
      Note
      when so due or payable without surrender thereof. If, after the delivery of
      such
      replacement Note or payment of a destroyed, lost or stolen Note pursuant to
      the
      proviso to the preceding sentence, a bona fide purchaser of the original Note
      in
      lieu of which such replacement Note was issued presents for payment such
      original Note, the Issuing Entity and the Indenture Trustee shall be entitled
      to
      recover such replacement Note (or such payment) from the Person to whom it
      was
      delivered or any Person taking such replacement Note from such Person to whom
      such replacement Note was delivered or any assignee of such Person, except
      a
      bona fide purchaser, and shall be entitled to recover upon the security or
      indemnity provided therefor to the extent of any loss, damage, cost or expense
      incurred by the Issuing Entity or the Indenture Trustee in connection
      therewith.

     

    Upon
      the
      issuance of any replacement Note under this Section 4.04, the Issuing Entity
      may
      require the payment by the Holder of such Note of a sum sufficient to cover
      any
      tax or other governmental charge that may be imposed in relation thereto and
      any
      other reasonable expenses (including the fees and expenses of the Indenture
      Trustee) connected therewith.

     

    Every
      replacement Note issued pursuant to this Section 4.04 in replacement of any
      mutilated, destroyed, lost or stolen Note shall constitute an original
      additional contractual obligation of the Issuing Entity, whether or not the
      mutilated, destroyed, lost or stolen Note shall be at any time enforceable
      by
      anyone, and shall be entitled to all the benefits of this Indenture equally
      and
      proportionately with any and all other Notes duly issued hereunder.

     

    The
      provisions of this Section 4.04 are exclusive and shall preclude (to the extent
      lawful) all other rights and remedies with respect to the replacement or payment
      of mutilated, destroyed, lost or stolen Notes.

     

    Section
      4.05  Persons
      Deemed Owners.
      Prior
      to due presentment for registration of transfer of any Note, the Issuing Entity,
      the Indenture Trustee, the Paying Agent and any agent of the Issuing Entity
      or
      the Indenture Trustee may treat the Person in whose name any Note is registered
      (as of the day of determination) as the owner of such Note for the purpose
      of
      receiving payments of principal of and interest, if any, on such Note and for
      all other purposes whatsoever, whether or not such Note be overdue, and neither
      the Issuing Entity, the Indenture Trustee, the Paying Agent nor any agent of
      the
      Issuing Entity or the Indenture Trustee shall be affected by notice to the
      contrary.

     

    Section
      4.06  Cancellation.
      All
      Notes surrendered for payment, registration of transfer, exchange or redemption
      shall, if surrendered to any Person other than the Indenture Trustee, be
      delivered to the Indenture Trustee and shall be promptly cancelled by the
      Indenture Trustee. The Issuing Entity may at any time deliver to the Indenture
      Trustee for cancellation any Notes previously authenticated and delivered
      hereunder which the Issuing Entity may have acquired in any manner whatsoever,
      and all Notes so delivered shall be promptly cancelled by the Indenture Trustee.
      No Notes shall be authenticated in lieu of or in exchange for any Notes
      cancelled as provided in this Section 4.06, except as expressly permitted by
      this Indenture. All cancelled Notes may be held or disposed of by the Indenture
      Trustee in accordance with its standard retention or disposal policy as in
      effect at the time unless the Issuing Entity shall direct by an Issuing Entity
      Request that they be destroyed or returned to it; provided,
      however,
      that
      such Issuing Entity Request is timely and the Notes have not been previously
      disposed of by the Indenture Trustee.

     

    Section
      4.07  Book-Entry
      Notes.
      The
      Offered Notes, upon original issuance, will be issued in the form of typewritten
      Notes to be delivered to the Indenture Trustee as Custodian for the Depository.
      The Offered Notes shall initially be registered on the Note Register in the
      name
      of Cede & Co., the nominee of the Depository, and no Beneficial Owner will
      receive a Definitive Note representing such Beneficial Owner’s interest in such
      Note, except as provided in Section 4.09. With respect to such Notes, unless
      and
      until definitive, fully registered Notes (the “Definitive Notes”) have been
      issued to Beneficial Owners pursuant to Section 4.09:

     

    (i)  the
      provisions of this Section 4.07 shall be in full force and effect;

     

    (ii)  the
      Note
      Registrar, the Paying Agent and the Indenture Trustee shall be entitled to
      deal
      with the Depository for all purposes of this Indenture (including the payment
      of
      principal of and interest on the Notes and the giving of instructions or
      directions hereunder) as the sole holder of the Notes, and shall have no
      obligation to the Beneficial Owners of the Notes;

     

    (iii)  to
      the
      extent that the provisions of this Section 4.07 conflict with any other
      provisions of this Indenture, the provisions of this Section 4.07 shall
      control;

     

    (iv)  the
      rights of Beneficial Owners shall be exercised only through the Depository
      and
      shall be limited to those established by law and agreements between such Owners
      of Notes and the Depository and/or the Depository Participants. Unless and
      until
      Definitive Notes are issued pursuant to Section 4.09, the initial Depository
      will make book-entry transfers among the Depository Participants and receive
      and
      transmit payments of principal of and interest on the Notes to such Depository
      Participants; and

     

    (v)  whenever
      this Indenture requires or permits actions to be taken based upon instructions
      or directions of Holders of Notes evidencing a specified percentage of the
      Note
      Principal Balances of the Notes, the Depository shall be deemed to represent
      such percentage with respect to the Notes only to the extent that it has
      received instructions to such effect from Beneficial Owners and/or Depository
      Participants owning or representing, respectively, such required percentage
      of
      the beneficial interest in the Notes and has delivered such instructions to
      the
      Indenture Trustee.

     

    Section
      4.08  Notices
      to Depository.
      Whenever a notice or other communication to the Note Holders is required under
      this Indenture, unless and until Definitive Notes shall have been issued to
      Beneficial Owners pursuant to Section 4.09, the Indenture Trustee shall give
      all
      such notices and communications specified herein to be given to Holders of
      the
      Notes to the Depository, and shall have no obligation to the Beneficial
      Owners.

     

    Section
      4.09  Definitive
      Notes.
      If (i)
      the Depository notifies the Issuing Entity that it is no longer willing or
      able
      to properly discharge its responsibilities with respect to the Offered Notes
      or
      (ii) after the occurrence of an Event of Default, Beneficial Owners of Offered
      Notes representing beneficial interests aggregating at least a majority of
      the
      Note Principal Balances of the Offered Notes advise the Depository in writing
      that the continuation of a book-entry system through the Depository is no longer
      in the best interests of the Beneficial Owners, then the Depository shall notify
      all Beneficial Owners and the Indenture Trustee of the occurrence of any such
      event and of the availability of Definitive Notes to Beneficial Owners
      requesting the same. Upon surrender to the Indenture Trustee of any such Note
      representing the Book-Entry Notes by the Depository, accompanied by registration
      instructions, the Issuing Entity shall execute and the Indenture Trustee shall
      authenticate the Definitive Notes in accordance with the instructions of the
      Depository. None of the Issuing Entity, the Note Registrar or the Indenture
      Trustee shall be liable for any delay in delivery of such instructions and
      may
      conclusively rely on, and shall be protected in relying on, such instructions.
      Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize
      the
      Holders of the Definitive Notes as Noteholders.

     

    Section
      4.10  Tax
      Treatment.
      The
      Issuing Entity has entered into this Indenture, and the Offered Notes will
      be
      issued with the intention that, for federal, state and local income, single
      business and franchise tax purposes, the Offered Notes will qualify as
      indebtedness. The Issuing Entity and the Indenture Trustee (in accordance with
      Section 6.07 hereof), by entering into this Indenture, and each Noteholder,
      by
      its acceptance of its Note (and each Beneficial Owner by its acceptance of
      an
      interest in the applicable Book-Entry Note), agree to treat the Notes for
      federal, state and local income, single business and franchise tax purposes
      as
      indebtedness.

     

    Section
      4.11  Satisfaction
      and Discharge of Indenture.
      This
      Indenture shall cease to be of further effect with respect to the Notes except
      as to (i) rights of registration of transfer and exchange, (ii) substitution
      of
      mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
      receive payments of principal thereof and interest thereon, (iv) Sections 3.03,
      3.04, 3.05, 3.08, 3.15, 3.17 and 3.18, (v) the rights, obligations and
      immunities of the Indenture Trustee hereunder (including the rights of the
      Indenture Trustee under Section 6.08 and the obligations of the Indenture
      Trustee under Section 4.12) and (vi) the rights of Noteholders as beneficiaries
      hereof with respect to the property so deposited with the Indenture Trustee
      payable to all or any of them, and the Indenture Trustee, on demand of and
      at
      the expense of the Issuing Entity, shall execute proper instruments
      acknowledging satisfaction and discharge of this Indenture with respect to
      the
      Notes and shall release and deliver the Collateral to or upon the order of
      the
      Issuing Entity, when

     

    (A) either

     

    (1) all
      Notes
      theretofore authenticated and delivered (other than (i) Notes that have been
      destroyed, lost or stolen and that have been replaced or paid as provided in
      Section 4.02 hereof and (ii) Notes for whose payment money has theretofore
      been
      deposited in trust or segregated and held in trust by the Issuing Entity and
      thereafter repaid to the Issuing Entity or discharged from such trust, as
      provided in Section 3.03) have been delivered to the Indenture Trustee for
      cancellation;

     

    
      	 	
              (2)

            	
              all
                Notes not theretofore delivered to the Indenture
                Trustee for cancellation

            

    

     

    
      	 	
              a.

            	
              have
                become due and payable,

            
	 	
              b.

            	
              will
                become due and payable at the Maturity Date within one year,
                or

            
	 	
              c.

            	
              have
                been called for early redemption and the Trust has been terminated
                pursuant to Section 8.07 hereof, or

            

    

    

    
      	 	
              (3)

            	
              following
                the occurrence of a TMP Trigger Event, concurrently with the later
                to
                occur of (i) the satisfaction of all conditions precedent to a REMIC
                Conversion and (ii) the exchange of (y) the Offered Notes for the
                for the
                Class A REMIC Notes and Class M REMIC Notes and (z) the Privately
                Offered
                Notes and the Privately Offered
                Certificates.

            

    

     

    and
      the
      Issuing Entity, in the case of a. or b. above, has irrevocably deposited or
      caused to be irrevocably deposited with the Indenture Trustee cash or direct
      obligations of or obligations guaranteed by the United States of America (which
      will mature prior to the date such amounts are payable), in trust for such
      purpose, in an amount sufficient to pay and discharge the entire indebtedness
      on
      such Notes then outstanding and all amounts owing under the Swap Contract not
      theretofore delivered to the Indenture Trustee for cancellation when due on
      the
      Maturity Date or other final Payment Date and has delivered to the Indenture
      Trustee a verification report from a nationally recognized accounting firm
      certifying that the amounts deposited with the Indenture Trustee are sufficient
      to pay and discharge the entire indebtedness of such Notes, or, in the case
      of
      c. above, the Issuing Entity shall have complied with all requirements of
      Section 9.07 hereof,

     

    (B) the
      Issuing Entity has paid or caused to be paid all other sums payable hereunder;
      and

     

    (C) the
      Issuing Entity has delivered to the Indenture Trustee an Officer’s Certificate
      and an Opinion of Counsel, each meeting the applicable requirements of Section
      11.01 hereof, each stating that all conditions precedent herein provided for
      relating to the satisfaction and discharge of this Indenture have been complied
      with and, if the Opinion of Counsel relates to a deposit made in connection
      with
      Section 4.10(A)(2)b. above, such opinion shall further be to the effect that
      such deposit will constitute an “in-substance defeasance” within the meaning of
      Revenue Ruling 85-42, 1985-1 C.B. 36, and in accordance therewith, the Issuing
      Entity will be the owner of the assets deposited in trust for federal income
      tax
      purposes.

     

    Section
      4.12  Application
      of Trust Money.
      All
      monies deposited with the Indenture Trustee pursuant to Section 4.11 hereof
      shall be held in trust and applied by it, in accordance with the provisions
      of
      the Notes and this Indenture, to the payment, either directly or through any
      Paying Agent or the Issuing Entity, Certificate Paying Agent as designee of
      the
      Issuing Entity, as the Indenture Trustee may determine, to the Holders of Notes,
      of all sums due and to become due thereon for principal and interest or
      otherwise; but such monies need not be segregated from other funds except to
      the
      extent required herein or required by law.

     

    Section
      4.13  Repayment
      of Monies Held by Paying Agent.
      In
      connection with the satisfaction and discharge of this Indenture with respect
      to
      the Notes, all monies then held by any Person other than the Indenture Trustee
      under the provisions of this Indenture with respect to such Notes shall, upon
      demand of the Issuing Entity, be paid to the Indenture Trustee to be held and
      applied according to Section 3.05 of the Servicing Agreement and thereupon
      such
      Person shall be released from all further liability with respect to such
      monies.

     

    Section
      4.14  Temporary
      Notes.
      Pending
      the preparation of any Definitive Notes, the Issuing Entity may execute and
      upon
      its written direction, the Indenture Trustee may authenticate and make available
      for delivery, temporary Notes that are printed, lithographed, typewritten,
      photocopied or otherwise produced, in any denomination, substantially of the
      tenor of the Definitive Notes in lieu of which they are issued and with such
      appropriate insertions, omissions, substitutions and other variations as the
      officers executing such Notes may determine, as evidenced by their execution
      of
      such Notes.

     

    If
      temporary Notes are issued, the Issuing Entity will cause Definitive Notes
      to be
      prepared without unreasonable delay. After the preparation of the Definitive
      Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
      surrender of the temporary Notes at the office of the Indenture Trustee in
      care
      of DTC Transfer Services, located at 55 Water Street, Jeanette Park Entrance,
      New York, New York 10041, without charge to the Holder. Upon surrender for
      cancellation of any one or more temporary Notes, the Issuing Entity shall
      execute and the Indenture Trustee shall authenticate and make available for
      delivery, in exchange therefor, Definitive Notes of authorized denominations
      and
      of like tenor, class and aggregate principal amount. Until so exchanged, such
      temporary Notes shall in all respects be entitled to the same benefits under
      this Indenture as Definitive Notes.

     

    Section
      4.15  Representation
      Regarding ERISA.
      By
      acquiring a Note or interest therein, each Holder of such Note or Beneficial
      Owner of any such interest will be deemed to represent that either (1) it is
      not
      acquiring the Note with Plan Assets or (2) for an Offered Note (A) the
      acquisition, holding and transfer of such Note will not give rise to a nonexempt
      prohibited transaction under Section 406 of ERISA or Section 4975 of the Code
      and (B) the Note is rated investment grade or better and such person believes
      that the Offered Note is properly treated as indebtedness without substantial
      equity features for purposes of the Department of Labor regulation 29 C.F.R.
§
2510.3-101, and agrees to so treat the Offered Note. Alternatively, such person
      may provide the Indenture Trustee and the Owner Trustee with an opinion of
      counsel, which opinion of counsel will not be at the expense of the Issuing
      Entity, CHL, the Note Registrar, the Depositor, the Seller, any Underwriter,
      the
      Owner Trustee, the Indenture Trustee, the Master Servicer or any successor
      servicer which opines that the acquisition, holding and transfer of such Note
      or
      interest therein is permissible under applicable law, will not constitute or
      result in a non-exempt prohibited transaction under ERISA or Section 4975 of
      the
      Code and will not subject CHL, the Seller, the Depositor, any Underwriter,
      the
      Note Registrar, the Owner Trustee, the Indenture Trustee, the Master Servicer
      or
      any successor servicer to any obligation in addition to those undertaken in
      the
      Indenture or Sale and Servicing Agreement.

     

    Section
      4.16  Privately
      Offered Notes.

     

    No
      Transfer of a Privately Offered Note shall be made unless such Transfer is
      made
      pursuant to an effective registration statement under the Securities Act and
      any
      applicable state securities laws or is exempt from the registration requirements
      under the Securities Act and such state securities laws. In the event that
      a
      transfer is to be made in reliance upon an exemption from the Securities Act
      and
      such state securities laws, in order to assure compliance with the Securities
      Act and such state securities laws, the Noteholder desiring to effect such
      Transfer and such Noteholder’s prospective transferee shall each certify to the
      Indenture Trustee in writing the facts surrounding the Transfer in substantially
      the forms set forth in Exhibit B (the “Transferor Certificate”) and (i) deliver
      a letter in substantially the form of either Exhibit D (the “Investment Letter”)
      or Exhibit C (the “Rule 144A Letter”) or (ii) there shall be delivered to the
      Indenture Trustee at the expense of the Noteholder desiring to effect such
      transfer an Opinion of Counsel that such Transfer may be made pursuant to an
      exemption from the Securities Act. The Depositor shall provide to any Holder
      of
      a Privately Offered Note and any prospective transferee designated by any such
      Holder, information regarding the related Notes and the Mortgage Loans and
      such
      other information as shall be necessary to satisfy the condition to eligibility
      set forth in Rule 144A(d)(4) for transfer of any such Note without registration
      thereof under the Securities Act pursuant to the registration exemption provided
      by Rule 144A. The Indenture Trustee and the Master Servicer shall cooperate
      with
      the Depositor in providing the Rule 144A information referenced in the preceding
      sentence, including providing to the Depositor such information regarding the
      Notes, the Mortgage Loans and other matters regarding the Issuing Entity as
      the
      Depositor shall reasonably request to meet its obligation under the preceding
      sentence. Each Holder of a Privately Offered Note desiring to effect such
      Transfer shall, and does hereby agree to, indemnify the Indenture Trustee,
      the
      Depositor, the Seller and the Master Servicer against any liability that may
      result if the Transfer is not so exempt or is not made in accordance with such
      federal and state laws. Notwithstanding the foregoing, the provisions of this
      paragraph shall not apply to the initial transfer of the Privately Offered
      Notes
      to the Depositor or the Seller.

     

    No
      transfer, sale, pledge or other disposition of any Privately Offered Note shall
      be made and the Note Registrar shall refuse to register any such transfer,
      sale,
      pledge or other disposition, unless (A) effective prior to the date of
      any TMP Trigger Event, the transferee certifies in the form of Exhibit E
      hereto to the Owner Trustee, the Note Registrar and the Indenture Trustee that,
      100% of the Privately Offered Notes and the Certificate will be owned by a
      single REIT, directly or indirectly through one or more QRSs of such REIT or
      one
      or more entities disregarded as entities separate from such REIT or such QRSs;
      provided, that, notwithstanding the foregoing, (x) the Privately Offered
      Notes may be pledged to secure indebtedness and may be the subject of
      repurchase agreements treated by the Trust as secured indebtedness for federal
      income tax purposes, and (y) the Privately Offered Notes may be transferred
      by the related lender under any such related loan agreement or repurchase
      agreement upon a default under any such indebtedness, in which case the
      transferor shall deliver to the Certificate Registrar, the Owner Trustee and
      the
      Indenture Trustee a certificate substantially in the form attached as Exhibit
      K to the Trust Agreement certifying to such effect. Upon a default under
      any such indebtedness, the lender or repurchase agreement counterparty, as
      applicable may deliver to the Certificate Registrar, the Owner Trustee and
      the
      Indenture Trustee a certificate substantially in the form attached to the
      Trust Agreement as Exhibit N certifying that a default has occurred and that
      a
      REMIC Conversion should be undertaken or (B) with respect to the Privately
      Offered Notes, all of such Privately Offered Notes (but not the Owner Trust
      Certificate) are transferred to the Issuing Entity in exchange for the Issuing
      Entity’s causing the delivery to the transferor of the REMIC Privately Offered
      Certificates issued in connection with a REMIC Conversion.

     

    Notwithstanding
      the foregoing, the provisions of this Section shall not apply to the initial
      transfer of the Privately Offered Notes to the Initial Single Owner or the
      re-registering of such Notes to any repurchase agreement
      counterparty.

     

    Section
      4.17  Swap
      Contract.

     

    CHL
      shall
      cause The Bank of New York to enter into the Swap Contract Administration
      Agreement and shall assign all of its right, title and interest in and to the
      interest rate swap transaction evidenced by the Swap Contract to, and shall
      cause all of its obligations in respect of such transaction to be assumed by,
      the Swap Contract Administrator, on the terms and conditions set forth in the
      Swap Contract Assignment Agreement. The Indenture Trustee’s rights to receive
      certain proceeds of the Swap Contract as provided in the Swap Contract
      Administration Agreement shall be rights of the Indenture Trustee for the
      benefit of the Noteholders and shall be an asset of the Trust. The Indenture
      Trustee shall deposit any amounts received from time to time from the Swap
      Contract Administrator with respect to the Swap Contract into the Swap Account.
      The Master Servicer shall deposit any amounts received on behalf of Indenture
      Trustee from time to time with respect to the Swap Contract into the Swap
      Account.

     

    On
      the
      Business Day preceding each Payment Date, the Indenture Trustee shall notify
      the
      Swap Contract Administrator of any amounts distributable to the Adjustable
      Rate
      Notes pursuant to Section 4.02(d)(iii) through (viii) that will remain unpaid
      following all distributions to be made on such Payment Date pursuant to Section
      4.02(a) through (c).

     

    No
      later
      than two Business Days following each Payment Date, the Indenture Trustee shall
      provide the Swap Contract Administrator with information regarding the aggregate
      Note Principal Balance of the Adjustable Rate Notes after all distributions
      on
      such Payment Date.

     

    Upon
      the
      Swap Contract Administrator obtaining actual knowledge of the rating of the
      Swap
      Counterparty falling below the Approved Rating Thresholds (as defined in the
      Swap Contract), the Indenture Trustee shall direct the Swap Contract
      Administrator to demand payment of the Delivery Amount (as defined in the ISDA
      Credit Support Annex). If a Delivery Amount is demanded, the Indenture Trustee
      shall set up an account in accordance with Section 8.08 to hold cash or other
      eligible investments pledged under the ISDA Credit Support Annex. Any cash
      or
      other eligible investments pledged under the ISDA Credit Support Annex shall
      not
      be part of the Payment Account or the Swap Account unless they are applied
      in
      accordance with the ISDA Credit Support Annex to make a payment due to the
      Swap
      Contract Administrator pursuant to the Swap Contract.

     

    Upon
      the
Indenture
      Trustee
      obtaining actual knowledge of a Failure to Pay or Deliver (as defined in the
      Swap Contract), the Indenture Trustee shall direct the Swap Contract
      Administrator to demand payment under the Swap Guarantee.

     

    Upon
      the
      Indenture Trustee obtaining actual knowledge of an Event of Default (as defined
      in the Swap Contract) or Termination Event (as defined in the Swap Contract)
      for
      which the Swap Contract Administrator has the right to designate an Early
      Termination Date (as defined in the Swap Contract), the Indenture Trustee shall
      act at the written direction of the Depositor as to whether to direct the Swap
      Contract Administrator to designate an Early Termination Date; provided,
      however, that the Indenture Trustee shall provide written notice to each Rating
      Agency following the Event of Default or Termination Event. Upon the termination
      of the Swap Contract under the circumstances contemplated by this Section 4.17,
      the Indenture Trustee shall use its reasonable best efforts to enforce the
      rights of the Swap Contract Administrator as may be permitted by the terms
      of
      the Swap Contract and consistent with the terms hereof, and CHL shall assist
      the
      Swap Contract Administrator in procuring a replacement swap contract with terms
      approximating those of the original Swap Contract.

     

    In
      the
      event that the swap counterparty in respect of a replacement swap contract
      pays
      any upfront amount to the Swap Contract Administrator in connection with
      entering into the replacement swap contract and such upfront amount is received
      by the Swap Contract Administrator prior to the Distribution Date on which
      any
      Swap Termination Payment will be payable to the Swap Counterparty in respect
      of
      the original Swap Contract, a portion of that upfront amount equal to the lesser
      of (x) that upfront amount and (y) the amount of the Swap Termination Payment
      due to the Swap Counterparty in respect of the original Swap Contract (the
      “Adjusted Replacement Upfront Amount”) shall be included in Interest Funds for
      Loan Group 1 and Loan Group 2 pro rata based on their respective Interest Funds
      for that Distribution Date and any upfront amount in excess of the Adjusted
      Replacement Upfront Amount shall be distributed to GSC Capital Corp. QRS
      Delaware Real Estate Holdings, Inc. and will not be available to make
      distributions in respect of any Class of Certificates. Any upfront amount paid
      to the Swap Contract Administrator by the swap counterparty in respect of a
      replacement swap contract after the Distribution Date on which any Swap
      Termination Payment will be payable to the Swap Counterparty in respect of
      the
      original Swap Contract, such upfront amount shall be retained by the Swap
      Contract Administrator and remitted to the Indenture Trustee on subsequent
      Distribution Dates up to and including the Swap Contract Termination Date to
      pay
      any amounts distributable to the Interest-Bearing Certificates pursuant to
      Section 4.04(d)(3) through (8) that will remain unpaid following all
      distributions to be made on such Distribution Date pursuant to Section 4.04(a)
      through (c).

     

    Any
      portion of any Net Swap Payment or Swap Termination Payment payable by the
      Swap
      Counterparty and not remitted by the Swap Contract Administrator to the
      Indenture Trustee with respect to any Payment Date will be remitted to GSC
      Capital Corp. QRS Delaware Real Estate Holdings, Inc. and will not be available
      to make distributions in respect of any Class of Notes.

     

    The
      Swap
      Counterparty shall be an express third party beneficiary of this Agreement
      for
      the purpose of enforcing the provisions hereof to the extent of the Swap
      Counterparty’s rights explicitly specified herein as if a party
      hereto.

     

    ARTICLE
      V

     

    DEFAULT
      AND REMEDIES

     

    Section
      5.01  Events
      of Default.
      The
      Issuing Entity shall deliver to the Indenture Trustee, within five days after
      learning of the occurrence of an Event of Default, written notice in the form
      of
      an Officer’s Certificate of any event which with the giving of notice and the
      lapse of time would become an Event of Default under clause (iii), (iv) or
      (v)
      of the definition of “Event of Default”, its status and what action the Issuing
      Entity is taking or proposes to take with respect thereto. The Indenture Trustee
      shall not be deemed to have knowledge of any Event of Default unless a
      Responsible Officer has actual knowledge thereof or unless written notice of
      such Event of Default is received by a Responsible Officer and such notice
      references the Notes, the Trust Estate or this Indenture.

     

    Section
      5.02  Acceleration
      of Maturity; Rescission and Annulment.
      If an
      Event of Default should occur and be continuing, then and in every such case
      the
      Indenture Trustee at the written direction of the Holders of Offered Notes
      representing not less than a majority of the aggregate Note Principal Balance
      of
      the Offered Notes may declare the Notes Offered Notes to be immediately due
      and
      payable, by a notice in writing to the Issuing Entity (and to the Indenture
      Trustee if such notice is given by Noteholders), and upon any such declaration
      the unpaid Note Principal Balance of the Notes Offered Notes, together with
      accrued and unpaid interest thereon through the date of acceleration, shall
      become immediately due and payable.

     

    At
      any
      time after such declaration of acceleration of maturity with respect to an
      Event
      of Default has been made and before a judgment or decree for payment of the
      money due has been obtained by the Indenture Trustee as hereinafter in this
      Article V provided, Holders of the Notes Offered Notes representing not less
      than a majority of the aggregate Note Principal Balance of the Notes Offered
      Notes, by written notice to the Issuing Entity and the Indenture Trustee, may
      waive the related Event of Default and rescind and annul such declaration and
      its consequences if

     

    (i)  the
      Issuing Entity has paid or deposited with the Indenture Trustee a sum sufficient
      to pay:

     

    (A) all
      payments of principal of and interest on the Notes Offered Notes and all other
      amounts that would then be due hereunder or upon the Offered Notes if the Event
      of Default giving rise to such acceleration had not occurred; and

     

    (B) all
      sums
      paid or advanced by the Indenture Trustee hereunder and the reasonable
      compensation, expenses, disbursements and advances of the Indenture Trustee
      and
      its agents and counsel;

     

    (ii)  all
      Events of Default, other than the nonpayment of the principal of the Notes
      that
      has become due solely by such acceleration, have been cured or waived as
      provided in Section 5.12.

     

    No
      such
      rescission shall affect any subsequent default or impair any right consequent
      thereto.

     

    Section
      5.03  Collection
      of Indebtedness and Suits for Enforcement by Indenture Trustee.

     

    (a)  The
      Issuing Entity covenants that if (i) default is made in the payment of any
      interest on any Offered Note when the same becomes due and payable, and such
      default continues for a period of five days, or (ii) default is made in the
      payment of the principal of or any installment of the principal of any Offered
      Note when the same becomes due and payable, the Issuing Entity shall, upon
      demand of the Indenture Trustee, at the direction of the Holders of a majority
      of the aggregate Note Principal Balances of the Offered Notes, pay to the
      Indenture Trustee, for the benefit of the Holders of Offered Notes, the whole
      amount then due and payable on the Offered Notes for principal and interest,
      with interest at the applicable Note Rate upon the overdue principal, and in
      addition thereto such further amount as shall be sufficient to cover the costs
      and expenses of collection, including the reasonable compensation, expenses,
      disbursements and advances of the Indenture Trustee and its agents and
      counsel.

     

    (b)  In
      case
      the Issuing Entity shall fail forthwith to pay such amounts upon such demand,
      the Indenture Trustee, in its own name and as trustee of an express trust,
      subject to the provisions of Section 11.16 hereof may institute a Proceeding
      for
      the collection of the sums so due and unpaid, and may prosecute such Proceeding
      to judgment or final decree, and may enforce the same against the Issuing Entity
      or other obligor upon the Offered Notes and collect in the manner provided
      by
      law out of the property of the Issuing Entity or other obligor the Offered
      Notes, wherever situated, the monies adjudged or decreed to be
      payable.

     

    (c)  If
      an
      Event of Default occurs and is continuing, the Indenture Trustee, subject to
      the
      provisions of Section 11.16 hereof may, as more particularly provided in Section
      5.04 hereof, in its discretion, proceed to protect and enforce its rights and
      the rights of the Noteholders (, by such appropriate Proceedings, as directed
      in
      writing by Holders of a majority of the aggregate Note Principal Balances of
      the
      Offered Notes, to protect and enforce any such rights, whether for the specific
      enforcement of any covenant or agreement in this Indenture or in aid of the
      exercise of any power granted herein, or to enforce any other proper remedy
      or
      legal or equitable right vested in the Indenture Trustee by this Indenture
      or by
      law.

     

    (d)  In
      case
      there shall be pending, relative to the Issuing Entity or any other obligor
      upon
      the Offered Notes or any Person having or claiming an ownership interest in
      the
      Trust Estate, Proceedings under Title 11 of the United States Code or any other
      applicable federal or state bankruptcy, insolvency or other similar law, or
      in
      case a receiver, assignee or trustee in bankruptcy or reorganization,
      liquidator, sequestrator or similar official shall have been appointed for
      or
      taken possession of the Issuing Entity or its property or such other obligor
      or
      Person, or in case of any other comparable judicial Proceedings relative to
      the
      Issuing Entity or other obligor upon the Offered Notes, or to the creditors
      or
      property of the Issuing Entity or such other obligor, the Indenture Trustee,
      as
      directed in writing by Holders of a majority of the aggregate Note Principal
      Balances of the Offered Notes, irrespective of whether the principal of any
      Offered Notes shall then be due and payable as therein expressed or by
      declaration or otherwise and irrespective of whether the Indenture Trustee
      shall
      have made any demand pursuant to the provisions of this Section, shall be
      entitled and empowered, by intervention in such Proceedings or
      otherwise:

     

    (i)  to
      file
      and prove a claim or claims for the whole amount of principal and interest
      owing
      and unpaid in respect of the Offered Notes and to file such other papers or
      documents as may be necessary or advisable in order to have the claims of the
      Indenture Trustee (including any claim for reasonable compensation to the
      Indenture Trustee and each predecessor Indenture Trustee, and their respective
      agents, attorneys and counsel, and for reimbursement of all expenses and
      liabilities incurred, and all advances made, by the Indenture Trustee and each
      predecessor Indenture Trustee, except as a result of negligence or bad faith)
      and of the Noteholders allowed in such Proceedings;

     

    (ii)  unless
      prohibited by applicable law and regulations, to vote on behalf of the Holders
      of Notes in any election of a trustee, a standby trustee or Person performing
      similar functions in any such Proceedings;

     

    (iii)  to
      collect and receive any monies or other property payable or deliverable on
      any
      such claims and to pay all amounts received with respect to the claims of the
      Noteholders and of the Indenture Trustee on their behalf, and

     

    (iv)  to
      file
      such proofs of claim and other papers or documents as may be necessary or
      advisable in order to have the claims of the Indenture Trustee or the Holders
      of
      Notes allowed in any judicial proceedings relative to the Issuing Entity, its
      creditors and its property;

     

    and
      any
      trustee, receiver, liquidator, custodian or other similar official in any such
      Proceeding is hereby authorized by each of such Noteholders to make payments
      to
      the Indenture Trustee and, in the event that the Indenture Trustee shall consent
      to the making of payments directly to such Noteholders, to pay to the Indenture
      Trustee such amounts as shall be sufficient to cover reasonable compensation
      to
      the Indenture Trustee, each predecessor Indenture Trustee and their respective
      agents, attorneys and counsel, and all other expenses and liabilities incurred,
      and all advances made, by the Indenture Trustee and each predecessor Indenture
      Trustee.

     

    (e)  Nothing
      herein contained shall be deemed to authorize the Indenture Trustee to authorize
      or consent to or vote for or accept or adopt on behalf of any Noteholder any
      plan of reorganization, arrangement, adjustment or composition affecting the
      Notes or the rights of any Holder thereof or to authorize the Indenture Trustee
      to vote in respect of the claim of any Noteholder in any such proceeding except,
      as aforesaid, to vote for the election of a trustee in bankruptcy or similar
      Person.

     

    (f)  All
      rights of action and of asserting claims under this Indenture, or under any
      of
      the Notes, may be enforced by the Indenture Trustee without the possession
      of
      any of the Notes or the production thereof in any trial or other Proceedings
      relative thereto, and any such action or proceedings instituted by the Indenture
      Trustee shall be brought in its own name as trustee of an express trust, and
      any
      recovery of judgment, subject to the payment of the expenses, disbursements
      and
      compensation of the Indenture Trustee, each predecessor Indenture Trustee and
      their respective agents and attorneys, shall be for the ratable benefit of
      the
      Holders of the Notes, subject to Section 5.05 hereof.

     

    (g)  In
      any
      Proceedings brought by the Indenture Trustee (and also any Proceedings involving
      the interpretation of any provision of this Indenture to which the Indenture
      Trustee shall be a party), the Indenture Trustee shall be held to represent
      all
      the Holders of the Notes, and it shall not be necessary to make any Noteholder
      a
      party to any such Proceedings.

     

    Section
      5.04  Remedies;
      Priorities.
      (a)
      If an
      Event of Default shall have occurred and be continuing and if an acceleration
      has been declared and not rescinded pursuant to Section 5.02 hereof, the
      Indenture Trustee subject to the provisions of Section 11.16 hereof may, and
      shall, at the written direction of the Holders of a majority of the aggregate
      Note Principal Balances of the Offered Notes, do one or more of the following
      (subject to Section 5.05 hereof):

     

    (i)  institute
      Proceedings in its own name and as trustee of an express trust for the
      collection of all amounts then payable on the Notes or under this Indenture
      with
      respect thereto, whether by declaration or otherwise, enforce any judgment
      obtained and collect from the Issuing Entity and any other obligor upon such
      Notes monies adjudged due;

     

    (ii)  institute
      Proceedings from time to time for the complete or partial foreclosure of this
      Indenture with respect to the Trust Estate;

     

    (iii)  exercise
      any remedies of a secured party under the UCC and take any other appropriate
      action to protect and enforce the rights and remedies of the Indenture Trustee
      and the Holders of the Notes; and

     

    (iv)  sell
      the
      Trust Estate or any portion thereof or rights or interest therein, at one or
      more public or private sales called and conducted in any manner permitted by
      law;

     

    provided,
      however,
      that
      the Indenture Trustee may not sell or otherwise liquidate the Trust Estate
      following an Event of Default, unless (A) the Indenture Trustee obtains the
      consent of the Holders of 100% of the aggregate Note Principal Balance of the
      Offered Notes, (B) the proceeds of such sale or liquidation distributable to
      the
      Holders of the Offered Notes are sufficient to discharge in full all amounts
      then due and unpaid upon such Notes for principal and interest and amounts
      due
      and unpaid under the Swap Contract or (C) the Indenture Trustee determines
      that
      the Mortgage Loans will not continue to provide sufficient funds for the payment
      of principal of and interest on the applicable Offered Notes as they would
      have
      become due if the Offered Notes had not been declared due and payable, and
      the
      Indenture Trustee obtains the consent of the Holders of 66 2/3% of the aggregate
      Note Principal Balance of the Offered Notes. In determining such sufficiency
      or
      insufficiency with respect to clause (B) and (C), the Indenture Trustee may,
      but
      need not, obtain and rely upon an opinion (obtained at the expense of the Trust)
      of an Independent investment banking or accounting firm of national reputation
      as to the feasibility of such proposed action and as to the sufficiency of
      the
      Trust Estate for such purpose. Notwithstanding the foregoing, so long as an
      Event of Default under the Servicing Agreement has not occurred, any Sale of
      the
      Trust Estate shall be made subject to the continued servicing of the Mortgage
      Loans by the Master Servicer as provided in the Servicing
      Agreement.

     

    (b)  If
      the
      Indenture Trustee collects any money or property pursuant to this Article V,
      it
      shall pay out the money or property in the following order:

     

    FIRST:
      to
      the Indenture Trustee for amounts due under Section 6.07 hereof or the Sale
      and
      Servicing Agreement and to the Master Servicer for amounts due under the Sale
      and Servicing Agreement;

     

    SECOND:
      to the Noteholders for amounts due and unpaid on the Notes with respect to
      interest and principal, first, to the Class A Noteholders on a pro rata basis,
      and second, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4,
      Class M-5, Class M-6, Class M-7, Class M-8 and Class B-1 Noteholders, in that
      order, according to the amounts due and payable on the Notes for interest and
      principal;

     

    THIRD:
      first, sequentially, to the Class A-1 Noteholders and Class A-2 Noteholders,
      in
      that order, and sequentially, to the Class M-1, Class M-2, Class M-3, Class
      M-4,
      Class M-5, Class M-6, Class M-7, Class M-8 and Class B-1 Noteholders, in that
      order, the amount of any related Unpaid Realized Loss Amounts not previously
      paid;

     

    FOURTH:
      first, to the Class A-1 Noteholders and Class A-2 Noteholders, pro rata, and
      second, sequentially, to the Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5, Class M-6, Class M-7, Class M-8 and Class B-1 Noteholders, in that order,
      the amount of any related Net Rate Carryover Amounts not previously
      paid;

     

    FIFTH:
      the payment of the remainder, if any, to the Class C Notes; and

     

    SIXTH:
      the payment of the remainder, if any, to the holder of the Owner Trust
      Certificates on behalf of the Issuing Entity or to any other person legally
      entitled thereto.

     

    The
      Indenture Trustee may fix a record date and Payment Date for any payment to
      Noteholders pursuant to this Section 5.04. At least 15 days before such record
      date, the Indenture Trustee shall mail to each Noteholder a notice that states
      the record date, the Payment Date and the amount to be paid.

     

    Section
      5.05  Optional
      Preservation of the Trust Estate.
      If the
      Notes have been declared to be due and payable under Section 5.02 following
      an
      Event of Default and such declaration and its consequences have not been
      rescinded and annulled, the Indenture Trustee may elect to take and maintain
      possession of the Trust Estate. It is the desire of the parties hereto and
      the
      Noteholders that there be at all times sufficient funds for the payment of
      principal of and interest on the Offered Notes and other obligations of the
      Issuing Entity and the Indenture Trustee shall take such desire into account
      when determining whether or not to take and maintain possession of the Trust
      Estate. In determining whether to take and maintain possession of the Trust
      Estate, the Indenture Trustee may, but need not, obtain and rely upon an opinion
      of an Independent investment banking or accounting firm of national reputation
      as to the feasibility of such proposed action and as to the sufficiency of
      the
      Trust Estate for such purpose.

     

    Section
      5.06  Limitation
      of Suits.
      No
      Holder of any Note shall have any right to institute any Proceeding, judicial
      or
      otherwise, with respect to this Indenture, or for the appointment of a receiver
      or trustee, or for any other remedy hereunder, unless and subject to the
      provisions of Section 11.16 hereof

     

    (i)  such
      Holder has previously given written notice to the Indenture Trustee of a
      continuing Event of Default;

     

    (ii)  the
      Holders of not less than 25% of the aggregate Note Principal Balances of the
      Offered Notes have made a written request to the Indenture Trustee to institute
      such Proceeding in respect of such Event of Default in its own name as Indenture
      Trustee hereunder;

     

    (iii)  such
      Holder or Holders have offered to the Indenture Trustee reasonable indemnity
      against the costs, expenses and liabilities to be incurred in complying with
      such request;

     

    (iv)  the
      Indenture Trustee for 60 days after its receipt of such notice of request and
      offer of indemnity has failed to institute such Proceedings; and

     

    (v)  no
      direction inconsistent with such written request has been given to the Indenture
      Trustee during such 60-day period by the Holders of a majority of the Note
      Principal Balances of the Offered Notes.

     

    It
      is
      understood and intended that no one or more Holders of Notes shall have any
      right in any manner whatever by virtue of, or by availing of, any provision
      of
      this Indenture to affect, disturb or prejudice the rights of any other Holders
      of Notes or to obtain or to seek to obtain priority or preference over any
      other
      Holders or to enforce any right under this Indenture, except in the manner
      herein provided. No Holder of any Note shall have any right to institute any
      Proceeding, judicial or otherwise, with respect to a TMP Trigger Event, with
      respect to the meeting of the conditions to a REMIC Conversion or with respect
      to a REMIC Conversion.

     

    Subject
      to the last paragraph of Section 5.11 herein, in the event the Indenture Trustee
      shall receive conflicting or inconsistent requests and indemnity from two or
      more groups of Holders of Notes, each representing less than a majority of
      the
      Note Principal Balances of the Offered Notes, the Indenture Trustee in its
      sole
      discretion may determine what action, if any, shall be taken, notwithstanding
      any other provisions of this Indenture.

     

    Section
      5.07  Unconditional
      Rights of Noteholders To Receive Principal and Interest.
      Notwithstanding any other provisions in this Indenture, the Holder of any Note
      shall have the right, which is absolute and unconditional, to receive payment
      of
      the principal of and interest, if any, on such Note on or after the respective
      due dates thereof expressed in such Note or in this Indenture and to institute
      suit for the enforcement of any such payment, and such right shall not be
      impaired without the consent of such Holder. Notwithstanding the foregoing,
      in
      the event of a REMIC Conversion, Holders of Offered Notes shall receive, in
      a
      mandatory exchange for such Notes, REMIC Class A Notes and REMIC Class M Notes,
      whose principal and interest entitlement shall not be determined by this
      Indenture but rather by the provisions of an indenture and pooling and servicing
      agreement, each as set forth in Exhibits L
      and
      M to
      the Trust Agreement, respectively, governing the cashflows of the REMIC Class
      A
      Notes and REMIC Class M Notes.
      In
      addition, in the event of a REMIC Conversion, Holders of the Privately Offered
      Notes shall receive, in a mandatory exchange for such Notes, REMIC Notes, whose
      principal and interest entitlement shall not be determined by this Indenture
      but
      rather by the provisions of Exhibits L and M to the Trust Agreement governing
      the cashflows of the REMIC Notes.

     

    Section
      5.08  Restoration
      of Rights and Remedies.
      If the
      Indenture Trustee or any Noteholder has instituted any Proceeding to enforce
      any
      right or remedy under this Indenture and such Proceeding has been discontinued
      or abandoned for any reason or has been determined adversely to the Indenture
      Trustee or to such Noteholder, then and in every such case the Issuing Entity,
      the Indenture Trustee and the Noteholders shall, subject to any determination
      in
      such Proceeding, be restored severally and respectively to their former
      positions hereunder, and thereafter all rights and remedies of the Indenture
      Trustee and the Noteholders shall continue as though no such Proceeding had
      been
      instituted.

     

    Section
      5.09  Rights
      and Remedies Cumulative.
      No
      right or remedy herein conferred upon or reserved to the Indenture Trustee
      or to
      the Noteholders is intended to be exclusive of any other right or remedy, and
      every right and remedy shall, to the extent permitted by law, be cumulative
      and
      in addition to every other right and remedy given hereunder or now or hereafter
      existing at law or in equity or otherwise. The assertion or employment of any
      right or remedy hereunder, or otherwise, shall not prevent the concurrent
      assertion or employment of any other appropriate right or remedy.

     

    Section
      5.10  Delay
      or Omission Not a Waiver.
      No
      delay or omission of the Indenture Trustee or any Holder of any Note to exercise
      any right or remedy accruing upon any Event of Default shall impair any such
      right or remedy or constitute a waiver of any such Event of Default or an
      acquiescence therein. Every right and remedy given by this Article V or by
      law
      to the Indenture Trustee or to the Noteholders may be exercised from time to
      time, and as often as may be deemed expedient, by the Indenture Trustee or
      by
      the Noteholders, as the case may be.

     

    Section
      5.11  Control
      By Noteholders.
      The
      Holders of a majority of the aggregate Note Principal Balances of Offered Notes
      shall have the right to direct the time, method and place of conducting any
      Proceeding for any remedy available to the Indenture Trustee with respect to
      the
      Offered Notes or exercising any trust or power conferred on the Indenture
      Trustee; provided that:

     

    (i)  such
      direction shall not be in conflict with any rule of law or with this
      Indenture;

     

    (ii)  any
      direction to the Indenture Trustee to sell or liquidate the Trust Estate shall
      be by Holders of Notes representing not less than 100% of the Note Principal
      Balances of the Offered Notes; and

     

    (iii)  the
      Indenture Trustee may take any other action deemed proper by the Indenture
      Trustee that is not inconsistent with such direction of the Holders of Notes
      representing a majority of the Note Principal Balances of the Offered
      Notes.

     

    Notwithstanding
      the rights of Noteholders set forth in this Section 5.11 the Indenture Trustee
      need not take any action that it determines might involve it in
      liability.

     

    Section
      5.12  Waiver
      of Past Defaults.
      Prior
      to the declaration of the acceleration of the maturity of the Notes as provided
      in Section 5.02 hereof, the Holders of Notes representing not less than a
      majority of the aggregate Note Principal Balance of the Offered Notes may waive
      any past Event of Default and its consequences except an Event of Default (a)
      with respect to payment of principal of or interest on any of the Offered Notes
      or (b) in respect of a covenant or provision hereof which cannot be modified
      or
      amended without the consent of the Holder of each Note. In the case of any
      such
      waiver, the Issuing Entity, the Indenture Trustee and the Holders of the Notes
      shall be restored to their former positions and rights hereunder, respectively,
      but no such waiver shall extend to any subsequent or other Event of Default
      or
      impair any right consequent thereto.

     

    Upon
      any
      such waiver, any Event of Default arising therefrom shall be deemed to have
      been
      cured and not to have occurred, for every purpose of this Indenture; but no
      such
      waiver shall extend to any subsequent or other Event of Default or impair any
      right consequent thereto.

     

    Section
      5.13  Undertaking
      for Costs.
      All
      parties to this Indenture agree, and each Holder of any Note and each Beneficial
      Owner of any interest therein by such Holder’s or Beneficial Owner’s acceptance
      thereof shall be deemed to have agreed, that any court may in its discretion
      require, in any suit for the enforcement of any right or remedy under this
      Indenture, or in any suit against the Indenture Trustee for any action taken,
      suffered or omitted by it as Indenture Trustee, the filing by any party litigant
      in such suit of an undertaking to pay the costs of such suit, and that such
      court may in its discretion assess reasonable costs, including reasonable
      attorneys’ fees, against any party litigant in such suit, having due regard to
      the merits and good faith of the claims or defenses made by such party litigant;
      but the provisions of this Section 5.13 shall not apply to (a) any suit
      instituted by the Indenture Trustee, (b) any suit instituted by any Noteholder,
      or group of Noteholders, in each case holding in the aggregate more than 10%
      of
      the Note Principal Balances of the Offered Notes or (c) any suit instituted
      by
      any Noteholder for the enforcement of the payment of principal of or interest
      on
      any Note on or after the respective due dates expressed in such Note and in
      this
      Indenture.

     

    Section
      5.14  Waiver
      of Stay or Extension Laws.
      The
      Issuing Entity covenants (to the extent that it may lawfully do so) that it
      will
      not at any time insist upon, or plead or in any manner whatsoever, claim or
      take
      the benefit or advantage of, any stay or extension law wherever enacted, now
      or
      at any time hereafter in force, that may affect the covenants or the performance
      of this Indenture; and the Issuing Entity (to the extent that it may lawfully
      do
      so) hereby expressly waives all benefit or advantage of any such law, and
      covenants that it shall not hinder, delay or impede the execution of any power
      herein granted to the Indenture Trustee, but will suffer and permit the
      execution of every such power as though no such law had been
      enacted.

     

    Section
      5.15  Sale
      of Trust Estate.
      (a) The
      power to effect any sale or other disposition (a “Sale”) of any portion of the
      Trust Estate pursuant to Section 5.04 hereof is expressly subject to the
      provisions of Section 5.05 hereof and this Section 5.15. The power to effect
      any
      such Sale shall not be exhausted by any one or more Sales as to any portion
      of
      the Trust Estate remaining unsold, but shall continue unimpaired until the
      entire Trust Estate shall have been sold or all amounts payable on the Notes
      and
      under this Indenture shall have been paid. The Indenture Trustee may from time
      to time postpone any public Sale by public announcement made at the time and
      place of such Sale. The Indenture Trustee hereby expressly waives its right
      to
      any amount fixed by law as compensation for any Sale.

     

    (a)   
        The
      Indenture Trustee shall not in any private Sale sell the Trust Estate, or any
      portion thereof, unless

     

    (1) the
      Holders of all Notes consent to or direct the Indenture Trustee to make, such
      Sale, or

     

    (2) the
      proceeds of such Sale would be not less than the entire amount which would
      be
      payable to the Noteholders under the Notes, in full payment thereof in
      accordance with Section 5.02 hereof, on the Payment Date next succeeding the
      date of such Sale,

     

    (3) the
      Indenture Trustee determines that the conditions for retention of the Trust
      Estate set forth in Section 5.05 hereof cannot be satisfied (in making any
      such
      determination, the Indenture Trustee may rely upon an opinion of an Independent
      investment banking firm obtained and delivered as provided in Section 5.05
      hereof, the cost for which the Indenture Trustee shall be entitled to be
      reimbursed pursuant to Section 6.07 hereof), the Holders of Notes representing
      at least 100% of the Note Principal Balances of the Offered Notes consent to
      such Sale; or

     

    (3) such
      Sale
      occurs following the occurrence of a TMP Trigger Event in accordance with the
      terms of this Indenture and the Trust Agreement.

     

    The
      purchase by the Indenture Trustee of all or any portion of the Trust Estate
      at a
      private Sale shall not be deemed a Sale or other disposition thereof for
      purposes of this Section 5.15(b).

     

    (b) 
        Unless
      the Holders representing at least 66-2/3% of the Note Principal Balances of
      the
      Offered Notes have otherwise consented or directed the Indenture Trustee, at
      any
      public Sale of all or any portion of the Trust Estate at which a minimum bid
      equal to or greater than the amount described in paragraph (2) of subsection
      (b)
      of this Section 5.15 has not been established by the Indenture Trustee and
      no
      Person bids an amount equal to or greater than such amount, the Indenture
      Trustee, as trustee for the benefit of the Holders of the Offered Notes, shall
      bid an amount at least $1.00 more than the highest other bid.

     

    (c) 
        In
      connection with a Sale of all or any portion of the Trust Estate,

     

    (1) any
      Holder or Holders of Notes may bid for and purchase the property offered for
      sale, and upon compliance with the terms of sale may hold, retain and possess
      and dispose of such property, without further accountability, and may, in paying
      the purchase money therefor, deliver any Notes or claims for interest thereon
      in
      lieu of cash up to the amount which shall, upon payment of the net proceeds
      of
      such sale, be payable thereon, and such Notes, in case the amounts so payable
      thereon shall be less than the amount due thereon, shall be returned to the
      Holders thereof after being appropriately stamped to show such partial
      payment;

     

    (2) the
      Indenture Trustee, may bid for and acquire the property offered for Sale in
      connection with any Sale thereof, and, subject to any requirements of, and
      to
      the extent permitted by, applicable law in connection therewith, may purchase
      all or any portion of the Trust Estate in a private sale, and, in lieu of paying
      cash therefor, may make settlement for the purchase price by crediting the
      gross
      Sale price against the sum of (A) the amount which would be distributable to
      the
      Holders of the Notes and Holders of Certificates on the Payment Date next
      succeeding the date of such Sale and (B) the expenses of the Sale and of any
      Proceedings in connection therewith which are reimbursable to it, without being
      required to produce the Notes in order to complete any such Sale or in order
      for
      the net Sale price to be credited against such Notes, and any property so
      acquired by the Indenture Trustee shall be held and dealt with by it in
      accordance with the provisions of this Indenture;

     

    (3) the
      Indenture Trustee shall execute and deliver an appropriate instrument of
      conveyance, prepared by the Issuing Entity and satisfactory to the Indenture
      Trustee, transferring its interest in any portion of the Trust Estate in
      connection with a Sale thereof;

     

    (4) the
      Indenture Trustee is hereby irrevocably appointed the agent and attorney-in-fact
      of the Issuing Entity to transfer and convey its interest in any portion of
      the
      Trust Estate in connection with a Sale thereof, and to take all action necessary
      to effect such Sale; and

     

    (5) no
      purchaser or transferee at such a Sale shall be bound to ascertain the Indenture
      Trustee’s authority, inquire into the satisfaction of any conditions precedent
      or see to the application of any monies.

     

    Section
      5.16  Action
      on Notes.
      The
      Indenture Trustee’s right to seek and recover judgment on the Notes or under
      this Indenture shall not be affected by the seeking, obtaining or application
      of
      any other relief under or with respect to this Indenture. Neither the lien
      of
      this Indenture nor any rights or remedies of the Indenture Trustee or the
      Noteholders shall be impaired by the recovery of any judgment by the Indenture
      Trustee against the Issuing Entity or by the levy of any execution under such
      judgment upon any portion of the Trust Estate or upon any of the assets of
      the
      Issuing Entity. Any money or property collected by the Indenture Trustee shall
      be applied in accordance with Section 5.04(b) hereof.

     

    Section
      5.17  Performance
      and Enforcement of Certain Obligations.
      (a)
      Promptly following a request from the Indenture Trustee to do so, the Issuing
      Entity in its capacity as holder of the Mortgage Loans, shall take all such
      lawful action as the Indenture Trustee may request to cause the Issuing Entity
      to compel or secure the performance and observance by the Seller and the Master
      Servicer, as applicable, of each of their obligations to the Issuing Entity
      under or in connection with the Servicing Agreement, and to exercise any and
      all
      rights, remedies, powers and privileges lawfully available to the Issuing Entity
      under or in connection with the Servicing Agreement to the extent and in the
      manner directed by the Indenture Trustee, as pledgee of the Mortgage Loans,
      including the transmission of notices of default on the part of the Seller
      or
      the Master Servicer thereunder and the institution of legal or administrative
      actions or proceedings to compel or secure performance by the Seller or the
      Master Servicer of each of their obligations under the Sale and the Servicing
      Agreement.

     

    (a)  The
      Indenture Trustee, as pledgee of the Mortgage Loans, may, and at the direction
      (which direction shall be in writing or by telephone (confirmed in writing
      promptly thereafter)) of the Holders of 66-2/3% of the Note Principal Balances
      of the Offered Notes, shall exercise all rights, remedies, powers, privileges
      and claims of the Issuing Entity against the Seller or the Master Servicer
      under
      or in connection with the Servicing Agreement, including the right or power
      to
      take any action to compel or secure performance or observance by the Seller
      or
      the Master Servicer, as the case may be, of each of their obligations to the
      Issuing Entity thereunder and to give any consent, request, notice, direction,
      approval, extension or waiver under the Servicing Agreement, as the case may
      be,
      and any right of the Issuing Entity to take such action shall not be
      suspended.

     

    ARTICLE
      VI

     

    THE
      INDENTURE TRUSTEE

     

    Section
      6.01  Duties
      of Indenture Trustee.
      (a)
      If an
      Event of Default has occurred and is continuing, the Indenture Trustee shall
      exercise the rights and powers vested in it by this Indenture and use the same
      degree of care and skill in their exercise as a prudent person would exercise
      or
      use under the circumstances in the conduct of such person’s own
      affairs.

     

    (b)  Except
      during the continuance of an Event of Default:

     

    (i)  the
      Indenture Trustee undertakes to perform such duties and only such duties as
      are
      specifically set forth in this Indenture and the other Basic Documents to which
      it is a party and no implied covenants or obligations shall be read into this
      Indenture and the other Basic Documents against the Indenture Trustee;
      and

     

    (ii)  in
      the
      absence of bad faith on its part, the Indenture Trustee may conclusively rely,
      as to the truth of the statements and the correctness of the opinions expressed
      therein, upon certificates or opinions furnished to the Indenture Trustee and
      conforming to the requirements of this Indenture; however, the Indenture Trustee
      shall examine the certificates and opinions to determine whether or not they
      conform to the requirements of this Indenture.

     

    (c)  The
      Indenture Trustee may not be relieved from liability for its own negligent
      action, its own negligent failure to act or its own willful misconduct, except
      that:

     

    (i)  this
      paragraph does not limit the effect of paragraph (b) of this Section
      6.01;

     

    (ii)  the
      Indenture Trustee shall not be liable for any error of judgment made in good
      faith by a Responsible Officer unless it is proved that the Indenture Trustee
      was negligent in ascertaining the pertinent facts; and

     

    (iii)  the
      Indenture Trustee shall not be liable with respect to any action it takes or
      omits to take in good faith in accordance with a direction received by it from
      Noteholders or from the Issuing Entity, which they are entitled to give under
      the Basic Documents.

     

    (d)  The
      Indenture Trustee shall not be liable for interest on any money received by
      it
      except as the Indenture Trustee may agree in writing with the Issuing
      Entity.

     

    (e)  Money
      held in trust by the Indenture Trustee need not be segregated from other trust
      funds except to the extent required by law or the terms of this Indenture,
      the
      Sale and Servicing Agreement or the Trust Agreement.

     

    (f)  No
      provision of this Indenture shall require the Indenture Trustee to expend or
      risk its own funds or otherwise incur financial liability in the performance
      of
      any of its duties hereunder or in the exercise of any of its rights or powers,
      if it shall have reasonable grounds to believe that repayment of such funds
      or
      adequate indemnity against such risk or liability is not reasonably assured
      to
      it.

     

    (g)  Every
      provision of this Indenture relating to the conduct or affecting the liability
      of or affording protection to the Indenture Trustee shall be subject to the
      provisions of this Section.

     

    (h)  The
      Indenture Trustee shall act in accordance with Sections 6.03 and 6.04 of the
      Servicing Agreement and shall act as successor to the Master Servicer or appoint
      a successor Master Servicer in accordance with Section 6.02 of the Servicing
      Agreement.

     

    Section
      6.02  Rights
      of Indenture Trustee.
      (a) The
      Indenture Trustee may rely on any document believed by it to be genuine and
      to
      have been signed or presented by the proper person. The Indenture Trustee need
      not investigate any fact or matter stated in the document.

     

    (a)  Before
      the Indenture Trustee acts or refrains from acting, it may require an Officer’s
      Certificate or an Opinion of Counsel. The Indenture Trustee shall not be liable
      for any action it takes or omits to take in good faith in reliance on an
      Officer’s Certificate or Opinion of Counsel.

     

    (b)  The
      Indenture Trustee may execute any of the trusts or powers hereunder or perform
      any duties hereunder either directly or by or through agents or attorneys or
      a
      custodian or nominee.

     

    (c)  The
      Indenture Trustee shall not be liable for any action it takes or omits to take
      in good faith which it believes to be authorized or within its rights or powers;
      provided,
      however,
      that
      the Indenture Trustee’s conduct does not constitute willful misconduct,
      negligence or bad faith.

     

    (d)  The
      Indenture Trustee may consult with counsel, and the advice or Opinion of Counsel
      with respect to legal matters relating to this Indenture and the Notes shall
      be
      full and complete authorization and protection from liability in respect to
      any
      action taken, omitted or suffered by it hereunder in good faith and in
      accordance with the advice or opinion of such counsel.

     

    (e)  For
      the
      limited purpose of effecting any action to be undertaken by the Indenture
      Trustee, but not specifically as a duty of the Indenture Trustee in the
      Indenture, the Indenture Trustee may execute any of the trusts or powers
      hereunder or perform any duties hereunder, either directly or by or through
      agents, attorneys, custodians or nominees appointed with due care, and shall
      not
      be responsible for any willful misconduct or negligence on the part of any
      agent, attorney, custodian or nominee so appointed.

     

    (f)  The
      Indenture Trustee or its Affiliates are permitted to receive additional
      compensation that could be deemed to be in the Indenture Trustee’s economic
      self-interest for (i) serving as investment adviser, administrator, shareholder
      servicing agent, custodian or sub-custodian with respect to certain of the
      Permitted Investments, (ii) using Affiliates to effect transactions in certain
      Permitted Investments and (iii) effecting transactions in certain Permitted
      Investments. Such compensation shall not be considered an amount that is
      reimbursable or payable to the Indenture Trustee (i) as part of the Indenture
      Trustee Fee or (ii) pursuant to Sections 3.05(d), 5.04(b) or 6.07
      hereunder.

     

    Section
      6.03  Individual
      Rights of Indenture Trustee.
      The
      Indenture Trustee in its individual or any other capacity may become the owner
      or pledgee of Notes and may otherwise deal with the Issuing Entity or its
      Affiliates with the same rights it would have if it were not Indenture Trustee..
      Any Note Registrar, co-registrar or co-paying agent may do the same with like
      rights. However, the Indenture Trustee must comply with Sections 6.11 and 6.12
      hereof.

     

    Section
      6.04  Indenture
      Trustee’s Disclaimer.
      The
      Indenture Trustee shall not be responsible for and makes no representation
      as to
      the validity or adequacy of this Indenture, other Basic Documents or the Notes,
      it shall not be accountable for the Issuing Entity’s use of the proceeds from
      the Notes, and it shall not be responsible for any statement of the Issuing
      Entity in the Indenture or in any document issued in connection with the sale
      of
      the Notes or in the Notes other than the Indenture Trustee’s certificate of
      authentication.

     

    Section
      6.05  Notice
      of Event of Default.
      Subject
      to Section 5.01, the Indenture Trustee shall promptly mail to each Noteholder
      notice of the Event of Default after it is actually known to a Responsible
      Officer of the Indenture Trustee, unless such Event of Default shall have been
      waived or cured. Except in the case of an Event of Default in payment of
      principal of or interest on any Offered Note, the Indenture Trustee may withhold
      the notice if and so long as a committee of its Responsible Officers in good
      faith determines that withholding the notice is in the interests of
      Noteholders.

     

    Section
      6.06  Reports
      by Indenture Trustee to Holders and Tax Administration.
      The
      Indenture Trustee shall deliver to each Noteholder such information as may
      be
      required to enable such holder to prepare its federal and state income tax
      returns.

     

    The
      Indenture Trustee shall prepare and file (or cause to be prepared and filed),
      on
      behalf of the Owner Trustee, all tax returns (if any) and information reports,
      tax elections and such annual or other reports of the Issuing Entity as are
      necessary for preparation of tax returns and information reports as provided
      in
      Section 5.03 of the Trust Agreement, including without limitation Form
      1099
      and
      shall file such information returns with the Internal Revenue Service with
      respect to payments or accruals of interest on the Notes as are required to
      be
      filed under the Code or applicable Treasury Regulations.
      All tax
      returns and information reports shall be signed by the Owner Trustee as provided
      in Section 5.03 of the Trust Agreement.

     

    Section
      6.07  Compensation.
       The
      Indenture Trustee shall (a) concurrently and in accordance with Section 3.08
      of
      the Sale and Servicing Agreement (i) on each Payment Date, withdraw the
      Indenture Trustee Fee from the Payment Account for such Payment Date and (ii)
      on
      each anniversary of the first Payment Date, commencing in July 2006, withdraw
      the Owner Trustee’s Fee from the Payment Account and distribute such fee to the
      Owner Trustee and (b) distribute all remaining amounts on deposit in the Payment
      Account to the Noteholders in respect of the Notes and to such other persons
      in
      the order of priority set forth in Section 4.02 hereof. In
      addition, the Indenture Trustee will each be entitled to recover from the
      Payment Account pursuant to Section 3.08(a) of the Sale and Servicing Agreement
      all reasonable out-of-pocket expenses, disbursements and advances and the
      expenses of the Indenture Trustee in connection with any breach of this
      Agreement or any claim or legal action (including any pending or threatened
      claim or legal action) incurred or made by the Indenture Trustee in the
      administration of the trusts hereunder (including the reasonable compensation,
      expenses and disbursements of its counsel) except any such expense, disbursement
      or advance as may arise from its willful misfeasance, bad faith or negligence
      or
      which is the responsibility of the Noteholders as provided herein. Such
      compensation and reimbursement obligation shall not be limited by any provision
      of law in regard to the compensation of a trustee of an express trust.
      Additionally, the Indenture Trustee and any director, officer, employee or
      agent
      of the Indenture Trustee shall be indemnified by the Trust and held harmless
      against any loss, liability or expense (including reasonable attorney’s fees and
      expenses) incurred in the administration of this Indenture (other than its
      ordinary out of pocket expenses incurred hereunder) or in connection with any
      claim or legal action relating to (a) the Basic Documents or (b) the Notes,
      other than any loss, liability or expense incurred by reason of its negligence
      or intentional misconduct, or which is the responsibility of the Noteholders
      as
      provided herein. Such indemnity shall survive the termination of this Indenture
      or the resignation or removal of the Indenture Trustee hereunder.

     

    The
      Issuing Entity’s payment obligations to the Indenture Trustee pursuant to this
      Section 6.07 shall survive the discharge of this Indenture and the termination
      or resignation of the Indenture Trustee. When the Indenture Trustee incurs
      expenses after the occurrence of an Event of Default with respect to the Issuing
      Entity, the expenses are intended to constitute expenses of administration
      under
      Title 11 of the United States Code or any other applicable federal or state
      bankruptcy, insolvency or similar law.

     

    Section
      6.08  Replacement
      of Indenture Trustee.
      No
      resignation or removal of the Indenture Trustee and no appointment of a
      successor Indenture Trustee shall become effective until the acceptance of
      appointment by the successor Indenture Trustee pursuant to this Section 6.08.
      The Indenture Trustee may resign at any time by so notifying the Issuing Entity.
      As a condition to the effectiveness of any such resignation, at least 15
      calendar days prior to the effective date of such resignation, the Indenture
      Trustee shall provide (x) written notice to the Depositor of any successor
      pursuant to this Section and (y) in writing and in form and substance reasonably
      satisfactory to the Depositor, all information reasonably requested by the
      Depositor in order to comply with its reporting obligation under Item 6.02
      of
      Form 8-K with respect to the resignation of the Indenture Trustee. Holders
      of a
      majority of Note Principal Balances of the Offered Notes may remove the
      Indenture Trustee by so notifying the Indenture Trustee and may appoint a
      successor Indenture Trustee. The Issuing Entity shall, remove the Indenture
      Trustee if:

     

    
      	
              (i)  (i)

            	
              (ii)  the
                Indenture Trustee fails to comply with Section 6.11
                hereof;

            
	
              (iii)  (ii)

            	
              (iv)  the
                Indenture Trustee is adjudged a bankrupt or insolvent;

            
	
              (v)  (iii)

            	
              (vi)  a
                receiver or other public officer takes charge of the Indenture Trustee
                or
                its property; or

            
	
              (vii)  (iv)

            	
              (viii)  the
                Indenture Trustee otherwise becomes incapable of
                acting.

            

    

     

    If
      the
      Indenture Trustee fails to fulfill its obligations under this Section 6.08
      with
      respect to notice to the Depositor or Article XI of the Sale and Servicing
      Agreement, and such failure continues for the lesser of 10 calendar days or
      such
      period in which the applicable Exchange Act Report can be filed timely (without
      taking into account any extensions), the Depositor may terminate the Indenture
      Trustee. If the Indenture Trustee resigns or is removed or if a vacancy exists
      in the office of the Indenture Trustee for any reason (the Indenture Trustee
      in
      such event being referred to herein as the retiring Indenture Trustee), the
      Issuing Entity shall, promptly appoint a successor Indenture Trustee and shall
      provide written notice to the Depositor of any successor pursuant to this
      Section..

     

    A
      successor Indenture Trustee shall deliver a written acceptance of its
      appointment to the retiring Indenture Trustee and to the Issuing Entity and
      shall provide to the Depositor, in writing and in form and substance reasonably
      satisfactory to the Depositor, all information reasonably requested by the
      Depositor in order to comply with its reporting obligation under Item 6.02
      of
      Form 8-K with respect to the resignation of the Indenture Trustee. Thereupon,
      the resignation or removal of the retiring Indenture Trustee shall become
      effective, and the successor Indenture Trustee shall have all the rights, powers
      and duties of the Indenture Trustee under this Indenture. The successor
      Indenture Trustee shall mail a notice of its succession to Noteholders. The
      retiring Indenture Trustee shall promptly transfer all property held by it
      as
      Indenture Trustee to the successor Indenture Trustee.

     

    If
      a
      successor Indenture Trustee does not take office within 60 days after the
      retiring Indenture Trustee resigns or is removed, the retiring Indenture
      Trustee, the Issuing Entity or the Holders of a majority of Note Principal
      Balances of the Offered Notes may petition any court of competent jurisdiction
      for the appointment of a successor Indenture Trustee.

     

    Notwithstanding
      the replacement of the Indenture Trustee pursuant to this Section, the Issuing
      Entity’s obligations under Section 6.07 shall continue for the benefit of
      the retiring Indenture Trustee.

     

    Section
      6.09  Successor
      Indenture Trustee by Merger.
      If the
      Indenture Trustee consolidates with, merges or converts into, or transfers
      all
      or substantially all of its corporate trust business or assets to, another
      corporation or banking association, the resulting, surviving or transferee
      corporation, without any further act, shall be the successor Indenture Trustee;
      provided, that such corporation or banking association shall be otherwise
      qualified and eligible under Section 6.11 hereof. The Indenture Trustee shall
      provide the Rating Agencies with prior written notice of any such transaction.
      The Indenture Trustee shall provide each Rating Agency prior written notice
      of
      any such transaction. As a condition to the effectiveness of any merger or
      consolidation, at least 15 calendar days prior to the effective date of any
      merger or consolidation of the Indenture Trustee, the Indenture Trustee shall
      provide (x) written notice to the Depositor and the Master Servicer of any
      successor pursuant to this Section and (y) in writing and in form and substance
      reasonably satisfactory to the Depositor, all information reasonably requested
      by the Depositor in order to comply with its reporting obligation under Item
      6.02 of Form 8-K with respect to a successor Indenture Trustee.

     

    If
      at the
      time such successor or successors by merger, conversion or consolidation to
      the
      Indenture Trustee shall succeed to the trusts created by this Indenture and
      any
      of the Notes shall have been authenticated but not delivered, any such successor
      to the Indenture Trustee may adopt the certificate of authentication of any
      predecessor trustee and deliver such Notes so authenticated; and if at that
      time
      any of the Notes shall not have been authenticated, any successor to the
      Indenture Trustee may authenticate such Notes either in the name of any
      predecessor hereunder or in the name of the successor to the Indenture Trustee;
      and in all such cases such certificates shall have the full force which it
      is in
      the Notes or in this Indenture provided that the certificate of the Indenture
      Trustee shall have.

     

    In
      addition, if the Swap Contract is still outstanding, the Person appointed as
      successor indenture trustee shall execute, acknowledge and deliver to the
      predecessor trustee, CHL and the Master Servicer an instrument accepting the
      appointment as successor Swap Contract Administrator under the Swap Contract
      Administration Agreement.

     

    Section
      6.10  Appointment
      of Co-Indenture Trustee or Separate Indenture Trustee.
      (a)
      Notwithstanding any other provisions of this Indenture, at any time, for the
      purpose of meeting any legal requirement of any jurisdiction in which any part
      of the Trust Estate may at the time be located, the Indenture Trustee shall
      have
      the power and may execute and deliver all instruments to appoint one or more
      Persons to act as a co-trustee or co-trustees, or separate trustee or separate
      trustees, of all or any part of the Trust Estate, and to vest in such Person
      or
      Persons, in such capacity and for the benefit of the Noteholders, such title
      to
      the Trust Estate, or any part hereof, and, subject to the other provisions
      of
      this Section, such powers, duties, obligations, rights and trusts as the
      Indenture Trustee may consider necessary or desirable. No co-trustee or separate
      trustee hereunder shall be required to meet the terms of eligibility as a
      successor trustee under Section 6.11 hereof.

     

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

     

    (i)  all
      rights, powers, duties and obligations conferred or imposed upon the Indenture
      Trustee shall be conferred or imposed upon and exercised or performed by the
      Indenture 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 Indenture 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 Indenture Trustee shall be incompetent or
      unqualified to perform such act or acts, in which event such rights, powers,
      duties and obligations (including the holding of title to the Trust 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 Indenture Trustee;

     

    (ii)  no
      trustee hereunder shall be personally liable by reason of any act or omission
      of
      any other trustee hereunder; and

     

    (iii)  the
      Indenture Trustee may at any time accept the resignation of or remove any
      separate trustee or co-trustee.

     

    (c)  Any
      notice, request or other writing given to the Indenture 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 Indenture and the conditions
      of this Article VI. Each separate trustee and co-trustee, upon its acceptance
      of
      the trusts conferred, shall be vested with the estates or property specified
      in
      its instrument of appointment, either jointly with the Indenture Trustee or
      separately, as may be provided therein, subject to all the provisions of this
      Indenture, specifically including every provision of this Indenture relating
      to
      the conduct of, affecting the liability of, or affording protection to, the
      Indenture Trustee. Every such instrument shall be filed with the Indenture
      Trustee.

     

    (d)  Any
      separate trustee or co-trustee may at any time constitute the Indenture Trustee,
      its agent or attorney-in-fact with full power and authority, to the extent
      not
      prohibited by law, to do any lawful act under or in respect of this Indenture
      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
      Indenture Trustee, to the extent permitted by law, without the appointment
      of a
      new or successor trustee.

     

    Section
      6.11  Representations
      and Warranties.
      The
      Indenture Trustee hereby represents that:

     

    (i)  The
      Indenture Trustee is duly organized and validly existing as an banking
      corporation in good standing under the laws of the New York 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
      Indenture Trustee has the power and authority to execute and deliver this
      Indenture and to carry out its terms; and the execution, delivery and
      performance of this Indenture have been duly authorized by the Indenture Trustee
      by all necessary corporate action;

     

    (iii)  The
      consummation of the transactions contemplated by this Indenture 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
      Indenture Trustee or any agreement or other instrument to which the Indenture
      Trustee is a party or by which it is bound; and

     

    (iv)  To
      the
      Indenture Trustee’s knowledge, there are no proceedings or investigations
      pending or threatened before any court, regulatory body, administrative agency
      or other governmental instrumentality having jurisdiction over the Indenture
      Trustee or its properties: (A) asserting the invalidity of this Indenture (B)
      seeking to prevent the consummation of any of the transactions contemplated
      by
      this Indenture or (C) seeking any determination or ruling that might materially
      and adversely affect the performance by the Indenture Trustee of its obligations
      under, or the validity or enforceability of, this Indenture.

     

    Section
      6.12  Directions
      to Indenture Trustee.
      The
      Indenture Trustee is hereby directed:

     

    (a)  to
      accept
      the pledge of the Mortgage Loans and hold the assets of the Trust Estate in
      trust for the Noteholders;

     

    (b)  to
      authenticate and deliver the Notes substantially in the form prescribed by
      Exhibits A-1 through A-4 to this Indenture in accordance with the terms of
      this
      Indenture; and

     

    (c)  to
      take
      all other actions as shall be required to be taken by the terms of this
      Indenture and the Sale and Servicing Agreement.

     

    Section
      6.13  The
      Agents.
      The
      provisions of this Indenture relating to the limitations of the Indenture
      Trustee’s liability and to its indemnity, rights and protections shall inure
      also to the Paying Agent, the Note Registrar and the Swap Contract
      Administrator.

     

    Section
      6.14  Eligibility;
      Disqualification.
      The
      Indenture Trustee shall at all times satisfy the requirements of TIA § 310(a).
      The Indenture Trustee shall have a combined capital and surplus of at least
      $50,000,000 as set forth in its most recent published annual report of condition
      and it or its parent shall have a long-term debt rating of Baa3 or better by
      Moody’s and BBB or better by Standard & Poor’s. The Indenture Trustee shall
      comply with TIA § 310(b), including the optional provision permitted by the
      second sentence of TIA § 310(b)(9); provided,
      however,
      that
      there shall be excluded from the operation of TIA § 310(b)(1) any indenture or
      indentures under which other securities of the Issuing Entity are outstanding
      if
      the requirements for such exclusion set forth in TIA § 310(b)(1) are
      met.

     

    Section
      6.15  Preferential
      Collection of Claims Against Issuing Entity.
      The
      Indenture Trustee shall comply with TIA § 311(a), excluding any creditor
      relationship listed in TIA § 311(b). An Indenture Trustee who has resigned or
      been removed shall be subject to TIA § 311(a) to the extent
      indicated.

     

    Section
      6.16  Certain
      Matters Affecting the Indenture Trustee.

     

    The
      Depositor hereby directs the Indenture Trustee to execute, deliver and perform
      its obligations under the Swap Administration Agreement. The Seller, the
      Depositor, the Master Servicer and the Holders of the Adjustable Rate Notes
      by
      their acceptance of such Notes acknowledge and agree that the Indenture Trustee
      shall execute, deliver and perform its obligations under the Swap Administration
      Agreement and shall do so solely in its capacity as Indenture Trustee, as the
      case may be, and not in its individual capacity. Every provision of this
      Agreement relating to the conduct or affecting the liability of or affording
      protection to the Indenture Trustee shall apply to the Indenture Trustee’s
      execution of the Swap Administration Agreement in its capacity as Indenture
      Trustee.

     

    ARTICLE
      VII

     

    NOTEHOLDERS’
      LISTS AND REPORTS

     

    Section
      7.01  Issuing
      Entity To Furnish Indenture Trustee Names and Addresses of
      Noteholders.
      The
      Issuing Entity will furnish or cause to be furnished to the Indenture Trustee
      (a) not more than five days after each Record Date, a list, in such form as
      the
      Indenture Trustee may reasonably require, of the names and addresses of the
      Holders of Notes as of such Record Date, (b) at such other times as the
      Indenture Trustee may request in writing, within 30 days after receipt by the
      Issuing Entity of any such request, a list of similar form and content as of
      a
      date not more than 10 days prior to the time such list is furnished;
provided,
      however,
      that so
      long as the Indenture Trustee is the Note Registrar, no such list shall be
      required to be furnished to the Indenture Trustee.

     

    Section
      7.02  Preservation
      of Information; Communications to Noteholders.
      (a)
      The
      Indenture Trustee shall preserve, in as current a form as is reasonably
      practicable, the names and addresses of the Holders of Notes contained in the
      most recent list furnished to the Indenture Trustee as provided in Section
      7.01
      hereof and the names and addresses of Holders of Notes received by the Indenture
      Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy
      any
      list furnished to it as provided in such Section 7.01 upon receipt of a new
      list
      so furnished.

     

    (b)  Noteholders
      may communicate with other Noteholders with respect to their rights under this
      Indenture or under the Notes.

     

    Section
      7.03   [Reserved].

     

    Section
      7.04   [Reserved].

     

    Section
      7.05  Monthly
      Statements to Noteholders.
      (a)
      Not
      later than each Payment Date, the Indenture Trustee shall prepare and cause
      to
      be forwarded by first class mail to each Holder of Notes, the Master Servicer
      and the Depositor a statement setting forth for the Notes:

     

    (i)  the
      Payment Date and the Record Dates, Accrual Period and Determination Date related
      to such Payment Date; 

     

    (ii)  cashflows
      received by the Indenture Trustee and the sources thereof;

     

    (iii)  the
      Servicing Fee, Indenture Trustee Fee, Owner Trustee Fee and any expenses paid
      out of the Trust Estate, if any;

     

    (iv)  the
      amount of any Net Swap Payment and any Swap Termination Payment (a) payable
      to
      the Swap Counterparty with respect to such Payment Date or (b) paid to the
      Swap
      Contract Administrator for such Payment Date and for the benefit of the
      Noteholders;

     

    (v)  amount
      of
      the related payment to Holders of each Class allocable to principal, separately
      identifying (A) the aggregate amount of any Principal Prepayments included
      therein and (B) the aggregate of all scheduled payments of principal included
      therein;

     

    (vi)  the
      amount of such payment to Holders of each Class allocable to
      interest;

     

    (vii)  the
      Note
      Rate on each Class of Notes for that Payment Date;

     

    (viii)  the
      Interest Carry Forward Amounts for each class of Notes (if any);

     

    (ix)  the
      Note
      Principal Balance of each Class of Offered Notes as of the day prior to such
      Payment Date and after giving effect to (i) all distributions allocable to
      principal on the Payment Date, (ii) the allocation of any Applied Realized
      Loss
      Amounts for the Payment Date and (iii) the allocation of any Subsequent
      Recoveries for the Payment Date,

     

    (x)  the
      amount of the Excess Cashflow for such Payment Date and the distribution
      thereof;

     

    (xi)  the
      Net
      Rate Carryover Amount paid on any Class of Notes on such Payment Date and any
      Net Rate Carryover Amounts remaining unpaid on any Class of Notes on such
      Payment Date;

     

    (xii)  the
      number of Mortgage Loans and the aggregate of the Stated Principal Balance
      of
      the Mortgage Loans as of the first day of the related Due Period and as of
      the
      last day of the related Due Period;

     

    (xiii)  the
      amount of Advances included in the payment on such Payment Date;

     

    (xiv)  the
      amount of Applied Realized Loss Amounts applied to the Notes for such Payment
      Date;

     

    (xv)  the
      cumulative amount of Applied Realized Loss Amounts applied to the Notes to
      date;

     

    (xvi)  the
      amount of Realized Losses incurred during the related Due Period and Prepayment
      Period;

     

    (xvii)  the
      number and aggregate principal amounts of Mortgage Loans: (A) Delinquent
      (exclusive of Mortgage Loans in foreclosure) (1) 30 to 59 days, (2) 60 to 89
      days and (3) 90 or more days, and (B) in foreclosure and Delinquent (1) 30
      to 59
      days, (2) 60 to 89 days and (3) 90 or more days, in each case as of the close
      of
      business on the last day of the calendar month preceding such Payment
      Date;

     

    (xviii)  with
      respect to any Mortgage Loan that became an REO Property during the preceding
      calendar month, the loan number and Stated Principal Balance of such Mortgage
      Loan and the date of acquisition thereof;

     

    (xix)  the
      aggregate Stated Principal Balances of any Mortgage Loans converted to REO
      Properties as of the close of business on the Determination Date preceding
      such
      Payment Date, and
      after
      a TMP Trigger Event but prior to a REMIC Conversion, the amount of proceeds
      received in connection with the sale of all REO Property;

     

    (xx)  the
      aggregate Stated Principal Balances of all Liquidated Loans;

     

    (xxi)  with
      respect to any Liquidated Loan, the loan number and Stated Principal Balance
      relating thereto;

     

    (xxii)  whether
      a
      Trigger Event is in effect;

     

    (xxiii)  all
      payments made by the Master Servicer in respect of Compensating Interest for
      such Payment Date; and

     

    (xxiv)  the
      number of and aggregate Stated Principal Balance of any Mortgage Loans
      repurchased due to material breaches of representations or warranties or
      otherwise pursuant to any Basic Document .

     

    (b)  The
      Indenture Trustee’s responsibility for disbursing the above information to the
      Noteholders is limited to the availability, timeliness and accuracy of the
      information derived from the Master Servicer. The Indenture Trustee will send
      a
      copy of each statement provided pursuant to this Section 4.05 to each Rating
      Agency. The Indenture Trustee may make the above information available to
      Noteholders via the Indenture Trustee’s website at http://www.
      bnyinvestorreporting.com.

     

    (c)  Within
      a
      reasonable period of time after the end of each calendar year, the Indenture
      Trustee shall cause to be furnished to each Person who at any time during the
      calendar year was a Noteholder, a statement containing the information set
      forth
      in clauses (a)(i), (a)(ii) and (a)(vi) of this Section 4.05 aggregated for
      such
      calendar year or applicable portion thereof during which such Person was a
      Noteholder. Such obligation of the Indenture Trustee shall be deemed to have
      been satisfied to the extent that substantially comparable information shall
      be
      provided by the Indenture Trustee pursuant to any requirements of the Code
      as
      from time to time in effect.

     

    ARTICLE
      VIII

     

    ACCOUNTS,
      DISBURSEMENTS AND RELEASES

     

    Section
      8.01  Collection
      of Money.
      Except
      as otherwise expressly provided herein, the Indenture Trustee may demand payment
      or delivery of, and shall receive and collect, directly and without intervention
      or assistance of any fiscal agent or other intermediary, all money and other
      property payable to or receivable by the Indenture Trustee pursuant to this
      Indenture. The Indenture Trustee shall apply all such money received by it
      as
      provided in this Indenture. Except as otherwise expressly provided in this
      Indenture, if any default occurs in the making of any payment or performance
      under any agreement or instrument that is part of the Trust Estate, the
      Indenture Trustee may take such action as may be appropriate to enforce such
      payment or performance, including the institution and prosecution of appropriate
      Proceedings. Any such action shall be without prejudice to any right to claim
      a
      Default or Event of Default under this Indenture and any right to proceed
      thereafter as provided in Article V.

     

    Section
      8.02   [Reserved].

     

    Section
      8.03  Officer’s
      Certificate.
      The
      Indenture Trustee shall receive at least seven Business Days’ notice when
      requested by the Issuing Entity to take any action pursuant to Section 8.05(a)
      hereof, accompanied by copies of any instruments to be executed, and the
      Indenture Trustee shall also require, as a condition to such action, an
      Officer’s Certificate, in form and substance satisfactory to the Indenture
      Trustee, stating the legal effect of any such action, outlining the steps
      required to complete the same, and concluding that all conditions precedent
      to
      the taking of such action have been complied with.

     

    Section
      8.04  Termination
      Upon Distribution to Noteholders.
      This
      Indenture and the respective obligations and responsibilities of the Issuing
      Entity and the Indenture Trustee created hereby shall terminate upon the
      distribution to Noteholders, the Certificate Paying Agent on behalf of the
      Certificateholders and the Indenture Trustee of all amounts required to be
      distributed pursuant to Article III; provided,
      however,
      that in
      no event shall the trust created hereby continue beyond the expiration of 21
      years from the death of the survivor of the descendants of Joseph P. Kennedy,
      the late ambassador of the United States to the Court of St. James, living
      on
      the date hereof.

     

    Section
      8.05  Release
      of Trust Estate.
      (a)
      Subject
      to the payment of its fees and expenses, the Indenture Trustee may, and when
      required by the provisions of this Indenture shall, execute instruments to
      release property from the lien of this Indenture, or convey the Indenture
      Trustee’s interest in the same, in a manner and under circumstances that are not
      inconsistent with the provisions of this Indenture, including for the purposes
      of any repurchase by the Master Servicer of a Mortgage Loan pursuant to Section
      2.03 of the Sale and Servicing Agreement. No party relying upon an instrument
      executed by the Indenture Trustee as provided in Article VIII hereunder shall
      be
      bound to ascertain the Indenture Trustee’s authority, inquire into the
      satisfaction of any conditions precedent, or see to the application of any
      monies.

     

    (b)  The
      Indenture Trustee shall, at such time as (i) there are no Notes Outstanding
      and
      (ii) all sums due to the Indenture Trustee pursuant to this Indenture have
      been
      paid, release any remaining portion of the Trust Estate that secured the Notes
      from the lien of this Indenture.

     

    (c)  The
      Indenture Trustee shall release property from the lien of this Indenture
      pursuant to this Section 8.05 only upon receipt of a request from the Issuing
      Entity accompanied by an Officers’ Certificate and an Opinion of Counsel stating
      that all applicable requirements have been satisfied or following the occurrence
      of a TMP Trigger Event upon a REMIC Conversion.

     

    Section
      8.06  Surrender
      of Notes Upon Final Payment.
      By
      acceptance of any Note, the Holder thereof agrees to surrender such Note to
      the
      Indenture Trustee promptly, prior to such Noteholder’s receipt of the final
      payment thereon or concurrently against receipt of a Class A REMIC Note, Class
      M
      REMIC Note or Privately Offered Certificate.

     

    Section
      8.07  Optional
      Redemption of the Notes.
      (a)
      The
      Seller shall have the option to purchase the Mortgage Loans, and thereby redeem
      the Notes, on any Payment Date on or after the Payment Date on which the
      aggregate Stated Principal Balance of the Mortgage Loans as of the end of the
      prior Due Period is less than or equal to 10% of the aggregate Stated Principal
      Balance of the Mortgage Loans as of Cut-off Date. The aggregate purchase price
      for the Notes will be equal to the unpaid Note Principal Balance of the Notes
      as
      of the Payment Date on which the proposed redemption will take place in
      accordance with the foregoing, together with accrued and unpaid interest thereon
      at the applicable Note Rate through such Payment Date (including any related
      Net
      Rate Carryover and Interest Carry-Forward Amount), plus (i)
      an
      amount sufficient to pay in full all amounts owing to the Indenture Trustee
      under this Indenture (which amounts shall be specified in writing upon request
      of the Issuer by the Indenture Trustee),
      (ii)
      the
      amount of any Swap Termination Payment payable to the Swap Counterparty.
(iii)
      any
      unreimbursed Advances owed to the Master Servicer.

     

    (b)  In
      order
      to exercise the foregoing option, the Seller shall provide written notice of
      its
      exercise of such option to the Indenture Trustee and the Owner Trustee at least
      15 days prior to its exercise. Following receipt of the notice, the Indenture
      Trustee shall provide notice to the Noteholders of the final payment on the
      Notes. In addition, the Master Servicer shall, not less than one Business Day
      prior to the proposed Payment Date on which such redemption is to be made,
      deposit the aggregate redemption price specified in (a) above with the Indenture
      Trustee, who shall deposit the aggregate redemption price into the Payment
      Account and shall, on the Payment Date after receipt of the funds, apply such
      funds to make final payments of principal and interest on the Notes in
      accordance with Section 4.02 hereof and payment in full to the Indenture
      Trustee, and this Indenture shall be discharged subject to the provisions of
      Section 4.12 hereof. If for any reason the amount deposited by the Issuing
      Entity is not sufficient to make such redemption or such redemption cannot
      be
      completed for any reason, the amount so deposited by the Master Servicer with
      the Indenture Trustee shall be promptly returned to the Master Servicer in
      full
      and shall not be used for any other purpose or be deemed to be part of the
      Trust
      Estate.

     

    Section
      8.08  Swap
      Account.

     

    No
      later
      than the Closing Date, the Indenture Trustee shall establish and maintain a
      separate, segregated trust account titled, “Swap Account, The Bank of New York,
      as Indenture Trustee, in trust for the Swap Counterparty and the registered
      holders of CWALT,
      Inc., GSC Capital Corp. Mortgage Trust 2006-2, GSC Alternative Loan Trust Notes,
      Series 2006-2.”
Such
      account shall be an Eligible Account and funds on deposit therein shall be
      held
      separate and apart from, and shall not be commingled with, any other moneys,
      including, without limitation, other moneys of the Indenture Trustee held
      pursuant to this Agreement or the Sale and Servicing Agreement. Amounts therein
      shall be held uninvested. Funds on deposit in the Swap Account shall be
      distributed in the amounts and in the order of priority described under Section
      4.02(d).

     

    On
      each
      Payment Date, the Indenture Trustee shall make a deposit to the Swap Account
      pursuant to Section 4.02(a)(i), and to the extent that the amount of such
      deposit is insufficient to pay any Net Swap Payment and/or Swap Termination
      Payment (other than a Swap Termination Payment due to a Swap Counterparty
      Trigger Event) due to the Swap Counterparty with respect to such Payment Date,
      the Indenture Trustee shall withdraw, out of amounts on deposit in the Payment
      Account in respect of the Principal Remittance Amount, such additional amount
      as
      is necessary to cover the remaining portion of any such Net Swap Payment and/or
      Swap Termination Payment (other than a Swap Termination Payment due to a Swap
      Counterparty Trigger Event) due to the Swap Counterparty with respect to such
      Payment Date.

     

    The
      Swap
      Account shall terminate on the earlier of (i) the Swap Contract Termination
      Date, (ii) the reduction of the aggregate Note Principal Balance of the
      Adjustable Rate Notes to zero and (iii) the termination of this
      Agreement.

     

    Section
      8.09  Termination
      Following TMP Trigger Event.
      This
      Indenture and the respective obligations and responsibilities of the Issuing
      Entity, the Note Registrar, the Paying Agent, the Authenticating Agent and
      the
      Indenture Trustee created hereby shall terminate, and this Indenture shall
      be
      satisfied and discharged, following the occurrence of a TMP Trigger Event and
      the conditions precedent to a REMIC Conversion, upon the mandatory exchange
      of
      (i) the Class A Notes for the REMIC Class A Notes, (ii) the Class M Notes for
      the REMIC Class M Notes and (iii) the Privately Offered Notes for the Privately
      Offered Certificates, pursuant to Article XI hereof; provided, however, that
      in
      no event shall the trust created hereby continue beyond the expiration of 21
      years from the death of the survivor of the descendants of Joseph P. Kennedy,
      the late ambassador of the United States to the Court of St. James, living
      on
      the date hereof.

     

    ARTICLE
      IX

     

    SUPPLEMENTAL
      INDENTURES

     

    Section
      9.01  Supplemental
      Indentures Without Consent of Noteholders.
      (a)
      thout
      the consent of the Holders of any Notes but with prior notice to the Rating
      Agencies, the Issuing Entity and the Indenture Trustee, when authorized by
      an
      Issuing Entity Request, at any time and from time to time, may enter into one
      or
      more indentures supplemental hereto, in form satisfactory to the Indenture
      Trustee, for any of the following purposes:

     

    (i)  to
      correct or amplify the description of any property at any time subject to the
      lien of this Indenture, or better to assure, convey and confirm unto the
      Indenture Trustee any property subject or required to be subjected to the lien
      of this Indenture, or to subject to the lien of this Indenture additional
      property;

     

    (ii)  to
      evidence the succession, in compliance with the applicable provisions hereof,
      of
      another person to the Issuing Entity, and the assumption by any such successor
      of the covenants of the Issuing Entity herein and in the Notes
      contained;

     

    (iii)  to
      add to
      the covenants of the Issuing Entity, for the benefit of the Holders of the
      Notes, or to surrender any right or power herein conferred upon the Issuing
      Entity;

     

    (iv)  to
      convey, transfer, assign, mortgage or pledge any property to or with the
      Indenture Trustee;

     

    (v)  to
      cure
      any ambiguity, to correct or supplement any provision herein or in any
      supplemental indenture that may be inconsistent with any other provision herein
      or in any supplemental indenture;

     

    (vi)  to
      make
      any other provisions with respect to matters or questions arising under this
      Indenture or in any supplemental indenture; provided, that such action shall
      not
      materially and adversely affect the interests of the Holders of the
      Notes;

     

    (vii)  to
      evidence and provide for the acceptance of the appointment hereunder by a
      successor trustee with respect to the Notes and to add to or change any of
      the
      provisions of this Indenture as shall be necessary to facilitate the
      administration of the trusts hereunder by more than one trustee, pursuant to
      the
      requirements of Article VI hereof;

     

    (viii)  following
      the occurrence of a TMP Trigger Event and the exchange of (i) the Class A-1,
      Class A-2, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6,
      Class M-7 and Class M-8 Notes for the REMIC Class A-1, Class A-2, Class M-1,
      Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7 and Class
      M-8
      Notes, respectively, and (ii) the Privately Offered Notes for the Privately
      Offered Certificates pursuant to Article XI hereof or to prevent the imposition
      of any tax on any REMIC created hereunder;

     

    and
      provided,
      further,
      that
      such action shall not, as evidenced by an Opinion of Counsel, cause the Issuing
      Entity to be subject to an entity level tax other than in the event of a TMP
      Trigger Event or cause any Class of Offered Notes currently outstanding to
      cease
      to be qualified as indebtedness.

     

    The
      Indenture Trustee is hereby authorized to join in the execution of any such
      supplemental indenture and to make any further appropriate agreements and
      stipulations that may be therein contained.

     

    (b)  The
      Issuing Entity and the Indenture Trustee, when authorized by an Issuing Entity
      Request, may, also without the consent of any of the Holders of the Notes and
      prior notice to the Rating Agencies, enter into an indenture or indentures
      supplemental hereto for the purpose of adding any provisions to, or changing
      in
      any manner or eliminating any of the provisions of, this Indenture or of
      modifying in any manner the rights of the Holders of the Notes under this
      Indenture; provided,
      however,
      that
      such action as evidenced by an Opinion of Counsel, (i) is permitted by this
      Indenture, and shall not (ii) adversely affect in any material respect the
      interests of any Noteholder (without that Noteholder’s consent) and cause the
      Issuing Entity to be subject to an entity level tax for federal income tax
      purposes.

     

    Section
      9.02  Supplemental
      Indentures With Consent of Noteholders.
      The
      Issuing Entity and the Indenture Trustee, when authorized by an Issuing Entity
      Request, also may, with prior notice to the Rating Agencies and, with the
      consent of the Holders of not less than a majority of the Note Principal Balance
      of each Class of Offered Notes affected thereby, by Act (as defined in Section
      10.03 hereof) of such Holders delivered to the Issuing Entity and the Indenture
      Trustee, enter into an indenture or indentures supplemental hereto for the
      purpose of adding any provisions to, or changing in any manner or eliminating
      any of the provisions of, this Indenture or of modifying in any manner the
      rights of the Holders of the Notes under this Indenture; provided,
      however,
      that no
      such supplemental indenture shall, without the consent of the Holder of each
      Note affected thereby:

     

    (i)  change
      the date of payment of any installment of principal of or interest on any Note,
      or reduce the principal amount thereof or the interest rate thereon, change
      the
      provisions of this Indenture relating to the application of collections on,
      or
      the proceeds of the sale of, the Trust Estate to payment of principal of or
      interest on the Notes, or change any place of payment where, or the coin or
      currency in which, any Note or the interest thereon is payable, or impair the
      right to institute suit for the enforcement of the provisions of this Indenture
      requiring the application of funds available therefor, as provided in Article
      V,
      to the payment of any such amount due on the Notes on or after the respective
      due dates thereof;

     

    (ii)  reduce
      the percentage of the Note Principal Balances of the Notes, the consent of
      the
      Holders of which is required for any such supplemental indenture, or the consent
      of the Holders of which is required for any waiver of compliance with certain
      provisions of this Indenture or certain defaults hereunder and their
      consequences provided for in this Indenture;

     

    (iii)  modify
      or
      alter the provisions of the proviso to the definition of the term “Outstanding”
or modify or alter the exception in the definition of the term
“Holder”;

     

    (iv)  reduce
      the percentage of the Note Principal Balances of the Notes required to direct
      the Indenture Trustee to direct the Issuing Entity to sell or liquidate the
      Trust Estate pursuant to Section 5.04 hereof;

     

    (v)  modify
      any provision of this Section 9.02 except to increase any percentage specified
      herein or to provide that certain additional provisions of this Indenture or
      the
      Basic Documents cannot be modified or waived without the consent of the Holder
      of each Note affected thereby;

     

    (vi)  modify
      any of the provisions of this Indenture in such manner as to affect the
      calculation of the amount of any payment of interest or principal due on any
      Note on any Payment Date (including the calculation of any of the individual
      components of such calculation); or

     

    (vii)  permit
      the creation of any lien ranking prior to or on a parity with the lien of this
      Indenture with respect to any part of the Trust Estate or, except as otherwise
      permitted or contemplated herein, terminate the lien of this Indenture on any
      property at any time subject hereto or deprive the Holder of any Note of the
      security provided by the lien of this Indenture;

     

    and
      provided,
      further,
      that
      such action shall not, as evidenced by an Opinion of Counsel, cause the Issuing
      Entity to be subject to an entity level tax other than in the event of a TMP
      Trigger Event.

     

    Any
      such
      action shall not adversely affect in any material respect the interest of any
      Holder (other than a Holder who shall consent to such supplemental indenture)
      as
      evidenced by an Opinion of Counsel (provided by the Person requesting such
      supplemental indenture) delivered to the Indenture Trustee.

     

    It
      shall
      not be necessary for any Act of Noteholders under this Section 9.02 to approve
      the particular form of any proposed supplemental indenture, but it shall be
      sufficient if such Act shall approve the substance thereof.

     

    Promptly
      after the execution by the Issuing Entity and the Indenture Trustee of any
      supplemental indenture pursuant to this Section 9.02, the Indenture Trustee
      shall mail to the Holders of the Notes to which such amendment or supplemental
      indenture relates a notice setting forth in general terms the substance of
      such
      supplemental indenture. Any failure of the Indenture Trustee to mail such
      notice, or any defect therein, shall not, however, in any way impair or affect
      the validity of any such supplemental indenture.

     

    Section
      9.03  Execution
      of Supplemental Indentures.
      In
      executing, or permitting the additional trusts created by, any supplemental
      indenture permitted by this Article IX or the modification thereby of the trusts
      created by this Indenture, the Indenture Trustee shall be entitled to receive,
      and subject to Sections 6.01 and 6.02 hereof, shall be fully protected in
      relying upon, an Opinion of Counsel stating that the execution of such
      supplemental indenture is authorized or permitted by this Indenture. The
      Indenture Trustee may, but shall not be obligated to, enter into any such
      supplemental indenture that affects the Indenture Trustee’s own rights, duties,
      liabilities or immunities under this Indenture or otherwise.

     

    Section
      9.04  Effect
      of Supplemental Indenture.
      Upon
      the execution of any supplemental indenture pursuant to the provisions hereof,
      this Indenture shall be and shall be deemed to be modified and amended in
      accordance therewith with respect to the Notes affected thereby, and the
      respective rights, limitations of rights, obligations, duties, liabilities
      and
      immunities under this Indenture of the Indenture Trustee, the Issuing Entity
      and
      the Holders of the Notes shall thereafter be determined, exercised and enforced
      hereunder subject in all respects to such modifications and amendments, and
      all
      the terms and conditions of any such supplemental indenture shall be and be
      deemed to be part of the terms and conditions of this Indenture for any and
      all
      purposes.

     

    Section
      9.05  Reference
      in Notes to Supplemental Indentures.
      Notes
      authenticated and delivered after the execution of any supplemental indenture
      pursuant to this Article IX may, and if required by the Indenture Trustee shall,
      bear a notation in form approved by the Indenture Trustee as to any matter
      provided for in such supplemental indenture. If the Issuing Entity or the
      Indenture Trustee shall so determine, new Notes so modified as to conform,
      in
      the opinion of the Indenture Trustee and the Issuing Entity, to any such
      supplemental indenture may be prepared and executed by the Issuing Entity and
      authenticated and delivered by the Indenture Trustee in exchange for Outstanding
      Notes.

     

    Section
      9.06  Swap
      Counterparty Consent.

     

    Notwithstanding
      any contrary provision of this Agreement, no supplemental indenture shall
      adversely affect in any material respect the Swap Counterparty without at least
      ten Business Days’ prior notice to the Swap Counterparty and without the prior
      written consent of the Swap Counterparty, which consent shall not be
      unreasonably withheld. CHL shall provide the Swap Counterparty with prior
      written notice of any proposed material supplemental indenture of this
      Agreement.

     

    ARTICLE
      X

     

    MISCELLANEOUS

     

    Section
      10.01  Compliance
      Certificates and Opinions, etc.
      (a)
      Upon any
      application or request by the Issuing Entity to the Indenture Trustee to take
      any action under any provision of this Indenture, the Issuing Entity shall
      furnish to the Indenture Trustee (i) an Officer’s Certificate stating that all
      conditions precedent, if any, provided for in this Indenture relating to the
      proposed action have been complied with and (ii) an Opinion of Counsel stating
      that in the opinion of such counsel all such conditions precedent, if any,
      have
      been complied with, except that, in the case of any such application or request
      as to which the furnishing of such documents is specifically required by any
      provision of this Indenture, no additional certificate or opinion need be
      furnished.

     

    Every
      certificate or opinion with respect to compliance with a condition or covenant
      provided for in this Indenture shall include:

     

    (1) a
      statement that each signatory of such certificate or opinion has read or has
      caused to be read such covenant or condition and the definitions herein relating
      thereto;

     

    (2) a
      brief
      statement as to the nature and scope of the examination or investigation upon
      which the statements or opinions contained in such certificate or opinion are
      based;

     

    (3) a
      statement that, in the opinion of each such signatory, such signatory has made
      such examination or investigation as is necessary to enable such signatory
      to
      express an informed opinion as to whether or not such covenant or condition
      has
      been complied with;

     

    (4) a
      statement as to whether, in the opinion of each such signatory, such condition
      or covenant has been complied with; and

     

    (5) if
      the
      signatory of such certificate or opinion is required to be Independent, the
      statement required by the definition of the term “Independent”.

     

    (b)  (i)Prior
      to
      the deposit of any Collateral or other property or securities with the Indenture
      Trustee that is to be made the basis for the release of any property or
      securities subject to the lien of this Indenture, the Issuing Entity shall,
      in
      addition to any obligation imposed in Section 10.01 (a) or elsewhere in this
      Indenture, furnish to the Indenture Trustee an Officer’s Certificate certifying
      or stating the opinion of each person signing such certificate as to the fair
      value (within 90 days prior to such deposit) to the Issuing Entity of the
      Collateral or other property or securities to be so deposited and a report
      from
      a nationally recognized accounting firm verifying such value.

     

    (ii)  Whenever
      the Issuing Entity is required to furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of any signer thereof as to the
      matters described in clause (i) above, the Issuing Entity shall also deliver
      to
      the Indenture Trustee an Independent Certificate from a nationally recognized
      accounting firm as to the same matters, if the fair value of the securities
      to
      be so deposited and of all other such securities made the basis of any such
      withdrawal or release since the commencement of the then current fiscal year
      of
      the Issuing Entity, as set forth in the certificates delivered pursuant to
      clause (i) above and this clause (ii), is 10% or more of the Note Principal
      Balances of the Offered Notes, but such a certificate need not be furnished
      with
      respect to any securities so deposited, if the fair value thereof as set forth
      in the related Officer’s Certificate is less than $25,000 or less than one
      percent of the Note Principal Balances of the Offered Notes.

     

    (iii)  Whenever
      any property or securities are to be released from the lien of this Indenture,
      the Issuing Entity shall also furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of each person signing such
      certificate as to the fair value (within 90 days prior to such release) of
      the
      property or securities proposed to be released and stating that in the opinion
      of such person the proposed release will not impair the security under this
      Indenture in contravention of the provisions hereof.

     

    (iv)  Whenever
      the Issuing Entity is required to furnish to the Indenture Trustee an Officer’s
      Certificate certifying or stating the opinion of any signer thereof as to the
      matters described in clause (iii) above, the Issuing Entity shall also furnish
      to the Indenture Trustee an Independent Certificate as to the same matters
      if
      the fair value of the property or securities and of all other property or
      securities released from the lien of this Indenture since the commencement
      of
      the then-current calendar year, as set forth in the certificates required by
      clause (iii) above and this clause (iv), equals 10% or more of the Note
      Principal Balances of the Offered Notes, but such certificate need not be
      furnished in the case of any release of property or securities if the fair
      value
      thereof as set forth in the related Officer’s Certificate is less than $25,000
      or less than one percent of the then Note Principal Balances of the Offered
      Notes.

     

    Section
      10.02  Form
      of Documents Delivered to Indenture Trustee.
      In any
      case where several matters are required to be certified by, or covered by an
      opinion of, any specified Person, it is not necessary that all such matters
      be
      certified by, or covered by the opinion of, only one such Person, or that they
      be so certified or covered by only one document, but one such Person may certify
      or give an opinion with respect to some matters and one or more other such
      Persons as to other matters, and any such Person may certify or give an opinion
      as to such matters in one or several documents.

     

    Any
      certificate or opinion of an Authorized Officer of the Issuing Entity may be
      based, insofar as it relates to legal matters, upon a certificate or opinion
      of,
      or representations by, counsel, unless such officer knows, or in the exercise
      of
      reasonable care should know, that the certificate or opinion or representations
      with respect to the matters upon which his certificate or opinion is based
      are
      erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel
      may be based, insofar as it relates to factual matters, upon a certificate
      or
      opinion of, or representations by, an officer or officers of the Seller or
      the
      Issuing Entity, stating that the information with respect to such factual
      matters is in the possession of the Seller or the Issuing Entity, unless such
      counsel knows, or in the exercise of reasonable care should know, that the
      certificate or opinion or representations with respect to such matters are
      erroneous.

     

    Where
      any
      Person is required to make, give or execute two or more applications, requests,
      consents, certificates, statements, opinions or other instruments under this
      Indenture, they may, but need not, be consolidated and form one
      instrument.

     

    Whenever
      in this Indenture, in connection with any application or certificate or report
      to the Indenture Trustee, it is provided that the Issuing Entity shall deliver
      any document as a condition of the granting of such application, or as evidence
      of the Issuing Entity’s compliance with any term hereof, it is intended that the
      truth and accuracy, at the time of the granting of such application or at the
      effective date of such certificate or report (as the case may be), of the facts
      and opinions stated in such document shall in such case be conditions precedent
      to the right of the Issuing Entity to have such application granted or to the
      sufficiency of such certificate or report. The foregoing shall not, however,
      be
      construed to affect the Indenture Trustee’s right to rely upon the truth and
      accuracy of any statement or opinion contained in any such document as provided
      in Article VI.

     

    Section
      10.03  Acts
      of Noteholders.
      (a)
      Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided by this Indenture to be given or taken by Noteholders may be
      embodied in and evidenced by one or more instruments of substantially similar
      tenor signed by such Noteholders in person or by agents duly appointed in
      writing; and except as herein otherwise expressly provided, such action shall
      become effective when such instrument or instruments are delivered to the
      Indenture Trustee, and, where it is hereby expressly required, to the Issuing
      Entity. Such instrument or instruments (and the action embodied therein and
      evidenced thereby) are herein sometimes referred to as the “Act” of the
      Noteholders signing such instrument or instruments. Proof of execution of any
      such instrument or of a writing appointing any such agent shall be sufficient
      for any purpose of this Indenture and (subject to Section 6.01 hereof)
      conclusive in favor of the Indenture Trustee and the Issuing Entity, if made
      in
      the manner provided in this Section 10.03 hereof.

     

    (b)  The
      fact
      and date of the execution by any person of any such instrument or writing may
      be
      proved in any manner that the Indenture Trustee deems sufficient.

     

    (c)  The
      ownership of Notes shall be proved by the Note Registrar.

     

    (d)  Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action by the Holder of any Notes shall bind the Holder of every Note issued
      upon the registration thereof or in exchange therefor or in lieu thereof, in
      respect of anything done, omitted or suffered to be done by the Indenture
      Trustee or the Issuing Entity in reliance thereon, whether or not notation
      of
      such action is made upon such Note.

     

    Section
      10.04  Notices
      etc., to Indenture Trustee Issuing Entity, Swap Counterparty and Rating
      Agencies.
      Any
      request, demand, authorization, direction, notice, consent, waiver or Act of
      Noteholders or other documents provided or permitted by this Indenture shall
      be
      in writing and if such request, demand, authorization, direction, notice,
      consent, waiver or act of Noteholders is to be made upon, given or furnished
      to
      or filed with:

     

    (i)  the
      Indenture Trustee by any Noteholder or by the Issuing Entity shall be sufficient
      for every purpose hereunder if made, given, furnished or filed in writing to
      or
      with the Indenture Trustee at the Corporate Trust Office. The Indenture Trustee
      shall promptly transmit any notice received by it from the Noteholders to the
      Issuing Entity; or

     

    (ii)  the
      Issuing Entity by the Indenture Trustee or by any Noteholder shall be sufficient
      for every purpose hereunder if in writing and mailed first-class, postage
      prepaid to the Issuing Entity addressed to: GSC Capital Corp. Mortgage Trust
      2006-2, in care of Wilmington Trust Company, Rodney Square North, 1100 North
      Market Street, Wilmington, Delaware 19990-0001, Attention: Corporate Trust
      Administration, or at any other address previously furnished in writing to
      the
      Indenture Trustee by the Issuing Entity. The Issuing Entity shall promptly
      transmit any notice received by it from the Noteholders to the Indenture
      Trustee.

     

    Notices
      required to be given to the Rating Agencies by the Issuing Entity, the Indenture
      Trustee or the Owner Trustee shall be in writing, mailed first-class postage
      pre-paid, to (i) in the case of Moody’s, at the following address: Moody’s
      Investors Service, Inc., Residential Mortgage Monitoring Department, 99 Church
      Street, New York, NY 10007, (ii) in the case of Standard & Poor’s, at the
      following address: Standard & Poor’s, 55 Water Street, 41st
      Floor,
      New York, New York 10041, Attention of Asset Backed Surveillance Department
      and
      (iii) in the case of Fitch, One State Street Plaza - 32nd Floor, New York,
      New
      York 10004; or as to each of the foregoing, at such other address as shall
      be
      designated by written notice to the other parties.

     

    Notices
      required to be given to the Swap Counterparty by the Issuing Entity, the
      Indenture Trustee or the Owner Trustee shall be in writing, mailed first-class
      postage pre-paid, to Barclays Bank PLC, c/o Barclays Capital, [Transaction
      Management Group, Corporate Advisory Division], 5 The North Colonnade, Canary
      Wharf, London E14 4BB, Attention: [Documentation Manager], facsimile number
      (00)1-818-2254001; or at such other address as shall be designated by written
      notice to the other parties.

     

    Section
      10.05  Notices
      to Noteholders; Waiver.
      Where
      this Indenture provides for notice to Noteholders of any event, such notice
      shall be sufficiently given (unless otherwise herein expressly provided) if
      in
      writing and mailed, first-class, postage prepaid to each Noteholder affected
      by
      such event, at such Person’s address as it appears on the Note Register, not
      later than the latest date, and not earlier than the earliest date, prescribed
      for the giving of such notice. In any case where notice to Noteholders is given
      by mail, neither the failure to mail such notice nor any defect in any notice
      so
      mailed to any particular Noteholder shall affect the sufficiency of such notice
      with respect to other Noteholders, and any notice that is mailed in the manner
      herein provided shall conclusively be presumed to have been duly given
      regardless of whether such notice is in fact actually received.

     

    Where
      this Indenture provides for notice in any manner, such notice may be waived
      in
      writing by any Person entitled to receive such notice, either before or after
      the event, and such waiver shall be the equivalent of such notice. Waivers
      of
      notice by Noteholders shall be filed with the Indenture Trustee but such filing
      shall not be a condition precedent to the validity of any action taken in
      reliance upon such a waiver.

     

    In
      case,
      by reason of the suspension of regular mail service as a result of a strike,
      work stoppage or similar activity, it shall be impractical to mail notice of
      any
      event to Noteholders when such notice is required to be given pursuant to any
      provision of this Indenture, then any manner of giving such notice as shall
      be
      satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving
      of such notice.

     

    Where
      this Indenture provides for notice to the Rating Agencies, failure to give
      such
      notice shall not affect any other rights or obligations created hereunder,
      and
      shall not under any circumstance constitute an Event of Default.

     

    Section
      10.06  Effect
      of Headings.
      The
      Article and Section headings herein are for convenience only and shall not
      affect the construction hereof.

     

    Section
      10.07  Successors
      and Assigns.
      All
      covenants and agreements in this Indenture and the Notes by the Issuing Entity
      shall bind its successors and assigns, whether so expressed or not. All
      agreements of the Indenture Trustee in this Indenture shall bind its successors,
      co-trustees and agents.

     

    Section
      10.08  Separability.
      In case
      any provision in this Indenture or in the Notes shall be invalid, illegal or
      unenforceable, the validity, legality, and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

     

    Section
      10.09   [Reserved].

     

    Section
      10.10  Legal
      Holidays.
      In any
      case where the date on which any payment is due shall not be a Business Day,
      then (notwithstanding any other provision of the Notes or this Indenture)
      payment need not be made on such date, but may be made on the next succeeding
      Business Day with the same force and effect as if made on the date on which
      nominally due, and no interest shall accrue for the period from and after any
      such nominal date.

     

    Section
      10.11  GOVERNING
      LAW.
      THIS
      INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION
      5-1401 OF THE GENERAL OBLIGATIONS LAWS), AND THE OBLIGATIONS, RIGHTS AND
      REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS.

     

    Section
      10.12  Counterparts.
      This
      Indenture may be executed in any number of counterparts, each of which so
      executed shall be deemed to be an original, but all such counterparts shall
      together constitute but one and the same instrument.

     

    Section
      10.13  Recording
      of Indenture.
      If this
      Indenture is subject to recording in any appropriate public recording offices,
      such recording is to be effected by the Issuing Entity and at its expense
      accompanied by an Opinion of Counsel at its expense (which may be counsel to
      the
      Indenture Trustee or any other counsel reasonably acceptable to the Indenture
      Trustee) to the effect that such recording is necessary either for the
      protection of the Noteholders or any other Person secured hereunder or for
      the
      enforcement of any right or remedy granted to the Indenture Trustee under this
      Indenture.

     

    Section
      10.14  Issuing
      Entity Obligation.
      No
      recourse may be taken, directly or indirectly, with respect to the obligations
      of the Issuing Entity, the Owner Trustee or the Indenture Trustee on the Notes
      or under this Indenture or any certificate or other writing delivered in
      connection herewith or therewith, against (i) the Indenture Trustee or the
      Owner
      Trustee in its individual capacity, (ii) any owner of a beneficial interest
      in
      the Issuing Entity or (iii) any partner, owner, beneficiary, agent, officer,
      director, employee or agent of the Indenture Trustee or the Owner Trustee in
      its
      individual capacity, any holder of a beneficial interest in the Issuing Entity,
      the Owner Trustee or the Indenture Trustee or of any successor or assign of
      the
      Indenture Trustee or the Owner Trustee in its individual capacity, except as
      any
      such Person may have expressly agreed (it being understood that the Indenture
      Trustee and the Owner Trustee have no such obligations in their individual
      capacity) and except that any such partner, owner or beneficiary shall be fully
      liable, to the extent provided by applicable law, for any unpaid consideration
      for stock, unpaid capital contribution or failure to pay any installment or
      call
      owing to such entity. For all purposes of this Indenture, in the performance
      of
      any duties or obligations of the Issuing Entity hereunder, the Owner Trustee
      shall be subject to, and entitled to the benefits of, the terms and provisions
      of Article VI, VII and VIII of the Trust Agreement.

     

    Section
      10.15  No
      Petition.
      The
      Indenture Trustee, by entering into this Indenture, and each Noteholder, by
      accepting a Note, hereby covenant and agree that they will not at any time
      prior
      to one year from the date of termination hereof, institute against the Depositor
      or the Issuing Entity, or join in any institution against the Depositor or
      the
      Issuing Entity of, any bankruptcy, reorganization, arrangement, insolvency
      or
      liquidation proceedings, or other proceedings under any United States federal
      or
      state bankruptcy or similar law in connection with any obligations relating
      to
      the Notes, this Indenture or any of the Basic Documents.

     

    Section
      10.16  Inspection.
      The
      Issuing Entity agrees that, at its expense, on reasonable prior notice, it
      shall
      permit any representative of the Indenture Trustee, during the Issuing Entity’s
      normal business hours, to examine all the books of account, records, reports
      and
      other papers of the Issuing Entity, to make copies and extracts therefrom,
      to
      cause such books to be audited by Independent certified public accountants,
      and
      to discuss the Issuing Entity’s affairs, finances and accounts with the Issuing
      Entity’s officers, employees, and Independent certified public accountants, all
      at such reasonable times and as often as may be reasonably requested. The
      Indenture Trustee shall cause its representatives to hold in confidence all
      such
      information except to the extent disclosure may be required by law (and all
      reasonable applications for confidential treatment are unavailing) and except
      to
      the extent that the Indenture Trustee may reasonably determine that such
      disclosure is consistent with its obligations hereunder.

     

    ARTICLE
      XI

     

    TMP
      TRIGGER EVENT

     

    Section
      11.01  Discharge
      of Indenture and Transfer of Mortgage Loans.
      It is
      the intention of all parties to this Indenture that following the occurrence
      of
      a TMP Trigger Event and the satisfaction of all conditions precedent to a REMIC
      Conversion, as described below, that:

     

    (i)  There
      shall be a mandatory surrender to the Issuer by the Holders thereof of the
      Class
      A-1, Class A-2, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
      M-6, Class M-7 and Class M-8 Notes in exchange for (the REMIC Class A-1, Class
      A-2, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
      M-7
      and Class M-8 Notes. There shall be a mandatory surrender to the Issuer by
      the
      Holders thereof of the Privately Offered Notes in exchange for the delivery
      to
      the Holders of the Privately Offered Notes of the Privately Offered
      Certificates.

     

    (ii)  All
      of
      the Mortgage Loans shall be transferred by the Issuer to the trustee named
      under
      a pooling and servicing agreement in exchange for (A) the Underlying REMIC
      Class
      A Certificates and Underlying REMIC Class M Certificates and (B) the delivery
      to
      the Holders
      of the Privately Offered Notes of the Privately Offered Certificates
      upon the
      surrender of the Privately Offered Notes to the Note Registrar;

     

    (iii)  Concurrently
      with a REMIC Conversion, this Indenture shall be discharged pursuant to Section
      4.10.

     

    Section
      11.02  Conditions
      Precedent to a REMIC Conversion.
      Prior
      to a REMIC Conversion following a TMP Trigger Event:

     

    (i)  the
      Master Servicer shall have purchased of all REO Properties from the Issuing
      Entity at their fair market value, provided, however, that to the extent that
      the purchase price of the sale of such REO Properties would result in the
      allocation of a Realized Loss to any class of Offered Notes, the Secured Party
      causing the TMP Trigger Event shall deliver an amount equal to such Realized
      Losses to the Indenture Trustee for deposit in the Payment Account;

     

    (ii)  the
      Indenture Trustee shall have made provision for payment for any initial or
      ongoing additional administrative expenses associated with the REMIC elections
      as contemplated in Exhibit M to the Trust Agreement;

     

    (iii)  the
      Secured Party shall, at its expense, have obtained a REMIC opinion of counsel
      from nationally recognized tax counsel as to the trust estate.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    IN
      WITNESS WHEREOF, the Issuing Entity and the Indenture 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.

     

    
      	
              GSC
                Capital Corp. Mortgage Trust 2006-2, as Issuing Entity

              By:
                Wilmington Trust Company, not in its individual capacity, but solely
                as
                Owner Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Name: 

            
	 	
              Title: 

            
	 
	
              THE
                BANK OF NEW YORK, as Indenture Trustee

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	
              By:

            	 
	 	
              Name: 

            
	 	
              Title: 

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              STATE
                OF NEW YORK

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            	 
	 	 	 

    

    On
      this
23rd
      day of
June,
      2006, before me personally appeared _____________ to me known, who being by
      me
      duly sworn, did depose and say, that s/he is a(n) ______________ of the
      Indenture Trustee, one of the corporations described in and which executed
      the
      above instrument; and that he signed his name thereto by like
      order.

     

    
      	 	
              Notary
                Public

            
	 	 
	 	
              NOTARY
                PUBLIC

            

    

    

     

    [NOTARIAL
      SEAL]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF DELAWARE

            	
              )

            	 
	 	
              )

            	
              ss.:

            
	
              COUNTY
                OF NEW CASTLE

            	
              )

            	 
	 	 	 

    

    On
      this
      23rd
      day of
      June, 2006, before me personally appeared ________________ to me known, who
      being by me duly sworn, did depose and say, that s/he is a(n)
      _______________________ of the Owner Trustee, one of the entities described
      in
      and which executed the above instrument; and that she signed her name thereto
      by
      like order.

     

    
      	 	
              Notary
                Public

            
	 	 
	 	
              NOTARY
                PUBLIC

            

    

    

     

    [NOTARIAL
      SEAL]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      A-1

     

    Exhibit
      A-1

    through
      A-4

    [Exhibits
      A-1 through A-4 are

    photocopies
      of such Notes as

    DELIVERED.]

     

    [SEE
      APPROPRIATE DOCUMENTS DELIVERED AT CLOSING.]

     

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

          

        

      

    EXHIBIT
      B

     

    FORM
      OF
      TRANSFEROR CERTIFICATE FOR PRIVATE CERTIFICATES

     

    Wilmington
      Trust Company

    1100
      North Market Street

    Rodney
      Square North

    Wilmington,
      Delaware 19890

     

    The
      Bank
      of New York

    101
      Barclay Street

    New
      York,
      New York 10286

    

    
      	
            	
              Re:

            	
              Proposed
                Transfer of [Class __] Notes] GSC Capital Corp. Mortgage Trust 2006-2
                

            

    

    

    Gentlemen:

     

    This
      certification is being made by ____________________ (the “Transferor”) in
      connection with the proposed Transfer to _____________________ (the
“Transferee”) of the [Class [__] Notes] (the “Notes”) issued pursuant to the
      Indenture, dated June 23, 2006, being referred to herein as the “Indenture”)
      between GSC Capital Corp. Mortgage Trust 2006-2, as issuing entity, and The
      Bank
      of New York as indenture trustee (the “Indenture”). Initially capitalized terms
      used but not defined herein have the meanings assigned to them in the Indenture.
      The Transferor hereby certifies, represents and warrants to, and covenants
      with,
      the Owner Trustee and the Indenture Trustee that:

     

    Neither
      the Transferor nor anyone acting on its behalf has (a) offered, pledged, sold,
      disposed of or otherwise transferred any Note, any interest in any Note 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 Note, any
      interest in any Note or any other similar security from any person in any
      manner, (c) has otherwise approached or negotiated with respect to any Note,
      any
      interest in any Note or any other similar security with any person in any
      manner, (d) has made any general solicitation by means of general advertising
      or
      in any other manner, or (e) has taken any other action, that (as to any of
      (a)
      through (e) above) would constitute a distribution of the Notes under the
      Securities Act of 1933 (the “Act”), that would render the disposition of any
      Note a violation of Section 5 of the Act or any state securities law, or that
      would require registration or qualification pursuant thereto. The Transferor
      will not act in any manner set forth in the foregoing sentence with respect
      to
      any Note. The Transferor has not and will not sell or otherwise transfer any
      of
      the Notes, except in compliance with the provisions of the
      Indenture.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Date:

            	 	 	 
	 	 	 	
              Authorized
                Officer

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              Signature

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              Name

            
	 	 	 	 
	 	 	 	 
	 	 	 	
              Title

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      C

     

    FORM
      OF
      RULE 144A INVESTMENT LETTER

     

    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 warrants and represents to, and covenants with, the Indenture Trustee
      pursuant to Section 4.03 of the Indenture (the “Indenture”), dated as of June
      23, 2006, between GSC Capital Corp. Mortgage Trust 2006-2, as Issuing Entity,
      and The Bank of New York, as Indenture 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 Indenture Trustee, the Owner Trustee,
      the Master Servicer or the Servicer.

     

    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 warrants and represents to, and covenants with, CHL, the Seller, the
      Indenture Trustee, Owner Trustee, the Note Registrar, Master Servicer and the
      Depositor that either (1) the Buyer is (A) not an employee benefit plan (within
      the meaning of Section 3(3) of the Employee Retirement Income Security Act
      of
      1974, as amended (“ERISA”)), or a plan (within the meaning of Section 4975(e)(1)
      of the Internal Revenue Code of 1986 (“Code”)), which (in either case) is
      subject to ERISA or Section 4975 of the Code (both a “Plan”), and (B) is not
      directly or indirectly purchasing the Rule 144A Securities on behalf of, as
      investment manager of, as named fiduciary of, as trustee of, or with “plan
      assets” of a Plan, or (2) the Buyer understands that registration of transfer of
      any Rule 144A Securities to any Plan, or to any Person acting on behalf of
      any
      Plan, will not be made unless such Plan delivers an opinion of its counsel,
      addressed and satisfactory to CHL, the Note Registrar, the Owner Trustee, the
      Indenture Trustee, the Master Servicer and the Depositor, to the effect that
      the
      purchase and holding of the Rule 144A Securities by, on behalf of or with “plan
      assets” of any Plan is permissible under applicable law, would not constitute or
      result in a prohibited transaction under ERISA or Section 4975 of the Code,
      and
      would not subject the Depositor, the Owner Trustee, the Indenture Trustee,
      the
      Note Registrar, the Seller, CHL
      or
      the
      Master Servicer to any obligation or liability (including liabilities under
      ERISA or Section 4975 of the Code) in addition to those undertaken in the
      Indenture, which Opinion of Counsel shall not be an expense of the Depositor,
      the Owner Trustee, the Indenture Trustee, the Note Registrar, the Seller, CHL
      or
      the Master Servicer.

     

    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.

     

    
      	 	 	 	 
	
              Print
                Name of Seller

            	 	 	
              Print
                Name of Buyer

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	 	 	
                
                By:

            	 
	 	
              Name:

            	 	 	
              Name:

            
	 	
              Title:

            	 	 	
              Title:

            
	 	 	 	 	 
	
              Taxpayer
                Identification:

            	 	 	
              Taxpayer
                Identification:

            
	 	 	 	 
	
              No:

            	 	 	
                
                No:

            	 
	 	 	 	 	 
	
              Date:

            	 	 	
                
                Date:

            	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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.

    

      

    

    
      
        
          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.

        

      

    
      	___	
              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

            
	 	 
	___	
              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.

            
	 	 
	___	
              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.

     

    5.
      The
      Buyer acknowledges that it is familiar with Rule 144A and understands that
      the
      seller to it and other parties related to the Certificates are relying and
      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 Securities only for the Buyer’s own
                account?

            
	
              Yes

            	
               

            	
              No

            
	 	 	 
	 	 	 	 

    

    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:

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    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.

     

    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:

            	 

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      D

     

    FORM
      OF
      INVESTMENT LETTER

     

    [NON-RULE
      144A]

     

    [DATE]

     

    Wilmington
      Trust Company

    1100
      North Market Street

    Rodney
      Square North

    Wilmington,
      Delaware 19890

     

    The
      Bank
      of New York

    101
      Barclay Street

    New
      York,
      New York 10286

    

    
      	 	
              Re:

            	
              GSC
                Capital Corp. Mortgage Trust 2006-2, GSC Alternative Loan Trust Notes,
                Series 2006-2, Class [___] (the
“Notes”)

            

    

    

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above-captioned Notes, we certify that
      (a) we understand that the Notes are not being registered under the Securities
      Act of 1933, as amended (the “Act”), or any state securities laws and are being
      transferred to us in a transaction that is exempt from the registration
      requirements of the Act and any such laws, (b) we are an “accredited investor,”
as defined in Regulation D under the Act, and have such knowledge and experience
      in financial and business matters that we are capable of evaluating the merits
      and risks of investments in the Notes, (c) we have had the opportunity to ask
      questions of and receive answers from the Depositor concerning the purchase
      of
      the Notes and all matters relating thereto or any additional information deemed
      necessary to our decision to purchase the Notes, (d) we are not an employee
      benefit plan that is subject to the Employee Retirement Income Security Act
      of
      1974, as amended, or a plan that is subject to Section 4975 of the Internal
      Revenue Code of 1986, as amended, nor are we acting on behalf of any such plan,
      (e) we are acquiring the Notes for investment for our own account and not with
      a
      view to any distribution of such Notes (but without prejudice to our right
      at
      all times to sell or otherwise dispose of the Notes in accordance with clause
      (g) below), (f) we have not offered or sold any Notes to, or solicited offers
      to
      buy any Notes from, any person, or otherwise approached or negotiated with
      any
      person with respect thereto, or taken any other action which would result in
      a
      violation of Section 5 of the Act, and (h) we will not sell, transfer or
      otherwise dispose of any Notes unless (1) such sale, transfer or other
      disposition is made pursuant to an effective registration statement under the
      Act or is exempt from such registration requirements, and if requested, we
      will
      at our expense provide an Opinion of Counsel satisfactory to the addressees
      of
      this certificate that such sale, transfer or other disposition may be made
      pursuant to an exemption from the Act, (2) the purchaser or transferee of such
      Note has executed and delivered to you a certificate to substantially the same
      effect as this certificate, and (3) the purchaser or transferee has otherwise
      complied with any conditions for transfer set forth in the
      Indenture.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	 	 	 	 	 	
              Very
                truly yours,

            
	 	 	 	 	 	 	 
	 	 	 	 	 	
              [TRANSFEREE]

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	
              By:

            	 
	 	 	 	 	 	 	
              Authorized
                Officer

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      E

     

    FORM
      OF TRANSFEREE CERTIFICATE

     

    Wilmington
      Trust Company 

    1100
      North Market Street

    Rodney
      Square North 

    Wilmington,
      Delaware 19890

     

    The
      Bank
      of New York

    101
      Barclay Street

    New
      York,
      New York 10286

     

    
      	 	
              Re:

            	
              Proposed
                Transfer of [Class B-1] [Class C] Notes,

              GSC
                Capital Corp. Mortgage Trust 2006-2

            

    

    Gentlemen:

     

    This
      certification is being made by _________ (the “Transferee”) in connection with
      the proposed transfer (the “Transfer”) by _________ of a [Class B-1] [Class C]
      Note issued pursuant to the Indenture, dated as of June 23, 2006 (the
“Indenture”), bewteen GSC Capital Corp. Mortgage Trust 2006-2, as issuer, The
      Bank of New York, as indenture trustee (the “Indenture Trustee”). Initially
      capitalized terms used but not defined herein have the meanings assigned to
      them
      in the Indenture. The Transferee hereby certifies, represents and warrants
      to,
      and covenants with, the Owner Trustee, the Note Registrar and the Indenture
      Trustee that:

     

    (b)  The
      Transferee is a real estate investment trust (“REIT”) within the meaning of
      Section 856(a) of the Code, or a qualified REIT subsidiary (“QRS”) with the
      meaning of Section 856(i) of the Code, or an entity disregarded as an entity
      separate from a REIT or a QRS.

     

    (c)  Following
      the Transfer, 100% of the Privately Offered Notes and Owner Trust Certificates
      (other than any Privately Offered Notes with respect to which a “will be debt”
opinion has been rendered by nationally recognized tax counsel and furnished
      to
      the Indenture Trustee and Note Registrar) will be owned by a single REIT,
      directly or indirectly through one or more QRSs of such REIT or one or more
      entities disregarded as entities separate from such REIT or such
      QRSs.

     

    Date:
       ____________________ _______________________

    Name
      of
      Transferee

     

    
      	 	 
	
              Signature

            	 
	 	 
	
              Name

            	 
	 	 
	
              Title

            	 

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      F

     

    FORM
      OF
      SWAP CONTRACT

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      G

     

    FORM
      OF
      SWAP CONTRACT ASSIGNMENT AGREEMENT

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    EXHIBIT
      H

     

    FORM
      OF
      SWAP CONTRACT ADMINISTRATION AGREEMENT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      I

     

    FORM
      OF
      SWAP GUARANTEE

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

      APPENDIX
        A

      DEFINITIONS

       

      Accepted
        Master Servicing Practices:
        With
        respect to any Mortgage Loan, those customary mortgage servicing practices
        of
        prudent mortgage servicing institutions that master service mortgage loans
        of
        the same type and quality as such Mortgage Loan in the jurisdiction where
        the
        related Mortgaged Property is located, to the extent applicable to the Indenture
        Trustee or the Master Servicer.

       

      Account:
        The
        Escrow Account, the Collection Account, the Payment Account or any other
        account
        related to the Trust Estate or the Mortgage Loans.

       

      Accrual
        Period:
        With
        respect to any Payment Date and each Class of Adjustable Rate Notes, the
        period
        commencing on the immediately preceding Payment Date (or, in the case of
        the
        first Payment Date, the Closing Date) and ending on the day immediately
        preceding such Payment Date. All calculations of interest on the Adjustable
        Rate
        Notes will be made on the basis of the actual number of days elapsed in the
        related Accrual Period and on a 360-day year. 

       

      Adjusted
        Net Mortgage Rate:
        As to
        each Mortgage Loan, the Mortgage Rate less the Expense Fee Rate.

       

      Adjusted
        Replacement Upfront Amount:
        As
        defined in Section 4.17.

       

      Adjustment
        Date:
        As to
        each Mortgage Loan, each date on which the related Mortgage Rate is subject
        to
        adjustment, as provided in the related Mortgage Note.

       

      Advance:
        The
        aggregate of the advances required to be made by the Master Servicer with
        respect to any Payment Date pursuant to Section 4.01 of the Sale and Servicing
        Agreement, the amount of any such advances being equal to the aggregate of
        payments of principal and interest on the Mortgage Loans (net of the Servicing
        Fees) on the Mortgage Loans that were due on the related Due Date and not
        received as of the close of business on the related Determination Date;
provided,
        however,
        with
        respect to each REO Property that has not been liquidated, that the net monthly
        rental income (if any) from such REO Property deposited in the Collection
        Account for such Payment Date pursuant to Section 3.11 of the Sale and Servicing
        Agreement may be used to offset such advance for the related REO
        Property.

       

      Amount
        Held for Future Payment:
        As to
        any Payment Date and Mortgage Loans, the aggregate amount held in the Collection
        Account at the close of business on the related Determination Date on account
        of
        (i) Principal Prepayments received after the related Prepayment Period and
        Liquidation Proceeds and Subsequent Recoveries received in the month of such
        Payment Date and (ii) all Scheduled Payments due after the related Due
        Date.

       

      Applied
        Realized Loss Amount:
        With
        respect to any Payment Date, the amount of Realized Losses with respect to
        the
        Mortgage Loans allocated to the Notes as provided in Section 3.28 of the
        Indenture which shall equal the amount, if any, by which the aggregate Note
        Principal Balance of Adjustable Rate Notes (after all distributions of principal
        on such Payment Date) exceeds the aggregate Stated Principal Balance of the
        Mortgage Loans for such Distribution Date.

       

      Appraised
        Value:
        The
        appraised value of the Mortgaged Property based upon the appraisal made for
        the
        originator by an independent fee appraiser at the time of the origination
        of the
        related Mortgage Loan, or the sales price of the Mortgaged Property at the
        time
        of such origination, whichever is less, or with respect to any Mortgage Loan
        originated in connection with a refinancing, the appraised value of the
        Mortgaged Property based upon the appraisal made at the time of such
        refinancing.

       

      Authorized
        Newspaper:
        A
        newspaper of general circulation in the Borough of Manhattan, The City of
        New
        York, printed in the English language and customarily published on each Business
        Day, whether or not published on Saturdays, Sundays or holidays.

       

      Available
        Funds Rate:
        With
        respect to any Payment Date, a per annum rate equal to (A) the product of
        (i)
        360 divided by the actual number of days in the related Accrual Period and
        (ii)
        a fraction, expressed as a percentage, the numerator of which is the amount
        of
        Interest Funds for the related Payment Date and the denominator of which
        is the
        aggregate Note Principal Balance of the Senior Notes and Subordinate Notes
        minus
        (B) a per annum rate, equal to the product of (i) 360 divided by the actual
        number of days in the related Accrual Period and (ii) the sum of any Net
        Swap
        Payments and any Swap Termination Payment (other than certain Swap Termination
        Payments resulting from an event of default or certain terminations events
        with
        respect to the Swap Provider) payable by the Issuing
        Entity
        under
        the Swap Contract for such Payment Date, divided by the aggregate Note Principal
        Balance of the Senior Notes and Subordinate Notes immediately prior to such
        Payment Date.

       

      Balloon
        Mortgage Loan:
        Any
        Mortgage Loan wherein the Mortgage Note matures prior to full amortization
        and
        requires a final and accelerated payment of principal.

       

      Bankruptcy
        Code:
        Title
        11 of the United States Code.

       

      Basic
        Documents:
        The
        Trust Agreement, the Certificate of Trust, the Indenture, the Swap Contract,
        the
        Swap Contract Assignment Agreement, the Swap Contract Administration Agreement,
        the Sale and Servicing Agreement and the other documents and certificates
        delivered in connection with any of the above.

       

      Blanket
        Mortgage:
        The
        mortgage or mortgages encumbering the Cooperative Property.

       

      Book-Entry
        Notes:
        Any of
        the Notes that shall be registered in the name of the Depository or its nominee,
        the ownership of which is reflected on the books of the Depository or on
        the
        books of a person maintaining an account with the Depository (directly, as
        a
“Depository Participant”, or indirectly, as an indirect participant in
        accordance with the rules of the Depository and as described in Section 4.07
        the
        Indenture). As of the Closing Date, each Class of Offered Notes constitutes
        a
        Class of Book-Entry Notes.

       

      Business
        Day:
        Any day
        other than (i) a Saturday or a Sunday, or (ii) a day on which banking
        institutions in the State of California or the State of New York are authorized
        or obligated by law or executive order to be closed. 

       

      Certificate
        of Trust:
        The
        Certificate of Trust filed for the Trust pursuant to Section 3810(a) of the
        Statutory Trust Statute.

       

      Certificateholder
        or
Holder:
        The
        Person in whose name a Certificate is registered in the Certificate Register.
        Owners of Certificates that have been pledged in good faith may be regarded
        as
        Holders if the pledgee establishes to the satisfaction of the Indenture Trustee
        or the Owner Trustee, as the case may be, the pledgee’s right so to act with
        respect to such Certificates and that the pledgee is not the Issuing Entity,
        any
        other obligor upon the Certificates or any Affiliate of any of the foregoing
        Persons.

       

      Certificates,
        Owner Trust Certificates or Trust Certificates:
        The GSC
        Capital Corp. Mortgage Trust 2006-2, Owner Trust Certificates, Series 2006-2,
        evidencing the beneficial ownership interest in the Trust and executed by
        the
        Owner Trustee in substantially the form set forth in Exhibit A to the Trust
        Agreement.

       

      CHL:
        Countrywide Home Loans, Inc.

       

      Class:
        All
        Notes bearing the same Class designation as set forth in Section 2.02 of
        the
        Indenture.

       

      Class
        A Principal Distribution Amount:
        For any
        Payment Date, the excess of (i) the aggregate Note Principal Balance of the
        Senior Notes immediately prior to such Payment Date, over (ii) the lesser
        of (x)
        86.10% of the aggregate Stated Principal Balance of the Mortgage Loans for
        such
        Payment Date after giving effect to distributions to be made on that Payment
        Date and (y) the aggregate Stated Principal Balance of the Mortgage Loans
        for
        such Payment Date after giving effect to distributions to be made on that
        Payment Date minus the OC Floor.

       

      Class
        A-1 Note:
        Any
        Note designated as a “Class A-1 Note” on the face thereof, in the form of
        Exhibit A-1 hereto, representing the right to payments as set forth
        herein.

       

      Class
        A-2 Note:
        Any
        Note designated as a “Class A-2 Note” on the face thereof, in the form of
        Exhibit A-1 hereto, representing the right to payments as set forth
        herein.

       

      Class
        A REMIC Notes:
        The
        Class A-1 REMIC Notes and Class A-2 REMIC Notes.

       

      Class
        A-1 REMIC Note:
        Any
        Class A-1 Note issued
        pursuant to Exhibit M to the Trust Agreement.

       

      Class
        A-2 REMIC Note:
        Any
        Class A-2 Note issued pursuant to Exhibit M to the Trust Agreement.

       

      Class
        A Notes:
        The
        Class A-1 Notes and Class A-2 Notes.

       

      Class
        B-1 Note:
        Any
        Note designated as a “Class B-1 Note” on the face thereof, in the form of
        Exhibit A-3 hereto, representing the right to payments as set forth
        herein.

       

      Class
        C Note:
        Any
        Note designated as a “Class C Note” on the face thereof, in the form of Exhibit
        A-4 hereto, representing the right to payments as set forth herein.

       

      Class
        M Notes:
        The
        Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7
        and
        Class M-8 Notes.

       

      Class
        M-1 Note:
        Any
        Note designated as a “Class M-1 Note” on the face thereof, in the form of
        Exhibit A-2 hereto, representing the right to payments as set forth
        herein.

       

      Class
        M-2 Note:
        Any
        Note designated as a “Class M-2 Note” on the face thereof, in the form of
        Exhibit A-2 hereto, representing the right to payments as set forth
        herein.

       

      Class
        M-3 Note:
        Any
        Note designated as a “Class M-3 Note” on the face thereof, in the form of
        Exhibit A-2 hereto, representing the right to payments as set forth
        herein.

       

      Class
        M-4 Note:
        Any
        Note designated as a “Class M-4 Note” on the face thereof, in the form of
        Exhibit A-2 hereto, representing the right to payments as set forth
        herein.

       

      Class
        M-5 Note:
        Any
        Note designated as a “Class M-5 Note” on the face thereof, in the form of
        Exhibit A-2 hereto, representing the right to payments as set forth
        herein.

       

      Class
        M-6 Note:
        Any
        Note designated as a “Class M-6 Note” on the face thereof, in the form of
        Exhibit A-2 hereto, representing the right to payments as set forth
        herein.

       

      Class
        M-7 Note:
        Any
        Note designated as a “Class M-7 Note” on the face thereof, in the form of
        Exhibit A-2 hereto, representing the right to payments as set forth
        herein.

       

      Class
        M-8 Note:
        Any
        Note designated as a “Class M-8 Note” on the face thereof, in the form of
        Exhibit A-2 hereto, representing the right to payments as set forth
        herein.

       

      Class
        M REMIC Notes:
        The
        Class M-1 REMIC Notes, Class M-2 REMIC Notes, Class M-3 REMIC Notes, Class
        M-4
        REMIC Notes, Class M-5 REMIC Notes, Class M-6 REMIC Notes, Class M-7 REMIC
        Notes
        and Class M-8 REMIC Notes. 

       

      Class
        M-1 REMIC Note:
        Any
        Class M-1 Note issued pursuant to Exhibit M to the Trust Agreement.

       

      Class
        M-2 REMIC Note:
        Any
        Class M-2 Note issued pursuant to Exhibit M to the Trust Agreement.

       

      Class
        M-3 REMIC Note:
        Any
        Class M-3 Note issued pursuant to Exhibit M to the Trust Agreement.

       

      Class
        M-4 REMIC Note:
        Any
        Class M-4 Note issued pursuant to Exhibit M to the Trust Agreement.

       

      Class
        M-5 REMIC Note:
        Any
        Class M-5 Note issued pursuant to Exhibit M to the Trust Agreement.

       

      Class
        M-6 REMIC Note:
        Any
        Class M-6 Note issued pursuant to Exhibit M to the Trust Agreement.

       

      Class
        M-7 REMIC Note:
        Any
        Class M-7 Note issued pursuant to Exhibit M to the Trust Agreement.

       

      Class
        M-8 REMIC Note:
        Any
        Class M-8 Note issued pursuant to Exhibit M to the Trust Agreement.

       

      Closing
        Date:
        June
        23, 2006.

       

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

       

      Collection
        Account:
        The
        separate Eligible Account created and initially maintained by the Master
        Servicer pursuant to Section 3.05(b) of the Sale and Servicing Agreement
        with at
        Countrywide Bank, N.A., which is an affiliate of the Master Servicer, in
        the
        name of the Master Servicer for the benefit of the Indenture Trustee on behalf
        of the Noteholders and designated “Countrywide Home Loans Servicing LP in trust
        for registered holders of GSC Alternative Loan Trust Notes, Series 2006-2”.
        Funds in the Collection Account shall be held in trust for the Noteholders
        for
        the uses and purposes set forth in the Sale and Servicing
        Agreement.

       

      Combined
        Loan-to-Value Ratio:
        The
        fraction, expressed as a percentage, the numerator of which is the sum of
        (x)
        the principal balance of the related Mortgage Loan at origination and (y)
        the
        outstanding principal balance at the date of determination of the Mortgage
        Loan
        of any senior mortgage loan, and the denominator of which is the Appraised
        Value
        of the related Mortgaged Property. 

       

      Commission:
        Means
        the U.S. Securities and Exchange Commission.

       

      Compensating
        Interest:
        With
        respect to any Mortgage Loan, an amount to be applied to the interest portion
        of
        a Prepayment Interest Shortfall on such Mortgage Loan pursuant to Section
        4.02
        of the Sale and Servicing Agreement which amount in the aggregate in any
        month
        shall not exceed one half of the Servicing Fee for that month. 

       

      Confirmation:
        The
        confirmation, reference numbers 1254100B, with a trade date of June 20, 2006
        evidencing a transaction between the Swap Counterparty and CHL relating to
        the
        Swap Contract.

       

      Cooperative
        Corporation:
        The
        entity that holds title (fee or an acceptable leasehold estate) to the real
        property and improvements constituting the Cooperative Property and which
        governs the Cooperative Property, which Cooperative Corporation must qualify
        as
        a Cooperative Housing Corporation under Section 216 of the Code.

       

      Coop
        Shares:
        Shares
        issued by a Cooperative Corporation.

       

      Cooperative
        Loan:
        Any
        Mortgage Loan secured by Coop Shares and a Proprietary Lease.

       

      Cooperative
        Property:
        The
        real property and improvements owned by the Cooperative Corporation, including
        the allocation of individual dwelling units to the holders of the Coop Shares
        of
        the Cooperative Corporation.

       

      Cooperative
        Unit:
        A
        single family dwelling located in a Cooperative Property.

       

      Corporate
        Trust Office:
        With
        respect to the Indenture Trustee, the designated office of the Indenture
        Trustee
        in the State of New York where at any particular time its corporate trust
        business with respect to the Basic Documents shall be administered, which
        office
        at the date of the execution of the Basic Documents to which it is a party
        is
        located at 101 Barclay Street, New York, New York 10286 (Attention: Corporate
        Trust MBS Administration), telephone: (212) 815-3236, facsimile: (212) 815-3883
        and with respect to the Owner Trustee, the designated office of the Owner
        Trustee in the State of Delaware where at any particular time its corporate
        trust business with respect to the Basic Documents shall be administered,
        which
        office at the date of the execution of the Basic Documents to which it is
        a
        party is located at: Wilmington Trust Company, Rodney Square North, 1100
        North
        Market Street, Wilmington, Delaware 19890 (Attention: Corporate Trust
        Administration).

       

      Cumulative
        Loss Trigger Event:
        With
        respect to any Payment Date exists if the aggregate amount of Realized Losses
        on
        the Mortgage Loans from (and including) the Cut-off Date to (and including)
        the
        last day of the related Due Period (reduced by the aggregate amount of any
        Subsequent Recoveries received through the last day of that Due Period) a
        Cumulative Loss Trigger Event exceeds the applicable percentage, for such
        Distribution Date, of the Cut-off Date Principal Balance of the Mortgage
        Loans,
        as set forth below:

       

      
        	
                Distribution
                  Date

              	
                Percentage

              
	
                July
                  2008 — June 2009

              	
                0.25%
                  with respect to July
                  2008,
                  plus an additional 1/12th of 0.35% for each month thereafter through
                  June
                  2009

              
	
                July
                  2009 — June 2010

              	
                0.60%
                  with respect to July
                  2009,
                  plus an additional 1/12th of 0.45% for each month thereafter through
                  June
                  2010

              
	
                July
                  2010 — June 2011

              	
                1.05%
                  with respect to July 2010, plus an additional 1/12th of 0.40% for
                  each
                  month thereafter through June
                  2011

              
	
                July
                  2011 — June 2012

              	
                1.45%
                  with respect to July
                  2011,
                  plus an additional 1/12th of 0.30% for each month thereafter through
                  June
                  2012

              
	
                April
                  2012 and thereafter

              	
                1.75%

              

      

      

      Current
        Interest:
        With
        respect to each Class of Adjustable Rate Notes and each Payment Date, the
        interest accrued at the applicable Note Rate for the applicable Accrual Period
        on the Note Principal Balance of such Class immediately prior to such Payment
        Date.

       

       

      Cut-off
        Date:
        The
        later of (x) June 1, 2006 and (y) the date of origination of such Mortgage
        Loan.

       

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

       

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

       

      Defective
        Mortgage Loan:
        Any
        Mortgage Loan that is required to be repurchased pursuant to Section 2.02
        or 2.03 of the Sale and Servicing Agreement.

       

      Deficient
        Valuation:
        With
        respect to any Mortgage Loan, a valuation by a court of competent jurisdiction
        of the Mortgaged Property in an amount less than the then outstanding
        indebtedness under such Mortgage Loan, or any reduction in the amount of
        principal to be paid in connection with any Scheduled Payment that results
        in a
        permanent forgiveness of principal, which valuation or reduction results
        from an
        order of such court that is final and non-appealable in a proceeding under
        the
        Bankruptcy Code.

       

      Definitive
        Notes:
        As
        defined in Section 4.09 of the Indenture.

       

      Delay
        Delivery Mortgage Loans:
        The
        Mortgage Loans identified on the schedule of Mortgage Loans set forth on
        Exhibit
        A-2 to the Sale and Servicing Agreement for which certain of the related
        Mortgage Note or lost note affidavit is not delivered to the Indenture Trustee
        on or prior to the Closing Date. The Depositor shall deliver (or cause delivery
        of) the Mortgage Notes to the Indenture Trustee: (A) with respect to at least
        50% of the Mortgage Loans, not later than the Closing Date, (B) with respect
        to
        at least an additional 40% of the Mortgage Loans, not later than 20 days
        after
        the Closing Date, and (C) with respect to the remaining Mortgage Loans, not
        later than thirty days after the Closing Date. To the extent that CHL shall
        be
        in possession of any Mortgage Note with respect to any Delay Delivery Loan,
        until delivery of such Mortgage Note to the Indenture Trustee as provided
        in
        Section 2.01 of the Sale and Servicing Agreement, CHL shall hold such Mortgage
        Notes as agent and in trust for the Indenture Trustee.

       

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

       

      Delinquency
        Trigger Event:
        With
        respect to any Payment Date on or after the Stepdown Date, a Delinquency
        Trigger
        Event exists if the Rolling Delinquency Percentage equals or exceeds the
        product
        of the applicable percentage listed below for the most senior class of
        Adjustable Rate Notes then outstanding and the Senior Enhancement
        Percentage:

       

      

      
        	
                Class

              	
                Percentage

              
	
                Class
                  A

              	
                 
                  [40.00%]

              
	
                Class
                  M-1

              	
                 
                  [51.00%]

              
	
                Class
                  M-2

              	
                 
                  [62.25%]

              
	
                Class
                  M-3

              	
                 
                  [79.25%]

              
	
                Class
                  M-4

              	
                 
                  [92.50%]

              
	
                Class
                  M-5

              	
                [111.00%]

              
	
                Class
                  M-6

              	
                [139.00%]

              
	
                Class
                  M-7

              	
                [185.25%]

              
	
                Class
                  M-8

              	
                [278.00%]

              
	
                Class
                  B-1

              	
                [555.75%]

              

      

      

       

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

       

      Denomination:
        With
        respect to each Note, the amount set forth on the face thereof as the “Initial
        Note Principal Balance of this Note” or the “Initial Notional Amount of this
        Note” or, if neither of the foregoing, the Percentage Interest appearing on the
        face thereof.

       

      Depositor:
        CWALT,
        Inc., a Delaware corporation, or its successor in interest.

       

      Depository:
        The
        initial Depository shall be The Depository Trust Company, the nominee of
        which
        is Cede & Co., or any other organization registered as a “clearing agency”
pursuant to Section 17A of the Securities Exchange Act of 1934, as amended.
        The
        Depository shall initially be the registered Holder of the Book-Entry Notes.
        The
        Depository shall at all times be a “clearing corporation” as defined in Section
        8-102(a)(5) of the Uniform Commercial Code of the State of New
        York.

       

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

       

      Delinquency
        Notice:
        As
        defined in Section 3.11(c)(iii) of the Sale and Servicing
        Agreement.

       

      Determination
        Date:
        As to
        any Payment Date, the 15th day of each month or, if such 15th day is not
        a
        Business Day, the preceding Business Day; provided, however, that if such
        15th
        day or such Business Day, whichever is applicable, is less than two Business
        Days prior to the related Payment Date, the Determination Date shall be the
        first Business Day that is two Business Days preceding such Payment
        Date.

       

      Due
        Date:
        With
        respect to any Mortgage Loan and Due Period, the due date for scheduled payments
        of interest and/or principal on that Mortgage Loan occurring in such Due
        Period
        as provided in the related Mortgage Note.

       

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

       

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

       

      Equity
        Securities:
        The
        Trust Certificate and the Class B-1 Notes and Class C Notes.

       

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

       

      Event
        of Default:
        With
        respect to the Indenture, any one of the following events (whatever the reason
        for such Event of Default and whether it shall be voluntary or involuntary
        or be
        effected by operation of law or pursuant to any judgment, decree or order
        of any
        court or any order, rule or regulation of any administrative or governmental
        body):

       

      (i)  a
        failure
        by the Issuing Entity to pay Current Interest due on any Class of Notes
        Outstanding; or

       

      (ii)  the
        failure by the Issuing Entity on the final Payment Date to reduce the Note
        Principal Balance of any Class of Notes Outstanding to zero; or

       

      (iii)  there
        occurs a default in the observance or performance of any covenant or agreement
        of the Issuing Entity made in the Indenture, or any representation or warranty
        of the Issuing Entity made in the Indenture or in any certificate or other
        writing delivered pursuant hereto or in connection herewith proving to have
        been
        incorrect in any material respect as of the time when the same shall have
        been
        made, and such default shall continue or not be cured, or the circumstance
        or
        condition in respect of which such representation or warranty was incorrect
        shall not have been eliminated or otherwise cured, for a period of 30 days
        after
        there shall have been given, by registered or certified mail, to the Issuing
        Entity by the Indenture Trustee, the Holders of at least 25% of the aggregate
        Note Principal Balance of the Outstanding Offered Notes, a written notice
        specifying such default or incorrect representation or warranty and requiring
        it
        to be remedied and stating that such notice is a notice of default hereunder;
        or

       

      (iv)  there
        occurs the filing of a decree or order for relief by a court having jurisdiction
        in the premises in respect of the Issuing Entity or any substantial part
        of the
        Trust Estate in an involuntary case under any applicable federal or state
        bankruptcy, insolvency or other similar law now or hereafter in effect, or
        appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
        or
        similar official of the Issuing Entity or for any substantial part of the
        Trust
        Estate, or ordering the winding-up or liquidation of the Issuing Entity's
        affairs, and such decree or order shall remain unstayed and in effect for
        a
        period of 60 consecutive days; or

       

      (v)  there
        occurs the commencement by the Issuing Entity of a voluntary case under any
        applicable federal or state bankruptcy, insolvency or other similar law now
        or
        hereafter in effect, or the consent by the Issuing Entity to the entry of
        an
        order for relief in an involuntary case under any such law, or the consent
        by
        the Issuing Entity to the appointment or taking possession by a receiver,
        liquidator, assignee, custodian, trustee, sequestrator or similar official
        of
        the Issuing Entity or for any substantial part of the assets of the Trust
        Estate, or the making by the Issuing Entity of any general assignment for
        the
        benefit of creditors, or the failure by the Issuing Entity generally to pay
        its
        debts as such debts become due, or the taking of any action by the Issuing
        Entity in furtherance of any of the foregoing.

       

      Excess
        Cashflow:
        With
        respect to any Payment
        Date
        the
        sum of (i) the amount remaining after the distribution of interest to
        Noteholders for such Payment Date pursuant to Section 4.02(a)(iii) and (ii)
        the
        amount remaining after the distribution of principal to Noteholders for such
        Payment Date pursuant to Section 4.02(b)(i)(B) or 4.02(b)(ii)(B).

       

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

       

      Excess
        Proceeds:
        With
        respect to any Liquidated Mortgage Loan, the amount, if any, by which the
        sum of
        any Liquidation Proceeds of such Mortgage Loan received in the calendar month
        in
        which such Mortgage Loan became a Liquidated Mortgage Loan plus any Subsequent
        Recoveries received with respect to such Mortgage Loan, net of any amounts
        previously reimbursed to the Master Servicer as Nonrecoverable Advance(s)
        with
        respect to such Mortgage Loan pursuant to Section 3.08(a)(iv) of the Sale
        and Servicing Agreement, exceeds (i) the unpaid principal balance of such
        Liquidated Mortgage Loan as of the Due Date in the month in which such Mortgage
        Loan became a Liquidated Mortgage Loan plus (ii) accrued interest at the
        Mortgage Rate from the Due Date as to which interest was last paid or advanced
        (and not reimbursed) to Noteholders up to the Due Date applicable to the
        Payment
        Date immediately following the calendar month during which such liquidation
        occurred.

       

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

       

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

       

      Expense
        Fee Rate:
        The sum
        of (i) the Servicing Fee Rate, (ii) the Lender-Paid PMI Fee Rate, if applicable,
        and (iii) the Indenture Trustee Fee Rate.

       

      Extra
        Principal Distribution Amount:
        With
        respect to any Payment Date, the lesser of (1) the Overcollateralization
        Deficiency Amount for such Payment Date and (2) the Excess Cashflow for such
        Payment Date available for payment thereof pursuant to Section
        4.02(c)(i).

       

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

       

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

       

      Fair
        Value Price:
        As
        defined in Section 3.11(c)(ii) of the Sale and Servicing Agreement.

       

      Final
        Certification:
        The
        final certification delivered by the Indenture Trustee pursuant to Section
        2.02
        of the Sale and Servicing Agreement in the form attached thereto as Exhibit
        B-3.

       

      Fitch:
        Fitch,
        Inc.

       

      Foreclosure
        Restricted Loan:
        Any
        Mortgage Loan that is contractually more than 89 days delinquent as of the
        REMIC
        Closing Date which will be identified on Exhibit H to the Sale and Servicing
        Agreement.

       

      Form
        10-D Disclosure Item:
        The
        following items, in addition to the information presented on the Monthly
        Statement, required to be reported following a Payment Date on Form 10-D
        and
        applicable to the parties listed:

       

      (i)
        With
        respect to the Master Servicer, any material modifications, extensions or
        waivers to pool asset terms, fees, penalties or payments during the distribution
        period or that have cumulatively become material over time;

       

      (ii)
        With
        respect to the Sponsor and the Depositor, information regarding any new issuance
        of asset-backed securities backed by the same asset pool;

       

      (iii)
        With respect to the Master Servicer, CHL, the Sponsor, the Seller, the
        Depositor, the Owner Trustee and the Indenture Trustee, any legal proceedings
        pending against the foregoing entities, or their respective property, that
        is
        material to Noteholders, including proceedings known to be contemplated by
        governmental authorities;

       

      (iv)
        With
        respect to the Sponsor, the Depositor and the Issuing Entity and with respect
        to
        any sale of securities by the Sponsor, Depositor or Issuing Entity, that
        are
        backed by the same asset pool or are otherwise issued by the Issuing Entity,
        whether or not registered, provide the sales and use of proceeds information
        in
        Item 701 of Regulation S-K. Pricing information can be omitted if securities
        were not registered;

       

      (v)
        With
        respect to the Indenture Trustee, the occurrence of any Event of Default
        under
        the Indenture or the Sale and Servicing Agreement (in each case after expiration
        of any grace period and provision of any required notice);

       

      (vi)
        With
        respect to the party submitting the matter to Noteholder for vote, the
        submission of matters to a vote of Noteholders;

       

      (vii)
        With respect to the Swap Contract Administrator, determining current maximum
        probable exposure, determining current significance percentage and obtaining
        required financial information or effecting incorporation by reference of
        the
        Swap and the Swap Counterparty;

      

      (viii)
        With respect to the party responsible for the applicable Reportable Event
        item
        as indicated below, any information required to be reported on Form 8-K during
        the period covered by the Form 10-D but not reported.

      

      Form
        10-K Disclosure Item:
        The
        following items required to be reported on Form 10-K and applicable to the
        parties listed:

       

      (i)
        With
        respect to the party responsible for the applicable Reportable Event item
        as
        indicated below, any information required to be reported on Form 8-K during
        the
        fourth quarter covered by the Form 10-K but not reported;

       

      (ii)
        With
        respect to the Swap Contract Administrator, determining current maximum probable
        exposure, determining current significance percentage and obtaining required
        financial information or effecting incorporation by reference of the Swap
        and
        the Swap Counterparty;

      

      (iii)
        With respect to the Master Servicer, CHL, the Sponsor, the Seller, the
        Depositor, the Owner Trustee and the Indenture Trustee, any legal proceedings
        pending against the foregoing entities, or their respective property, that
        is
        material to Noteholders, including proceedings known to be contemplated by
        governmental authorities;

       

      (iv)
        With
        respect to the Master Servicer, CHL, the Sponsor, the Seller, the Depositor,
        the
        Owner Trustee and the Indenture Trustee, any affiliations between such party,
        or
        its affiliates, and any other Item 1119 Party that are material to
        Noteholders;

      

      (v)
        With
        respect to the Sponsor, the Depositor, and the Issuing Entity, any relationships
        or transactions between such party, or its affiliates, and any Item 1119
        Party
        that are material to Noteholders.

      

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

       

      Grant:
        Pledge,
        bargain, sell, warrant, alienate, remise, release, convey, assign, transfer,
        create, and grant a lien upon and a security interest in and right of set-off
        against, 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
        such
        collateral or other agreement or instrument and all other moneys 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.

       

      Gross
        Margin:
        The
        percentage set forth in the related Mortgage Note for the Mortgage Loans
        to be
        added to the Index for use in determining the Mortgage Rate on each Adjustment
        Date, and which is set forth in the Mortgage Loan Schedule for the Mortgage
        Loans.

       

      Indenture:
        The
        indenture, dated as of June 23, 2006, between the Issuing Entity and the
        Indenture Trustee, relating to the GSC Alternative Loan Trust Notes, Series
        2006-2.

       

      Indenture
        Trustee:
        The
        Bank of New York, a New York banking corporation, not in its individual
        capacity, but solely in its capacity as trustee for the benefit of the
        Noteholders under the Indenture, and any successor thereto, and any corporation
        or national banking association resulting from or surviving any consolidation
        or
        merger to which it or its successors may be a party and any successor trustee
        as
        may from time to time be serving as successor trustee hereunder.

       

      Indenture
        Trustee Fee:
        As to
        any Payment Date, an amount equal to one-twelfth of the Indenture Trustee
        Fee
        Rate multiplied by the Pool Stated Principal Balance with respect to such
        Payment Date.

       

      Indenture
        Trustee Fee Rate:
        With
        respect to each Mortgage Loan, the per annum rate agreed upon in writing
        on or
        prior to the Closing Date by the Indenture Trustee and the Depositor, which
        is
        0.009% per annum.

       

      Index:
        As to
        any Mortgage Loan on any Adjustment Date related thereto, the index for the
        adjustment of the Mortgage Rate set forth as such in the related Mortgage
        Note.

       

      Initial
        Adjustment Date:
        As to
        any Mortgage Loan, the first Adjustment Date following the origination of
        such
        Mortgage Loan.

       

      Initial
        Certification:
        The
        initial certification delivered by the Indenture Trustee to Section 2.02
        of the
        Sale and Servicing Agreement in the form attached thereto as Exhibit
        B-1.

       

      Initial
        Mortgage Rate:
        As to
        each Mortgage Loan, the Mortgage Rate in effect prior to the Initial Adjustment
        Date.

       

      Initial
        Single Owner:
        GSC
        Capital Corp. QRS Delaware Real Estate Holdings, Inc.

       

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

       

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

       

      Insurance
        Proceeds:
        Proceeds paid in respect of the Mortgage Loans pursuant to any Insurance
        Policy
        or any other insurance policy covering a Mortgage Loan, to the extent such
        proceeds are payable to the mortgagee under the Mortgage, the Master Servicer
        or
        the trustee under the deed of trust and are not applied to the restoration
        of
        the related Mortgaged Property or released to the Mortgagor in accordance
        with
        the procedures that the Master Servicer would follow in servicing mortgage
        loans
        held for its own account, in each case other than any amount included in
        such
        Insurance Proceeds in respect of Insured Expenses and received either prior
        to
        or in connection with such Mortgage Loan becoming a Liquidated Mortgage
        Loan.

       

      Insured
        Expenses:
        Expenses covered by an Insurance Policy or any other insurance policy with
        respect to the Mortgage Loans.

       

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

       

      Interest
        Determination Date:
        The
        second LIBOR Business Day preceding the commencement of the related Accrual
        Period for that Payment Date for the Notes (other than the Class C
        Notes).

       

      Interest
        Funds:
        With
        respect to any Payment Date, the Interest Remittance Amount for such Payment
        Date, less the portion of the Indenture Trustee Fee and the Owner Trustee
        Fee
        for such Payment Date, plus the Adjusted Replacement Upfront Amount, if
        any.

       

      Interest
        Remittance Amount:
        With
        respect to any Distribution Date, (x) the sum, without duplication, of (i)
        all
        scheduled interest collected during the related Due less the Servicing Fee
        and
        Lender-Paid PMI Fee, (ii) all interest on prepayments received during the
        related Prepayment Period with respect to such Mortgage Loans, other than
        Prepayment Interest Excess, (iii) all Advances relating to interest with
        respect
        to such Mortgage Loans, (iv) all Compensating Interest and (v) Liquidation
        Proceeds with respect to such Mortgage Loans collected during the related
        Due
        Period (to the extent such Liquidation Proceeds relate to interest), less
        (y)
        all reimbursements to the Master Servicer during the related Due Period for
        Advances of interest previously made.

       

      Interim
        Certification:
        The
        interim certification delivered by the Indenture Trustee pursuant to Section
        2.02 of the Sale and Servicing Agreement in the form attached thereto as
        Exhibit
        B-2.

       

      ISDA
        Credit Support Annex:
        The
        International Swaps and Derivatives Association, Inc. form of Credit Support
        Annex, dated as of June 23, 2006, between the Swap Counterparty and the Swap
        Contract Administrator

       

      Issuing
        Entity:
        GSC
        Capital Corp. Mortgage Trust 2006-2, a Delaware statutory trust, or its
        successor in interest.

       

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

       

      Item
        1119 Party:
        The
        Depositor, the Seller, the Master Servicer, any Subservicer, the Indenture
        Trustee, the Owner Trustee, any originator identified in the Prospectus
        Supplement, the Swap Counterparty and any other material transaction party,
        as
        identified in Exhibit J of the Sale and Servicing Agreement, as updated pursuant
        to Section 11.04.

       

      Lender-Paid
        PMI Fee:
        The fee
        paid in connection with any lender-paid primary mortgage insurance policy
        paid
        to any primary mortgage insurance provider for any Mortgage Loan.

       

      Lender-Paid
        PMI Fee Rate:
        With
        respect to each Mortgage Loans, the rate at which Lender-Paid PMI Fee for
        that
        Mortgage Loan is caluclated, if any.

       

      Maturity
        Payment Date:
        With
        respect to each Class of Notes, as listed in the table below:

       

      
        	
                Class
                  of Notes

              	
                Payment
                  Date

              
	
                Class
                  A-1

              	
                May
                  2036

              
	
                Class
                  A-2

              	
                May
                  2036

              
	
                Class
                  M-1

              	
                March
                  2036

              
	
                Class
                  M-2

              	
                February
                  2036

              
	
                Class
                  M-3

              	
                January
                  2036

              
	
                Class
                  M-4

              	
                December
                  2035

              
	
                Class
                  M-5

              	
                November
                  2035

              
	
                Class
                  M-6

              	
                September
                  2035

              
	
                Class
                  M-7

              	
                July
                  2035

              
	
                Class
                  M-8

              	
                March
                  2035

              
	
                Class
                  B-1

              	
                July
                  2034

              
	
                Class
                  C

              	
                [__________]

              

      

      

      

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

       

      Liquidated
        Mortgage Loan:
        With
        respect to any Payment Date, a defaulted Mortgage Loan (including any REO
        Property) that was liquidated in the calendar month preceding the month of
        such
        Payment Date and as to which the Master Servicer has determined (in accordance
        with the Sale and Servicing Agreement) that it has received all amounts it
        expects to receive in connection with the liquidation of such Mortgage Loan,
        including the final disposition of an REO Property.

       

      Liquidation
        Proceeds:
        Amounts, including Insurance Proceeds, received in connection with the partial
        or complete liquidation of Mortgage Loans, whether through trustee’s sale,
        foreclosure sale or otherwise or amounts received in connection with any
        condemnation or partial release of a Mortgaged Property and any other proceeds
        received in connection with an REO Property received in connection with or
        prior
        to such Mortgage Loan becoming a Liquidated Mortgage Loan (other than the
        amount
        of such net proceeds representing any profit realized by the Master Servicer
        in
        connection with the disposition of any such properties), less the sum of
        related
        unreimbursed Advances, Servicing Fees and Servicing Advances.

       

      Loan-to-Value
        Ratio:
        For any
        first lien Mortgage Loan, the fraction, expressed as a percentage, the numerator
        of which is the principal balance of the related Mortgage Loan at origination
        and the denominator of which is the Appraised Value of the related Mortgaged
        Property. 

       

      Lost
        Mortgage Note:
        Any
        Mortgage Note the original of which was permanently lost or destroyed and
        has
        not been replaced.

       

      Maintenance:
        With
        respect to any Cooperative Unit, the rent paid by the Mortgagor to the
        Cooperative Corporation pursuant to the Proprietary Lease.

       

      Majority
        Holder:
        The
        Holders of Notes evidencing at least 51% of the Note Principal Balance of
        the
        Offered Notes.

       

      Master
        Servicer:
        Countrywide Home Loans Servicing LP, a Texas limited partnership, and its
        successors and assigns, in its capacity as master servicer
        hereunder.

       

      Master
        Servicer Advance Date:
        As to
        any Payment Date, 1:00 p.m. Pacific time on the Business Day immediately
        preceding such Payment Date.

       

      Maturity
        Date:
        As to
        each Class of Notes, the date set forth below:

       

      
        	
                Class
                  of Notes

              	
                Maturity
                  Date

              
	
                Class
                  A-1

              	
                May
                  2036

              
	
                Class
                  A-2

              	
                May
                  2036

              
	
                Class
                  M-1

              	
                March
                  2036

              
	
                Class
                  M-2

              	
                February
                  2036

              
	
                Class
                  M-3

              	
                January
                  2036

              
	
                Class
                  M-4

              	
                December
                  2035

              
	
                Class
                  M-5

              	
                November
                  2035

              
	
                Class
                  M-6

              	
                September
                  2035

              
	
                Class
                  M-7

              	
                August
                  2035

              
	
                Class
                  M-8

              	
                March
                  2035

              
	
                Class
                  B-1

              	
                July
                  2034

              

      

      

       

      Maximum
        Mortgage Rate:
        With
        respect to each Mortgage Loan, the Maximum Note Rate of interest set forth
        as
        such in the related Mortgage Note.

       

      Maximum
        Note Rate:
        With
        respect to any Payment Date and the Adjustable Rate Notes, 11.500% per
        annum.

       

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

       

      MERS
        Mortgage Loan:
        Any
        Mortgage Loan registered with MERS on the MERS® System.

       

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

       

      MIN:
        The
        Mortgage Identification Number for any MERS Mortgage Loan.

       

      Minimum
        Mortgage Rate:
        With
        respect to each Mortgage Loan, the minimum rate of interest set forth as
        such in
        the related Mortgage Note.

       

      MOM
        Loan:
        Any
        Mortgage Loan, as to which MERS is acting as mortgagee, solely as nominee
        for
        the originator of such Mortgage Loan and its successors and
        assigns.

       

      Monthly
        Payment:
        With
        respect to any Mortgage Loan, the scheduled monthly payment of principal
        and
        interest on such Mortgage Loan which is payable by the related Mortgagor
        from
        time to time under the related Mortgage Note, determined: (a) after giving
        effect to (i) any Deficient Valuation and/or Debt Service Reduction with
        respect
        to such Mortgage Loan and (ii) any reduction in the amount of interest
        collectible from the related Mortgagor pursuant to the Relief Act; (b) except
        for any Mortgage Loans with Arrearages, without giving effect to any extension
        granted or agreed to by the Master Servicer pursuant to Section 3.05 of the
        Sale
        and Servicing Agreement; and (c) on the assumption that all other amounts,
        if
        any, due under such Mortgage Loan are paid when due.

       

      Monthly
        Statement:
        The
        statement delivered to the Noteholders pursuant to Section 7.05 of the
        Indenture.

       

      Moody’s:
        Moody’s
        Investors Service, Inc. or any successor thereto.

       

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

       

      Mortgage
        File:
        The
        mortgage documents listed in Section 2.01 of the Sale and Servicing Agreement
        pertaining to a particular Mortgage Loan and any additional documents delivered
        to the Indenture Trustee to be added to the Mortgage File pursuant to the
        Sale
        and Servicing Agreement and the Indenture. 

       

      Mortgage
        Loan Characteristics:
        The
        characteristics for identified under the caption “The Mortgage Pool” in the
        Prospectus Supplement.

       

      Mortgage
        Loan Schedule:
        The
        list of Mortgage Loans (as from time to time amended by the Master Servicer
        to
        reflect the deletion of Deleted Mortgage Loans and the addition of Replacement
        Mortgage Loans pursuant to the provisions of the Sale and Servicing Agreement)
        transferred to the Indenture Trustee as part of the Trust Estate and from
        time
        to time subject to the Indenture, attached as Exhibit A-1 to the Sale and
        Servicing Agreement, setting forth in the following information with respect
        to
        each Mortgage Loan:

       

      
        	 	
                (i)

              	
                the
                  loan number;

                 

              
	 	
                (ii)

              	
                the
                  Appraised Value;

                 

              
	 	
                (iii)

              	
                the
                  Initial Mortgage Rate;

                 

              
	 	
                (iv)

              	
                the
                  maturity date;

                 

              
	 	
                (v)

              	
                the
                  original principal balance;

                 

              
	 	
                (vi)

              	
                the
                  Cut-off Date Principal Balance;

                 

              
	 	
                (vii)

              	
                the
                  first payment date of the Mortgage Loan;

                 

              
	 	
                (viii)

              	
                the
                  Scheduled Payment in effect as of the Cut-off Date;

                 

              
	 	
                (ix)

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

                 

              
	 	
                (x)

              	
                a
                  code indicating whether the residential dwelling at the time of
                  origination was represented to be owner-occupied;

                 

              
	 	
                (xi)

              	
                a
                  code indicating whether the residential dwelling is either (a)
                  a detached
                  single family dwelling, (b) a condominium unit, (c) a two- to four-unit
                  residential property, or (d) a Cooperative Unit; 

                 

              
	 	
                (xii)

              	
                whether
                  such Mortgage Loan is a Balloon Mortgage Loan; 

                 

              
	 	
                (xiii)

              	
                Lender-Paid
                  PMI Fee Rate, if any;

                 

              
	 	
                (xiv)

              	
                [reserved];
                  and

                 

              
	 	
                (xv)

              	
                with
                  respect to each Mortgage Loan:

              

      

      

        
          	
                  A)  
                    

                	
                  the
                    frequency of each Adjustment Date;

                   

                
	
                  B)  
                    

                	
                  the
                    next Adjustment Date;

                   

                
	
                  C)  
                    

                	
                  the
                    Maximum Mortgage Rate

                   

                
	
                  D)  
                    

                	
                  the
                    Minimum Mortgage Rate;

                   

                
	
                  E)  
                    

                	
                  the
                    Mortgage Rate as of the Cut-off Date;

                   

                
	
                  F)  
                    

                	
                  the
                    related Periodic Rate Cap;

                   

                
	
                  G)  
                    

                	
                  the
                    Gross Margin; and

                

        

      

       

      
        	 	
                (xvi)

              	
                the
                  purpose of the Mortgage Loan.

              

      

       

      Such
        schedule shall also set forth the total of the amounts described under (vi)
        above for all of the Mortgage Loans in the aggregate. 

       

      Mortgage
        Loans:
        Such of
        the Mortgage Loans transferred and assigned to the Indenture Trustee pursuant
        to
        the provisions hereof and any Subsequent Transfer Agreement as from time
        to time
        are held as a part of the Trust Fund (including any REO Property), the mortgage
        loans so held being identified in the Mortgage Loan Schedule, notwithstanding
        foreclosure or other acquisition of title of the related Mortgaged Property.
        Any
        Mortgage Loan subject to repurchase by the Seller, the Sponsor, CHL or Master
        Servicer as provided in Basic Documents, shall continue to be a Mortgage
        Loan
        hereunder until the Purchase Price with respect thereto has been paid to
        the
        Trust.

       

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

       

      Mortgage
        Pool:
        The
        aggregate of the Mortgage Loans identified in the Mortgage Loan
        Schedule.

       

      Mortgaged
        Property:
        The
        underlying property securing a Mortgage Loan.

       

      Mortgage
        Rate:
        The
        annual rate of interest borne by a Mortgage Note from time to time.

       

      Mortgagor:
        The
        obligors on a Mortgage Note.

       

      Net
        Mortgage Rate:
        As to
        each Mortgage Loan, and at any time, the per annum rate equal to the Mortgage
        Rate less the Servicing Fee Rate. 

       

      Net
        Prepayment Interest Shortfalls:
        As to
        any Payment Date and Loan Group, the amount by which the aggregate of the
        Prepayment Interest Shortfalls for such Loan Group during the related Prepayment
        Period exceeds an amount equal to the sum of (a) the Compensating Interest
        for
        such Loan Group and Payment Date and (b) the excess, if any, of the Compensating
        Interest for each other Loan Group for that Payment Date over the Prepayment
        Interest Shortfalls experienced by the Mortgage Loans in each such other
        Loan
        Group during such Prepayment Period. 

       

      Net
        Rate Carryover:
        With
        respect to the Adjustable Rate Notes and any Payment Date on which the
        applicable Note Rate is based upon the Available
        Funds Rate,
        the
        excess of (i) the amount of interest such Class of Adjustable Rate Notes
        would otherwise have accrued for such Payment Date had the Note Rate for
        that
        Class not been determined based on the Available
        Funds Rate, up
        to but
        not exceeding the Maximum Rate, over (ii)the amount of interest such Class
        accrued for such Payment Date based on the Available
        Funds Rate.

       

      Net
        Rate Carryover Amount:
        With
        respect to any Class of Notes (other than the Class C Notes) and any Payment
        Date, the sum of (A) the aggregate of any Net Rate Carryover on such Class
        of Notes and (B) the Net Rate Carryover Amount for all previous Payment
        Dates not previously paid pursuant to Section 4.02 of the Indenture,
        together with interest thereon at the applicable Note Rate, without giving
        effect to the Available Funds Rate, up to but not exceeding the Maximum Note
        Rate.

       

      Net
        Swap Payment:
        With
        respect to any Payment Date and payment by the Swap Contract Administrator
        to
        the Swap Counterparty, the excess, if any, of the “Fixed Amount” (as defined in
        the Swap Contract) with respect to such Payment Date over the “Floating Amount”
(as defined in the Swap Contract) with respect to such Payment Date. With
        respect to any Payment Date and payment by the Swap Counterparty to the Swap
        Contract Administrator, the excess, if any, of the “Floating Amount” (as defined
        in the Swap Contract) with respect to such Payment Date over the “Fixed Amount”
(as defined in the Swap Contract) with respect to such Payment
        Date.

       

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

       

      Nonrecoverable
        Advance:
        Any
        portion of an Advance previously made or proposed to be made by the Master
        Servicer that, in the good faith judgment of the Master Servicer, will not
        be
        ultimately recoverable by the Master Servicer from the related Mortgagor,
        related Liquidation Proceeds or otherwise.

       

      Non-United
        States Person :
        A
        Person that is not a citizen or resident of the United States, a corporation,
        partnership, or other entity (treated as a corporation or a partnership for
        federal income tax purposes) created or organized in or under the laws of
        the
        United States, any state thereof or the District of Columbia, an estate whose
        income from sources without the United States is includible in gross income
        for
        United States federal income tax purposes regardless of its connection with
        the
        conduct of a trade or business within the United States, or a trust if a
        court
        within the United States is able to exercise primary supervision over the
        administration of the trust and one or more United States persons have authority
        to control all substantial decisions of the trustor. 

       

      Note:
        Any one
        of the notes of any Class executed and authenticated by the Indenture Trustee
        in
        substantially the forms attached hereto as Exhibits A-1 through
        A-3.

       

      Noteholder
        or Holder:
        The
        person in whose name a Note is registered in the Note Register (initially,
        Cede
& Co., as nominee for the Depository, in the case of any Class of Offered
        Notes, except that solely for the purpose of giving any consent pursuant
        to the
        Agreement, any Note registered in the name of the Depositor or any affiliate
        of
        the Depositor shall be deemed not to be Outstanding and the Note Balance
        evidenced thereby shall not be taken into account in determining whether
        the
        requisite amount of Note Balance necessary to effect such consent has been
        obtained; provided that if any such Person (including the Depositor) owns
        100%
        of the Note Balance evidenced by a Class of Notes, such Notes shall be deemed
        to
        be Outstanding for purposes of any provision hereof (other than the second
        sentence of Section 8.01 of the Sale and Servicing Agreement) that requires
        the
        consent of the Holders of Notes of a particular Class as a condition to the
        taking of any action hereunder. The Indenture Trustee is entitled to rely
        conclusively on a certification of the Depositor or any affiliate of the
        Depositor in determining which Notes are registered in the name of an affiliate
        of the Depositor.

       

      Note
        Margin:
        With
        respect to any Accrual Period and Class of Adjustable Rate Notes, the per
        annum
        rate indicated in the following table:

       

      
        	
                Class

              	
                Note
                  Margin (1)

              	
                Note
                  Margin (2)

              
	
                Class
                  A-1

              	 	 
	
                Class
                  A-2

              	 	 
	
                Class
                  M-1

              	 	 
	
                Class
                  M-2

              	 	 
	
                Class
                  M-3

              	 	 
	
                Class
                  M-4

              	 	 
	
                Class
                  M-5

              	 	 
	
                Class
                  M-6

              	 	 
	
                Class
                  M-7

              	 	 
	
                Class
                  M-8

              	 	 
	
                Class
                  B-1

              	 	 

      

      

      
        	
                (1)
                  

              	
                For
                  any Accrual Period relating to any Payment Date occurring on or
                  prior to
                  the Optional Termination Date.

              

      

      
        	
                (2)
                  

              	
                For
                  any Accrual Period relating to any Payment Date occurring after
                  the
                  Optional Termination Date.

              

      

       

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

       

      Note
        Principal Balance:
        As to
        any Note and as of any Payment Date, the Initial Note Principal Balance of
        such
        Note (A) less the sum of (i) all amounts distributed with respect to such
        Note
        in reduction of the Note Principal Balance thereof on previous Payment Dates
        pursuant to Section 4.02 of the Indenture and (ii) any Applied Realized Loss
        Amounts allocated to such Note on previous Payment Dates pursuant to Section
        3.28 of the Indenture and (B) increased by any Subsequent Recoveries allocated
        to such Class of Notes pursuant to Section 3.28 of the Indenture on such
        Payment
        Date.

       

      Note
        Rate:
        With
        respect to any Payment Date and each Class of Adjustable Rate Notes , the
        least
        of (i) One-Month LIBOR plus the related Note Margin, (ii) the Maximum Rate
        and
        (iii) the Available Funds Rate for such Payment Date.

       

      Note
        Register:
        The
        register maintained pursuant to Section 4.03 of the Indenture.

       

      Notes:
        Class
        A-1, Class A-2, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
        M-6, Class M-7, Class M-8, Class B-1 and Class C Notes.

       

      Offered
        Notes:
        The
        Class A-1, Class A-2, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
        Class M-6, Class M-7 and Class M-8 Notes.

       

      Officer’s
        Certificate:
        A
        certificate (i) in the case of the Depositor, signed by the Chairman of the
        Board, the Vice Chairman of the Board, the President, a Managing Director,
        a
        Vice President (however denominated), an Assistant Vice President, the
        Treasurer, the Secretary, or one of the Assistant Treasurers or Assistant
        Secretaries of the Depositor, the Servicer or the Master Servicer, (ii) in
        the
        case of the Master Servicer, signed by the President, an Executive Vice
        President, a Vice President, an Assistant Vice President, the Treasurer,
        or one
        of the Assistant Treasurers or Assistant Secretaries of Countrywide GP, Inc.,
        its general partner or (iii) if provided for in the Sale and Servicing
        Agreement, signed by a Servicing Officer, as the case may be, and delivered
        to
        the Depositor and the Indenture Trustee, as the case may be, as required
        by the
        Sale and Servicing Agreement.

       

      One-Month
        LIBOR:
        With
        respect to any Accrual Period, the rate determined by the Indenture Trustee
        on
        the related Interest Determination Date on the basis of the rate for U.S.
        dollar
        deposits for one month that appears on Telerate Screen Page 3750 as of 11:00
        a.m. (London time) on such Interest Determination Date. If such ate does
        not
        appear on such page (or such other page as may replace that page on that
        service, or if such service is no longer offered, such other service for
        displaying One-Month LIBOR or comparable rates as may be reasonably selected
        by
        the Indenture Trustee), One-Month LIBOR for the applicable Accrual Period
        will
        be the Reference Bank Rate. If no such quotations can be obtained by the
        Indenture Trustee and no Reference Bank Rate is available, One-Month LIBOR
        will
        be One-Month LIBOR applicable to the preceding Accrual Period.

       

      Opinion
        of Counsel:
        A
        written opinion of counsel, who may be counsel for the Depositor or the Master
        Servicer, reasonably acceptable to each addressee of such opinion; provided
        that
        with respect to Section 5.04 or 8.01 of the Sale and Servicing Agreement,
        or the
        interpretation or application of the REMIC Provisions such counsel must (i)
        in
        fact be independent of the Depositor and the Master Servicer, (ii) not have
        any
        direct financial interest in the Depositor or the Master Servicer or in any
        affiliate of either, and (iii) not be connected with the Depositor or the
        Master
        Servicer as an officer, employee, promoter, underwriter, trustee, partner,
        director or person performing similar functions.

       

      Optional
        Redemption Date:
        The
        termination of the Trust Estate provided hereunder pursuant to the purchase
        of
        the Mortgage Loans pursuant to Section 8.07 of the Indenture.

       

      Optional
        Redemption:
        The
        termination of the Trust Estate provided hereunder pursuant to the purchase
        of
        the Mortgage Loans pursuant to Section 8.07 of the Indenture.

       

       

      Original
        Mortgage Loan:
        The
        mortgage loan refinanced in connection with the origination of a Refinancing
        Mortgage Loan.

       

      Original
        Value:
        The
        value of the property underlying a Mortgage Loan based, in the case of the
        purchase of the underlying Mortgaged Property, on the lower of an appraisal
        satisfactory to the Master Servicer or the sales price of such property or,
        in
        the case of a refinancing, on an appraisal satisfactory to the Master
        Servicer.

       

      OTS:
        The
        Office of Thrift Supervision.

       

      Outstanding:
        With
        respect to the Notes as of any date of determination, all Notes theretofore
        executed and authenticated under the Indenture except:

       

      (i) Notes
        theretofore canceled by the Indenture Trustee or delivered to the Indenture
        Trustee for cancellation; and

       

      (ii) Notes
        in
        exchange for which or in lieu of which other Notes have been executed and
        delivered by the Indenture Trustee pursuant to the Indenture.

       

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

       

      OC
        Floor:
        For any
        Payment Date, 0.35% of the Cut-off Date Principal Balance of the Mortgage
        Loans.

       

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

       

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

       

      Overcollateralization
        Target Amount:
        With
        respect to any Payment Date (a) prior to the Stepdown Date, an amount equal
        to
        0.50% of the Cut-off Date Principal Balance of the Mortgage Loans and (b)
        on or
        after the Stepdown Date, the greater of (i) an amount equal to 1.00% of the
        aggregate Stated Principal Balance of the Mortgage Loans for the current
        Payment
        Date and (ii) the OC Floor; provided, however, that if a Trigger Event is
        in
        effect on any Payment Date, the Overcollateralization Target Amount will
        be the
        Overcollateralization Target Amount as in effect for the prior Payment
        Date.

       

      Overcollateralized
        Amount:
        For any
        Distribution Date, the amount, if any, by which (x) the aggregate Stated
        Principal Balance of the Mortgage Loans as of the last day of the related
        Due
        Period exceeds (y) the aggregate Note Principal Balance of the Adjustable
        Rate
        Notes as of such Payment Date (after giving effect to distributions in respect
        of the Principal Remittance Amount to be made on such Payment
        Date).

       

      Owner
        Trust Estate:
        The
        corpus of the Issuing Entity created by the Trust Agreement which consists
        of
        items referred to in Section 3.01 of the Trust Agreement.

       

      Owner
        Trustee:
        Wilmington Trust Company and its successors and assigns or any successor
        owner
        trustee appointed pursuant to the terms of the Trust Agreement. 

       

      Owner
        Trustee’s Fee:
        An
        annual fee equal to $4,000, payable on the Payment Date occurring in July
        of
        each year until the Notes are no longer Outstanding.

       

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

       

      Paying
        Agent:
        Any
        paying agent or co-paying agent appointed pursuant to Section 3.03 of the
        Indenture, which initially shall be the Indenture Trustee. 

       

      Payment
        Account:
        The
        separate Eligible Account created and maintained by the Indenture Trustee
        pursuant to Section 3.05 of the Sale and Servicing Agreement in the name
        of the
        Indenture Trustee for the benefit of the Noteholders and designated “The Bank of
        New York, in trust for registered holders of GSC Alternative Loan Trust Notes,
        Series 2006-2”. Funds in the Payment Account shall be held in trust for the
        Noteholders for the uses and purposes set forth in the Sale and Servicing
        Agreement and the Indenture.

       

      Payment
        Account Deposit Date:
        As to
        any Payment Date, 1:00 p.m. Pacific time on the Business Day immediately
        preceding such Payment Date.

       

      Payment
        Date:
        The
        25th day of each calendar month after the initial issuance of the Notes,
        or if
        such 25th day is not a Business Day, the next succeeding Business Day,
        commencing in July 2006.

       

      Percentage
        Interest:
        With
        respect to any Note, a fraction, expressed as a percentage, the numerator
        of
        which is the Note Principal Balance represented by such Note and the denominator
        of which is the aggregate Note Principal Balance of the related Class.

       

      Performance
        Certification:
        As
        defined in Section 11.05 of the Sale and Servicing Agreement.

       

      Periodic
        Rate Cap:
        As to
        any Mortgage Loans and the related Mortgage Notes, the provision therein
        that
        limits permissible increases and decreases in the Mortgage Rate on any
        Adjustment Date. 

       

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

       

      (i) obligations
        of the United States or any agency thereof, provided such obligations are
        backed
        by the full faith and credit of the United States;

       

      (ii) general
        obligations of or obligations guaranteed by any state of the United States
        or
        the District of Columbia receiving the highest long-term debt rating and
        highest
        short-term debt rating of each Rating Agency, or such lower rating as each
        Rating Agency has confirmed in writing will not result in the downgrading
        or
        withdrawal of the ratings then assigned to the Notes by such Rating
        Agency;

       

      (iii) commercial
        or finance company paper which is then receiving the highest commercial or
        finance company paper rating of each Rating Agency, or such lower rating
        as each
        Rating Agency has confirmed in writing will not result in the downgrading
        or
        withdrawal of the ratings then assigned to the Notes by such Rating
        Agency;

       

      (iv) certificates
        of deposit, demand or time deposits, or bankers’ acceptances issued by any
        depository institution or trust company incorporated under the laws of the
        United States or of any state thereof and subject to supervision and examination
        by federal and/or state banking authorities, provided that the commercial
        paper
        and/or long term unsecured debt obligations of such depository institution
        or
        trust company (or in the case of the principal depository institution in
        a
        holding company system, the commercial paper or long-term unsecured debt
        obligations of such holding company) are then rated one of the two highest
        long-term and the highest short-term ratings of each such Rating Agency for
        such
        securities, or such lower ratings as each Rating Agency has confirmed in
        writing
        will not result in the downgrading or withdrawal of the rating then assigned
        to
        the Notes by such Rating Agency;

       

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

       

      (vi) securities
        (other than stripped bonds, stripped coupons or instruments sold at a purchase
        price in excess of 115% of the face amount thereof) bearing interest or sold
        at
        a discount issued by any corporation incorporated under the laws of the United
        States or any state thereof which, at the time of such investment, have one
        of
        the two highest long term ratings of each Rating Agency (such rating shall
        be
        the highest commercial paper rating of S&P for any such securities) and (y),
        or such lower rating as each Rating Agency has confirmed in writing will
        not
        result in the downgrading or withdrawal of the rating then assigned to the
        Notes
        by such Rating Agency;

       

      (vii) interests
        in any money market fund which at the date of acquisition of the interests
        in
        such fund and throughout the time such interests are held in such fund has
        the
        highest applicable long term and short term rating by each Rating Agency
        or such
        lower rating as each Rating Agency has confirmed in writing will not result
        in
        the downgrading or withdrawal of the ratings then assigned to the Notes by
        such
        Rating Agency;

       

      (viii) short
        term investment funds sponsored by any trust company or national banking
        association incorporated under the laws of the United States or any state
        thereof which on the date of acquisition has been rated by each Rating Agency
        in
        their respective highest applicable rating category or such lower rating
        as each
        Rating Agency has confirmed in writing will not result in the downgrading
        or
        withdrawal of the ratings then assigned to the Notes by such Rating Agency;
        and

       

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

       

      provided,
        that no such instrument shall be a Permitted Investment if such instrument
        (i) evidences the right to receive interest only payments with respect to
        the obligations underlying such instrument, (ii) is purchased at a premium
        or (iii) is purchased at a deep discount; provided further that no such
        instrument shall be a Permitted Investment (A) if such instrument evidences
        principal and interest payments derived from obligations underlying such
        instrument and the interest payments with respect to such instrument provide
        a
        yield to maturity of greater than 120% of the yield to maturity at par of
        such
        underlying obligations, or (B) if it may be redeemed at a price below the
        purchase price (the foregoing clause (B) not to apply to investments in
        units of money market funds pursuant to clause (vii) above).

       

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

       

      Plan:
        Any
        employee benefit plan or certain other retirement plans and arrangements,
        including individual retirement accounts and annuities, Keogh plans and bank
        collective investment funds and insurance company general or separate accounts
        in which such plans, accounts or arrangements are invested, that are subject
        to
        ERISA or Section 4975 of the Code.

       

      Plan
        Assets:
        Assets
        of a Plan within the meaning of Department of Labor regulation 29 C.F.R.
§
2510.3-101.

       

      Pool
        Stated Principal Balance:
        $[______________].

       

      Prepayment
        Assumption:
        The
        applicable rate of prepayment, as described in the Prospectus Supplement
        relating to the Notes.

       

      Prepayment
        Charge:
        With
        respect to any Mortgage Loan, the charges or premiums, if any, due in connection
        with a full or partial prepayment of such Mortgage Loan in accordance with
        the
        terms thereof.

       

      Prepayment
        Interest Excess:
        With
        respect to any Payment Date, for each Mortgage Loan that was the subject
        of a
        Principal Prepayment during the portion of a Prepayment Period from the related
        Due Date to the end of such Prepayment Period, any payment of interest received
        in connection therewith (net of any applicable Servicing Fee) representing
        interest accrued for any portion of such month of receipt.

       

      Prepayment
        Interest Shortfall:
        As to
        any Payment Date, any Mortgage Loan and any Principal Prepayment received
        during
        the related Prepayment Period, the amount, if any, by which one month’s interest
        at the related Mortgage Rate, net of the related Servicing Fee Rate, on such
        Principal Prepayment exceeds the amount of interest paid in connection with
        such
        Principal Prepayment.

       

      Prepayment
        Period:
        As to
        any Payment Date and related Due Date, the period beginning with the opening
        of
        business on the sixteenth day of the calendar month preceding the month in
        which
        such Payment Date occurs (or, with respect to the first Payment Date, the
        period
        beginning with the opening of business on the day immediately following the
        Cut-off Date) and ending on the close of business on the fifteenth day of
        the
        month in which such Payment Date occurs.

       

      Primary
        Insurance Policy:
        Each
        policy of primary mortgage guaranty insurance or any replacement policy therefor
        with respect to any Mortgage Loan.

       

      Prime
        Rate:
        The
        prime commercial lending rate of The Bank of New York, as publicly announced
        to
        be in effect from time to time. The Prime Rate shall be adjusted automatically,
        without notice, on the effective date of any change in such prime commercial
        lending rate. The Prime Rate is not necessarily The Bank of New York’s lowest
        rate of interest.

       

      Principal
        Prepayment:
        Any
        Mortgagor payment or other recovery of (or proceeds with respect to) principal
        on a Mortgage Loan (including loans purchased or repurchased under Sections
        2.02, 2.03, 2.04, 3.12 of the Sale and Servicing Agreement and Section 11.01
        hereof) that is received in advance of its scheduled Due Date and is not
        accompanied by an amount as to interest representing scheduled interest due
        on
        any date or dates in any month or months subsequent to the month of prepayment.
        Partial Principal Prepayments shall be applied by the Master Servicer in
        accordance with the terms of the related Mortgage Note.

       

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

       

      Principal
        Remittance Amount:
        As to
        any Payment Date, (a) the sum, without duplication, of: (i) the scheduled
        principal collected with respect to the Mortgage Loans during the related
        Due
        Period or advanced with respect to such Payment Date, (ii) Principal Prepayments
        collected in the related Prepayment Period, (iii) the Stated Principal Balance
        of each Mortgage Loan that was repurchased by CHL, the Seller or the Sponsor
        or
        purchased by the Master Servicer, (iv) the amount, if any, by which the
        aggregate unpaid principal balance of any Replacement Mortgage Loans delivered
        by CHL, in connection with a substitution of a Mortgage Loan is less than
        the
        aggregate unpaid principal balance of any Deleted Mortgage Loans and (v)
        all
        Liquidation Proceeds (to the extent such Liquidation Proceeds related to
        principal) and Subsequent Recoveries collected during the related Due Period
        less (b) all Advances relating to principal and certain expenses reimbursed
        during the related Due Period.

       

      Privately
        Offered Notes:
        The
        Class B-1 and Class C Notes.

       

      Privately
        Offered Certificates:
        Certificates representing regular interests in one or more REMICs issued
        in
        exchange for Privately Offered Notes in connection with a REMIC Conversion
        issued pursuant to Exhibit M to the Trust Agreement.

       

      Proprietary
        Lease:
        With
        respect to any Cooperative Unit, a lease or occupancy agreement between a
        Cooperative Corporation and a holder of related Coop Shares.

       

      Prospectus
        Supplement:
        The
        Prospectus Supplement dated June 22, 2006, relating to the public offering
        of
        the Offered Notes offered thereby.

       

      PUD:
        A
        Planned Unit Development.

       

      Purchase
        Price:
        With
        respect to any Mortgage Loan (x) required to be (1) repurchased by the
        Seller, the Sponsor or CHL or purchased by the Master Servicer, as applicable,
        pursuant to Section 2.02, 2.03 or 3.12 of the Sale and Servicing Agreement
        or
        (2) repurchased by the Depositor pursuant to Section 2.04 of the Sale and
        Servicing Agreement, or (y) that the Master Servicer has a right to
        purchase pursuant to Section 3.11 of the Sale and Servicing Agreement, an
        amount
        equal to the sum of (i) 100% of the unpaid principal balance (or, if such
        purchase or repurchase, as the case may be, is effected by the Master Servicer,
        the Stated Principal Balance) of the Mortgage Loan as of the date of such
        purchase, (ii) accrued interest thereon at the applicable Mortgage Rate
        (or, if such purchase or repurchase, as the case may be, is effected by the
        Master Servicer, at the Net Mortgage Rate) from (a) the date through which
        interest was last paid by the Mortgagor (or, if such purchase or repurchase,
        as
        the case may be, is effected by the Master Servicer, the date through which
        interest was last advanced and not reimbursed by the Master Servicer) to
        (b) the first day of the month in which the Purchase Price is to be
        distributed to Noteholders, and (iii) any costs, expenses and damages incurred
        by the Trust Fund resulting from any violation of any predatory or abusive
        lending law in connection with such Mortgage Loan.

       

      QRS:
        A
        Qualified REIT Subsidiary within the meaning of Section 856(i) of the
        Code.

       

      Qualified
        Insurer:
        A
        mortgage guaranty insurance company duly qualified as such under the laws
        of the
        state of its principal place of business and each state having jurisdiction
        over
        such insurer in connection with the insurance policy issued by such insurer,
        duly authorized and licensed in such states to transact a mortgage guaranty
        insurance business in such states and to write the insurance provided by
        the
        insurance policy issued by it, approved as a FNMA-approved mortgage insurer
        and
        having a claims paying ability rating of at least “AA” or equivalent rating by a
        nationally recognized statistical rating organization. Any replacement insurer
        with respect to a Mortgage Loan must have at least as high a claims paying
        ability rating as the insurer it replaces had on the Closing Date.

       

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

       

      Realized
        Loss:
        With
        respect to each Liquidated Mortgage Loan, an amount (not less than zero or
        more
        than the Stated Principal Balance of the Mortgage Loan) as of the date of
        such
        liquidation, equal to (i) the Stated Principal Balance of such Liquidated
        Mortgage Loan as of the date of such liquidation, minus (ii) the Liquidation
        Proceeds, if any, received in connection with such liquidation during the
        month
        in which such liquidation occurs, to the extent applied as recoveries of
        principal of the Liquidated Mortgage Loan. With respect to each Mortgage
        Loan
        that has become the subject of a Deficient Valuation, (i) if the value of
        the
        related Mortgaged Property was reduced below the principal balance of the
        related Mortgage Note, the amount by which the value of the Mortgaged Property
        was reduced below the principal balance of the related Mortgage Note, and
        (ii)
        if the principal amount due under the related Mortgage Note has been reduced,
        the difference between the principal balance of the Mortgage Loan outstanding
        immediately prior to such Deficient Valuation and the principal balance of
        the
        Mortgage Loan as reduced by the Deficient Valuation plus any reduction in
        the
        interest component of the Scheduled Payments. With respect to each Mortgage
        Loan
        that has become the subject of a Debt Service Reduction and any Distribution
        Date, the amount, if any, by which the related Scheduled Payment was reduced.
        The amount of a Realized Loss on a Liquidated Mortgage Loan will be reduced
        by
        the amount of Subsequent Recoveries received with respect to such Liquidated
        Mortgage Loan.

       

      Record
        Date:
        With
        respect to any Payment Date and the Adjustable Rate Notes, the Business Day
        immediately preceding such Distribution Date, or if such Notes are no longer
        Book-Entry Notes, the last Business Day of the month preceding the month
        of such
        Distribution Date. With respect to the Class C Notes, the last Business Day
        of
        the month preceding the month of a Payment Date.

       

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

       

      Reference
        Banks:
        Barclays Bank PLC, Deutsche Bank and NatWest, N.A., provided that if any
        of the
        foregoing banks are not suitable to serve as a Reference Bank, then any leading
        banks selected by the Indenture Trustee which are engaged in transactions
        in
        Eurodollar deposits in the international Eurocurrency market (i) with an
        established place of business in London, England, (ii) not controlling, under
        the control of or under common control with the Depositor, CHL or the Master
        Servicer and (iii) which have been designated as such by the Indenture
        Trustee.

       

      Refinancing
        Mortgage Loan:
        Any
        Mortgage Loan originated in connection with the refinancing of an existing
        mortgage loan.

       

      REIT:
        A Real
        Estate Investment Trust within the meaning of Section 856(a) of the
        Code.

       

      Related
        Documents:
        With
        respect to each Mortgage Loan, the documents specified in Section 2.1(b)
        of the
        Sale and Servicing Agreement, with respect to the Initial Mortgage Loans
        and the
        Subsequent Mortgage Loans, and any documents required to be added to such
        documents pursuant to the Sale and Servicing Agreement, the Subsequent Transfer
        Agreement, the Trust Agreement, Indenture or the Servicing Agreement.

       

      Relief
        Act:
        The
        Servicemembers Civil Relief Act, formerly known as the Soldiers’ and Sailors’
Civil Relief Act of 1940, as amended.

       

      Relief
        Act Reductions:
        With
        respect to any Payment Date and any Mortgage Loan as to which there has been
        a
        reduction in the amount of interest collectible thereon for the most recently
        ended calendar month as a result of the application of the Relief Act or
        any
        similar law, the amount, if any, by which (i) interest collectible on such
        Mortgage Loan for the most recently ended calendar month is less than
        (ii) interest accrued thereon for such month pursuant to the Mortgage
        Note.

       

      REMIC
        Class A Notes:
        Each
        Class of notes issued in connection with a REMIC Conversion in exchange for
        a
        Classes of Class A Notes then outstanding and bearing the same alpha numeric
        designation.

       

      REMIC
        Conversion:
        The
        deposit by the Issuing Entity of the Mortgage Loans (but not any REO Properties)
        pursuant to a pooling and servicing agreement into a New York common law
        trust
        with respect to whose assets one or more REMIC elections shall be made,
        following the occurrence of a TMP Trigger Event and the other preconditions
        to
        such conversion set forth in the Indenture and the Trust Agreement. No REMIC
        Conversion shall occur unless (i) the Master Servicer shall have purchased
        all
        REO properties from the Trust Estate at their fair market value and (iii)
        the
        entity seeking to separately transfer or hold any Class of the Privately
        Offered
        Notes shall have made provision for payment satisfactory to the Owner Trustee,
        the Indenture Trustee, the Paying Agent and the Note Registrar and others
        for
        any initial or ongoing additional administrative expenses associated with
        the
        REMIC elections made in connection with a REMIC Conversion.

       

      Remittance
        Report:
        A
        report prepared by the Master Servicer and delivered to the Indenture Trustee
        in
        accordance with Section 4.02 of the Indenture.

       

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

       

      Replacement
        Mortgage Loan:
        A
        Mortgage Loan substituted by CHL for a Deleted Mortgage Loan which must,
        on the
        date of such substitution, as confirmed in a Request for Release, substantially
        in the form of Exhibit D to the Sale and Servicing Agreement, (i) have
        a Stated Principal Balance, after deduction of the principal portion of the
        Scheduled Payment due in the month of substitution, not in excess of, and
        not
        less than 90% of the Stated Principal Balance of the Deleted Mortgage Loan;
        (ii) have a Mortgage Rate not less than or no more than 1% per annum higher
        than the Mortgage Rate of the Deleted Mortgage Loan and, with respect to
        any
        Adjustable Rate Mortgage Loan: (a) have a Maximum Mortgage Rate no more
        than 1% per annum higher or lower than the Maximum Mortgage Rate of the Deleted
        Mortgage Loan; (c) have the same Index and Periodic Rate Cap as that of the
        Deleted Mortgage Loan; and (d) not permit conversion of the related
        Mortgage Rate to a fixed Mortgage Rate; (iii) have the same or higher
        credit quality characteristics than that of the Deleted Mortgage Loan;
        (iv) be accruing interest at a rate not more than 1% per annum higher or
        lower than that of the Deleted Mortgage Loan; (v) have a Loan-to-Value
        Ratio no higher than that of the Deleted Mortgage Loan; (vi) not permit
        conversion of the Mortgage Rate from a fixed rate to a variable rate or visa
        versa; (vii) provide for a prepayment charge on terms substantially similar
        to those of the Prepayment Charge, if any, of the Deleted Mortgage Loan;
        (viii) have the same lien priority as the Deleted Mortgage Loan;
        (ix) constitute the same occupancy type as the Deleted Mortgage Loan; (x)
        [reserved], (xi) not be a Cooperative Loan unless the Deleted Mortgage Loan
        was
        a Cooperative Loan, (xii) [reserved], and (xiii) comply with each
        representation and warranty set forth in Section 2.03 of the Sale and Servicing
        Agreement. Following a REMIC election with respect to the Issuing Entity,
        the
        Indenture Trustee shall only permit a Replacement Mortgage Loan to be
        transferred to the Trust for a period of two years beginning with the Start-up
        Date.

       

      Reportable
        Event:
        Any
        event required to be reported on Form 8-K, but at a minimum will
        include:

       

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

       

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

       

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

       

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

       

      (e)
         any
        amendment to the Indenture or the Sale and Servicing Agreement;

       

      (f) the
        resignation, removal, replacement, substitution of the Master Servicer, any
        Subservicer or the Indenture Trustee;

       

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

       

      (h) with
        respect to the Master Servicer, the Indenture Trustee and the Depositor only,
        a
        required distribution to holders of the Notes is not made as of the required
        Payment Date under the Indenture.

       

      Reporting
        Subcontractor:
        With
        respect to the Master Servicer or the Indenture Trustee, any Subcontractor
        determined by such Person pursuant to Section 11.08(b) to be “participating in
        the servicing function” within the meaning of Item 1122 of Regulation AB.
        References to a Reporting Subcontractor shall refer only to the Subcontractor
        of
        such Person and shall not refer to Subcontractors generally.

       

      Request
        for Release:
        The
        Request for Release submitted by the Master Servicer to the Indenture Trustee,
        substantially in the form of Exhibits C and D to the Sale and Servicing
        Agreement, as appropriate.

       

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

       

      Responsible
        Officer:
        When
        used with respect to the Indenture Trustee, any Vice President, any Assistant
        Vice President, the Secretary, any Assistant Secretary, any Trust Officer
        or any
        other officer of the Indenture Trustee customarily performing functions similar
        to those performed by any of the above designated officers and also to whom,
        with respect to a particular matter, such matter is referred because of such
        officer’s knowledge of and familiarity with the particular subject.

       

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

       

      Rule
        144A:
        Rule
        144A under the Securities Act.

       

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

       

      Sale
        and Servicing Agreement:
        The
Sale
        and
        Servicing Agreement,
        dated
        as of June 1, 2006, the Issuing Entity, the Master Servicer, the Indenture
        Trustee, the Seller and CHL.

       

      Sarbanes-Oxley
        Certification:
        As
        defined in Section 11.05 of the Sale and Servicing Agreement.

       

      Scheduled
        Payment:
        The
        scheduled monthly payment on a Mortgage Loan due on any Due Date allocable
        to
        principal and/or interest on such Mortgage Loan which, unless otherwise
        specified in the Sale and Servicing Agreement, shall give effect to any related
        Debt Service Reduction and any Deficient Valuation that affects the amount
        of
        the monthly payment due on such Mortgage Loan.

       

      Secured
        Party:
        A
        person to whom the Single Owner has pledged Privately Offered Notes and the
        Owner Trust Certificate to secure indebtedness owed by the Single Owner to
        such
        person or a person who has acted as a counterparty to the Single Owner pursuant
        to a repurchase agreement with regard to Privately Offered Notes and the
        Owner
        Trust Certificate.

       

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

       

      Seller:
        GSC
        Capital Corp. QRS Delaware Loan Holdings, Inc., a Delaware corporation, and
        its
        successors and assigns, in its capacity as seller of the Mortgage Loans to
        the
        Depositor.

       

      Senior
        Enhancement Percentage:
        With
        respect to a Payment Date on or after the Stepdown Date, the fraction (expressed
        as a percentage) (1) the numerator of which is the excess of (a) the aggregate
        Stated Principal Balance of the Mortgage Loans for the preceding Payment
        Date
        over (b) (i) before the Note Principal Balances of the Senior Notes have
        been
        reduced to zero, the sum of the Note Principal Balances of the Senior Notes,
        or
        (ii) after the Note Principal Balances of the Senior Notes have been reduced
        to
        zero, the Note Principal Balance of the most senior Class of Subordinate
        Notes
        outstanding, as of the related Master Servicer Advance Date, and (2) the
        denominator of which is the aggregate Stated Principal Balance of the Mortgage
        Loans for the preceding Payment Date.

       

      Senior
        Notes:
        Class
        A-1 Notes and Class A-2.

       

      Servicing
        Advances:
        All
        customary, reasonable and necessary “out of pocket” costs and expenses incurred
        in the performance by the Master Servicer of its servicing obligations
        hereunder, including, but not limited to, the cost of (i) the preservation,
        restoration and protection of a Mortgaged Property, (ii) any enforcement
        or
        judicial proceedings, including foreclosures, (iii) the management and
        liquidation of any REO Property and (iv) compliance with the obligations
        under
        Section 3.09 of the Sale and Servicing Agreement.

       

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

       

      Servicing
        Fee:
        As to
        each Mortgage Loan and any Payment Date, an amount equal to one month’s interest
        at the Servicing Fee Rate on the Stated Principal Balance of such Mortgage
        Loan
        or, in the event of any payment of interest that accompanies a Principal
        Prepayment in full made by the Mortgagor, interest at the Servicing Fee Rate
        on
        the Stated Principal Balance of such Mortgage Loan for the period covered
        by
        such payment of interest.

       

      Servicing
        Fee Rate:
        With
        respect to each Mortgage Loan and Due Date, the amount set forth in the Mortgage
        Loan Schedule for such Due Date.

       

      Single
        Owner:
        Any one
        person who is treated for federal income tax purposes as owning directly,
        or
        indirectly through one or more entities that are disregarded as entities
        separate from such person, the Owner Trust Certificate and a 100% Percentage
        Interest in each Class of Privately Offered Notes.

       

      Sixty-Day
        Delinquency Rate:
        With
        respect to any Payment Date on or after the Stepdown Date, a fraction, expressed
        as a percentage, the numerator of which is the aggregate Stated Principal
        Balance for such Payment Date of all Mortgage Loans 60 or more days delinquent
        as of the close of business on the last day of the calendar month preceding
        such
        Payment Date (including Mortgage Loans in foreclosure, in bankruptcy and
        REO
        Properties) and the denominator of which is the aggregate Stated Principal
        Balance for such Payment Date of all Mortgage Loans.

       

      Sponsor:
        GSC
        Capital Corp.

       

      Start-up
        Date:
        The
        Indenture Trustee shall designate the REMIC Closing Date as the “Startup Day” of
        each REMIC within the meaning of Section 860G(a)(9) of the Code.

       

      Stated
        Principal Balance:
        With
        respect to any Mortgage Loan or related REO Property (i) as of the Cut-off
        Date, the unpaid principal balance of the Mortgage Loan as of such date (before
        any adjustment to the amortization schedule for any moratorium or similar
        waiver
        or grace period), after giving effect to any partial prepayments or Liquidation
        Proceeds received prior to such date and to the payment of principal due
        on or
        prior to such date and irrespective any delinquency in payment by the related
        mortgagor, and (ii) as of any Payment Date, the Stated Principal Balance of
        the Mortgage Loan as of its Cut-off Date,
        minus
        the
        sum of (a) the principal portion of the Scheduled Payments (x) due
        with respect to such Mortgage Loan during each Due Period ending prior to
        such
        Payment Date and (y) that were received by the Master Servicer as of the
        close
        of business on the Determination Date related to such Payment Date or with
        respect to which Advances were made as of the Master Servicer Advance Date
        related to such Payment Date, (b) all Principal Prepayments with respect to
        such Mortgage Loan received by the Master Servicer during each Prepayment
        Period
        ending prior to such Payment Date, and (c) all Liquidation Proceeds collected
        with respect to such Mortgage Loan during each Due Period ending prior to
        such
        Payment Date, to the extent applied by the Master Servicer as recoveries
        of
        principal in accordance with Section 3.11 of the Sale and Servicing
        Agreement. The Stated Principal Balance of any Mortgage Loan that becomes
        a
        Liquidated Mortgage Loan will be zero on the Payment Date following the Due
        Period in which such Mortgage Loan becomes a Liquidated Mortgage Loan.
        References herein to the Stated Principal Balance of the Mortgage Loans at
        any
        time shall mean the aggregate Stated Principal Balances of all Mortgage Loans
        in
        the Trust Estate as of such time.

       

      Stepdown
        Date:
        The
        earlier to occur of (a) the Payment Date on which the aggregate Note Principal
        Balance of the Senior Notes is reduced to zero, and (b) the later to occur
        of
        (x) the Payment Date in July 2009 and (y) the first Payment Date on which
        the
        aggregate Note Principal Balance of the Senior Notes (after calculating
        anticipated distributions on such Distribution Date) is less than or equal
        to
        86.10% of the aggregate Stated Principal Balance of the Mortgage Loans for
        such
        Payment Date. 

       

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

       

      
        	 	
                Stepdown
                  Target

                Subordination
                  Percentage

              
	
                Class
                  M-1

              	
                10.90%

              
	
                Class
                  M-2

              	
                8.50%

              
	
                Class
                  M-3

              	
                7.00%

              
	
                Class
                  M-4

              	
                6.00%

              
	
                Class
                  M-5

              	
                5.00%

              
	
                Class
                  M-6

              	
                4.00%

              
	
                Class
                  M-7

              	
                3.00%

              
	
                Class
                  M-8

              	
                2.00%

              
	
                Class
                  B-1

              	
                1.00%

              

      

      

       

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

       

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

       

      Subordinate
        Notes:
        The
        Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
        Class M-8 and Class B-1 Notes.

       

      Subsequent
        Recoveries:
        As to
        any Payment Date, with respect to a Liquidated Mortgage Loan that resulted
        in a
        Realized Loss in a prior calendar month, unexpected amounts received by the
        Master Servicer (net of any related expenses permitted to be reimbursed pursuant
        to Sections 3.08 and 3.11 of the Sale and Servicing Agreement) specifically
        related to such Liquidated Mortgage Loan after the classification of such
        Mortgage Loan as a Liquidated Mortgage Loan.

       

      Subservicer:
        Any
        servicer subservicing any Mortgage Loans pursuant to a subservicing agreement.
        Such subservicing arrangement and the terms of the related subservicing
        agreement must provide for the servicing of such Mortgage Loans in a manner
        consistent with the servicing arrangements contemplated hereunder.

       

      Substitution
        Adjustment Amount:
        The
        meaning ascribed to such term pursuant to Section 2.03 of the Sale and
        Servicing Agreement.

       

      Substitution
        Amount:
        With
        respect to any Mortgage Loan substituted pursuant to Section 2.03(d) of the
        Sale
        and Servicing Agreement, the excess of (x) the principal balance of the Mortgage
        Loan that is substituted for, over (y) the principal balance of the related
        substitute Mortgage Loan, each balance being determined as of the date of
        substitution.

       

      Swap
        Account:
        The
        separate Eligible Account created and initially maintained by the Indenture
        Trustee pursuant to Section 8.08 of the Indenture.

       

      Swap
        Adjustment Rate:
        For any
        Payment Date, a fraction, the numerator of which is the sum of (a) the Net
        Swap
        Payment payable to the Swap Counterparty with respect to such Payment Date
        times
        a fraction, the numerator of which is equal to 360 and the denominator of
        which
        is equal to the actual number of days in the related Accrual Period and (b)
        any
        Swap Termination Payment payable to the Swap Counterparty for such Payment
        Date
        (other than a Swap Termination Payment due to a Swap Counterparty Trigger
        Event), and the denominator of which is equal to the Stated Principal Balance
        of
        the Mortgage Loans.

       

      Swap
        Contract:
        The
        transaction evidenced by the Confirmation (as assigned to the Swap Contract
        Administrator pursuant to the Swap Contract Assignment Agreement), a form
        of
        which is attached hereto as Exhibit F.

       

      Swap
        Contract Administration Agreement:
        The
        swap contract administration agreement dated as of the Closing Date among
        CHL,
        the Indenture Trustee and the Swap Contract Administrator, a form of which
        is
        attached hereto as Exhibit H.

       

      Swap
        Contract Administrator:
        The
        Bank of New York, in its capacity as swap contract administrator under the
        Swap
        Contract Administration Agreement.

       

      Swap
        Contract Assignment Agreement:
        The
        Assignment Agreement dated as of the Closing Date among CHL, the Swap Contract
        Administrator and the Swap Counterparty, a form of which is attached hereto
        as
        Exhibit G.

       

      Swap
        Counterparty:
        Barclays Bank PLC and its successors.

       

      Swap
        Contract Termination Date:
        The
        Payment Date in [March 2011].

       

      Swap
        Counterparty Trigger Event:
        A Swap
        Termination Payment that is triggered upon (i) an “Event of Default” under the
        Swap Contract with respect to which the Swap Counterparty is the sole
“Defaulting Party” (as defined in the Swap Contract) or (ii) a “Termination
        Event” or “Additional Termination Event” under the Swap Contract with respect to
        which the Swap Counterparty is the sole “Affected Party” (as defined in the Swap
        Contract).

       

      Swap
        Termination Payment:
        The
        payment payable to either party under the Swap Contract due to an early
        termination of the Swap Contract.

       

      Swap
        LIBOR:
        A per annum rate equal to the floating rate payable by the Swap Counterparty
        to
        the Swap Contract Administrator under the Swap Contract.

       

      TMP
        Trigger Event:
        The
        occurrence of any event which causes the Issuing Entity to become taxable
        as a
        corporation.

       

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

       

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

       

      Trust
        or Trust Fund:
        GSC
        Capital Corp. Mortgage Trust 2006-2 to be created pursuant to the Trust
        Agreement. 

       

      Trust
        Agreement:
        The
        Amended and Restated Trust Agreement dated as of June 23, 2006, among the
        Owner
        Trustee, the Depositor and The Bank of New York, as Certificate Registrar
        and
        Certificate Paying Agent, relating to the Trust. 

       

      Trust
        Estate:
        The
        meaning specified in the Granting Clause of the Indenture. 

       

      Underlying
        REMIC Class A Certificates:
        The
        Underlying REMIC Class A-1 Certificatesand the Underlying REMIC Class A-2
        Certificates.

       

      Underlying
        REMIC Class A-1 Certificate:
        Any
        Class A-1 Certificate evidencing a senior interest in the Mortgage Loans
        and
        issued pursuant to a pooling and servicing agreement in connection with a
        REMIC
        Conversion.

       

      Underlying
        REMIC Class A-2 Certificate:
        Any
        Class A-2 Certificate evidencing a senior interest in the Mortgage Loans
        and
        issued pursuant to a pooling and servicing agreement in connection with a
        REMIC
        Conversion.

       

      Underlying
        REMIC Class M-1 Certificate:
        Any
        Class M-1 Certificate evidencing a subordinate interest in the Mortgage Loans
        and issued pursuant to a pooling and servicing agreement in connection with
        a
        REMIC Conversion.

       

      Underlying
        REMIC Class M-2 Certificate:
        Any
        Class M-2 Certificate evidencing a subordinate interest in the Mortgage Loans
        and issued pursuant to a pooling and servicing agreement in connection with
        a
        REMIC Conversion.

       

      Underlying
        REMIC Class M-3 Certificate:
        Any
        Class M-3 Certificate evidencing a subordinate interest in the Mortgage Loans
        and issued pursuant to a pooling and servicing agreement in connection with
        a
        REMIC Conversion.

       

      Underlying
        REMIC Class M-4 Certificate:
        Any
        Class M-4 Certificate evidencing a subordinate interest in the Mortgage Loans
        and issued pursuant to a pooling and servicing agreement in connection with
        a
REMIC Conversion.

       

      Underlying
        REMIC Class M-5 Certificate:
        Any
        Class M-5 Certificate evidencing a subordinate interest in the Mortgage Loans
        and issued pursuant to a pooling and servicing agreement in connection with
        a
        REMIC Conversion.

       

      Underlying
        REMIC Class M-6 Certificate:
        Any
        Class M-6 Certificate evidencing a subordinate interest in the Mortgage Loans
        and issued pursuant to a pooling and servicing agreement in connection with
        a
        REMIC Conversion.

       

      Underlying
        REMIC Class M-7 Certificate:
        Any
        Class M-7 Certificate evidencing a subordinate interest in the Mortgage Loans
        and issued pursuant to a pooling and servicing agreement in connection with
        a
        REMIC Conversion.

       

      Underlying
        REMIC Class M-8 Certificate:
        Any
        Class M-8 Certificate evidencing a subordinate interest in the Mortgage Loans
        and issued pursuant to a pooling and servicing agreement in connection with
        a
        REMIC Conversion.

       

      Unpaid
        Realized Loss Amount:
        For any
        Class of Adjustable Rate Notes and any Payment
        Date,
        (x)
        the portion of the aggregate Applied Realized Loss Amount previously allocated
        to that Class and remaining unpaid from prior Payment Dates minus
        (y) any
        increase in the Note Principal Balance of that Class due to the allocation
        of
        Subsequent Recoveries to the Note Principal Balance of that Class pursuant
        to
        Section 3.28 of the Indenture.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]