Document:

Unassociated Document

    
       

    

    EXECUTION
      VERSION

     

    
      

      

    

    ASSET
      BACKED FUNDING CORPORATION

     

    as
      Purchaser

     

    and

     

    CREDIT-BASED
      ASSET SERVICING AND SECURITIZATION LLCAS SELLER

     

    MORTGAGE
      LOAN PURCHASE AGREEMENT

     

    Fixed-Rate
      and Adjustable-Rate Mortgage Loans

     

    C-BASS
      2007-CB5 Trust,

    C-BASS
      Mortgage Loan Asset-Backed Certificates, Series 2007-CB5

     

    Dated
      as
      of May 1, 2007

    

    
      

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

    

      
        	 	 	 	
                Page

              
	
                ARTICLE
                  I DEFINITIONS

              	 	
                1

              
	 	 
	
                Section
                  1.01.

              	 	
                Definitions.

              	
                1

              
	 	 	 	 
	
                ARTICLE
                  II SALE OF MORTGAGE LOANS; PAYMENT OF PURCHASE PRICE

              	
                2

              
	 	 
	
                Section
                  2.01.

              	 	
                Sale
                  of Mortgage Loans.

              	
                2

              
	
                Section
                  2.02.

              	 	
                Obligations
                  of Seller Upon Sale.

              	
                2

              
	
                Section
                  2.03.

              	 	
                Payment
                  of Purchase Price for the Mortgage Loans.

              	
                4

              
	 	 	 	 
	
                ARTICLE
                  III REPRESENTATIONS AND WARRANTIES; REMEDIES FOR BREACH

              	
                5

              
	 	 
	
                Section
                  3.01.

              	 	
                Seller
                  Representations and Warranties Relating to the Mortgage
                  Loans.

              	
                5

              
	
                Section
                  3.02.

              	 	
                Seller
                  Representations and Warranties.

              	
                13

              
	 	 	 	 
	
                ARTICLE
                  IV SELLER’S COVENANTS

              	
                16

              
	 	 
	
                Section
                  4.01.

              	 	
                Covenants
                  of the Seller.

              	
                16

              
	 	 	 	 
	
                ARTICLE
                  V TERMINATION

              	
                17

              
	 	 
	
                Section
                  5.01.

              	 	
                Termination.

              	
                17

              
	 	 	 	 
	
                ARTICLE
                  VI MISCELLANEOUS PROVISIONS

              	
                17

              
	 	 
	
                Section
                  6.01.

              	 	
                Amendment.

              	
                17

              
	
                Section
                  6.02.

              	 	
                Governing
                  Law.

              	
                17

              
	
                Section
                  6.03.

              	 	
                Notices.

              	
                17

              
	
                Section
                  6.04.

              	 	
                Severability
                  of Provisions.

              	
                18

              
	
                Section
                  6.05.

              	 	
                Counterparts.

              	
                18

              
	
                Section
                  6.06.

              	 	
                Further
                  Agreements.

              	
                18

              
	
                Section
                  6.07.

              	 	
                Intention
                  of the Parties.

              	
                18

              
	
                Section
                  6.08.

              	 	
                Successors
                  and Assigns; Assignment of this Agreement.

              	
                19

              
	
                Section
                  6.09.

              	 	
                Survival.

              	
                19

              
	 	 	 	 
	
                Schedule
                  I

              	 	
                Mortgage
                  Loan Schedule

              	 

      

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

       

    

    MORTGAGE
      LOAN PURCHASE AGREEMENT, dated as of May 1, 2007 (the “Agreement”),
      between CREDIT-BASED ASSET SERVICING AND SECURITIZATION LLC (“C-BASS”
or
      the
“Seller”)
      and
      ASSET BACKED FUNDING CORPORATION (the “Purchaser”).

     

    W I T N E S S E T H:

     

    WHEREAS,
      the Seller is the owner of either the notes or other evidence of indebtedness
      (the “Mortgage
      Notes”)
      or
      other evidence of ownership so indicated on Schedule I hereto, and the other
      documents or instruments constituting the Mortgage File (collectively, the
      “Mortgage
      Loans”);
      and

     

    WHEREAS,
      the Seller, as of the date hereof, owns the mortgages (the “Mortgages”)
      on the
      properties (the “Mortgaged
      Properties”)
      securing such Mortgage Loans, including rights (a) to any property acquired
      by
      foreclosure or deed in lieu of foreclosure or otherwise, and (b) to the proceeds
      of any insurance policies covering the Mortgage Loans or the Mortgaged
      Properties or the obligors on the Mortgage Loans; and

     

    WHEREAS,
      the parties hereto desire that the Seller sell the Mortgage Loans to the
      Purchaser and the Purchaser purchase the Mortgage Loans from the Seller pursuant
      to the terms of this Agreement; and

     

    WHEREAS,
      pursuant to the terms of a Pooling and Servicing Agreement, dated as of May
      1,
      2007 (the “Pooling
      and Servicing Agreement”),
      among
      the Purchaser, as depositor, the Seller, Litton Loan Servicing LP (“Litton”),
      as
      servicer, and LaSalle Bank National Association, as trustee (the “Trustee”),
      the
      Purchaser will convey the Mortgage Loans to C-BASS 2007-CB5 Trust.

     

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

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01.  Definitions.

     

    All
      capitalized terms used but not defined herein and below shall have the meanings
      assigned thereto in the Pooling and Servicing Agreement.

     

    “ALTA”:
      The
      American Land Title Association or any successor thereto.

     

    “Custodian”:
      A
      custodian acceptable to the Trustee, which may be the Trustee and which shall
      not be the Seller or any affiliate of the Seller. The initial Custodian shall
      be
      The Bank of New York.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II

     

    SALE
      OF MORTGAGE LOANS; PAYMENT OF PURCHASE PRICE

     

    Section
      2.01.  Sale
      of Mortgage Loans.

     

    The
      Seller does hereby agree to and does hereby sell, assign, set over, and
      otherwise convey to the Purchaser, without recourse, on the Closing
      Date, all its right, title and interest in and to (i) each Mortgage Loan
      and the related Cut-off Date Principal Balance thereof, including any Related
      Documents; (ii) all payments on or collections in respect of the Mortgage Loans
      due after the Cut-off Date; (iii) property which secured such Mortgage Loan
      and
      which has been acquired by foreclosure or deed in lieu of foreclosure; (iv)
      its
      interest in any insurance policies in respect of the Mortgage Loans; and (v)
      all
      proceeds of any of the foregoing.

     

    Section
      2.02.  Obligations
      of Seller Upon Sale.

     

    (a)  In
      connection with any transfer pursuant to Section 2.01 hereof, the Seller further
      agrees, at its own expense, on or prior to the Closing Date, (x) to indicate
      in
      its books and records that the Mortgage Loans have been sold to the Purchaser
      pursuant to this Agreement and (y) to deliver to the Purchaser and the Trustee
      a
      computer file containing a true and complete list of all the Mortgage Loans
      specifying, among other things, for each Mortgage Loan, as of the Cut-off Date,
      its account number and Cut-off Date Principal Balance. Such file (the
“Mortgage
      Loan Schedule”)
      which
      is included as Exhibit D to the Pooling and Servicing Agreement, shall also
      be
      marked as Schedule I to this Agreement and is hereby incorporated into and
      made
      a part of this Agreement.

     

    In
      connection with such transfer and assignment of the Mortgage Loans, the Seller
      shall, on behalf of the Purchaser, deliver to and deposit with, the Custodian,
      as the agent of the Trustee, the following documents or instruments (with
      respect to each Mortgage Loan, a “Mortgage
      File”)
      with
      respect to each Mortgage Loan so transferred and assigned:

     

    (i)  the
      original Mortgage Note, endorsed either (A) in blank or (B) in the following
      form: “Pay to the order of LaSalle Bank National Association, as Trustee for the
      C-BASS Mortgage Loan Asset-Backed Certificates, Series 2007-CB5, without
      recourse,” or with respect to any lost Mortgage Note, an original lost note
      affidavit stating that the original mortgage note was lost, misplaced or
      destroyed, together with a copy of the related Mortgage Note;

     

    (ii)  the
      original Mortgage with evidence of recording thereon, and the original recorded
      power of attorney, if the Mortgage was executed pursuant to a power of attorney,
      with evidence of recording thereon or, if such Mortgage or power of attorney
      has
      been submitted for recording but has not been returned from the applicable
      public recording office, has been lost or is not otherwise available, a copy
      of
      such Mortgage or power of attorney, as the case may be, certified to be a true
      and complete copy of the original submitted for recording;

     

    (iii)  an
      original Assignment of Mortgage, in form and substance acceptable for recording.
      The Mortgage shall be assigned either (A) in blank or (B) to “LaSalle Bank
      National Association, as Trustee for the C-BASS Mortgage Loan Asset-Backed
      Certificates, Series 2007-CB5, without recourse”;

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (iv)  an
      original copy of any intervening assignment of Mortgage showing a complete
      chain
      of assignments;

     

    (v)  the
      original or a certified copy of the lender’s title insurance policy;
      and

     

    (vi)  the
      original or copies of each assumption, modification, written assurance or
      substitution agreement, if any.

     

    If
      any of
      the documents referred to in Section 2.02(ii), (iii) or (iv) above has as of
      the
      Closing Date been submitted for recording but either (x) has not been returned
      from the applicable public recording office or (y) has been lost or such public
      recording office has retained the original of such document, the obligations
      of
      the Seller to deliver such documents shall be deemed to be satisfied upon (1)
      delivery to the Custodian no later than the Closing Date, of a copy of each
      such
      document certified by the Seller in the case of (x) above or the applicable
      public recording office in the case of (y) above to be a true and complete
      copy
      of the original that was submitted for recording and (2) if such copy is
      certified by the Seller, delivery to the Custodian, promptly upon receipt
      thereof of either the original or a copy of such document certified by the
      applicable public recording office to be a true and complete copy of the
      original. If, pursuant to Section 2.02(v) above, the original lender’s title
      insurance policy was required to be delivered and was not, the Seller shall
      deliver or cause to be delivered to the Custodian, a written commitment or
      interim binder or preliminary report of title issued by the title insurance
      or
      escrow company, with the original to be delivered to the Custodian, promptly
      upon receipt thereof. The Seller shall deliver or cause to be delivered to
      the
      Custodian promptly upon receipt thereof any other original documents
      constituting a part of a Mortgage File received with respect to any Mortgage
      Loan, including, but not limited to, any original documents evidencing an
      assumption or modification of any Mortgage Loan.

     

    Upon
      discovery or receipt of notice of any materially defective document in, or
      that
      a document is missing from, a Mortgage File, the Seller shall have 120 days
      to
      cure such defect or deliver such missing document to the Custodian (or within
      90
      days of the earlier of Seller’s discovery or receipt of notification if such
      defect would cause the Mortgage Loan not to be a “qualified mortgage” for REMIC
      purposes). If the Seller does not cure such defect or deliver such missing
      document within such time period, the Seller shall either repurchase or
      substitute for such Mortgage Loan in accordance with Section 2.03 of the Pooling
      and Servicing Agreement.

     

    The
      Purchaser hereby acknowledges its acceptance of all right, title and interest
      to
      the Mortgage Loans and other property, now existing and hereafter created,
      conveyed to it pursuant to Section 2.01.

     

    The
      parties hereto intend that the transaction set forth herein be a sale by the
      Seller to the Purchaser of all the Seller’s right, title and interest in and to
      the Mortgage Loans and other property described above. In the event the
      transaction set forth herein is deemed not to be a sale, the Seller hereby
      grants to the Purchaser a security interest in all of the Seller’s right, title
      and interest in, to and under the Mortgage Loans and other property described
      above, whether now existing or hereafter created, to secure all of the Seller’s
      obligations hereunder; and this Agreement shall constitute a security agreement
      under applicable law. The Seller and the Purchaser shall, to the extent
      consistent with this Agreement, take such actions as may be necessary to ensure
      that, if this Agreement were deemed to create a security interest in the
      Mortgage Loans, such security interest would be deemed to be a perfected
      security interest of first priority under applicable law and will be maintained
      as such throughout the term of the Pooling and Servicing Agreement.

     

    
      
        
        

      

      
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    (b)  The
      Seller shall cause the Assignments of Mortgage which were delivered in blank
      to
      be completed and shall cause all Assignments referred to in Section 2.02(iii)
      hereof and, to the extent necessary, in Section 2.02(iv) hereof to be recorded;
      provided, however, the Seller need not cause to be recorded any Assignment
      which
      relates to a Mortgage Loan in any jurisdiction under the laws of which, as
      evidenced by an Opinion of Counsel delivered by the Seller to the Trustee and
      the Rating Agencies, the recordation of such Assignment is not necessary to
      protect the Trustee’s interest in the related Mortgage Loan. Under the terms of
      the Pooling and Servicing Agreement, the Seller shall be required to deliver
      such assignments for recording within 30 days of the Closing Date. The Seller
      shall furnish the Custodian with a copy of each Assignment of Mortgage submitted
      for recording. In the event that any such Assignment is lost or returned
      unrecorded because of a defect therein, the Seller shall promptly have a
      substitute Assignment prepared or have such defect cured, as the case may be,
      and thereafter cause each such Assignment to be duly recorded. In the event
      that
      any Mortgage Note is endorsed in blank as of the Closing Date, promptly
      following the Closing Date the Seller shall cause to be completed such
      endorsements in the following form: “Pay to the order of LaSalle Bank National
      Association, as Trustee for the C-BASS Mortgage Loan Asset-Backed Certificates,
      Series 2007-CB5, without recourse.”

     

    Section
      2.03.  Payment
      of Purchase Price for the Mortgage Loans.

     

    In
      consideration of the sale of the Mortgage Loans from the Seller to the Purchaser
      on the Closing Date, the Purchaser agrees to pay to the Seller on the Closing
      Date by transfer of immediately available funds, as directed by the Seller,
      an
      amount equal to $[__________] in respect of the Mortgage Loans (the
“Purchase
      Price”),
      net
      of an expense reimbursement amount of $165,000 (the “Expense
      Reimbursement Amount”).
      The
      Expense Reimbursement
      Amount
      shall reimburse the Purchaser for the Purchaser’s Securities and Exchange
      Commission registration statement fees and the Purchaser’s registration
      statement administration fees allocable to the Trust. The Seller shall pay,
      and
      be billed directly for, all reasonable expenses incurred by the
      Purchaser in connection with the issuance of the Certificates, including,
      without limitation, printing fees incurred in connection with the prospectus
      relating to the Certificates, blue sky registration fees and expenses, fees
      and
      reasonable expenses of Purchaser’s counsel, fees of the rating agencies
      requested to rate the Certificates, accountant’s fees and expenses and the fees
      and expenses of the Trustee and other out-of-pocket costs, if any. If the
      Purchaser shall determine that the Expense Reimbursement Amount is not
      sufficient to reimburse the Purchaser for all reasonable expenses incurred
      by it
      that are subject to reimbursement by the Seller hereunder as described above,
      the Seller shall promptly reimburse the Purchaser for such additional amounts
      upon written notice by the Purchaser to the Seller.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      III

     

    REPRESENTATIONS
      AND WARRANTIES; REMEDIES FOR BREACH

     

    Section
      3.01.    Seller Representations and Warranties Relating to the
      Mortgage Loans.

     

    The
      Seller hereby represents and warrants to the Purchaser, with respect to the
      Mortgage Loans, that as of the Closing Date or as of such date specifically
      provided herein:

     

    (a)  The
      information set forth in the Mortgage Loan Schedule is complete, true and
      correct as of the Cut-off Date.

     

    (b)  There
      are
      no delinquent taxes, ground rents, water charges, sewer rents, assessments,
      including assessments payable in future installments, or other outstanding
      charges affecting the related Mortgaged Property.

     

    (c)  The
      terms
      of the Mortgage Note and the Mortgage have not been impaired, waived, altered
      or
      modified in any respect, except by written instruments, recorded in the
      applicable public recording office if necessary to maintain the lien priority
      of
      the Mortgage and the interests of the Certificateholders, and which have been
      delivered to the Trustee; the substance of any such waiver, alteration or
      modification has been approved by the title insurer, to the extent required
      by
      the related policy, and is reflected on the Mortgage Loan Schedule. No
      instrument of waiver, alteration or modification has been executed, and no
      Mortgagor has been released, in whole or in part, except, in connection with
      an
      assumption agreement approved by the title insurer, to the extent required
      by
      the policy, and which assumption agreement has been delivered to the Custodian
      and the terms of which are reflected in the Mortgage Loan Schedule.

     

    (d)  The
      Mortgage Note and the Mortgage are not subject to any right of rescission,
      set-off, counterclaim or defense, including the defense of usury, nor will
      the
      operation of any of the terms of the Mortgage Note and the Mortgage, or the
      exercise of any right thereunder, render the Mortgage unenforceable, in whole
      or
      in part, or subject to any right of rescission, set-off, counterclaim or
      defense, including the defense of usury and no such right of rescission,
      set-off, counterclaim or defense has been asserted with respect
      thereto.

     

    (e)  All
      buildings upon the Mortgaged Property are insured by a generally acceptable
      insurer against loss by fire, hazards of extended coverage and such other
      hazards as are customary in the area where the Mortgaged Property is located,
      pursuant to insurance policies conforming to the requirements of the Pooling
      and
      Servicing Agreement. All such insurance policies contain a standard mortgagee
      clause naming the Seller, its successors and assigns as mortgagee and all
      premiums thereon have been paid. If upon origination of the Mortgage Loan,
      the
      Mortgaged Property was in an area identified on a Flood Hazard Map or Flood
      Insurance Rate Map issued by the Federal Emergency Management Agency as having
      special flood hazards (and such flood insurance has been made available) a
      flood
      insurance policy meeting the requirements of the current guidelines of the
      Federal Insurance Administration is in effect which policy conforms to the
      requirements of Fannie Mae and Freddie Mac. The Mortgage obligates the Mortgagor
      thereunder to maintain all such insurance at the Mortgagor’s cost and expense,
      and on the Mortgagor’s failure to do so, authorizes the holder of the Mortgage
      to maintain such insurance at the Mortgagor’s cost and expense and to seek
      reimbursement therefor from the Mortgagor. All acts required to be performed
      to
      preserve the rights and remedies of the Trustee in any such insurance policies
      have been performed including, without limitation, any necessary notifications
      of insurers and assignments of policies or interests therein.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

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

     

    (g)  The
      Mortgage has not been satisfied, canceled, subordinated (other than, with
      respect to second lien loans, the subordination to the first lien loan)
      rescinded, in whole or in part, and the Mortgaged Property has not been released
      from the lien of the Mortgage, in whole or in part, nor has any instrument
      been
      executed that would effect any such satisfaction, cancellation, subordination,
      rescission or release.

     

    (h)  The
      Mortgage is a valid, existing and enforceable first or second lien on the
      Mortgaged Property, including all improvements on the Mortgaged Property subject
      only to (1) the lien of current real property taxes and assessments not yet
      due
      and payable, (2) covenants, conditions and restrictions, rights of way,
      easements and other matters of the public record as of the date of recording
      being acceptable to mortgage lending institutions generally, and specifically
      referred to in the lender’s title insurance policy delivered to the originator
      of the Mortgage Loan, (3) other matters to which like properties are commonly
      subject which do not materially interfere with the benefits of the security
      intended to be provided by the Mortgage or the use, enjoyment, value or
      marketability of the related Mortgaged Property, and (4) with respect to any
      second lien mortgage loan, the lien of the related first mortgage loan. Any
      security agreement, chattel mortgage or equivalent document related to and
      delivered in connection with the Mortgage Loan establishes and creates a valid,
      existing and enforceable first or second lien and first or second priority
      security interest on the property described therein and the Seller has full
      right to sell and assign the same to the Purchaser.

     

    (i)  The
      Mortgage Note and the related Mortgage are genuine and each is the legal, valid
      and binding obligation of the maker thereof, enforceable in accordance with
      its
      terms (including, without limitation, any provisions therein relating to
      Prepayment Penalties).

     

    (j)  The
      proceeds of the Mortgage Loan have been fully disbursed to or for the account
      of
      the Mortgagor and there is no obligation for the mortgagee to advance additional
      funds thereunder and any and all requirements as to completion of any on-site
      or
      off-site improvement and as to disbursements of any escrow funds therefor have
      been complied with. All costs, fees and expenses incurred in making or closing
      the Mortgage Loan and the recording of the Mortgage have been paid, and the
      Mortgagor is not entitled to any refund of any amounts paid or due to the
      mortgagee pursuant to the Mortgage Note or Mortgage.

     

    (k)  Immediately
      prior to the transfer and assignment contemplated herein, the Seller was the
      sole owner and holder of the Mortgage Loans and has good and marketable title
      to
      each Mortgage Loan, free and clear of any and all liens, pledges, charges,
      claims, participation interests, mortgages, security interests or encumbrances
      or other interests of any nature and has full right and authority to sell and
      assign the same.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (l)  Each
      Mortgage Loan, unless listed on Exhibit V to the Pooling and Servicing
      Agreement, is covered by an ALTA mortgagee title insurance policy acceptable
      to
      Fannie Mae or Freddie Mac, issued by a title insurer acceptable to Fannie Mae
      and Freddie Mac and qualified to do business in the jurisdiction where the
      Mortgaged Property is located, insuring (subject to the exceptions contained
      in
      (h)(1) and (2) above) the Seller, its successors and assigns as to the first
      or
      second priority lien of the Mortgage in the original principal amount of the
      Mortgage Loan and against any loss by reason of the invalidity or
      unenforceability of the lien resulting from the provisions of the Mortgage
      providing for adjustment in the mortgage interest rate and/or monthly payment
      including any negative amortization thereunder. Additionally, such mortgagee
      title insurance policy affirmatively insures ingress and egress to and from
      the
      Mortgaged Property, and against encroachments by or upon the Mortgaged Property
      or any interest therein. The Seller is the sole insured of such mortgagee title
      insurance policy, and such lender’s title insurance policy is in full force and
      effect and will be in full force and effect upon the consummation of the
      transactions contemplated by this Agreement. No claims have been made under
      such
      mortgagee title insurance policy, and no prior holder of the related Mortgage,
      including the Seller, has done, by act or omission, anything which would impair
      the coverage of such mortgagee title insurance policy.

     

    (m)  There
      are
      no mechanics’ or similar liens or claims which have been filed for work, labor
      or material (and no rights are outstanding that under law could give rise to
      such lien) affecting the related Mortgaged Property which are or may be liens
      prior to, or equal or coordinate with, the lien of the related
      Mortgage.

     

    (n)  The
      collection practices used by the Servicer with respect to each Mortgage Note
      and
      Mortgage have been in all respects legal, proper, prudent and customary in
      the
      mortgage servicing industry.

     

    (o)  The
      Mortgage and related Mortgage Note contain customary and enforceable provisions
      such as to render the rights and remedies of the holder thereof adequate for
      the
      realization against the Mortgaged Property of the benefits of the security
      provided thereby, including, (1) in the case of a Mortgage designated as a
      deed
      of trust, by trustee’s sale, and (2) otherwise by judicial foreclosure. There is
      no homestead or other exemption available to the Mortgagor which would interfere
      with the right to sell the Mortgaged Property at a trustee’s sale or the right
      to foreclose the Mortgage. The Mortgagor has not notified the Seller and the
      Seller has no knowledge of any relief requested or allowed to the Mortgagor
      under the Servicemembers Civil Relief Act.

     

    (p)  The
      Mortgage Note is not and has not been secured by any collateral except the
      lien
      of the corresponding Mortgage on the Mortgaged Property and the security
      interest of any applicable security agreement or chattel mortgage.

     

    (q)  In
      the
      event the Mortgage constitutes a deed of trust, a trustee, duly qualified under
      applicable law to serve as such, has been properly designated and currently
      so
      serves and is named in the Mortgage, and no fees or expenses are or will become
      payable by the Purchaser to the trustee under the deed of trust, except in
      connection with a trustee’s sale after default by the Mortgagor.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (r)  No
      Mortgage Loan contains provisions pursuant to which monthly payments are (1)
      paid or partially paid with funds deposited in any separate account established
      by the Seller, the Mortgagor, or anyone on behalf of the Mortgagor, (2) paid
      by
      any source other than the Mortgagor or (3) contains any other similar provisions
      which may constitute a “buydown” provision. The Mortgage Loan is not a graduated
      payment mortgage loan and the Mortgage Loan does not have a shared appreciation
      or other contingent interest feature.

     

    (s)  The
      Mortgage Note, the Mortgage, the Assignment and any other documents required
      to
      be delivered with respect to each Mortgage Loan pursuant to the Pooling and
      Servicing Agreement have been delivered to the Trustee or its designee, all
      in
      compliance with the specific requirements of the Pooling and Servicing
      Agreement.

     

    (t)  If
      the
      residential dwelling on the Mortgaged Property is a condominium unit or a unit
      in a planned unit development (other than a de minimis planned unit development)
      such condominium or planned unit development project meets Fannie Mae’s
      eligibility requirements.

     

    (u)  None
      of
      the Mortgage Loans are secured by a leasehold estate or constitute other than
      real property under applicable state law.

     

    (v)  The
      rights with respect to each Mortgage Loan are assignable by the Seller without
      the consent of any Person other than consents which will have been obtained
      on
      or before the Closing Date.

     

    (w)  The
      Mortgage Loans are not being transferred by the Seller with any intent to
      hinder, delay or defraud any creditors of the Seller.

     

    (x)  All
      parties which have had any interest in each Mortgage Loan, whether as mortgagee,
      assignee, pledgee or otherwise, and including, without limitation, the Seller,
      are (or during the period in which they held and disposed such interest, were)
      in compliance with any and all applicable licensing requirements of the laws
      of
      the state wherein the property securing the Mortgage is located to the extent
      that any non-compliance thereunder would affect the value or marketability
      of
      the Mortgage Loans.

     

    (y)  To
      the
      best of Seller’s knowledge, the Mortgaged Property is free from any and all
      toxic or hazardous substances and there exists no violation of any local, state
      or federal environmental law, rule or regulation.

     

    (z)  The
      Mortgaged Property is free from material damage.

     

    (aa)  Each
      Mortgage Loan has been serviced by the Servicer in accordance with the terms
      thereof and Applicable Regulations.

     

    (bb)  No
      Mortgage Loan was made in connection with (a) facilitating the trade-in or
      exchange of a Mortgaged Property or (b) the construction or rehabilitation
      of a
      Mortgaged Property, unless the Mortgage Loan is a construction-to-permanent
      mortgage loan listed on the Mortgage Loan Schedule which has been fully
      disbursed, all construction work is complete and a completion certificate has
      been issued.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (cc)  The
      Servicer has fully furnished in accordance with the Fair Credit Reporting Act
      and its implementing regulations, accurate and complete information on the
      Mortgagor credit files to Equifax, Experian and Trans Union Credit Information
      Company (three of the credit repositories), on a monthly basis.

     

    (dd)  There
      is
      no proceeding pending for the total or partial condemnation and no eminent
      domain proceedings pending affecting any Mortgaged Property.

     

    (ee)  There
      was
      no fraud involved in the origination of any Mortgage Loan by the applicable
      mortgagee or Mortgagor, and to the best of the Seller’s knowledge, there was no
      fraud by the appraiser or any other party involved in the origination of any
      such Mortgage Loan.

     

    (ff)  Each
      mortgage file contains an appraisal of or a broker’s price opinion regarding the
      related Mortgaged Property indicating an appraised value equal to the appraised
      value identified for such Mortgaged Property on the Mortgage Loan Schedule.
      Each
      appraisal has been prepared on Fannie Mae or Freddie Mac forms.

     

    (gg)  No
      improvements on any Mortgaged Property encroach on adjoining properties (and
      in
      the case of a condominium unit, such improvements are within the project with
      respect to that unit), and no improvements on adjoining properties encroach
      upon
      such Mortgaged Property unless there exists in the applicable Mortgage File
      a
      title policy with endorsements which insure against losses sustained by the
      insured as a result of such encroachments.

     

    (hh)  With
      respect to escrow deposits, if any, all such payments are in the possession
      of,
      or under the control of, the Servicer and there exists no deficiencies in
      connection therewith for which customary arrangements for repayment thereof
      have
      not been made. No escrow deposits or escrow advances or other charges or
      payments due the Servicer have been capitalized under any Mortgage or the
      related Note.

     

    (ii)  No
      Mortgage Loan provides for the payment of a Prepayment Penalty beyond the five
      year term following the origination of such Mortgage Loan.

     

    (jj)  No
      Mortgage Loan is subject to any pending bankruptcy or insolvency proceeding.
      To
      the Seller’s best knowledge, no material litigation or lawsuit relating to any
      Mortgage Loan is pending.

     

    (kk)  The
      Seller used no selection procedures that identified the Mortgage Loans as being
      less desirable or valuable than other comparable mortgage loans originated
      or
      acquired by the Seller.

     

    (ll)  The
      sale,
      transfer, assignment and conveyance of Mortgage Loans by the Seller pursuant
      to
      this Agreement will not result in any tax, fee or governmental charge (other
      than income taxes and related taxes) payable by the Seller, the Depositor or
      the
      Trustee to any federal, state or local government other than taxes which have
      or
      will be paid by the Seller as due (“Transfer Taxes”). In the event that the
      Depositor or the Trustee receives actual notice of any Transfer Taxes arising
      out of the transfer, assignment and conveyance of the Mortgage Loans, other
      than
      any taxes to be paid by the creditor, on written demand by the Depositor or
      the
      Trustee, or upon the Seller’s otherwise being given notice thereof by the
      Depositor or the Trustee, the Seller shall pay, and otherwise indemnify and
      hold
      the Depositor and the Trustee harmless, on an after-tax basis, from and against
      any and all such Transfer Taxes (it being understood that the
      Certificateholders, the Trustee and the Depositor shall have no obligation
      to
      pay such Transfer Taxes).

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    (mm)  No
      Mortgage Loan is subject to the provisions of the Home Ownership and Equity
      Protection Act of 1994, as amended, or in violation of, or classified as a
“high
      cost,” “threshold,” “predatory” or “covered” loan under any other applicable
      state, federal or local law.

     

    (nn)  With
      respect to the Mortgage Loans, the Mortgaged Properties securing repayment
      of
      the related Mortgage Note, consist of a fee simple interest in a single parcel
      or two contiguous parcels of real property improved by a (A) one-family
      dwelling, (B) two-to four family dwelling, (C) one-family unit in a Fannie
      Mae
      eligible condominium project, (D) one-family dwelling in a planned unit
      development which is not a co-operative, (E) multi-family dwelling or (F) mobile
      home or manufactured dwelling which constitutes real property.

     

    (oo)  There
      is
      no default, breach, violation or event of acceleration existing under the
      Mortgage or the Mortgage Note and no event which, with the passage of time
      or
      with notice and the expiration of any grace or cure period, would constitute
      a
      default, breach, violation or event of acceleration, and the Seller has not
      waived any default, breach, violation or event of acceleration.

     

    (pp)  The
      Seller has no actual knowledge that with respect to any Mortgage Loan: (1)
      the
      Servicer has sent a notice of default to the related Mortgagor which the
      Servicer is currently seeking to enforce or (2) any foreclosure proceedings
      have
      been commenced or acceleration been declared which is currently pending. The
      Seller is not transferring any Mortgage Loan to the Purchaser with the intention
      or knowledge that the Purchaser or the Trust will acquire the related Mortgaged
      Property.

     

    (qq)  As
      of the
      Cut-off Date, none of the Mortgage Loans are 30 or more days contractually
      delinquent. The Seller has not waived any default, breach, violation or event
      of
      acceleration, and the Seller has not taken any action to waive any default,
      breach, violation or event of acceleration, with respect to any Mortgage
      Loan.

     

    (rr)  Each
      Mortgage Loan is a “qualified mortgage” within the meaning of Section 860
      G(a)(3) of the Code and Treasury Regulation Section 1.860G-2(a)(1).

     

    (ss)  With
      respect to any Adjustable-Rate Mortgage Loan, all rate adjustments have been
      performed in accordance with the terms of the related Mortgage Note or
      subsequent modifications, if any.

     

    (tt)  None
      of
      the proceeds of any Mortgage Loan were used to finance single-premium credit
      insurance policies.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    (uu)  Each
      Mortgage Loan is directly secured by a Mortgage on a residential property,
      and
      either (1) substantially all of the proceeds of the Mortgage Loan were used
      to
      acquire, improve or protect the portion of the residential property that
      consists of an interest in real property (within the meaning of Treasury
      Regulations Sections 1.856-3(c) and 1.856-3(d)) and the interest in real
      property was the only security for the Mortgage Loan as of the Testing Date
      (as
      defined below), or (2) the fair market value of the interest in real property
      which secures the Mortgage Loan was at least equal to 80% of the principal
      amount of the Mortgage Loan (a) as of the Testing Date, or (b) as of the Closing
      Date. For purposes of the previous sentence, (1) the fair market value of the
      referenced interest in real property shall first be reduced by (a) the amount
      of
      any lien on the interest in real property that is senior to the Mortgage Loan,
      unless the Mortgage Loans include all of a first lien loan and a second lien
      loan on the same Mortgaged Property, in which case the 80% test shall be applied
      in the aggregate, and (b) a proportionate amount of any lien on the interest
      in
      real property that is on a parity with the Mortgage Loan, and (2) the “Testing
      Date” shall be the date on which the referenced Mortgage Loan was originated
      unless (a) the Mortgage Loan was modified after the date of its origination
      in a
      manner that would cause “significant modification” of the Mortgage Loan within
      the meaning of Treasury Regulations Section 1.1001-3, and (b) the “significant
      modification” did not occur at a time when the Mortgage Loan was in default or
      when default with respect to the Mortgage Loan was reasonably
      foreseeable.

     

    (vv)  Any
      written agreement between the Mortgagor in respect of a Mortgage Loan and the
      Servicer modifying such Mortgagor’s obligation to make payments under the
      Mortgage Loan (such modified Mortgage Loan, a “Modified Mortgage Loan”) involved
      some assessment of the Mortgagor’s ability to repay the Modified Mortgage
      Loan.

     

    (ww)  With
      respect to each Mortgage Loan that is a mobile or manufactured housing unit,
      such unit is a “single family residence” within the meaning of Section 25(e)(1)
      of the Code, and has a minimum of 400 square feet of living space, a minimum
      width of 102 inches and is of a kind customarily used at a fixed
      location.

     

    (xx)  None
      of
      the Mortgage Loans originated in the State of New York are subject to Section
      6.1 of the New York State Banking Law.

     

    (yy)  No
      Mortgage Loan (other than a Mortgage Loan that is a New Jersey covered purchase
      loan) is a High Cost Loan or Covered Loan, as applicable (as such terms are
      defined in the then-current S&P’s LEVELS® Glossary which is now Version 5.7,
      Appendix E) and no Mortgage Loan originated on or after October 1, 2002 through
      March 6, 2003 is governed by the Georgia Fair Lending Act.

     

    (zz)  With
      respect to any Mortgage Loan that is secured by a second lien on the related
      Mortgaged Property, either (i) no consent for the Mortgage Loan is required
      by
      the holder of any related senior lien, or (ii) such consent has been obtained
      and is contained in the Mortgage File.

     

    (aaa)  In
      any
      case in which a Mortgage Loan is secured by a second lien and a senior lien
      on
      the related Mortgaged Property provides for negative amortization or deferred
      interest, the balance of such senior lien on the related Mortgaged Property
      used
      to calculate the Combined Loan-to-Value Ratio for the Mortgage Loan is based
      on
      the maximum amount of negative amortization possible under such senior
      loan.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    (bbb)  With
      respect to a Mortgage Loan which is a second lien, as of the date hereof, the
      Seller has not received a notice of default of a senior lien on the related
      Mortgaged Property which has not been cured.

     

    (ccc)  The
      Prepayment Penalties included in the transaction are enforceable and were
      originated in compliance with all federal, state and local laws.

     

    (ddd)  Information
      provided to the rating agencies, including the loan level detail, is true and
      correct according to the rating agency requirements.

     

    With
      respect to the representations and warranties set forth in this Section
      3.01 that are made to the best of the Seller’s knowledge or as to which the
      Seller has no knowledge, if it is discovered by the Depositor, the Seller,
      the
      Servicer or the Trustee as set forth in Section 2.04 of the Pooling and
      Servicing Agreement that the substance of such representation and warranty
      is
      inaccurate and such inaccuracy materially and adversely affects the value of
      the
      related Mortgage Loan or the interest therein of the Purchaser or the
      Purchaser’s assignee, transferee or designee then, notwithstanding the Seller’s
      lack of knowledge with respect to the substance of such representation and
      warranty being inaccurate at the time the representation or warranty was made,
      such inaccuracy shall be deemed a breach of the applicable representation or
      warranty.

     

    Upon
      discovery by the Depositor, the Seller, the Servicer, the Purchaser or any
      assignee, transferee or designee of the Purchaser of a breach of any of the
      representations and warranties contained in this Article III or Section 2.04
      of
      the Pooling and Servicing Agreement that materially and adversely affects the
      value of any Mortgage Loan or the interest therein of the Purchaser or the
      Purchaser’s assignee, transferee or designee, the party discovering the breach
      shall give prompt written notice to the others. It is understood by the parties
      hereto that a breach of the representations and warranties made in this Section
      3.01(f), (cc), (mm), (tt), (yy) and (ccc) will be deemed to materially and
      adversely affect the value of the related Mortgage Loan or the interest therein
      of the Purchaser or the Purchaser’s assignee. Within 90 days of the earlier of
      its discovery or its receipt of notice of any such breach of a representation
      or
      warranty, the Seller shall promptly cure such breach in all material respects,
      or in the event such breach cannot be cured, the Seller shall repurchase the
      affected Mortgage Loan or cause the removal of such Mortgage Loan from the
      Trust
      Fund and substitute for it one or more Eligible Substitute Mortgage Loans,
      in
      either case, in accordance with Section 2.03 of the Pooling and Servicing
      Agreement.

     

    Upon
      discovery or receipt of notice of any materially defective document in, or
      that
      a document is missing from, a Mortgage File, the Seller shall have 120 days
      to
      cure such defect or 150 days following the Closing Date, in the case of missing
      Mortgages or Assignments (or within 90 days of the earlier of the Seller’s
      discovery or receipt of notification if such defect would cause the Mortgage
      Loan not to be a “qualified mortgage” for REMIC purposes), or in the event such
      defect cannot be cured, the Seller shall repurchase the affected Mortgage Loan
      or cause the removal of such Mortgage Loan from the Trust Fund and substitute
      for it one or more Eligible Substitute Mortgage Loans, in either case, within
      such time periods and in accordance with Section 2.03 of the Pooling and
      Servicing Agreement.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 3.01 shall survive delivery of the respective Mortgage Files to the
      Trustee on behalf of the Purchaser notwithstanding any restrictive or qualified
      endorsement or assignment.

     

    It
      is
      understood and agreed that the obligations of the Seller set forth in this
      Section 3.01 to cure, repurchase or substitute for a defective Mortgage Loan
      constitute the sole remedies of the Purchaser respecting a missing or defective
      document or a breach of the representations or warranties contained in this
      Section 3.01.

     

    Section
      3.02.  Seller
      Representations and Warranties.

     

    The
      Seller hereby represents and warrants to the Purchaser that as of the Closing
      Date or as of such date specifically provided herein:

     

    (i)  The
      Seller is duly organized, validly existing and in good standing as a limited
      liability company under the laws of the State of Delaware and has the power
      and
      authority to own its assets and to transact the business in which it is
      currently engaged. The Seller is duly qualified to do business and is in good
      standing in each jurisdiction in which the character of the business transacted
      by it or properties owned or leased by it requires such qualification and in
      which the failure to so qualify would have a material adverse effect on (a)
      its
      business, properties, assets or condition (financial or other), (b) the
      performance of its obligations under this Agreement, (c) the value or
      marketability of the Mortgage Loans, or (d) its ability to foreclose on the
      related Mortgaged Properties.

     

    (ii)  The
      Seller has the power and authority to make, execute, deliver and perform this
      Agreement and to consummate all of the transactions contemplated hereunder
      and
      has taken all necessary action to authorize the execution, delivery and
      performance of this Agreement. When executed and delivered, this Agreement
      will
      constitute the Seller’s legal, valid and binding obligations enforceable in
      accordance with its terms, except as enforcement of such terms may be limited
      by
      (1) bankruptcy, insolvency, reorganization, receivership, moratorium or similar
      laws affecting the enforcement of creditors’ rights generally and by the
      availability of equitable remedies, (2) general equity principals (regardless
      of
      whether such enforcement is considered in a proceeding in equity or at law)
      or
      (3) public policy considerations underlying the securities laws, to the extent
      that such policy considerations limit the enforceability of the provisions
      of
      this Agreement which purport to provide indemnification from securities laws
      liabilities.

     

    (iii)  The
      Seller holds all necessary licenses, certificates and permits from all
      governmental authorities necessary for conducting its business as it is
      presently conducted, except for such licenses, certificates and permits the
      absence of which, individually or in the aggregate, would not have a material
      adverse effect on the ability of the Seller to conduct its business as it is
      presently conducted. It is not required to obtain the consent of any other
      party
      or any consent, license, approval or authorization from, or registration or
      declaration with, any governmental authority, bureau or agency in connection
      with the execution, delivery, performance, validity or enforceability of this
      Agreement, except for such consents, licenses, approvals or authorizations,
      or
      registrations or declarations as shall have been obtained or filed, as the
      case
      may be, prior to the Closing Date.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    (iv)  The
      execution, delivery and performance of this Agreement by the Seller will not
      conflict with or result in a breach of, or constitute a default under, any
      provision of any existing law or regulation or any order or decree of any court
      applicable to the Seller or any of its properties or any provision of its
      Limited Liability Company Agreement, or constitute a material breach of, or
      result in the creation or imposition of any lien, charge or encumbrance upon
      any
      of its properties pursuant to any mortgage, indenture, contract or other
      agreement to which it is a party or by which it may be bound.

     

    (v)  No
      certificate of an officer, written statement or report delivered pursuant to
      the
      terms hereof by the Seller contains any untrue statement of a material fact
      or
      omits to state any material fact necessary to make the certificate, statement
      or
      report not misleading.

     

    (vi)  The
      transactions contemplated by this Agreement are in the ordinary course of the
      Seller’s business.

     

    (vii)  The
      Seller is not insolvent, nor will the Seller be made insolvent by the transfer
      of the Mortgage Loans, nor is the Seller aware of any pending
      insolvency.

     

    (viii)  The
      Seller is not in violation of, and the execution and delivery of this Agreement
      by it and its performance and compliance with the terms of this Agreement will
      not constitute a violation with respect to any order or decree of any court,
      or
      any order or regulation of any federal, state, municipal or governmental agency
      having jurisdiction, which violation would materially and adversely affect
      the
      Seller’s condition (financial or otherwise) or operations or any of the Seller’s
      properties, or materially and adversely affect the performance of any of its
      duties hereunder.

     

    (ix)  There
      are
      no actions or proceedings against, or investigations of, the Seller pending
      or,
      to its knowledge, threatened, before any court, administrative agency or other
      tribunal (i) that, if determined adversely, would prohibit the Seller from
      entering into this Agreement and the Pooling and Servicing Agreement, (ii)
      seeking to prevent the consummation of any of the transactions contemplated
      by
      this Agreement or (iii) that, if determined adversely, would prohibit or
      materially and adversely affect the Seller’s performance of any of its
      respective obligations under, or the validity or enforceability of, this
      Agreement and the Pooling and Servicing Agreement.

     

    (x)  The
      Seller acquired title to the Mortgage Loans in good faith, without notice of
      any
      adverse claims.

     

    (xi)  The
      transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
      by
      the Seller pursuant to this Agreement are not subject to the bulk transfer
      laws
      or any similar statutory provisions in effect in any applicable
      jurisdiction.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    (xii)  The
      Seller understands that (a) the Private Certificates have not been and will
      not
      be registered or qualified under the Securities Act of 1933, as amended (the
      “Securities
      Act”)
      or
      registered or qualified under any state securities law and are being transferred
      to the Seller in a transaction that is exempt from the registration requirements
      of the Securities Act, (b) the Purchaser is not required to so register or
      qualify the Private Certificates, (c) the Private Certificates may be not be
      resold or transferred other than in accordance with the Pooling and Servicing
      Agreement unless they are (1) registered pursuant to the Securities Act and
      registered and qualified pursuant to any state securities law, or (2) sold
      or
      transferred in transactions which are exempt from such registration and
      qualification, (d) the Pooling and Servicing Agreement contains restrictions
      regarding the transfer of the Private Certificates and (e) the Private
      Certificates will bear a legend to the foregoing effect.

     

    (xiii)  The
      Seller is acquiring the Private Certificates for its own account for investment
      only and not with a view to or for sale in connection with any distribution
      thereof in any manner that would violate the Securities Act or any applicable
      state securities laws and the Seller will sell or transfer the Private
      Certificates only in the manner contemplated by the Pooling and Servicing
      Agreement.

     

    (xiv)  The
      Seller (a) is a substantial, sophisticated institutional investor having such
      knowledge and experience in financial and business matters, and, in particular,
      in such matters related to securities similar to the Private Certificates,
      such
      that it is capable of evaluating the merits and risks of investment in the
      Private Certificates, (b) has sought such accounting, legal and tax advice
      as it
      has considered necessary to make an informed investment decision, (c) is able
      to
      bear the economic risks of such an investment and (d) is a qualified
      institutional buyer, as such term is defined in Rule 144A under the Securities
      Act.

     

    (xv)  The
      Seller confirms that (a) it has had the opportunity to ask questions of and
      receive answers from the Purchaser concerning the purchase of the Private
      Certificates and all matters relating thereto or any additional information
      deemed necessary by the Seller to its decision to purchase the Private
      Certificates and (b) it has undertaken its own independent analysis of the
      investment in the Private Certificates. The Seller will not use or disclose
      any
      information it receives in connection with its purchase of the Private
      Certificates other than in connection with a subsequent sale of the Private
      Certificates, except to the extent that any such information is publicly
      available without the Seller’s breach of its obligations specified in this
      sentence.

     

    (xvi)  The
      Seller has not and will not nor has it authorized or will it authorize any
      person to (a) offer, pledge, sell, dispose of or otherwise transfer any Private
      Certificate, any interest in any Private Certificate or any other similar
      security to any person in any manner, (b) solicit any offer to buy or to accept
      a pledge, disposition of other transfer of any Private Certificate, any interest
      in any Private Certificate or any other similar security from any person in
      any
      manner, (c) otherwise approach or negotiate with respect to any Private
      Certificate, any interest in any Private Certificate or any other similar
      security with any person in any manner, (d) make any general solicitation by
      means of general advertising or in any other manner or (e) take any other
      action, that (as to any of (a) through (d) above) would constitute a
      distribution of any Private Certificate under the Securities Act, that would
      render the disposition of any Private Certificate a violation of Section 5
      of
      the Securities Act or any state securities law, that would constitute a public
      offering of the Private Certificates under the Securities Act or that would
      require registration or qualification of the Private Certificates under the
      Securities Act or any state or foreign securities laws. The Seller will not
      sell
      or otherwise transfer any of the Private Certificates, except in compliance
      with
      the provisions of the Pooling and Servicing Agreement.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    (xvii)  The
      Seller was not formed solely to acquire the Private Certificates.

     

    (xviii)  The
      Seller will not sell or otherwise transfer any Private Certificates or interest
      therein except in compliance with the provisions of the Pooling and Servicing
      Agreement.

     

    (xix)  The
      Seller is not an employee benefit plan or other retirement arrangement subject
      to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or
      Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”),
      (collectively, an “ERISA Plan”), and is not acting on behalf of, as named
      fiduciary of, as trustee of, or investing the assets of an ERISA
      Plan.

     

    (xx)  The
      Seller is not transferring the Mortgage Loans to the Purchaser hereunder with
      any intent to hinder, delay or defraud any of its creditors.

     

    ARTICLE
      IV

     

    SELLER’S
      COVENANTS

     

    Section
      4.01.  Covenants
      of the Seller.

     

    The
      Seller hereby covenants that except for the transfer hereunder, the Seller
      will
      not sell, pledge, assign or transfer to any other Person, or grant, create,
      incur, assume or suffer to exist any lien on any Mortgage Loan, or any
interest
      therein; the Seller will notify the Trustee, as assignee of the Purchaser,
      of
      the existence of any lien on any Mortgage Loan immediately upon discovery
      thereof, and the Seller will defend the right, title and interest of the Trust,
      as assignee of the Purchaser, in, to and under the Mortgage
      Loans, against all claims of third parties claiming through or under the Seller;
      provided, however, that nothing in this Section 4.01 shall prevent or be deemed
      to prohibit the Seller from suffering to exist upon any of the Mortgage Loans
      any liens for municipal or other local taxes and other governmental charges
      if
      such taxes or governmental charges shall not at the time be due and payable
      or
      if the Seller shall currently be contesting the validity thereof in good faith
      by appropriate proceedings and shall have set aside on its books adequate
      reserves with respect thereto.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      V

     

    TERMINATION

    
       

      Section
        5.01. Termination.

    

     

    The
      respective obligations and responsibilities of the Seller and the Purchaser
      created hereby shall terminate upon the termination of the Trust as provided
      in
      Article X of the Pooling and Servicing Agreement.

     

    ARTICLE
      VI

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      6.01.  Amendment.

     

    This
      Agreement may be amended from time to time by the Seller and the Purchaser,
      by
      written agreement signed by the Seller and the Purchaser.

     

    Section
      6.02.  Governing
      Law.

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York and the obligations, rights and remedies of the parties
      hereunder shall be determined in accordance with such laws
      without
      regard to the conflicts of laws provisions thereof (other than Section 5-1401
      of
      the General Obligations Law).

     

    Section
      6.03.  Notices.

     

    All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given if personally delivered at or mailed by
      registered mail, postage prepaid, addressed as follows:

     

    if
      to the
      Seller:

     

    Credit-Based
      Asset Servicing and Securitization LLC

    335
      Madison Avenue

    19th
      Floor

    New
      York,
      New York 10017

    Attention:
      General Counsel

     

    or
      such
      other address as may hereafter be furnished to the Purchaser in writing by
      the
      Seller.

     

    if
      to the
      Purchaser:

    

    Asset
      Backed Funding Corporation.

    214
      North
      Tyron Street

    Charlotte,
      North Carolina 28255

    Attention:
      Chris Schiavone

     

    
      or
        such
        other address as may hereafter be furnished to the Seller in writing by the
        Purchaser.

    

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    Section
      6.04.  Severability
      of Provisions.

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be held invalid for any reason whatsoever, then such covenants,
      agreements, provisions or terms shall be deemed severable from
      the
      remaining covenants, agreements, provisions or terms of this Agreement and
      shall
      in no way affect the validity or enforceability of the other provisions of
      this
      Agreement.

     

    Section
      6.05.  Counterparts.

     

    This
      Agreement may be executed in one or more counterparts by the different parties
      hereto on separate counterparts, each of which, when so executed, shall be
      deemed to be an original and such counterparts, together, shall constitute
      one
      and the same agreement.
      Delivery
      of an executed counterpart of a signature page by facsimile or other electronic
      transmission shall be effective as delivery of a manually executed counterpart
      of this Agreement.

     

    Section
      6.06.  Further
      Agreements.

     

    The
      Purchaser and the Seller each agree to execute and deliver to the other such
      additional documents, instruments or agreements as may be necessary or
      reasonable and appropriate to effectuate the purposes of this Agreement or
      in
      connection with the issuance of any Series of Certificates representing
      interests in the Mortgage Loans.

     

    Without
      limiting the generality of the foregoing, as a further inducement for the
      Purchaser to purchase the Mortgage Loans from the Seller, the Seller will
      cooperate with the Purchaser in connection with the sale of any of the
      securities representing interests in the Mortgage Loans. In that connection,
      the
      Seller will provide to the Purchaser any and all information and appropriate
      verification of information, whether through letters of its auditors and counsel
      or otherwise, as the Purchaser shall reasonably request and will provide to
      the
      Purchaser such additional representations and warranties, covenants, opinions
      of
      counsel, letters from auditors, and certificates of public officials or officers
      of the Seller as are reasonably required in connection with such transactions
      and the offering of investment grade securities rated by the Rating
      Agencies.

     

    Section
      6.07.  Intention
      of the Parties.

     

    It
      is the
      intention of the parties that the Purchaser is purchasing, and the Seller is
      selling, the Mortgage Loans rather than the pledging of the Mortgage Loans
      by
      the Seller to secure a loan by the Purchaser to the Seller. Accordingly, the
      parties hereto each intend to treat the transaction for Federal income tax
      purposes and all other purposes as a sale by the Seller and a purchase by the
      Purchaser of the Mortgage Loans. The Purchaser will have the right to review
      the
      Mortgage Loans and the related Mortgage Files to determine the characteristics
      of the Mortgage Loans which will affect the Federal income tax consequences
      of
      owning the Mortgage Loans and the Seller will cooperate with all reasonable
      requests made by the Purchaser in the course of such review.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    Section
      6.08.  Successors
      and Assigns; Assignment of this Agreement.

     

    This
      Agreement shall bind and inure to the benefit of and be enforceable by the
      Seller, the Purchaser and the Trustee. The obligations of the Seller under
      this
      Agreement cannot be assigned or delegated to a third party without the consent
      of the Purchaser and which consent shall be at the Purchaser’s sole discretion,
      except that the Purchaser acknowledges and agrees that the
      Seller may assign its obligations hereunder to any Person into which the Seller
      is merged or any corporation resulting from any merger, conversion or
      consolidation to which the Seller is a party
      or
      any Person succeeding to the business of the Seller. The parties hereto
      acknowledge that the Purchaser is acquiring the Mortgage Loans for the purpose
      of contributing them to a trust that will
      issue a series of certificates representing undivided interests in such Mortgage
      Loans. As an inducement to the Purchaser to purchase the Mortgage Loans, the
      Seller acknowledges and consents to the assignment by the Purchaser to the
      Trustee of all of the Purchaser’s rights against the
      Seller pursuant to this Agreement insofar as such rights relate to Mortgage
      Loans transferred to the Trustee and to the enforcement or exercise of any
      right
      or remedy against the Seller pursuant to this Agreement by the Trustee. Such
      enforcement of a right or remedy by the Trustee shall have the same force and
      effect as if the right or remedy had been enforced or exercised by the Purchaser
      directly.

     

    Section
      6.09.  Survival.

     

    The
      representations and warranties set forth in Sections 3.01 and 3.02 hereof shall
      survive the purchase of the Mortgage Loans hereunder.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, the Seller and the Purchaser have caused their names to be
      signed to this Mortgage Loan Purchase Agreement by their respective officers
      thereunto duly authorized as of the day and year first above
      written.

     

    
      	 	 	 
	 	
              ASSET
                BACKED FUNDING CORPORATION,

              as Purchaser

            
	 
 	 
 	 
 
	 	By:  	/s/ Juanita
              L. Deane-Warner
	 	
              

              Name:
                Juanita L. Deane-Warner

            
	 	Title:
              Vice President

    

     

    
      
        	 	 	 
	 	
                CREDIT-BASED
                  ASSET
                  SERVICING AND SECURITIZATION LLC, 

                as Seller

              
	 
 	 
 	 
 
	 	By:  	/s/ David
                A.
                Chin
	 	
                

                Name:
                  David A. Chin

              
	 	Title:
                Vice President

      

      

        [Signature
          Page to MLPA]

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    STATE
      OF
      NEW YORK)

                                           
               ) ss.:

    COUNTY
      OF
      NEW YORK)

     

    On
      the
      31st day of May 2007 before me, a Notary Public in and for said State,
      personally appeared Juanita L. Deane-Warner, known to me to be a Vice President
      of Asset Backed Funding Corporation, the corporation that executed the within
      instrument, and also known to me to be the person who executed it on behalf
      of
      said corporation, and acknowledged to me that such corporation executed the
      within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 	 	 
	 	 	 	/s/
              Lisa
              McClain
	
            	 	 	
              
Notary
              Public
	
            	 	 	
            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    STATE
      OF
      NEW YORK)

                                                     
      ) ss.:

    COUNTY
      OF
      NEW YORK)

     

    On
      the
      31st day of May 2007 before me, a Notary Public in and for said State,
      personally appeared David A. Chin, known to me to be a Vice President of
      Credit-Based Asset Servicing and Securitization LLC, the company that executed
      the within instrument, and also known to me to be the person who executed it
      on
      behalf of said limited liability company, and acknowledged to me that such
      limited liability company executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      
        	 	 	 	 
	 	 	 	/s/
                Carmen S.
                Mercado
	
              	 	 	
                
Notary
                Public
	
              	 	 	
              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

    

    SCHEDULE
      I

     

    MORTGAGE
      LOAN SCHEDULE

     

    Attached
      as Exhibit D to the Pooling and Servicing Agreement

    

    
      
        
        

      

      
        Schedule
          II-1Unassociated Document

    
      

      

    

     

    LASALLE
      BANK
      NATIONAL ASSOCIATION

    as
      Trustee for the 

    C-BASS
      Mortgage Loan Asset-Backed Certificates, Series 2007-CB5

     

    and
      

     

    LITTON
      LOAN SERVICING LP,

     

    as
      Servicer

     

    and

     

    THE
      BANK
      OF NEW YORK,

     

    as
      Custodian

     

    CUSTODIAL
      AGREEMENT

    

    dated
      as
      of May 1, 2007

    

    
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF
      CONTENTS

    

      
        	 	 	
                Page

              
	 	 	 
	
                Section
                  1. Definitions

              	 	
                1

              
	
                Section
                  2. Delivery of Custodial Files

              	 	
                4

              
	
                Section
                  3. Custodian as Bailee

              	 	
                5

              
	
                Section
                  4. Acknowledgement of Receipt; Trust Receipts

              	 	
                6

              
	
                Section
                  5. Obligations of the Custodian

              	 	
                6

              
	
                Section
                  6. Initial and Final Certifications

              	 	
                6

              
	
                Section
                  7. Representations and Warranties of the Custodian

              	 	
                7

              
	
                Section
                  8. Future Defects

              	 	
                8

              
	
                Section
                  9. Release for Servicing

              	 	
                8

              
	
                Section
                  10. RESERVED

              	 	
                8

              
	
                Section
                  11. Release for Payment

              	 	
                8

              
	
                Section
                  12. Fees of Custodian

              	 	
                9

              
	
                Section
                  13. Removal of Custodian

              	 	
                9

              
	
                Section
                  14. Transfer of Custodial Files Upon Termination

              	 	
                9

              
	
                Section
                  15. Examination of Custodial Files

              	 	
                9

              
	
                Section
                  16. Insurance of Custodian

              	 	
                10

              
	
                Section
                  17. Counterparts

              	 	
                10

              
	
                Section
                  18. Periodic Statements

              	 	
                10

              
	
                Section
                  19. GOVERNING LAW

              	 	
                10

              
	
                Section
                  20. Copies of Mortgage Documents

              	 	
                10

              
	
                Section
                  21. No Adverse Interest of Custodian

              	 	
                10

              
	
                Section
                  22. Termination by Custodian

              	 	
                11

              
	
                Section
                  23. Term of Agreement

              	 	
                11

              
	
                Section
                  24. Notices

              	 	
                11

              
	
                Section
                  25. Successors and Assigns

              	 	
                11

              
	
                Section
                  26. Concerning the Custodian

              	 	
                11

              
	
                Section
                  27. Reliance of Custodian

              	 	
                12

              
	
                Section
                  28. Transmission of Custodial Files

              	 	
                12

              
	
                Section
                  29. Authorized Representatives

              	 	
                13

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

    

     

    
      
        	
                Section
                  30. Reproduction of Documents

              	 	
                13

              
	
                Section
                  31. Limitations on the Responsibilities of the Custodian

              	 	
                13

              
	
                Section
                  32. WAIVER OF JURY TRIAL

              	 	
                15

              
	
                Section
                  33. Regulation AB

              	 	
                15

              
	
                Section
                  34. Third-Party Beneficiary

              	 	
                17

              

      

    

    

      
        	
                EXHIBITS

              	 
	
                EXHIBIT
                  1

              	
                FORM
                  OF ACKNOWLEDGEMENT OF RECEIPT

              
	
                EXHIBIT
                  2A

              	
                FORM
                  OF TRUST RECEIPT AND INITIAL CERTIFICATION

              
	
                EXHIBIT
                  2B

              	
                FORM
                  OF TRUST RECEIPT AND FINAL CERTIFICATION

              
	
                EXHIBIT
                  3

              	
                FORM
                  OF REQUEST FOR RELEASE OF DOCUMENTS AND RECEIPT

              
	
                EXHIBIT
                  4

              	
                AUTHORIZED
                  REPRESENTATIVES OF SERVICER

              
	
                EXHIBIT
                  5

              	
                AUTHORIZED
                  REPRESENTATIVES OF TRUSTEE

              
	
                EXHIBIT
                  6

              	
                MORTGAGE
                  LOAN SCHEDULE

              
	
                EXHIBIT
                  7

              	
                FORM
                  OF ANNUAL CERTIFICATION

              

      

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    THIS
      CUSTODIAL AGREEMENT (the “Custodial
      Agreement”),
      dated
      as of May 1, 2007, by and among LaSalle Bank National Association, a national
      banking association having an address at 135 South LaSalle Street, Suite 1511,
      Chicago, Illinois 60603, Attention: Global Securities and Trust Services—C-BASS
      2007-CB5, not individually, but solely as trustee for C-BASS Mortgage Loan
      Asset-Backed Certificates, Series 2007-CB5 (the “Trustee”),
      Litton Loan Servicing LP, a Delaware limited partnership having an address
      at
      4828 Loop Central Drive, Houston, Texas 77081, as servicer (the “Servicer”),
      and
      The Bank of New York, a New York banking corporation having an address at 101
      Barclay Street, 4W, New York, New York 10286, as custodian (the “Custodian”).

     

    WITNESSETH:

     

    WHEREAS,
      Asset Backed Funding Corporation (the “Depositor”)
      has
      agreed to purchase certain one-to-four family, adjustable-rate and fixed-rate
      mortgage loans secured by first and second liens on residential real properties
      (together, the “Mortgage
      Loans”)
      from
      Credit-Based Asset Servicing and Securitization LLC (the “Seller”),
      pursuant to the terms and conditions of a Mortgage Loan Purchase Agreement,
      dated as of May 1, 2007 between the Depositor and the Seller (the “Purchase
      Agreement”);
      and

     

    WHEREAS,
      the Servicer is to service the Mortgage Loans pursuant to the terms and
      conditions of a Pooling and Servicing Agreement, of even date herewith among
      the
      Depositor, the Seller, the Servicer and the Trustee (the “Pooling
      and Servicing Agreement”),
      and
      the Trustee will retain record title to the Mortgage Loans; and 

     

    WHEREAS,
      the Custodian is a New York banking corporation and is otherwise authorized
      to
      act as Custodian pursuant to this Custodial Agreement; and 

     

    NOW
      THEREFORE, in consideration of the mutual undertakings herein expressed, the
      parties hereto hereby agree as follows:

     

    Section
      1.   Definitions. 

     

    Capitalized
      terms used but not defined herein shall have the meanings assigned to them
      in
      the Pooling and Servicing Agreement.

     

    Acknowledgment
      of Receipt:
      A trust
      receipt and acknowledgment as to each Mortgage Loan, which Acknowledgment of
      Receipt is delivered to the Trustee by the Custodian in the form annexed hereto
      as Exhibit
      1.

     

    Agreement:
      This
      Custodial Agreement and all amendments, attachments and supplements
      hereto.

     

    Assignment
      of Mortgage:
      An
      assignment of the Mortgage, notice of transfer or equivalent instrument in
      recordable form, sufficient under the laws of the jurisdiction wherein the
      related Mortgaged Property is located to reflect, when recorded, the sale of
      the
      Mortgage to the Trust, which assignment, notice of transfer or equivalent
      instrument may be in the form of one or more blanket assignments covering the
      Mortgage Loans secured by Mortgaged Properties located in the same jurisdiction,
      if permitted by law and acceptable for recording in the applicable recording
      office.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    Business
      Day:
      Any day
      other than a Saturday, Sunday or a day on which banking institutions in the
      State of New York, the State of Illinois and the State of Texas are authorized
      or obligated by law or executive order to be closed.

     

    Closing
      Date:
      May 31,
      2007.

     

    Commission.
      The
      United States Securities and Exchange Commission.

     

    Custodial
      File:
      As to
      each Mortgage Loan, any mortgage loan documents which are delivered to the
      Custodian or which at any time come into the possession of the Custodian as
      set
      forth in Section 2 of this Custodial Agreement.

     

    Custodian:
      The
      Bank of New York, or its successor in interest or assigns, or any successor
      to
      the Custodian under this Custodial Agreement as herein provided.

     

    Cut-off
      Date:
      May 1,
      2007.

     

    Delivery
      Date:
      The
      date which occurs five (5) Business Days prior to the Closing Date or such
      other
      date as mutually agreed upon by the Trustee, the Custodian and the
      Servicer.

     

    Eligible
      Substitute Mortgage Loans:
      As
      defined in the Pooling and Servicing Agreement.

     

    Fannie
      Mae:
      Formerly known as the Federal National Mortgage Association, or any successor
      organization.

     

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

     

    Mortgage:
      The
      mortgage, deed of trust or other instrument securing a Mortgage Note, which
      creates a first or second lien on Mortgaged Property securing the Mortgage
      Note.

     

    Mortgage
      Interest 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, as of the Cut-off Date, shall be the rate set forth
      in the related Mortgage Loan Schedule as the Mortgage Interest
      Rate.

     

    Mortgage
      Loan:
      Each
      mortgage loan sold, assigned or transferred pursuant to this Custodial Agreement
      and identified on the Mortgage Loan Schedule attached hereto as Exhibit
      6.

     

    Mortgage
      Loan Schedule:
      The
      schedule of Mortgage Loans identified in the Pooling and Servicing Agreement
      to
      be delivered to the Custodian on the Delivery Date and to be annexed hereto
      as
Exhibit
      6.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

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

     

    Mortgaged
      Property:
      With
      respect to each Mortgage Loan, the Mortgagor’s real property securing repayment
      of the debt evidenced by a Mortgage Note, consisting of a fee simple interest
      in
      a single or contiguous parcel of real property.

     

    Mortgagor:
      The
      obligor on a Mortgage Note, the owner of the Mortgaged Property and the grantor
      or mortgagor named in the related Mortgage and such grantor’s or mortgagor’s
      successors in title to the Mortgaged Property.

     

    Officer’s
      Certificate:
      A
      certificate signed by the Chairman of the Board or Vice Chairman of the Board,
      or the President, Senior Vice President, Vice President, Assistant Vice
      President, Treasurer, Assistant Treasurer, Secretary or Assistant Secretary
      of
      the Person delivering such certificate.

     

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

     

    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 (Jan. 7, 2005)) or by the staff of the Commission,
      or as may be provided by the Commission or its staff from time to
      time.

     

    Servicer:
      Litton
      Loan Servicing LP, or its successor in interest or assigns, or any successor
      to
      the Servicer under the Pooling and Servicing Agreement as therein
      provided.

     

    Servicing
      Criteria:
      The
“servicing criteria” set forth in Items 1122(d)(1)(ii), 1122(d)(4)(i) and
      1122(d)(4)(ii) of Regulation AB, as such may be amended from time to
      time.

     

    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 Custodian or a
      Subservicer. 

     

    Subcustodian:
      The
      Bank of New York Trust Company, N.A. having an address at 5730 Katella Avenue,
      Cypress, California 90630. 

     

    Subservicer:
      Any
      Person that services Mortgage Loans on behalf of the Custodian or any
      Subservicer and is responsible for the performance (whether directly or through
      Subservicers or Subcontractors) of a substantial portion of the material
      servicing functions required to be performed by the Custodian under this
      Agreement or any Reconstitution Agreement that are identified in Item 1122(d)
      of
      Regulation AB.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    Trust
      Receipt:
      Either
      an Acknowledgment of Receipt, Trust Receipt and Initial Certification or a
      Trust
      Receipt and Final Certification.

     

    Trust
      Receipt and Final Certification:
      A trust
      receipt and final certification as to each Mortgage Loan, which Trust Receipt
      and Final Certification is delivered to the Trustee by the Custodian in the
      form
      annexed hereto as Exhibit
      2B.

     

    Trust
      Receipt and Initial Certification:
      A trust
      receipt and initial certification as to each Mortgage Loan, which Trust Receipt
      and Initial Certification is delivered to the Trustee by the Custodian in the
      form annexed hereto as Exhibit
      2A.

     

    Trustee:
      LaSalle
      Bank National Association, as Trustee for the C-BASS Mortgage Loan Asset-Backed
      Certificates, Series 2007-CB5, or its successor in interest or
      assigns.

     

    Section
      2.   Delivery
      of Custodial Files.

     

    (a)  The
      Servicer will deliver and release to the Custodian or the Subcustodian on the
      Delivery Date the following original documents pertaining to each of the
      Mortgage Loans identified in the Mortgage Loan Schedule:

     

    (i)  the
      original Mortgage Note including any riders thereto, endorsed either (A) in
      blank or (B) in the following form: “Pay to the order of LaSalle Bank National
      Association as Trustee for the C-BASS Mortgage Loan Asset-Backed Certificates,
      Series 2007-CB5, without recourse”, or with respect to any lost Mortgage Note,
      an original lost note affidavit stating that the original mortgage note was
      lost, misplaced or destroyed, together with a copy of the related Mortgage
      Note; 

     

    (ii)  the
      original Mortgage including any riders thereto with evidence of recording
      thereon, and the original recorded power of attorney, if the Mortgage was
      executed pursuant to a power of attorney, with evidence of recording thereon
      or,
      if such Mortgage or power of attorney has been submitted for recording but
      has
      not been returned from the applicable public recording office, has been lost
      or
      is not otherwise available, a copy of such Mortgage or power of attorney, as
      the
      case may be, certified to be a true and complete copy of the original submitted
      for recording;

     

    (iii)  an
      original Assignment of Mortgage, in form and substance acceptable for recording.
      The Mortgage shall be assigned either (A) in blank or (B) to “LaSalle Bank
      National Association, as Trustee for the C-BASS
      Mortgage Loan Asset-Backed Certificates, Series 2007-CB5,
      without recourse”;

     

    (iv)  an
      original or a certified copy of any intervening assignment of Mortgage showing
      a
      complete chain of assignments;

     

    (v)  the
      original or a certified copy of the lender’s title insurance policy;
      and

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (vi)  the
      original or copies of each assumption, modification, written assurance or
      substitution agreement, if any.

     

    (b)  In
      the
      event that any Mortgage Note is endorsed in blank as of the Closing Date,
      promptly following the Closing Date, the Custodian or the Servicer shall
      complete such endorsements in the following form: “Pay to the order of LaSalle
      Bank National Association, as Trustee for the C-BASS Mortgage Loan Asset-Backed
      Certificates, Series 2007-CB5, without recourse.” 

     

    (c)  From
      time
      to time, the Servicer shall forward to the Custodian additional original
      documents, additional documents evidencing an assumption, modification,
      consolidation or extension of a Mortgage Loan approved by the Servicer, in
      accordance with the terms of the Pooling and Servicing Agreement. All such
      mortgage documents held by the Custodian or the Subcustodian as to each Mortgage
      Loan shall constitute the “Custodial File”.

     

    (d)  The
      Servicer shall promptly but in no event later than thirty (30) days after the
      Closing Date, submit for recording, in the appropriate public office for real
      property records, each assignment referred to in Section 2(a)(iii) and 2(a)(iv)
      above. In the event that any such assignment is lost or returned unrecorded
      because of a defect therein, the Servicer shall promptly prepare a substitute
      assignment to cure such defect and thereafter cause each such assignment to
      be
      duly executed and recorded. The Custodian shall maintain a copy of each such
      assignment in the Custodial File.

     

    (e)  At
      least
      twenty-four (24) hours prior to delivery of the Mortgage Loans, the Servicer
      will provide or cause to be provided to the Custodian, via electronic
      transmission, a list of all the Mortgage Loans and their related data fields
      including loan ID, Mortgagor name, mortgaged property address, mortgage rate,
      maturity date, and original principal balance of each such Mortgage Loan. This
      data shall be delivered to the Custodian in an acceptable format that can be
      easily uploaded to the Custodian’s system. A hard copy of the Mortgage Loan
      Schedule will be delivered to the Custodian at the time of delivery to the
      Custodian of such documents related to the Mortgage Loans identified in such
      Mortgage Loan Schedule. 

     

    (f)  Not
      later
      than ten (10) Business Days after the receipt by the Custodian thereof, the
      Custodian shall review the related Mortgage File for each Eligible Substitute
      Mortgage Loan and all documents related thereto, as specified in Sections 2.01
      and 2.02 of the Pooling and Servicing Agreement, and shall deliver to the
      Servicer and the Trustee a certification, substantially in the form of Exhibit
      F-2 to the Pooling and Servicing Agreement, with respect to such Eligible
      Substitute Mortgage Loan, with any applicable exceptions noted thereon. Within
      one (1) year of the date of substitution, the Custodian shall deliver to the
      Servicer and the Trustee a certification, in the form of Exhibit F-2 to the
      Pooling and Servicing Agreement, with respect to each Eligible Substitute
      Mortgage Loan, with any applicable exceptions noted thereon. 

     

    Section
      3.   Custodian
      as Bailee.

     

    The
      Custodian hereby acknowledges that it is, and agrees to act as agent and bailee
      for the Trustee and is holding each Custodial File delivered to it on behalf
      of
      the Trustee.

     

    
      
        
        

      

      
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    Section
      4.   Acknowledgement
      of Receipt; Trust Receipts.

     

    (a)  No
      later
      than 11:00 a.m. New York Time on the Closing Date, the Custodian shall deliver
      to the Trustee an Acknowledgment of Receipt certifying, subject to any
      exceptions noted thereon, as to each Mortgage Loan on the Mortgage Loan
      Schedule, (i) receipt of the original Mortgage Note (with any exceptions noted)
      and (ii) the Mortgage Note has been reviewed by the Custodian and appears
      regular on its face and relates to such Mortgage Loan.

     

    (b)  Upon
      the
      written directions of the Trustee, and upon the prior tender by the Trustee
      of
      an applicable trust receipt or trust receipts (including any related Trust
      Receipt and Final Certification that has been issued), the Custodian shall
      deliver all or any portion of the related Custodial Files held by it pursuant
      to
      such Trust Receipt to the Trustee, or to such other party designated by the
      Trustee in such written direction, and to the place indicated in any such
      written direction from the Trustee. If such delivery is for less than all of
      the
      Custodial Files held by the Custodian with respect to such Trust Receipt (and
      a
      Trust Receipt and Final Certification has been issued), the Custodian shall
      deliver to the Trustee a new Trust Receipt and Final Certification with respect
      to the related Custodial Files retained by the Custodian. Each Trust Receipt
      (including any Trust Receipt and Final Certification) surrendered shall be
      canceled by the Custodian.

     

    Section
      5.   Obligations
      of the Custodian.

     

    With
      respect to the Mortgage Note, the Mortgage and the Assignment of Mortgage and
      other documents constituting each Custodial File which are delivered to the
      Custodian or which come into the possession of the Custodian, the Custodian
      is
      the custodian for the Trustee exclusively. The Custodian shall hold all mortgage
      documents received by it constituting the Custodial File for the exclusive
      use
      and benefit of the Trustee, and shall make disposition thereof only in
      accordance with this Custodial Agreement and the instructions furnished by
      the
      Trustee. The Custodian shall segregate and maintain continuous custody of all
      mortgage documents constituting the Custodial File in secure and fire-resistant
      facilities in accordance with customary standards for such custody. The
      Custodian shall not be responsible to verify (i) the validity, legality,
      enforceability, sufficiency, due authorization or genuineness of any document
      in
      the Custodial File or of any Mortgage Loans or (ii) the collectability,
      insurability, effectiveness including the authority or capacity of any Person
      to
      execute or issue any document in the Custodial File, or suitability of any
      Mortgage Loan unless specified otherwise in this Custodial Agreement. The
      Custodian shall promptly report to the Trustee any failure on its part to hold
      the Custodial Files and maintain its accounts, records and computer systems
      as
      herein provided and promptly take appropriate action to remedy such
      failure.

     

    Section
      6.   Initial
      and Final Certifications.

     

    (a)  Within
      sixty (60) days after the Closing Date, the Custodian shall ascertain that
      all
      documents specified in Sections 2(a)(i)-(vi) of this Custodial Agreement are
      in
      its possession, and shall deliver to the Trustee a Trust Receipt and Initial
      Certification certifying, subject to any exceptions noted thereon 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 such
      certification as not covered by such certification): (i) all documents required
      to be delivered to it pursuant to Sections 2(a)(i)-(vi) of this Custodial
      Agreement are in its possession; (ii) such documents have been reviewed by
      it;
      and have not been mutilated, damaged or torn 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 relating to the Mortgage Loan
      identifying number, the city, state, and zip code of the Mortgaged Property,
      the
      type of Residential Dwelling constituting the Mortgaged Property or a
      designation that the Mortgaged Property is a multi-family property, the original
      months to maturity, the Mortgage Interest Rate of the Mortgage Loan as of the
      Cut-off Date, and whether the Mortgage Loan has a prepayment penalty accurately
      reflects information set forth in the Mortgage File; (iv) all Assignments of
      Mortgage or intervening assignments of mortgage, as applicable, have been
      submitted for recording; and (v) each Mortgage Note has been endorsed as
      provided in Section 2(a)(i) of this Custodial Agreement and each Mortgage has
      been assigned in accordance with Section 2(a)(iii) of this Custodial
      Agreement.

     

    
      
        
        

      

      
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    (b)  Prior
      to
      the first anniversary date of this Custodial Agreement the Custodian shall
      deliver to the Depositor, the Trustee and the Servicer a Trust Receipt and
      Final
      Certification in the form annexed hereto as Exhibit
      2B
      evidencing the completeness of the Mortgage Files, with any applicable
      exceptions noted thereon.

     

    Section
      7.   Representations
      and Warranties of the Custodian. 

     

    The
      Custodian hereby represents and warrants to, and covenants that, as of the
      date
      hereof:

     

    (a)  Each
      of
      the Custodian and the Subcustodian is duly organized, validly existing and
      in
      good standing under the laws of its jurisdiction of incorporation and satisfies
      the requirements for acting as a Fannie Mae/Freddie Mac custodian, and has
      full
      corporate power and authority to own its properties and conduct its business
      as
      currently conducted.

     

    (b)  The
      Custodian has all requisite corporate power and authority to enter into and
      perform its obligations under this Custodial Agreement and to consummate the
      transactions contemplated hereby. The execution and delivery by the Custodian
      of
      this Custodial Agreement and the consummation by the Custodian of the
      transactions contemplated hereby have been duly and validly authorized by all
      necessary corporate action on the part of the Custodian. This Custodial
      Agreement has been duly and validly executed and delivered by the Custodian
      and
      constitutes a legal, valid and binding obligation of the Custodian, enforceable
      against the Custodian, in accordance with its terms, subject to bankruptcy,
      reorganization, insolvency, moratorium and similar laws of general applicability
      relating to or affecting creditors rights and to general principles of
      equity.

     

    (c)  Neither
      the execution and delivery by the Custodian of this Custodial Agreement, nor
      the
      consummation by the Custodian of any of the transactions contemplated hereby,
      nor the fulfillment by the Custodian of the terms hereof, will conflict with,
      or
      violate, result in a material breach of or constitute a material default (with
      or without notice or lapse of time, or both) under (i) any term or provision
      of
      the Certificate of Incorporation or By-laws of the Custodian or (ii) any term
      or
      provision of any indenture or other material agreement or instrument, to which
      the Custodian is a party or by which the Custodian is bound. The execution,
      delivery and performance of this Custodial Agreement by the Custodian or the
      consummation by the Custodian of the transactions contemplated hereby will
      not
      require the authorization, consent or approval of any governmental authority
      or
      agency having jurisdiction over and regulating the activities of the
      Custodian.

     

    
      
        
        

      

      
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    (d)  The
      Custodian shall perform its obligations under this Custodial Agreement in
      accordance with the standards incorporated by Fannie Mae or Freddie Mac; the
      Custodian shall at all times maintain accurate and complete records in
      connection with the performance of its obligations under this Custodial
      Agreement.

     

    (e)  The
      Custodian does not use any Subservicers or Subcontractors.

     

    Section
      8.   Future
      Defects.

     

    During
      the term of this Custodial Agreement, if the Custodian discovers any defect
      with
      respect to the Custodial File, the Custodian shall give written specification
      of
      such defect to the Servicer and the Trustee.

     

    Section
      9.   Release
      for Servicing.

     

    From
      time
      to time and as appropriate for the foreclosure or servicing of any of the
      Mortgage Loans, the Custodian is hereby authorized, upon written receipt from
      the Servicer of a request for release of documents and receipt in the form
      annexed hereto as Exhibit
      3,
      to
      release to the Servicer the related Custodial File or the documents set forth
      in
      such request and receipt to the Servicer. All documents so released to the
      Servicer shall be held by the Servicer in trust for the benefit of the Trustee
      in accordance with the terms of the Pooling and Servicing Agreement. The
      Servicer shall return to the Custodian the Custodial File or other such
      documents when the Servicer’s need therefor in connection with such foreclosure
      or servicing no longer exists, unless the Mortgage Loan shall be liquidated
      in
      which case, upon receipt of an additional request for release of documents
      and
      receipt certifying such liquidation from the Servicer to the Custodian in the
      form annexed hereto as Exhibit
      3,
      the
      Servicer’s request and receipt submitted pursuant to the first sentence of this
      Section 9 shall be released by the Custodian to the Servicer. The Servicer
      shall
      indemnify the Trust Fund and the Trustee and each of their officers, directors
      and agents for any and all liabilities, obligations, losses, compensatory
      damages, payments, costs or expenses of any kind whatsoever that may be imposed
      on, incurred by or asserted against the Trust Fund or the Trustee as a result
      of
      the release of any Mortgage Loans or Custodial Files to the Servicer or the
      retention of the Mortgage Loans and Custodial Files by the Servicer or any
      of
      its Affiliates; provided, however, the Servicer shall not be liable to any
      of
      the foregoing Persons for any amount and any portion of any such amount
      resulting from the willful misfeasance, bad faith or negligence of such Person.
      The provisions of this Section 9 shall survive the termination of this Custodial
      Agreement and the termination or resignation of the Trustee.

     

    Section
      10.   RESERVED.

     

    Section
      11.   Release
      for Payment.

     

    Upon
      receipt by the Custodian of the Servicer’s request for release of documents and
      receipt in the form annexed hereto as Exhibit
      3
      (which
      certification shall include a statement to the effect that all amounts received
      in connection with such payment or repurchase have been credited to the
      Custodial Account as provided in the Pooling and Servicing Agreement), the
      Custodian shall promptly release the related Custodial File to the
      Servicer.

     

    
      
        
        

      

      
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    Section
      12.   Fees
      of Custodian.

     

    The
      Custodian shall charge such fees for its services under this Custodial Agreement
      as are set forth in a separate agreement between the Custodian and the Servicer,
      the payment of which fees, together with the Custodian’s expenses in connection
      herewith, shall be solely the obligation of the Servicer.

     

    Section
      13.   Removal
      of Custodian.

     

    The
      Trustee, with or without cause (at the direction of the Servicer), may upon
      at
      least sixty (60) days’ notice remove and discharge the Custodian from the
      performance of its duties under this Custodial Agreement by written notice
      from
      the Trustee to the Custodian, with a copy to the Servicer. Having given notice
      of such removal, the Servicer, with the consent of the Trustee, promptly shall
      appoint a successor Custodian (which may be the Trustee or an affiliate of
      the
      Trustee) to act on behalf of the Trustee by written instrument, one original
      counterpart of which instrument shall be delivered to the Trustee, with a copy
      to the Servicer and an original to the successor Custodian. In the event of
      any
      such removal, the Custodian shall promptly transfer to the successor Custodian,
      as directed, all Custodial Files being administered under this Custodial
      Agreement. In the event of any such appointments the Servicer shall be
      responsible for the fees and expenses of the existing and successor Custodian.
      If the Trustee (at the direction of the Servicer) removes the Custodian without
      cause, the Servicer shall be responsible for payment of all expenses incurred
      in
      the transmission of the Custodial Files to the successor Custodian and for
      all
      applicable release fees of the Custodian. If the Servicer removes the Custodian,
      the Servicer shall be responsible for payment of all expenses incurred in the
      transmission of the Custodial Files to the successor Custodian and for all
      applicable release fees of the Custodian.

     

    Section
      14.   Transfer
      of Custodial Files Upon Termination.

     

    Upon
      written request of the Trustee, the Custodian shall release to such Persons
      as
      the Trustee shall designate the Custodial Files relating to such Mortgage Loans
      as the Trustee shall request.

     

    Section
      15.   Examination
      of Custodial Files.

     

    Upon
      reasonable prior notice to the Custodian but not less than two (2) Business
      Days
      notice, the Trustee and its agents, accountants, attorneys, auditors and
      designees will be permitted during normal business hours to examine the
      Custodial Files, documents, records and other papers in the possession of or
      under the control of the Custodian relating to any or all of the Mortgage Loans.
      The Custodial Files shall be maintained at the Subcustodian’s facility located
      at The Bank of New York Trust Company, N.A., 5730 Katella Avenue, Cypress,
      California  90630 or at such other location as the Custodian may designate
      in writing to the Trustee and the Servicer.

     

    
      
        
        

      

      
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    Section
      16.   Insurance
      of Custodian.

     

    At
      its
      own expense, the Custodian shall maintain at all times during the existence
      of
      this Custodial Agreement and keep in full force and effect such insurance in
      amounts, with standard coverage and subject to deductibles, all as is customary
      for insurance typically maintained by banks which act as custodian. The minimum
      coverage under any such bond and insurance policies shall be at least equal
      to
      the corresponding amounts required by Fannie Mae in the Fannie Mae Servicing
      Guide or by Freddie Mac in the Freddie Mac Seller/Servicer Guide. Upon request,
      the Trustee shall be entitled to receive evidence satisfactory to the Trustee
      that such insurance is in full force and effect.

     

    Section
      17.   Counterparts.

     

    For
      the
      purpose of facilitating the execution of this Custodial Agreement as herein
      provided and for other purposes, this Custodial Agreement may be executed
      simultaneously in any number of counterparts, each of which counterparts shall
      be deemed to be an original, and such counterparts shall constitute and be
      one
      and the same instrument.

     

    Section
      18.   Periodic
      Statements.

     

    Within
      ten (10) days of each anniversary of the date of this Custodial Agreement,
      or
      upon the request of the Trustee at any other time, the Custodian shall provide
      to the Trustee a list of all the Mortgage Loans for which the Custodian holds
      a
      Custodial File pursuant to this Custodial Agreement. Such list may be in the
      form of a copy of the Mortgage Loan Schedule with manual deletions to
      specifically denote any Mortgage Loans paid off, repurchased or sold since
      the
      date of this Custodial Agreement.

     

    Section
      19.   GOVERNING
      LAW.

     

    THIS
      AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES HEREUNDER SHALL
      BE
      DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     

    Section
      20.   Copies
      of Mortgage Documents.

     

    Upon
      the
      request of the Trustee and at the cost and expense of the Trust, the Custodian
      shall provide the Trustee with copies of the Mortgage Notes, Mortgages,
      Assignments of Mortgage and other documents relating to one or more of the
      Mortgage Loans.

     

    Section
      21.   No
      Adverse Interest of Custodian.

     

    By
      execution of this Custodial Agreement, the Custodian represents and warrants
      that it currently holds, and during the existence of this Custodial Agreement
      shall hold, no interest adverse to the Trustee, by way of security or otherwise,
      in any Mortgage Loan, and hereby waives and releases any such interest which
      it
      may have in any Mortgage Loan as of the date hereof.

     

    
      
        
        

      

      
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    Section
      22.   Termination
      by Custodian.

     

    The
      Custodian may terminate its obligations under this Custodial Agreement upon
      at
      least sixty (60) days’ prior written notice to the Servicer and the Trustee. In
      the event of such termination, the Servicer shall appoint a successor Custodian.
      The payment of such successor Custodian’s fees and expenses shall be solely the
      responsibility of the Servicer. Upon such appointment, the Custodian shall
      promptly transfer to the successor Custodian, as directed, all Custodial Files
      being administered under this Custodial Agreement.

     

    Section
      23.   Term
      of Agreement.

     

    Unless
      terminated pursuant to Section 13 or Section 22 hereof, this Custodial Agreement
      shall terminate upon the final payment or other liquidation (or advance with
      respect thereto) of the last Mortgage Loan or the disposition of all property
      acquired upon foreclosure or deed in lieu of foreclosure of any Mortgage Loan,
      and the final remittance of all funds due under the Pooling and Servicing
      Agreement. In such event all documents remaining in the Custodial Files shall
      be
      released in accordance with the written instructions of the
      Trustee.

     

    Section
      24.   Notices.

     

    All
      demands, notices and communications hereunder shall be in writing and shall
      be
      deemed to have been duly given when received by the recipient party at the
      addresses shown on the first page hereof, and in the case of the Trustee, to
      LaSalle Bank National Association, 135 South LaSalle Street, Suite 1511,
      Chicago, Illinois 60603, Attention: Global Securities and Trust Services -C-BASS
      2007-CB5, in the case of the Servicer, to Litton Loan Servicing LP, 4828 Loop
      Central Drive, Houston, Texas 77081, Attention: Janice McClure and in the case
      of the Custodian, The Bank of New York, 101 Barclay Street, 4W, New York, New
      York 10286, Attention: Paul Catania, or at such other addresses as may hereafter
      be furnished to the other parties by like notice. Any such demand, notice or
      communication hereunder shall be deemed to have been received on the date
      delivered to or received at the premises of the addressee (as evidenced, in
      the
      case of registered or certified mail, by the date noted on the return
      receipt).

     

    Section
      25.   Successors
      and Assigns.

     

    This
      Custodial Agreement shall inure to the benefit of the successors and assigns
      of
      the parties hereto. Any person into which the Custodian may be merged or
      converted or with which the Custodian may be consolidated, or any Person
      resulting from any merger, conversion or consolidation to which the Custodian
      shall be a party, or any Person succeeding to the business of the Custodian,
      shall be the successor of the Custodian hereunder, without the execution or
      filing of any paper or any further act on the part of any of the parties hereto,
      anything to the contrary herein notwithstanding. Any assignee shall forward
      a
      list of authorized representatives to each party to this Custodial Agreement
      pursuant to Section 29 of this Custodial Agreement.

     

    Section
      26.   Concerning
      the Custodian.

     

    Neither
      the Custodian nor any of its directors, affiliates, officers, agents, or
      employees, shall be liable for any action taken or omitted to be taken by it
      or
      them hereunder or in connection herewith in good faith and believed by it or
      them to be within the purview of this Custodial Agreement, except for its or
      their own gross negligence, bad faith or willful misconduct. In no event shall
      the Custodian or its directors, affiliates, officers, agents, or employees
      be
      held liable for any special, indirect or consequential damages resulting from
      any action taken or omitted to be taken by it or them hereunder or in connection
      herewith, even if advised of the possibility of such damages.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    The
      Servicer agrees to indemnify, from the Servicer’s own funds, and hold the
      Custodian and its directors, affiliates, officers, agents, and employees
      harmless against any and all liabilities, obligations, losses, damages,
      penalties, actions, judgments, suits, costs, expenses, or disbursements of
      any
      kind or nature whatsoever, including reasonable attorneys’ fees, that may be
      imposed on, incurred by or asserted against it or them in any way relating
      to or
      arising out of liabilities, obligations, judgments, losses, damages, penalties,
      actions, judgments, suits, costs, expenses or disbursements other than those
      which were imposed on, incurred by or asserted against the Custodian, because
      of
      the breach by the Custodian of its obligations hereunder, which breach was
      caused by negligence, bad faith, or willful misconduct on the part of the
      Custodian or any of its directors, affiliates, officers, agents, or employees.
      The indemnification set forth in this section shall survive any termination
      of
      this Custodial Agreement and the termination and removal of the
      Custodian.

     

    Notwithstanding
      anything to the contrary herein or in the Pooling and Servicing Agreement,
      it is
      hereby understood that the Trustee shall not be liable for the acts, omissions,
      duties, obligations or liabilities of the Custodian.

     

    Section
      27.   Reliance
      of Custodian.

     

    In
      the
      absence of negligence or bad faith on the part of the Custodian, the Custodian
      may conclusively rely, as to the truth of the statements and the correctness
      of
      the opinions expressed therein, upon any data communications, magnetic tape,
      request, instructions, certificate, opinion or other document furnished to
      the
      Custodian, reasonably believed by the Custodian to be genuine and to have been
      signed or presented by the proper party or parties and conforming to the
      requirements of this Custodial Agreement; but in the case of any loan document
      or other request, instruction, document or certificate which by any provision
      hereof is specifically required to be furnished to the Custodian, the Custodian
      shall be under a duty to examine the same in accordance with the requirements
      of
      this Custodial Agreement.

     

    Section
      28.   Transmission
      of Custodial Files.

     

    Written
      instructions as to the method of shipment and shipper(s) the Custodian is
      directed to utilize in connection with transmission of mortgage files and loan
      documents in the performance of the Custodian’s duties hereunder shall be
      delivered by the Servicer to the Custodian prior to any shipment of any mortgage
      files and loan documents hereunder. The Servicer will arrange for the provision
      of such services at its sole cost and expense (or, at the Custodian’s option,
      reimburse the Custodian for all costs and expenses incurred by the Custodian
      consistent with such instructions) and will maintain such insurance against
      loss
      or damage to mortgage files and loan documents as the Servicer deems
      appropriate. 

     

    
      
        
        

      

      
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    Section
      29.   Authorized
      Representatives.

     

    Each
      individual designated as an authorized representative of the Servicer and the
      Trustee, respectively (an “Authorized Representative”), is authorized to give
      and receive notices, requests and instructions and to deliver certificates
      and
      documents in connection with this Custodial Agreement on behalf of the Servicer
      or the Trustee, as the case may be, and the specimen signature for each such
      Authorized Representative of the Servicer and each such Authorized
      Representative of the Trustee initially authorized hereunder, is set forth
      on
Exhibits
      4
      and
5
      hereof,
      respectively. From time to time, the Servicer and the Trustee may, by delivering
      to each other and to the Custodian a revised exhibit, change the information
      previously given pursuant to this Section 29, but each of the parties hereto
      shall be entitled to rely conclusively on the then current exhibit until receipt
      of a superseding exhibit.

     

    Section
      30.   Reproduction
      of Documents.

     

    This
      Custodial Agreement and all documents relating thereto except with respect
      to
      the Custodial File, including, without limitation, (a) consents, waivers and
      modifications which may hereafter be executed, and (b) certificates and other
      information previously or hereafter furnished, may be reproduced by any
      photographic, photostatic, microfilm, microcard, miniature photographic or
      other
      similar process. The parties agree that any such reproduction shall be
      admissible in evidence as the original itself in any judicial or administrative
      proceeding, whether or not the original is in existence and whether or not
      such
      reproduction was made by a party in the regular course of business, and that
      any
      enlargement, facsimile or further reproduction of such reproduction shall
      likewise be admissible in evidence.

     

    Section
      31.   Limitations
      on the Responsibilities of the Custodian.

     

    (a)  The
      Custodian shall not be liable for any action or omission to act hereunder except
      for its own gross negligence, bad faith or willful misconduct. The obligations
      of the Custodian shall be determined solely by the express provisions of this
      Custodial Agreement. No representation, warranty, covenant, agreement,
      obligation or duty of the Custodian shall be implied with respect to this
      Custodial Agreement or the Custodian’s services.

     

    (b)  The
      Custodian shall not be responsible for preparing or filing any reports or
      returns relating to federal, state or local income taxes with respect to this
      Custodial Agreement other than for the Custodian’s compensation or for
      reimbursement of expenses hereunder.

     

    (c)  The
      Custodian shall not be responsible or liable for, and makes no representation
      or
      warranty with respect to, the validity, recordation, adequacy or perfection
      of
      any lien upon or security interest in any Custodial File.

     

    (d)  Any
      other
      provision of this Custodial Agreement to the contrary notwithstanding, the
      Custodian shall have no notice of and shall not be bound by any of the terms
      and
      conditions of any other document or agreement executed or delivered in
      connection with, or intended to control any part of, the transactions
      anticipated by or referred to in this Custodial Agreement unless the Custodian
      is a signatory party to that document or agreement. Notwithstanding the
      foregoing sentence, the Custodian shall be deemed to have notice of the terms
      and conditions (including without limitation definitions not otherwise set
      forth
      in full in this Custodial Agreement) of other documents and agreements executed
      or delivered in connection with, or intended to control any part of, the
      transactions anticipated by or referred to in this Custodial Agreement to the
      extent such terms and provisions are referenced or incorporated by reference
      into this Custodial Agreement, only as long as the Custodian shall have been
      provided a copy of any such document or agreement.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    (e)  The
      duties and obligations of the Custodian shall only be as much as are expressly
      set forth in this Custodial Agreement or as set forth in a written amendment
      to
      this Custodial Agreement executed by the parties hereto or their successors
      and
      assigns. In the event that any provision of this Custodial Agreement implies
      or
      requires that action or forbearance from action be taken by a party but is
      silent as to which party has the duty to act or refrain from acting, the parties
      hereto agree that the Custodian shall not be the party required to take the
      action or refrain from acting. In no event shall the Custodian have any
      responsibility to ascertain or take action except as expressly provided
      herein.

     

    (f)  Nothing
      in this Custodial Agreement shall be deemed to impose on the Custodian any
      duty
      to qualify to do business in any jurisdiction other than (i) any jurisdiction
      where any Custodial File is or may be held by the Custodian from time to time
      hereunder, and (ii) any jurisdiction where its ownership of property or conduct
      of business requires such qualification and where failure to qualify could
      have
      a material adverse effect on the Custodian or its property or business or on
      the
      ability of the Custodian to perform its duties hereunder.

     

    (g)  Custodian
      may consult with counsel selected by the Custodian and the advice or the opinion
      of such counsel shall be full and complete authorization and protection in
      respect of any action reasonably taken, omitted or suffered by the Custodian
      in
      good faith and in accordance herewith.

     

    (h)  No
      provision of this Custodial Agreement shall require the Custodian to expend
      or
      risk its own funds or otherwise incur any financial liability in the performance
      of its duties hereunder or in the exercise of any of its rights and powers
      (other than with respect to any expense incurred by the Custodian in accordance
      with its regular duties as custodian hereunder), if, in its sole judgment,
      it
      believes that repayment of such funds or adequate indemnity against such risk
      or
      liability is not assured to it.

     

    (i)  The
      Custodian shall have no duty to ascertain whether or not any amount or payment
      required to be received by the Trustee, the Servicer or any third person has
      been received by the Trustee, the Servicer or any third person.

     

    (j)  The
      Custodian may perform its duties hereunder by or through agents, attorneys,
      subcustodians or independent contractors and shall have no liability for the
      acts or omissions of such agents, attorneys, subcustodians or independent
      contractors appointed by the Custodian with due care; provided, however, that
      such appointment of a subcustodian shall not limit the liability of the
      Custodian with respect to its obligations under this Custodial Agreement. The
      Trustee and the Servicer hereby consent to the appointment of the Subcustodian
      to act as subcustodian hereunder.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

    Section
      32.   WAIVER
      OF JURY TRIAL.

     

    EACH
      OF
      THE TRUSTEE, THE SERVICER, AND THE CUSTODIAN WAIVES ANY RIGHT TO TRIAL BY JURY
      IN ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, BETWEEN OR
      AMONG ANY OF THE TRUSTEE, THE SERVICER OR THE CUSTODIAN ARISING OUT OF OR
      RELATING TO THE TRANSACTIONS CONTEMPLATED BY THIS CUSTODIAL AGREEMENT OR ANY
      OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
      HEREWITH. ANY OF THE TRUSTEE, THE SERVICER, OR THE CUSTODIAN MAY FILE AN
      ORIGINAL COUNTERPART OR A COPY OF THIS CUSTODIAL AGREEMENT WITH ANY COURT AS
      WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR
      RIGHT TO TRIAL BY JURY.

     

    Section
      33.   Regulation
      AB.

     

    Subsection
      33.01. Report
      on Assessment of Compliance and Attestation.

     

    Not
      later
      than March 15 of each calendar year, commencing in 2008, the Custodian
      shall:

     

    (i) deliver
      to the Servicer,
      the
      Trustee
      and the
      Depositor a report regarding the Custodian’s assessment of compliance with the
      applicable Servicing Criteria (as more fully discussed below), during the
      immediately preceding calendar year, as required under Rules 13a-18 and 15d-18
      of the Exchange Act and Item 1122 of Regulation AB. Such report shall be
      addressed to the Servicer, the Trustee and the Depositor and signed by an
      authorized officer of the Custodian, and shall address each of the applicable
      Servicing Criteria; 

     

    (ii) deliver
      to the Servicer, the Trustee and the Depositor a report of a registered public
      accounting firm reasonably acceptable to the Servicer, the Trustee and the
      Depositor that attests to, and reports on, the assessment of compliance made
      by
      the Custodian and delivered pursuant to the preceding paragraph. Such
      attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of
      Regulation S-X under the Securities Act and the Exchange Act; and

     

    (iii) not
      later
      than February 1 of the calendar year in which such certification is to be
      delivered, deliver to the Servicer, the Depositor and any other Person that
      will
      be responsible for signing the certification (a “Sarbanes Certification”)
      required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act (pursuant
      to
      Section 302 of the Sarbanes-Oxley Act of 2002) a certification substantially
      in
      the form attached hereto as Exhibit 7 (or as otherwise mutually agreed
      upon).

     

    The
      Custodian acknowledges that the parties identified in clause (a)(iii) above
      may
      rely on the certification provided by the Custodian pursuant to such clause
      in
      signing a Sarbanes Certification and filing such with the Commission. Neither
      the Servicer nor the Depositor will request delivery of a certification under
      clause (a)(iii) above unless a Depositor is required under the Exchange Act
      to
      file an annual report on Form 10-K with respect to an issuing entity whose
      asset
      pool includes the Mortgage Loans.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    Subsection
      33.02. Additional
      Information to Be Provided by the Custodian.

     

    For
      so
      long as the Certificates are outstanding, for the purpose of satisfying the
      Depositor’s reporting obligation under the Exchange Act with respect to any
      class of Certificates, the Custodian shall (a) notify the Depositor in writing
      of any material litigation or governmental proceedings pending against the
      Custodian that would be material to Certificateholders, and (b) provide to
      the
      Servicer a written description of such proceedings. Any notices and descriptions
      required under this Subsection 33.02 shall be given no later than five (5)
      Business Days prior to the Determination Date following the month in which
      the
      Custodian has knowledge of the occurrence of the relevant event. As of the
      date
      the Depositor or Servicer files each Report on Form 10-D or Form 10-K, as
      applicable, with respect to the Certificates, the Custodian will be deemed
      to
      represent that any information previously provided under this Subsection 33.02,
      if any, is materially correct and does not have any material omissions unless
      the Custodian has provided an update to such information. 

     

    Subsection
      33.03. Indemnification;
      Remedies.
      

     

    (a)
      The
      Custodian shall indemnify the Servicer, each affiliate of the Servicer, and
      each
      of the following parties: Credit-Based Asset Servicing and Securitization LLC,
      as the sponsor, the issuing entity, the Depositor, the Trustee, and each Person
      who controls any of such parties (within the meaning of Section 15 of the
      Securities Act and Section 20 of the Exchange Act); and the respective present
      and former directors, officers, employees and agents of each of the foregoing,
      and shall hold each of them harmless from and against any losses, damages,
      penalties, fines, forfeitures, legal fees and expenses and related costs,
      judgments, and any other costs, fees and expenses (other than punitive, special
      or consequential damages) that any of them may sustain arising out of or based
      upon any negligent failure by the Custodian to deliver any information, report,
      certification, accountants’ letter or other material when and as required under
      this Section 33.

     

    (b) In
      the
      case of any negligent failure of performance described in clause (a) of this
      Subsection, the Custodian shall promptly reimburse the Servicer, the Trustee
      the
      Depositor, as applicable, and each Person responsible for the preparation,
      execution or filing of any report required to be filed with the Commission
      with
      respect to the C-BASS Mortgage Loan Asset-Backed Certificates, Series 2007-CB5
      transaction, or for execution of a certification pursuant to Rule 13a-14(d)
      or
      Rule 15d-14(d) under the Exchange Act with respect to the C-BASS Mortgage Loan
      Asset-Backed Certificates, Series 2007-CB5 transaction, for all costs reasonably
      incurred by each such party in order to obtain the information, report,
      certification, accountants’ letter or other material not delivered as required
      by the Custodian.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

       

    

    Section
      34.   Third-Party
      Beneficiary

     

    The
      parties hereto agree that the Depositor shall be a third-party beneficiary
      to
      this Agreement.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

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

    
      	 	 	 
	 	LASALLE
              BANK NATIONAL ASSOCIATION, not in its individual capacity but solely
              as
              Trustee for the C-BASS Mortgage Loan Asset-Backed Certificates, Series
              2007-CB5
	 
 	 
 	 
 
	
            	By:  	/s/
              Susan L. Feld
	 	
              
Name:
              Susan L. Feld
	 	Title:
              Vice President

    

     

    
      	 	 	 
	 	LITTON LOAN SERVICING LP, as
              Servicer
	 
 	 
 	 
 
	
            	By:  	/s/
              Janice McClure 
	 	
              
Name: Janice
              McClure
	 	Title: Senior
              Vice President

    

     

    
      	 	 	 
	 	THE BANK OF NEW YORK, as Custodian
	 
 	 
 	 
 
	
            	By:  	/s/
              Paul
              Catania
	 	
              
Name: Paul
              Catania
	 	
              Title: Assistant
                Vice President

            

    

     

    
      
        
        

      

      
        18

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