Document:

omacs320130104x42.htm

EXHIBIT 4.2

 

 

 

[NAME OF SERVICER], as Servicer,

 

and

 

OPTEUM MORTGAGE ACCEPTANCE CORPORATION

as Depositor

 

___________________________

 

SERVICING AGREEMENT

 

Dated as of _______________

 

___________________________

 

________________Mortgage Loans

 

Opteum Mortgage Acceptance Corporation MBN Trust Series 20__-__

 

 

 

  

  

  

TABLE OF CONTENTS

ARTICLE I

 

Definitions

 

Section 1.01  Definitions.......................................

Section 1.02  Other Definitional Provisions............

Section 1.03  Interest Calculations.......

ARTICLE II

 

Representations and Warranties

 

Section 2.01  Representations and Warranties Regarding the Servicer

Section 2.02  Representations and Warranties of the Depositor

Section 2.03  Enforcement of Representations and Warranties

 

ARTICLE III

 

Administration and Servicing of Mortgage Loans

 

Section 3.01  The Servicer

Section 3.02  Collection of Certain Mortgage Loan Payments

Section 3.03  Withdrawals from the Collection Account

Section 3.04  Maintenance of Hazard Insurance; Property Protection Expenses

Section 3.05  Modification Agreements

Section 3.06  Trust Estate; Related Documents

Section 3.07  Realization upon Defaulted Mortgage Loans

Section 3.08  Depositor and Indenture Trustee to Cooperate

Section 3.09  Servicing Compensation; Payment of Certain Expenses by Servicer

Section 3.10  Annual Statement as to Compliance

Section 3.11  Annual Servicing Report

Section 3.12  Access to Certain Documentation and Information Regarding the Mortgage Loans

Section 3.13  Maintenance of Certain Servicing Insurance Policies

Section 3.14  Information Required by the Internal Revenue Service Generally and Reports of Foreclosures and Abandonments of Mortgaged Property

Section 3.15  Optional Repurchase of Defaulted Mortgage Loans

 

ARTICLE IV

 

Servicing Certificate

 

Section 4.01  Statements to Securityholders

 

ARTICLE V

 

Distribution and Payment Accounts

 

Section 5.01  Distribution Account

Section 5.02  Payment Account

 

ARTICLE VI

 

The Servicer

 

Section 6.01  Liability of the Servicer

Section 6.02  Merger or Consolidation of, or Assumption of the Obligations of, the Servicer..................

Section 6.03  Limitation on Liability of the Servicer and Others

Section 6.04  Servicer Not to Resign

Section 6.05  Delegation of Duties

Section 6.06  Servicer to Pay Indenture Trustee's and Owner Trustee's Fees and Expenses; Indemnification

 

ARTICLE VII

 

Default

 

Section 7.01  Servicing Default

Section 7.02  Indenture Trustee to Act; Appointment of Successor

Section 7.03  Notification to Securityholders

 

ARTICLE VIII

 

Miscellaneous Provisions

 

Section 8.01  Amendment

Section 8.02  Governing Law

Section 8.03  Notices

Section 8.04  Severability of Provisions

Section 8.05  Third-Party Beneficiaries

Section 8.06  Counterparts

Section 8.07  Effect of Headings and Table of Contents

Section 8.08  Termination upon Purchase by the Servicer or Liquidation of All Mortgage Loans

Section 8.09  Certain Matters Affecting the Indenture Trustee

Section 8.10  [Authority of the Administrator]

 

EXHIBIT A - MORTGAGE LOAN SCHEDULE

EXHIBIT B - POWER OF ATTORNEY

EXHIBIT C - CERTIFICATE PURSUANT TO SECTION  3.08

EXHIBIT D - FORM OF REQUEST FOR RELEASE

EXHIBIT E - FORM OF REQUEST FOR RELEASE

EXHIBIT F - FORM OF SECTION 404 NOTICE

EXHIBIT G - FORM OF CERTIFICATION FOR NRSROS AND DEPOSITOR

 

 

Schedule 1 - Mortgage Insurance Component Schedule

 

 

This Servicing Agreement, dated as of _______________, between [Name of

Servicer], as Servicer (the "Servicer") and Opteum Mortgage Acceptance Corporation, as Depositor (the "Depositor"),

 

W I T N E S S E T H T H A T:

 

WHEREAS, Opteum Mortgage Acceptance Corporation., will create Opteum Mortgage

Acceptance Corporation MBN Trust Series 20__-__, an owner trust (the "Issuing Entity")

under Delaware law, and will transfer the Mortgage Loans and all of its rights

under the Mortgage Loan Purchase Agreement to the Issuing Entity,;

 

WHEREAS, pursuant to the terms of a Trust Agreement dated as of

_______________ (the "Owner Trust Agreement") between the Depositor, as

depositor, and ______________________, as owner trustee (the "Owner Trustee"),

the Depositor will sell the Mortgage Collateral to Issuing Entity in exchange

for the cash proceeds of the Securities;

 

WHEREAS, pursuant to the terms of the Trust Agreement between the

Depositor and the Owner Trustee, the Issuing Entity will issue and transfer to

or at the direction of the Depositor, the Mortgage-Backed Certificates, Series

20__-__ (the "Certificates");

 

WHEREAS, pursuant to the terms of an Indenture dated as of

_______________ (the "Indenture") between the Issuing Entity and the Indenture

Trustee, the Issuing Entity will issue and transfer to or at the direction of

the Purchaser the Mortgage-Backed Notes, Series 20__-__ (the "Notes"),

consisting of the Notes and secured by the Mortgage Collateral;

 

WHEREAS, pursuant to the terms of the Mortgage Loan Purchase Agreement,

the Depositor will acquire the Initial Loans; and

 

WHEREAS, pursuant to the terms of this Servicing Agreement, the

Servicer will service the Mortgage Loans directly or through one or more

Subservicers;

 

NOW, THEREFORE, in consideration of the mutual covenants herein

contained, the parties hereto agree as follows:

 

  

  

  

ARTICLE I

 

Definitions

 

Section 1.01 DEFINITIONS. For all purposes of this Servicing Agreement,

except as otherwise expressly provided herein or unless the context otherwise

requires, capitalized terms not otherwise defined herein shall have the meanings

assigned to such terms in the Definitions contained in Appendix A to the

Indenture which is incorporated by reference herein. All other capitalized terms

used herein shall have the meanings specified herein.

 

Section 1.02 OTHER DEFINITIONAL PROVISIONS. (a) All terms defined in

this Servicing Agreement shall have the defined meanings when used in any

certificate or other document made or delivered pursuant hereto unless otherwise

defined therein.

 

(b) As used in this Servicing Agreement and in any certificate or other

document made or delivered pursuant hereto or thereto, accounting terms not

defined in this Servicing Agreement or in any such certificate or other

document, and accounting terms partly defined in this Servicing Agreement or in

any such certificate or other document, to the extent not defined, shall have

the respective meanings given to them under generally accepted accounting

principles. To the extent that the definitions of accounting terms in this

Servicing Agreement or in any such certificate or other document are

inconsistent with the meanings of such terms under generally accepted accounting

principles, the definitions contained in this Servicing Agreement or in any such

certificate or other document shall control.

 

(c) The words "hereof," "herein," "hereunder" and words of similar

import when used in this Servicing Agreement shall refer to this Servicing

Agreement as a whole and not to any particular provision of this Servicing

Agreement; Section and Exhibit references contained in this Servicing Agreement

are references to Sections and Exhibits in or to this Servicing Agreement unless

otherwise specified; and the term "including" shall mean "including without

limitation".

 

(d) The definitions contained in this Servicing Agreement are

applicable to the singular as well as the plural forms of such terms and to the

masculine as well as the feminine and neuter genders of such terms.

 

(e) Any agreement, instrument or statute defined or referred to herein

or in any instrument or certificate delivered in connection herewith means such

agreement, instrument or statute as from time to time amended, modified or

supplemented and includes (in the case of agreements or instruments) references

to all attachments thereto and instruments incorporated therein; references to a

Person are also to its permitted successors and assigns.

 

Section 1.03 INTEREST CALCULATIONS. All calculations of interest

hereunder that are made in respect of the Principal Balance of a Mortgage Loan

shall be made on a daily basis using a 365- day year. All calculations of

interest on the Securities shall be made on the basis of the actual number of

days in an Interest Period and a year assumed to consist of 360 days. The

calculation of the Servicing Fee shall be made on the basis of a 360-day year

consisting of twelve 30-day months. All dollar amounts calculated hereunder

shall be rounded to the nearest penny with one-half of one penny being rounded

down.

 

ARTICLE II

 

Representations and Warranties

 

Section 2.01 REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICER. The

Servicer represents and warrants to Depositor, the Issuing Entity and for the

benefit of the Indenture Trustee, as pledgee of the Mortgage Collateral, and the

Securityholders, as of the Cut-Off Date, [the date of the Servicing Agreement],

the Closing Date [and any Deposit Date], that:

 

(i) The Servicer is a corporation duly organized, validly

existing and in good standing under the laws of the State of [_______]

and has the corporate power to own its assets and to transact the

business in which it is currently engaged. The Servicer is duly

qualified to do business as a foreign corporation and is in good

standing in each jurisdiction in which the character of the business

transacted by it or properties owned or leased by it requires such

qualification and in which the failure to so qualify would have a

material adverse effect on the business, properties, assets, or

condition (financial or other) of the Servicer;

 

(ii) The Servicer has the power and authority to make,

execute, deliver and perform this Servicing Agreement and all of the

transactions contemplated under this Servicing Agreement, and has taken

all necessary corporate action to authorize the execution, delivery and

performance of this Servicing Agreement. When executed and delivered,

this Servicing Agreement will constitute the legal, valid and binding

obligation of the Servicer enforceable in accordance with its terms,

except as enforcement of such terms may be limited by bankruptcy,

insolvency or similar laws affecting the enforcement of creditors'

rights generally and by the availability of equitable remedies;

 

iii) The Servicer is not required to obtain the consent of

any other Person 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 Servicing Agreement,

except for such consent, license, approval or authorization, or

registration or declaration, as shall have been obtained or filed, as

the case may be;

 

(iv) The execution and delivery of this Servicing Agreement

and the performance of the transactions contemplated hereby by the

Servicer will not violate any provision of any existing law or

regulation or any order or decree of any court applicable to the

Servicer or any provision of the Certificate of Incorporation or Bylaws

of the Servicer, or constitute a material breach of any mortgage,

indenture, contract or other agreement to which the Servicer is a party

or by which the Servicer may be bound; and

 

(v) No litigation or administrative proceeding of or before

any court, tribunal or governmental body is currently pending, or to

the knowledge of the Servicer threatened, against the Servicer or any

of its properties or with respect to this Servicing Agreement or the

Notes or the Certificates which in the opinion of the Servicer has a

reasonable likelihood of resulting in a material adverse effect on the

transactions contemplated by this Servicing Agreement.

 

The foregoing representations and warranties shall survive any

termination of the Servicer hereunder.

 

Section 2.02 REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR. The

Depositor hereby represents and warrants to the Servicer for the benefit of the

Indenture Trustee, as pledgee of the Mortgage Collateral, and the

Securityholders, as of the Cut-Off Date, the Closing Date and any Deposit Date,

that:

 

(i) The Depositor is a corporation in good standing under the

laws of the State of Delaware;

 

(ii) The Depositor has full power, authority and legal right

to execute and deliver this Servicing Agreement and to perform its

obligations under this Servicing Agreement, and has taken all necessary

action to authorize the execution, delivery and performance by it of

this Servicing Agreement; and

 

(iii) The execution and delivery by the Depositor of this

Servicing Agreement and the performance by the Depositor of its

obligations under this Servicing Agreement will not violate any

provision of any law or regulation governing the Depositor or any

order, writ, judgment or decree of any court, arbitrator or

governmental authority or agency applicable to the Depositor or any of

its assets. Such execution, delivery, authentication and performance

will not require the authorization, consent or approval of, the giving

of notice to, the filing or registration with, or the taking of any

other action with respect to, any governmental authority or agency

regulating the activities of limited liability companies. Such

execution, delivery, authentication and performance will not conflict

with, or result in a breach or violation of, any mortgage, deed of

trust, lease or other agreement or instrument to which the Depositor is

bound.

 

Section 2.03 ENFORCEMENT OF REPRESENTATIONS AND WARRANTIES. The

Servicer, on behalf of and subject to the direction of the Indenture Trustee, as

pledgee of the Mortgage Collateral, or the Credit Enhancer, shall enforce the

representations and warranties of the Seller pursuant to the Mortgage Loan

Purchase Agreement. Upon the discovery by the Seller, the Servicer, the

Indenture Trustee, the Credit Enhancer, the Depositor or any Custodian of a

breach of any of the representations and warranties made in the Mortgage Loan

Purchase Agreement, in respect of any Mortgage Loan which materially and

adversely affects the interests of the Securityholders or the Credit Enhancer,

the party discovering such breach shall give prompt written notice to the other

parties (any Custodian being so obligated under a Custodial Agreement). The

Servicer shall promptly notify the Seller of such breach and request that,

pursuant to the terms of the Mortgage Loan Purchase Agreement, the Seller either

(i) cure such breach in all material respects within 45 days (with respect to a

breach of the representations and warranties contained in Section 3.1(a) of the

Mortgage Loan Purchase Agreement) or 90 days (with respect to a breach of the

representations and warranties contained in Section 3.1(b) of the Mortgage Loan

Purchase Agreement) from the date the Seller was notified of such breach or (ii)

purchase such Mortgage Loan from the Depositor at the price and in the manner

set forth in Section 3.1(b) of the Mortgage Loan Purchase Agreement; PROVIDED

that the Seller shall, subject to the conditions set forth in the Mortgage Loan

Purchase Agreement, have the option to substitute an Eligible Substitute

Mortgage Loan or Loans for such Mortgage Loan. In the event that the Seller

elects to substitute one or more Eligible Substitute Mortgage Loans pursuant to

Section 3.1(b) of the Mortgage Loan Purchase Agreement, the Seller shall deliver

to the Depositor with respect to such Eligible Substitute Mortgage Loans, the

original Mortgage Note, the Mortgage, and such other documents and agreements as

are required by the Mortgage Loan Purchase Agreement. No substitution will be

made in any calendar month after the Determination Date for such month. Payments

due with respect to Eligible Substitute Mortgage Loans in the month of

substitution shall not be transferred to the Depositor and will be retained by

the Servicer and remitted by the Servicer to the Seller on the next succeeding

Payment Date provided a payment has been received by the Depositor for such

month in respect of the Mortgage Loan to be removed. The Servicer shall amend or

cause to be amended the Mortgage Loan Schedule to reflect the removal of such

Mortgage Loan and the substitution of the Eligible Substitute Mortgage Loans and

the Servicer shall promptly deliver the amended Mortgage Loan Schedule to the

Owner Trustee and Indenture Trustee.

 

It is understood and agreed that the obligation of the Seller to cure

such breach or purchase or substitute for such Mortgage Loan as to which such a

breach has occurred and is continuing shall constitute the sole remedy

respecting such breach available to the Depositor and the Indenture Trustee, as

pledgee of the Mortgage Collateral, against the Seller. In connection with the

purchase of or substitution for any such Mortgage Loan by the Seller, the

Depositor shall assign to the Seller all of the right, title and interest in

respect of the Mortgage Loan Purchase Agreement applicable to such Mortgage

Loan. Upon receipt of the Repurchase Price, or upon completion of such

substitution, the applicable Custodian shall deliver the Mortgage Files to the

Servicer, together with all relevant endorsements and assignments.

 

  

  

  

ARTICLE III

 

Administration and Servicing of Mortgage Loans

 

Section 3.01 THE SERVICER. (a) The Servicer shall service and

administer the Mortgage Loans in the same manner as would prudent institutional

mortgage lenders servicing comparable mortgage loans for their own account in

the jurisdictions where the related Mortgaged Properties are located and in a

manner consistent with the terms of this Servicing Agreement and which shall be

normal and usual in its general mortgage servicing activities and shall have

full power and authority, acting alone or through a subservicer, to do any and

all things in connection with such servicing and administration which it may

deem necessary or desirable, it being understood, how ever, that the Servicer

shall at all times remain responsible to the Depositor, the Indenture Trustee,

as pledgee of the Mortgage Collateral, and the Securityholders for the

performance of its duties and obligations hereunder in accordance with the terms

hereof and the servicing standard set forth above. Without limiting the

generality of the foregoing, the Servicer shall continue, and is hereby

authorized and empowered by the Depositor and the Indenture Trustee, as pledgee

of the Mortgage Collateral, to execute and deliver, on behalf of itself, the

Depositor, the Securityholders and the Indenture Trustee or any of them, any and

all instruments of satisfaction or cancellation, or of partial or full release

or discharge and all other comparable instruments with respect to the Mortgage

Loans and with respect to the Mortgaged Properties. The Depositor, the Indenture

Trustee and the Custodian, as applicable, shall furnish the Servicer with any

powers of attorney and other documents necessary or appropriate to enable the

Servicer to carry out its servicing and administrative duties hereunder. On the

Closing Date, the Depositor shall deliver to the Servicer a power of attorney

substantially in the form of Exhibit B hereto.

 

If the Mortgage relating to a Mortgage Loan did not have a lien senior

on the related Mortgaged Property as of the Cut-Off Date, then the Servicer, in

such capacity, may not consent to the placing of a lien senior to that of the

Mortgage on the related Mortgaged Property. If the Mortgage relating to a

Mortgage Loan had a lien senior to the Mortgage Loan on the related Mort gaged

Property as of the Cut-Off Date, then the Servicer, in such capacity, may

consent to the refinancing of such senior lien; PROVIDED that (i) the resulting

Combined Loan-to-Value Ratio of such Mortgage Loan is no higher than the

Combined Loan-to-Value Ratio prior to such refinancing and (ii) the interest

rate for the loan evidencing the refinanced senior lien on the date of such

refinancing is no higher than the interest rate on the loan evidencing the

existing senior lien immediately prior to the date of such refinancing.

 

The relationship of the Servicer (and of any successor to the Servicer

as servicer under this Servicing Agreement) to the Depositor under this

Servicing Agreement is intended by the parties to be that of an independent

contractor and not that of a joint venturer, partner or agent.

 

(b) The Servicer has entered into Initial Subservicing Agreements with

the Initial Subservicers for the servicing and administration of the Mortgage

Loans and may enter into additional Sub servicing Agreements with Subservicers

for the servicing and administration of certain of the Mortgage Loans.

References in this Servicing Agreement to actions taken or to be taken by the

Servicer in servicing the Mortgage Loans include actions taken or to be taken by

a Subservicer on behalf of the Servicer and any amount received by such

Subservicer in respect of a Mortgage Loan shall be deemed to have been received

by the Servicer whether or not actually received by the Servicer. Each

Subservicing Agreement will be upon such terms and conditions as are not

inconsistent with this Servicing Agreement and as the Servicer and the

Subservicer have agreed. With the approval of the Servicer, a Subservicer may

delegate its servicing obligations to third-party servicers, but such

Subservicers will remain obligated under the related Subservicing Agreements.

The Servicer and the Subservicer may enter into amendments to the related

Subservicing Agreements; PROVIDED, HOWEVER, that any such amendments shall be

consistent with and not violate the provisions of this Servicing Agreement. The

Servicer shall be entitled to terminate any Subservicing Agreement in accordance

with the terms and conditions thereof and without any limitation by virtue of

this Servicing Agreement; PROVIDED, HOWEVER, that in the event of termination of

any Subservicing Agreement by the Servicer or the Subservicer, the Servicer

shall either act as servicer of the related Mortgage Loan or enter into a

Subservicing Agreement with a successor Subservicer which will be bound by the

terms of the related Subservicing Agreement. The Servicer shall be entitled to

enter into any agreement with a Subservicer for indemnification of the Servicer

and nothing contained in this Servicing Agreement shall be deemed to limit or

modify such indemnification.

 

In the event that the rights, duties and obligations of the Servicer

are terminated hereunder, any successor to the Servicer in its sole discretion

may, to the extent permitted by applicable law, terminate the existing

Subservicing Agreement with any Subservicer in accordance with the terms of the

applicable Subservicing Agreement or assume the terminated Servicer's rights and

obligations under such subservicing arrangements which termination or assumption

will not violate the terms of such arrangements.

 

As part of its servicing activities hereunder, the Servicer, for the

benefit of the Depositor, shall use reasonable efforts to enforce the

obligations of each Subservicer under the related Subservicing Agreement, to the

extent that the non-performance of any such obligation would have material and

adverse effect on a Mortgage Loan. Such enforcement, including, without

limitation, the legal prosecution of claims, termination of Subservicing

Agreements and the pursuit of other appropriate remedies, shall be in such form

and carried out to such an extent and at such time as the Servicer, in its good

faith business judgment, would require were it the owner of the related Mortgage

Loans. The Servicer shall pay the costs of such enforcement at its own expense,

and shall be reimbursed therefor only (i) from a general recovery resulting from

such enforcement to the extent, if any, that such recovery exceeds all amounts

due in respect of the related Mortgage Loan or (ii) from a specific recovery of

costs, expenses or attorneys fees against the party against whom such

enforcement is directed.

 

Section 3.02 COLLECTION OF CERTAIN MORTGAGE LOAN PAYMENTS. (a) The

Servicer shall make reasonable efforts to collect all payments called for under

the terms and provisions of the Mortgage Loans, and shall, to the extent such

procedures shall be consistent with this Servicing Agreement, follow such

collection procedures as shall be normal and usual in its general mortgage

servicing activities. Consistent with the foregoing, and without limiting the

generality of the foregoing, the Servicer may in its discretion (i) waive any

late payment charge, penalty interest or other fees which may be collected in

the ordinary course of servicing such Mortgage Loan and (ii) arrange with a

Mortgagor a schedule for the payment of principal and interest due and unpaid;

PROVIDED such arrangement is consistent with the Servicer's policies with

respect to home equity mortgage loans; PROVIDED, FURTHER, that notwithstanding

such arrangement such Mortgage Loans will be included in the information

regarding delinquent Mortgage Loans set forth in the Servicing Certificate. The

Servicer may also extend the Due Date for payment due on a Mortgage Loan,

PROVIDED, HOWEVER, that the Servicer shall first determine that any such waiver

or extension will not adversely affect the lien of the related Mortgage.

Consistent with the terms of this Servicing Agreement, the Servicer may also

waive, modify or vary any term of any Mortgage Loan or consent to the

postponement of strict compliance with any such term or in any manner grant

indulgence to any Mortgagor if in the Servicer's determination such waiver,

modification, postponement or indulgence is not materially adverse to the

interests of the Securityholders or the Credit Enhancer, PROVIDED, HOWEVER, that

the Servicer may not modify or permit any Subservicer to modify any Mortgage

Loan (including without limitation any modification that would change the

Mortgage Rate, forgive the payment of any principal or interest (unless in

connection with the liquidation of the related Mortgage Loan) or extend the

final maturity date of such Mortgage Loan) unless such Mortgage Loan is in

default or, in the judgment of the Servicer, such default is reasonably

foreseeable.

 

(b) The Servicer shall establish an account (the "Collection Account")

in which the Servicer shall deposit or cause to be deposited any amounts

representing payments on and any collections in respect of the Mortgage Loans

received by it subsequent to the Cut-off Date as to any Initial Loan or the

related Deposit Date as to any Additional Loan (other than in respect of the

payments referred to in the following paragraph) within __ Business Day[s]

following receipt thereof (or otherwise on or prior to the Closing Date),

including the following payments and collections received or made by it (without

duplication):

 

(i) all payments of principal of or interest on the Mortgage

Loans received by the Servicer from the respective Subservicer, net of

any portion of the interest thereof retained by the Subservicer as

Subservicing Fees;

 

(ii) the aggregate Repurchase Price of the Mortgage Loans

purchased by the Servicer pursuant to Section 3.15;

 

(iii) Net Liquidation Proceeds net of any related Foreclosure

Profit;

 

(iv) all proceeds of any Mortgage Loans repurchased by the

Seller pursuant to the Mortgage Loan Purchase Agreement, and all

Substitution Adjustment Amounts required to be deposited in connection

with the substitution of an Eligible Substitute Mortgage Loan pursuant

to the Mortgage Loan Purchase Agreement;

 

(v) insurance proceeds, other than Net Liquidation Proceeds,

resulting from any insurance policy maintained on a Mortgaged Property;

and

 

(vi) amounts required to be paid by the Servicer pursuant to

Section 8.08.

 

(vii) PROVIDED, HOWEVER, that with respect to each Collection

Period, the Servicer shall be permitted to retain from payments in

respect of interest on the Mortgage Loans, the Servicing Fee for such

Collection Period. The foregoing requirements respecting deposits to

the Collection Account are exclusive, it being understood that, without

limiting the generality of the foregoing, the Servicer need not deposit

in the Collection Account amounts representing Foreclosure Profits,

fees (including annual fees) or late charge penalties, payable by

Mortgagors, or amounts received by the Servicer for the accounts of

Mortgagors for application towards the payment of taxes, insurance

premiums, assessments and similar items. In the event any amount not

required to be deposited in the Collection Account is so deposited, the

Servicer may at any time withdraw such amount from the Collection

Account, any provision herein to the contrary notwithstanding. The

Collection Account may contain funds that belong to one or more trust

funds created for the notes or certificates of other series and may

contain other funds respecting payments on mortgage loans belonging to

the Servicer or serviced or serviced by it on behalf of others.

Notwithstanding such commingling of funds, the Servicer shall keep

records that accurately reflect the funds on deposit in the Collection

Account that have been identified by it as being attributable to the

Mortgage Loans and shall hold all collections in the Collection Account

to the extent they represent collections on the Mortgage Loans for the

benefit of the Depositor, the Indenture Trustee, the Securityholders

and the Credit Enhancer, as their interests may appear. The Servicer

shall remit all Foreclosure Profits to itself as additional servicing

compensation.

 

The Servicer may cause the institution maintaining the Collection

Account to invest any funds in the Collection Account in Eligible Investments

(including obligations of the Servicer or any of its Affiliates, if such

obligations otherwise qualify as Eligible Investments), which shall mature not

later than the Business Day next preceding the Payment Date and shall not be

sold or disposed of prior to its maturity. Except as provided above, all income

and gain realized from any such investment shall be for the benefit of the

Servicer and shall be subject to its withdrawal or order from time to time. The

amount of any losses incurred in respect of the principal amount of any such

investments shall be deposited in the Collection Account by the Servicer out of

its own funds immediately as realized.

 

(c) The Servicer will require each Subservicer to hold all funds

constituting collections on the Mortgage Loans, pending remittance thereof to

the Servicer, in one or more accounts meeting the requirements of an Eligible

Account, and invested in Eligible Investments, unless, all such collections are

remitted on a daily basis to the Servicer for deposit into the Collection

Account.

 

Section 3.03 WITHDRAWALS FROM THE COLLECTION ACCOUNT. The Servicer

shall, from time to time as provided herein, make withdrawals from the

Collection Account of amounts on deposit therein pursuant to Section 3.02 that

are attributable to the Mortgage Loans for the following purposes:

 

(i) to deposit in the Distribution Account, on the Business

Day prior to each Payment Date, an amount equal to the Security

Collections required to be distributed on such Payment Date;

 

(ii) to the extent deposited to the Collection Account, to

reimburse itself or the related Subservicer for previously unreimbursed

expenses incurred in maintaining individual insurance policies pursuant

to Section 3.04, or Liquidation Expenses, paid pursuant to Section 3.07

or otherwise reimbursable pursuant to the terms of this Servicing

Agreement (to the extent not payable pursuant to Section 3.09), such

withdrawal right being limited to amounts received on particular

Mortgage Loans (other than any Repurchase Price in respect thereof)

which represent late recoveries of the payments for which such advances

were made, or from related Liquidation Proceeds or the proceeds of the

purchase of such Mortgage Loan;

 

(iii) to pay to itself out of each payment received on account

of interest on a Mortgage Loan as contemplated by Section 3.09, an

amount equal to the related Servicing Fee (to the extent not retained

pursuant to Section 3.02), and to pay to any Subservicer any

Subservicing Fees not previously withheld by the Subservicer;

 

(iv) to the extent deposited in the Collection Account to pay

to itself as additional servicing compensation any interest or

investment income earned on funds deposited in the Collection Account

and Payment Account that it is entitled to withdraw pursuant to

Sections 3.02(b) and 5.01;

 

(v) to the extent deposited in the Collection Account, to pay

to itself as additional servicing compensation any Foreclosure Profits;

 

(vi) to pay to itself or the Seller, with respect to any

Mortgage Loan or property acquired in respect thereof that has been

purchased or otherwise transferred to the Seller, the Servicer or other

entity, all amounts received thereon and not required to be distributed

to Securityholders as of the date on which the related Purchase Price

or Repurchase Price is determined;

 

(vii) to withdraw any other amount deposited in the Collection

Account that was not required to be deposited therein pursuant to

Section 3.02;

 

(viii) to pay to the Seller the amount, if any, deposited in

the Collection Account by the Indenture Trustee upon release thereof

from the Funding Account representing payments for Additional Loans;

and

 

(ix) after the occurrence of an Amortization Event, to pay to

the Seller, the Excluded Amount.

 

(x) Since, in connection with withdrawals pursuant to clauses

(iii), (iv), (vi) and (vii), the Servicer's entitlement thereto is

limited to collections or other recoveries on the related Mortgage

Loan, the Servicer shall keep and maintain separate accounting, on a

Mortgage Loan by Mortgage Loan basis, for the purpose of justifying any

withdrawal from the Collection Account pursuant to such clauses.

Notwithstanding any other provision of this Servicing Agreement, the

Servicer shall be entitled to reimburse itself for any previously

unreimbursed expenses incurred pursuant to Section 3.07 or otherwise

reimbursable pursuant to the terms of this Servicing Agreement that the

Servicer determines to be otherwise nonrecoverable (except with respect

to any Mortgage Loan as to which the Repurchase Price has been paid),

by withdrawal from the Collection Account of amounts on deposit therein

attributable to the Mortgage Loans on any Business Day prior to the

Payment Date succeeding the date of such determination.

 

Section 3.04 MAINTENANCE OF HAZARD INSURANCE; PROPERTY PROTECTION

EXPENSES. The Servicer shall cause to be maintained for each Mortgage Loan

hazard insurance naming the Servicer or related Subservicer as loss payee

thereunder providing extended coverage in an amount which is at least equal to

the lesser of (i) the maximum insurable value of the improvements securing such

Mortgage Loan from time to time or (ii) the combined principal balance owing on

such Mortgage Loan and any mortgage loan senior to such Mortgage Loan from time

to time. The Servicer shall also cause to be maintained on property acquired

upon foreclosure, or deed in lieu of foreclosure, of any Mortgage Loan, fire

insurance with extended coverage in an amount which is at least equal to the

amount necessary to avoid the application of any co-insurance clause contained

in the related hazard insurance policy. Amounts collected by the Servicer under

any such policies (other than amounts to be applied to the restoration or repair

of the related Mortgaged Property or property thus acquired or amounts released

to the Mortgagor in accordance with the Servicer's normal servicing procedures)

shall be deposited in the Collection Account to the extent called for by Section

3.02. In cases in which any Mortgaged Property is located at any time during the

life of a Mortgage Loan in a federally designated flood area, the hazard

insurance to be maintained for the related Mortgage Loan shall include flood

insurance (to the extent available). All such flood insurance shall be in

amounts equal to the lesser of (i) the amount required to compensate for any

loss or damage to the Mortgaged Property on a replacement cost basis and (ii)

the maximum amount of such insurance available for the related Mortgaged

Property under the national flood insurance program (assuming that the area in

which such Mortgaged Property is located is participating in such program). The

Servicer shall be under no obligation to require that any Mortgagor maintain

earthquake or other additional insurance and shall be under no obligation itself

to maintain any such additional insurance on property acquired in respect of a

Mortgage Loan, other than pursuant to such applicable laws and regulations as

shall at any time be in force and as shall require such additional insurance. If

the Servicer shall obtain and maintain a blanket policy consistent with its

general mortgage servicing activities insuring against hazard losses on all of

the Mortgage Loans, it shall conclusively be deemed to have satisfied its

obligations as set forth in the first sentence of this Section 3.04, it being

understood and agreed that such policy may contain a deductible clause, in which

case the Servicer shall, in the event that there shall not have been maintained

on the related Mortgaged Property a policy complying with the first sentence of

this Section 3.04 and there shall have been a loss which would have been covered

by such policy, deposit in the Collection Account the amount not otherwise

payable under the blanket policy because of such deductible clause. Any such

deposit by the Servicer shall be made on the last Business Day of the Collection

Period in the month in which payments under any such policy would have been

deposited in the Collection Account. In connection with its activities as

administrator and servicer of the Mortgage Loans, the Servicer agrees to

present, on behalf of itself, the Depositor, the Issuing Entity, the Indenture

Trustee and the Securityholders, claims under any such blanket policy.

 

Section 3.05 MODIFICATION AGREEMENTS. The Servicer or the related

Subservicer, as the case may be, shall be entitled to (A) execute assumption

agreements, substitution agreements, and instruments of satisfaction or

cancellation or of partial or full release or discharge, or any other document

contemplated by this Servicing Agreement and other comparable instruments with

respect to the Mortgage Loans and with respect to the Mortgaged Properties

subject to the Mortgages (and the Depositor shall promptly execute any such

documents on request of the Servicer) and (B) approve the granting of an

easement thereon in favor of another Person, any alteration or demolition of the

related Mortgaged Property or other similar matters, if it has determined,

exercising its good faith business judgment in the same manner as it would if it

were the owner of the related Mortgage Loan, that the security for, and the

timely and full collectability of, such Mortgage Loan would not be adversely

affected thereby. A partial release pursuant to this Section 3.05 shall be

permitted only if the Combined Loan-to-Value Ratio for such Mortgage Loan after

such partial release does not exceed the Combined Loan-to-Value Ratio for such

Mortgage Loan as of the Cut-Off Date. Any fee collected by the Servicer or the

related Subservicer for processing such request will be retained by the Servicer

or such Subservicer as additional servicing compensation.

 

Section 3.06 TRUST ESTATE; RELATED DOCUMENTS. (a) When required by the

provisions of this Servicing Agreement, the Depositor shall execute instruments

to release property from the terms of this Servicing Agreement, or convey the

Depositor's interest in the same, in a manner and under circumstances which are

not inconsistent with the provisions of this Servicing Agreement. No party

relying upon an instrument executed by the Depositor as provided in this Article

III shall be bound to ascertain the Depositor's authority, inquire into the

satisfaction of any conditions precedent or see to the application of any

moneys.

 

(b) If from time to time the Servicer shall deliver to the Depositor or

the related Custodian copies of any written assurance, assumption agreement or

substitution agreement or other similar agreement pursuant to Section 3.05, the

Depositor or the related Custodian shall check that each of such documents

purports to be an original executed copy (or a copy of the original executed

document if the original executed copy has been submitted for recording and has

not yet been returned) and, if so, shall file such documents, and upon receipt

of the original executed copy from the applicable recording office or receipt of

a copy thereof certified by the applicable recording office shall file such

originals or certified copies with the Related Documents. If any such documents

submitted by the Servicer do not meet the above qualifications, such documents

shall promptly be returned by the Depositor or the related Custodian to the

Servicer, with a direction to the Servicer to forward the correct documentation.

 

(c) Upon Depositor Request accompanied by an Officers' Certificate of

the Servicer pursuant to Section 3.09 of this Servicing Agreement to the effect

that a Mortgage Loan has been the subject of a final payment or a prepayment in

full and the related Mortgage Loan has been terminated or that substantially all

Liquidation Proceeds which have been determined by the Servicer in its

reasonable judgment to be finally recoverable have been recovered, and upon

deposit to the Collection Account of such final monthly payment, prepayment in

full together with accrued and unpaid interest to the date of such payment with

respect to such Mortgage Loan or, if applicable, Liquidation Proceeds, the

Depositor shall promptly release the Related Documents to the Servicer, along

with such documents as the Servicer or the Mortgagor may request as contemplated

by the Servicing Agreement to evidence satisfaction and discharge of such

Mortgage Loan. If from time to time and as appropriate for the servicing or

foreclosure of any Mortgage Loan, the Servicer requests the Depositor or the

related Custodian to release the Related Documents and delivers to the Depositor

or the related Custodian a trust receipt reasonably satisfactory to the

Depositor or the related Custodian and signed by a Responsible Officer of the

Servicer, the Depositor or the related Custodian shall release the Related

Documents to the Servicer. If such Mortgage Loans shall be liquidated and the

Depositor or the related Custodian receives a certificate from the Servicer as

provided above, then, upon request of the Depositor or the related Custodian

shall release the trust receipt to the Servicer.

 

Section 3.07 REALIZATION UPON DEFAULTED MORTGAGE LOANS. With respect to

such of the Mortgage Loans as come into and continue in default, the Servicer

will decide whether to foreclose upon the Mortgaged Properties securing such

Mortgage Loans or write off the unpaid principal balance of the Mortgage Loans

as bad debt; provided that if the Servicer has actual knowledge that any

Mortgaged Property is affected by hazardous or toxic wastes or substances and

that the acquisition of such Mortgaged Property would not be commercially

reasonable, then the Servicer will not cause the Depositor to acquire title to

such Mortgaged Property in a foreclosure or similar proceeding. In connection

with such foreclosure or other conversion, the Servicer shall follow such

practices (including, in the case of any default on a related senior mortgage

loan, the advancing of funds to correct such default) and procedures as it shall

deem necessary or advisable and as shall be normal and usual in its general

mortgage servicing activities; PROVIDED that the Servicer shall not be liable in

any respect hereunder if the Servicer is acting in connection with any such

foreclosure or attempted foreclosure which is not completed or other conversion

in a manner that is consistent with the provisions of this Servicing Agreement.

The foregoing is subject to the proviso that the Servicer shall not be required

to expend its own funds in connection with any fore closure or attempted

foreclosure which is not completed or towards the correction of any default on a

related senior mortgage loan or restoration of any property unless it shall

determine that such expenditure will increase Net Liquidation Proceeds. In the

event of a determination by the Servicer that any such expenditure previously

made pursuant to this Section 3.07 will not be reimbursable from Net Liquidation

Proceeds, the Servicer shall be entitled to reimbursement of its funds so

expended pursuant to Section 3.03.

 

Notwithstanding any provision of this Servicing Agreement, a Mortgage

Loan may be deemed to be finally liquidated if substantially all amounts

expected by the Servicer to be received in connection with the related defaulted

Mortgage Loan have been received; PROVIDED, HOWEVER, any subsequent collections

with respect to any such Mortgage Loan shall be deposited to the Collection

Account. For purposes of determining the amount of any Liquidation Proceeds or

Insurance Proceeds, or other unscheduled collections, the Servicer may take into

account minimal amounts of additional receipts expected to be received or any

estimated additional liquidation expenses expected to be incurred in connection

with the related defaulted Mortgage Loan.

 

In the event that title to any Mortgaged Property is acquired in

foreclosure or by deed in lieu of foreclosure, the deed or certificate of sale

shall be issued to the Depositor and the Indenture Trustee as their interests

may appear, or to their respective nominee on behalf of Securityholders.

Notwithstanding any such acquisition of title and cancellation of the related

Mortgage Loan, such Mortgaged Property shall (except as otherwise expressly

provided herein) be considered to be an outstanding Mortgage Loan held as an

asset of the Depositor until such time as such property shall be sold.

Consistent with the foregoing for purposes of all calculations hereunder, so

long as such Mortgaged Property shall be considered to be an outstanding

Mortgage Loan it shall be assumed that, notwithstanding that the indebtedness

evidenced by the related Mortgage Note shall have been discharged, such Mortgage

Note in effect at the time of any such acquisition of title before any

adjustment thereto by reason of any bankruptcy or similar proceeding or any

moratorium or similar waiver or grace period will remain in effect.

 

Any proceeds from foreclosure proceedings or the purchase or repurchase

of any Mortgage Loan pursuant to the terms of this Servicing Agreement, as well

as any recovery resulting from a collection of Liquidation Proceeds or Insurance

Proceeds, will be applied in the following order of priority: first, to

reimburse the Servicer or the related Subservicer in accordance with Section

3.07; second, to all Servicing Fees payable therefrom; third, to the extent of

accrued and unpaid interest on the related Mortgage Loan, at the Net Mortgage

Rate to the Due Date prior to the Payment Date on which such amounts are to be

deposited in the Payment Account; fourth, as a recovery of principal on the

Mortgage Loan; and fifth, to Foreclosure Profits.

 

Section 3.08 DEPOSITOR AND INDENTURE TRUSTEE TO COOPERATE. On or before

each Payment Date, the Servicer will notify the Indenture Trustee or the

relevant Custodian, with a copy to the Depositor, of the termination of or the

payment in full and the termination of any Mortgage Loan during the preceding

Collection Period, which notification shall be by a certification in

substantially the form attached hereto as Exhibit C (which certification shall

include a statement to the effect that all amounts received in connection with

such payment which are required to be deposited in the Collection Account

pursuant to Section 3.02 have been so deposited or credited) of a Servicing

Officer. Upon receipt of payment in full, the Servicer is authorized to execute,

pursuant to the authorization contained in Section 3.01, if the assignments of

Mortgage have been recorded as required under the Mortgage Loan Purchase

Agreement, an instrument of satisfaction regarding the related Mortgage, which

instrument of satisfaction shall be recorded by the Servicer if required by

applicable law and be delivered to the Person entitled thereto. It is understood

and agreed that any expenses incurred in connection with such instrument of

satisfaction or transfer shall be reimbursed from amounts deposited in the

Collection Account. From time to time and as appropriate for the servicing or

foreclosure of any Mortgage Loan, the Indenture Trustee or the relevant

Custodian shall, upon request of the Servicer and delivery to the Indenture

Trustee or relevant Custodian, with a copy to the Depositor, of a Request for

Release, in the form annexed hereto as Exhibit D, signed by a Servicing Officer,

release or cause to be released the related Mortgage File to the Servicer and

the Depositor and Indenture Trustee shall promptly execute such documents, in

the forms provided by the Servicer, as shall be necessary for the prosecution of

any such proceedings or the taking of other servicing actions. Such trust

receipt shall obligate the Servicer to return the Mortgage File to the Indenture

Trustee or the related Custodian (as specified in such receipt) when the need

therefor by the Servicer no longer exists unless the Mortgage Loan shall be

liquidated, in which case, upon receipt of a certificate of a Servicing Officer

similar to that hereinabove specified, the trust receipt shall be released to

the Servicer.

 

In order to facilitate the foreclosure of the Mortgage securing any

Mortgage Loan that is in default following recordation of the assignments of

Mortgage in accordance with the provisions of the Mortgage Loan Purchase

Agreement, the Depositor shall, if so requested in writing by the Servicer,

promptly execute an appropriate assignment in the form provided by the Servicer

to assign such Mortgage Loan for the purpose of collection to the Servicer (any

such assignment shall unambiguously indicate that the assignment is for the

purpose of collection only), and, upon such assignment, such assignee for

collection will thereupon bring all required actions in its own name and

otherwise enforce the terms of the Mortgage Loan and deposit or credit the Net

Liquidation Proceeds, exclusive of Foreclosure Profits, received with respect

thereto in the Collection Account. In the event that all delinquent payments due

under any such Mortgage Loan are paid by the Mortgagor and any other defaults

are cured then the assignee for collection shall promptly reassign such Mortgage

Loan to the Depositor and return all Related Documents to the place where the

related Mortgage File was being maintained.

 

In connection with the Depositor's obligation to cooperate as provided

in this Section 3.08 and all other provisions of this Servicing Agreement

requiring the Depositor to authorize or permit any actions to be taken with

respect to the Mortgage Loans, the Indenture Trustee, as pledgee of the Mortgage

Collateral in the Depositor, expressly agrees, on behalf of the Depositor, to

take all such actions on behalf of the Depositor and to promptly execute and

return all instruments reasonably required by the Servicer in connection

therewith; PROVIDED that if the Servicer shall request a signature of the

Indenture Trustee, on behalf of the Depositor, the Servicer will deliver to the

Indenture Trustee an Officer's Certificate stating that such signature is

necessary or appropriate to enable the Servicer to carry out its servicing and

administrative duties under this Servicing Agreement.

 

Section 3.09 SERVICING COMPENSATION; PAYMENT OF CERTAIN EXPENSES BY

SERVICER. The Servicer shall be entitled to receive the Servicing Fee in

accordance with Section 3.03 as compensation for its services in connection with

servicing the Mortgage Loans. Moreover, additional servicing compensation in the

form of late payment charges and certain other receipts not required to be

deposited in the Collection Account as specified in Section 3.02 shall be

retained by the Servicer. The Servicer shall be required to pay all expenses

incurred by it in connection with its activities hereunder (including payment of

all other fees and expenses not expressly stated hereunder to be for the account

of the Securityholders, including, without limitation, the fees and expenses of

the Administrator, Owner Trustee, Indenture Trustee and any Custodian) and shall

not be entitled to reimbursement therefor except as specifically provided

herein.

 

Section 3.10 ANNUAL STATEMENT AS TO COMPLIANCE.

 

The Servicer will deliver to the Depositor, the Issuing Entity and the

Indenture Trustee, with a copy to the Credit Enhancer, not later than February

28 of each calendar year beginning in 2007, an Officer's Certificate (an "Annual

Statement of Compliance") stating, as to each signatory thereof, that (i) a

review of the activities of the Servicer during the preceding calendar year and

of performance under this Agreement or other applicable servicing agreement has

been made under such officer's supervision and (ii) to the best of such

officers' knowledge, based on such review, the Servicer has fulfilled all of its

obligations under this Agreement or other applicable servicing agreement in all

material respects throughout such year, or, if there has been a failure to

fulfill any such obligation in any material respect, specifying each such

failure known to such officer and the nature and status of cure provisions

thereof. Such Annual Statement of Compliance shall contain no restrictions or

limitations on its use. In the event that the Servicer has delegated any

servicing responsibilities with respect to the Mortgage Loans to a subservicer,

the Servicer shall deliver a similar Annual Statement of Compliance by that

subservicer to the Indenture Trustee as described above as and when required

with respect to the Servicer.

 

If the Servicer cannot deliver the related Annual Statement of

Compliance by February 28th of such year, the Indenture Trustee, at its sole

option, may permit a cure period for the Servicer to deliver such Annual

Statement of Compliance, but in no event later than March 10th of such year.

 

Failure of the Servicer to timely comply with this Section 3.10 shall

be deemed a Servicing Default, and the Indenture Trustee may, in addition to

whatever rights the Indenture Trustee may have under this Agreement and at law

or equity or to damages, including injunctive relief and specific performance,

upon notice immediately terminate all the rights and obligations of the Servicer

under this Agreement and in and to the Mortgage Loans and the proceeds thereof

without compensating the Servicer for the same. This paragraph shall supercede

any other provision in this Agreement or any other agreement to the contrary.

 

Section 3.11 ASSESSMENTS OF COMPLIANCE AND ATTESTATION REPORTS.

 

Assessments of Compliance and Attestation Reports. On and after January

1, 2006, the Servicer shall service and administer the Mortgage Loans in

accordance with all applicable requirements of the Servicing Criteria. Pursuant

to Rules 13a-18 and 15d-18 of the Exchange Act and Item 1123 of Regulation AB,

the Servicer shall deliver to the Issuing Entity, the Indenture Trustee, the

Depositor, the Credit Enhancer and each Rating Agency on or before February 28

of each calendar year beginning in 2007, a report regarding the Servicer's

assessment of compliance (an "Assessment of Compliance") with the Servicing

Criteria during the preceding calendar year. The Assessment of Compliance must

be reasonably satisfactory to the Indenture Trustee, and as set forth in

Regulation AB, the Assessment of Compliance must contain the following:

 

(a) A statement by such officer of its responsibility for assessing

compliance with the Servicing Criteria applicable to the Servicer;

 

(b) A statement by such officer that such officer used the Servicing

Criteria attached as Exhibit E hereto, and which will also be attached to the

Assement of Compliance, to assess compliance with the Servicing Criteria

applicable to the Servicer;

 

(c) An assessment by such officer of the Servicer's compliance with the

applicable Servicing Criteria for the period consisting of the preceding

calendar year, including disclosure of any material instance of noncompliance

with respect thereto during such period, which assessment shall be based on the

activities it performs with respect to asset-backed securities transactions

taken as a whole involving the Servicer, that are backed by the same asset type

as the Mortgage Loans;

 

(d) A statement that a registered public accounting firm has issued an

attestation report on the Servicer's Assessment of Compliance for the period

consisting of the preceding calendar year; and

 

(e) A statement as to which of the Servicing Criteria, if any, are not

applicable to the Servicer, which statement shall be based on the activities it

performs with respect to asset-backed securities transactions taken as a whole

involving the Servicer, that are backed by the same asset type as the Mortgage

Loans.

 

Such report at a minimum shall address each of the Servicing Criteria

specified on Exhibit E hereto which are indicated as applicable to the Servicer.

 

On or before February 28 of each calendar year beginning in 2007, the

Servicer shall furnish to the Issuing Entity, the Indenture Trustee, the

Depositor, the Credit Enhancer and each Rating Agency a report (an "Attestation

Report") by a registered public accounting firm that attests to, and reports on,

the Assessment of Compliance made by the Depositor, as required by Rules 13a-18

and 15d-18 of the Exchange Act and Item 1122(b) of Regulation AB, which

Attestation Report must be made in accordance with standards for attestation

reports issued or adopted by the Public Company Accounting Oversight Board.

 

The Servicer shall cause any subservicer, and each subcontractor

determined by the Servicer to be "participating in the servicing function"

within the meaning of Item 1122 of Regulation AB, to deliver to the Issuing

Entity, the Indenture Trustee, the Depositor, the Credit Enhancer and each

Rating Agency an Assessment of Compliance and Attestation Report as and when

provided above.

 

Such Assessment of Compliance, as to any subservicer, shall at a

minimum address each of the Servicing Criteria specified on Exhibit E hereto

which are indicated as applicable to any "primary servicer." Notwithstanding the

foregoing, as to any subcontractor, an Assessment of Compliance is not required

to be delivered unless it is required as part of a Form 10-K with respect to the

Trust Fund.

 

If the Servicer cannot deliver any Assessment of Compliance or

Attestation Report by February 28th of such year, the Indenture Trustee, at its

sole option, may permit a cure period for the Servicer to deliver such

Assessment of Compliance or Attestation Report, but in no event later than March

10th of such year.

 

Failure of the Master Servicer to timely comply with this Section 3.11

shall be deemed a Servicing Default, and the Indenture Trustee may, in addition

to whatever rights the Indenture Trustee may have under this Agreement and at

law or equity or to damages, including injunctive relief and specific

performance, upon notice immediately terminate all the rights and obligations of

the Servicer under this Agreement and in and to the Mortgage Loans and the

proceeds thereof without compensating the Servicer for the same. This paragraph

shall supercede any other provision in this Agreement or any other agreement to

the contrary.

 

The Indenture Trustee shall also provide an Assessment of Compliance

and Attestation Report, as and when provided above, which shall at a minimum

address each of the Servicing Criteria specified on Exhibit E hereto which are

indicated as applicable to the "indenture trustee" or "securities

administrator." In addition, the Indenture Trustee shall cause the Custodian to

deliver to the Indenture Trustee and the Depositor an Assessment of Compliance

and Attestation Report, as and when provided above, which shall at a minimum

address each of the Servicing Criteria specified on Exhibit E hereto which are

indicated as applicable to a "custodian." Notwithstanding the foregoing, as to

any Custodian, an Assessment of Compliance is not required to be delivered

unless it is required as part of a Form 10-K with respect to the Trust Fund.

 

Section 3.12 ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING

THE MORTGAGE LOANS. Whenever required by statute or regulation, the Servicer

shall provide to the Credit Enhancer, any Securityholder upon reasonable request

(or a regulator for a Securityholder) or the Indenture Trustee, reasonable

access to the documentation regarding the Mortgage Loans such access being

afforded without charge but only upon reasonable request and during normal

business hours at the offices of the Servicer. Nothing in this Section 3.12

shall derogate from the obligation of the Servicer to observe any applicable law

prohibiting disclosure of information regarding the Mortgagors and the failure

of the Servicer to provide access as provided in this Section 3.12 as a result

of such obligation shall not constitute a breach of this Section 3.12.

 

The Servicer hereby agrees that, except as otherwise expressly permitted herein, it shall not communicate with (including verbally) or provide information to a Rating Agency without the prior consent of and consultation with the Depositor, and that any permitted communication by it to a Rating Agency will be made by it only in the manner prescribed by the procedures established by the Depositor to ensure compliance with Rule 17g-5 under the Exchange Act, including to the extent set forth herein and in the Indenture, providing any such communications to the Depositor for posting on the Rule 17g-5 Website pursuant to the Indenture prior to communicating with such Rating Agency.

 

Section 3.13 MAINTENANCE OF CERTAIN SERVICING INSURANCE POLICIES. The

Servicer shall during the term of its service as servicer maintain in force (i)

a policy or policies of insurance covering errors and omissions in the

performance of its obligations as servicer hereunder and (ii) a fidelity bond in

respect of its officers, employees or agents. Each such policy or policies and

bond shall be at least equal to the coverage that would be required by FNMA or

FHLMC, whichever is greater, for Persons performing servicing for mortgage loans

purchased by such entity.

 

Section 3.14 INFORMATION REQUIRED BY THE INTERNAL REVENUE SERVICE

GENERALLY AND REPORTS OF FORECLOSURES AND ABANDONMENTS OF MORTGAGED PROPERTY.

The Servicer shall prepare and deliver all federal and state information reports

when and as required by all applicable state and federal income tax laws. In

particular, with respect to the requirement under Section 6050J of the Code to

the effect that the Servicer or Subservicer shall make reports of foreclosures

and abandonments of any mortgaged property for each year beginning in ____, the

Servicer or Subservicer shall file reports relating to each instance occurring

during the previous calendar year in which the Servicer (i) on behalf of the

Depositor, acquires an interest in any Mortgaged Property through foreclosure or

other comparable conversion in full or partial satisfaction of a Mortgage Loan,

or (ii) knows or has reason to know that any Mortgaged Property has been

abandoned. The reports from the Servicer or Subservicer shall be in form and

substance sufficient to meet the reporting requirements imposed by Section 6050J

and Section 6050H (reports relating to mortgage interest received) of the Code.

 

Section 3.15 OPTIONAL REPURCHASE OF DEFAULTED MORTGAGE LOANS.

Notwithstanding any provision in Section 3.07 to the contrary, the Servicer may

repurchase any Mortgage Loan delinquent in payment for a period of 60 days or

longer for a price equal to the Repurchase Price.

 

Section 3.16 INTENTION OF THE PARTIES AND INTERPRETATION. Each of the

parties acknowledges and agrees that the purpose of Sections 3.10 and 3.11 of

this Agreement is to facilitate compliance with the provisions of Regulation AB

promulgated by the SEC under the Exchange Act (17 C.F.R. ss.ss. 229.1100 -

229.1123), as such may be amended from time to time and subject to clarification

and interpretive advice as may be issued by the staff of the SEC from time to

time. Therefore, each of the parties agrees that (a) the obligations of the

parties hereunder shall be interpreted in such a manner as to accomplish that

purpose, (b) the parties' obligations hereunder will be supplemented and

modified as necessary to be consistent with any such amendments, interpretive

advice or guidance, convention or consensus among active participants in the

asset-backed securities markets, advice of counsel, or otherwise in respect of

the requirements of Regulation AB, (c) the parties shall comply with requests

made by the Indenture Trustee or the Depositor for delivery of additional or

different information as the Indenture Trustee or the Depositor may determine in

good faith is necessary to comply with the provisions of Regulation AB, and (d)

no amendment of this Agreement shall be required to effect any such changes in

the parties' obligations as are necessary to accommodate evolving

interpretations of the provisions of Regulation AB.

 

Section 3.17 COMPLIANCE WITH THE HOMES ACT.  The Servicer, on behalf of the Securityholders, shall prepare and distribute a Section 404 Notice to each Mortgagor within thirty (30) days of the Closing Date in connection with the sale of the Mortgage Loans from the Seller to the Depositor.  Each such Section 404 Notice shall conform to the form of notice attached hereto as Exhibit F or in another form reasonably acceptable to the Servicer, subject to any changes necessitated by regulatory guidance.  The Servicer shall pay all costs associated with the distribution of such Section 404 Notice, and [__________] shall reimburse the Servicer for such costs.  The Servicer shall promptly send written confirmation to the Indenture Trustee upon the completion of the distribution of such Section 404 Notices.

 

Section 3.18 RULE 15Ga-1 COMPLIANCE. (a)                                                                                                To the extent a Responsible Officer of the Servicer receives a demand for the repurchase or substitution of a Mortgage Loan based on a breach of a representation or warranty made by the Seller or the Originator of such Mortgage Loan (each, a “Demand”), the Servicer agrees (i) if such Demand is in writing, promptly to forward such Demand to the Indenture Trustee, and (ii) if such Demand is oral, to instruct the requesting party to submit such Demand in writing to the Indenture Trustee.  To the extent a Responsible Officer of the Indenture Trustee receives a Demand, it shall provide the Depositor with prompt written notice of such Demand.

 

          (b)                                In connection with the repurchase or substitution of a Mortgage Loan pursuant to a Demand, any dispute with respect to a Demand, or the withdrawal or final rejection of a Demand (i) the Servicer agrees, to the extent a Responsible Officer of the Servicer has actual knowledge thereof, promptly to notify the Indenture Trustee in writing, and (ii) the Indenture Trustee agrees, to the extent a Responsible Officer of the Indenture Trustee has actual knowledge thereof, promptly to notify the Depositor in writing.

 

          (c)                                To the extent in its possession, the Indenture Trustee shall provide the Depositor with any applicable information required under Rule 15Ga-1 of the Exchange Act (the “Rule 15Ga-1 Information”) with respect to a Demand in a timely manner so as to enable the Depositor to meet its reporting obligations under Rule 15Ga-1.  The Depositor shall be entitled conclusively to rely on the Rule 15Ga-1 Information provided to it by the Indenture Trustee in connection with the compilation by the Depositor of the Rule 15Ga-1 Information required to be reported on Form ABS-15G.  For the avoidance of doubt, the Depositor shall have sole responsibility for compiling the Rule 15Ga-1 Information required to be reported on Form ABS-15G. Other than with respect to the obligations of the Indenture Trustee in this Section 3.18, the Indenture Trustee shall have no responsibility or liability in connection with any filing required to be made by the Depositor pursuant to Rule 15Ga-1 of the Exchange Act.

 

Section 3.19 RULE 17g-5 COMPLIANCE. (a)                                                                                                The Rule 17g-5 Information Provider shall, upon receipt of an NRSRO Certification in the form of Exhibit G, make available on its Rule 17g-5 Website solely to the Depositor, the Rating Agencies and to any NRSRO the following items, but only to the extent such items are delivered to it by electronic mail to [__________], specifically with a subject reference of “[_______]” and an identification of the type of information being provided in the body of such notice, or any other delivery method established or approved by the Rule 17g-5 Information Provider if or as may be necessary or beneficial;

 

(i)           any Rating Agency Information provided to the Rule 17g-5 Information Provider in accordance with Sections [____] of this Indenture, as well as reports prepared in accordance with Sections [___] of the Servicing Agreement (provided that the Rule 17g-5 Information Provider shall not be required to post to its Rule 17g-5 Website any such information previously posted to and available on the [_________]’s website);

 

(ii)           any notice of any amendment that modifies the procedures herein relating to Exchange Act Rule 17g-5 pursuant to this Indenture; and

 

(iii)                      a summary of any oral conversation with a Rating Agency regarding any Mortgage Loan, any Mortgaged Property or any REO Property, to the extent required to be provided pursuant to Rule 17g-5.

 

The foregoing information shall be made available by the Rule 17g-5 Information Provider on its Rule 17g-5 Website.  Such information shall be posted to the Rule 17g-5 Website on the same Business Day as it is received, provided that such information is received by 12:00 p.m. (eastern time) or, if received after 12:00 p.m., on the next Business Day.  The Rule 17g-5 Information Provider shall have no obligation or duty to verify, confirm or otherwise determine whether the information being delivered is accurate, complete, conforms to the requirements of this Indenture, or otherwise is or is not anything other than what it purports to be.  The Rule 17g-5 Information Provider shall not be deemed to have obtained actual knowledge of any information by virtue of the receipt and posting of such information to the Rule 17g-5 Website.  Further, notwithstanding anything to the contrary herein, in the event the Depositor determines that any information previously posted to the Rule 17g-5 Website should not have been posted thereto pursuant to the terms of this Indenture, the Depositor shall direct the Rule 17g-5 Information Provider in writing to remove such information from the Rule 17g-5 Website, such written notice to specify the information to be so removed.  The Rule 17g-5 Information Provider (i) shall have no obligation or duty to verify, confirm or otherwise determine the accuracy of the information contained in such written direction, (ii) shall be entitled to rely fully upon such written direction and (iii) shall not be held liable in connection with removing any such information from the Rule 17g-5 Website upon the receipt of such written direction.

 

The Rule 17g-5 Information Provider shall provide a mechanism to notify any party that has submitted an NRSRO Certification each time the Rule 17g-5 Information Provider posts an additional document to the Rule 17g-5 Website.

 

In connection with providing access to the Rule 17g-5 Website, the Rule 17g-5 Information Provider may require registration and the acceptance of a disclaimer.  The Rule 17g-5 Information Provider shall not be liable for the dissemination of information in accordance with the terms of this Indenture, makes no representations or warranties as to the accuracy or completeness of such information being made available, has no obligation to review such information, and assumes no responsibility for such information.  The Rule 17g-5 Information Provider shall not be liable for its failure to make any information available to the Rating Agencies or NRSROs unless such information was delivered to the Rule 17g-5 Information Provider at the email address specified in writing to the Depositor, with a subject heading of “[_________]” and sufficient detail to indicate that such information is required to be posted on the Rule 17g-5 Website.

 

If any NRSRO that has previously submitted an NRSRO Certification and whose NRSRO Certification has been accepted, notifies the Rule 17g-5 Information Provider that it is unable to access information posted to the Rule 17g-5 Website and such access issue is determined to be the result of a problem with the Rule 17g-5 Website, if such access issue is not resolved within one Business Day of such determination, the Rule 17g-5 Information Provider shall so notify the Depositor.

 

(b)           Each of the Servicer and the Indenture Trustee (pursuant to the Indenture) hereby agrees that, except as otherwise expressly permitted herein, it shall not communicate with (including verbally) or provide information to a Rating Agency without the prior consent of and consultation with the Depositor, and that any permitted communication by it to a Rating Agency will be made by it only in the manner prescribed by the procedures established by the Depositor to ensure compliance with Rule 17g-5 under the Exchange Act, including to the extent set forth herein, providing any such communications to the Depositor for posting on the Rule 17g-5 Website pursuant to this Section 3.19 prior to communicating with such Rating Agency.

 

ARTICLE IV

 

SERVICING CERTIFICATE

 

Section 4.01 STATEMENTS TO SECURITYHOLDERS. (a) With respect to each

Payment Date, the Servicer shall forward to the Indenture Trustee and the

Indenture Trustee pursuant to Section 3.26 of the Indenture shall forward or

cause to be forwarded by mail to each Certificateholder, Noteholder, the Credit

Enhancer, the Depositor, the Owner Trustee, the Certificate Paying Agent and

each Rating Agency, a statement setting forth the following information as to

the Notes and Certificates, to the extent applicable:

 

(i) the aggregate amount of (a) Security Interest Collections

with respect to the Notes and the Certificates, (b) aggregate Security

Principal Collections with respect to the Notes and the Certificates

and (c) Security Collections for the related Collection Period with

respect to the Notes and the Certificates;

 

(ii) the amount of such distribution to the Securityholders of

the Notes and the Certificates applied to reduce the principal balance

thereof and separately stating the portion thereof in respect of the

Accelerated Principal Distribution Amount and the amount to be

deposited in the Funding Account on such Payment Date;

 

(iii) the amount of such distribution to the Securityholders

of the Notes and the Certificates allocable to interest and separately

stating the portion thereof in respect of overdue accrued interest;

 

(iv) the Credit Enhancement Draw Amount, if any, for such

Payment Date and the aggregate amount of prior draws thereunder not yet

reimbursed;

 

(v) the aggregate Principal Balance of (a) the ________ Loans,

(b) the ______ Loans, (c) the _________ Loans, as of the end of the

preceding Collection Period and (d) all of the Mortgage Loans;

 

(vi) the Weighted Average Net Mortgage Rate for the related

Collection Period and the Weighted Average Net Mortgage Rate for the

aggregate of the Stated Principal Balance of (A) all of the Mortgage

Loans and (B) the Adjustable Rate Mortgage Loans, for the following

Collection Period;

 

(vii) the Special Capital Distribution Amount and the Required

Special Capital Distribution Amount, in each case as the end of the

related Collection Period; and

 

(viii) the aggregate amount of Additional Loans acquired

during the previous Collection Period with amounts in respect of Net

Principal Collections from the Funding Account;

 

(ix) the aggregate Liquidation Loss Amounts with respect to

the related Collection Period, the amount of any remaining Carryover

Loss Amount with respect to the Notes and Certificates, respectively,

and the aggregate of the Liquidation Loss Amounts from all Collection

Periods to date expressed as a percentage of the sum of (a) the Cut-Off

Date Pool Balance and (b) the amount by which the Pool Balance as of

the latest date that the Additional Loans have been transferred to the

Depositor exceeds the Cut-Off Date Pool Balance;

 

(x) any unpaid interest on the Notes and Certificates,

respectively, after such Distribution Date;

 

(xi) the aggregate Principal Balance of each Class of Notes

and of the Certificates after giving effect to the distribution of

principal on such Payment Date;

 

(xii) the respective Security Percentage applicable to the

Notes and Certificates, after application of payments made on such

Payment Date;

 

(xiii) the amount distributed pursuant to Section 3.05(a)(xi)

of the Indenture on such Payment Date;

 

(xiv) the applicable record dates, accrual periods,

determination dates for calculating distributions and general

distribution dates;

 

(xv) the total cash flows received and the general sources

thereof;

 

(xvi) the related amount of the Servicing Fees paid to or

retained by the Master Servicer for the related Due Period;

 

(xvii) the amount of any Net Swap Payment payable to the

Derivative Administrator, any Net Swap Payment payable to the Swap

Provider, any Swap Termination Payment payable to the Derivative

Administrator and any Swap Termination Payment payable to the Swap

Provider;

 

(xviii) the Interest Carry Forward Amount and any Basis Risk

Shortfall Carry Forward Amount for each Class of Certificates;

 

(xix) the Certificate Principal Balance or Certificate

Notional Amount, as applicable, of each Class after giving effect (i)

to all distributions allocable to principal on such Distribution Date

and (ii) the allocation of any Applied Realized Loss Amounts for such

Distribution Date;

 

(xx) the number and Stated Principal Balance of the Mortgage

Loans in each Loan Group in respect of which (A) one Scheduled Payment

is Delinquent, (B) two Scheduled Payments are Delinquent, (C) three or

more Scheduled Payments are Delinquent and (D) foreclosure proceedings

have been commenced, in each case as of the close of business on the

last day of the calendar month preceding such Distribution Date and

separately identifying such information for the (1) first lien Mortgage

Loans, (2) second lien Mortgage Loans, and (3) Adjustable Rate Mortgage

Loans, in each such Loan Group; provided, however, that such

information will not be provided on the statements relating to the

first Payment Date;

 

(xxi) the amount of Advances included in the distribution on

such Distribution Date (including the general purpose of such

Advances), the aggregate amount of unreimbursed Advances at the close

of business on the Distribution Date, and the general source of funds

for reimbursements;

 

(xxii) the cumulative amount of Applied Realized Loss Amounts

to date;

 

(xxiii) if applicable, material modifications, extensions or

waivers to Mortgage Loan terms, fees, penalties or payments during the

preceding calendar month or that have become material over time;

 

(xxiv) with respect to any Mortgage Loan that was liquidated

during the preceding calendar month, the loan number and Stated

Principal Balance of, and Realized Loss on, such Mortgage Loan as of

the close of business on the Determination Date preceding such

Distribution Date;

 

(xxv) the total number and principal balance of any real

estate owned or REO Properties as of the close of business on the

Determination Date preceding such Distribution Date;

 

(xxvi) the three month rolling average of the percent

equivalent of a fraction, the numerator of which is the aggregate

Stated Principal Balance of the Mortgage Loans that are 60 days or more

delinquent or are in bankruptcy or foreclosure or are REO Properties,

and the denominator of which is the aggregate Stated Principal Balance

of all of the Mortgage Loans in each case as of the close of business

on the last day of the calendar month preceding such Distribution Date

and separately identifying such information for the (1) first lien

Mortgage Loans, and (2) Adjustable Rate Mortgage Loans;

 

(xxvii) the Realized Losses during the related Prepayment

Period and the cumulative Realized Losses through the end of the

preceding month;

 

(xxviii) whether a Trigger Event exists;

 

(xxix) updated pool composition data including the following

with respect to each Loan Group: average loan balance, weighted average

mortgage rate, weighted average loan-to-value ratio at origination,

weighted average FICO at origination weighted average remaining term;

and [NOTE - Item 1121(a)(8) requires updated pool composition

information, the foregoing is a suggestion of what to provide]; and

 

(xxx) information about any additions of, substitutions for or

removal of any Mortgage Loans from the Trust Fund, and any changes in

the underwriting, acquisition or selection criteria as to any Mortgage

Loans added to the Trust Fund.

 

In the case of information furnished pursuant to clauses (ii) and (iii)

above, the amounts shall be expressed as an aggregate dollar amount per Note or

Certificate with a $1,000 denomination.

 

Prior to the close of business on the Business Day next succeeding each

Determination Date, the Servicer shall furnish a written statement to the

Depositor, the Owner Trustee, the Depositor, the Certificate Paying Agent and

the Indenture Trustee setting forth (i) all the foregoing information, (ii) the

aggregate amounts required to be withdrawn from the Collection Account and

deposited into the Payment Account on the Business Day preceding the Payment

Date pursuant to Section 3.03 and (iii) the amounts (A) withdrawn from the

Payment Account and deposited to the Funding Account pursuant to Section 8.02(b)

of the Indenture and (B) withdrawn from the Funding Account and deposited to the

Collection Account pursuant to Section 8.02(c)(i) of the Indenture. The

determination by the Servicer of such amounts shall, in the absence of obvious

error, be presumptively deemed to be correct for all purposes hereunder and the

Owner Trustee and Indenture Trustee shall be protected in relying upon the same

without any independent check or verification. In addition, upon the Depositor's

written request, the Servicer shall promptly furnish information reasonably

requested by the Depositor that is reasonably available to the Servicer to

enable the Depositor to perform its federal and state income tax reporting

obligations.

 

  

  

  

ARTICLE V

 

DISTRIBUTION AND PAYMENT ACCOUNTS

 

Section 5.01 DISTRIBUTION ACCOUNT. The Servicer shall establish and

maintain a separate trust account (the "Distribution Account") titled "Opteum

Mortgage Acceptance Corporation MBN Trust Series 2000_-_, [for the benefit of the

Noteholders, the Certificateholders and the Credit Enhancer pursuant to the

Indenture, dated as of _______________, between Opteum Mortgage Acceptance Corporation

MBN Trust Series 20__-_ and [Name of Indenture Trustee]. The Distribution

Account shall be an Eligible Account. On the Business Day prior to each Payment

Date, (i) amounts deposited into the Distribution Account pursuant to Section

3.03(i) hereof will be distributed by the Servicer in accordance with Section

____ of the [Trust] Agreement, and (ii) the portion of such amounts then

distributable with respect to the Mortgage Collateral shall be deposited into

the Payment Account. [The Servicer shall invest or cause the institution

maintaining the Distribution Account to invest the funds in the Distribution

Account in Eligible Investments designated in the name of the [Servicer], which

shall mature not later than the Business Day next preceding the Payment Date

next following the date of such investment (except that (i) any investment in

the institution with which the Distribution Account is maintained may mature on

such Payment Date and (ii) any other investment may mature on such Payment Date

if the Servicer shall advance funds on such Payment Date to the Payment Account

in the amount payable on such investment on such Payment Date, pending receipt

thereof to the extent necessary to make distributions on the Securities) and

shall not be sold or disposed of prior to maturity. All income and gain realized

from any such investment shall be for the benefit of the Servicer and shall be

subject to its withdrawal or order from time to time. The amount of any losses

incurred in respect of any such investments shall be deposited in the

Distribution Account by the Servicer out of its own funds immediately as

realized.]

 

Section 5.02 PAYMENT ACCOUNT. The Indenture Trustee shall establish and

maintain a separate trust account (the "Payment Account") titled

"_____________________________, as Indenture Trustee, for the benefit of the

Noteholders, the Certificate Paying Agent and the Credit Enhancer pursuant to

the Indenture, dated as of _______________, between Opteum Mortgage Acceptance

Corporation MBN Trust Series 20__-__ and __________________________________". The

Payment Account shall be an Eligible Account. On each Payment Date, amounts on

deposit in the Payment Account will be distributed by the Indenture Trustee in

accordance with Section 3.05 of the Indenture. The Indenture Trustee shall, upon

written request from the Servicer, invest or cause the institution maintaining

the Payment Account to invest the funds in the Payment Account in Eligible

Investments designated in the name of the Indenture Trustee, which shall mature

not later than the Business Day next preceding the Payment Date next following

the date of such investment (except that (i) any investment in the institution

with which the Payment Account is maintained may mature on such Payment Date and

(ii) any other investment may mature on such Payment Date if the Indenture

Trustee shall advance funds on such Payment Date to the Payment Account in the

amount payable on such investment on such Payment Date, pending receipt thereof

to the extent necessary to make distributions on the Securities) and shall not

be sold or disposed of prior to maturity. All income and gain realized from any

such investment shall be for the benefit of the Servicer and shall be subject to

its withdrawal or order from time to time. The amount of any losses incurred in

respect of any such investments shall be deposited in the Payment Account by the

Servicer out of its own funds immediately as realized.

 

ARTICLE VI

 

THE SERVICER

 

Section 6.01 LIABILITY OF THE SERVICER. The Servicer shall be liable in

accordance herewith only to the extent of the obligations specifically imposed

upon and undertaken by the Servicer herein.

 

Section 6.02 MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE

OBLIGATIONS OF, THE SERVICER. Any corporation into which the Servicer may be

merged or converted or with which it may be consolidated, or any corporation

resulting from any merger, conversion or consolidation to which the Servicer

shall be a party, or any corporation succeeding to the business of the Servicer,

shall be the successor of the Servicer, hereunder, without the execution or

filing of any paper or any further act on the part of any of the parties hereto,

anything herein to the contrary notwithstanding.

 

The Servicer may assign its rights and delegate its duties and

obligations under this Servicing Agreement; PROVIDED that the Person accepting

such assignment or delegation shall be a Person which is qualified to service

mortgage loans on behalf of FNMA or FHLMC, is reasonably satisfactory to the

Indenture Trustee (as pledgee of the Mortgage Collateral), the Depositor and the

Credit Enhancer, is willing to service the Mortgage Loans and executes and

delivers to the Indenture Trustee and the Depositor an agreement, in form and

substance reasonably satisfactory to the Credit Enhancer, the Indenture Trustee

and the Depositor, which contains an assumption by such Person of the due and

punctual performance and observance of each covenant and condition to be

performed or observed by the Servicer under this Servicing Agreement; PROVIDED

further that each Rating Agency's rating of the Securities in effect immediately

prior to such assignment and delegation will not be qualified, reduced, or

withdrawn as a result of such assignment and delegation (as evidenced by a

letter to such effect from each Rating Agency) or considered to be below

investment grade without taking into account the Credit Enhancement Instrument.

 

Section 6.03 LIMITATION ON LIABILITY OF THE SERVICER AND OTHERS.

Neither the Servicer nor any of the directors or officers or employees or agents

of the Servicer shall be under any liability to the Depositor, the Issuing

Entity, the Owner Trustee, the Indenture Trustee or the Securityholders for any

action taken or for refraining from the taking of any action in good faith

pursuant to this Servicing Agreement, PROVIDED, HOWEVER, that this provision

shall not protect the Servicer or any such Person against any liability which

would otherwise be imposed by reason of its willful misfeasance, bad faith or

gross negligence in the performance of its duties hereunder or by reason of its

reckless disregard of its obligations and duties hereunder. The Servicer and any

director or officer or employee or agent of the Servicer may rely in good faith

on any document of any kind PRIMA FACIE properly executed and submitted by any

Person respecting any matters arising hereunder. The Servicer and any director

or officer or employee or agent of the Servicer shall be indemnified by the

Depositor and held harmless against any loss, liability or expense incurred in

connection with any legal action relating to this Servicing Agreement or the

Securities, including any amount paid to the Owner Trustee or the Indenture

Trustee pursuant to Section 6.06(b), other than any loss, liability or expense

related to any specific Mortgage Loan or Mortgage Loans (except as any such

loss, liability or expense shall be otherwise reimbursable pursuant to this

Servicing Agreement) and any loss, liability or expense incurred by reason of

its willful misfeasance, bad faith or gross negligence in the performance of its

duties hereunder or by reason of its reckless disregard of its obligations and

duties hereunder. The Servicer shall not be under any obligation to appear in,

prosecute or defend any legal action which is not incidental to its duties to

service the Mortgage Loans in accordance with this Servicing Agreement, and

which in its opinion may involve it in any expense or liability; PROVIDED,

HOWEVER, that the Servicer may in its sole discretion undertake any such action

which it may deem necessary or desirable in respect of this Servicing Agreement,

and the rights and duties of the parties hereto and the interests of the

Securityholders hereunder. In such event, the reasonable legal expenses and

costs of such action and any liability resulting therefrom shall be expenses,

costs and liabilities of the Depositor, and the Servicer shall be entitled to be

reimbursed therefor. The Servicer's right to indemnity or reimbursement pursuant

to this Section 6.03 shall survive any resignation or termination of the

Servicer pursuant to Section 6.04 or 7.01 with respect to any losses, expenses,

costs or liabilities arising prior to such resignation or termination (or

arising from events that occurred prior to such resignation or termination).

 

Section 6.04 SERVICER NOT TO RESIGN. Subject to the provisions of

Section 6.02, the Servicer shall not resign from the obligations and duties

hereby imposed on it except (i) upon determination that the performance of its

obligations or duties hereunder are no longer permissible under applicable law

or are in material conflict by reason of applicable law with any other

activities carried on by it or its subsidiaries or Affiliates, the other

activities of the Servicer so causing such a conflict being of a type and nature

carried on by the Servicer or its subsidiaries or Affiliates at the date of this

Servicing Agreement or (ii) upon satisfaction of the following conditions: (a)

the Servicer has proposed a successor servicer to the Depositor, the

Administrator and the Indenture Trustee in writing and such proposed successor

servicer is reasonably acceptable to the Depositor, the Administrator, the

Indenture Trustee and the Credit Enhancer; (b) each Rating Agency shall have

delivered a letter to the Depositor, the Credit Enhancer and the Indenture

Trustee prior to the appointment of the successor servicer stating that the

proposed appointment of such successor servicer as Servicer hereunder will not

result in the reduction or withdrawal of the then current rating of the

Securities; and (c) such proposed successor servicer is reasonably acceptable to

the Credit Enhancer, as evidenced by a letter to the Depositor and the Indenture

Trustee; PROVIDED, HOWEVER, that no such resignation by the Servicer shall

become effective until such successor servicer or, in the case of (i) above, the

Indenture Trustee, as pledgee of the Mortgage Collateral, shall have assumed the

Servicer's responsibilities and obligations hereunder or the Indenture Trustee,

as pledgee of the Mortgage Collateral, shall have designated a successor

servicer in accordance with Section 7.02. Any such resignation shall not relieve

the Servicer of responsibility for any of the obligations specified in Sections

7.01 and 7.02 as obligations that survive the resignation or termination of the

Servicer. The Servicer shall have no claim (whether by subrogation or otherwise)

or other action against any Securityholder or the Credit Enhancer for any

amounts paid by the Servicer pursuant to any provision of this Servicing

Agreement. Any such determination permitting the resignation of the Servicer

shall be evidenced by an Opinion of Counsel to such effect delivered to the

Indenture Trustee and the Credit Enhancer.

 

Section 6.05 DELEGATION OF DUTIES. In the ordinary course of business,

the Servicer at any time may delegate any of its duties hereunder to any Person,

including any of its Affiliates, who agrees to conduct such duties in accordance

with standards comparable to those with which the Servicer complies pursuant to

Section 3.01. Such delegation shall not relieve the Servicer of its liabilities

and responsibilities with respect to such duties and shall not constitute a

resignation within the meaning of Section 6.04.

 

Section 6.06 SERVICER TO PAY INDENTURE TRUSTEE'S AND OWNER TRUSTEE'S

FEES AND EXPENSES; INDEMNIFICATION. (a) The Servicer covenants and agrees to pay

to the Owner Trustee, the Indenture Trustee and any co-trustee of the Indenture

Trustee from time to time, and the Owner Trustee, the Indenture Trustee and any

such co-trustee shall be entitled to, reasonable compensation (which shall not

be limited by any provision of law in regard to the compensation of a trustee of

an express trust) for all services rendered by each of them in the execution of

the trusts created under the Trust Agreement and the Indenture and in the

exercise and performance of any of the powers and duties under the Trust

Agreement or the Indenture, as the case may be, of the Owner Trustee, the

Indenture Trustee and any co-trustee, and the Servicer will pay or reimburse the

Indenture Trustee and any co-trustee upon request for all reasonable expenses,

disbursements and advances incurred or made by the Indenture Trustee or any

co-trustee in accordance with any of the provisions of this Servicing Agreement

except any such expense, disbursement or advance as may arise from its

negligence or bad faith.

 

(b) The Servicer agrees to indemnify the Indenture Trustee and the

Owner Trustee for, and to hold the Indenture Trustee and the Owner Trustee, as

the case may be, harmless against, any loss, liability or expense incurred

without negligence or willful misconduct on its part, arising out of, or in

connection with, the acceptance and administration of the Depositor and the

assets thereof, including the costs and expenses (including reasonable legal

fees and expenses) of defending itself against any claim in connection with the

exercise or performance of any of its powers or duties under any Basic Document,

provided that:

 

(i) with respect to any such claim, the Indenture Trustee or

Owner Trustee, as the case may be, shall have given the Servicer

written notice thereof promptly after the Indenture Trustee or Owner

Trustee, as the case may be, shall have actual knowledge thereof;

 

(ii) while maintaining control over its own defense, the

Depositor, the Indenture Trustee or Owner Trustee, as the case may be,

shall cooperate and consult fully with the Servicer in preparing such

defense; and

 

(iii) notwithstanding anything in this Servicing Agreement to

the contrary, the Servicer shall not be liable for settlement of any

claim by the Indenture Trustee or the Owner Trustee, as the case may

be, entered into without the prior consent of the Servicer, which

consent shall not be unreasonably withheld.

 

No termination of this Servicing Agreement shall affect the obligations created

by this Section 6.06 of the Servicer to indemnify the Indenture Trustee and the

Owner Trustee under the conditions and to the extent set forth herein.

 

Notwithstanding the foregoing, the indemnification provided by the

Servicer in this Section 6.06(b) shall not pertain to any loss, liability or

expense of the Indenture Trustee or the Owner Trustee, including the costs and

expenses of defending itself against any claim, incurred in connection with any

actions taken by the Indenture Trustee or the Owner Trustee at the direction of

the Noteholders or Certificateholders, as the case may be, pursuant to the terms

of this Servicing Agreement.

 

ARTICLE VII

 

Default

 

Section 7.01 SERVICING DEFAULT. If any one of the following events

("Servicing Default") shall occur and be continuing:

 

(i) Any failure by the Servicer to deposit in the Collection

Account, the Funding Account or Payment Account any deposit required to

be made under the terms of this Servicing Agreement which continues

unremedied for a period of five Business Days after the date upon which

written notice of such failure shall have been given to the Servicer by

the Depositor, the Issuing Entity or the Indenture Trustee or to the

Servicer, the Depositor, the Issuing Entity and the Indenture Trustee

by the Credit Enhancer; or

 

(ii) Failure on the part of the Servicer duly to observe or

perform in any material respect any other covenants or agreements of

the Servicer set forth in the Securities or in this Servicing

Agreement, which failure, in each case, materially and adversely

affects the interests of Securityholders or the Credit Enhancer and

which continues unremedied for a period of 45 days after the date on

which written notice of such failure, requiring the same to be

remedied, and stating that such notice is a "Notice of Default"

hereunder, shall have been given to the Servicer by the Depositor, the

Issuing Entity or the Indenture Trustee or to the Servicer, the

Depositor, the Issuing Entity and the Indenture Trustee by the Credit

Enhancer; or

 

(iii) The entry against the Servicer of a decree or order by a

court or agency or supervisory authority having jurisdiction in the

premises for the appointment of a trustee, conservator, receiver or

liquidator in any insolvency, conservatorship, receivership,

readjustment of debt, marshalling of assets and liabilities or similar

proceedings, or for the winding up or liquidation of its affairs, and

the continuance of any such decree or order unstayed and in effect for

a period of 60 consecutive days; or

 

(iv) The Servicer shall voluntarily go into liquidation,

consent to the appointment of a conservator, receiver, liquidator or

similar person in any insolvency, readjustment of debt, marshalling of

assets and liabilities or similar proceedings of or relating to the

Servicer or of or relating to all or substantially all of its property,

or a decree or order of a court, agency or supervisory authority having

jurisdiction in the premises for the appointment of a conservator,

receiver, liquidator or similar person in any insolvency, readjustment

of debt, marshalling of assets and liabilities or similar proceedings,

or for the winding-up or liquidation of its affairs, shall have been

entered against the Servicer and such decree or order shall have

remained in force undischarged, unbonded or unstayed for a period of 60

days; or the Servicer shall admit in writing its inability to pay its

debts generally as they become due, file a petition to take advantage

of any applicable insolvency or reorganization statute, make an

assignment for the benefit of its creditors or voluntarily suspend

payment of its obligations; or

 

(v) Any failure by the Seller (so long as the Seller is the

Servicer) or the Servicer, as the case may be, to pay when due any

amount payable by it under the terms of the Insurance Agreement which

continues unremedied for a period of three (3) Business Days after the

date upon which written notice of such failure shall have been given to

the Seller (so long as the Seller is the Servicer) or the Servicer, as

the case may be; or

 

(vi) Failure on the part of the Seller or the Servicer to duly

perform in any material respect any covenant or agreement set forth in

the Insurance Agreement, which failure in each case materially and

adversely affects the interests of the Credit Enhancer and continues

unremedied for a period of 60 days after the date on which written

notice of such failure, requiring the same to be remedied, shall have

been given to the Depositor, the Indenture Trustee, the Seller or the

Servicer, as the case may be, by the Credit Enhancer.

 

then, and in every such case, other than that set forth in (vi) hereof, so long

as a Servicing Default shall not have been remedied by the Servicer, either the

Depositor, subject to the direction of the Indenture Trustee as pledgee of the

Mortgage Collateral, with the consent of the Credit Enhancer, or the Credit

Enhancer, by notice then given in writing to the Servicer (and to the Depositor

and the Issuing Entity if given by the Credit Enhancer) and in the case of the

event set forth in (vi) hereof, the Credit Enhancer with the consent of

Securityholders at least 51% of the aggregate Principal Balance of the Notes and

the Certificates may terminate all of the rights and obligations of the Servicer

as servicer under this Servicing Agreement other than its right to receive

servicing compensation and expenses for servicing the Mortgage Loans hereunder

during any period prior to the date of such termination and the Depositor,

subject to the direction of the Indenture Trustee as pledgee of the Mortgage

Collateral, with the consent of the Credit Enhancer, or the Credit Enhancer may

exercise any and all other remedies available at law or equity. Any such notice

to the Servicer shall also be given to each Rating Agency, the Credit Enhancer,

the Depositor and the Issuing Entity. On or after the receipt by the Servicer of

such written notice, all authority and power of the Servicer under this

Servicing Agreement, whether with respect to the Securities or the Mortgage

Loans or otherwise, shall pass to and be vested in the Depositor, subject to the

direction of the Indenture Trustee as pledgee of the Mortgage Collateral,

pursuant to and under this Section 7.01; and, without limitation, the Depositor

is hereby authorized and empowered to execute and deliver, on behalf of the

Servicer, as attorney-in-fact or otherwise, any and all documents and other

instruments, and to do or accomplish all other acts or things necessary or

appropriate to effect the purposes of such notice of termination, whether to

complete the transfer and endorsement of each Mortgage Loan and related

documents, or otherwise. The Servicer agrees to cooperate with the Depositor in

effecting the termination of the responsibilities and rights of the Servicer

hereunder, including, without limitation, the transfer to the Indenture Trustee

for the administration by it of all cash amounts relating to the Mortgage Loans

that shall at the time be held by the Servicer and to be deposited by it in the

Collection Account, or that have been deposited by the Servicer in the

Collection Account or thereafter received by the Servicer with respect to the

Mortgage Loans. All reasonable costs and expenses (including, but not limited

to, attorneys' fees) incurred in connection with amending this Servicing

Agreement to reflect such succession as Servicer pursuant to this Section 7.01

shall be paid by the predecessor Servicer (or if the predecessor Servicer is the

Indenture Trustee, the initial Servicer) upon presentation of reasonable

documentation of such costs and expenses.

 

Notwithstanding any termination of the activities of the Servicer

hereunder, the Servicer shall be entitled to receive, out of any late collection

of a payment on a Mortgage Loan which was due prior to the notice terminating

the Servicer's rights and obligations hereunder and received after such notice,

that portion to which the Servicer would have been entitled pursuant to Sections

3.03 and 3.09 as well as its Servicing Fee in respect thereof, and any other

amounts payable to the Servicer hereunder the entitlement to which arose prior

to the termination of its activities hereunder.

 

Notwithstanding the foregoing, a delay in or failure of performance

under Section 7.01(i) or under Section 7.01(ii) after the applicable grace

periods specified in such Sections, shall not constitute a Servicer Default if

such delay or failure could not be prevented by the exercise of reasonable

diligence by the Servicer and such delay or failure was caused by an act of God

or the public enemy, acts of declared or undeclared war, public disorder,

rebellion or sabotage, epidemics, landslides, lightning, fire, hurricanes,

earthquakes, floods or similar causes. The preceding sentence shall not relieve

the Servicer from using reasonable efforts to perform its respective obligations

in a timely manner in accordance with the terms of this Servicing Agreement and

the Servicer shall provide the Indenture Trustee, the Credit Enhancer and the

Securityholders with notice of such failure or delay by it, together with a

description of its efforts to so perform its obligations. The Servicer shall

immediately notify the Indenture Trustee, the Credit Enhancer and the Owner

Trustee in writing of any Servicer Default.

 

Section 7.02 INDENTURE TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR. (a) On

and after the time the Servicer receives a notice of termination pursuant to

Section 7.01 or sends a notice pursuant to Section 6.04, the Indenture Trustee

on behalf of the Noteholders shall be the successor in all respects to the

Servicer in its capacity as servicer under this Servicing Agreement and the

transactions set forth or provided for herein and shall be subject to all the

responsibilities, duties and liabilities relating thereto placed on the Servicer

by the terms and provisions hereof. Nothing in this Servicing Agreement or in

the Trust Agreement shall be construed to permit or require the Indenture

Trustee to (i) succeed to the responsibilities, duties and liabilities of the

initial Servicer in its capacity as Seller under the Mortgage Loan Purchase

Agreement, (ii) be responsible or accountable for any act or omission of the

Servicer prior to the issuance of a notice of termination hereunder, (iii)

require or obligate the Indenture Trustee, in its capacity as successor

Servicer, to purchase, repurchase or substitute any Mortgage Loan, (iv) fund any

losses on any Eligible Investment directed by any other Servicer, or (v) be

responsible for the representations and warranties of the Servicer. As

compensation therefor, the Indenture Trustee shall be entitled to such

compensation as the Servicer would have been entitled to hereunder if no such

notice of termination had been given. Notwithstanding the above, (i) if the

Indenture Trustee is unwilling to act as successor Servicer, or (ii) if the

Indenture Trustee is legally unable so to act, the Indenture Trustee on behalf

of the Mortgage Collateral holders may (in the situation described in clause

(i)) or shall (in the situation described in clause (ii)) appoint or petition a

court of competent jurisdiction to appoint any established housing and home

finance institution, bank or other mortgage loan or home equity loan servicer

having a net worth of not less than $10,000,000 as the successor to the Servicer

hereunder in the assumption of all or any part of the responsibilities, duties

or liabilities of the Servicer hereunder; provided that any such successor

Servicer shall be acceptable to the Credit Enhancer, as evidenced by the Credit

Enhancer's prior written consent which consent shall not be unreasonably

withheld and provided further that the appointment of any such successor

Servicer will not result in the qualification, reduction or withdrawal of the

ratings assigned to the Securities by the Rating Agencies. Pending appointment

of a successor to the Servicer hereunder, unless the Indenture Trustee is

prohibited by law from so acting, the Indenture Trustee shall act in such

capacity as hereinabove provided. In connection with such appointment and

assumption, the successor shall be entitled to receive compensation out of

payments on Mortgage Loans in an amount equal to the compensation which the

Servicer would otherwise have received pursuant to Section 3.09 (or such lesser

compensation as the Indenture Trustee and such successor shall agree). The

appointment of a successor Servicer shall not affect any liability of the

predecessor Servicer which may have arisen under this Servicing Agreement prior

to its termination as Servicer (including, without limitation, the obligation to

purchase Mortgage Loans pursuant to Section 3.01, to pay any deductible under an

insurance policy pursuant to Section 3.04 or to indemnify the Indenture Trustee

pursuant to Section 6.06), nor shall any successor Servicer be liable for any

acts or omissions of the predecessor Servicer or for any breach by such Servicer

of any of its representations or warranties contained herein or in any related

document or agreement. The Indenture Trustee and such successor shall take such

action, consistent with this Servicing Agreement, as shall be necessary to

effectuate any such succession.

 

(b) Any successor, including the Indenture Trustee on behalf of the

Noteholders, to the Servicer as servicer shall during the term of its service as

servicer (i) continue to service and administer the Mortgage Loans for the

benefit of the Securityholders, (ii) maintain in force a policy or policies of

insurance covering errors and omissions in the performance of its obligations as

Servicer hereunder and a fidelity bond in respect of its officers, employees and

agents to the same extent as the Servicer is so required pursuant to Section

3.13.

 

(c) Any successor Servicer, including the Indenture Trustee on behalf

of the Mortgage Collateral holders, shall not be deemed in default or to have

breached its duties hereunder if the predecessor Servicer shall fail to deliver

any required deposit to the Collection Account or otherwise cooperate with any

required servicing transfer or succession hereunder.

 

Section 7.03 NOTIFICATION TO SECURITYHOLDERS. Upon any termination or

appointment of a successor to the Servicer pursuant to this Article VII or

Section 6.04, the Indenture Trustee shall give prompt written notice thereof to

the Securityholders, the Credit Enhancer, the Depositor, the Issuing Entity and

each Rating Agency.

 

  

  

  

ARTICLE VIII

 

Miscellaneous Provisions

 

Section 8.01 AMENDMENT. This Servicing Agreement may be amended from

time to time by the parties hereto, provided that any amendment be accompanied

by a letter from the Rating Agencies that the amendment will not result in the

downgrading or withdrawal of the rating then assigned to the Securities and the

consent of the Credit Enhancer and the Indenture Trustee.

 

Section 8.02 GOVERNING LAW. THIS SERVICING 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 8.03 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 certified mail, return receipt requested, to (a) in

the case of the Servicer, [Name and Address of Servicer], (b) in the case of the

Credit Enhancer, ________________, ________, ______________, Attention:

_________________, ___________________________, (c) in the case of [Moody's,

___________, 4th Floor, 99 Church Street, New York, New York 10007], (d) in the

case of [Standard & Poor's, 26 Broadway, 15th Floor, New York, New York 10004,

Attention: Residential Mortgage Surveillance Group], (e) in the case of the

Owner Trustee, the Corporate Trust Office, and (f) in the case of the Issuing

Entity, to Opteum Mortgage Acceptance Corporation MBN Trust Series 20__-__, c/o

______________________, __________________, __________, ______________,

Attention: __________________________, with a copy to the Administrator at

______________ or, as to each party, at such other address as shall be

designated by such party in a written notice to each other party. [Any notice

required or permitted to be mailed to a Securityholder shall be given by first

class mail, postage prepaid, at the address of such Securityholder as shown in

the Register. Any notice so mailed within the time prescribed in this Servicing

Agreement shall be conclusively presumed to have been duly given, whether or not

the Securityholder receives such notice. Any notice or other document required

to be delivered or mailed by the Indenture Trustee to any Rating Agency shall be

given on a reasonable efforts basis and only as a matter of courtesy and

accommodation and the Indenture Trustee shall have no liability for failure to

deliver such notice or document to any Rating Agency.]

 

Section 8.04 SEVERABILITY OF PROVISIONS. If any one or more of the

covenants, agreements, provisions or terms of this Servicing Agreement shall be

for any reason whatsoever held invalid, then such covenants, agreements,

provisions or terms shall be deemed severable from the remaining covenants,

agreements, provisions or terms of this Servicing Agreement and shall in no way

affect the validity or enforceability of the other provisions of this Servicing

Agreement or of the Securities or the rights of the Securityholders thereof.

 

Section 8.05 THIRD-PARTY BENEFICIARIES. This Servicing Agreement will

inure to the benefit of and be binding upon the parties hereto, the

Securityholders, the Credit Enhancer, the Owner Trustee, the Indenture Trustee

and their respective successors and permitted assigns. Except as otherwise

provided in this Servicing Agreement, no other Person will have any right or

obligation hereunder.

 

Section 8.06 COUNTERPARTS. This instrument may be executed in any

number of counterparts, each of which so executed shall be deemed to be an

original, but all such counterparts shall together constitute but one and the

same instrument.

 

Section 8.07 EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article and

Section headings herein and the Table of Contents are for convenience only and

shall not affect the construction hereof.

 

Section 8.08 TERMINATION UPON PURCHASE BY THE SERVICER OR LIQUIDATION

OF ALL MORTGAGE LOANS. The respective obligations and responsibilities of the

Servicer and the Depositor created hereby shall terminate upon the last action

required to be taken by the Issuing Entity pursuant to the Trust Agreement and

by the Indenture Trustee pursuant to the Indenture following the earlier of:

 

(i) the date on or before which the Indenture or Trust

Agreement is terminated, or

 

(ii) the purchase by the Servicer from the Depositor of all

Mortgage Loans and all property acquired in respect of any Mortgage

Loan at a price equal to the greater of (a) 100% of the unpaid

Principal Balance of each Mortgage Loan, plus accrued and unpaid

interest thereon at the Weighted Average Net Mortgage Rate up to the

day preceding the Payment Date on which such amounts are to be

distributed to Securityholders, plus any amounts due and owing to the

Credit Enhancer under the Insurance Agreement and (b) the fair market

value of the Mortgage Loans as determined by two bids from competitive

participants in the adjustable home equity loan market.

 

The right of the Servicer to purchase the assets of the Depositor pursuant to

clause (ii) above is conditioned upon the Pool Balance as of the Final Scheduled

Payment Date being less than ten percent of the aggregate of the Cut-Off Date

Principal Balances of the Mortgage Loans. If such right is exercised by the

Servicer, the Servicer shall deposit the amount calculated pursuant to clause

(ii) above with the Indenture Trustee pursuant to Section 4.10 of the Indenture

and, upon the receipt of such deposit, the Indenture Trustee or relevant

Custodian shall release to the Servicer, the files pertaining to the Mortgage

Loans being purchased.

 

The Servicer, at its expense, shall prepare and deliver to the

Indenture Trustee and the Owner Trustee for execution, at the time the Mortgage

Loans are to be released to the Servicer, appropriate documents assigning each

such Mortgage Loan from the Depositor to the Servicer or the appropriate party.

 

Section 8.09 CERTAIN MATTERS AFFECTING THE INDENTURE TRUSTEE. For all

purposes of this Servicing Agreement, in the performance of any of its duties or

in the exercise of any of its powers hereunder, the Indenture Trustee shall be

subject to and entitled to the benefits of Article VI of the Indenture.

 

Section 8.10 [AUTHORITY OF THE ADMINISTRATOR. Each of the parties to

this Agreement acknowledges that the Issuing Entity and the Owner Trustee have

each appointed the Administrator to act as its agent to perform the duties and

obligations of the Issuing Entity hereunder. Unless otherwise instructed by the

Issuing Entity or the Owner Trustee, copies of all notices, requests, demands

and other documents to be delivered to the Issuing Entity or the Owner Trustee

pursuant to the terms hereof shall be delivered to the Administrator. Unless

otherwise instructed by the Issuing Entity or the Owner Trustee, all notices,

requests, demands and other documents to be executed or delivered, and any

action to be taken, by the Issuing Entity or the Owner Trustee pursuant to the

terms hereof may be executed, delivered and/or taken by the Administrator

pursuant to the Administration Agreement.]

 

  

  

  

IN WITNESS WHEREOF, the Servicer and the Depositor have caused this

Servicing Agreement to be duly executed by their respective officers or

representatives all as of the day and year first above written.

 

[NAME OF SERVICER],

as Servicer

 

By_________________________________

Title:

 

OPTEUM MORTGAGE ACCEPTANCE CORPORATION

as Depositor

 

By_________________________________

Title:

 

  

  

  

EXHIBIT A

 

MORTGAGE LOAN SCHEDULE

 

(Provided Upon Request)

 

  

  

  

EXHIBIT B

 

POWER OF ATTORNEY

 

(Provided Upon Request)

 

  

  

  

EXHIBIT C

 

CERTIFICATE PURSUANT TO SECTION 3.08

 

(Provided Upon Request)

 

  

  

  

EXHIBIT D

 

FORM OF REQUEST FOR RELEASE

 

DATE:

 

TO:

 

RE:  REQUEST FOR RELEASE OF DOCUMENTS

 

In connection with your administration of the Mortgage Collateral, we request

the release of the Mortgage File described below.

 

Servicing Agreement Dated:

Series #:

Account #:

Pool #:

Loan #:

Borrower Name(s):

Reason for Document Request: (circle one)  Mortgage Loan

Prepaid in Full

Mortgage Loan Repurchased

 

"We hereby certify that all amounts received or to be received in connection

with such payments which are required to be deposited have been or will be so

deposited as provided in the Servicing Agreement."

 

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

[Name of Servicer]

Authorized Signature

 

TO CUSTODIAN/INDENTURE TRUSTEE: Please acknowledge this request, and check off

documents being enclosed with a copy of this form. You should retain this form

for your files in accordance with the terms of the Servicing Agreement.

 

Enclosed Documents:                                                      [  ] Promissory Note

[  ] Primary Insurance Policy

[  ] Mortgage or Deed of Trust

[  ] Assignment(s) of Mortgage or

Deed of Trust

[  ] Title Insurance Policy

[  ] Other:  ___________________________

 

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

Name

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

Title

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

Date

 

  

  

  

SCHEDULE 1

 

MORTGAGE INSURANCE COMPONENT SCHEDULE

 

(Provided Upon Request)

 

  

  

  

EXHIBIT E

 

SERVICING CRITERIA TO BE ADDRESSED

IN ASSESSMENT OF COMPLIANCE

 

DEFINITIONS

Primary Servicer - transaction party having borrower contact Master Servicer -

aggregator of pool assets

Securities Administrator - waterfall calculator (may be the Indenture Trustee, or may be

the Master Servicer) Back-up Servicer - named in the transaction (in the event a

Back up Servicer becomes the Primary Servicer, follow Primary Servicer

obligations) Custodian - safe keeper of pool assets Paying Agent - distributor

of funds to ultimate investor Trustee - fiduciary of the transaction

 

Note: The definitions above describe the essential function that the party

performs, rather than the party's title. So, for example, in a particular

transaction, the trustee may perform the "paying agent" and "securities

administrator" functions, while in another transaction, the securities

administrator may perform these functions.

 

Where there are multiple checks for criteria the attesting party will identify

in their management assertion that they are attesting only to the portion of the

distribution chain they are responsible for in the related transaction

agreements.

 

KEY:  X - OBLIGATION

[X] - UNDER CONSIDERATION FOR OBLIGATION

 

  

  

  

	
Reg AB Reference

	
Servicing Criteria

	
Primary Servicer

	
Master Servicer

	
Securities Admin

	
Custodian

	
Paying Agent

	
Trustee

	  	
General Servicing Considerations

	  	  	  	  	  	  
	  	  	  	  	  	  	  	  
	
1122(d)(1)(i)

	
Policies and procedures are instituted to monitor any  performance or other triggers and

events of default in accordance

with the transaction agreements.

	
X

	
X

	
X

	  	  	
X (Sec. 9.01)

	
1122(d)(1)(ii)

	
If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party's performance and compliance with such servicing activities.

	
X

	
X

	
X

	  	  	  
	
1122(d)(1)(iii)

	
Any requirements in the

 transaction agreements to maintain a back-up servicer for the Pool  Assets are maintained.

	  	  	  	  	  	  
	
1122(d)(1)(iv)

	
A fidelity bond and errors and  omissions policy is in effect on

 the party participating in the

 servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.

	
X

	
X

	  	  	  	  
	  	
CASH COLLECTION AND ADMINISTRATION

	  	  	  	  	  	  
	
1122(d)(2)(i)

	
Payments on pool assets are deposited into the appropriate

 custodial bank accounts and

 related bank clearing accounts no more than two business days

 following receipt, or such other

 number of days specified in the transaction agreements.

	
X

	
X

	
X

	  	
X

	  
	
1122(d)(2)(ii)

	
Disbursements made via wire transfer on behalf of an obligor

 or to an investor are made only by authorized personnel.

	
X

	
X

	
X

	  	
X

	
X

	
1122(d)(2)(iii)

	
Advances of funds or guarantees regarding collections, cash flows

 or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.

	
X

	
X

	
X

	  	
X

	
X (Sec. 8.01)

	
1122(d)(2)(iv)

	
The related accounts for the transaction, such as cash reserve

 accounts or accounts established

 as a form of over collateralization, are separately  maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.

	  	
[X]

	  	  	  	
X

	
1122(d)(2)(v)

	
Each custodial account is maintained at a federally insured

 depository institution as set

 forth in the transaction

 agreements. For purposes of this

 criterion, "federally insured

 depository institution" with

 respect to a foreign financial

 institution means a foreign

 financial institution that meets

 the requirements of Rule

 13k-1(b)(1) of the Securities Exchange Act.

	
X

	
X

	
X

	  	  	
X

	
1122(d)(2)(vi)

	
Unissued checks are safeguarded so as to prevent unauthorized access.

	
X

	  	  	  	  	  
	
1122(d)(2)(vii)

	
Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are (A)

 mathematically accurate; (B)

 prepared within 30 calendar days

 after the bank statement cutoff

 date, or such other number of days specified in the transaction

 agreements; (C) reviewed and

 approved by someone other than the person who prepared the

 reconciliation; and (D) contain

 explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such

 other number of days specified in  the transaction agreements.

	
X

	
X

	
X

	  	
X

	
X

	  	
INVESTOR REMITTANCES AND REPORTING

	  	  	  	  	  	  
	
1122(d)(3)(i)

	
Reports to investors, including those to be filed with the

 Commission, are maintained in

 accordance with the transaction

 agreements and applicable

 Commission requirements.

 Specifically, such reports (A) are prepared in accordance with

 timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in

 accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by its rules and regulations; and (D) agree with investors' or the trustee's records as to the total unpaid principal balance and number of Pool Assets serviced by the Servicer.

	
X

	
X

	
X

	  	  	
X

	
1122(d)(3)(ii)

	
Amounts due to investors are allocated and remitted in

 accordance with timeframes,

 distribution priority and other

 terms set forth in the transaction agreements.

	
X

	
X

	
X

	  	
X

	
X

	
1122(d)(3)(iii)

	
Disbursements made to an investor are posted within two business

 days to the Servicer's investor

 records, or such other number of

 days specified in the transaction agreements.

	
X

	
X

	
X

	  	
X

	
X

	
1122(d)(3)(iv)

	
Amounts remitted to investors per the investor reports agree with

 cancelled checks, or other form of payment, or custodial bank statements.

	
X

	
X

	
X

	  	
X

	
X

	  	
POOL ASSET ADMINISTRATION

	  	  	  	  	  	  
	
1122(d)(4)(i)

	
Collateral or security on pool assets is maintained as required

 by the transaction agreements or

related pool asset documents.

	
X

	
X

	  	  	  	  
	
1122(d)(4)(ii)

	
Pool assets and related documents are safeguarded as required by the transaction agreements.

	
X

	
X

	  	  	  	  
	
1122(d)(4)(iii)

	
Any additions, removals or substitutions to the asset pool

 are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.

	
X

	
X

	  	  	  	
X

	
1122(d)(4)(iv)

	
Payments on pool assets, including any payoffs, made in accordance with the related pool asset documents are posted to the

 Servicer's obligor records

 maintained no more than two

 business days after receipt, or

 such other number of days

 specified in the transaction

 agreements, and allocated to

 principal, interest or other items (e.g., escrow) in accordance with the related pool asset documents.

	
X

	  	  	  	  	  
	
1122(d)(4)(v)

	
The Servicer's records regarding the pool assets agree with the

 Servicer's records with respect to an obligor's unpaid principal

balance.

	
X

	  	  	  	  	  
	
1122(d)(4)(vi)

	
Changes with respect to the terms or status of an obligor's pool

 assets (e.g., loan modifications

 or re-agings) are made, reviewed

 and approved by authorized

 personnel in accordance with the

 transaction agreements and related pool asset documents.

	
X

	
X

	  	  	  	  
	
1122(d)(4)(vii)

	
Loss mitigation or recovery actions (e.g., forbearance plans,

 modifications and deeds in lieu of foreclosure, foreclosures and

 repossessions, as applicable) are initiated, conducted and concluded in accordance with the timeframes or other requirements established by the transaction agreements.

	
X

	
X

	  	  	  	  
	
1122(d)(4)(viii)

	
Records documenting collection efforts are maintained during the

 period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity's activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).

	
X

	  	  	  	  	  
	
1122(d)(4)(ix)

	
Adjustments to interest rates or rates of return for pool assets

 with variable rates are computed

 based on the related pool asset

documents.

	
X

	
X

	  	  	  	  
	
1122(d)(4)(x)

	
Regarding any funds held in trust for an obligor (such as escrow

 accounts): (A) such funds are

 analyzed, in accordance with the

 obligor's pool asset documents, on at least an annual basis, or such other period specified in the transaction agreements; (B)

 interest on such funds is paid, or credited, to obligors in

 accordance with applicable pool

 asset documents and state laws;

 and (C) such funds are returned to the obligor within 30 calendar

 days of full repayment of the

 related pool assets, or such other number of days specified in the  transaction agreements.

	
X

	  	  	  	  	  
	
1122(d)(4)(xi)

	
Payments made on behalf of an obligor (such as tax or insurance

 payments) are made on or before

 the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in  the transaction agreements.

	
X

	  	  	  	  	  
	
1122(d)(4)(xii)

	
Any late payment penalties in connection with any payment to be

 made on behalf of an obligor are

 paid from the Servicer's funds and not charged to the obligor, unless the late payment was due to the  obligor's error or omission.

	
X

	  	  	  	  	  
	
1122(d)(4)(xiii)

	
Disbursements made on behalf of an obligor are posted within two

 business days to the obligor's

 records maintained by the servicer, or such other number of days specified in the transaction

 agreements.

	
X

	  	  	  	  	  
	
1122(d)(4)(xiv)

	
Delinquencies, charge-offs and uncollectible accounts are

 recognized and recorded in

 accordance with the transaction

agreements.

	  	
X

	
X

	  	  	
X

	
1122(d)(4)(xv)

	
Any external enhancement or other support, identified in Item

1114(a)(1) through (3) or Item

1115 of Regulation AB, is

maintained as set forth in the

transaction agreements.

	  	  	
X

	  	  	
X

  

  

  

EXHIBIT F

 

Form of Section 404 Notice

NOTICE OF SALE OF OWNERSHIP OF MORTGAGE LOAN

Under federal law, borrowers are required to be notified in writing whenever ownership of a mortgage loan secured by their principal dwelling is sold, transferred or assigned (collectively, “sold”) to a new owner.  This Notice is to inform you that the prior owner of your loan has sold your loan (described below) to the new owner identified below on _________, 20__.

**NOTE: The new owner identified below is not the servicer of your loan.  The servicer (identified below) acts on behalf of the new owner to handle the ongoing administration of your loan, including the collection of mortgage payments.  Please continue to send your mortgage payments as directed by the servicer, and NOT to the new owner.  Payments sent to the new owner instead of the servicer may result in late charges on your loan and your account becoming past due.  Neither the new owner nor the servicer is responsible for late charges or other consequences of any misdirected payment.

SHOULD YOU HAVE ANY QUESTIONS REGARDING YOUR LOAN, PLEASE CONTACT THE SERVICER USING THE CONTACT INFORMATION SET FORTH BELOW.  The servicer is authorized to handle routine inquiries and requests regarding your loan and, if necessary, to inform the new owner of your request and communicate to you any decision with respect to such request. **

Please note that the sale of your loan to the new owner may also result in a change of servicer.  If this occurs, you will receive a separate notice, required under federal law, providing information regarding the new servicer.

LOAN INFORMATION

Date of Loan:

Original Amount of Loan:

Date Your Loan was Transferred to the New Owner:

Address of Mortgaged Property:

SERVICER INFORMATION

Name:                                                      [_______]

Mailing Address:                                                                [_______]

Telephone Number (Toll free): [_______]

Website:                                                                [_______]

Scope of responsibilities: The servicer is responsible for ongoing administration of your loan, including receipt of legal notices, receipt and processing of payments, resolution of payment-related issues, and response to any other inquiries you may have regarding your loan.

NEW OWNER INFORMATION

Please be advised that all questions involving the administration of your loan (including questions related to payments, deferrals, modifications or foreclosures) should be directed to the servicer at the number above and not to the new owner.  The new owner does not have access to information relating to the administration of your loan, and will not be able to most answer loan-related questions.

Name:                                                      [_______]

Mailing Address:                                                                [_______]

Telephone Number (Toll free): [_______]

Scope of responsibilities: As new owner, the above-named trust holds legal title to your loan.  The above-named trustee, on behalf of the new owner, is authorized to receive legal notices and to exercise (or cause an agent on its behalf to exercise) certain rights of ownership with respect to your loan.

The transfer of the lien associated with your loan is currently recorded, or in the future may be recorded, in the public records of the local County Recorder’s office for the county where your property is located.  If checked •, ownership of your loan is also recorded on the registry of the Mortgage Electronic Registrations System at [_________].

The rights and obligations of the new owner, and consequently its authority to respond favorably to your requests or inquiries, may be limited by the terms of one or more contracts related to the securitization of your loan.

  

  

  

EXHIBIT G

FORM OF CERTIFICATION FOR NRSROs AND DEPOSITOR

[Date]

[Rule 17g-5 Information Provider]

[Address]

Attention:  Opteum Mortgage Acceptance Corporation, Mortgage-Backed

                  Notes, Series 20__-_, Class __

In accordance with the requirements for obtaining certain information pursuant to the Indenture, dated as of ___________ 1, 20__ (the “Indenture”), by and between Opteum Mortgage Acceptance Corporation MBN Trust Series 20__ - __, as Issuing entity, [Indenture Trustee], as Indenture Trustee, and the Servicing Agreement, dated as of ___________ 1, 20__ (the “Servicing Agreement”), by and between Opteum Mortgage Acceptance Corporation, as Depositor, and [Servicer], as Servicer], as [_______] with respect to the above-referenced notes (the “Notes”), the undersigned hereby certifies and agrees as follows:

With respect to any Nationally Recognized Statistical Rating Organization (“NRSRO”):

1.           The undersigned, an NRSRO, has provided the Depositor with the appropriate certifications under Exchange Act Rule 17g-5(e).

2.           The undersigned has access to the Depositor's 17g-5 website, and any confidentiality agreement applicable to the undersigned with respect to information obtained from the Depositor's 17g-5 website shall also be applicable to information obtained from the Rule 17g-5 Website.

3.           The undersigned shall be deemed to have recertified to the provisions herein each time it accesses any information on the Rule 17g-5 Website maintained by the [________].

With respect to the Depositor:

1.           The undersigned is the Depositor under the Servicing Agreement.

Capitalized terms used but not defined herein shall have the respective meanings assigned thereto in the Indenture.

BY ITS CERTIFICATION HEREOF, the undersigned has made the representations above and shall be deemed to have caused its name to be signed hereto by its duly authorized signatory, as of the date certified.omacs320130104x43.htm

EXHIBIT 4.3

                        OPTEUM MORTGAGE ACCEPTANCE CORPORATION

                                  as Depositor

                                       and

                          _____________________________

                                as Owner Trustee

                          _____________________________

                                 TRUST AGREEMENT

                          Dated as of ________________

                          _____________________________

                    $_________ Mortgage-Backed Certificates,

                                 SERIES 20__-__

  

  

  

TABLE OF CONTENTS

SECTION

ARTICLE I

DEFINITIONS

Section 1.01  Definitions........

Section 1.02  Other Definitional Provisions......................

ARTICLE II

ORGANIZATION

Section 2.01  Name...................................................................

Section 2.02  Office......................

Section 2.03  Purposes and Powers......................

Section 2.04  Appointment of Owner Trustee......................

Section 2.05  Initial Capital Contribution of Owner Trust Estate

Section 2.06  Declaration of Trust........

Section 2.07  Liability of the Holder of the Certificates......................

Section 2.08  Title to Trust Property...............

Section 2.09  Situs of Trust.........................................

Section 2.10  Representations and Warranties of the Depositor.....................

Section 2.11  Payment of Trust Fees......................

ARTICLE III

CONVEYANCE OF THE MORTGAGE COLLATERAL; CERTIFICATES

Section 3.01  Conveyance of the Mortgage Collateral.........................

Section 3.02  Initial Ownership............................

Section 3.03  The Certificates......................

Section 3.04  Authentication of Certificates.......................................

Section 3.05  Registration of and Limitations on Transfer and Exchange of Certificates

Section 3.06  Mutilated, Destroyed, Lost or Stolen Certificates......................

Section 3.07  Persons Deemed Certificateholders......................

Section 3.08  Access to List of Certificateholders' Names and Addresses............

Section 3.09  Maintenance of Office or Agency ......................

Section 3.10  Certificate Paying Agent.......................

Section 3.11  Ownership......................

ARTICLE IV

AUTHORITY AND DUTIES OF OWNER TRUSTEE

Section 4.01  General Authority..................

Section 4.02  General Duties......................

Section 4.03  Action Upon Instruction.....................

Section 4.04  No Duties Except as Specified under Specified Documents or in Instructions

Section 4.05  Restrictions......................

Section 4.06  Prior Notice to Certificateholders with Respect to Certain Matters.......

Section 4.07  Action by Certificateholders with Respect to Certain Matters......

Section 4.08  Action by Certificateholders with Respect to Bankruptcy.......

Section 4.09  Restrictions on Certificateholders' Power ..........

Section 4.10  Majority Control.......................

  

  

  

ARTICLE V

APPLICATION OF TRUST FUNDS

Section 5.01  Distributions......................

Section 5.02  Method of Payment......................

Section 5.03  Signature on Returns...........................................

Section 5.04  Statements to Certificateholders..................

Section 5.05  Tax Reporting; Tax Elections......................

ARTICLE VI

CONCERNING THE OWNER TRUSTEE

Section 6.01  Acceptance of Trusts and Duties....................

Section 6.02  Furnishing of Documents............................

Section 6.03  Representations and Warranties..............................

Section 6.04  Reliance; Advice of Counsel.......................

Section 6.05  Not Acting in Individual Capacity.....................

Section 6.06  Owner Trustee Not Liable for Certificates or Related Documents

Section 6.07  Owner Trustee May Own Certificates and Bonds......................

ARTICLE VII

COMPENSATION OF OWNER TRUSTEE

Section 7.01  Owner Trustee's Fees and Expenses......................

Section 7.02  Indemnification........................................

ARTICLE VIII

TERMINATION OF TRUST AGREEMENT

Section 8.01  Termination of Trust Agreement.....................................

Section 8.02  Dissolution upon Bankruptcy of the Holder of the Designated Certificate

ARTICLE IX

SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

Section 9.01  Eligibility Requirements for Owner Trustee......................

Section 9.02  Replacement of Owner Trustee......................

Section 9.03  Successor Owner Trustee.............................

Section 9.04  Merger or Consolidation of Owner Trustee.................

Section 9.05  Appointment of Co-trustee or Separate Trustee......................

ARTICLE X

MISCELLANEOUS

Section 10.01 Amendments......................

Section 10.02 No Legal Title to Owner Trust Estate.................................

Section 10.03 Limitations on Rights of Others............

Section 10.04 Notices..........................................

Section 10.05 Severability.............

Section 10.06 Separate Counterparts...............................

Section 10.07 Successors and Assigns......

Section 10.08 [No Petition................................

Section 10.09 No Recourse......................................................

Section 10.10 Headings......................

Section 10.11 Governing Law.......................

Section 10.12 Integration...........................................

  

  

  

EXHIBIT

Exhibit A - Form of Certificate......................

Exhibit B - Certificate of Trust of Opteum Mortgage Acceptance Corporation MBN Trust...

Exhibit C - Form of Certificate of Non-Foreign Status......................

Exhibit D - Form of Investment Letter.........................

Exhibit E - Form of Investment Letter for Certificates..............................

  

  

  

         This Trust Agreement, dated as of ________________ (as amended from

time to time, this "Trust Agreement"), between Opteum Mortgage Acceptance Corporation,

a Delaware corporation, as Depositor (the "Depositor") and

______________________, a Delaware ___________________, as Owner Trustee (the

"Owner Trustee"),

                                WITNESSETH THAT:

         In consideration of the mutual agreements herein contained, the

Depositor and the Owner Trustee agree as follows:

  

  

  

                                    ARTICLE I

DEFINITIONS

         Section 1.01 DEFINITIONS. For all purposes of this Trust Agreement,

except as otherwise expressly provided herein or unless the context otherwise

requires, capitalized terms not otherwise defined herein shall have the meanings

assigned to such terms in the Indenture. All other capitalized terms used herein

shall have the meanings specified herein.

         Section 1.02 Other Definitional Provisions.

         (a) All terms defined in this Trust Agreement shall have the defined

meanings when used in any certificate or other document made or delivered

pursuant hereto unless otherwise defined therein.

         (b) As used in this Trust Agreement and in any certificate or other

document made or delivered pursuant hereto or thereto, accounting terms not

defined in this Trust Agreement or in any such certificate or other document,

and accounting terms partly defined in this Trust Agreement or in any such

certificate or other document to the extent not defined, shall have the

respective meanings given to them under generally accepted accounting

principles. To the extent that the definitions of accounting terms in this Trust

Agreement or in any such certificate or other document are inconsistent with the

meanings of such terms under generally accepted accounting principles, the

definitions contained in this Trust Agreement or in any such certificate or

other document shall control.

         (c) The words "hereof," "herein," "hereunder" and words of similar

import when used in this Trust Agreement shall refer to this Trust Agreement as

a whole and not to any particular provision of this Trust Agreement; Section and

Exhibit references contained in this Trust Agreement are references to Sections

and Exhibits in or to this Trust Agreement unless otherwise specified; and the

term "including" shall mean "including without limitation".

         (d) The definitions contained in this Trust Agreement are applicable to

the singular as well as the plural forms of such terms and to the masculine as

well as to the feminine and neuter genders of such terms.

         (e) Any agreement, instrument or statute defined or referred to herein

or in any instrument or certificate delivered in connection herewith means such

agreement, instrument or statute as from time to time amended, modified or

supplemented and includes (in the case of agreements or instruments) references

to all attachments thereto and instruments incorporated therein; references to a

Person are also to its permitted successors and assigns.

  

  

  

                                   ARTICLE II

                                  ORGANIZATION

         Section 2.01 NAME. The trust created hereby (the "Trust") shall be

known as "Opteum Mortgage Acceptance Corporation MBN Trust Series 20__-_," in which

name the Owner Trustee may conduct the business of the Trust, make and execute

contracts and other instruments on behalf of the Trust and sue and be sued.

         Section 2.02 OFFICE. The office of the Trust shall be in care of the

Owner Trustee at the Corporate Trust Office or at such other address in Delaware

as the Owner Trustee may designate by written notice to the Certificateholders

and the Depositor.

         Section 2.03 PURPOSES AND POWERS. The purpose of the Trust is to engage

in the following activities:

                  (i) to issue the Bonds pursuant to the Indenture and the

         Certificates pursuant to this Trust Agreement and to sell the Bonds and

         the Certificates;

                  (ii) to pay the organizational, start-up and transactional

         expenses of the Trust;

                  (iii) to assign, grant, transfer, pledge and convey the

         Mortgage Collateral pursuant to the Indenture and to hold, manage and

         distribute to the Certificateholders pursuant to Section 5.01 any

         portion of the Mortgage Collateral released from the Lien of, and

         remitted to the Trust pursuant to the Indenture;

                  (iv) to enter into and perform its obligations under the Basic

         Documents to which it is to be a party;

                  (v) to engage in those activities, including entering into

         agreements, that are necessary, suitable or convenient to accomplish

         the foregoing or are incidental thereto or connected therewith,

         including, without limitation, to accept additional contributions of

         equity that are not subject to the Lien of the Indenture; and

                  (vi) subject to compliance with the Basic Documents, to engage

         in such other activities as may be required in connection with

         conservation of the Owner Trust Estate and the making of distributions

         to the Certificateholders and the Bondholders.

The Trust is hereby authorized to engage in the foregoing activities. The Trust

shall not engage in any activity other than in connection with the foregoing or

other than as required or authorized by the terms of this Trust Agreement or the

Basic Documents [while any Bond is outstanding and without regard to the Bonds

and] [without the consent of __% of the Certificateholders].

         Section 2.04 APPOINTMENT OF OWNER TRUSTEE. The Depositor hereby

appoints the Owner Trustee as trustee of the Trust effective as of the date

hereof, to have all the rights, powers and duties set forth herein.

         Section 2.05 INITIAL CAPITAL CONTRIBUTION OF OWNER TRUST ESTATE. The

Depositor hereby sells, assigns, transfers, conveys and sets over to the Trust,

as of the date hereof, the sum of $1.00. The Owner Trustee hereby acknowledges

receipt in trust from the Depositor, as of the date hereof, of the foregoing

contribution, which shall constitute the initial corpus of the Trust and shall

be deposited in the Certificate Distribution Account. The Owner Trustee also

acknowledges on behalf of the trust receipt of the Mortgage Collateral and a

Surety Bond assigned to the Trust pursuant to Section 3.01, which shall

constitute the Owner Trust Estate.

         Section 2.06 DECLARATION OF TRUST. The Owner Trustee hereby declares

that it shall hold the Owner Trust Estate in trust upon and subject to the

conditions set forth herein for the use and benefit of the Certificateholders,

subject to the obligations of the Trust under the Basic Documents. It is the

intention of the parties hereto that the Trust constitute a statutory trust

under the Statutory Trust Statute and that this Trust Agreement constitute the

governing instrument of such statutory trust. It is the intention of the parties

hereto that, for income and franchise tax purposes, the Trust shall be treated

as a corporation, with the assets of the corporation being the Owner Trust

Estate, the [equity interest in the corporation] being the Certificates and the

Bonds being debt of the corporation and the provisions of this Agreement shall

be interpreted to further this intention. Except as otherwise provided in this

Trust Agreement, the rights of the Certificateholders will be those of [equity

owners of the Trust] formed under the Delaware [corporation law]. The parties

agree that, unless otherwise required by appropriate tax authorities, the Trust

will file or cause to be filed annual or other necessary returns, reports and

other forms consistent with the characterization of the Trust as a corporation

for such tax purposes. Effective as of the date hereof, the Owner Trustee shall

have all rights, powers and duties set forth herein and in the Statutory Trust

Statute with respect to accomplishing the purposes of the Trust.

         Section 2.07 LIABILITY OF THE HOLDER OF THE CERTIFICATES. (a) The

Holders of the Certificates shall be liable directly to and shall indemnify any

injured party for all losses, claims, damages, liabilities and expenses of the

Trust (including Expenses, to the extent not paid out of the Owner Trust Estate)

to the extent that the Holders of the Certificates would be liable if the Trust

were a corporation under [Delaware corporate law]; provided, however, that the

Holders of the Certificates shall not be liable for payments required to be made

on the Bonds or the Certificates, or for any losses incurred by a

Certificateholder in the capacity of an investor in the Certificates or a

Bondholder in the capacity of an investor in the Bonds. The Holders of the

Certificates shall be liable for any entity level taxes imposed on the Trust. In

addition, any third party creditors of the Trust, including the Credit Enhancer

(other than in connection with the obligations described in the preceding

sentence for which the Holders of the Certificates shall not be liable) shall be

deemed third party beneficiaries of this paragraph. The obligations of the

Holders of the Certificates under this paragraph shall be evidenced by the

Certificates.

         (b) Subject to subsection (a) above, the Certificateholders shall be

entitled to the same limitation of personal liability extended to stockholders

of private corporations for profit organized under the General Corporation Law

of the State of Delaware.

         Section 2.08 TITLE TO TRUST PROPERTY. Legal title to the Owner Trust

Estate shall be vested at all times in the Trust as a separate legal entity

except where applicable law in any jurisdiction requires title to any part of

the Owner Trust Estate to be vested in a trustee or trustees, in which case

title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a

separate trustee, as the case may be.

         Section 2.09 SITUS OF TRUST. The Trust will be located and administered

in the State of Delaware. All bank accounts maintained by the Owner Trustee on

behalf of the Trust shall be located in the State of Delaware or the State of

________. The Trust shall not have any employees in any state other than

Delaware; provided, however, that nothing herein shall restrict or prohibit the

Owner Trustee from having employees within or without the State of Delaware or

taking actions outside the State of Delaware in order to comply with Section

2.03. Payments will be received by the Trust only in Delaware, New York or

________, and payments will be made by the Trust only from Delaware, New York or

________. The only office of the Trust will be at the Corporate Trust Office in

Delaware.

         Section 2.10 REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR. The

Depositor hereby represents and warrants to the Owner Trustee that:

                  (i) The Depositor is duly organized and validly existing as a

         corporation in good standing under the laws of the State of Delaware,

         with power and authority to own its properties and to conduct its

         business as such properties are currently owned and such business is

         presently conducted.

                  (ii) The Depositor is duly qualified to do business as a

         foreign corporation in good standing and has obtained all necessary

         licenses and approvals in all jurisdictions in which the ownership or

         lease of its property or the conduct of its business shall require such

         qualifications and in which the failure to so qualify would have a

         material adverse effect on the business, properties, assets or

         condition (financial or other) of the Depositor.

                  (iii) The Depositor has the power and authority to execute and

         deliver this Trust Agreement and to carry out its terms; the Depositor

         has full power and authority to sell and assign the property to be sold

         and assigned to and deposited with the Trust as part of the Trust and

         the Depositor has duly authorized such sale and assignment and deposit

         to the Trust by all necessary corporate action; and the execution,

         delivery and performance of this Trust Agreement have been duly

         authorized by the Depositor by all necessary corporate action.

                  (iv) The consummation of the transactions contemplated by this

         Trust Agreement and the fulfillment of the terms hereof do not conflict

         with, result in any breach of any of the terms and provisions of, or

         constitute (with or without notice or lapse of time) a default under,

         the articles of incorporation or bylaws of the Depositor, or any

         indenture, agreement or other instrument to which the Depositor is a

         party or by which it is bound; nor result in the creation or imposition

         of any Lien upon any of its properties pursuant to the terms of any

         such indenture, agreement or other instrument (other than pursuant to

         the Basic Documents); nor violate any law or, to the best of the

         Depositor's knowledge, any order, rule or regulation applicable to the

         Depositor of any court or of any federal or state regulatory body,

         administrative agency or other governmental instrumentality having

         jurisdiction over the Depositor or its properties.

        Section 2.11 PAYMENT OF TRUST FEES. The Owner Trustee shall cause the

Administrator (i) to pay the Trust's fees and expenses incurred with respect to

the performance of the Trust's duties under the Indenture from amounts received

pursuant to Section 3.05(x) under the Indenture and (ii) to notify the

Certificate Paying Agent of such fees and expenses incurred thereunder.

  

  

  

                                  ARTICLE III

               CONVEYANCE OF THE MORTGAGE COLLATERAL; CERTIFICATES

         Section 3.01 CONVEYANCE OF THE MORTGAGE COLLATERAL. The Depositor,

concurrently with the execution and delivery hereof, does hereby transfer,

convey, sell and assign to the Trust, on behalf of the Holders of the Bonds and

the Certificates and the Credit Enhancer, without recourse, all its right, title

and interest in and to the Mortgage Collateral. The Depositor will also provide

the Trust with a Surety Bond.

         The parties hereto intend that the transaction set forth herein be a

sale by the Depositor to the Trust of all of its right, title and interest in

and to the Mortgage Collateral. In the event that the transaction set forth

herein is not deemed to be a sale, the Depositor hereby grants to the Trust a

security interest in all of its right, title and interest in, to and under the

Owner Trust Estate, all distributions thereon and all proceeds thereof; and this

Trust Agreement shall constitute a security agreement under applicable law.

         Section 3.02 INITIAL OWNERSHIP. Upon the formation of the Trust by the

contribution by the Depositor pursuant to Section 2.05 and until the conveyance

of the Mortgage Collateral pursuant to Section 3.01 and the issuance of the

Certificates, the Depositor shall be the sole Certificateholder.

         Section 3.03 THE CERTIFICATES. The Certificates shall be issued in

minimum denominations of $[250,000] and in integral multiples of $10,000 in

excess thereof; except for one Certificate that may not be in an integral

multiple of $10,000; provided, however, that the Designated Certificate issued

pursuant to Section 3.11 may be issued in the amount of $_________. The

Certificates shall be executed on behalf of the Trust by manual or facsimile

signature of an authorized officer of the Owner Trustee and authenticated in the

manner provided in Section 3.04. Certificates bearing the manual or facsimile

signatures of individuals who were, at the time when such signatures shall have

been affixed, authorized to sign on behalf of the Trust, shall be validly issued

and entitled to the benefit of this Trust Agreement, notwithstanding that such

individuals or any of them shall have ceased to be so authorized prior to the

authentication and delivery of such Certificates or did not hold such offices at

the date of authentication and delivery of such Certificates. A Person shall

become a Certificateholder and shall be entitled to the rights and subject to

the obligations of a Certificateholder hereunder upon such Person's acceptance

of a Certificate duly registered in such Person's name, pursuant to Section

3.05.

         A transferee of a Certificate shall become a Certificateholder and

shall be entitled to the rights and subject to the obligations of a

Certificateholder hereunder upon such transferee's acceptance of a Certificate

duly registered in such transferee's name pursuant to and upon satisfaction of

the conditions set forth in Section 3.05.

         Section 3.04 AUTHENTICATION OF CERTIFICATES. Concurrently with the

acquisition of the Mortgage Collateral by the Trust, the Owner Trustee shall

cause the Certificates in an aggregate principal amount equal to the Initial

Principal Balance of the Certificates to be executed on behalf of the Trust,

authenticated and delivered to or upon the written order of the Depositor,

signed by its chairman of the board, its president or any vice president,

without further corporate action by the Depositor, in authorized denominations.

No Certificate shall entitle its holder to any benefit under this Trust

Agreement or be valid for any purpose unless there shall appear on such

Certificate a certificate of authentication substantially in the form set forth

in Exhibit A, executed by the Owner Trustee or ____________________, by manual

signature; such authentication shall constitute conclusive evidence that such

Certificate shall have been duly authenticated and delivered hereunder. All

Certificates shall be dated the date of their authentication.

         Section 3.05 REGISTRATION OF AND LIMITATIONS ON TRANSFER AND EXCHANGE

OF CERTIFICATES. The Certificate Registrar shall keep or cause to be kept, at

the office or agency maintained pursuant to Section 3.09, a Certificate Register

in which, subject to such reasonable regulations as it may prescribe, the [Owner

Trustee] shall provide for the registration of Certificates and of transfers and

exchanges of Certificates as herein provided. _____________________________

shall be the initial Certificate Registrar. If the Certificate Registrar resigns

or is removed, the Owner Trustee shall appoint a successor Certificate

Registrar.

         Subject to satisfaction of the conditions set forth below and to the

provisions of Section 3.11 with respect to the Designated Certificate, upon

surrender for registration of transfer of any Certificate at the office or

agency maintained pursuant to Section 3.09, the Owner Trustee shall execute,

authenticate and deliver (or shall cause __________________________________ as

its authenticating agent to authenticate and deliver) in the name of the

designated transferee or transferees, one or more new Certificates in authorized

denominations of a like aggregate amount dated the date of authentication by the

Owner Trustee or any authenticating agent. At the option of a Holder,

Certificates may be exchanged for other Certificates of authorized denominations

of a like aggregate amount upon surrender of the Certificates to be exchanged at

the office or agency maintained pursuant to Section 3.09.

         Every Certificate presented or surrendered for registration of transfer

or exchange shall be accompanied by a written instrument of transfer in form

satisfactory to the Certificate Registrar duly executed by the Holder or such

Holder's attorney duly authorized in writing. Each Certificate surrendered for

registration of transfer or exchange shall be cancelled and subsequently

disposed of by the Certificate Registrar in accordance with its customary

practice.

         No service charge shall be made for any registration of transfer or

exchange of Certificates, but the Owner Trustee or the Certificate Registrar may

require payment of a sum sufficient to cover any tax or governmental charge that

may be imposed in connection with any transfer or exchange of Certificates.

         No Person shall become a Certificateholder until it shall establish its

non-foreign status by submitting to the Certificate Paying Agent an IRS Form W-9

and the Certificate of Non-Foreign Status set forth in Exhibit C hereto.

         No transfer of a Certificate shall be made unless such transfer is

exempt from the registration requirements of the Securities Act and any

applicable state securities laws or is made in accordance with said Act and

laws. In the event of any such transfer, the Certificate Registrar or the

Depositor shall prior to such transfer require the transferee to execute (i) (a)

an investment letter (in substantially the form attached hereto as Exhibit D) in

form and substance reasonably satisfactory to the Certificate Registrar and the

Depositor certifying to the Trust, the Owner Trustee, the Certificate Registrar

and the Depositor that such transferee is a "qualified institutional buyer"

under Rule 144A under the Securities Act, or (b) solely with respect to the

Designated Certificate, an investment letter (in substantially the form attached

hereto as Exhibit E), acceptable to and in form and substance reasonably

satisfactory to the Certificate Registrar and the Depositor, which investment

letters shall not be an expense of the Trust, the Owner Trustee, the Certificate

Registrar, the Servicer or the Depositor and (ii) the Certificate of Non-Foreign

Status (in substantially the form attached hereto as Exhibit C) acceptable to

and in form and substance reasonably satisfactory to the Certificate Registrar

and the Depositor, which certificate shall not be an expense of the Trust, the

Owner Trustee, the Certificate Registrar or the Depositor. The Holder of a

Certificate desiring to effect such transfer shall, and does hereby agree to,

indemnify the Trust, the Owner Trustee, the Certificate Registrar, the Servicer

and the Depositor against any liability that may result if the transfer is not

so exempt or is not made in accordance with such federal and state laws.

         No transfer of a Certificate shall be made unless the Certificate

Registrar shall have received either (i) a representation letter from the

proposed transferee of such Certificate to the effect that such proposed

transferee is not an employee benefit plan subject to the fiduciary

responsibility provisions of ERISA, or Section 4975 of the Code, or a Person

acting on behalf of any such plan or using the assets of any such plan, which

representation letter shall not be an expense of the Trust, Owner Trustee, the

Certificate Registrar, the Servicer or the Depositor or (ii) in the case of any

such certificate presented for registration in the name of an employee benefit

plan subject to the fiduciary responsibility provisions of ERISA, or Section

4975 of the Code (or comparable provisions of any subsequent enactments), or a

trustee of any such plan, or any other Person who is using the assets of any

such plan to effect such acquisition, an Opinion of Counsel, in form and

substance reasonably satisfactory to, and addressed and delivered to, the Trust,

the Certificate Registrar and the Depositor, to the effect that the purchase or

holding of such Certificate will not result in the assets of the Owner Trust

Estate being deemed to be "plan assets" and subject to the fiduciary

responsibility provisions of ERISA or the prohibited transaction provisions of

the Code, will not constitute or result in a prohibited transaction within the

meaning of Section 406 or Section 407 of ERISA or Section 4975 of the Code, and

will not subject the Trust, the Owner Trustee, the Certificate Registrar or the

Depositor to any obligation or liability (including obligations or liabilities

under ERISA or Section 4975 of the Code) in addition to those explicitly

undertaken in this Trust Agreement which Opinion of Counsel shall not be an

expense of the Trust, the Owner Trustee, the Certificate Registrar or Depositor.

         Section 3.06 MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES. If (a)

any mutilated Certificate shall be surrendered to the Certificate Registrar, or

if the Certificate Registrar shall receive evidence to its satisfaction of the

destruction, loss or theft of any Certificate and (b) there shall be delivered

to the Certificate Registrar and the Owner Trustee such security or indemnity as

may be required by them to save each of them harmless, then in the absence of

notice to the Certificate Registrar or the Owner Trustee that such Certificate

has been acquired by a bona fide purchaser, the Owner Trustee shall execute on

behalf of the Trust and the Owner Trustee or ________________, as the Trust's

authenticating agent, shall authenticate and deliver, in exchange for or in lieu

of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate

of like tenor and denomination. In connection with the issuance of any new

Certificate under this Section 3.06, the Owner Trustee or the Certificate

Registrar may require the payment of a sum sufficient to cover any tax or other

governmental charge that may be imposed in connection therewith. Any duplicate

Certificate issued pursuant to this Section 3.06 shall constitute conclusive

evidence of ownership in the Trust, as if originally issued, whether or not the

lost, stolen or destroyed Certificate shall be found at any time.

         Section 3.07 PERSONS DEEMED CERTIFICATEHOLDERS. Prior to due

presentation of a Certificate for registration of transfer, the Owner Trustee,

the Certificate Registrar or any Certificate Paying Agent may treat the Person

in whose name any Certificate is registered in the Certificate Register as the

owner of such Certificate for the purpose of receiving distributions pursuant to

Section 5.02 and for all other purposes whatsoever, and none of the Trust, the

Owner Trustee, the Certificate Registrar or any Paying Agent shall be bound by

any notice to the contrary.

         Section 3.08 ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND ADDRESSES.

The Certificate Registrar shall furnish or cause to be furnished to the

Depositor or the Owner Trustee, within 15 days after receipt by the Certificate

Registrar of a written request therefor from the Depositor or the Owner Trustee,

a list, in such form as the Depositor or the Owner Trustee, as the case may be,

may reasonably require, of the names and addresses of the Certificateholders as

of the most recent Record Date. Each Holder, by receiving and holding a

Certificate, shall be deemed to have agreed not to hold any of the Trust, the

Depositor, the Holder of the Designated Certificate, the Certificate Registrar

or the Owner Trustee accountable by reason of the disclosure of its name and

address, regardless of the source from which such information was derived.

         Section 3.09 MAINTENANCE OF OFFICE OR AGENCY. The Owner Trustee on

behalf of the Trust, shall maintain in the Borough of Manhattan, The City of New

York, an office or offices or agency or agencies where Certificates may be

surrendered for registration of transfer or exchange and where notices and

demands to or upon the Owner Trustee in respect of the Certificates and the

Basic Documents may be served. The Owner Trustee initially designates the

Corporate Trust Office of the Owner Trustee as its office for such purposes. The

Owner Trustee shall give prompt written notice to the Depositor, the Holder of

the Designated Certificate and the Certificateholders of any change in the

location of the Certificate Register or any such office or agency.

         Section 3.10 CERTIFICATE PAYING AGENT. (a) The Certificate Paying Agent

shall make distributions to Certificateholders from the Certificate Distribution

Account on behalf of the Trust in accordance with the provisions of the

Certificates and Section 5.01 hereof from payments remitted to the Certificate

Paying Agent by the Indenture Trustee pursuant to Section 3.05 of the Indenture.

The Trust hereby appoints __________________ as Certificate Paying Agent and

_________________ hereby accepts such appointment and further agrees that it

will be bound by the provisions of this Trust Agreement relating to the

Certificate Paying Agent and shall:

                  (i) hold all sums held by it for the payment of amounts due

         with respect to the Certificates in trust for the benefit of the

         Persons entitled thereto until such sums shall be paid to such Persons

         or otherwise disposed of as herein provided;

                  (ii) give the Owner Trustee notice of any default by the Trust

         of which it has actual knowledge in the making of any payment required

         to be made with respect to the Certificates;

                  (iii) at any time during the continuance of any such default,

         upon the written request of the Owner Trustee forthwith pay to the

         Owner Trustee on behalf of the Trust all sums so held in Trust by such

         Certificate Paying Agent;

                  (iv) immediately resign as Certificate Paying Agent and

         forthwith pay to the Owner Trustee on behalf of the Trust all sums held

         by it in trust for the payment of Certificates if at any time it ceases

         to meet the standards required to be met by the Certificate Paying

         Agent at the time of its appointment;

                  (v) comply with all requirements of the Code with respect to

         the withholding from any payments made by it on any Certificates of any

         applicable withholding taxes imposed thereon and with respect to any

         applicable reporting requirements in connection therewith; and

                  (vi) deliver to the Owner Trustee a copy of the report to

         Certificateholders prepared with respect to each Payment Date by the

         Servicer pursuant to Section 4.01 of the Servicing Agreement.

         (b) On the second LIBOR Business Day immediately preceding (i) the

Closing Date in the case of the first Interest Period and (ii) the first day of

each succeeding Interest Period, the Certificate Paying Agent shall determine

LIBOR and the Certificate Rate for such Interest Period and shall inform the

Servicer and the Depositor at their respective facsimile numbers given to the

Certificate Paying Agent in writing thereof.

         (c) The Trust may revoke such power and remove the Certificate Paying

Agent if the Administrator determines in its sole discretion that the

Certificate Paying Agent shall have failed to perform its obligations under this

Trust Agreement in any material respect. __________________ shall be permitted

to resign as Certificate Paying Agent upon 30 days written notice to the Owner

Trustee; provided ________________ is also resigning as Paying Agent under the

Indenture at such time. In the event that ___________________ shall no longer be

the Certificate Paying Agent under this Trust Agreement and Paying Agent under

the Indenture, the Administrator shall appoint a successor to act as Certificate

Paying Agent (which shall be a bank or trust company) and which shall also be

the successor Paying Agent under the Indenture. The Administrator shall cause

such successor Certificate Paying Agent or any additional Certificate Paying

Agent appointed by the Administrator to execute and deliver to the Owner Trustee

an instrument to the effect set forth in this Section 3.10 as it relates to the

Certificate Paying Agent. The Certificate Paying Agent shall return all

unclaimed funds to the Trust and upon removal of a Certificate Paying Agent such

Certificate Paying Agent shall also return all funds in its possession to the

Trust. The provisions of Sections 6.01, 6.03, 6.04 and 7.01 shall apply to the

Certificate Paying Agent to the extent applicable. Any reference in this

Agreement to the Certificate Paying Agent shall include any co-paying agent

unless the context requires otherwise.

         (d) The Certificate Paying Agent shall establish and maintain with

itself a trust account (the "Certificate Distribution Account") in which the

Certificate Paying Agent shall, deposit, on the same day as it is received from

the Indenture Trustee, each remittance received by the Certificate Paying Agent

with respect to payments made pursuant to the Indenture. The Certificate Paying

Agent shall make all distributions of principal of and interest on the

Certificates, from moneys on deposit in the Certificate Distribution Account.

         Section 3.11 [OWNERSHIP. The Certificates shall, for income and

franchise tax purposes, be treated as the equity interest of the Trust. The

Certificates shall not be transferred unless (a) the transferee shall be an

Affiliate of the Seller, unless the prior written consent of the Credit Enhancer

is obtained, which will not be unreasonably withheld, (b) the applicable

provisions of Section 3.05 are satisfied, (c) the Certificate Registrar receives

an Opinion of Counsel to the effect that the transfer of the Certificates shall

not cause the Trust to be subject to an entity level tax and (d) the Rating

Agencies shall consent to such transfer.]

  

  

  

                                   ARTICLE IV

                      AUTHORITY AND DUTIES OF OWNER TRUSTEE

         Section 4.01 GENERAL AUTHORITY. The Owner Trustee is authorized and

directed to execute and deliver the Basic Documents to which the Trust is to be

a party and each certificate or other document attached as an exhibit to or

contemplated by the Basic Documents to which the Trust is to be a party and any

amendment or other agreement or instrument described herein, in each case, in

such form as the Administrator shall approve, as evidenced conclusively by the

Owner Trustee's execution thereof. In addition to the foregoing, the Owner

Trustee is authorized, but shall not be obligated, to take all actions required

of the Trust pursuant to the Basic Documents. The Owner Trustee is further

authorized from time to time to take such action as the Administrator directs

with respect to the Basic Documents.

         Section 4.02 GENERAL DUTIES. It shall be the duty of the Owner Trustee

to discharge (or cause to be discharged) all of its responsibilities pursuant to

the terms of this Trust Agreement and the Basic Documents to which the Trust is

a party and to administer the Trust in the interest of the Certificateholders,

subject to the Basic Documents and in accordance with the provisions of this

Trust Agreement. Notwithstanding the foregoing, the Owner Trustee shall be

deemed to have discharged its duties and responsibilities hereunder and under

the Basic Documents to the extent the Administrator has agreed in the

Administration Agreement to perform such acts or to discharge such duties of the

Owner Trustee or the Trust hereunder or under any Basic Document, and the Owner

Trustee shall not be held liable for the default or failure of the Administrator

to carry out its obligations under the Administration Agreement.

         Section 4.03 ACTION UPON INSTRUCTION. (a) Subject to Article IV and in

accordance with the terms of the Basic Documents, the Certificateholders may by

written instruction direct the Owner Trustee in the management of the Trust.

Such direction may be exercised at any time by written instruction of the

Certificateholders pursuant to Article IV.

         (b) Notwithstanding the foregoing, the Owner Trustee shall not be

required to take any action hereunder or under any Basic Document if the Owner

Trustee shall have reasonably determined, or shall have been advised by counsel,

that such action is likely to result in liability on the part of the Owner

Trustee or is contrary to the terms hereof or of any Basic Document or is

otherwise contrary to law.

         (c) Whenever the Owner Trustee is unable to decide between alternative

courses of action permitted or required by the terms of this Trust Agreement or

under any Basic Document, or in the event that the Owner Trustee is unsure as to

the application of any provision of this Trust Agreement or any Basic Document

or any such provision is ambiguous as to its application, or is, or appears to

be, in conflict with any other applicable provision, or in the event that this

Trust Agreement permits any determination by the Owner Trustee or is silent or

is incomplete as to the course of action that the Owner Trustee is required to

take with respect to a particular set of facts, the Owner Trustee shall promptly

give notice (in such form as shall be appropriate under the circumstances) to

the Certificateholders (with a copy to the Credit Enhancer) requesting

instruction as to the course of action to be adopted, and to the extent the

Owner Trustee acts in good faith in accordance with any written instruction of

the Certificateholders received, the Owner Trustee shall not be liable on

account of such action to any Person. If the Owner Trustee shall not have

received appropriate instruction within 10 days of such notice (or within such

shorter period of time as reasonably may be specified in such notice or may be

necessary under the circumstances) it may, but shall be under no duty to, take

or refrain from taking such action not inconsistent with this Trust Agreement or

the Basic Documents, as it shall deem to be in the best interests of the

Certificateholders, and the Owner Trustee shall have no liability to any Person

for such action or inaction.

         Section 4.04 NO DUTIES EXCEPT AS SPECIFIED UNDER SPECIFIED DOCUMENTS OR

IN INSTRUCTIONS. The Owner Trustee shall not have any duty or obligation to

manage, make any payment with respect to, register, record, sell, dispose of, or

otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from

taking any action under, or in connection with, any document contemplated hereby

to which the Owner Trustee is a party, except as expressly provided (i) in

accordance with the powers granted to and the authority conferred upon the Owner

Trustee pursuant to this Trust Agreement, (ii) in accordance with the Basic

Documents and (iii) in accordance with any document or instruction delivered to

the Owner Trustee pursuant to Section 4.03; and no implied duties or obligations

shall be read into this Trust Agreement or any Basic Document against the Owner

Trustee. The Owner Trustee shall have no responsibility for filing any financing

or continuation statement in any public office at any time or to otherwise

perfect or maintain the perfection of any security interest or lien granted to

it hereunder or to prepare or file any Securities and Exchange Commission filing

for the Trust or to record this Trust Agreement or any Basic Document. The Owner

Trustee nevertheless agrees that it will, at its own cost and expense, promptly

take all action as may be necessary to discharge any liens on any part of the

Owner Trust Estate that result from actions by, or claims against, the Owner

Trustee that are not related to the ownership or the administration of the Owner

Trust Estate.

The Owner Trustee hereby agrees that, except as otherwise expressly permitted herein, it shall not communicate with (including verbally) or provide information to a Rating Agency without the prior consent of and consultation with the Depositor, and that any permitted communication by it to a Rating Agency will be made by it only in the manner prescribed by the procedures established by the Depositor to ensure compliance with Rule 17g-5 under the Exchange Act, including to the extent set forth herein and in the Servicing Agreement, providing any such communications to the Depositor for posting on the Rule 17g-5 Website pursuant to this Agreement and the Servicing Agreement prior to communicating with such Rating Agency.

         Section 4.05 RESTRICTIONS. (a) The Owner Trustee shall not take any

action (x) that is inconsistent with the purposes of the Trust set forth in

Section 2.03 or (y) that, to the actual knowledge of the Owner Trustee, would

result in the Trust becoming taxable as a corporation for federal income tax

purposes. The Certificateholders shall not direct the Owner Trustee to take

action that would violate the provisions of this Section 4.06.

         (b) The Owner Trustee shall not convey or transfer any of the Trust's

properties or assets, including those included in the Trust Estate, to any

person unless (a) it shall have received an Opinion of Counsel to the effect

that such transaction will not have any material adverse tax consequence to the

Trust or any Certificateholder and (b) such conveyance or transfer shall not

violate the provisions of Section 3.16(b) of the Indenture.

         Section 4.06 PRIOR NOTICE TO CERTIFICATEHOLDERS WITH RESPECT TO CERTAIN

MATTERS. With respect to the following matters, the Owner Trustee shall not take

action unless at least 30 days before the taking of such action, the Owner

Trustee shall have notified the Certificateholders in writing of the proposed

action and the Certificateholders shall not have notified the Owner Trustee in

writing prior to the 30th day after such notice is given that such

Certificateholders have withheld consent or provided alternative direction:

         (a) the initiation of any claim or lawsuit by the Trust (except claims

or lawsuits brought in connection with the collection of cash distributions due

and owing under the Mortgage Collateral) and the compromise of any action, claim

or lawsuit brought by or against the Trust (except with respect to the

aforementioned claims or lawsuits for collection of cash distributions due and

owing under the Mortgage Collateral);

         (b) the election by the Trust to file an amendment to the Certificate

of Trust (unless such amendment is required to be filed under the Statutory

Trust Statute);

         (c) the amendment of the Indenture by a supplemental indenture in

circumstances where the consent of any Bondholder is required;

         (d) the amendment of the Indenture by a supplemental indenture in

circumstances where the consent of any Bondholder is not required and such

amendment materially adversely affects the interest of the Certificateholders;

         (e) the amendment, change or modification of the Administration

Agreement, except to cure any ambiguity or to amend or supplement any provision

in a manner or add any provision that would not materially adversely affect the

interests of the Certificateholders; or

         (f) the appointment pursuant to the Indenture of a successor Bond

Registrar, Paying Agent or Indenture Trustee or pursuant to this Trust Agreement

of a successor Certificate Registrar or Certificate Paying Agent or the consent

to the assignment by the Bond Registrar, Paying Agent, Indenture Trustee,

Certificate Registrar or Certificate Paying Agent of its obligations under the

Indenture or this Trust Agreement, as applicable.

         Section 4.07 ACTION BY CERTIFICATEHOLDERS WITH RESPECT TO CERTAIN

MATTERS. The Owner Trustee shall not have the power, except upon the direction

of the Certificateholders, and with the consent of the Credit Enhancer, to (a)

remove the Administrator under the Administration Agreement pursuant to Section

8 thereof, (b) appoint a successor Administrator pursuant to Section 8 of the

Administration Agreement, (c) remove the Servicer under the Servicing Agreement

pursuant to Sections 7.01 and 8.05 thereof or (d) except as expressly provided

in the Basic Documents, sell the Mortgage Collateral after the termination of

the Indenture. The Owner Trustee shall take the actions referred to in the

preceding sentence only upon written instructions signed by the

Certificateholders and with the consent of the Credit Enhancer.

         Section 4.08 ACTION BY CERTIFICATEHOLDERS WITH RESPECT TO BANKRUPTCY.

The Owner Trustee shall not have the power to commence a voluntary proceeding in

bankruptcy relating to the Trust without the unanimous prior approval of all

Certificateholders and with the consent of the Credit Enhancer and the delivery

to the Owner Trustee by each such Certificateholder of a certificate certifying

that such Certificateholder reasonably believes that the Trust is insolvent.

         Section 4.09 RESTRICTIONS ON CERTIFICATEHOLDERS' POWER. The

Certificateholders shall not direct the Owner Trustee to take or to refrain from

taking any action if such action or inaction would be contrary to any obligation

of the Trust or the Owner Trustee under this Trust Agreement or any of the Basic

Documents or would be contrary to Section 2.03, nor shall the Owner Trustee be

obligated to follow any such direction, if given.

         Section 4.10 MAJORITY CONTROL. Except as expressly provided herein, any

action that may be taken by the Certificateholders under this Trust Agreement

may be taken by the Holders of Certificates evidencing not less than a majority

of the outstanding Principal Balance of the Certificates. Except as expressly

provided herein, any written notice of the Certificateholders delivered pursuant

to this Trust Agreement shall be effective if signed by holders of Certificates

evidencing not less than a majority of the outstanding Principal Balance of the

Certificates at the time of the delivery of such notice.

  

  

  

                                   ARTICLE V

                           APPLICATION OF TRUST FUNDS

         Section 5.01 DISTRIBUTIONS. (a) On each Payment Date, the Certificate

Paying Agent shall distribute to the Certificateholders all funds on deposit in

the Certificate Distribution Account and available therefor (as provided in

Section 3.05 of the Indenture), as principal and the Certificate Distribution

Amount for such Payment Date. All distributions made pursuant to this Section

shall be made on a pro rata basis to the Certificateholders based on the

Certificate Principal Balances thereof; provided however that any amount on

deposit in the Certificate Distribution Account relating to a payment to the

Certificate Paying Agent pursuant to Section 3.05(xi) of the Indenture shall be

distributed solely to the Designated Certificate.

         (b) In the event that any withholding tax is imposed on the

distributions (or allocations of income) to a Certificateholder, such tax shall

reduce the amount otherwise distributable to the Certificateholder in accordance

with this Section 5.01. The Certificate Paying Agent is hereby authorized and

directed to retain or cause to be retained from amounts otherwise distributable

to the Certificateholders sufficient funds for the payment of any tax that is

legally owed by the Trust (but such authorization shall not prevent the Owner

Trustee from contesting any such tax in appropriate proceedings, and withholding

payment of such tax, if permitted by law, pending the outcome of such

proceedings). The amount of any withholding tax imposed with respect to a

Certificateholder shall be treated as cash distributed to such Certificateholder

at the time it is withheld by the Certificate Paying Agent and remitted to the

appropriate taxing authority. If there is a possibility that withholding tax is

payable with respect to a distribution (such as a distribution to a non-U.S.

Certificateholder), the Certificate Paying Agent may in its sole discretion

withhold such amounts in accordance with this paragraph (b).

         (c) All calculations of the Certificate Distribution Amount on the

Certificates shall be made on the basis of the actual number of days in an

Interest Period and a year assumed to consist of 360 days.

         (d) Distributions to Certificateholders shall be subordinated to the

creditors of the Trust, including the Bondholders.

         Section 5.02 METHOD OF PAYMENT. Subject to Section 8.01(c),

distributions required to be made to Certificateholders on any Payment Date as

provided in Section 5.01 shall be made to each Certificateholder of record on

the preceding Record Date either by, in the case of any Certificateholder owning

Certificates having denominations aggregating at least $1,000,000, wire

transfer, in immediately available funds, to the account of such Holder at a

bank or other entity having appropriate facilities therefor, if such

Certificateholder shall have provided to the Certificate Registrar appropriate

written instructions at least five Business Days prior to such Payment Date or,

if not, by check mailed to such Certificateholder at the address of such Holder

appearing in the Certificate Register.

         Section 5.03 SIGNATURE ON RETURNS. The Owner Trustee shall sign on

behalf of the Trust the tax returns of the Trust.

         Section 5.04 STATEMENTS TO CERTIFICATEHOLDERS. On each Payment Date,

the Certificate Paying Agent shall send to each Certificateholder the statement

or statements provided to the Owner Trustee and the Certificate Paying Agent by

the Servicer pursuant to Section 4.01 of the Servicing Agreement with respect to

such Distribution Date.

         Section 5.05 TAX REPORTING; TAX ELECTIONS. The Holder of the

Certificate shall cause the Trust to file federal and state income tax returns

and information statements as a corporation for each of its taxable years.

Within 90 days after the end of each calendar year, the Holder of the Designated

Certificate shall cause the Trust to provide to each Certificateholder an

Internal Revenue Service "K-1" or any successor schedule and supplemental

information, if required by law, to enable each Certificateholder to file its

federal and state income tax returns. The Holder of the Designated Certificate

may from time to time make and revoke such tax elections with respect to the

Trust as it deems necessary or desirable in its sole discretion to carry out the

business of the Trust or the purposes of this Trust Agreement if permitted by

applicable law. Notwithstanding the foregoing, an election under Section 754 of

the Code shall not be made without the written consent of a majority in interest

of the Holders of the Certificates. The Holder of the Designated Certificate

shall serve as tax matters partner for the Trust.

  

  

  

                                   ARTICLE VI

                          CONCERNING THE OWNER TRUSTEE

         Section 6.01 ACCEPTANCE OF TRUSTS AND DUTIES. The Owner Trustee accepts

the trusts hereby created and agrees to perform its duties hereunder with

respect to such trusts but only upon the terms of this Trust Agreement. The

Owner Trustee and the Certificate Paying Agent also agree to disburse all moneys

actually received by it constituting part of the Owner Trust Estate upon the

terms of the Basic Documents and this Trust Agreement. The Owner Trustee shall

not be answerable or accountable hereunder or under any Basic Document under any

circumstances, except (i) for its own willful misconduct, negligence or bad

faith or negligent failure to act or (ii) in the case of the inaccuracy of any

representation or warranty contained in Section 6.03 expressly made by the Owner

Trustee. In particular, but not by way of limitation (and subject to the

exceptions set forth in the preceding sentence):

         (a) The Owner Trustee shall not be liable with respect to any action

taken or omitted to be taken by it in accordance with the instructions of the

Administrator or the Certificateholders;

         (b) No provision of this Trust Agreement or any Basic Document shall

require the Owner Trustee to expend or risk funds or otherwise incur any

financial liability in the performance of any of its rights, duties or powers

hereunder or under any Basic Document if the Owner Trustee shall have reasonable

grounds for believing that repayment of such funds or adequate indemnity against

such risk or liability is not reasonably assured or provided to it;

         (c) Under no circumstances shall the Owner Trustee be liable for

indebtedness evidenced by or arising under any of the Basic Documents, including

the principal of and interest on the Bonds;

         (d) The Owner Trustee shall not be responsible for or in respect of the

validity or sufficiency of this Trust Agreement or for the due execution hereof

by the Depositor or the Holder of the Designated Certificate or for the form,

character, genuineness, sufficiency, value or validity of any of the Owner Trust

Estate, or for or in respect of the validity or sufficiency of the Basic

Documents, the Bonds, the Certificates, other than the certificate of

authentication on the Certificates, if executed by the Owner Trustee and the

Owner Trustee shall in no event assume or incur any liability, duty, or

obligation to any Bondholder or to any Certificateholder, other than as

expressly provided for herein or expressly agreed to in the Basic Documents;

         (e) The execution, delivery, authentication and performance by it of

this Trust Agreement will not require the authorization, consent or approval of,

the giving of notice to, the filing or registration with, or the taking of any

other action with respect to, any governmental authority or agency;

         (f) The Owner Trustee shall not be liable for the default or misconduct

of the Administrator, the Holder of the Designated Certificate, the Depositor,

Indenture Trustee or the Servicer under any of the Basic Documents or otherwise

and the Owner Trustee shall have no obligation or liability to perform the

obligations of the Trust under this Trust Agreement or the Basic Documents that

are required to be performed by the Administrator under the Administration

Agreement, the Indenture Trustee under the Indenture or the Seller under the

Mortgage Loan Purchase Agreement; and

         (g) The Owner Trustee shall be under no obligation to exercise any of

the rights or powers vested in it or duties imposed by this Trust Agreement, or

to institute, conduct or defend any litigation under this Trust Agreement or

otherwise or in relation to this Trust Agreement or any Basic Document, at the

request, order or direction of any of the Certificateholders, unless such

Certificateholders have offered to the Owner Trustee security or indemnity

satisfactory to it against the costs, expenses and liabilities that may be

incurred by the Owner Trustee therein or thereby. The right of the Owner Trustee

to perform any discretionary act enumerated in this Trust Agreement or in any

Basic Document shall not be construed as a duty, and the Owner Trustee shall not

be answerable for other than its negligence or willful misconduct in the

performance of any such act.

         Section 6.02 FURNISHING OF DOCUMENTS. The Owner Trustee shall furnish

to the Securityholders promptly upon receipt of a written reasonable request

therefor, duplicates or copies of all reports, notices, requests, demands,

certificates, financial statements and any other instruments furnished to the

Trust under the Basic Documents.

         Section 6.03 REPRESENTATIONS AND WARRANTIES. The Owner Trustee hereby

represents and warrants to the Depositor, for the benefit of the

Certificateholders, that:

         (a) It is a banking corporation duly organized and validly existing in

good standing under the laws of the State of Delaware. It has all requisite

corporate power and authority to execute, deliver and perform its obligations

under this Trust Agreement.

         (b) It has taken all corporate action necessary to authorize the

execution and delivery by it of this Trust Agreement, and this Trust Agreement

will be executed and delivered by one of its officers who is duly authorized to

execute and deliver this Trust Agreement on its behalf.

         (c) Neither the execution nor the delivery by it of this Trust

Agreement, nor the consummation by it of the transactions contemplated hereby

nor compliance by it with any of the terms or provisions hereof will contravene

any federal or Delaware law, governmental rule or regulation governing the

banking or trust powers of the Owner Trustee or any judgment or order binding on

it, or constitute any default under its charter documents or bylaws or any

indenture, mortgage, contract, agreement or instrument to which it is a party or

by which any of its properties may be bound.

         (d) This Trust Agreement, assuming due authorization, execution and

delivery by the Owner Trustee and the Depositor, constitutes a valid, legal and

binding obligation of the Owner Trustee, enforceable against it in accordance

with the terms hereof subject to applicable bankruptcy, insolvency,

reorganization, moratorium and other laws affecting the enforcement of

creditors' rights generally and to general principles of equity, regardless of

whether such enforcement is considered in a proceeding in equity or at law;

         (e) The Owner Trustee is not in default with respect to any order or

decree of any court or any order, regulation or demand of any Federal, state,

municipal or governmental agency, which default might have consequences that

would materially and adversely affect the condition (financial or other) or

operations of the Owner Trustee or its properties or might have consequences

that would materially adversely affect its performance hereunder;

         (f) No litigation is pending or, to the best of the Owner Trustee's

knowledge, threatened against the Owner Trustee which would prohibit its

entering into this Trust Agreement or performing its obligations under this

Trust Agreement;

         Section 6.04 RELIANCE; ADVICE OF COUNSEL. (a) The Owner Trustee shall

incur no liability to anyone in acting upon any signature, instrument, notice,

resolution, request, consent, order, certificate, report, opinion, bond, or

other document or paper believed by it to be genuine and believed by it to be

signed by the proper party or parties. The Owner Trustee may accept a certified

copy of a resolution of the board of directors or other governing body of any

corporate party as conclusive evidence that such resolution has been duly

adopted by such body and that the same is in full force and effect. As to any

fact or matter the method of determination of which is not specifically

prescribed herein, the Owner Trustee may for all purposes hereof rely on a

certificate, signed by the president or any vice president or by the treasurer

or other authorized officers of the relevant party, as to such fact or matter

and such certificate shall constitute full protection to the Owner Trustee for

any action taken or omitted to be taken by it in good faith in reliance thereon.

         (b) In the exercise or administration of the trusts hereunder and in

the performance of its duties and obligations under this Trust Agreement or the

Basic Documents, the Owner Trustee (i) may act directly or through its agents,

attorneys, custodians or nominees (including persons acting under a power of

attorney) pursuant to agreements entered into with any of them, and the Owner

Trustee shall not be liable for the conduct or misconduct of such agents,

attorneys, custodians or nominees (including persons acting under a power of

attorney) if such persons have been selected by the Owner Trustee with

reasonable care, and (ii) may consult with counsel, accountants and other

skilled persons to be selected with reasonable care and employed by it. The

Owner Trustee shall not be liable for anything done, suffered or omitted in good

faith by it in accordance with the written opinion or advice of any such

counsel, accountants or other such Persons and not contrary to this Trust

Agreement or any Basic Document.

         Section 6.05 NOT ACTING IN INDIVIDUAL CAPACITY. Except as provided in

this Article VI, in accepting the trusts hereby created ______________________

acts solely as Owner Trustee hereunder and not in its individual capacity, and

all Persons having any claim against the Owner Trustee by reason of the

transactions contemplated by this Trust Agreement or any Basic Document shall

look only to the Owner Trust Estate for payment or satisfaction thereof.

         Section 6.06 OWNER TRUSTEE NOT LIABLE FOR CERTIFICATES OR RELATED

DOCUMENTS. The recitals contained herein and in the Certificates (other than the

signatures of the Owner Trustee on the Certificates) shall be taken as the

statements of the Depositor, and the Owner Trustee assumes no responsibility for

the correctness thereof. The Owner Trustee makes no representations as to the

validity or sufficiency of this Trust Agreement, of any Basic Document or of the

Certificates (other than the signatures of the Owner Trustee on the

Certificates) or the Bonds, or of any Related Documents. The Owner Trustee shall

at no time have any responsibility or liability with respect to the sufficiency

of the Owner Trust Estate or its ability to generate the payments to be

distributed to Certificateholders under this Trust Agreement or the Bondholders

under the Indenture, including, the compliance by the Depositor or the Seller

with any warranty or representation made under any Basic Document or in any

related document or the accuracy of any such warranty or representation, or any

action of the Administrator, the Certificate Paying Agent, the Certificate

Registrar or the Indenture Trustee taken in the name of the Owner Trustee.

         Section 6.07 OWNER TRUSTEE MAY OWN CERTIFICATES AND BONDS. The Owner

Trustee in its individual or any other capacity may become the owner or pledgee

of Certificates or Bonds and may deal with the Depositor, the Seller, the

Certificate Paying Agent, the Certificate Registrar, the Administrator and the

Indenture Trustee in transactions with the same rights as it would have if it

were not Owner Trustee.

  

  

  

                                  ARTICLE VII

                         COMPENSATION OF OWNER TRUSTEE

         Section 7.01 OWNER TRUSTEE'S FEES AND EXPENSES. The Owner Trustee shall

receive as compensation for its services hereunder such fees as have been

separately agreed upon before the date hereof, and the Owner Trustee shall be

reimbursed for its reasonable expenses hereunder and under the Basic Documents,

including the reasonable compensation, expenses and disbursements of such

agents, representatives, experts and counsel as the Owner Trustee may reasonably

employ in connection with the exercise and performance of its rights and its

duties hereunder and under the Basic Documents pursuant to Section 3.08 of the

Servicing Agreement.

         Section 7.02 INDEMNIFICATION. The Holder of the Designated Certificate

shall indemnify, defend and hold harmless the Owner Trustee and its successors,

assigns, agents and servants (collectively, the "Indemnified Parties") from and

against, any and all liabilities, obligations, losses, damages, taxes, claims,

actions and suits, and any and all reasonable costs, expenses and disbursements

(including reasonable legal fees and expenses) of any kind and nature whatsoever

(collectively, "Expenses") which may at any time be imposed on, incurred by, or

asserted against the Owner Trustee or any Indemnified Party in any way relating

to or arising out of this Trust Agreement, the Basic Documents, the Owner Trust

Estate, the administration of the Owner Trust Estate or the action or inaction

of the Owner Trustee hereunder, provided, that:

                  (i) the Holder of the Designated Certificate shall not be

         liable for or required to indemnify an Indemnified Party from and

         against Expenses arising or resulting from the Owner Trustee's willful

         misconduct, negligence or bad faith or as a result of any inaccuracy of

         a representation or warranty contained in Section 6.03 expressly made

         by the Owner Trustee;

                  (ii) with respect to any such claim, the Indemnified Party

         shall have given the Holder of the Designated Certificate written

         notice thereof promptly after the Indemnified Party shall have actual

         knowledge thereof;

                  (iii) while maintaining control over its own defense, the

         Holder of the Designated Certificate shall consult with the Indemnified

         Party in preparing such defense; and

                  (iv) notwithstanding anything in this Agreement to the

         contrary, the Holder of the Designated Certificate shall not be liable

         for settlement of any claim by an Indemnified Party entered into

         without the prior consent of the Holder of the Designated Certificate

         which consent shall not be unreasonably withheld.

         The indemnities contained in this Section shall survive the resignation

or termination of the Owner Trustee or the termination of this Trust Agreement.

In the event of any claim, action or proceeding for which indemnity will be

sought pursuant to this Section, the Owner Trustee's choice of legal counsel, if

other than the legal counsel retained by the Owner Trustee in connection with

the execution and delivery of this Trust Agreement, shall be subject to the

approval of the Holder of the Designated Certificate, which approval shall not

be unreasonably withheld. In addition, upon written notice to the Owner Trustee

and with the consent of the Owner Trustee which consent shall not be

unreasonably withheld, the Holder of the Designated Certificate has the right to

assume the defense of any claim, action or proceeding against the Owner Trustee.

  

  

  

                                  ARTICLE VIII

                         TERMINATION OF TRUST AGREEMENT

         Section 8.01 TERMINATION OF TRUST AGREEMENT. (a) This Trust Agreement

(other than Article VIII) and the Trust shall terminate and be of no further

force or effect upon the earliest of (i) upon the final distribution of all

moneys or other property or proceeds of the Owner Trust Estate in accordance

with the terms of the Indenture and this Trust Agreement, (ii) the Payment Date

in ____________, (iii) at the time provided in Section 8.02 or (iv) purchase by

the Servicer of all Mortgage Loans pursuant to Section 8.08 of the Servicing

Agreement. The bankruptcy, liquidation, dissolution, death or incapacity of any

Certificateholder, other than the Holder of the Designated Certificate as

described in Section 8.02, shall not (x) operate to terminate this Trust

Agreement or the Trust or (y) entitle such Certificateholder's legal

representatives or heirs to claim an accounting or to take any action or

proceeding in any court for a partition or winding up of all or any part of the

Trust or the Owner Trust Estate or (z) otherwise affect the rights, obligations

and liabilities of the parties hereto.

         (b) Except as provided in Section 8.01(a), none of the Depositor, the

Holder of the Designated Certificate or any other Certificateholder shall be

entitled to revoke or terminate the Trust.

         (c) Notice of any termination of the Trust, specifying the Payment Date

upon which Certificateholders shall surrender their Certificates to the

Certificate Paying Agent for payment of the final distribution and cancellation,

shall be given by the Certificate Paying Agent by letter to Certificateholders

and the Credit Enhancer mailed within five Business Days of receipt of notice of

such termination from the Administrator, stating (i) the Payment Date upon or

with respect to which final payment of the Certificates shall be made upon

presentation and surrender of the Certificates at the office of the Certificate

Paying Agent therein designated, (ii) the amount of any such final payment and

(iii) that the Record Date otherwise applicable to such Payment Date is not

applicable, payments being made only upon presentation and surrender of the

Certificates at the office of the Certificate Payment Agent therein specified.

The Certificate Paying Agent shall give such notice to the Owner Trustee and the

Certificate Registrar at the time such notice is given to Certificateholders.

Upon presentation and surrender of the Certificates, the Certificate Paying

Agent shall cause to be distributed to Certificateholders amounts distributable

on such Payment Date pursuant to Section 5.01.

         In the event that all of the Certificateholders shall not surrender

their Certificates for cancellation within six months after the date specified

in the above mentioned written notice, the Certificate Paying Agent shall give a

second written notice to the remaining Certificateholders to surrender their

Certificates for cancellation and receive the final distribution with respect

thereto. Subject to applicable laws with respect to escheat of funds, if within

one year following the Payment Date on which final payment of the Certificates

was to have been made pursuant to Section 3.03 of the Indenture, all the

Certificates shall not have been surrendered for cancellation, the Certificate

Paying Agent may take appropriate steps, or may appoint an agent to take

appropriate steps, to contact the remaining Certificateholders concerning

surrender of their Certificates, and the cost thereof shall be paid out of the

funds and other assets that shall remain subject to this Trust Agreement. Any

funds remaining in the Certificate Distribution Account after exhaustion of such

remedies shall be distributed by the Certificate Paying Agent to the Holder of

the Designated Certificate.

         (d) Upon the winding up of the Trust and its termination, the Owner

Trustee shall cause the Certificate of Trust to be cancelled by filing a

certificate of cancellation with the Secretary of State in accordance with the

provisions of Section 3810(c) of the Statutory Trust Statute.

         Section 8.02 DISSOLUTION UPON BANKRUPTCY OF THE HOLDER OF THE

DESIGNATED CERTIFICATE. In the event that an Insolvency Event shall occur with

respect to the Holder of the Designated Certificate, this Trust Agreement and

the Trust shall be terminated in accordance with Section 8.01, 90 days after the

date of such Insolvency Event, unless, before the end of such 90-day period, the

Owner Trustee shall have received written instructions from (a) if no Credit

Enhancer Default shall have occurred and be continuing, Holders of Certificates

(other than the Holder of the Designated Certificate) representing more than 50%

of the Principal Balance of the Certificates (not including the Principal

Balance of the Designated Certificate), to the effect that such Holders

disapprove of the termination of the Trust or (b) if a Credit Enhancer Default

shall have occurred and be continuing, (i) each of the Holders of Certificates

and (ii) each of the Holders of the Bonds, to the effect that such Holders

disapprove of the termination of the Trust. Promptly after the occurrence of any

Insolvency Event with respect to the Holder of the Designated Certificate (A)

the Holder of the Designated Certificate shall give the Indenture Trustee, the

Credit Enhancer and the Owner Trustee written notice of such Insolvency Event,

(B) the Owner Trustee shall, upon the receipt of such written notice from the

Holder of the Designated Certificate, give prompt written notice to the

Certificateholders of the occurrence of such event and (C) the Indenture Trustee

shall give prompt written notice of such event to the Bondholders; provided,

however, that any failure to give a notice required by this sentence shall not

prevent or delay, in any manner, a termination of the Trust pursuant to the

first sentence of this Section 8.02. Upon a termination pursuant to this

Section, the Owner Trustee shall direct the Indenture Trustee promptly to sell

the assets of the Trust (other than the Payment Account) in a commercially

reasonable manner and on commercially reasonable terms. The proceeds of any such

sale of the assets of the Trust shall be deposited to the Payment Account for

distribution in accordance with Section 5.04(b) of the Indenture.

                                   ARTICLE IX

             SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES

         Section 9.01 ELIGIBILITY REQUIREMENTS FOR OWNER TRUSTEE. The Owner

Trustee shall at all times be a corporation satisfying the provisions of Section

3807(a) of the Statutory Trust Statute; authorized to exercise corporate trust

powers; having a combined capital and surplus of at least $50,000,000 and

subject to supervision or examination by federal or state authorities; and

having (or having a parent that has) a rating of at least [Baa3] by [Moody's].

If such corporation shall publish reports of condition at least annually

pursuant to law or to the requirements of the aforesaid supervising or examining

authority, then for the purpose of this Section, the combined capital and

surplus of such corporation shall be deemed to be its combined capital and

surplus as set forth in its most recent report of condition so published. In

case at any time the Owner Trustee shall cease to be eligible in accordance with

the provisions of this Section 9.01, the Owner Trustee shall resign immediately

in the manner and with the effect specified in Section 9.02.

         Section 9.02 REPLACEMENT OF OWNER TRUSTEE. The Owner Trustee may at any

time resign and be discharged from the trusts hereby created by giving 30 days

prior written notice thereof to the Administrator, the Credit Enhancer and the

Depositor. Upon receiving such notice of resignation, the Administrator shall

promptly appoint a successor Owner Trustee with the consent of the Credit

Enhancer which will not be unreasonably withheld, by written instrument, in

duplicate, one copy of which instrument shall be delivered to the resigning

Owner Trustee and to the successor Owner Trustee. If no successor Owner Trustee

shall have been so appointed and have accepted appointment within 30 days after

the giving of such notice of resignation, the resigning Owner Trustee may

petition any court of competent jurisdiction for the appointment of a successor

Owner Trustee.

         If at any time the Owner Trustee shall cease to be eligible in

accordance with the provisions of Section 9.01 and shall fail to resign after

written request therefor by the Administrator, or if at any time the Owner

Trustee shall be legally unable to act, or shall be adjudged bankrupt or

insolvent, or a receiver of the Owner Trustee or of its property shall be

appointed, or any public officer shall take charge or control of the Owner

Trustee or of its property or affairs for the purpose of rehabilitation,

conservation or liquidation, then the Administrator may remove the Owner

Trustee. If the Administrator shall remove the Owner Trustee under the authority

of the immediately preceding sentence, the Administrator shall promptly appoint

a successor Owner Trustee by written instrument, in duplicate, one copy of which

instrument shall be delivered to the outgoing Owner Trustee so removed and one

copy to the successor Owner Trustee, and shall pay all fees owed to the outgoing

Owner Trustee.

         Any resignation or removal of the Owner Trustee and appointment of a

successor Owner Trustee pursuant to any of the provisions of this Section shall

not become effective until acceptance of appointment by the successor Owner

Trustee pursuant to Section 9.03 and payment of all fees and expenses owed to

the outgoing Owner Trustee. The Administrator shall provide notice of such

resignation or removal of the Owner Trustee to each of the Rating Agencies.

         Section 9.03 SUCCESSOR OWNER TRUSTEE. Any successor Owner Trustee

appointed pursuant to Section 9.02 shall execute, acknowledge and deliver to the

Administrator and to its predecessor Owner Trustee an instrument accepting such

appointment under this Trust Agreement, and thereupon the resignation or removal

of the predecessor Owner Trustee shall become effective, and such successor

Owner Trustee, without any further act, deed or conveyance, shall become fully

vested with all the rights, powers, duties and obligations of its predecessor

under this Trust Agreement, with like effect as if originally named as Owner

Trustee. The predecessor Owner Trustee shall upon payment of its fees and

expenses deliver to the successor Owner Trustee all documents and statements and

monies held by it under this Trust Agreement; and the Administrator and the

predecessor Owner Trustee shall execute and deliver such instruments and do such

other things as may reasonably be required for fully and certainly vesting and

confirming in the successor Owner Trustee all such rights, powers, duties and

obligations.

         No successor Owner Trustee shall accept appointment as provided in this

Section 9.03 unless at the time of such acceptance such successor Owner Trustee

shall be eligible pursuant to Section 9.01.

         Upon acceptance of appointment by a successor Owner Trustee pursuant to

this Section 9.03, the Administrator shall mail notice thereof to all

Certificateholders, the Indenture Trustee, the Bondholders and the Rating

Agencies. If the Administrator shall fail to mail such notice within 10 days

after acceptance of such appointment by the successor Owner Trustee, the

successor Owner Trustee shall cause such notice to be mailed at the expense of

the Administrator.

         Section 9.04 MERGER OR CONSOLIDATION OF OWNER TRUSTEE. Any Person into

which the Owner Trustee may be merged or converted or with which it may be

consolidated, or any Person resulting from any merger, conversion or

consolidation to which the Owner Trustee shall be a party, or any Person

succeeding to all or substantially all of the corporate trust business of the

Owner Trustee, shall be the successor of the Owner Trustee hereunder, without

the execution or filing of any instrument or any further act on the part of any

of the parties hereto, anything herein to the contrary notwithstanding;

provided, that such Person shall be eligible pursuant to Section 9.01 and,

provided, further, that the Owner Trustee shall mail notice of such merger or

consolidation to the Rating Agencies.

         Section 9.05 APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE.

Notwithstanding any other provisions of this Trust Agreement, at any time, for

the purpose of meeting any legal requirements of any jurisdiction in which any

part of the Owner Trust Estate may at the time be located, the Administrator and

the Owner Trustee acting jointly shall have the power and shall execute and

deliver all instruments to appoint one or more Persons approved by the

Administrator and Owner Trustee to act as co-trustee, jointly with the Owner

Trustee, or as separate trustee or trustees, of all or any part of the Owner

Trust Estate, and to vest in such Person, in such capacity, such title to the

Trust or any part thereof and, subject to the other provisions of this Section,

such powers, duties, obligations, rights and trusts as the Administrator and the

Owner Trustee may consider necessary or desirable. If the Administrator shall

not have joined in such appointment within 15 days after the receipt by it of a

request so to do, the Owner Trustee alone shall have the power to make such

appointment. No co-trustee or separate trustee under this Trust Agreement shall

be required to meet the terms of eligibility as a successor Owner Trustee

pursuant to Section 9.01 and no notice of the appointment of any co-trustee or

separate trustee shall be required pursuant to Section 9.03.

         Each separate trustee and co-trustee shall, to the extent permitted by

law, be appointed and act subject to the following provisions and conditions:

         (a) All rights, powers, duties and obligations conferred or imposed

upon the Owner Trustee shall be conferred upon and exercised or performed by the

Owner Trustee and such separate trustee or co-trustee jointly (it being

understood that such separate trustee or co-trustee is not authorized to act

separately without the Owner Trustee joining in such act), except to the extent

that under any law of any jurisdiction in which any particular act or acts are

to be performed, the Owner Trustee shall be incompetent or unqualified to

perform such act or acts, in which event such rights, powers, duties and

obligations (including the holding of title to the Owner Trust Estate or any

portion thereof in any such jurisdiction) shall be exercised and performed

singly by such separate trustee or co-trustee, but solely at the direction of

the Owner Trustee;

         (b) No trustee under this Trust Agreement shall be personally liable by

reason of any act or omission of any other trustee under this Trust Agreement;

and

         (c) The Administrator and the Owner Trustee acting jointly may at any

time accept the resignation of or remove any separate trustee or co-trustee.

         Any notice, request or other writing given to the Owner Trustee shall

be deemed to have been given to each of the then separate trustees and

co-trustees, as effectively as if given to each of them. Every instrument

appointing any separate trustee or co-trustee shall refer to this Trust

Agreement and the conditions of this Article. Each separate trustee and

co-trustee, upon its acceptance of the trusts conferred, shall be vested with

the estates or property specified in its instrument of appointment, either

jointly with the Owner Trustee or separately, as may be provided therein,

subject to all the provisions of this Trust Agreement, specifically including

every provision of this Trust Agreement relating to the conduct of, affecting

the liability of, or affording protection to, the Owner Trustee. Each such

instrument shall be filed with the Owner Trustee and a copy thereof given to the

Administrator.

         Any separate trustee or co-trustee may at any time appoint the Owner

Trustee as its agent or attorney-in-fact with full power and authority, to the

extent not prohibited by law, to do any lawful act under or in respect of this

Trust Agreement on its behalf and in its name. If any separate trustee or

co-trustee shall die, become incapable of acting, resign or be removed, all of

its estates, properties, rights, remedies and trusts shall vest in and be

exercised by the Owner Trustee, to the extent permitted by law, without the

appointment of a new or successor co-trustee or separate trustee.

  

  

  

                                   ARTICLE X

                                  MISCELLANEOUS

         Section 10.01 AMENDMENTS. (a) This Trust Agreement may be amended from

time to time by the parties hereto as specified in this Section [, provided that

any amendment, except as provided in subparagraph (e) below, be accompanied by

an Opinion of Counsel to the Owner Trustee to the effect that such amendment (i)

complies with the provisions of this Section and (ii) will not cause the Trust

to be subject to an entity level tax].

         (b) If the purpose of the amendment (as detailed therein) is to correct

any mistake, eliminate any inconsistency, cure any ambiguity or deal with any

matter not covered (i.e. to give effect to the intent of the parties and, if

applicable, to the expectations of the Holders), it shall not be necessary to

obtain the consent of any Holders, but the Owner Trustee shall be furnished with

(A) a letter from the Rating Agencies that the amendment will not result in the

downgrading or withdrawal of the rating then assigned to any Security and (B) an

Opinion of Counsel to the effect that such action will not adversely affect in

any material respect the interests of any Holders, and the consent of the Credit

Enhancer shall be obtained.

         (c) If the purpose of the amendment is to prevent the imposition of any

federal or state taxes at any time that any Security is outstanding (i.e.

technical in nature), it shall not be necessary to obtain the consent of any

Holder, but the Owner Trustee shall be furnished with an Opinion of Counsel that

such amendment is necessary or helpful to prevent the imposition of such taxes

and is not materially adverse to any Holder and the consent of the Credit

Enhancer shall be obtained.

         (d) If the purpose of the amendment is to add or eliminate or change

any provision of the Trust Agreement other than as contemplated in (b) and (c)

above, the amendment shall require (A) an Opinion of Counsel to the effect that

such action will not adversely affect in any material respect the interests of

any Holders and (B) either (a) a letter from the Rating Agency that the

amendment will not result in the downgrading or withdrawal of the rating then

assigned to any security or (b) the consent of Holders of Certificates

evidencing a majority of the Principal Balance of the Certificates and the

Indenture Trustee; provided, however, that no such amendment shall (i) reduce in

any manner the amount of, or delay the timing of, payments received that are

required to be distributed on any Certificate without the consent of the related

Certificateholder and the Credit Enhancer, or (ii) reduce the aforesaid

percentage of Certificates the Holders of which are required to consent to any

such amendment, without the consent of the Holders of all such Certificates then

outstanding.

         (e) If the purpose of the amendment is to provide for the holding of

any of the Certificates in book-entry form, it shall require the consent of

Holders of all such Certificates then outstanding; provided, that the Opinion of

Counsel specified in subparagraph (a) above shall not be required.

         (f) If the purpose of the amendment is to provide for the issuance of

additional certificates representing an interest in the Trust, it shall not be

necessary to obtain the consent of any Holder, but the Owner Trustee shall be

furnished with (A) an Opinion of Counsel to the effect that such action will not

adversely affect in any material respect the interests of any Holders and (B) a

letter from the Rating Agencies that the amendment will not result in the

downgrading or withdrawal of the rating then assigned to any Security and the

consent of the Credit Enhancer shall be obtained.

         (g) Promptly after the execution of any such amendment or consent, the

Owner Trustee shall furnish written notification of the substance of such

amendment or consent to each Certificateholder, the Indenture Trustee, the

Credit Enhancer and each of the Rating Agencies. It shall not be necessary for

the consent of Certificateholders or the Indenture Trustee pursuant to this

Section 10.01 to approve the particular form of any proposed amendment or

consent, but it shall be sufficient if such consent shall approve the substance

thereof. The manner of obtaining such consents (and any other consents of

Certificateholders provided for in this Trust Agreement or in any other Basic

Document) and of evidencing the authorization of the execution thereof by

Certificateholders shall be subject to such reasonable requirements as the Owner

Trustee may prescribe.

         (h) In connection with the execution of any amendment to any agreement

to which the Trust is a party, other than this Trust Agreement, the Owner

Trustee shall be entitled to receive and conclusively rely upon an Opinion of

Counsel to the effect that such amendment is authorized or permitted by the

documents subject to such amendment and that all conditions precedent in the

Basic Documents for the execution and delivery thereof by the Trust or the Owner

Trustee, as the case may be, have been satisfied.

         Promptly after the execution of any amendment to the Certificate of

Trust, the Owner Trustee shall cause the filing of such amendment with the

Secretary of State of the State of Delaware.

         Section 10.02 NO LEGAL TITLE TO OWNER TRUST ESTATE. The

Certificateholders shall not have legal title to any part of the Owner Trust

Estate. The Certificateholders shall be entitled to receive distributions with

respect to their undivided beneficial interest therein only in accordance with

Articles V and IX. No transfer, by operation of law or otherwise, of any right,

title or interest of the Certificateholders to and in their ownership interest

in the Owner Trust Estate shall operate to terminate this Trust Agreement or the

trusts hereunder or entitle any transferee to an accounting or to the transfer

to it of legal title to any part of the Owner Trust Estate.

         Section 10.03 LIMITATIONS ON RIGHTS OF OTHERS. Except for Section 2.07,

the provisions of this Trust Agreement are solely for the benefit of the Owner

Trustee, the Depositor, the Holder of the Designated Certificate, the

Certificateholders, the Administrator, the Credit Enhancer and, to the extent

expressly provided herein, the Indenture Trustee and the Bondholders, and

nothing in this Trust Agreement (other than Section 2.07), whether express or

implied, shall be construed to give to any other Person any legal or equitable

right, remedy or claim in the Owner Trust Estate or under or in respect of this

Trust Agreement or any covenants, conditions or provisions contained herein.

         Section 10.04 NOTICES. (a) Unless otherwise expressly specified or

permitted by the terms hereof, all notices shall be in writing and shall be

deemed given upon receipt , if to the Owner Trustee, addressed to the Corporate

Trust Office; if to the Depositor, addressed to Opteum Mortgage Acceptance

Corporation, ______________________________; Attention: _________________; if to the

Credit Enhancer, addressed to ___________, Attention: _________________, if to

the Rating Agencies, addressed to ________________________ Attention:

__________or, as to each party, at such other address as shall be designated by

such party in a written notice to each other party.

         (b) Any notice required or permitted to be given to a Certificateholder

shall be given by first-class mail, postage prepaid, at the address of such

Holder as shown in the Certificate Register. Any notice so mailed within the

time prescribed in this Trust Agreement shall be conclusively presumed to have

been duly given, whether or not the Certificateholder receives such notice.

         (c) A copy of any notice delivered to the Owner Trustee or the Trust

shall also be delivered to the Depositor and the Administrator.

         Section 10.05 SEVERABILITY. Any provision of this Trust Agreement that

is prohibited or unenforceable in any jurisdiction shall, as to such

jurisdiction, be ineffective to the extent of such prohibition or

unenforceability without invalidating the remaining provisions hereof, and any

such prohibition or unenforceability in any jurisdiction shall not invalidate or

render unenforceable such provision in any other jurisdiction.

         Section 10.06 SEPARATE COUNTERPARTS. This Trust Agreement may be

executed by the parties hereto in separate counterparts, each of which when so

executed and delivered shall be an original, but all such counterparts shall

together constitute but one and the same instrument.

         Section 10.07 SUCCESSORS AND ASSIGNS. All representations, warranties,

covenants and agreements contained herein shall be binding upon, and inure to

the benefit of, each of the Depositor, the Owner Trustee and its successors and

each Certificateholder and its successors and permitted assigns, all as herein

provided and the Credit Enhancer. Any request, notice, direction, consent,

waiver or other instrument or action by a Certificateholder shall bind the

successors and assigns of such Certificateholder.

         Section 10.08 [NO PETITION. The Owner Trustee, by entering into this

Trust Agreement and each Certificateholder, by accepting a Certificate, hereby

covenant and agree that they will not at any time institute against the

Depositor or the Trust, or join in any institution against the Depositor or the

Trust of, any bankruptcy proceedings under any United States federal or state

bankruptcy or similar law in connection with any obligations to the

Certificates, the Bonds, this Trust Agreement or any of the Basic Documents.]

         Section 10.09 NO RECOURSE. Each Certificateholder by accepting a

Certificate acknowledges that such Certificateholder's Certificates represent

beneficial interests in the Trust only and do not represent interests in or

obligations of the Depositor, the Holder of the Designated Certificate, the

Seller, the Administrator, the Owner Trustee, the Indenture Trustee or any

Affiliate thereof and no recourse may be had against such parties or their

assets, except as may be expressly set forth or contemplated in this Trust

Agreement, the Certificates or the Basic Documents.

         Section 10.10 HEADINGS. The headings of the various Articles and

Sections herein are for convenience of reference only and shall not define or

limit any of the terms or provisions hereof.

         Section 10.11 GOVERNING LAW. THIS TRUST AGREEMENT SHALL BE CONSTRUED IN

ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS

CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE

PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         Section 10.12 INTEGRATION. This Trust Agreement constitutes the entire

agreement among the parties hereto pertaining to the subject matter hereof and

supersedes all prior agreements and understanding pertaining thereto.

  

  

  

         IN WITNESS WHEREOF, the Depositor and the Owner Trustee have caused

their names to be signed hereto by their respective officers thereunto duly

authorized, all as of the day and year first above written.

                                OPTEUM MORTGAGE ACCEPTANCE CORPORATION

                                By:

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

                                Name:

                                Title:

                                ______________________, not in its individual

                                capacity but solely as Owner Trustee,

                                By:

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

                                Name:

                                Title:

Acknowledged and Agreed:

         __________, as Certificate Registrar

         and Certificate Paying Agent

By:

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

Name:

Title:

  

  

  

                                    EXHIBIT A

                              [Form of Certificate]

                                     [Face]

         THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE

SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY

NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND

LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM

REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN

ACCORDANCE WITH THE PROVISIONS OF SECTION 3.05 OF THE TRUST AGREEMENT REFERRED

TO HEREIN.

         NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE

REGISTRAR SHALL HAVE RECEIVED EITHER (I) A REPRESENTATION LETTER FROM THE

TRANSFEREE OF THIS CERTIFICATE TO THE EFFECT THAT SUCH TRANSFEREE IS NOT AN

EMPLOYEE BENEFIT PLAN SUBJECT TO THE FIDUCIARY RESPONSIBILITY PROVISIONS OF 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"), OR A

PERSON ACTING ON BEHALF OF ANY SUCH PLAN OR USING THE ASSETS OF ANY SUCH PLAN,

OR (II) IF THIS CERTIFICATE IS PRESENTED FOR REGISTRATION IN THE NAME OF A PLAN

SUBJECT TO THE FIDUCIARY RESPONSIBILITY PROVISIONS OF ERISA, OR SECTION 4975 OF

THE CODE (OR COMPARABLE PROVISIONS OF ANY SUBSEQUENT ENACTMENTS), OR A TRUSTEE

OF ANY SUCH PLAN, OR ANY OTHER PERSON WHO IS USING THE ASSETS OF ANY SUCH PLAN

TO EFFECT SUCH ACQUISITION, AN OPINION OF COUNSEL TO THE EFFECT THAT THE

PURCHASE OR HOLDING OF THIS CERTIFICATE WILL NOT RESULT IN THE ASSETS OF THE

OWNER TRUST ESTATE BEING DEEMED TO BE "PLAN ASSETS" AND SUBJECT TO THE FIDUCIARY

RESPONSIBILITY PROVISIONS OF ERISA OR THE PROHIBITED TRANSACTION PROVISIONS OF

THE CODE, WILL NOT CONSTITUTE OR RESULT IN A PROHIBITED TRANSACTION WITHIN THE

MEANING OF SECTION 406 OR SECTION 407 OF ERISA OR SECTION 4975 OF THE CODE, AND

WILL NOT SUBJECT THE OWNER TRUSTEE OR THE DEPOSITOR TO ANY OBLIGATION OR

LIABILITY.

         NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE CERTIFICATE

REGISTRAR SHALL HAVE RECEIVED A CERTIFICATE OF NON-FOREIGN STATUS CERTIFYING AS

TO THE TRANSFEREE'S STATUS AS A U.S. PERSON OR CORPORATION UNDER U.S. LAW.

         THIS CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR OBLIGATION OF THE

SELLER, THE DEPOSITOR, THE SERVICER, THE INDENTURE TRUSTEE, OR THE OWNER TRUSTEE

OR ANY OF THEIR RESPECTIVE AFFILIATES, EXCEPT AS EXPRESSLY PROVIDED IN THE TRUST

AGREEMENT OR THE BASIC DOCUMENTS.

 

 

Certificate No.                              Original principal amount ("Denomination")

                --

                                             of this Certificate:  $______________

Aggregate Denominations of all Certificates: $

Pass-Through Rate:  Floating

Cut-Off Date:

First Payment Date:  ____________, _____

CUSIP NO. __________

            Opteum Mortgage Acceptance Corporation MBN Trust Series 20__-_

         Evidencing a fractional undivided equity interest in the Owner Trust

Estate, the property of which consists primarily of the Mortgage Collateral in

_________________________, a corporation sold by Opteum Mortgage Acceptance

Corporation, as depositor.

         This certifies that [name of Holder] is the registered owner of the

Percentage Interest represented hereby in the Opteum Mortgage Acceptance Corporation

MBN Trust Series 20__-_ (the "Trust").

         The Trust was created pursuant to an Trust Agreement dated as of (as

amended and supplemented from time to time, the "Trust Agreement") between the

Depositor and ______________________, as owner trustee (as amended and

supplemented from time to time, the "Owner Trustee", which term includes any

successor entity under the Trust Agreement), a summary of certain of the

pertinent provisions of which is set forth hereinafter. This Certificate is

issued under and is subject to the terms, provisions and conditions of the Trust

Agreement, to which Trust Agreement the Holder of this Certificate by virtue of

the acceptance hereof assents and by which such Holder is bound.

         This Certificate is one of a duly authorized issue of Mortgage-Backed

Certificates, Series 20__-__ (herein called the "Certificates") issued under the

Trust Agreement to which reference is hereby made for a statement of the

respective rights thereunder of the Depositor, the Owner Trustee and the Holders

of the Certificates and the terms upon which the Certificates are executed and

delivered. All terms used in this Certificate which are defined in the Trust

Agreement shall have the meanings assigned to them in the Trust Agreement. The

Owner Trust Estate consists of the Mortgage Collateral in the Opteum Mortgage

Acceptance Corporation MBN Trust Series 20__-____ and a Surety Bond. The rights of the

Holders of the Certificates are subordinated to the rights of the Holders of the

Bonds, as set forth in the [Indenture].

         There will be distributed on the [twentieth] day of each month or, if

such [twentieth] day is not a Business Day, the next Business Day (each, a

"Payment Date"), commencing in _____________, to the Person in whose name this

Certificate is registered at the close of business on the last Business Day of

the month preceding the month of such Payment Date (the "Record Date"), such

Certificateholder's Percentage Interest (obtained by dividing the Denomination

of this Certificate by the aggregate Denominations of all Certificates) in the

amount to be distributed to Certificateholders on such Payment Date.

         The Certificateholder, by its acceptance of this Certificate, agrees

that it will look solely to the funds on deposit in the Payment Account that

have been released from the Lien of the Indenture for payment hereunder and that

neither the Owner Trustee in its individual capacity nor the Depositor is

personally liable to the Certificateholders for any amount payable under this

Certificate or the Trust Agreement or, except as expressly provided in the Trust

Agreement, subject to any liability under the Trust Agreement.

         The Holder of this Certificate acknowledges and agrees that its rights

to receive distributions in respect of this Certificate are subordinated to the

rights of the Bondholders as described in the Indenture, dated as of _________,

____, between the Trust and __________________________________, as Indenture

Trustee (the "Indenture").

         It is the intent of the Depositor and the Certificateholders that, for

purposes of federal income, state and local income and single business tax and

any other income taxes, the Trust will be treated as a corporation. The

Depositor and each Certificateholder, by acceptance of a Certificate, agree to

treat, and to take no action inconsistent with the treatment of, the

Certificates for such tax purposes as an equity interest in a corporation.

         Each Certificateholder, by its acceptance of a Certificate, covenants

and agrees that such Certificateholder will not at any time institute against

the Depositor, or join in any institution against the Depositor or the Trust of,

any bankruptcy, reorganization, arrangement, insolvency or liquidation

proceedings, or other proceedings under any United States federal or state

bankruptcy or similar law in connection with any obligations relating to the

Certificates, the Bonds, the Trust Agreement or any of the Basic Documents.

         Distributions on this Certificate will be made as provided in the Trust

Agreement by the Certificate Paying Agent by wire transfer or check mailed to

the Certificateholder of record in the Certificate Register without the

presentation or surrender of this Certificate or the making of any notation

hereon. Except as otherwise provided in the Trust Agreement and notwithstanding

the above, the final distribution on this Certificate will be made after due

notice by the Certificate Paying Agent of the pendency of such distribution and

only upon presentation and surrender of this Certificate at the office or agency

maintained by the Certificate Registrar for that purpose by the Trust in the

Borough of Manhattan, The City of New York.

         Reference is hereby made to the further provisions of this Certificate

set forth on the reverse hereof, which further provisions shall for all purposes

have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon shall have been

executed by an authorized officer of the Owner Trustee, or an authenticating

agent by manual signature, this Certificate shall not entitle the Holder hereof

to any benefit under the Trust Agreement or be valid for any purpose.

  

  

  

         THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE

STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE

OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN

ACCORDANCE WITH SUCH LAWS.

  

  

  

         IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not

in its individual capacity, has caused this Certificate to be duly executed.

                                        OPTEUM MORTGAGE ACCEPTANCE CORPORATION MBN

                                        TRUST SERIES 20__-_

                                        by    _____________________, not in its

                                        individual capacity but solely as Owner

                                        Trustee

Dated:

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

                                                Authorized Signatory

                          CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within mentioned Trust

Agreement.

___________________________________________,

not in its individual capacity

but solely as Owner Trustee

By:________________________________________

         Authorized Signatory

or

   ________________________________________

   as Authenticating Agent of the Trust

By:________________________________________

         Authorized Signatory

  

  

  

                            [REVERSE OF CERTIFICATE]

         The Certificates do not represent an obligation of, or an interest in,

the Depositor, the Seller, the Servicer, the Indenture Trustee, the Owner

Trustee or any Affiliates of any of them and no recourse may be had against such

parties or their assets, except as expressly set forth or contemplated herein or

in the Trust Agreement or the Basic Documents. In addition, this Certificate is

not guaranteed by any governmental agency or instrumentality and is limited in

right of payment to certain collections and recoveries with respect to the

Mortgage Collateral, all as more specifically set forth herein. A copy of the

Trust Agreement may be examined by any Certificateholder upon written request

during normal business hours at the principal office of the Depositor and at

such other places, if any, designated by the Depositor.

         The Trust Agreement permits the amendment thereof as specified below,

provided that any amendment be accompanied by the consent of the Credit Enhancer

and an Opinion of Counsel to the Owner Trustee to the effect that such amendment

complies with the provisions of the Trust Agreement and will not cause the Trust

to be subject to an entity level tax. If the purpose of the amendment is to

correct any mistake, eliminate any inconsistency, cure any ambiguity or deal

with any matter not covered, it shall not be necessary to obtain the consent of

any Holder, but the Owner Trustee shall be furnished with a letter from the

Rating Agencies that the amendment will not result in the downgrading or

withdrawal of the rating then assigned to any Security. If the purpose of the

amendment is to prevent the imposition of any federal or state taxes at any time

that any Security is outstanding, it shall not be necessary to obtain the

consent of the any Holder, but the Owner Trustee shall be furnished with an

Opinion of Counsel that such amendment is necessary or helpful to prevent the

imposition of such taxes and is not materially adverse to any Holder. If the

purpose of the amendment is to add or eliminate or change any provision of the

Trust Agreement, other than as specified in the preceding two sentences, the

amendment shall require either (a) a letter from the Rating Agencies that the

amendment will not result in the downgrading or withdrawal of the rating then

assigned to any Security or (b) the consent of Holders of the Certificates

evidencing a majority of the Percentage Interests of the Certificates and the

Indenture Trustee; PROVIDED, HOWEVER, that no such amendment shall (i) reduce in

any manner the amount of, or delay the time of, payments received that are

required to be distributed on any Certificate without the consent of the related

Certificateholder, or (ii) reduce the aforesaid percentage of Certificates the

Holders of which are required to consent to any such amendment without the

consent of the Holders of all such Certificates then outstanding.

         As provided in the Trust Agreement and subject to certain limitations

therein set forth, the transfer of this Certificate is registerable in the

Certificate Register upon surrender of this Certificate for registration of

transfer at the offices or agencies of the Certificate Registrar maintained by

the Trust in the Borough of Manhattan, The City of New York, accompanied by a

written instrument of transfer in form satisfactory to the Certificate Registrar

duly executed by the Holder hereof or such Holder's attorney duly authorized in

writing, and thereupon one or more new Certificates of authorized denominations

evidencing the same aggregate interest in the Trust will be issued to the

designated transferee. The initial Certificate Registrar appointed under the

Trust Agreement is __________________________________.

         Except as provided in the Trust Agreement, the Certificates are

issuable only in minimum denominations of $10,000 and in integral multiples of

$10,000 in excess thereof, except for one Certificate that may not be in an

integral multiple of $10,000. As provided in the Trust Agreement and subject to

certain limitations therein set forth, Certificates are exchangeable for new

Certificates of authorized denominations evidencing the same aggregate

denomination, as requested by the Holder surrendering the same. No service

charge will be made for any such registration of transfer or exchange, but the

Owner Trustee or the Certificate Registrar may require payment of a sum

sufficient to cover any tax or governmental charge payable in connection

therewith.

         The Owner Trustee, the Certificate Paying Agent, the Certificate

Registrar and any agent of the Owner Trustee, the Certificate Paying Agent, or

the Certificate Registrar may treat the Person in whose name this Certificate is

registered as the owner hereof for all purposes, and none of the Owner Trustee,

the Certificate Paying Agent, the Certificate Registrar or any such agent shall

be affected by any notice to the contrary.

         The obligations and responsibilities created by the Trust Agreement and

the Trust created thereby shall terminate (i) upon the final distribution of all

moneys or other property or proceeds of the Owner Trust Estate in accordance

with the terms of the Indenture and the Trust Agreement, (ii) the Payment Date

in ____________, or (iii) upon the bankruptcy or insolvency of the Holder of the

Designated Certificate and the satisfaction of other conditions specified in

Section 8.02 of the Trust Agreement.

  

  

  

                                   ASSIGNMENT

         FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers

unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

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

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

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

the within Certificate, and all rights thereunder, hereby irrevocably

constituting and appointing to transfer said Certificate on the books of the

Certificate Registrar, with full power of substitution in the premises.

Dated:

                                                                            */

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

                                                 Signature Guaranteed:

                                                                            */

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

*/ NOTICE: The signature to this assignment must correspond with the name as it

appears upon the face of the within Certificate in every particular, without

alteration, enlargement or any change whatever. Such signature must be

guaranteed by a member firm of the New York Stock Exchange or a commercial bank

or trust company.

  

  

  

                            DISTRIBUTION INSTRUCTIONS

         The assignee should include the following for the information of the

Certificate Paying Agent:

         Distribution shall be made by wire transfer in immediately available

funds to ___________________________________________________________ for the

account of ________________________________________, account number

______________, or, if mailed by check, to ______________.

         Applicable statements should be mailed to__________________.

                                       _________________________________________

                                       Signature of assignee or agent

                                       (for authorization of wire transfer only)

  

  

  

                                    EXHIBIT B

                             TO THE TRUST AGREEMENT

                             CERTIFICATE OF TRUST OF

            Opteum Mortgage Acceptance Corporation MBN Trust Series 20__-_

         THIS Certificate of Trust of Opteum Mortgage Acceptance Corporation MBN Trust

Series 20__-_ (the "Trust"), dated ___________, ____, is being duly executed and

filed by ______________________, a Delaware banking corporation, as trustee, to

form a statutory trust under the Delaware Statutory Trust Act (12 DEL. CODE, ss.

3801 ET SEQ.).

         1. NAME. The name of the statutory trust formed hereby is Opteum

Mortgage Acceptance Corporation MBN Trust Series 20__-_.

         2. DELAWARE TRUSTEE. The name and business address of the trustee of

the Trust in the State of Delaware is ______________________,

__________________, __________, ______________, Attention:

______________________________.

         IN WITNESS WHEREOF, the undersigned, being the sole trustee of the

Trust, has executed this Certificate of Trust as of the date first above

written.

                                     ___________________________________________

                                     not in its individual capacity but

                                     solely as owner trustee under a Trust

                                     Agreement dated as of _________, ___,

                                     By: _______________________________________

                                     Name:

                                     Title:

  

  

  

                                    EXHIBIT C

                  [FORM OF RULE 144A INVESTMENT REPRESENTATION]

             Description of Rule 144A Securities, including numbers:

                         ______________________________

                         ______________________________

                         ______________________________

                         ______________________________

         The undersigned seller, as registered holder (the "Seller"), intends to

transfer the Rule 144A Securities described above to the undersigned buyer (the

"Buyer").

         1. In connection with such transfer and in accordance with the

agreements pursuant to which the Rule 144A Securities were issued, the Seller

hereby certifies the following facts: Neither the Seller nor anyone acting on

its behalf has offered, transferred, pledged, sold or otherwise disposed of the

Rule 144A Securities, any interest in the Rule 144A Securities or any other

similar security to, or solicited any offer to buy or accept a transfer, pledge

or other disposition of the Rule 144A Securities, any interest in the Rule 144A

Securities or any other similar security from, or otherwise approached or

negotiated with respect to the Rule 144A Securities, any interest in the Rule

144A Securities or any other similar security with, any person in any manner, or

made any general solicitation by means of general advertising or in any other

manner, or taken any other action, that would constitute a distribution of the

Rule 144A Securities under the Securities Act of 1933, as amended (the "1933

Act"), or that would render the disposition of the Rule 144A Securities a

violation of Section 5 of the 1933 Act or require registration pursuant thereto,

and that the Seller has not offered the Rule 144A Securities to any person other

than the Buyer or another "qualified institutional buyer" as defined in Rule

144A under the 1933 Act.

         2. The Buyer warrants and represents to, and covenants with, the Owner

Trustee and the Depositor (as defined in the Trust Agreement (the "Agreement"),

dated as of _________, ____ between Opteum Mortgage Acceptance Corporation, as

Depositor and ______________________, as Owner Trustee pursuant to Section 3.05

of the Agreement and __________________________________ as indenture trustee, as

follows:

                  a. The Buyer understands that the Rule 144A Securities have

         not been registered under the 1933 Act or the securities laws of any

         state.

                  b. The Buyer considers itself a substantial, sophisticated

         institutional investor having such knowledge and experience in

         financial and business matters that it is capable of evaluating the

         merits and risks of investment in the Rule 144A Securities.

                  c. The Buyer has been furnished with all information regarding

         the Rule 144A Securities that it has requested from the Seller, the

         Indenture Trustee, the Owner Trustee or the Servicer.

                  d. Neither the Buyer nor anyone acting on its behalf has

         offered, transferred, pledged, sold or otherwise disposed of the Rule

         144A Securities, any interest in the Rule 144A Securities or any other

         similar security to, or solicited any offer to buy or accept a

         transfer, pledge or other disposition of the Rule 144A Securities, any

         interest in the Rule 144A Securities or any other similar security

         from, or otherwise approached or negotiated with respect to the Rule

         144A Securities, any interest in the Rule 144A Securities or any other

         similar security with, any person in any manner, or made any general

         solicitation by means of general advertising or in any other manner, or

         taken any other action, that would constitute a distribution of the

         Rule 144A Securities under the 1933 Act or that would render the

         disposition of the Rule 144A Securities a violation of Section 5 of the

         1933 Act or require registration pursuant thereto, nor will it act, nor

         has it authorized or will it authorize any person to act, in such

         manner with respect to the Rule 144A Securities.

                  e. The Buyer is a "qualified institutional buyer" as that term

         is defined in Rule 144A under the 1933 Act and has completed either of

         the forms of certification to that effect attached hereto as Annex 1 or

         Annex 2. The Buyer is aware that the sale to it is being made in

         reliance on Rule 144A. The Buyer is acquiring the Rule 144A Securities

         for its own account or the accounts of other qualified institutional

         buyers, understands that such Rule 144A Securities may be resold,

         pledged or transferred only (i) to a person reasonably believed to be a

         qualified institutional buyer that purchases for its own account or for

         the account of a qualified institutional buyer to whom notice is given

         that the resale, pledge or transfer is being made in reliance on Rule

         144A, or (ii) pursuant to another exemption from registration under the

         1933 Act.

         3. [The Buyer warrants and represents to, and covenants with, the

Seller, the Indenture Trustee, Owner Trustee, Servicer and the Depositor that

either (1) the Buyer is (A) not an employee benefit plan (within the meaning of

Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended

("ERISA")), or a plan (within the meaning of Section 4975(e)(1) of the Internal

Revenue Code of 1986 ("Code")), which (in either case) is subject to ERISA or

Section 4975 of the Code (both a "Plan"), and (B) is not directly or indirectly

purchasing the Rule 144A Securities on behalf of, as investment manager of, as

named fiduciary of, as trustee of, or with "plan assets" of a Plan, or (2) the

Buyer understands that registration of transfer of any Rule 144A Securities to

any Plan, or to any Person acting on behalf of any Plan, will not be made unless

such Plan delivers an opinion of its counsel, addressed and satisfactory to the

Certificate Registrar and the Depositor, to the effect that the purchase and

holding of the Rule 144A Securities by, on behalf of or with "plan assets" of

any Plan would not constitute or result in a prohibited transaction under

Section 406 of ERISA or Section 4975 of the Code, and would not subject the

Depositor, the Servicer, the Indenture Trustee or the Trust to any obligation or

liability (including liabilities under ERISA or Section 4975 of the Code) in

addition to those undertaken in the Agreement or any other liability.]

         4. This document may be executed in one or more counterparts and by the

different parties hereto on separate counterparts, each of which, when so

executed, shall be deemed to be an original; such counterparts, together, shall

constitute one and the same document.

         IN WITNESS WHEREOF, each of the parties has executed this document as

of the date set forth below.

Print Name of Seller                            Print Name of Buyer

By:  ___________________________________        By:  ___________________________

        Name:                                           Name:

        Title:                                          Title:

Taxpayer Identification:                        Taxpayer Identification:

No.  ___________________________________        No. ____________________________

Date: __________________________________        Date: __________________________

  

  

  

                                                            ANNEX 1 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

         The undersigned hereby certifies as follows in connection with the Rule

144A Investment Representation to which this Certification is attached:

         1. As indicated below, the undersigned is the President, Chief

Financial Officer, Senior Vice President or other executive officer of the

Buyer.

         2. In connection with purchases by the Buyer, the Buyer is a "qualified

institutional buyer" as that term is defined in Rule 144A under the Securities

Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested on a

discretionary basis $____________________(1) in securities (except for the

excluded securities referred to below) as of the end of the Buyer's most recent

fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)

the Buyer satisfies the criteria in the category marked below.

         ___      CORPORATION, ETC. The Buyer is a corporation (other than a

                  bank, savings and loan association or similar institution),

                  Massachusetts or similar business trust, partnership, or

                  charitable organization described in Section 501(c)(3) of the

                  Internal Revenue Code.

         ___      BANK. The Buyer (a) is a national bank or banking institution

                  organized under the laws of any State, territory or the

                  District of Columbia, the business of which is substantially

                  confined to banking and is supervised by the State or

                  territorial banking commission or similar official or is a

                  foreign bank or equivalent institution, and (b) has an audited

                  net worth of at least $25,000,000 as demonstrated in its

                  latest annual financial statements, a copy of which is

                  attached hereto.

         ___      SAVINGS AND LOAN. The Buyer (a) is a savings and loan

                  association, building and loan association, cooperative bank,

                  homestead association or similar institution, which is

                  supervised and examined by a State or Federal authority having

                  supervision over any such institutions or is a foreign savings

                  and loan association or equivalent institution and (b) has an

                  audited net worth of at least $25,000,000 as demonstrated in

                  its latest annual financial statements.

         ___      BROKER-DEALER. The Buyer is a dealer registered pursuant to

                  Section 15 of the Securities Exchange Act of 1934.

         ___      INSURANCE COMPANY. The Buyer is an insurance company whose

                  primary and predominant business activity is the writing of

                  insurance or the reinsuring of risks underwritten by insurance

                  companies and which is subject to supervision by the insurance

                  commissioner or a similar official or agency of a State or

                  territory or the District of Columbia.

         ___      STATE OR LOCAL PLAN. The Buyer is a plan established and

                  maintained by a State, its political subdivisions, or any

                  agency or instrumentality of the State or its political

                  subdivisions, for the benefit of its employees.

         ___      ERISA PLAN. The Buyer is an employee benefit plan within the

                  meaning of Title I of the Employee Retirement Income Security

                  Act of 1974.

         ___      INVESTMENT ADVISER. The Buyer is an investment adviser

                  registered under the Investment Advisers Act of 1940.

         ___      SBIC. The Buyer is a Small Business Investment Company

                  licensed by the U.S. Small Business Administration under

                  Section 301(c) or (d) of the Small Business Investment Act of

                  1958.

         ___      BUSINESS DEVELOPMENT COMPANY. The Buyer is a business

                  development company as defined in Section 202(a)(22) of the

                  Investment Advisers Act of 1940.

         ___      TRUST FUND. The Buyer is a trust fund whose trustee is a bank

                  or trust company and whose participants are exclusively (a)

                  plans established and maintained by a State, its political

                  subdivisions, or any agency or instrumentality of the State or

                  its political subdivisions, for the benefit of its employees,

                  or (b) employee benefit plans within the meaning of Title I of

                  the Employee Retirement Income Security Act of 1974, but is

                  not a trust fund that includes as participants individual

                  retirement accounts or H.R. 10 plans.

         3. The term "SECURITIES" as used herein DOES NOT INCLUDE (i) securities

of issuers that are affiliated with the Buyer, (ii) securities that are part of

an unsold allotment to or subscription by the Buyer, if the Buyer is a dealer,

(iii) bank deposit notes and certificates of deposit, (iv) loan participations,

(v) repurchase agreements, (vi) securities owned but subject to a repurchase

agreement and (vii) currency, interest rate and commodity swaps.

         4. For purposes of determining the aggregate amount of securities owned

and/or invested on a discretionary basis by the Buyer, the Buyer used the cost

of such securities to the Buyer and did not include any of the securities

referred to in the preceding paragraph. Further, in determining such aggregate

amount, the Buyer may have included securities owned by subsidiaries of the

Buyer, but only if such subsidiaries are consolidated with the Buyer in its

financial statements prepared in accordance with generally accepted accounting

principles and if the investments of such subsidiaries are managed under the

Buyer's direction. However, such securities were not included if the Buyer is a

majority-owned, consolidated subsidiary of another enterprise and the Buyer is

not itself a reporting company under the Securities Exchange Act of 1934.

         5. The Buyer acknowledges that it is familiar with Rule 144A and

understands that the seller to it and other parties related to the Certificates

are relying and will continue to rely on the statements made herein because one

or more sales to the Buyer may be in reliance on Rule 144A.

         ___      ___      Will the Buyer be purchasing the Rule 144A

         Yes      No       Securities only for the Buyer's own account?

         6. If the answer to the foregoing question is "no", the Buyer agrees

that, in connection with any purchase of securities sold to the Buyer for the

account of a third party (including any separate account) in reliance on Rule

144A, the Buyer will only purchase for the account of a third party that at the

time is a "qualified institutional buyer" within the meaning of Rule 144A. In

addition, the Buyer agrees that the Buyer will not purchase securities for a

third party unless the Buyer has obtained a current representation letter from

such third party or taken other appropriate steps contemplated by Rule 144A to

conclude that such third party independently meets the definition of "qualified

institutional buyer" set forth in Rule 144A.

         7. The Buyer will notify each of the parties to which this

certification is made of any changes in the information and conclusions herein.

Until such notice is given, the Buyer's purchase of Rule 144A Securities will

constitute a reaffirmation of this certification as of the date of such

purchase.

                                        ________________________________________

                                        Print Name of Buyer

                                        By:   __________________________________

                                              Name:

                                              Title:

                                        Date: __________________________________

(1) Buyer must own and/or invest on a discretionary basis at least $100,000,000

in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or

invest on a discretionary basis at least $10,000,000 in securities.

  

  

  

                                                            ANNEX 2 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers That Are Registered Investment Companies]

         The undersigned hereby certifies as follows in connection with the Rule

144A Investment Representation to which this Certification is attached:

         1. As indicated below, the undersigned is the President, Chief

Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a

"qualified institutional buyer" as that term is defined in Rule 144A under the

Securities Act of 1933 ("Rule 144A") because Buyer is part of a Family of

Investment Companies (as defined below), is such an officer of the Adviser.

         2. In connection with purchases by Buyer, the Buyer is a "qualified

institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an

investment company registered under the Investment Company Act of 1940, and (ii)

as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,

owned at least $100,000,000 in securities (other than the excluded securities

referred to below) as of the end of the Buyer's most recent fiscal year. For

purposes of determining the amount of securities owned by the Buyer or the

Buyer's Family of Investment Companies, the cost of such securities was used.

         ____     The Buyer owned $___________________ in securities (other than

                  the excluded securities referred to below) as of the end of

                  the Buyer's most recent fiscal year (such amount being

                  calculated in accordance with Rule 144A).

         ____     The Buyer is part of a Family of Investment Companies which

                  owned in the aggregate $______________ in securities (other

                  than the excluded securities referred to below) as of the end

                  of the Buyer's most recent fiscal year (such amount being

                  calculated in accordance with Rule 144A).

         3. The term "FAMILY OF INVESTMENT COMPANIES" as used herein means two

or more registered investment companies (or series thereof) that have the same

investment adviser or investment advisers that are affiliated (by virtue of

being majority owned subsidiaries of the same parent or because one investment

adviser is a majority owned subsidiary of the other).

         4. The term "SECURITIES" as used herein does not include (i) securities

of issuers that are affiliated with the Buyer or are part of the Buyer's Family

of Investment Companies, (ii) bank deposit notes and certificates of deposit,

(iii) loan participations, (iv) repurchase agreements, (v) securities owned but

subject to a repurchase agreement and (vi) currency, interest rate and commodity

swaps.

         5. The Buyer is familiar with Rule 144A and understands that each of

the parties to which this certification is made are relying and will continue to

rely on the statements made herein because one or more sales to the Buyer will

be in reliance on Rule 144A. In addition, the Buyer will only purchase for the

Buyer's own account.

         6. The undersigned will notify each of the parties to which this

certification is made of any changes in the information and conclusions herein.

Until such notice, the Buyer's purchase of Rule 144A Securities will constitute

a reaffirmation of this certification by the undersigned as of the date of such

purchase.

                                        ________________________________________

                                        Print Name of Buyer

                                        By:      _______________________________

                                                 Name:

                                                 Title:

                                        IF AN ADVISER:

                                        ________________________________________

                                        Print Name of Buyer

                                        Date:___________________________________

  

  

  

                                    EXHIBIT D

                        CERTIFICATE OF NON-FOREIGN STATUS

         This Certificate of Non-Foreign Status ("certificate") is delivered

pursuant to Section 3.03 of the Trust Agreement, dated as of _________, ____

(the "Trust Agreement"), between Opteum Mortgage Acceptance Corporation, as depositor

and ______________________, as Owner Trustee, in connection with the acquisition

of, transfer to or possession by the undersigned, whether as beneficial owner

(the "Beneficial Owner"), or nominee on behalf of the Beneficial Owner of the

Mortgage-Backed Certificates, Series 20__-__ (the "Certificate"). Capitalized

terms used but not defined in this certificate have the respective meanings

given them in the Trust Agreement.

         Each holder must complete Part I, Part II (if the holder is a nominee),

and in all cases sign and otherwise complete Part III. In addition, each holder

shall submit with the Certificate an IRS Form W-9 relating to such holder.

         To confirm to the Trust that the provisions of Sections 871, 881 or

1446 of the Internal Revenue Code (relating to withholding tax on foreign

partners) do not apply in respect of the Certificate held by the undersigned,

the undersigned hereby certifies:

Part I - Complete Either A or B

         A.       Individual as Beneficial Owner

                  1.       I am (The Beneficial Owner is ) not a non-resident

                           alien for purposes of U.S. income taxation;

                  2.       My (The Beneficial Owner's) name and home address

                           are:

                           ________________________________

                           ________________________________

                           ________________________________; and

                  3.       My (The Beneficial Owner's) U.S. taxpayer

                           identification number (Social Security Number) is

                           _______________________.

         B.       Corporate, Partnership or Other Entity as Beneficial Owner

                  1.       __________________________ (Name of the Beneficial

                           Owner) is not a foreign corporation, foreign

                           partnership, foreign trust or foreign estate (as

                           those terms are defined in the Code and Treasury

                           Regulations;

                  2.       The Beneficial Owner's office address and place of

                           incorporation (if applicable) is

                           _______________________________; and

                  3.       The Beneficial Owner's U.S. employer identification

                           number is __________________________.

Part II - Nominees

         If the undersigned is the nominee for the Beneficial Owner, the

undersigned certifies that this certificate has been made in reliance upon

information contained in:

         _____    an IRS Form W-9

         _____    a form such as this or substantially similar

         provided to the undersigned by an appropriate person and (i) the

         undersigned agrees to notify the Trust at least thirty (30) days prior

         to the date that the form relied upon becomes obsolete, and (ii) in

         connection with change in Beneficial Owners, the undersigned agrees to

         submit a new Certificate of Non-Foreign Status to the Trust promptly

         after such change.

Part III - Declaration

         The undersigned, as the Beneficial Owner or a nominee thereof, agrees

to notify the Trust within sixty (60) days of the date that the Beneficial Owner

becomes a foreign person. The undersigned understands that this certificate may

be disclosed to the Internal Revenue Service by the Trust and any false

statement contained therein could be punishable by fines, imprisonment or both.

         Under penalties of perjury, I declare that I have examined this

certificate and to the best of my knowledge and belief it is true, correct and

complete and will further declare that I will inform the Trust of any change in

the information provided above, and, if applicable, I further declare that I

have the authority* to sign this document.

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

         Name

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

  Title (if applicable)

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

    Signature and Date

         *Note: If signed pursuant to a power of attorney, the power of attorney

must accompany this certificate.

  

  

  

                                    EXHIBIT E

                    FORM OF INVESTMENT LETTER [NON-RULE 144A]

                                     [DATE]

[Certificate Registrar]

         Re:      Opteum Mortgage Acceptance Corporation MBN Trust Series 20__-_

                  Mortgage-Backed Certificates, Series 20__-__, (the

                  "Certificates")

Ladies and Gentlemen:

         In connection with our acquisition of the above-captioned Certificates,

we certify that (a) we understand that the Certificates are not being registered

under the Securities Act of 1933, as amended (the "Act"), or any state

securities laws and are being transferred to us in a transaction that is exempt

from the registration requirements of the Act and any such laws, (b) we are an

"accredited investor," as defined in Regulation D under the Act, and have such

knowledge and experience in financial and business matters that we are capable

of evaluating the merits and risks of investments in the Certificates, (c) we

have had the opportunity to ask questions of and receive answers from the

Depositor concerning the purchase of the Certificates and all matters relating

thereto or any additional information deemed necessary to our decision to

purchase the Certificates, (d) we are not an employee benefit plan that is

subject to the Employee Retirement Income Security Act of 1974, as amended, or a

plan that is subject to Section 4975 of the Internal Revenue Code of 1986, as

amended, nor are we acting on behalf of any such plan, (e) we are acquiring the

Certificates for investment for our own account and not with a view to any

distribution of such Certificates (but without prejudice to our right at all

times to sell or otherwise dispose of the Certificates in accordance with clause

(g) below), (f) we have not offered or sold any Certificates to, or solicited

offers to buy any Certificates from, any person, or otherwise approached or

negotiated with any person with respect thereto, or taken any other action which

would result in a violation of Section 5 of the Act, and (g) we will not sell,

transfer or otherwise dispose of any Certificates unless (1) such sale, transfer

or other disposition is made pursuant to an effective registration statement

under the Act or is exempt from such registration requirements, and if

requested, we will at our expense provide an opinion of counsel satisfactory to

the addressees of this certificate that such sale, transfer or other disposition

may be made pursuant to an exemption from the Act, (2) the purchaser or

transferee of such Certificate has executed and delivered to you a certificate

to substantially the same effect as this certificate, and (3) the purchaser or

transferee has otherwise complied with any conditions for transfer set forth in

the Trust Agreement.

                                       Very truly yours,

                                       [TRANSFEREE]

                                       By:

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

                                       Authorized Officer

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